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premiums in connection with the San Francisco Mail Service, I have the honor, at the instance of my Directors, to request the favour of a reply to my communications on the subject under date of 7th July and 14th October, copies of which are enclosed herein, and to say that the Board will feel much obliged by the Hon. the Postmaster-General's early decision thereon. I have, &c, Fredk. Phillips, The Secretary, General Post Office, Sydney. Secretary.

M Enclosure 6 in No. 98. Mr. Lambton to the Hon. Saul Samuel, C.M.G., M.L.C., Sydney. Sir, — General Post Office, Sydney, 6th December, 1875. I am directed to inform you, that the Directors of the Australasian Steam Navigation Company are urging the settlement of a claim they have made under the eleventh' clause of the agreement entered into by them on the 9th February, 1875, copy of which I enclose, for demurrage on all occasions when it has happened that the mail packet has been detained at San Francisco a longer period than twelve days calculated from the respective dates of arrival of the packets at that place, notwithstanding that such dates of arrival have been before the dates stipulated in the time table approved for the regulation of the mail service. Mr. Burns desires mc to state that the eleventh clause of the agreement in question does not appear to him to be open to the construction put upon it by the Australasian Steam Navigation Company, and that he is not disposed to sanction the payment of this claim. But as it has been represented by the Company that the right to demand demurrage in the manner now claimed was a subject-matter of discussion with you as Postmaster-General when the contract was negotiated, and that you specially pointed out to the Company that an incentive to the making of quick passages would be afforded by the operation of the eleventh clause permitting a claim to be made for demurrage for the period that intervened between the time of the actual arrival and the time of the arrival specified in the time table, Mr. Burns will be glad if you will, at your early convenience, kindly inform him whether these representations are correct. I have, &c, The Hon. Saul Samuel, C.M.G., M.L.C., S. H. Lambton, Sydney. Secretary.

Enclosure 7 in No. 98. The Hon. Saul Samuel to the Secretary, General Post Office, Sydney. Sir, — Sydney, 17th December, 1875. I have the honor to acknowledge the receipt of your letter dated the 6th December, and, in reply, request that you will be good enough to inform the Postmaster-General that I conceive it is scarcely within my province to express an opinion as to the precise legal bearing of the written agreement made with the Australasian Steam Navigation Company for the temporary mail service between this colony and San Francisco. The document having been prepared in the Crown Laws Department, the legal interpretation of clause 11 can, I think, be better ascertained by its being referred to the Crown Law Officers for their opinion. I beg, however, to state that the agreement in question was arrived at after numerous interviews and much discussion between the Manager—one of the Directors of the Australasian Steam Navigation Company—and myself, and that I am quite unconscious of any such understanding with regard to the demurrage being calculated as stated to you by the Australasian Steam Navigation Company. I considered, and still consider, that the twelve days allowed for detention at San Francisco were those provided for in the time table, and I am confirmed in this belief by the fact that I perfectly recollect that the Company refused to submit to any penalties for late arrivals, and I consequently refused to allow any premiums for arrival before time to be inserted in the agreement, stipulating that the voyage should be performed with the utmost despatch possible. I can only look upon the claim made by the Company as one for premiums for early arrivals, to which I consider they are not entitled. I have, &c, The Secretary General Post Office, Sydney. Saul Samuel.

Enclosure 8 in No. 98. Mr. Trouton to the Postmaster-General, Sydney. Australasian Steam Navigation Company, Sydney, Sir,— 12th January, 1876. As several communications to your department respecting this Company's claim for premiums in connection with the San Francisco Mail Service remain unanswered, I do myself the honor, under instructions from my Board, respectfully to beg the favour of a reply thereto, as early as possible. I have, &c, Fred. H. Trouton, The Postmaster-General, Sydney. Manager.