2190. Have you learnt anything since you presented the petition, which justifies you in making a charge now, which you would not have been equally justified in making then: it appears that the petition presented on the 8th August, 1844, contains no such charge of favouritism against the Board of Admiralty; what information have you received since that time, which you think justifies you in making the charge now?--I think it is self*-evident that there most have been favouritism, or the public would have been admitted, and also from the way in which the contract has been carried out. The Peninsular Company have several times broken their contract, and no penalties have been exacted. There was one distinct case of favouritism, which was this: one of the reasons assigned to me why the China contract was given to them was, that the Peninsular and Oriental Company had offered to do it with vessels of 400-horse power for £45,000 a year; apparently at the same price as our tender. but ours was to be reduced the third year, and theirs was to continue at the same rate; but their condition was, that they were to find vessels, from the 1st July, 1846, of 400-horse power, and they failed to do so; and in consequence of their not providing those vessels, the vessels were overworked, and the mails were delayed; but yet the penalty has not been exacted, and that arises from favouritism. 2191. Is your impression that it is one part of the duty of the Admiralty to take care that the parties tendering are in the possession of efficient vessels, and are men of sufficient property and respectability to afford a security that the contract will be performed?--My opinion is, that a contract of that kind is a matter which ought not to be left to the Admiralty; it is a matter more concerning the Board of Trade than the Admiralty; and it is all a mistake for one department of the Board of Admiralty to have the management of it. 2192. Be so good as to inform me whether you think the Government, in making a contract, are bound to foresee, as far as may be possible, whether the parties will really be able to fulfil it. You have stated that the Peninsular and Oriental Company have repeatedly broken or not performed their contract. Do the Committee understand you to mean that it is one part of the duty of Government to take precautions beforehand, that the parties who make a contract shall be capable to perform the contract?--It is their duty, but I believe in that instance they neglected it.