F.—B

14

Honolulu .. .. .. Cabin ,875 Steerage #30 Auckland .. .. .. 200 „ 100 Sydney .. .. 200 „ 100 Melbourne .. .. .. 225 „ 110 Brisbane .. .. „ 225 „ 110 Rockhampton .. .. „ 240 „ 117-50 I have, &c, Messrs. Gilclirist, Watt, and Co., Sydney, N.S.W. A. P. Bacon.

No. 24 The Hon. W. H. Reynolds to Messrs. Gilchrist, Watt, and Co. Gentlemen, — General Post Office, Wellington, 2nd November, 1875. I have the honor to acknowledge the receipt of your letter of the 21st ultimo, in which you are good enough to inform me that owing to your not having received advices of the ratification of the San Francisco Mail Service Contract by this colony, you considered it expedient to countermand the instructions given you by the Contractors to despatch the " Mikado " to Port Chalmers for the purpose of opening the new line on the 17th instant, and to withdraw her from the service, for which special permission had been given the Contractors for her employment. You also state that you have the " Cyphrenes " already fitted to proceed to Port Chalmers in the place of the " Mikado," should you receive instructions to that effect, and on learning that the contract with the Pacific Mail Steamship Company has been ratified by New" Zealand. I regret that, on the eve of the inauguration of the new San Francisco service, the Government of this colony should have occasion to take exception to the course you have thought proper to adopt on behalf of the Contractors, in electing to withdraw the " Mikado," and to substitute in her place the " Cyphrenes." The representative of this Government in London was advised of the action taken by the Parliament of this colony in respect of the San Francisco Mail Service contract, and the Contractors, through that gentleman, would be duly informed of the ratification of the contract. It was not incumbent on this Government to advise the agents of the Contractors at Sydney of the ratification of the contract; and I therefore cannot admit your right to invalidate a special arrangement entered into in London between the Contractors and the representatives of the contracting colonies, for the reasons you have alleged; and I now give you notice, that I shall hold the Contractors responsible for any irregularity that may arise through the withdrawal of the " Mikado," from the service for which she was specially appointed; and I reserve to myself the right to take such other action as lam empowered to take under the terms of the contract for a breach of agreement. The withdrawal of the "Mikado" has created an amount of uncertainty and dissatisfaction in this colony which it would have been advisable to avoid; and it is a matter for sincere regret that you should have decided to allow the " Mikado " to be continued in the temporary service, after having been instructed to withdraw her from such service, for the purpose of despatching her to Port Chalmers to open the permanent service made with the Pacific Mail Company. I altogether object to the employment of the "Cyphrenes;" and I feel sure, if she is appointed as the through boat to San Francisco, she will be unable to perform the voyage within contract time. This will have a most damaging effect to the new line. So impressed were Sir D. Cooper and Mr. Russell with the necessity that the mails should reach San Francisco on the advertised date, that they recommended, when agreeing to the employment of the " Mikado " and " Vasco de Gama" (vessels of far greater speed than the " Cyphrenes), that the mails should close at Sydney and New Zealand a day earlier in the months of November and December than the dates fixed by the time table; and in accordance with this suggestion, this department has decided to despatch the mails from Port Chalmers on the 16th instead of the 17th instant, and on the 14th instead of the 15th proximo. You will perhaps accept this as an official notification of the fact that the steamers appointed to convey the mails from this colony to San Francisco, this month and for the month of December, will be required to leave a day earlier than the dates fixed by the time table. So satisfie dam I that the employment of the " Cyphrenes" as the through boat to San Francisco will act prejudicially to the new service, that I would urge upon you, not only in the interest of the Contractors but also for the good name of the service, to strongly recommend the Contractors to direct that the " Vasco de Gama " be appointed to begin the service from Port Chalmers on the 16th instant. Should any authorized agent of the Contractors reach Auckland by the incoming mail steamer, it is my intention to bring this matter prominently under his notice, and to point out to him the inconvenience and annoyance which has resulted in the withdrawal of the "Mikado," and the proposal to substitute the " Cyphrenes." I have, &c, Messrs. Gilchrist, Watt, and Co., William H. Reynolds. Agents for the Pacific Mail Steamship Co., Sydney.