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8. That said vessels shall take as cadets or apprentices one American-born boy under twentyone years for each one thousand tons gross register, and one for each majority fraction thereof, who shall be educated in the duties of seamanship, rank as petty officers, and receive such pay for their services as maybe reasonable. 9. That such steamers may be taken and used by the United States as transports or cruisers, upon payment to the owners of the fair actual value of the same at the time of the taking ; and if there shall be a disagreement as to the fair actual value of the same at the time of the taking between the United States and the owners, then the same shall be determined by two impartial appraisers, one to be appointed by each of said parties, they at the same time selecting a third, who shall act in said appraisement in case the two shall fail to agree. Approved —3rd March, 1891.

Sub-enclosure 2 bo Enclosure 1 in No. 81. The following is a copy of the advertisement as it appears in newspapers in Boston, New York, Philadelphia, Baltimore, New Orleans, St. Louis, Charleston, Norfolk, Savannah, Galveston, Mobile, San Francisco, Portland (Oregon), and Tacoma (the numbers of the routes not forming part of said advertisement) : — Ocean Mail Lettings.—Notice to Bidders. Post Office Department, Washington, D.C., 20th December, 1899. Proposals will be received at the Post Office Department, in the City of Washington, until 3 o'clock p.m., 31st March, 1900, for conveying the mails of the United States by means of steamships described in said Act, on the route hereinafter described. Bidders are invited to submit proposals for service on said route under a contract for five years, and also for ten years, which shall commence on the Ist day of November, 1900. The right is reserved to reject all bids. Schedule. Route No. 75. —O.M.S. from San Francisco, California, to Sydney, New South Wales, Australia; touching at Honolulu, Apia, or some other port in the Samoan Islands to be designated by the Postmaster-General, and Auckland, New Zealand. Once in three weeks, seventeen times a year, in vessels of the second class. Time, twenty-one days. Bond required with bid, $40,000. Circulars containing a copy of the Act, a description of the route, instructions to bidders, and blank forms of proposals with accompanying bonds can be obtained of the Superintendent of Foreign Mails, Post Office Department, after the 2nd January, 1900. Charles Emory Smith, Postmaster-General, Instructions to Bidders. Proposals to be considered must conform in all particulars to the provisions of the Act first above referred to (which bidders are advised to become familiar with), and must be properly guaranteed, with certifications satisfactory to the Postmaster-General of the financial standing of the bidders and guarantors, and their ability to make good their contract and guarantee. Proposals should be sent in sealed envelopes to the Superintendent of Foreign Mails, Post Office Department, Washington, D.C., with the words "Ocean-mail proposals" written on the envelope; and they must be despatched in time to be received at the Post Office Department on or before 3 o'clock p.m. of the 31st March, 1900, awards thereon to be made as soon as practicable. No withdrawal of a bid will be allowed unless the application therefor is received at least twenty-four hours previous to the time fixed for opening the proposals which is the date and hour last named. Contracts must be executed to the satisfactfon of the Postmaster-General within twenty days from date of acceptance of proposals. Proposals must conform, as to route and service, to the advertisement, and must not contain erasures or interlineations. Only American citizens can be accepted as contractors. Corporations organized in accordance with the laws of the United States or of any State or territory therein are American citizens within the meaning of the law. The names of bidders and sureties and their residences, and the name of each member of the firm, when a partnership offers, should be distinctly stated. If made by a corporation, a duly authenticated copy of the charter or articles of association, and a list of the officers and directors, must be furnished before any award of contract can be made. Only one route should be included in any proposal. Consolidated or combined bids proposing one sum for two or more routes, or offering to perform the service on one route conditioned on the acceptance of any other bid, will not be considered. Every proposal must be accompanied by a bond with two or more sureties approved personally by a Postmaster of the first or second class, which approval must not be given until the bond is completed and signed by the bidder and his sureties. In determining the lowest bid on any route, the proposed speed, the tonnage, and the time within which the vessels can be furnished will all be considered as elements in the competition. The schedule times for sailing on the outward voyages on the route advertised herein will be fixed by the Postmaster-General from time to time at the earliest practicable dates. The compensation to be paid for the service is to be computed by the mile. Hence each proposal must state the rate per mile, not exceeding the maximum sum fixed by the law, and no offer to perform the service for a sum larger than the said maximum can be considered.