F.—H

16

shall be victualled by the Company as chief-cabin passengers without charge either for their passages or victualling; and whilst the vessel stays at any port, excepting the Ports of Wellington, Auckland, and San Francisco, to or from which the muils are conveyed, every such officer, agent, and assistant shall be allowed to remain on board, and shall be victualled as aforesaid. 23. Every such mail officer, agent, and assistant shall be recognized and treated by the Company, its officers and agents, as the agent of the Postmaster-General, and as having full authority in all cases to require a due and strict performance of this contract: Provided that no such agent, officer, or assistant shall have power to control or interfere with any master, commander, or officer in the performance of his duty; and every such agent, officer, and assistant shall be subject to all general orders issued by the master or commander for the good order, health, and comfort of the passengers and crew, and the safety of the vessel. 24. In case of any great or habitual non-performance or non-observance of this contract, or of any of the agreements, matters, or things herein contained, and on the part of the Company, its officers, agents, or servants, or any of them, to be observed or performed, whether there bo or be not any penalty or sum of money payable by the Company for any such non-observance or non-performance, it shall be lawful for the Postmaster-General," if he shall be of opinion that the Company is not bona fide carrying out the provisions herein contained, and he shall so think fit (notwithstanding there may or may not have been any former non-observance or non-perform-ance of this contract), by writing under his hand, to determine this contract without any previous notice to the Company or its agents. And.the Company shall not be entitled to any compensation in respect of such determination, and such determination shall not deprive the Postmaster-General of any rights or remedies to which he would otherwise be entitled by reason of any non-observance or non-performance of any of the provisions herein contained : Provided that such habitual non-performance or non-observance of this contract has been duly pointed out to the Company, nnd reasonably prompt and effective steps have not been taken by it to have the provisions of this contract properly carried out. 25. All notices or directions which are hereby authorized to be given to the Company, its officers, servants, or agents, may be delivered to the master or commander of any of the said vessels, or other officer or agent of the Company in the charge or management of any vessel employed in the performance of this contract on board stich vessel, or left for the Company on board such vessel, or at the Company's office at Wellington, Auckland, or San Francisco, and any notices or directions so given or left shall be binding on the Company. 2G. It shall be lawful for the Postmaster-General by writing under his hand, at any time and from time to time, to delegate all or any of the powers vested in him by virtue of this contract to such person or persons as he may think fit. 27. If the Company shall refuse or wilfully neglect to carry out the services hereby provided for, or any of them, according to the true intent and meaning of these presents, then, irrespective of any other liability it may thereby incur, it shall forfeit and pay to the Postmaster-General aR liquidated damages, and not as a penalty, the sum of three thousand pounds. 28. All and every the sums of money hereby stipulated to be paid by the Company shall be considered as liquidated or ascertained damages, whether any damage or loss shall have or shall have not been sustained, and may be set off by the Postmaster-General against any moneys payable to the Company under or by virtu 3of these presents, or may be enforced by the PostmasterGeneral as a debt due, with full costs of suit at his discretion : Provided always that the payment by the Company of any sums of money for any neglect or default in the observance or performance of the covenants or agreements herein contained shall not in any manner prejudice the rights of the Postmaster-General to treat such defaults as a non-observance or non-performance of this contract on the part of the Company. 29. If any dispute, question, difference, or controversy shall arise between the PostmasterGeneral and the Company touching these presents, or any clause or thing herein contained, or the construction thereof, or any matter in any way connected with these presents or the operation hereof, or the rights, duties, or liabilities of the Postmaster-General or of the company in connection with the premises, then and in every or any such case the matter in difference shall be referred to the arbitration of two arbitrators, one to be appointed by each party; and this provision shall be deemed to be a submission to arbitration under and subject to the provisions of the Arbitration Act, 1908. 30. The arbitration shall take place and be conducted at Wellington. 31. In the event of the Vancouver service being es+ablished at any time during the currency of this contract, and Auckland included as a port of call both ways, the Postmaster-General may. if the service to and from San Francisco is considered to be satisfactory, extend this agreement for a term of two years from the nineteenth day of October, one thousand nine hundred and eleven, with Wellington as the inward and outward New Zealand port of call. 32. The Company shall be at liberty to extend the service hereby provided for by continuing the voyage of the vessels employed hereunder and the conveyance of mails from San Francisco to Wellington to the Port of Sydney, and thence back to Wellington or Auckland at the option of the Postmaster-General, provided that no payment for such extended service shall be made to the Company by the Postmaster-General, and provided also that the Company shall in nowise allow such extension of the service and voyage as aforesaid to interfere with the due and regular service to and from Wellington or Auckland to San Francisco at the times and in the manner hereinbefore provided for. And to insure the due and proper observance of the provisions of this contract it shall be obligatory upon the Company, in case it elects to extend the service under this clause, to provide, maintain, and keep for such purpose a third vessel, conforming in all