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No. 35. The Hon. Geo. McLean to the Hon. the Colonial Seceetaey, Sydney. (Telegram.) Wellington, 4th June, 1877. Cunningham's compromise: Power of attorney forwarded Agent-General by yesterday's mail. The Hon. the Colonial Secretary, Sydney. Geo. McLean.

No. 36. Messrs. John Mackeell and Co. to the Hon. the Postmaster-Geneeal. Sic, — 21, Cannon Street, London, E.C., Ist June, 1876. In the settlement of the contract with the Pacific Mail Steamship Company, it became necessary to employ agents in New York to investigate the powers of the Company to enter into contracts and to see that proper powers of attorney were executed, enabling the agents of the Company in London to enter into the contracts. The charges of Messrs. Foster and Thomson, the agents employed in New York, amounted to £119 4s. 6d., and we requested them to apply to the Company for payment of their account. They experienced a difficulty in obtaining payment, and suggested that we should apply to the Company for payment of the amount. We accordingly did so, and have now received from the Company a letter of which tho following is a copy : — " Office of Pacific Mail Steamship Company, Pier, foot of Canal Street, " North River, New York, 12th May, 1876. " Deae Sies, — Yours of the 27th ultimo has come to hand. In reply thereto we can only inform you that we have a long open account with the Governments of New South Wales and New Zealand, iv the settlement of which the matter in point with yourselves will be considered and the responsibility determined. " Yours, &c, "J. B. Houston, " Messrs. John Mackrell and Co., London." " Second Vice-President. We consider that these charges are charges which ought fairly to be paid by the Company, and must have been incurred by them, if Mr. Russell and Sir Daniel Cooper had declined to negotiate with them until proper powers of attorney had been sent over and the powers of the Company had been investigated, which they would undoubtedly have done had not the matter been so pressing in point of time ; but it was thought better to instruct, by cable, agents in New York to see that sufficient powers were executed, and advise us by cable, so that the agents might sign without waiting for the arrival of the powers. We have, &c, The Hou. the Postmaster-General, New Zealand. John Mackeell and Co.

No. 37. Mr. Geay to Messrs. John Mackeell and Co., London. Gentlemen, — General Post Office, Wellington, 29th July, 1876. The Postmaster-General has directed me to acknowledge the receipt of your letter of the Ist June ultimo, and to inform you that the amount of Messrs. Foster and Thomson's claim will be deducted from subsidies becoming due the Pacific Mail Steamship Company, and that by a subsequent mail you will be informed to whom Messrs. Foster and Thomson should apply for payment of their account. I have, Ac, W. Geay, Messrs. John Mackrell and Co., London. Secretary.

No. 38. Mr. Geay to Messrs. Gilcheist, Watt, and Co. Gentlemen, — General Post Office, Wellington, 29th July, 1876. In forwarding you the accompanying copy of a letter received from Messrs. John Mackrell and Co., of London, I am directed by the Postmaster-General to inform you that as the Pacific Mail Steamship Company are indebted the amount claimed by Messrs. Foster and Thomson, it is the intention of this department to deduct one-half of the sum from the next payment to be made the Contractors. The question of recovering the balance will rest with the Postmaster-General of New South AVales, to whom a copy of Messrs. Mackrell and Co.'s letter has been forwarded, with the request that this department be advised in the matter aud as to the manner in which payment should be made by the two Governments to Messrs. Foster and Thomson. I have, &c, AY. Geay, Messrs. Gilchrist, Watt, and Co., Sydney. Secretary.