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the new service up to the 30th ultimo will be claimed in the usual way by this Department for payment to the J. D. Spreckels and Bros. Company, which will communicate with you as to the manner in which future payments for the conveyance of your outward mails shall be made. I have, &c, The Deputy Postmaster-General, Melbourne. W. Geay, Secretary. [Similar letters to the Deputy Postmasters- General, Adelaide, Brisbane, Perth, and Hobart.]

No. 9. The Secretary, General Post Office, Wellington, to Messrs. Henderson and Macfarlane, Auckland. Gentlemen, — General Post Office, Wellington, 27th July, 1901. lam in receipt of yours of the 25th instant. I scarcely understand the action of Messrs. Spreckels's Sydney agent. If it means that he is coquetting with the Queensland Government merely to secure a subsidy and thereby oust New Zealand from the full advantages of the San Francisco line as the mail-route with the Mother-country, which the colony has enjoyed for so many years, then there can be no two opinions but that Mr. Spreckels is treating our Government very badly. Mr. Spreckels approached this Government, and in turn negotiations were opened up with him about entering into a contract; but he set the negotiations aside until such time as he had sufficient experience of the running of his new steamers. . . . The question of making a contract with Mr. Spreckels must necessarily come under the consideration of Parliament in a few weeks, and it is essential that the Government should know Mr. Spreckels's mind without any delay. I have, &c, Messrs. Henderson and Macfarlane, Auckland. W. Gbay, Secretary.

No. 10. Messrs. Henderson and Macfarlane, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sir,— Auckland, 29th July, 1901. We have the honour to acknowledge the receipt of your telegram of even date [not printed] inquiring whether the repairs to the " Sonoma " were not completed at Sydney. We replied stating that the new cylinder was not placed, as it was thought best to send the steamer back under compound engines, so as to enable her to keep contract dates. Yours, &c, Henderson and Macfarlane. The Secretary, General Post Office, Wellington.

No. 11. Messrs. Henderson and Macpaelane, Auckland, to the Secretary, ■ General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sir,— Auckland, 31st July, 1901. We have the honour to acknowledge receipt of your favour of the 27th instant, contents of which have our attention, on receipt of which we wired you : " Eeceived yours twenty-seventh. To-day's mail brings important letter from Mr. Spreckels. Our Mr. Dunnet proceeds Wellington latter end this week or beginning next. Be the action of Mr. Eamsay of the Sydney office, we are without any information on this subject other than what has appeared in the newspapers — which, as you know, is not always reliable. We can assure you that Mr. Spreckels has no idea of treating the New Zealand Government badly, as mentioned in your letter. He has had considerable worry with the new steamers, and can only now say that they are in good working-order. The "Ventura " and " Sierra" have been fixed up, and the " Sonoma " will be so on her arrival at San Francisco this trip. The " Ventura's " mail has brought a letter from Mr. Spreckels in which he expresses his willingness to enter into a new contract with the New Zealand Government, and Mr. Dunnet proceeds to Wellington next Sunday to lay the matter before the Government for their consideration. We have, &c, Henderson and Macfarlane. The Secretary, General Post Office, Wellington.

[Bead here F.-6b, 1901.]

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