expense. It seems to preclude the idea of any application hereafter on the part of this company to Congress for any additional compensation, whatever may be the additional performance of mail service, and to be a distinct negative by the departments, to which we become parties, upon anything additional that Congress may deem it just and expedient to allow. It seems also to preclude the right on the part of the company to go back to the schedule under the contract. While it has not been the intention of this company to hold either of the departments liable, directly or indirectly, for any additional mail service beyond the conditions of the contract, but to perform it, subject entirely to the decision of Congress, I desire respectfully to say that I do not feel authorized to place the company in a position that would preclude it from applying for or accepting such additional allowance as, in the judgment of Congress, might be considered equitable. By the terms of the contract for running between New York and New Orleans, Havana and Chagres, twice each month, we stipulate to employ five steamships in the performance of the mail service, two of them being spare ships. The proposed service will require six steamers in constant service and three spare ships. We were entirely willing to make the trial, and to continue the service, if it should prove as advantageous to the public as was supposed, and the business of the company would justify the increased expenditure to which it would be subjected; but if it should not, or if Congress should not regard it of sufficient importance to pay such compensation as would enable the company to perform the additional service without loss, the company reserve the right to return to the former schedule, viz: twice a month between New York and New Orleans, and twice a month between Havana and Aspinwall. In such case, it was also the intention to give the Postmaster General due notice, one month being thought sufficient for that purpose. Upon this basis the company is prepared to enter at once upon this arrangement, to carry it out to the best of its ability, and to contribute to the extent of its means to the mail facilities between New York and California. I have the honor to be, very respectfully, your obedient servant, GEORGE LAW, President. Hon. N. K. HALL, Postmaster General. OFFICE OF THE UNITED STATES MAIL STEAMSHIP COMPANY, SIR Since my letter of yesterday, addressed to the Postmaster General, was written, I have been favored with a copy of Mr. Aspinwall's letter to the Postmaster General of the 12th instant, and the reply of the department of the 14th instant. I perceive by the reply that we have given a construction to the letters of the Secretary of the Navy and the Postmaster General, addressed to me, different from that given by the departments themselves. Upon the basis of my letter of yesterday, which seems to be in accordance with the reply of the department to Mr. Aspinwall of the 14th instant, we are prepared to enter at once upon the proposed arrangement, and to try it in accordance with the enclosed schedule. 'The change of day for leaving New York for New Orleans (as will be seen by the schedule) is made for the purpose of enabling the mails to reach New Orleans before the departure of the mail steamers from that port to Aspinwall, by which the mails and shippers will have the advantage of two routes, to send letters and duplicates by one route if not sent by the other. It will also afford a partial remedy, should any accident happen to the direct line from New York to Aspinwall. I have the honor to be, very respectfully, your obedient servant, GEORGE LAW, Hon. W. H. DUNDAS, President. POST OFFICE DEPARTMENT, SIR: Your letters of the 15th and 16th instants, respectively, are received. In reply, I have to say that, so far as this department was concerned, and the same, we have no doubt, is true of the Navy Department, it was not the intention to hold your company to the proposed arrangement, after a fair trial, should the change be found to operate disadvantageously to either party. It is therefore understood that, should it be found for the interest either of the company or the government to return to the existing arrangements, this may be done, as you propose, on a month's notice by one party to the other; and the change may take effect from and after the 5th of next month. Please state the probable days of arrival at New York and New Orleans by the direct steamers. We will prepare the advertisement of the schedule, so that it may be published in the newspapers here as early as Tuesday morning next, adopting the days for both lines named in the schedule accompanying your letter of the 16th inst. The Secretary of the Navy will be advised to-day of the substance of this letter, that he may also address you on the subject. I am, very respectfully, your obedient servant, GEORGE LAW, Esq., W. H. DUNDAS, For the Postmaster General. Pres. U. S. Mail S. S. Co., New York, N. Y. OFFICE OF THE UNITED STATES MAIL STEAMSHIP COMPANY, New York, June 21, 1852. SIR: I have the honor to acknowledge the receipt of your letter of the 18th inst. This company is prepared to enter upon the proposed arrangement for the direct line between New York and Aspinwall, and New Orleans and Aspinwall, and the line between New York and New Orleans, via Havana, at the period fixed by the department-5th July. The days of arrival at New York and New Orleans from Aspinwall, by the direct line, cannot be definitely stated. It will depend upon the arrival of the Pacific steamer at Panama and the mails at Aspinwall, and also upon the state of the weather. Judging from previous running in both oceans, the arrivals at New York direct from Aspinwall will be about the 12th and 27th of each month, and at New Orleans about the 10th and 25th. I give this as an approximate time, as the department will readily perceive that we cannot fix any positive days of sailing, when so much depends upon the arrival of the mails at Aspinwall, and upon the weather. I am, very respectfully, your obedient servant, GEORGE LAW, President. WM. H. DUNDAS, Esq., Acting Postmaster General. OFFICE OF THE UNITED STATES MAIL STEAMSHIP COMPANY, SIR Mr. Aspinwall informs me this morning that you hesitate to carry out the arrangement for direct lines between New York and Aspinwall, and New Orleans and Aspinwall, on the ground that no answer had been received on the 22d instant to the letter of the department of the 18th. Neither Mr. Law, Mr. Roberts, nor myself supposed that the completion of the arrangement and the publicity of it depended upon any further reply; inasmuch as the proposition had been mutually agreed upon, the schedule of running sent by Mr. Law to the department, and the letter of the department of the 18th having directed that the arrangement go into effect on the 5th of July. But a reply was written by Mr. Law on Monday, the 21st, (the first business day after the letter of the department was received by him,) stating the determination of this company to comply with the arrangement, and to enter upon it on the day named by the department. The letter of the department having been sent from the post office to Mr. Law's house, he did not receive it until Saturday evening, too late for the mail of that day. His reply ought to have been received at the department on the morning of the 22d. Lest it may have miscarried altogether, I take the liberty to enclose a copy of it. Understanding the arrangement to have been closed, orders were sent out by the Illinois on the 21st to Aspinwall and California, with copies of the new schedule, and by letter and telegraph to New Orleans, to make all the necessary preparations, and announced by advertisement the change of sailing days. Remote agencies elsewhere were also advised of the change, and directed to give immediate and extended publicity of it. It will be impossible to recall these direc tions in time to prevent serious embarrassment and difficulty, and it would subject us also to loss and public censure. We have not pressed this arrangement upon the department, but have been willing to make a trial of it, believing it to be for the public convenience and advantage, not holding the department liable for the increased service, but leaving the matter to the future decision of Congress. Meanwhile, each party being at liberty to discontinue it on a month's notice. Now that the arrangement is made and announced, both companies desire to carry it out; and I beg leave respectfully to express the hope that the instructions given by the department for the commencement of the arrangement on the 5th July may not be recalled. I have the honor to be, very respectfully, your obedient servant, E. CROSWELL. Hon. N. K. HALL, Postmaster General. P. S. Mr. Law would have written had he been at the office to-day. POST OFFICE DEPARTMENT, SIR: I have received the letter of Mr. Croswell of the 23d instant, and also yours of the 21st instant. The schedule proposed for the direct line between New York and Aspinwall, and New Orleans and Aspinwall, and the line between New York and New Orleans, via Havana, has been adopted, to go into effect on the 5th of July next. Notice of this change will appear to-morrow in the papers of this city, and the necessary instructions to postmasters issued immediately. I am, respectfully, your obedient servant, GEORGE LAW, Esq., N. K. HALL. President U. S. Mail Steamship Company, New York. Upon the understanding which this correspondence established the service has continued to this day. It is certain that the memorialists refused to perform the service without a distinct understanding that they claimed a compensation, the amount of which was to be submitted to the justice of Congress, and that the department accepted the service and arranged a schedule in the full knowledge and understanding that the parties expected such recompense. It further appears that the department reserved a right to receive a month's notice before the memorialists should have the privilege to discontinue the service, and that fines were imposed for failures on the direct line. The service was continued, as agreed, until August 8, 1854, when the memorialists exercised the right to discontinue the direct New Orleans and Chagres mail upon one month's notice. The correspondence being very suggestive of considerations that corroborate and sustain the view taken by the committee, they quote such portions of it as are material. UNITED STATES MAIL STEAMSHIP COMPANY, New York, August 8, 1854. SIR: In accordance with the understanding had between this company (as assignees of A. G. Sloo) and the department in the month of June, 1852, when the present arrangement for transporting the mails on the route between New York, Havana, New Orleans, and Chagres was made, which understanding was that the arrangement might be discontinued upon either party giving to the other thirty day's notice thereof, and the route named in the contract be resumed, (for the particulars of which_arrangement I beg to refer you to the letter of the department of June 18, 1852, to George Law, esq., and to Mr. Edwin Croswell's reply thereto of the 23d of the same month,) I beg leave respectfully to inform the department that that part of the arrangement referred to by which a semi-monthly mail direct between New Orleans and Aspinwall has been carried for the past two years will be discontinued, commencing with the departure from New Orleans of the 20th of September proximo, and the California Inails, to and from New Orleans, will thereafter be carried via Havana. The dates of sailing of the steamers running between New York, Havana, and New Orleans will be changed, so as to make the necessary connexions at Havana. The direct line of steamers between New York and Aspinwall, sailing from here on the 5th and 20th of each month, will for the present be continued as heretofore. I have notified the company's agent in New Orleans of the proposed change, and have requested him to inform the postmaster there of it. I have the honor to be, very respectfully, your most obedient servant, M. O. ROBERTS, President. Hon. JAMES CAMPBELL, Postmaster General, Washington. POST OFFICE DEPARTMENT, SIR Your letter of the 8th ult. was duly received, giving notice of the intention of your company to discontinue, from and after the 20th instant, the present direct line between "New Orleans and Aspinwall," which was provided for in the order of 31st of May, 1852; and that the California mails, to and from New Orleans, will thereafter be conveyed via Havana. The schedule on the "New York, Havana and New Orleans line" has accordingly been changed as proposed by you, so as to leave New York on the 2d and 17th, instead of the 12th and 27th, of each month, and New Orleans on the 5th and 20th, instead of the 11th and 26th, of each month, the steamers from each direction to meet at Havana on the 8th and 23d of each month. Your proposition is understood to be that the present semi-monthly |