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two in train 26 as soon as that work is accomplished, and still be able to bring it into New York on time. This matter you brought to our attention after having had some correspondence with the Resident Agent for New Zealand at San Francisco." I shall be pleased to have whatever further suggestions you may have to offer. Very respectfully, H. P. Thrall, Superintendent. H. Stephenson Smith, Resident Agent for New Zealand, San Francisco. * These are just-ordinary trains.

No. 22. The Resident Agent for New Zealand, San Francisco, to the Seceetary, General Post Office, Wellington. g IR _ Resident Agency for New Zealand, San Francisco, 7th July, 1904. 1 have the honour to report that the s.s. " Sierra " from the colonies did not arrive at this port until 9 a.m. on Monday, the 27th June. The mails were landed too late to connect with the 10 a.m. train for the eastern States, and as a consequence did not reach New York until two hours after the departure of the s.s. " Lucania," and were detained in New York until yesterday (the 6th), when they went forward by the s.s. " Teutonic." In this connection I enclose you a copy of a communication received from the general manager of the Cunard Steamship Company referring to the matter, which is in line with his previous communications upon the subject. I do not know whether it is practicable to carry out Mr. Brown's suggestion for an earlier departure from New Zealand in view of what has already been done m that direction, but 1 am of the opinion that a strong representation of the case should be made to the Oceanic Steamship Company in respect of the necessity of an earlier arrival at this port, especially during the winter months, otherwise delays such as are reported upon this occasion would seem inevitable. Now that the call at Fanning Island has been discontinued, it would appear as if some benefit in the way of an earlier arrival at this port should be possible. I feel that the Cunard Steamship Company will at all times facilitate the New York connection up to the last moment that prudence permits. I have, &c, H. Stephenson Smith, Resident Agent. The Secretary, General Post Office, Wellington.

Enclosure in No. 22. The General Manager, Cunard Steamship Company, New York, to the Resident Agent for New Zealand, San Francisco. Dear Sir,- New York > 2nd 1904 - . Your telegram received. I regret to say it was impracticable to delay "Lucania" sailing to-day as her appointed hour was 9 a.m. Had the mails arrived on time it would haye been 11 o'clock before they could have been delivered to the ship, and 1 p.m. before she could have crossed the bar, which would have been half-tide on the ebb. With the ship s heavy draft we did not think it prudent to take this chance. _ As all ships now sail early in the day on Saturday it is all the more important that an arrangement should be made if possible to start the mail-steamer from New Zealand at least twelve hours earlier than at present, otherwise, as I have previously pointed out, it will be necessary to have frequent delays on the part of the ships, and an occasional missing of the mail, such as occurred in present instance. Yours, &c, Vernon H. Brown. H. Stephenson Smith, Esq., Resident Agent for New Zealand, San Francisco.

No. 23. Messrs. Henderson and Macfarlane, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), SIR __ Auckland, 13th July, 1904. We have the honour to acknowledge receipt of your letter of sth instant, and note that the Postmaster-General has been pleased to agree to the abandonment of the claims of your Department against the " Ventura " for demurrage on our refunding the amount received by us on 28th nave therefore paid the sum of £110 into the Post Office here on 11th instant. With the hope that the spirit which has prevailed in the settlement of this matter may continue to regulate the dealings of your Department and the Oceanic Company, ■\\e have, &c, The Secretary, General Post Office, Wellington. Henderson and Macfarlane.