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This was the basis of the recent renewal of the proposition in the joint letter of the 25th May last. But the tenor of the letters of the Secretary of the Navy and the Postmaster General of the 1st and 2d instants seems to admit of an interpretation beyond a determination not to hold themselves liable, directly or indirectly, for any additional 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 reserved 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,
New York, June 16, 1852.

SIR: Since my letter of yesterday, addressed to the Postmaster General, was written, I have been favored with a copy of Mr. Aspinwall's

Rep. No. 326-5

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, President.

Hon. W. H. DUNDAS,

Acting Postmaster General.

United States Mail Steamship Company.-Assignees of A. G. Sloo, contractor. Proposed time schedule, as per letter 15th of June, 1852.New York and Aspinwall line.

Leave New York on the 5th and 20th of each month;

Arrive at Aspinwall about the 14th and 29th of each month.

Returning, leave for New York on the arrival of the Pacific mails at Aspinwall.

New York and New Orleans line, (touching at Havana each way.)

Leave New York on the 12th and 27th of each month;
Arrive in New Orleans about the 22d and 7th of each month.
Returning, leave New Orleans on the 11th and 29th of each month,
and arrive in New York about the 21st and 6th.

New Orleans and Aspinwall, direct line.

Leave New Orleans on the 7th and 22d of each month;
Arrive at Aspinwall about the 14th and 29th of each month.
Returning, leave Aspinwall on the arrival of the Pacific mails.

POST OFFICE DEPARTMENT, June 16, 1852.

SIR: William H. Lord is appointed agent to take charge of the mails out to California on the next regular trip.

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His letter of appointment states that he will leave New York on the

20th instant, as, at the time it was written, it was expected the late order for a change of schedule on the line would be carried into effect. Mr. Law, however, having signified his unwillingness to agree to the conditions of said order, the old arrangement will continue, and Mr. Lord will leave on the 24th of this month.

You will not send any mails on the 20th, unless the contractors give assurance that they will go through without delay, and without additional expense to the department. Nothing can be gained by sending out mails to remain at Aspinwall or Panama until the arrival of the mails by the Havana line, leaving New York four days later. I am, respectfully, your obedient servant,

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W. H. DUNDAS,

For Postmaster General.

POST OFFICE DEPARTMENT,

June 18, 1852.

SIR: Your letters of the 15th and 16th insts., 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 theprobable 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 instant.

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.

POST OFFICE DEPARTMENT,

June 18, 1852.

SIR Herewith I have the honor to enclose copies of two letters, one bearing date the 15th and the other the 16th instant, received to-day

from George Law, esq., relating to the proposed change on the New York, New Orleans, and Chagres line.

The letter from this department to Mr. Aspinwall, of the 14th inst., referred toy Mr. Law, is in substance the same as the one I had the honor of addressing to you of same date.

It now appears that Mr. Law is ready to carry out the arrangement contemplated by the order of the 31st ult., provided his company can be at liberty to return to the existing arrangement, on giving the department one month's notice, if, on a fair trial, the proposed plan shall be found to operate unfavorably to their interest. He proposes, however, to change the days on the Havana line, to leave New York on the 12th and 27th, instead of the 9th and 24th, of each month, and to leave New Orleans on the 11th and 26th, instead of the 10th and 25th, which change, on the part of this department, is assented to as a part of the arrangement; and Mr. Law is also further advised that, should it be found for the interest either of the company or the government to return to the existing arrangement, the same may be done, as he proposes, on one month's notice by one party to the other, the change to take effect from and after the 5th of next month.

Should you concur in the modifications above mentioned, you will have the goodness to inform Mr. Law thereof at your earliest convenience.

I am, very respectfully, your obedient servant,

Hon WM. A. GRAHAM,

W. H. DUNDAS,
For the Postmaster General.

Secretary of the Navy, Washington, D. C.

POST OFFICE Department,

June 18, 1852.

SIR: Mr. Law has signified his willingness to carry out the arangement on the New York, New Orleans, and Chagres line, contemplated by the order of the 31st ultimo, with the understanding that, if found on a fair trial to work unfavorably to their interest, they shall have the right, on giving one month's notice, to return to the existing arrangement. He also proposes to leave New York, on the Havana line, the 12th and 27th of each month, instead of the 9th and 24th; and New Orleans the 11th and 26th, instead of the 10th and 25th. These modifications are assented to by the department, (with this additional proviso, however, which it is hardly probable will ever have any practical effect,) that the government retains the right, also, of revoking the order on a month's notice, if, as suggested in your letter of the 25th ultimo, "this plan be found to work disadvantageously.” The change may take effect from und after the 5th proximo. I am, very respectfully, your obedient servant,

WILLIAM H. ASPINWALL, Esq.,

W. H. DUNDAS,
For the Postmaster General.

President Pacific M. S. S. Co., New York, N. Y.

PACIFIC MAIL STEAMSHIP COMPANY,
New York, June 17, 1852.

SIR: I have seen Mr. Law since receiving your letter of the 14th instant, and find, as expected, that he misunderstood your previous letter. I hope that after receiving his letter, which went forward by the last mail, there will be no obstacle in the way of our making a good beginning on the 5th July of the new arrangement.

In answer to the closing inquiry in your letter, I beg leave to suggest that, as this arrangement is to be continuous only in case it is successful, no appeal could be properly made to Congress until the experiment has been tried.

have the honor to be, with high respect, your obedient servant, WILLIAM H. ASPINWALL, President.

Hon. N. K. HALL,

Postmaster General.

POST OFFICE, NEW YORK,

June 19, 1852.

SIR: In answer to yours of the 16th instant relative to California steamer of the 20th instant, I herewith hand you letters upon that subject from Messrs. W. H. Aspinwall and M. O. Roberts.

I shall reserve all mail matter, therefore, for the steamer of the 24th June.

Respectfully, your obedient servant,

Hon. N. K. HALL,

WILLIAM V. BRADY, Postmaster.

Postmaster General, Washington, D. C.

OFFICE OF THE UNITED STATES MAIL STEAMSHIP Co.,

New York, June 18, 1852.

SIR: In relation to the direct steamer of the 21st, I presume that our correspondence, and that of Mr. Aspinwall with the department, (not received at the department when Mr. Dundas' letter was written,) was satisfactory, and that the contemplated arrangement for direct mails between New York and Aspinwall, and New Orleans and Aspinwall, will go into early effect.

I agree with the department that "nothing can be gained by sending out mails to remain at Aspinwall or Panama until the arrival of the mails by the Havana line, leaving New York four days later;" and I take it for granted that they will be sent forward by the Pacific Mail Steamship Company without delay; but for an answer in that respect, I beg leave to refer you to William H. Aspinwall, esq., president of the Pacific company.

Very respectfully, your obedient servant,

M. O. ROBERTS, Agent.

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