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No. 30. Messrs. Williams, Dimond, and Co. to Mr. Gray Sic, — Agency Pacific Mail Steamship Company, San Francisco, 7th April, 1881. We have to inform you that on March sth, while the steamship " City of New York" was proceeding on her voyage from Sydney to this port making her customary speed, weather and every circumstance appearing most favourable and promising a successful voyage, at 3 o'clock in the afternoon her after crank-pin broke. At the time the accident happened the steamer was on her fifth day from the Port of Auckland, in latitude 18° 21' 8., longitude 171° 53' W., off the Tonga Islands. The vessel was immediately put under canvas, the engines disconnected, and work commenced to remove the fractured pin and substitute a new one. Owing to the disadvantages inseparable from the situation—being compelled to do the work at sea; the narrow space in which it must be done; the necessity for extreme caution in handling a mass of molten iron—the work could not be completed with the same expedition as if the ship had been alongside her dock and all appliances at hand for manipulating the materials. The utmost industry and energy were exerted by the officers and crew of the ship during every hour of the days and nights until the needful repairs were completed, the time consumed being 11 days 17 hours 15 minutes. As soon as the work was finished, and proper experiment had demonstrated its entire solidity and safety, the usual pressure of steam was applied, and the vessel made her usual speed from that point to this port, arriving here and delivering the colonial mails at 630 p.m. April 3rd. While this accident is most profoundly regretted by this company, we most respectfully represent to your honorable postal authorities that it was of a nature that no human forethought could effectually guard against or avert; also that, although overtaken by it on the ocean, at a great distance from all assistance, the excellent equipment of the ship, and the ability of our officers and crew, proved sufficient to provide adequately for all whose lives were confided to our care, and reduced the damage and inconvenience of the detention to a minimum. We earnestly appeal to the magnanimity of your authorities to give due consideration to all the points in the case which weigh in our favour, and estimate them in arriving at the sum to be charged against us as forfeiture ; providing any such charge is decreed in this case. At the same time, feeling conscious that no provision which human prudence could suggest, or which scientific forethought could provide, was found wanting in the steamer's equipment for complying with our contract, we feel justified in appealing to the generosity of your department, and soliciting entire relief from deduction or fine in this first case of serious detention of the mails. We are, &c, W Gray, Secretary, General Post Office, Williams, Dimond, and Co., Wellington. General Agents.

No. 31. Mr. Gray to the Secretary, General Post Office, Sydney Sir,— Post Office and Telegraph Department, Wellington, 12th May, 1881. In forwarding you the enclosed copy of a letter of the 7th ultimo from Messrs. Williams, Dimond, and Co., of San Francisco, to this office, regarding the recent late arrival of the " City of New York " at San Francisco, owing to the breaking of a crank-pin, the Postmaster-General directs me to ask whether your department is inclined to waive the penalties due, or any portion thereof, as the contractors desire. I have, &c, W Gray., The Secretary, General Post Office, Sydney Secretary

No. 32. Mr Creighton to Mr. G-bat Sir, — San Francisco, California, 9th April, 1881. I have the honor to report that the s.s. " City of New York," having undergone necessary repairs, will sail to-morrow for Auckland and Sydney with the outgoing mail.. The detention of the vessel on the upward trip, through the breaking of the aft crank-pin, caused a great deal of uneasiness here, but fortunately ship and passengers arrived safely The United States Government despatched the war-ship " Wachuset " in search of the "City of New York" on the Ist instant, with instructions to proceed to Honolulu, and, if necessary, to the colonies. As the two vessels did not sight each other, the " Wachuset" will doubtless proceed to Honolulu, where the safety of the " City " would be ascertained. This service was spontaneously rendered by the National Government, and is an evidence of the interest taken in the Australian mail service by the Washington authorities. I wrote to the general agents of the Pacific Mail Company, suggesting the chartering of one of the fast Oregon steamships, should the " City of New York" not arrive, and requesting that a mailroom should be fitted up, in the event of such charter, in accordance with instructions from Mr. Smith, formerly of the Post Office Department, who, at my request, and at very great inconvenience to himself in a business point of view, had consented to take charge of the mail and sort it on the passage, thereby obviating any delay in distribution on its arrival in the colony 1 made no stipulation as to remuneration for this service, which was to be left entirely to the discretion of the Postmaster-General. The timely arrival of the " City of New York " prevented this arrangement being carried out, but I deem it proper to report the fact for your information. Mr. Hoggard (I think prudently) determined to return in charge of the mail, leaving the commission from the Telegraph Department to be executed by the next mail agent. The voyage has been on 9 of a peculiarly trying and unpleasant character, and I think the department was very fortunate in having had an officer of his experience and ability in charge. I hare, &c, W Gray, Esq., Secretary, Post Office, Wellington. Robt. J Creighton