SAN FRANCISCO MAIL SERVICE.

37

R—No. 2,

of South Australia, and the award of the said arbitrator shall be binding and conclusive in every respect. In witness whereof the said parties to these presents have hereunto set their hands the day and year first above written. Witness to the signature of the Hon. Charles Gavan For C. Gavan Dufpy, Duffy, who signs by the Hon. James Macpherson J. M. Geant. Grant, the President of the Board of Lands and Works, and Commissioner of Lands and Survey, of Victoria, who is empowered to execute this contract for him, and for and on behalf of the Government of Victoria — E. Sutheeland, Chief Clerk, Crown Solicitor's Office, Melbourne. Witness to the signature of the Hon. Julius Vogel — JuliUs Vogel. W. Gray, Inspector of Post Offices, New Zealand. Witness to the signature of William Henry Webb, W. H. Webb. and Ben Holladay, by his Attorney, William Ben Holladay, Henry Webb — (By his Attorney, W. H. Webb). E. W. Nutt, Notary Public, Melbourne.

No. 28. The Hon. C. Gavan Duffy and the Hon. Julius Vogel to the Hon. J. A. Cresswell. Sir,— Melbourne, Victoria, 13th March, 1872. We have the honor to inform you, that the colonies of Victoria and New Zealand, have, subject to the ratification of their respective Legislatures, jointly entered into a mail contract with Messrs. Webb and Holladay, such contract being intended as a substitute for the one which has for some time existed between New Zealand and Messrs. Webb and Holladay. There has not been time to prepare copies of the joint contract to be forwarded by this month's mail, but Mr. Webb, who has been requested by us to present this letter, will be able to inform you of the details of the new arrangement. We desire to state that, throughout our negotiations with Messrs. Webb and Holladay, there has been an understanding that it was probable they would succeed in obtaining a subsidy from the United States Government; and we have to express the hope that, sharing the feeling which exists in these colonies as to the great uses and advantages which will arise from the steam service, the United States will yield to Messrs. Webb and Holladay a subsidy such as, in conjunction with what they receive from the colonies, will enable them to make the line a first-class one. We have, &c, J. M. Grant, For C. Gavan Duffy, Chief Secretary and Postmaster-General, Victoria. Julius Vogel, Postmaster-General, New Zealand. The Hon. J. A. Cresswell, Postmaster-General, United States of America.

No. 29. Mr. Webb to the Hon. J. Vogel. Sir, — Steamship " Nebraska," at Sea, 6th April, 1872. Notwithstanding my late communications regarding a re-arrangement of the schedule time for the running of this line of mail steamers, I beg to address you again on the subject. One year's experience running our steamers between Auckland and Otago, calling at the several intermediate ports, has fully demonstrated that we cannot, in the limited time (110 hours) allotted us in which to perform the mail service between those ports, afford to shippers and travellers the facilities or conveniences they expect and demand, or such as we would gladly afford to them, if we had additional time (say one more day) in which to complete the mail service. It is impossible to name the day when our steamers will arrive at Auckland from San Francisco, nor can we control the delay necessary for coaling at Auckland before proceeding to Otago, both the arrival and departure depending in a great degree upon the weather. For the above reasons, we are unable to advertise in advance, in any of the intermediate cities, fixing the time, with the much-needed certainty, when shippers and passengers might expect the steamers to arrive and depart with the mails. But if wo could be permitted to occupy one additional day, or about 134 hours in completing the voyage between Auckland and Otago, we could so advertise, and remain a longer time at each of the ports of Wellington and Lyttelton, and thus afford the advantages so much needed, greatly to the benefit of the public, as well as the convenience of the Government and the line. A new arrangement of the schedule of departures, permitting us to leave Otago on Thursday instead of Friday, would enable us to visit Lyttelton. and arrive at Wellington, coal our steamers at this port (as we expect to do in future), and depart before Sunday, arriving in Auckland a few days thereafter, and in good time to leave that port always on the schedule day. This arrangement will only afford time to coal steamer, receive and deliver mails, freight, and passengers; whereas, the schedule as now arranged, compels us to leave each intermediate port 10