At the close of the year 1854 a better feeling prevailed, and the Chester and Holyhead Railway Company, together with the London and North Western Railway Company, entered into negotiations with the City of Dublin Company, and, with the approval of the Government, an Act of Parliament was obtained in order to bring about an improved passenger and mail service between London and Dublin, via Holyhead and Kingstown. Considerable delay took place in the subsequent negotiations. However, at the end of 1858 matters were settled, and in January of the following year the Postmaster-General entered into a contract with the two railway companies and the City of Dublin Steampacket Company, who jointly undertook the sea service, and with the two railway companies, who undertook the land transit. By private agreement, however, with the railway companies, the City of Dublin Company became solely responsible for the sea service, and provided the four steamers. This service gave the greatest satisfaction to the travelling public; the contract was for fourteen years certain, and then from year to year, terminable by twelve months’ notice, the subsidy being £85,900 per annum for the sea service, and £50,000 per annum for the land. Twelve years after this service had been commenced, the London and North Western Railway Company, who had by that time absorbed the Chester and Holyhead Railway, commenced a rail connection between the harbour of Dublin and three of the principal Irish railway companies, which connection was completed in 1876, and the London and North Western Company began to run a service of steamers in direct opposition to the mail route. Under the terms of their agreement with the City of Dublin Company, the railway company had the power of fixing the fares by the mail route, which it exercised by maintaining the high fares by the mail and charging low fares by the railway steamers. The competition increased in intensity every year, with the result of largely diverting the passenger traffic from the mail route, the ultimate object of the railway being to bring about the abandonment of the Kingstown service, and to secure all the traffic for the railway boats to Dublin. In 1881 the City of Dublin Company brought the London and North Western Railway Company before the Railway Commissioners, who ordered a reduction of the mail fares. Immediately after this order was made, the Post Office authorities intimated their intention of terminating the existing mail contract, and of asking for fresh tenders for the service between Holyhead and Kingstown. In 1882 the City of Dublin Company put in a tender. Months were allowed to pass, and in January, 1883, it was announced that the Government had accepted a tender of the London and North Western Railway Company. It then transpired that the railway company, as well as the City of Dublin Company, had tendered for the Holyhead and Kingstown service, and that the latter company’s tender was the