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This despatch represented a total of 68U sacks of foreign mail, of which 291 sacks were for New Zealand, the balance being for Canadian points, China, and Japan, the total being loaded in a through storage-car which was forwarded from Chicago, sth January, via Chicago and Minneapolis R.P.O. train No. 57. Under ordinary conditions this mail could not reach San Francisco to connect with the " Moana," scheduled to sail 6th January. When the discovery was made that the mails for New Zealand had not been withdrawn from the storage car at Chicago, but had been forwarded through intact with the other mails for Canada, China, and Japan, the Superintendent of this service at Chicago telegraphed the Superintendent of the Railway Mail-service at St. Paul, Seattle, and San Francisco, giving them information in the hope that these mails could be intercepted at some point en route and forwarded to San Francisco with the least possible delay incident to holding the steamer. It has been explained that at the time of this occurrence the working-force in the office' of the Superintendent, Railway Mail-service, Chicago—lll—was completely disrupted; the rooms were being painted and cleaned, and the entire Railway Mail-service headquarters was practically put out of business, the clerks being permitted to go home, as they could not remain in the rooms without danger of contracting colds and otherwise becoming ill. The failure of a prompt and complete despatch of this mail from Seattle by first available train after its receipt at that point has been made the subject of appropriate action with those concerned. The Department regrets very much the irregularity, and I am confident the investigations made in the case and the action taken in connection therewith will avoid the possibility of a recurrence. I have, &c, ■ A. H. Stephens, General Superintendent. Mr. H. Stephenson Smith, Resident Agent for Dominion of New Zealand, No. 311 California Street, San Francisco, Cal.

Enclosure 3 in No. 35. The Resident Agent for New Zealand, San Francisco, to the General Superintendent, Railway Mail-service, Washington. Sir, — Resident Agency for New Zealand, San Francisco, 20th February, 1915. 1 have the honour to acknowledge the receipt of your communication of the 12th instant in explanation of the above incident—namely, that on account of the renovation of the Chicago office al, the time, the office i'otce was relieved from duty, and the mails were permitted to proceed to St. Paul. The explanation as above, looking at it even from a broad standpoint, does not appear to me, nor will it be, I anticipate, to my Government, entirely satisfactory, and does appear scarcely in keeping with the judgment and precision that have hitherto characterized the operations of the Railway Mail-service in connection with the' transmission of the through mails for the Dominion in the past. Even if it was known that the mails in question would not reach San Francisco until after the advertised date of departure, I presume you are aware that the Chicago office was informed *•*- by telegraph from here prior to the arrival of the mails at Chicago that they should come through to San Francisco, as the steamer was being held for them, and therefore it was reasonably to be expected that, if any doubt existed in the mind of the Chicago officials, they would have telegraphed to San Francisco. It has not been, I believe, the practice in the past to divert without instructions. The holding of the steamers at this port for belated mails has been customary for many years, and it would seem as if the Chicago office should have been conversant with this practice. I sincerely trust that definite instructions have now been given to the Chicago officials somewhat in line with the suggestions contained in my report upon this matter in letter dated the 12th January, so that a recurrence of this serious delay may be prevented in future. Regretting the necessity of this communication, and trusting to hear further from you in the near future, I have, &c, H. Stephenson Smith, Resident Agent for the Dominion of New Zealand. A. H. Stephens, Esq., General Superintendent of the Railway Mail-service, Washington D.C.

No. 36. The Secretary, General Post Office, Wellington, to the General Manager, Union Steam Ship Company, Dunedin. (Telegram.) . Wellington, 23rd February, 1915. " Marama " calling at Auckland : Am advised that vessel under the existing contract cannot be exempt from the payment of harbour dues at Auckland.