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The Postmaster-General has also received similar advice from the London Post Office, as well as an intimation that 12s. per pound of letters would be allowed for the Pacific transit of the outward British mails in the event of payment of this rate having been made to the San Francisco contractors for the contract period ending the 31st October last. The London Post Office has been informed that the progress-payments to the contractors in respect to the period in question were made at the higher rate, and the Postmaster-General at the same time acknowledged the consideration which had been shown the colony. I shall be obliged, however, if you would express to the Colonial Office the Government's appreciation of the action of both the Treasury and the Post Office in these matters. I have, &c, A. J. Cadman, W. B. Perceval, Esq., Agent-General for New Zealand, London. For the Premier.

UNITED STATES TEANSIT.

No. 48. Mr. Ceeighton to Mr. Geat. Sic, — San Francisco, 4th May, 1892. I enclose herewith copy of correspondence between the United States postal authorities and Messrs. J. D. Spreckels and Bros., general agents for the Oceanic and Union steamship Companies, touching the detention of the " Monowai " last January. You have been advised of the cause of such detention in previous correspondence. The accompanying letters were submitted to me by Messrs. Spreckels, and their perusal may interest you. Should the last instalment of the mail miss connection at any point between New York and Ogden, the fact is to be promptly telegraphed to San Francisco by the officer in charge of the Eailway Mail Service. I have, &c, W. Gray, Esq., Secretary, Post Office, Wellington. Eobt. J. Ceeighton.

Enclosure 1 in No. 48. The Postmasteb, San Francisco, to Messrs. J. D. Speeckels and Beos. San Francisco Post Office, Office of the Postmaster, San Francisco, Cal., Gentlemen,— 3rd May, 1892. I beg to transmit herewith to you the voluminous correspondence representing the investigation which has been made of the delay in the receipt of the through British mails for steamer " Monowai," which caused said steamer to be detained until 12th January. You will observe that the matter has been very carefully considered by all the postal and railway officials on the line between here and New York, and the decision reached that the present arrangement of sending the final instalment of thase mails from New York will be continued. Provision will furthermore be made for promptly notifying this office in the case of any failure of connection at Chicago, such as gave rise to the irregularity under consideration. It is a contingency which fortunately is not apt to frequently arise, and I am very much in hopes that you will not have any further cause of complaint on this score. Will you kindly return all these papers after perusal, and kindly oblige Yours, &c, Samuel W. Backus, Postmaster. J. D. Spreckels and Bros., 327, Market Street, San Francisco.

Enclosure 2 in No. 48. The Supeeintendent, Eailway Mail Service, New York, to the Geneeal Supeeintendent. Eailway Mail Service, Office of Superintendent, New York, Sib,— 13th April, 1892. Enclosed herewith I return the papers regarding the detention of the steamer " Monowai" at San Francisco until 12th January, on account of the late arrival at San Francisco of sixteen bags of mail, despatched from New York on 6th January by the 9 p.m. train, 11, N.Y. Central, thirteen of these bags being of domestic origin, made up in the New York office, and three other bags being for Fiji, made up respectively at London, Glasgow, and Dublin. The record shows that 200 bags of British Australian mail arrived at New York by the s.s. " Bothnia " at 7 a.m. on 6th January, and were forwarded in accordance with orders by the 6 p.m. N.Y. Central train, No. 5, the same day. There also arrived by the " Bothnia," enclosed to the New York office, three bags for Fiji above described. These three bags, on account of being enclosed to New York, are always forwarded the same as mails of domestic origin from New York, and, consequently, were held for the 9 p.m. train, No. 11. The papers herewith returned contain a statement from the transfer clerk at Chicago, saying that the mail despatched from New York on 6th January, by train 11, missed connection at Chicago on Bth January with the 3 a.m. C. B. & Q. train, fast mail, and were hence delayed in arriving at San Francisco, whereas the 200 bags of British Australian mail, which left New York on 6th January, at 6 p.m., by New York Central train 5, went through without delay.