E.—3

12

She is now seaworthy, and entitled to the confidence of shippers, passengers, and underwriters, all the requirements of the United States steam ship laws being complied with. I have, &c, R. H. Waterman, I. W. Raymond, Eaq. United States Inspector of Hulls.

No. 19. The Agent-General to the Hon. the Colonial Secretary. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sib,— 12th December, 1872. I have the honor to transmit herewith copies of correspondence relative to the subsidizing, by the Imperial Government, of Mr. W. H. Webb's line of San Francisco and New Zealand Mail Packets. I have, &c, The Hon. the Colonial Secretary, Wellington, N.Z. I. E. Feathebston.

Enclosure 1 in No. 19. Earl Kimbeelet to the Agent-General for New Zealand. Sir, — Downing Street, 26th November, 1872. I am directed by the Earl of Kimberley to transmit to you, for your consideration, copies of a note and its enclosures which have been received through the Foreign Office from the United States Charge d'Affaires upon the question of subsidizing the line of mail packets plying between New Zealand and San Francisco, known as " Webb's Line." I have, &c., The Agent-General for New Zealand. H. T. Holland.

Sub-Enclosure 1 to Enclosure 1 in No. 19. Mr. B. Moran to Earl Gbanville. (Unofficial and informal.) Legation of the United States, London, My Lord, — Ist November, 1872. Mr. William H. Webb, one of the proprietors of a line of American steam ships plying between San Francisco and New Zealand and Australia, has expressed a wish to the Government of the United States that Her Majesty's Government should be made acquainted with some facts in regard to his enterprise, with a view to counteract any tendency that may exist in England or the Australian Colonies to its prejudice. The Company, which is known by the name of " The United States, New Zealand, and Australian Mail Steam Ship Line," entered into a contract in March, 1871, with the Government of New Zealand, for a line of steamers to run at stated times between San Francisco and the New Zealand group ; but it seems that they failed to obtain a subsidy from the Government of Victoria, at whose principal ports their ships also touch, pursuant to a contract which Mr. Webb made with the Postmaster-General of that Colony, in consequence of a change of Ministry, the Victorian Government refusing to make an appropriation for the amount stipulated. It is understood, however, that the subsidy granted by the Government of New Zealand still continues ; and it is hoped that the Victorian contract may yet be confirmed, or at all events that it may not be hastily granted to a rival line, which cannot expect to succeed in this important Mail Service. No subsidy has yet been given to the Company by the Congress of the United States, but Mr. Webb desires it to be made known to Her Majesty's Government, and especially to Her Majesty's Post Office Department, that the President of the United States and the PostmasterGeneral recommended, in their respective Messages last December, that Congress should enact laws at the last session, granting pecuniary aid for the encouragement of commerce in American-built ships, and particularly mentioning the trade which the United States, New Zealand, and Australian Line was established to develop and promote; and also to make Her Majesty's Government and Post-master-General acquainted with the contents of the letter addressed by Postmaster-General Creswell to the Postmaster-General of Victoria and New Zealand on the 19th of June, 1872, the letter addressed by the Hon. the Secretary of the Navy to Mr. Webb on the 12th of June, 1872, and a letter addressed by the Senate Committee on Post Offices and Post Roads to him on the 11th of that month. The writers of all those letters take an interest in the success of Mr. Webb's line, and express a hope that Congress will aid it by a subsidy. Mr. Webb also desires that the Representative of the United States in London should put himself in communication with the London Agents of the interested Colonies, make them acquainted with the foregoing facts, as well as with the contents of the letters above named, and explain to them fully the present state of the enterprise. These wishes having been brought to Mr. Fish's notice, I have been informed that he is willing that anything I can do in the case should be attempted, but that my proceedings for the purpose are to be strictly unofficial and informal. I beg, therefore, to submit the case in a purely unofficial and informal manner for the information of Her Majesty's Government, Her Majesty's Post Office Department, and the London Agents of the interested Colonies ; and to enclose herewith copies of the above-mentioned letters explaining the views of their respective writers in regard to a subsidy to the line from Congress.

E. No. 4, 1871, Enclosure 1 in No. 90.

E. No. 2,1872, No. 43.