SAN FRANCISCO MAIL SERVICE.

E.—No. 2

39

1872, in which you inform me that you have arranged with the Government of Hawaii for the payment of a subsidy to the U.S., N.Z. and A. Line of Mail Steamers ; and that that Government have undertaken to afford various facilities at Honolulu for the working of the line. I have to thank you for the information supplied ; and to express my gratification at your having succeeded in making arrangements which appear to be satisfactory to you. I have, <fee, W. H. Webb, Esq., New York. Julius Vogel.

No. 33. Mr. Webb to the Hon. J. Vogel. Sir,— Honolulu, 15th April, 1872. For some unaccountable reason, no steamer has arrived from San Francisco to connect with the " Nebraska." After waiting such arrival six days, upon consultation with others interested, and your Mail Agent, with whose consent I act, and giving the subject mature reflection, viewing it in all its bearings, I have most reluctantly decided to proceed with the mails to San Francisco on board the " Nebraska," and will leave for that port to-morrow morning. I expect to find, on my arrival at San Francisco, the telegraph in operation to Australia, in which event I shall avail of it to communicate with you. The unprecedented delays on the Atlantic Ocean and the Continental railroads the past winter, have thrown our steamers, consequent upon waiting the arrival of the mails at San Francisco, so much behind schedule time, that we find it impossible to regain the lost time, and afford our steamers the opportunity for overhaul absolutely necessary at the termination of each trip, especially when such continued high speed is required as in our contract. Under these circumstances, and the absence of a connecting steamer at Honolulu, I have ordered the "Nevada" to be detained at Honolulu after her next arrival in that port, until next regular schedule day, after which we shall endeavour to keep up the schedule times of departure. I have, &c, The Hon. Julius Vogel. W. H. Webb.

No. 34. The Hon. J. Vogel to Mr. Webb. Sir,— General Post Office, Wellington, Bth June, 1872. I have considered your detailed statement of the reasons which induced you to take the steamer " Nebraska " on from Honolulu to San Francisco, that statement being contained in. your letter dated Honolulu, April 15, receipt of which I have now the honor to acknowledge. It would be useless for me now to discuss the policy of the course you pursued. V on will have realized that the non-arrival of the " Nebraska " with the March mail from England has done much to injure the estimation in which the service is held in Australia, and may do much towards inducing a non-ratification of the contract with Victoria. I have no doubt, however, that, in taking the " Nebraska " to San Francisco, you acted, as you thought, for the best. But I must observe, that the disarrangement of the service is not entirely due to your having—on two occasions, I believe —had to delay the steamer at San Francisco on account of the " snow blockade ;" for the primary cause of the disarrangement is the very long time occupied before bringing the " Dacota" into use as one of the contract vessels. I have, &c, W. H. Webb, Esq., New Tork. Julius Vogel

No. 35. Mr. F. H. A. Phillips to the Hon. J. Vogel. Sic, — Australasian Steam Navigation Company, Sydney, 10th April, 1872. The Board of Directors of this Company had yesterday under consideration the subject of a mail service between Auckland and Levuka, and I have now the honor to inform you that they are willing to perform the service in question for the sum of five thousand pjounds per annum. I have, &c, The Hon. Julius Vogel. F. H. A. Phillips. Postmaster-General. New Zealand. Secretary.

No. 36. The Hon. W. Gisborne to the Hon. J. G. Francis. Sic, — Colonial Secretary's Office, Wellington, 27th June, 1872. I have the honor to enclose copy of a letter from the Postmaster-General of this Colony, on the subject of the San Francisco contract, and to express the concurrence of this Government in the recommendations contained therein. The Government are willing to adopt either of the following two courses in modification of the present agreement.