It was the intention of the undersigned to have commenced with the mail stages in the month of December, as they were all ready prepared and on the ground for that purpose. The expenses incurred under the contract at that time, amounted to the sum of ninety-eight thousand dollars, ($98,000,) of which $56,000 have been paid, and the balance remains unliquidated. But the department having at this time expressed, in an annual report to Congress, a disapprobation of the contract on the ground of the impolicy of conditional contracts, the undersigned ceased their operations, and, consequently, have sustained serious damages from the action of the department. It is to be regretted that the department should have interposed to break up this enterprise, which, by the terms of the contract, was to be exclusively in the power of Congress. It is also to be regretted that this route, the shortest and best for the rapid transmission of the mails, should thus remain unoccupied at the present time. The undersigned are still ready and willing to perform the service in the time and mode specified, and would further suggest that if they were not required to touch at Monterey and San Diego, they would further stipulate to carry the mails, at all times, so as to make each trip between San Francisco and New Orleans in less than thirteen days. By the other routes the time now required is some nine or ten days more. Thus an important saving of time would be effected, and a corresponding benefit to the public. Very respectfully, your obedient servants, ALBERT C. RAMSEY. EDWARD H. CARMICK. Hon. JAMES CAMPBELL, _Postmaster General_. * * * * * POST OFFICE DEPARTMENT, _November 30, 1854_. GENTLEMEN: Your letter of the 28th instant has been received. The conditional contract for service between San Francisco and Vera Cruz, to which you refer, was executed on the 3d of March, 1853, just before I came into office. My attention was called to the subject of Mr. Rankin’s letter of the 16th of June, 1853. In my letter of the 9th July following, I gave my views at length in regard to this contract; and if sums of money were expended by you after that time, it was done with a full knowledge of my views, which remain unchanged. I am, respectfully, your obedient servant, JAMES CAMPBELL, _Postmaster General_. Messrs. RAMSEY & CARMICK, _New York, N. Y._ * * * * * NEW YORK, _December 20, 1854_.