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The San Francisco mail-service contract expires in November next, and that for the Direct service in December. The maximum, minimum, and average number of days within which the mails were delivered between London and New Zealand, Sydney, and Melbourne, by the San Francisco and BrindisiNaples services, and also between London and the colony by the Direct contract packets, are given below:— San Francisco Service. Dlr o C * £££ tract p - and 0. Line. Orient Line. London to Auckland .. .. 38 34 35-62 .. 50 45 47-23 .. 47 38 43-58 .. 54 39 43-88 Wellington .. 40 36 37-46 .. 47 43 44-54 .. 49 37 43-81 .. 54 39 44-85 Christehurch .. .. .. 46 44 45-31 .. 47 39 43-77 .. 54 39 45-04 Dunedin .. .. 42 37 38-85 .. 47 43 45-23 .. BluS .. .. .. .. 48 45 46-15 .. 46 38 4262 .. 52 38 43-88 Sydney .. .. 43 39 40-31 .. .. .. 39 32 34-92 .. 42 33 35-31 Melbourne.. .. 45 40 41-62 .. .. .. 38 30 33-73 .. 41 32 34-19 Auckland to London .. .. 37 34 34-85 .. 47 40 42-54 .. 48 39 44-42 .. 47 41 44-73 Wellington „ .. .. 39 36 36-77 .. 45 38 40-38 .. 51 42 47-67 .. 43 42 42-05 Christchurch „ .. .. .. .. 44 37 40-38 Dunedin „ .. .. 40 37 37-77 .. 45 38 41-38 .. Blufi „ .. .. .. .. 47 40 42-92 .. 45 39 42-88 .. 44 38 41-87 Sydney „ 42 39 39-77 .. .. .. 3'J 34 37-31 .. 38 32 35-92 Melbourne „ .. .. 43 40 40-85 .. .. .. 38 33 36-31 .. 37 31 34-81 The estimated receipts and payments in respect of the San Francisco, Direct contract, and Brindisi-Naples (Peninsular and Oriental and Orient) services for the year were as follow :— Receipts and Payments on account of the San Francisco, Direct, and Peninsular and Oriental, and Orient Mail Services for the Year 1888. San Francisco Service. Dβ. £ s. d. £ s. d. Subsidy to contractors ... ... ... 24,400 0 0 Bonus ... ... ... ... ... 1,590 0 0 Light-dues (charged on Estimates) ... ... 663 0 0 Interprovincial service (£4,500), Mail Agents, &c. 4,938 14 2 Cβ. 31,591 14 2 Postages from London Post Office ... ... 9,605 12 9 Postages collected in the colony ... ... 16,455 8 2 Eeceipts from non-contracting colonies ... ... 5,507 4 8 31,568 5 7 Net cost to the colony ... ... ... £23 8 7 In 1887 the net cost of the service was £729 ss. 7d. 305,923 letters, 278,662 books, and 640,858 newspapers were received from, and 391,769 letters, 55,475 books, and 353,192 newspapers despatched to, the United Kingdom, &c, by the San Francisco service. Direct Contract Service, New Zealand Shipping Company. De. £ s. d. £ s. d. Payments on weight of correspondence... ... 11,776 9 2 Bonus, &c. ... ... ... ... ... 7,885 0 0 Light-dues (charged on Estimates) ... ... 936 0 0 Interprovincial service ... ... ... 3,000 0 0 Cβ. ■ 23,597 9 2 Postages from London, &c. ... ... ... 10,994 19 11 Postages collected in the colony ... ... 5,922 511 16,917 5 10 Net cost to the colony ... ..-. ... £6,680 3 4 The estimated net cost of the service for 1887 was £6,707 12s. 9d. 282,036 letters, 254,819 books, and 590,721 newspapers were received from the United Kingdom, &c, by the Direct contract service; and 167,640 letters, 22,007 books, and 112,638 newspapers despatched. P. and O. and Orient Lines Federal Mail Service. Dr. £ s. d. £ s. d. Payments to — Melbourne (old P. and O. contract) ... ... 115 16 11 Sydney (old Orient contract) ... ... 33 3 6 Sydney (overland transit) ... ... ... 118 5 Melbourne (present P. and O. and Orient Line contract) ... ... ... ... 442 15 5 Some (transit through Italy) ... ... 111711 Paris (transit through France) ... ... 14 17 3 Union Steamship Company (to and from Australia)... ... ... 157 3 10 777 13 3

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