CONVEYANCE OE MAILS VIA SUEZ.

17

E.—No. 3,

A STATEMENT of CREDITS allowed to the Australian Colonies in 1868, on account of the previous Year.

No. 10. Copy of a Letter from Mr. ~W. Gbay to the Hon. John Hall. General Post Office, Sib,— Wellington, 12th October, 18G8. I have the honor to report that, in compliance with your instructions, I proceeded to Melbourne on the Ist ultimo, to arrange for the transmission thence of mails between New Zealand and the United Kingdom, &c, via Suez, on the expiry of the contract for the mail service between Otago and Melbourne. On making inquiry in Melbourne and Sandridge, I found Mr. Leismann,the contractor for landing and shipping the Victorian mails in Hobson's Bay, to be the most eligible person to undertake a similar duty on behalf of this Department. Before communicating with Mr. Leismann, I deemed it my duty to wait on Captain Bance, the Acting Deputy Postmaster-General of Victoria, to ascertain whether he had any objections to the contractor for his Department entering into contract to perform a similar service for the New Zealand Post Office. On my putting the question, Captain Bance very courteously replied, that so far from objecting to such an arrangement, he would gladly render any assistance in his power to enable Mr. Leismann to carry out the service to the satisfaction of this Department; and that if the mails were not too large, he would permit their being stored, if necessary, in the Post Office at Sandridge, until opportunities occurred for their transmission to destination. He also informed me that Mr. Leismann was the best person for the service I could have selected in Sandridge ; that he was a most careful and trustworthy person; that he had been contractor for landing and shipping mails in Hobson's Bay for the last seven years, and that the Department during that period had not had occasion to find fault with the manner in which he had performed the service : he also expressed his belief that Mr. Leismann would perform any duty he might undertake for this Department satisfactorily. I tendered my thanks to Captain Bance on your behalf, and said that, if necessary, you would be glad if he would cause any assistance on the part of his Department to be rendered to the contractor in carrying out the proposed service. The following are the arrangements I made with Mr. Leismann : — 1. The contractor to take delivery in Hobson's Bay of all mails for New Zealand conve3 red by the Suez steamers (excepting those for Auckland, which are to be forwarded in the same steamers to Sydney), and tranship them into steamers laid on for New Zealand. If there be no steamer so laid on at the time the Suez mails arrive, the mails are to be landed and stored in the Sandridge Post Office, or in a fire-proof portion of the Bonded Store at the Sandridge Pier, until the sailing of the first steamer for New Zealand. 2. When it happens that the arrival of the Suez steamer dovetails into the departure of the Panama steamer from Sydney, all the mails for New Zealand will be forwarded to Sydney, and conveyed thence to Wellington by the Panama steamer. 3. The contractor to board all steamers arriving in Hobson's Bay from New Zealand, and take charge of and store, if necessary, any mails which they may bring for the United Kingdom, &c, via Suez, and to ship such mails on board the P. and 0. Co.'s steamer bound for Galle, obtaining receipts therefor, which receipts are to be forwarded to this Department every month. 4. For the due performance of this duty or service, the contractor to receive in quarterly payments at the rate of £8 10s. per month, inclusive of all expenses which may be incurred. Before concluding this report, I would venture to make the following suggestion : — Each mail for New Zealand from London via Suez consists of from 140 to 100 boxes, exclusive of those for Auckland, measuring about twelve or fourteen tons, and containing under 2,000 letters ; the intercolonial carriage of which by law is paid for by a gratuity of Id. per letter, amounting on the whole to about £8. The owners of the Intercolonial steamers complain of the inadequacy of this rate of payment, as they are compelled, in order to accommodate the mails, to take so much less cargo, and 5

'enalties Inflicted am Premiums Eaened on the performai and Sydney, from 1st January t nee of the Mail Packet Ser ;o 31st December, 1867. 'ice ictween Point de Gralle Dates to Penalties. Premiums. ]V umber. Amounts. Number. Amounts. 3lBt March, 1867 30th June, 1807 30th September, 1867 3lBt December, 1807 3 2 2 4 11 3 2 2 4 £ 600 400 400 800 4 1 2 3 £ 200 50 100 150 Excess of Penalties over Premiums ... 11 2,200 10 500 1,700 Half divisible between the Colonies ... 2,200 2,200 850