F.—6.

I would urge also for his consideration that every effort is being made in other directions to carry out our contract with credit to ourselves and to the colony. As you know, we are now building on the Clyde a steamer to replace the " Monowai," and capable of performing the voyage in much less than contract time should it be necessary ; and our co-operators in this service, Messrs. Spreckels, are also spending large sums of money on their two steamers, in order to bring them up to date and also to improve their speed. I trust, therefore, that the Postmaster-General will recognise that both Messrs. Spreckels and ourselves are not sparing any expense in our efforts to improve the service, and that, under the circumstances, penalties will be waived in this case. I have, &c, James Mills. The Secretary, General Post Office, Wellington. Managing Director.

No. 20. The Secretary, General Post Office, Wellington, to the Managing Director, Union Steam Ship Company, Dunedin. Sir,— General Post Office, Wellington, 26th February, 1897. I have the honour to acknowledge the receipt of your letter of the 16th instant, on the subject of the late arrival of the R.M.S. " Zealandia" on her recent voyage, and asking that the penalty therefor be waived. The Postmaster-General has given due consideration to your representations, and now directs me, in reply, to inform you that, in view of the circumstances connected with the steamer's late arrival, especially the fact that she was not docked and cleaned before leaving San Francisco, he has decided to enforce the full penalty. I have, &c, The Managing Director, Union Steam Ship Company W. Gray, Secretary, of New Zealand (Limited), Dunedin.

No. 21. The Managing Director, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. Union Steam Ship Company of New Zealand (Limited), Dear Sir,— Dunedin, sth May, 1897. By the last San Francisco mail I received advice from Messrs. Spreckels Brothers acknowledging receipt of our cable advising the late arrival of the "Zealandia." They express great regret at the occurrence, and hope that the Hon. the Postmaster-General will waive the penalty which she has entailed. They urge that in dealing with the case of the " Zealandia " it should be taken into consideration that on other occasions their steamers have made up time lost in waiting for the mails without getting any compensation for it, and instance the last trip of the " Alameda," which left San Francisco one day late, yet reached Auckland in time. At the date of writing Messrs. Spreckels would not be in possession of our advices that the Hon. the Postmaster-General had decided to enforce the penalty, but we earnestly trust that the Hon. the Postmaster-General will take into favourable consideration the plea put forward by Messrs. Spreckels, and reconsider his decision. I have, &c, T. W. Whitson, The Secretary, General Post Office, Wellington. For Managing Director.

No. 22. The Secretary, General Post Office, Wellington, to the Managing Director, Union Steam Ship Company, Dunedin. Sir,— General Post Office, Wellington, 14th May, 1897. I have the honour to acknowledge the receipt of your letter of the sth instant, advising that you had received a communication from Messrs. Spreckels Brothers, San Francisco, expressing a hope that the penalty for the late arrival of the " Zealandia " at Auckland would not be enforced, on the ground that their steamers had on other occasions, without compensation, made up the time lost in waiting for the mails. In reply, I have to inform you that the Acting Postmaster-General has reconsidered the matter, but regrets that he is unable to see his way to waive the penalty. I have, &c, The Managing Director, Union Steam Ship Company W. Gray, Secretary, of New Zealand (Limited), Dunedin.

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