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plaints to make about it now, but to effect this, the numerous delays which we have had in waiting for the English mails at this end have put us to very considerable expense, notably in the case of " Ventura," voyage 18, when we had to take care of a large number of passengers, and then force the steamer to her extreme capacity in order to make up some of the time. Yours, &c, Fred. S. Samuels, Assistant to President. Messrs. Henderson and Macfarlane, Auckland.

No. 20. The Secretary, General Post Office, Wellington, to Messrs. Henderson and Macfarlane, Auckland. Gentlemen, — General Post Office, Wellington, sth July, 1904. I have the honour to acknowledge the receipt of your letter of the 16th ultimo, covering copy of one from the head office of the Oceanic Steamship Company, San Francisco, with reference to the claim for demurrage for the " Ventura's " detention on the 12th-13th February last, and to the Department's claim for the late arrival at San Francisco in January last year. The matter has been submitted to the Postmaster-General, who has been pleased to agree with your suggestion that on a refund of the amount paid to the company this Department's claim shall be abandoned. There is also a further claim of £236 on account of the " Ventura's " voyage in March-April last, which, having regard to the spirit in which the contractors have viewed the claim already paid, the Minister has also agreed to waive. I have, &c, W. Geay, Secretary. Messrs. Henderson and Macfarlane, Auckland.

No. 21. The Resident Agent for New Zealand, San Francisco, to the Secretaey, General Post Office, Wellington. Sir, — Resident Agency for New Zealand, San Francisco, 6th July, 1904. I have the honour to acknowledge the receipt of your communication of the 26th of May [not printed: acknowledges No. 16] in reference to the transit of the mails across the Continent. In this connection I enclose herewith copy of a communication received by the Superintendent of the Railway Mail-service relating further to the endeavours to arrange for the 20th Century Limited express to convey the through mails from Chicago to New York when that course would effect a connection with the Atlantic steamer. From this letter it will be noted that until some improvements are effected in the Lake Shore track we shall not be enabled to take advantage of this fast train out of Chicago. Mr. Brown does not indicate when the contemplated strengthening of his railroad will be completed, but I fear it may be some time before any benefit can be secured to our mails. I have, &c, H. Stephenson Smith, Resident Agent for New Zealand. The Secretary, General Post Office, Wellington.

Enclosure in No. 21. The Superintendent, Railway Mail-sebvice, San Francisco, to the Resident Agent foe New Zealand. Sir,— San Francisco, 30th (?) June, 1904. I beg to quote communication of the Hon. the General Superintendent of this service regarding the despatch of Australian British mails by the 20th Century Limited train from Chicago to New York city: — " Under date of the 3rd instant, this office addressed a communication to Mr. W. C. Brown, vice-president of the New York Central line, respecting the despatching from Chicago, under certain conditions, of the British Australian mail arriving at Chicago too late to catch No. 32. Mr. Brown gave the matter careful consideration, and replied, under date of the 20th instant, that he finds that since January Ist his road has handled six cartloads of this mail; that on 15th January, sth February, 10th and 29th April* the car went forward on No. 6, and on 26th February and 18th March the mail was not received in time for No. 6, and was forwarded on No. 10. Mr. Brown says he regrets that it is impossible for them at present to carry this mail through on the 20th Century Limited, but states that they are placing their bridges in shape as rapidly as possible on the Lake Shore Road, where the defect seems to be, so as to support a much heavier load than at present, and thus permit them to run much heavier engines than they now use in hauling their trains. He states that he thinks he can without doubt put an additional car or