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No. 11. The Hon. the Postmaster-General to J. D. Spreckels and Brothers Company, San Francisco. (Telegram.) Wellington, 6th February, 1908. Your telegram fifth December. Cannot offer subsidy pending test effectiveness proposed service. [S.F. Agr. 08/17.]

No. 12. The Secretary, General Post Office, Wellington, to J. D. Spreckels and Brothers Company, San Francisco. Gentlemen, —■ Bth February, 1908. I have the honour, by direction, to acknowledge the receipt of your cable message of the sth December last, which read [No. 3], and to confirm the Postmaster-General's telegram of the 6th instant as follows [No. 11]. In view of this Dominion's experiences, the Minister is not prepared to take any interest in oi responsibility for any|jrenewed service of your company until the condition and effectiveness of the service are proved by the actual running of the steamers. I have, &c, D. Robertson, Secretary. Messrs. the J. D. Spreckels and Brothers Company, San Francisco. [S.F. Agr. 08/18.]

No. 13. [News Extract, 26th February, 1908.] Ship Subsidy Bill. (Telegram.) New York, 25th February, 1908. The Ship Subsidy Bill introduced in the United States Senate by Senator Gallinger, authorises the payment of 16s. a mile for the outward voyage to second-class vessels running to Australasia and the Philippines. This is virtually the same rate as is at present applicable to first-class vessels. [S.F. Agr. 08/32.]

No. 14. The Secretary, General Post Office, Wellington, to the J. D. Spreckels and Brothers Company, San Francisco. Gentlemen, — General Post Office, Wellington, 23rd March, 1908. I have the honour, by direction, to acknowledge the receipt of your letter of the 6th December last, quoting and confirming your telegram of the sth idem, asking what subsidy this Government would be prepared to pay in the event of the San Francisco mail-service being resumed under the conditions detailed in your letter. The Postmaster-General's telegram of reply of the 6th ultimo is confirmed in my letter of the Bth idem ; and I amjjjdesired tojjjsay|that after consideration of your letter the Minister sees no reason for varying the decision. The question of a Commonwealth subsidy the Minister, with your company, regards as subordinate to the main question of support by this Dominion, and as not therefore requiring to be discussed at the present time. "No official communication has been received from Sir James Mills on this subject; but any received would not affect the principle of callingjjfor a trial before asking Parliament to vote a subsidy. I have, &c, D. Robertson, Secretary. Messrs. the J. D. Spreckelsjjandjjßrothers Company, SamjFrancisco. [S.F. Agr. 08/40.]

No. 15. [News Extract, 15th May, 1908.] American Postal Subvention Bill. Auckland, 14th May, 1908. The Postal Subvention Bill passed a few weeks ago by the United States Senate authorises the Post-master-General to pay to mail-carrying vessels sailing to South America and the Orient on voyages of not less than 4,000 miles, and making from sixteen to twenty knots, $4 a mile outward voyage; and those making from fourteen to sixteen knots $2 a mile. The American papers state that the Bill was passed without division, but that if a division had been called for the " Noes " would not have equalled more than one-fourth of the Senate. The practical effect of the Bill will be to subsidise a line of mail-steamers running from San Francisco and touching at Auckland.: BThe Bill passed the Senate, but on each occasion it has been thrown out by the House of Representatives. It remains to be seen whether it will meet with a similar fate from that Chamber on this occasion. [H. 1.8., p. 310.]