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F.—2,

services of said steamer in conveying the United States mails from San Francisco for the Australasian Colonies during the present year. In reply, I have to inform you that my order of the 9th January last, to which you refer, directed that the sum of $60,000 per annum be paid to the Oceanic Steamship Company for the service rendered by its steamers in conveying the mails in question, subject to certain deductions in case vessels of foreign register are employed for any part of said service. Upon the occasion of the sailing of the " Monowai," a steamer of New Zealand register, on the 20th February last, with the United States mails for the colonies, the agents of the Oceanic Steamship Company were informed that, if they were authorised to receive pay for the services rendered by said steamer in conveying the mails in question, compensation would be allowed them therefor at the rate specified in my order of the 9th January, 1891; but, if not, then the steamer " Monowai" was not embraced in said order, and only the sea postages could be allowed for her services—viz., 44 cents per pound for letters and 4-J- cents per pound for other articles, which is the equivalent of the Postal Union sea-transit rate of 5 francs per kilogramme for letters and 50 centimes per kilogramme for other articles. After some correspondence on the subject, the agents of the Oceanic Steamship Company advised this department that they were authorised to receive pay for the services of the " Monowai," and thereupon payment was ordered to be made at the rate fixed by my order of the 9th January, 1891, for the services of said steamer upon the trip from San Francisco of the 20th February, as well as upon her trip of the Ist May, 1891. As your Administration has been informed heretofore, the statutes of the United States now in force fix the minimum compensation to be allowed for the sea-conveyance from the United States of mails for foreign countries at the sea and United States inland postage on the mails conveyed, if the service is performed by steamers of United States register, and if the service is performed by steamers of foreign register at the sea postage only. When it became advisable, in view of the subsidy paid by your Administration in aid of the direct mail-service between the colonies and San Francisco, to fix a definite amount per annum to be allowed by this department for the same service, a careful estimate was made of the amount of postage collected on correspondence contained in the mails for the colonies during an entire year, from -which it appeared that said postage would amount to $60,000, whereupon my order of the 9th January was made, allowing that sum per annum to the Oceanic Steamship Company, as the steamers of that company were at that time performing the entire service. My order covered only the regular service therein provided to be performed by vessels of the Oceanic Steamship Company, and if that company failed to perform any part of said service provision was made for certain deductions. But the order was not intended to cover, and had no reference to, services performed by vessels other than those of the Oceanic Steamship Company. When the steamer " Monowai" was tendered the only question to be decided was whether or not she was performing service for the Oceanic Steamship Company, and, when that question was answered in the affirmative, she was promptly recognised as coming within the scope of my order, and settlement was made accordingly. If she had not been sailing for said company I would have had no alternative but to allow her, as compensation, only the sea postage on the mails conveyed by her. I have, &c, J. Wanamakee, Postmaster-General. The Hon. the Postmaster-General, Wellington.

No. 121. The Hon. J. G. Wabd to the Hon. the Postmasteb-Genebal, Washington. Sib, — General Post Office, Wellington, 9th December, 1891. I have the honour to acknowledge the receipt of your letter of the 15th September, replying to mine of the 12th August. You detail the circumstances under which the contribution of $60,000 paid the Oceanic Steamship Company by your department, in consideration of performance of the San Francisco mail-service, was fixed upon, and notify that, as the " Monowai " had been reported as performing service for the Oceanic Steamship Company, payment for that service was being made at the same rate as for that of vessels belonging to the company. I am much obliged for your communication, and pleased to find that the " Monowai's " service had already been recognised at the same rates as were paid on account of the " Zealandia," for which the " Monowai " was substituted. I have, &c, The Postmaster-General, Washington, D.C. J. G. Wabd, Postmaster-General.

No. 122. Mr. Whitson to the Secbetaey, General Post Office, Wellington. Union Steamship Company of New Zealand (Limited), Dunedin, Deab Sik,— 29th April, 1891. I notice that we have never yet had any vouchers from you for the mailage on the San Francisco mails. I should be glad if you would give effect to the arrangement which was entered into between us—namely, that you should give an estimate of the amount carried each month, subject to adjustment when the formal records were forthcoming. Will you supply us with the particulars of the San Francisco mail-matter forwarded from Sydney, or shall we be supplied with it by the Sydney Post Office direct ? Kindly advise me. Yours, Ac, T. W. Whitson, W. Gray, Esq., Wellington. For Managing Director.