5

F.—3b.

Enclosure in No. 3. Mr. Malcolm to the Agent-General for New Zealand. Sir, — Downing Street, 28th April, 1876. With reference to your letter of the Bth of February, I am directed by the Earl of Carnarvon to transmit to you, for your information, a copy of a despatch which his Lordship has addressed to the Governors of New South Wales and New Zealand, after further communication with the Lords Commissioners of the Treasury upon the subject of the course to be taken in consequence of the proposed increase by the United States Government of the charge on account of the transit of the mails for Australia and New Zealand across the North American Continent. I have, &c., The Agent-General for New Zealand. W. R. Malcolm.

'F.—3. Enclosure 7 in No. 96. Vide No. 1.

No. 4 Messrs. Gilchrist, Watt, and Co., Sydney, to the Hon. the Postmaster-General, Wellington. Sir,— Sydney, 4th May, 1876. We have the honor to state that the General Agent of the Pacific Mail Steamship Company, at San Francisco, reports that the " City of San Francisco " delivered her mails from New Zealand at San Francisco on the 9th of March last, thirty-one hovirs twenty-two minutes under contract time, and that the Mail Agent lias so certified. We have to request that you will therefore lodge to our credit in the Bank of New Zealand at Wellington the premiums, in accordance with clause 12 of the contract. We have, &c, The Hon. the Postmaster-General, Wellington. Gilchrist, Watt, and Co.

No. 5. Mr. Gray to Messrs. Gilchrist, Watt, and Co., Sydney. Gentlemen, — General Post Office, Wellington, 16th June, 1876. I am directed by the Postmaster-General to acknowledge the receipt of your letter of the 4th ultimo, stating that the General Agent of the Pacific Mail Steamship Company reports that the " City of San Francisco " delivered her mails from this colony at San Francisco on the 9th of March last, thirty-one hours and twenty-two minutes under contract time, and that the Mail Agent has so certified. In reply, I am to state that you appear to be under a misapprehension as to the Mail Agent having given a certificate. The length of the voyage is computed as per enclosed schedule, which shows a bonus due on six hours only. A sum of thirty pounds (£3O), being the amount of the bonus, will therefore be lodged to your credit at the Bank of New Zealand here. I have, &c, Messrs. Gilchrist, Watt, and Co., General Agents of the W. Gray, Pacific Mail Steamship Company, Sydney. Secretary. Schedule Referred to. The "City of San Francisco" left Auckland midnight of 14th February, and arrived at San Francisco at 12.40 p.m. of 9th March, equal to.. .. 564 hours 40 minutes Time gained .. .. .. 24 „ 0 „ 588 „ 40 „ Less time lost (difference in Auckland and San Francisco time) .. .. .. .. 4 „ 10 „ 584 „ 30 £ s. d. Being within 591 hours, entitling Contractors to a subsidy of 1,729 16 2 And bonus of £o per hour for 6 complete hours .. .. 30 0 0 1,759 16 2 Subsidy already paid .. .. .. .. 1,729 16 2 Balance due .. .. .. .. .. £30 0 0