F.—6

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from Wellington for Vancouver, on the 11th December last, up to the arrival of that vessel from Vancouver at Wellington, on the sth instant. I have, &c, W. Geay, Secretary. The General Manager, New Zealand Shipping Company (Limited), Christchurch.

No. 203. The Sbcebtabt, General Post Office, Wellington, to the Gbneeal Manager, New Zealand Shipping Company, Christchurch. Sir,— ■ General Post Office, Wellington, 23rd May, 1898. I have the honour to acknowledge the receipt of your letter of the 10th instant, asking that the department might pay the subsidy in respect of the Vancouver mail-service to your company ; and, in reply, to inform you that, on the accounts being adjusted, your request will be acceded to. I have, &c, W. Geay, Secretary. The General Manager, New Zealand Shipping Company (Limited), Christchurch.

No. 204. The General Manager, New Zealand Shipping Company, Christchurch, to the Secretary, General Post Office, Wellington. The New Zealand Shipping Company (Limited), Sib,— Christchurch, 25th May, 1898. I have the honour to acknowledge the receipt of your favour of the 23rd instant intimating that the subsidy in respect to the Vancouver mail-service will be paid to this company on the accounts being adjusted. I beg to advise you that we have forwarded the statement to the Sydney agents—Messrs. Burns, Philp, and Co. —to be checked, and upon receipt of their reply I will communicate with you again. I have, &c, Isaac Gibbs, General Manager. The Secretary, General Post Office, Wellington.

No. 205. The Bepresentative of the Canadian-Australian Eoyal Mail Steamship Company, Wellington, to the Hon. the Postmaster-General, Wellington. Canadian-Australian Eoyal Mail Steamship Company (Limited), Wellington, 6th June, 1898. Sir, — Vancouver Mail-service. I have the honour to respectfully bring under your notice the following statement with reference to the Canadian-Australian Eoyal Mail Steamship Company:— An account of the running and earnings of the Vancouver mail-steamers from the commencement of the service, on the 11th December, 1897, to the Bth April last, has been received from the Secretary to the Post Office Department, in which the sum of £928 has been deducted from the amount of subsidy payable under the contract for penalties incurred by the late departures of steamers from Wellington to Vancouver, and for their late arrival at Wellington from that port. Owing to the inability of the late management to provide for the disbursements of the Cana-dian-Australian Eoyal Mail Company at Sydney writs were issued against several of the steamers, and they were in consequence prevented from leaving that port on time-table date. For this reason the steamers were late in arriving at Vancouver, and could not be turned round again in time to take up the return voyage at the proper date, and so incurred penalties for late arrival at Wellington. In order to avoid a complete breakdown of the service the present management has had to advance or become security for something like £34,000 to get the steamers released and to keep them running. These debts, and the penalties which have resulted therefrom, are a legacy from the late managers of the Canadian-Australian Eoyal Mail Steamship Company, and I am instructed respectfully to ask your favourable consideration of the position, and trust that, under the circumstances, you will see your way to waive the penalties referred to. I may say that the Government of New South Wales has paid its subsidy in full without any deduction for penalties. Under the existing management the steamers are doing good work, and, with the exception of the unfortunate breakdown of machinery on board the " Miowera " at Sydney just before starting on her last voyage to Vancouver, which delayed her two days, they are running well within contract time, and I am authorised to assure you that no effort will be spared on the part of the Canadian-Australian Company to insure the successful running of the service in the future. In view of the great benefit to the colony of the Vancouver service, and of the many difficulties to be surmounted in its initiation, we earnestly trust you will not enforce the penalties referred to above. I have, &c, Isaac Gibbs, For Canadian-Australian Eoyal Mail Steamship Company (Limited). The Hon. the Postmaster-General, Wellington.