25

F.—3

Enclosure 4 in No. 52. Postmaster-Geneeal, Sydney, to Mr. Merrill, San Francisco. (Telegram.) 25th July, 1874. Contractors bound to provide steamer under penalty twenty-five thousand pounds. Where is " Tartar "?

Enclosure 5 in No. 52. Mr. Lawbence, London, to Postmasteb-Geneeal, Sydney. (Telegram.) 25th July, 1874. Contractors unable to carry out contract. Owners, builders, agreed, combining to perform servico efficiently, provided contract extend twelve years with hundred thousand ; ten knots. Elder's boats, November. Get Oriental Bank telegraph Larkworthy pay eleven hundred pounds " Tartar." Keply.

Enclosure 6 in No. 52. Postmasteb-Geneeal, Sydney, to Mr. Lawrence, London. (Telegram.) 27th July, 1874. Contractors must at once send on mails from Frisco.

Enclosure 7 in No. 52. Mr. Lambton to Mr. H. H. Hall. Sic,— General Post Office, Sydney, 25th July, 1874. I am directed to state that the Postmaster-General has received a telegram dated the 23rd July from Messrs. Merrill, your agents at San Francisco, in which it is stated that the mails are "detained wanting funds," and they ask, "Shall we charter steamer, Government account. "Who London will honor draft ?" Mr. Samuel desires me to request that you will give your immediate attention to this important matter, with a view to the removal of the difficulties which appear to have arisen at San Francisco. I am also to express Mr. Samuel's regret that the arrangements of the contractors should admit of the existence of obstacles involving so gross a detention of the mails. I am to request that you will afford a full explanation of the serious breach of your contract which is occasioned by the " Tartar's " detention at San Francisco, and to point out that, under the bond, the contractors and their sureties are liable to the forfeiture of the sum of £25,000. I have, &c, H. H. Hall, Esq., Sydney. S. H. Lambton, Secretary.

Enclosure 8 in No. 52. Mr. Lahbton to Mr. H. H. Hall. Sic,— General Post Office, Sydney, 27th July, 1874. I am directed to inform you that it has been reported to the Postmaster-General that the E.M.S. "Macgregor," on her last trip from Sydney to San Francisco, left this port very much overloaded, whereby not only was the safety of the vessel and mails endangered, but the voyage would probably be prolonged. Mr. Samuel has also heard that the " Tartar," the steamer which left here on the 6th ultimo, was insufficiently manned at the time of her departure. I am to state that the conveyance of the mails with regularity, and within the period provided by the contract, appears to be entirely ignored in the desire to obtain a large passenger and goods traffic. I am further instructed to say that Mr. Samuel will insist upon a strict fulfilment of all the conditions of the contract; and that in future no vessel conveying the mails is to proceed to sea until the Postmaster-General has received a report whether she is sufficiently manned, and in every way seaworthy and fitted for the service. Captain Hixson, the President of the Marine Board, will also be directed to make such inquiries as may be deemed necessary to enable a correct opinion to be formed on these points. I have, &c, H. H. Hall, Esq. S. H. Lambton, Secretary.

No. 53. The Hon. H. Paekes to the Hon. the Colonial Secretary, New Zealand. Slfi, — Colonial Secretary's Office, Sydney, 11th August, 1874. Eeferring to my letter of the 3rd instant, on the subject of the probable failure of the contractors to continue the temporary mail service via San Franciso, I have now the honor to inform you that there is little prospect of a ship being provided by them to carry the mails from Sydney on the 29th instant. In this unexpected state of things the Government of this colony proposes to make arrangements with the Australasian Steam Navigation Company to take up the contract, subject to 4—F. 3.