F.—3.

16

No. 27. Messrs. Owen and Graham to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 11th November, 1875. Beg to inform you that, judging from the telegrams received by Postmaster-General from Sydney, Mr. Hall thought that the arrangement of sending a steamer to Dunedin from Sydney was set aside this month, and the " Vasco de Gama " would return via this port. 'He could not possibly arrive in Sydney in time to send the " Cyphrenes "to Dunedin; so if she had not left, the Otago agent was instructed to make arrangements, with permission of the Government, to send mails and passengers to Auckland to catch the " Vasco "on the 23rd. So, if " Cyphrenes " does not arrive in Dunedin, we hope one of the Colonial steamers may be permitted to do the work. W. Gray, Esq., Secretary, Owen and Graham. General Post Office, Wellington.

No. 28. Mr. Gray to Messrs. Owen and Graham. (Telegram.) Wellington, 11th November, 1875. Your telegram was the first intimation Government received of the possibility of through steamer not starting from Port Chalmers.—Mr. Hall must have known that both this Government and that of New South Wales refused to permit Contractors despatching through steamer from Sydney via Auckland. While you are advertising " Vasco de Gama" to sail on the 23rd, Mr. Driver is arranging to despatch the mails from Port Chalmers on the 16th. As the contractors have thought fit, without consulting the Government, to depart from the terms of their contract, they will be held liable for breach of agreement. The changing the date of the steamer's departure from Auckland is exceedingly annoying, more particularly as it had been arranged that the steamers for November and December from this end should leave all ports a day in advance of contract time. This was done with the view of insuring the mails reaching Frisco on the proper date, and permitting their being in New York in time to be despatched by fast steamer. The Contractors alone will be responsible for the short-comings of the new service at the very outset. Messrs. Owen and Graham, Auckland. W. Gray. No. 29.

Messrs. Owen and Graham to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 12th November, 1875. Mr. Hall's intention was to push to Sydney with a view of despatching "Cyphrenes" to Dunedin, and for her to do the coastal service until a boat of their own arrived; but from telegrams received by Dr. Pollen, he thought the Sydney Government and the Contractors would arrange the service this month via Auckland. Still, if he arrived in time he would despatch the " Cyphrenes" either to Dunedin or Auckland, and he trusted to find she had left for Dunedin before his arrival in Sydney, and the only certain instructions he could give us were, " You shall have a boat in Auckland on the 23rd, and get the mails from South in time, in case the " Cyphrenes " arrives a day or two late in Dunedin, when she can come direct to Auckland and await the instructions that will come by the " Vasco de Gama." We might add, the Contractors fully believe in keeping to their contract, but the withdrawal of the " Mikado " appears to have upset their plans; and we think, unless the New South Wales Government have agreed for the " Vasco " to come to Auckland, the " Cyphrenes " will certainly go South. W. Gray, Wellington. Owen and Graham.

No. 30. The Postmaster-General, Sydney, to the Postmaster-General, Wellington. (Telegram.) Hokitika, 17th November, 1875. Sydney, November 11th. —"Vasco de Gama" not arrived yet, and Mr. Watt, Company's Agent, says she cannot be got ready to leave on eighteenth. Have arranged, subject to approval of Cabinet this afternoon, for " Cyphrenes " or " City of Melbourne " to take mails out, leaving here twentieth, and returning from Frisco in January. But the arrangement for the " Cyphrenes " will be with Watt individually, and we shall probably have to pay four thousand for outward trip. Please arrange to have your mails collected at Auckland by twenty-sixth. " Macgregor " has Frisco mails on board. Postmaster-General, Wellington. Postmaster-General, Sydney.