F.—2a,

2

deem just. The importance of this matter as beaiing on. the threatened withdrawal of Colonial subsidies from the San Francisco and Australian Steamship Line has heretofore been explained." This encouraged me to hope that the line of policy originally outlined my me would be followed, and that the question would be made purely one of domestic politics. I had anticipated this point, as you will perceive, in my letter to Mr. Money, and enforced it further, in writing, to Mr. Davis. On the 7th, the following was telegraphed from Washington, showing that the matter was made one of urgency, viz. :—. " THE AUSTRALIAN MAIL ROUTES. " During the consideration of the Postal Appropriation Bill, 6th May, Horace Davis procured the adoption of his amendment authorising the remission of the heavy extra charges for the trans-continental carrying of the Australian mails, by making a brief off-hand speech, in which he stated the argument in support of his proposition with such clearness, force, and earnestness, that when he took his seat not a single objection was made, although any one might have interposed a fatal point of order, and the amendment was agreed to unanimously. It will, therefore, remain in the Bill, unless the Senate should strike it out, of which there is no probability." 7. The next day the following was telegraphed from Washington :—> " HOUSE. "Consideration of the Post Office Appropriation Bill was resumed at 10.30 o'clock. Cannon opposed the amendment adopted by the Committee of the Whole, yesterday, authorising the PostmasterGeneral to remit, in favor of the Colonies of New Zealand and New South Wales, so much of the cost of the overland transportation of Australian closed mails as he may deem just. This amendment would enable the Postmaster-General to exercise discretion in letting mails for England pass through the United States without charge against the Government of Great Britain. " The House then voted on the amendments. The first amendment, on which a separate vote was demanded, was that authorizing the Postmaster-General to use 350,000 dol. of the 949,000 dol. appropriated for railway mail service, from railways necessary, and special facilities for postal service. Adopted—yeas, 110; noes, 66. " The next amendment was that all star routes should be relet after thirty days advertisement, as now provided by law, on the Ist of October, 1880, on which pay for the expedition of schedules, ordered during the fiscal years of 1876-80, shall exceed 50 per cent, of the contract price before such expedition;, provided that this proviso shall not prevail when the present contractor desires to continue the contract as reduced. Adopted—llB to 57. " The other amendments were then agreed to, but before a vote could be taken on the Bill the legislation of Thursday ended, and that of Friday began." It therefore appears that one member only spoke against the amendment affecting the Australian mail, and he had no vote, being a territorial delegate with the right of speech alone. His status may be gauged by the following editorial comment in the San Francisco Evening Post, Bth May : — "The only man in Congress who objected to the concession in favor of the Australian and New Zealand mail, in the interest of American commerce, was Cannon, the many wived English delegate from Utah. This fellow should not be admitted within the halls of Congress, and those who know his history best aver that lie has not even been naturalised." 8. Upon reading the intimation that the Hon. Horace Davis contemplated taking Congressional action in the matter, I wrote an article, which appeared in the Evening Post, of the 7th instant, reviewing the whole question, copies of which I have distributed where they would, in my judgment, be most beneficial. I append a copy. Next day, on ascertaining that action had been taken, I forwarded the following telegram : — "the western union telegraph company. " San Francisco, May 7th, 1879. " To Hon. Horace Davis, House Representatives, Washington, D.C. " Accept thanks your invaluable services Australian mail. Letter containing new facts posted. What prospect final passage Bill 1 Reply paid. " Robt. J. Creighton." 9. At this writing I have not received any reply to my telegram, but should the Bill pass in its present form I will telegraph to you on the arrival of the next steamer. You will perceive that the position is this : The Postmaster-General, in his discretion, may remit all transit charges, and this is what I am pushing for. I have no doubt he will do so if I can guarantee the permanence of the service. This, of course, is essential. Indeed, I think it is due to this country, which has taken a step in this matter entirely out of the ordinary course of legislation. Congress has been moved to set aside, not only a solemn agreement between the governments of Great Britain and the United States, but also an agreement which adds largely to the United States revenue, under sanction of the International Postal Convention, which the following extract shows :— Page 509, Annual Report of the Postmaster-General, Jan. 1880. " TRANSCONTINENTAL AND AUSTRALIAN MAILS. " For several years this department has carried across this continent, between New York and San. Francisco, a heavy British and Australian Mail, at an annual cost of about 190,000 dols., for which no return has been received from Great Britain until the month of August, 1876, when, under the excejrtional provision made in the Treaty of Berne for their lengthy and expensive railway service, special, rates of territorial transit were agreed upon between this department and the British Post Office, which were considered sufficient to cover the actual cost; of the railway transportation across our Continent. " Through the efforts of the efficient representative of this department the International Postal Congress, held at Paris in the spring of 1878, the exceptional character of the service rendered by this