lower of the two, but the Government, instead of accepting it, had negotiated a contract for the throughout service with the railway company, which would have enabled them to convey the mails and passengers in the railway steamers to Dublin instead of to Kingstown. [Illustration: WILLIAM WATSON, Esq. (late Chairman City of Dublin Steampacket Co.).] It can well be understood that the public, who were well pleased to have the two lines of steamers, had no intention of being deprived of the Kingstown route, and a storm of indignation arose over the country. The Government professed that in making the new arrangement they were acting with economy, but this was shown to be a mere subterfuge, for they had agreed to pay the railway company £106,000 a year—only a trifling amount less than they would have paid if the steampacket company’s offer had been accepted and the railway payment continued as before. To quote the words of a prominent member of Parliament: “The Government were giving an opulent railway company not only a monopoly of the passenger traffic, but a large subsidy besides, for merely carrying the mail bags on their established line of passenger steamers.” So powerful was the agitation that arose, that the Government discovered they would not be able to get the contract confirmed by the House of Commons, the Irish members to a man being determined to vote against it. The result was the contract was not brought forward for confirmation, and new tenders were asked for the Holyhead and Kingstown sea service, special provision being made for the passenger traffic, which the Government had ignored on the previous occasion. Greater speed being desired, the City of Dublin Company tendered for improved steamers; but the railway company, who had no intention of going to Kingstown, did not compete, and the City of Dublin Company were successful in obtaining a contract for twelve years certain, the subsidy being £84,000 per annum. The four mail packets—the ULSTER, LEINSTER, MUNSTER, and CONNAUGHT—were provided with new boilers and improved machinery, and their passenger accommodation was remodelled and greatly enlarged.