E.—No. 4

13

SAN FRANCISCO MAIL SERVICE.

No. 17. The Hon. Dr. Pollen to the Hon. J. Vogel. General Government Offices, Sic, — Auckland, 9th September, 1870. With reference to my letter (No. 338) of date August 22nd nit., I have the honor to transmit a letter addressed to me on the arrival of the mail steamer " City of Melbourne," by Messrs. Cruickshank, Smart, and Co., the agents of Mr. H. EL Hall. I enclose also copy of my reply. I saw Captain Granger, and was satisfied that if the remittance expected were not made, the mails might be subjected to detention at Honolulu ; and believing that the Government would wish if possible to prevent a disturbance of the regularity of the service from such a cause, I have taken upon myself the responsibility of obtaining an advance of £500 from the Paymaster here, in order to enable the Agents to comply with the requisition of the Contractor. Out of this advance I have paid the Mail Agents' passage bill, £320 ; and, in addition, a sum of £180, by way of advance on account of subsidy. Trusting that my action in this matter will meet with your approval, I have, Ac, The Hon. the Postmaster-General, Daniel Pollen, AVellington. Agent, General Government.

Enclosure 1 in No. 17. Messrs. Ceuickshank, Smaet, and Co. to the Hon Dr. Pollen. Sic,— Auckland, N.Z., 7th September, 1870. We have the honor to enclose you an account of the passage-money payable by the Government for the conveyance of the Mail Agents between Auckland and San Francisco, and vice versa, amounting in all to £320 sterling. Mr. Hall has authorized us to receive this money, and has further directed us to make a remittance of £500 on his account by the " City of Melbourne " to Honolulu. We have reason to believe that this remittance is indispensably necessary for the carrying out of the mail service, and to prevent detention of the mail steamer at that place. Having no funds of Mr. Hall's in our hands, and being under advances for current supplies here, we are not in a position to make the necessary remittance unless we can obtain from the Government a sum of £28'J as a payment to Mr. Hall on account of his subsidy in addition to the amount of the account above mentioned. AYe have, Ac, The Hon. Dr. Pollen, Agent, General Government, Ceuickshank, Smaet, and Co. Aucldand.

Enclosure 2 in No. 17. The Hon. Dr. Pollen to Messrs. Cbuickshank, Smaet, and Co. General Government Offices, Gentlemen, — Auckland, 9th September, 1870. I have to acknowledge the receipt of your letter of this date, covering an account for passages of Mail Agents between Auckland and San Francisco amounting to £320, and requesting, in addition to the payment of that account, a sum of £280 as a payment to Mr. Hall on account of subsidy, in order that you may be enabled to remit £500 to Honolulu in compliance with Mr. Hall's directions. I have no authority to make such payments as you now require, but as your letter states that a remittance of £500 to Honolulu by the " City of Melbourne " is indispensably necessary and cannot be provided for by you, and as you have assured me personally that if the money be not sent the mail Bervice must get into disorder, I will take upon myself the responsibility of obtaining an advance from the Paymaster of £500, out of which I will pay the Mail Agents' passage bill (£320), and make a further payment of £180 on account of subsidy, thus making up the amount of the remittance required by Mr. Hall to be made by you. I have, Ac, Messrs. Cruickshank, Smart, and Co., Daniel Pollen, Agents, Australian, New Zealand, and San Francisco Agent, General Government. Mail Steamers, Auckland.

No. 18. The Hon. F. D. Bell and the Hon. I. E. Featheeston to the Hon. W. Gisboene. Sic, — London, 9th August, 1870. We do ourselves the honor to acknowledge the receipt of your letter of the 28th May, on the subject of the Atlantic and Pacific Company's proposals for a steam service. You have been kept informed, in various communications, of the proceedings in this matter since we first wrote out about it. The only thing which it is now necessary to say is, that in this matter, as in almost every other enterprise at the same stage, the outbreak of the Continental war has put a complete stop, at present, to all idea of going on with the scheme. It will require a complete recovery from the panic which has affected all securities and projects, before this one can be revived. We have, Ac, F. D. Behc, 7 ~ I. E. Featheeston,! Commissioners. The Hon. William Gisborne. 8