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3,900 tons. No expense or labor was spared to meet the expectations. of the government, and to contribute to the interests of the service. Besides the regular performance of the semi-monthly mail service, they have performed, for a considerable portion of the time, a weekly service between New York and Aspinwall; and for at least four of the seven years, besides the stipulated semi-monthly service between New York, New Orleans, Havana and Aspinwall, have run a direct mail line between New York and Aspinwall twice each month, and, for a considerable period, four times each month. For two years of the time they have also run a direct line, twice each month, between New Orleans and Aspinwall.

The service under the contract required five steamships of an aggregate of 6,600 tons. The aggregate of the five ships built under the contract was 10,500 tons. The increased and extra service required four additional ships; and there has been actually employed a steam force of 18,000 tons, or 11,400 tons beyond the requirement of the contract.

For this extra and enlarged mail service, performed with an express understanding with the government, that while the trustees and company did not hold the Post Office Department directly liable for it, yet it was at the same time understood that they would go to Congress, under a just claim for additional compensation.

Having surmounted all the obstacles which they were called to encounter in the outset of the enterprise, having built much larger and better ships than they agreed to build, and having performed a far greater amount of mail service than the contract required, but which the wants of the Post Office Department and the public interests called for, and having suffered losses to a large amount by the performance of the extra mail service between New Orleans and Aspinwall over and above any advantages derived from the direct service between New York and Aspinwall, they feel that they not only ought to be permitted to enjoy, in the amplest manner, all the immunities and conditions of their contract, aud to receive from Congress, during the period it has to run, undoubted protection in the enjoyment and exercise of their contract rights, but such additional compensation for the extra mail service performed by them as shall be deemed just and equitable.

They there ore pray your honorable body that the proper accounting officers of the government be directed to allow and pay to said trustees such sum as shall be ascertained to be due them therefor, estimating such extra service at a proportion not exceeding one-half the ratio per mile now paid to said trustees under the contract above mentioned.

MARSHALL O. ROBERTS,
HORACE F. CLARK,

ELWOOD FISHER,

NEW YORK, January 16, 1857.

Trustees, &c.

Former report of the Committee on Post Offices and Post Roads.

IN THE SENATE OF THE UNITED STATES, March 2, 1857.

Mr. RUSK made the following report, (to accompany Bill S. 644 :)

The Committee on Post Offices and Post Roads, to whom was referred the memorial of Marshall O. Roberts and others, trustees, &c., have had the same under consideration, and respectfully report:

That the contract with A. G. Sloo was executed on the 20th April, 1847, and was assigned to George Law and others on the 3d of September following. It required the transportation of the mails in steamships from New York to New Orleans twice a month, and back, touching at Charleston, (if practicable,) Savannah, and Havana; and twice a month from Havana to Chagres, and back.-(Vide U. S. Statutes at Large, vol. 9. page 187.) A copy of the contract is hereto appended. The first change in the service was assented to on the 21st of April, 1851, by which the contractors were authorized to run their steamers direct between New York and Havana, without touching at Charleston and Savannah. This change, the Postmaster General states, relieved the contractors from some portion of their service; but was granted, as he also states, "with a view to afford greater despatch to the through mails betweeen New York and California, and has served a good public purpose in expediting those mails."

In the spring of 1851 the intercourse with California became so important and was so greatly increased, that a saving in time on the through passages was considered essential; accordingly, the contractors ran a line direct from New Orleans to Aspinwall, and back, twice a month. The New York and California merchants desired that the through mails should be carried by the direct route, by which two days at least would be saved. The contractors were compelled, by their contract, to transport the mails by the Havana route. They expressed their readiness, however, to take them by the direct route also. The first letter on the subject, in the correspondence, was from Postmaster General Hall to Mr. Law, of the 23d of June, 1851, enclosing a letter from a New York merchant, complaining that the mails were not sent by the direct route. Mr. Law replied on the 25th of June, expressing a willingness to carry the mails by that route, if desired by the department. The Postmaster General replied, on the 1st of July, saying that this division of the mails, as he understood it, was to make no difference in regard to the expense. Mr. Law answered, on the 21st of July, saying that "he presumed it was not expected that the mails would be carried outward and homeward six times per month for the same sum for which the company contracted to carry them twice monthly ;" still, that he was willing to perform the additional service, "in the confident expectation that a sense of justice would induce Congress to make such further provision as might be a reasonable compensation for it." No reply seems to have been made to this letter by the department, but it appears that the mails

were regularly sent on board the steamers in conformity with this understanding, and the contractors considered that the condition was, that they should submit the question of compensation to Congress.

The next stage in the correspondence was in 1852, when it was proposed to run a direct line, not only from New York to Aspinwall, and back, but also from New Orleans to Aspinwall, and back, twice monthly. This line was commenced on the 16th July, 1852. The first letter on

the subject was from the Postmaster General to Mr. Law, on the 4th May of that year. Some twenty-two letters passed, from the last mentioned date to the 24th June-the last of which was of the latter date, from Mr. King, the present First Assistant Postmaster General. It seems, from this correspondence, that the Postmaster General and the Secretary of the Navy stated that the condition on which the mails were to be carried by this route was the distinct understanding that the Post Office and Navy Departments would not consent to any allowance for it from the treasury; and that an application to Congress for increased compensation would not receive their sanction. This was understood by the contractors to preclude their going to Congress on the question, and they declined to take the mails; but an explanatory letter from the Postmaster General to Mr. Aspinwall, of the 14th June, 1852, was understood by the contractors to leave the question of compensation to Congress, and the through California mails have accordingly been carried on this basis by the direct line between New York and Aspinwall until the present time, and by the direct line between New Orleans and Aspinwall until that line was discontinued. This is shown by the following letters:

[Mr. Aspinwall to the Postmaster General, May 17, 1852. Postmaster General to Mr. Aspinwall, May 18, 1852.

Joint letter, Mr. Aspinwall and Mr. Law to Postmaster General, May 25, 1852.

Postmaster General and Secretary of the Navy to Mr. Law, June 1 and 2, 1852.

Mr. Law to the Postmaster General, June 8, 1852.

Mr. Law to the Secretary of the Navy, June 10, 1852.
Postmaster General to Mr. Aspinwall, June 14, 1852.
Mr. Law to the Postmaster General, June 15, 1852.
Same to same, June 16, 1852.

Postmaster General to Mr. Brady, June 16, 1852.

Postmaster General to Mr. Law and Mr. Aspinwall and Secretary of Navy, June 18, 1852.

Mr. Croswell to the Postmaster General, June 23, 1852.
Postmaster General to Mr. Law, June 24, 1852.

Mr. Law to Postmaster General, and Mr. King to Postmaster General, June 24, 1852.]

The next stage in the correspondence was in 1853, when the intermediate or weekly through mail to California was commenced from New York to Aspinwall, and from New Orleans to Aspinwall, and back, direct. This weekly line was commenced on the 23d of March, 1853, and was continued for some four months, but, having resulted in a serious loss to the contractors, was withdrawn. For this addi

tional service, the contractors, under the more stringent conditions imposed by the present head of the Post Office Department, do not present any claim to Congress for add tional compensation.

It seems, therefore, that the claim for such compensation is for the direct mail transportation from New York to Aspinwall, and back, twice a month, from July, 1851, to the present time; and from New Orleans to Aspinwall, and back, twice a month, from July 1852, to September 1, 1854.

The Postmaster General, in his letter to the chairman of the committee, takes the ground that "neither the department nor the gov ernment has been justly subjected to any claim for additional compensation on account of extra mails which have been transported by the contractors, such additional mails having in all cases been conveyed with a distinct understanding that no additional expense should thereby be incurred by the department." The correspondence shows that the understanding undoubtedly was, "that no additional expense should be incurred by the department," but that it was also understood that a claim for compensation would be made by the contractors; that they would present it for the consideration and decision of Congress; and that while the Post Office Department "declined to be responsible, either directly or indirectly, for any additional expense in the matter"-in other words, declined "to join in submitting the subject to Congress upon a question of increased compensation"-the contractors have actually performed the service, as stated by them at the commencement, "in the confident expectation that a sense of justice would induce Congress to make such further provision as would be a suitable compensation for it ;" and that these facts being established, the contractors have an equitable claim for such additional compensation as Congress shall deem just and reasonable.

The committee report a bill, and recommend its passage.

POST OFFICE DEPARTMENT, Washington, February 12, 1857. SIR: I return herewith the memorial of Marshall 0. Roberts, Horace F. Clark, and Elwood Fisher, trustees under the contract with A. G. Sloo for the transportation of the mail between New York, Havana, New Orleans and Aspinwall, praying additional compensation for extra service performed on that route, which was referred to me by your committee on the 28th ult., with a request to be informed "if the allegations made in the memorial are sustained by the facts; if the extra service claimed by the memorialists was performed with the sanction of the department, and any other facts which may be deemed of importance in the case."

In order that the committee may fully understand the merits of this application, I have deemed it necessary to furnish herewith copies of all the correspondence which has taken place upon the subject. On a careful examination of this correspondence, I think you cannot fail to see that neither the department nor the government has been justly subjected to any claim for additional compensation on account of the extra mails which have been transported by the contractors; such additional mails having in all cases been conveyed with a distinct

understanding that no additional expense should thereby be incurred by the department.

The contract with A. G. Sloo, which was executed on the 20th of April, 1847, and assigned to George Law & Co. on the 3d of September following, requires the transportation of the mails in steamships "from New York to New Orleans twice a month, and back, touching at Charleston, (if practicable,) Savannah, and Havana, and from Havana to Chagres, and back, twice a month."

The first change ordered in this service was that assented to on the 26th of April, 1851, when permission was given to the contractors to run their steamers direct between New York and Havana, without touching at Charleston and Savannah, by which they were relieved from the necessity of stopping at those intermediate ports, without any change of mail compensation, and without requiring from them any compensatory benefit in increased service on other portions of their route. This permission was provisional in its terms, but has never been revoked. It was granted with a view to afford greater despatch to the through mails between New York and California, and has served a good public purpose in expediting those mails. It has also, at the same time, relieved the contractors from no inconsiderable portion of the service stipulated for in their contract.

In the spring of 1851 the contractors commenced running a line of semi-monthly steamers between New York and Chagres direct, in order to accommodate the rapidly increasing emigration and trade with California. These steamers were placed upon the route without the previous knowledge of the department, and without any reference to the mail service. They were despatched from New York two days after the departure of the regular mail steamers via Havana. The necessary effect of this arrangement was to divert correspondence from the mails into the hands of private expresses by the irregular steamers, as thereby correspondents gained the advantage of two days' later dates from New York on outgoing mails, and also two days' earlier intelligence from California on incoming mails. Such a state of things tended greatly to impair the efficiency of the regular mail service, and, as might be expected, numerous complaints were made to the department.

The attention of the contractors was first called to these complaints by Postmaster General Hall, on the 23d of June, 1851, on which occasion he enclosed a copy of a letter from a merchant of New York city, complaining that the California mails were not forwarded to that city by the first steamer from Chagres. I invite your attention to Mr. Law's letter in reply, of June 25, 1851, which was the first received from the contractors on the subject, wherein he stated: "If the department desires the Chagres and California mails, outward or home-. ward, to be sent by the direct steamers, I shall be happy to direct the commanders of the ships to receive them on board." In the concluding paragraph of this letter Mr. Law stated that in the case complained of "no possible fault can attach to this company or to any of its agents," as the captain of the direct steamer, on the occasion in question, "knowing the anxiety of the public to get the mails at the earliest possible day, requested that they might be sent by him; but

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