P.—4

20

Enclosure 2 in No. 39. Memorandum. The voyages are all calculated on the basis of pilot to pilot, and, in cases where the exact time of boarding or debarkation of pilot has not been stated in the copy of the ship's log furnished to this Department, the following allowances, being an average for six voyages each way, have been made :— At San Francisco, 1 hour 30 minutes; at Auckland, 30 minutes ; at Port Chalmers, 1 hour. If the odd minutes for any voyage exceed thirty, the full hour has been reckoned, and, if the contrary, then they have been struck out. In the adjustment of time the following formula has been adopted: —Port Chalmers to San Francisco add 24 hours, and deduct the difference of time between Port Chalmers and San Francisco, calculated to be 4 hours 26 minutes, which is equal to adding 19 hours 34 minutes. San Francisco to Port Chalmers deduct 24 hours, and add the difference as above. The difference of time between Auckland and San Francisco is calculated at 4 hours 16 minutes, which requires an addition or deduction, as the case may be, of 19 hours 44 minutes for adjustment of time. W. Gray.

No. 40. Mr. Lambton to the Secretary, General Post Office, Wellington. Sir,— Sydney, 28th January, 1878. With reference to your letter, dated the 21st August last,* forwarding a copy of further correspondence relative to the claim made by Messrs. John Mackrell and Co., on behalf of Messrs. Foster and Thomson, for the sum of £119 4s. 6d., for law costs, telegrams, &c, in connection with the settlement of the San Francisco Mail Contract, and stating that the Postmaster-General of New Zealand would be willing to abide by any decision this Department might arrive at in the matter, I have the honor to inform you that, although it was considered the expense should in all fairness have been borne by the Contractors, the Government of this colony decided in September last to adopt the course (which would seem to be in accordance with the views of New Zealand) of allowing the claim in question to be paid by the Governments of the two colonies. Mr. Burns considers, therefore, that the claim against the Contractors may now be abandoned, and the matter regarded as settled. I have, &c, S. H. Lambton, The Secretary, General Post Office, Wellington. Secretary.

No. 41. Mr. Ghay to Messrs. Gilchrist, Watt, and Co. Gentlemen,— General Post Office, Wellington, 28th March, 1878. Adverting to my letter of the 23rd August last,t relative to the claim of Messrs. Foster and Thomson, of New York, for law costs in connection with the San Francisco Mail Service, I have now the honor to inform you that, as the Governments of New South Wales and this colony have agreed to abandon their claim against the Contractors for the amount of the account in question, the moiety thereof, £59 12s. 3d., deducted by this Department in the month of August, 1876, from subsidies then payable to the Contractors, will be refunded. A voucher for the amount will therefore be scheduled in your favour forthwith. I have, &c, W. Gray, Messrs. Gilchrist, Watt, and Co., Sydney. Secretary.

No. 42. Messrs. Gilcheist, Watt, and Co. to the Hon. the Postmaster-General. Sir,— Sydney, Ist May, 1878. We have the honor to acknowledge receipt of your letter dated 28th March, intimating that the Governments of New Zealand and New South Wales had agreed to abandon their claim against the Contractors for the amount of account for law costs of Messrs. Foster and Thomson, and that a voucher for your moiety thereof would be scheduled forthwith in our favour. We thank you for this information, which we forward to the head office in due course. We have, &c, Gilchrist, Watt, and Co., General Agents for the Contractors, San Francisco Mail Service. The Hon. the Postmaster-General, Wellington.

No. 43. The Hon. Mr. Fisher to the Agent- General. Sib, — General Post Office, Wellington, 28th March, 1878. Adverting to your communication of the 25th. June last, relative to a matter pending between the Governments of this colony and of New South Wales and the Contractors for the Sau Francisco * F.-4A., 1877, No. 40. t F.-4A., 1877, No. 41.