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No. 6. Messrs. Gilchrist, Watt, and Co., Sydney, to the Hon. the Postmaster-General, Wellington. (Telegram.) 25th May, 1876. Please lodge outward subsidy " Granada." Inward subsidy " City of New York." According official time, certified. The Postmaster-General, Wellington. Gilchrist, Watt, and Co.

No. 7. Messrs. Gilchrist, Watt, and Co., Sydney, to the Hon. the Postmaster-General, Wellington. (Telegram.) 27th May, 1876. Sir Daniel Cooper tells us he has telegraphed and written to you explaining " City of San Francisco's " detention until 3rd April. Hope you will therefore now lodge five hundred and fifty pounds kept back from her subsidy. The Postmaster-General, Wellington. Gilchrist, Watt, and Co.

No. 8. Mr. Gray to Messrs. Gilchrist, Watt, and Co., Sydney. Gentlemen, — General Post Office, Wellington, 7th June, 1876. I am directed to enclose herewith copy of a telegram forwarded to you on the sth instant, notifying that a sum of £3,197 12s. 4d. had been lodged with the Bank of New Zealand here, in respect of the " Granada's " outward and the " City of New York " and " Australia's " inward services. 2. I also enclose herewith copy of the voucher prepared on your behalf in order that you may ascertain how the sum lodged with the Bank of New Zealand here on the sth instant, has been computed. I have, &c, Messrs. Gilchrist, Watt, and Co., General Agents, W. Gray, Pacific Mail Steamship Company, Sydney. Secretary.

Enclosure in No. 8. Mr. Gray to Messrs. Gilchrist, Watt, and Co., Sydney. (Telegram.) sth June, 1876. Three one nine seven pounds twelve shillings and fourpence, in respect of "Granada's" outward and " City of New York " and " Australia's " inward services, lodged with Bank of New Zealand this day. Messrs. Gilchrist, Watt, and Co., Sydney. • W. Gray.

No. 9. Messrs. Gilchrist, Watt, and Co., Sydney, to the Hon. the Postmaster-General, Wellington. Sir,— Sydney, Ist June, 1876. We have the honor to acknowledge the receipt of your letter of 25th April, and to state that the various sums advised by you, as lodged to our credit, have been duly received. We thank you for the copy of telegram ■which you have sent. Your offer was fully advised to the Contractors on 7th April, and we hope to receive by an early mail distinct authority to deal with the matter. Meantime we are not in a position, nor would we feel justified, in giving a full discharge for the subsidies named, inasmuch as we would respectfully urge that the Government should not be so rigid in enforcing penalties on the first voyage or two of a large mail service where such perfect bona fides had been displayed, and such strenuous efforts shown on the part of the Contractors to meet the wishes of the Colonial Governments in starting before their prepartions were fully in order. We have, &c, Gilchrist, Watt, and Co., General Agents for the Contractors, San Francisco Mail Service. The Hon. the Postmaster-General, Wellington.

P.—3. No. 113.