SAN FRANCISCO MAIL SERVICE.

E.—No. 4.

27

Amount received towards the postages from non-subsidizing Colonies, and passage money for Mail Agents for six months. I hand you herewith copy of my Contract with the North Pacific Transportation Company, which I forward for your approval, and shall be glad to have confirmation of the same at your earliest convenience. I intend, on the departure of the " City of Melbourne," to visit Melbourne and the other Colonies, for the purpose of stirring up mv agents and putting them in the way of prosecuting more vigorously my agency, and shall report to you on my return. I may state to you that I have been credibly informed by several influential merchants here, that the subsidy from New South Wales of £10,000 will be granted. I have no doubt you will agree with me that on the whole the line promises very favourably, and I have every reason to believe that I shall in the course of a very short time be able to report that I can dispense with asking you for any further assistance in this undertaking. I have, &o. The Hon. J. Vogel, Postmaster-General, H. H. Hall, U.S.C. Auckland.

Enclosure in No. 31. This Agreement, made this ninth day of May, a.d. one thousand eight hundred and seventy, between the' North Pacific Transportation Company, of San Francisco, and H. 11. Hall, Esquire, of Sydney, is as follows :— The North Pacific Transportation Company will connect with one of their steamers, with the steamers of the said Hall (carrying the Australian mails) at Honolulu, and agree to transport the Australian Mails between Honolulu and San Francisco for the ordinary express charges for freight; also to charge the rates of passage fixed by the said Hall between the Australian ports and San Francisco; the North Pacific Transportation Company reserving for their portion of the fare to Honolulu— Sixty dollars for First Cabin, Forty-five dollars for Second Cabin, Thirty dollars for Steerage. The North Pacific Transportation Company will endeavour to make close connection with Hall's steamers at Honolulu, and with only such detention as will enable them to make their transfers of freight and passengers. This agreement to continue until it can be ascertained what the United States Government may do for the North Pacific Transportation Company in the way of mail subsidy, during the present Congress. In the event that the North Pacific Transportation Company shall obtain a mail subsidy from the United States Government, the North Pacific Transportation Company shall have the privilege of putting their mail subsidy at a pro rata rate of its value with the mail subsidy of the said Hall, and the expenses of new ships, charters, and all disbursements to be borne by each party, and the profits or losses to be divided with each party in pro rata rate to the value of the subsidy. In case the North Pacific Transportation Company should not get any subsidy from the United States Government, the said Hall agrees to enter into a contract with the said Company to connect at Honolulu with their steamers, on the same terms as now agreed upon; and the said Company shall have the privilege, at any time within six months after the adjournment of Congress, of participating to the extent of one half in all business between Australia and Honolulu, and between Honolulu and San Francisco; the receipts of mails, freights, and passengers of the entire route to be a common concern, each party to be entitled to one half of profits, and to pay one half of losses. In witness whereof the parties hereto have hereunto set their hands and seals, the day and year first above written. Noeth Pacific Tbanspoktation Company, In the presence of — by Holliday and Beenham, Agents. Thomas Darby. H. H. Hall.

No. 32. The Hon. J. Vogel to Mr. 11. H. Hall. Sib,— General Post Office, Wellington, 29th July, 1870. I have the honor to acknowledge receipt of your letter of the 30th ultimo, enclosing copy of a letter dated the 20th of the same month ; also copy of an agreement entered into by you with Messrs. Holliday and Brenham, of San Francisco. In reply, I have to inform you that I cannot approve of that agreement, inasmuch as it contains no provision as to the description or class of steamers to he employed in the service; and that, by entering into such agreement without my previous sanction, you have clearly infringed the terms of the contract. With reference to your application for the payment of £2,000 a month, I would point out to you that such payment would result in over-payment, for you are not entitled to the sum of £7,500 at the end of six months, but on the completion of six voyages. I would further direct your attention to the fact that I may elect to claim penalties for failure to perform the service in accordance with time table in. contract. With respect to passage money for Mail Agents, you can be paid regularly on each passage being taken. As you have completed three voyages, I will pay you another £500 on account of the guarantee, being, with £500 already received, half of the total guarantee. I have, &c, H. H. Hall, Esq., Sydney. Juinrs Vogel.