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F.—4,

No. 81. Mr. Geay to Messrs. Gilchrist, Watt, and Co. Gentlemen,— General Post Office, Wellington, 27th March, 1877. I am directed to acknowledge the receipt of your communication of the 9th instant, in reply to mine of the 22nd ultimo, and to inform you that, in accordance with your request, all payments on account of the San Francisco contract will be advised to you by letter on the days of their lodgment with the Bank of New Zealand at Wellington. I have, &c, W. Geay, Messrs. Gilchrist, AVatt, and Co., Sydney. Secretary.

No. 82. Messrs. Gilcheist, Watt, and Co. to the Hon. the Postmastee-Geneeal, Wellington. Sic,— Sydney, 29th March, 1877. We have the honor to acknowledge receipt of your letter of 10th March, advising us of the payment of the subsidy for voyage up to San Francisco of " City of Sydney," from 17th January to 10th February. We have also received your telegram of 26th, "Australia up subsidy, £1,729 16s. 2d., lodged 22nd instant;" and wo thank you for this prompt advice. Both the above amounts have been duly credited by the Bank of New Zealand. We have, &c, Gilcheist, Watt, and Co., General Agents for the Contractors, San Francisco Mail Service. The Hon. the Postmaster-General, Wellington.

No. 83. Messrs. Gilcheist, Watt, and Co. to the Hon. the Postmastee-Geneeal, Wellington. (Telegram.) Sydney, 9th April, 1877. Subsidy, " City of Sydney" in, please lodge fifteen twenty-nine. Delay caused by accident unavoidable by Contractors. Repairing at Honolulu would have delayed four weeks. Captain advised return America, but decided to come on. Hope for your favourable consideration under clause eleven of contract. The Hon. the Postmaster-General, Wellington. Gilchheist, Watt, and Co.

No. 84. Mr. Geay to Messrs. Gilcheist, Watt, and Co. (Telegram.) Wellington, 17th April, 1877. Will place fifteen twenty-nine sixteen two to your credit, leaving question of penalty to stand over in the meantime. Messrs. Gilchrist, Watt, and Co., Sydney. W. Geay.

No. 85. Messrs. Gilcheist, AVatt, and Co. to the Hon. the Postmastee-Geneeal, Wellington. Sic,— Sydney, 18th April, 1877. We have the honor to advise the despatch of the following telegram to you on 9th instant:— "Subsidy, 'City of Sydney' in, please lodge fifteen twenty-nine. Delay caused by accident unavoidable by Contractors. Repairing at Honolulu would have delayed four weeks. Captain advised return America, but decided to come on. Hope for your favourable consideration under clause eleven of contract." And to thank you for the following reply thereto : — " Will place fifteen twenty-nine sixteen two to your credit, leaving question of penalty to stand over in the meantime." AVith reference to the abovo delay, wo now enclose copy of report of survey held in Honolulu by order of Captain Dearborn, from which you will observe that repairing at that port would have caused a delay of four weeks. Captain Dearborn being advised that he could return with safety to San Francisco with one engine, concluded to prosecute the longer voyage to here, which has fortunately been accomplished without further mishap. The fact of this detention being caused by an accident over which the Contractors had no control, and having in view the very satisfactory manner in which the voyage has been completed, lead us to ask for a remission of any penalty that may be due in accordance with the terms of clause 11 of the contract. We have, &c, Gilcheist, AVatt, and Co., General Agents for the Contractors, San Francisco Mail Service. The Hon the Postmaster-General, AVellington. 4—P. 4.

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