discharged the condition of approval contained in it. But inasmuch as the parties associated in the enterprise have no covert policy to pursue, and have not yet been able to carry the mails in contract schedule time between Acapulco and San Francisco, (although they have carried it repeatedly in six days, or two days less than schedule time, between New Orleans and Acapulco,) they have no disposition to raise issues or ask for unearned appropriations. They presented their claims to the last administration on the sole integrity, feasibility, and celerity of their route; the proposals for the service were regularly advertised, and the contract awarded to the parties as the lowest bidders, but not until the most critical, searching, and minute examination was made of the practicability of the whole route. The investigation was pursued by the late Postmaster General Hubbard with a critical acumen that must have detected any imperfection. The grants made to this company by the Mexican government, and authenticated according to the highest forms known to the Mexican laws, were not only critically examined, but verified at Washington by the Mexican legation. These grants, instead of interfering with treaty stipulations, will, if honestly developed, prove most conservative elements in sustaining such stipulations by the promotion of commercial, social, and domestic intercourse, and by the infusion of fraternal comity in political and civil relations. _The obstacles to the non-fulfilment of the Pacific service._—As before stated, the contractors, this company, and the Pacific Mail Steamship Company, entered into mutual covenants, by which the latter company obligated themselves to carry the mails between San Francisco and Acapulco according to the contract and schedule time as therein set forth by the department. At the date of the contract the Pacific Mail Steamship Company were running a weekly line of steamers between Panama and San Francisco, in the weeks intervening with their semi-monthly mail; and the late administration intended, by this weekly line and the Vera Cruz and Acapulco route, to send a weekly instead of semi-monthly mail to San Francisco, and in sixteen days from New Orleans instead of twenty-eight days (the average at that time of the semi-monthly mails) from New York. The Pacific Mail Steamship Company withdrew their weekly line, which of course prevented the execution of the Pacific service in contract time until steamers could be placed on the line between Acapulco and San Francisco, and which this company are making arrangements to effect, not only in reference to the line from New Orleans, but from New York, so as to carry passengers in sixteen or eighteen days from New York to San Francisco. In consequence, however, of the (early) non-performance of the Pacific service in schedule time, it is understood that your department rescinded the order made by the late Postmaster General Hubbard for the