Treasury Chambers
3 December 1858
Sir,
I am desired by the Lords Commissioners of Her Majesty's
Treasury to state, for the information of Secretary
Sir E.B. Lytton, with reference to your letter of the
2nd October
last,
that My Lords have been in communication with the
Postmaster General, and also with the Agent of the Panama
Railway
Company
on the subject of the Postal Service with
British Columbia.
My Lords are informed
that considerable expense and
inconvenience might arise, in reference to the passage across
the Isthmus of
Panama, unless satisfactory arrangements
should be made in the first place with the Railway Company
and with the Government of New
Granada.
The Agent of the Company undertook to procure from
his Company an undertaking that any arrangement made with
the Company by Her Majestys Government should cover any
demands made by the Government of New Granada, and secure
the Mail Service from the interruptions and inconveniences to
which the
Mails of the United States have been subjected in
the passage of the Isthmus.
It was necessary, however, to refer to the Company in
America, and My Lords await the reply which the Agent expects
to receive shortly.
In the mean time an Overland Mail has been established
by the American express
Company
in connection with the Atlantic
Royal Mail Steam Navigation Company, which has now entered into
a monthly service to
New York, and My Lords are disposed to
believe that a cheaper and more expeditious route could, at
least for the present, be established by this, than by any other mode.
The Postmaster
General has recommended that the contract
vessels of the Royal Mail Steam Company from Southampton to
Colon should be used rather than the Contract vessels to New
York or
Halifax, in order to save the expense of a new service
from
Halifax or
New York to Colon, but in either of these cases
the arrangements must, in the first instance, be completed for the
passage of the Isthmus of
Panama, and a Steam Service instituted
between
Panama and
New Columbia, which will be expensive, and
require a considerable time in its preparation.
My Lords are, therefore, disposed to think that it
would
be desirable, without further loss of time, to communicate
with the Atlantic Royal Mail Steam Navigation
Company,
who
represent themselves as the Agents of the American Express
Company, and as authorized to contract for the delivery of
goods and Passengers at
New Columbia, and to ascertain whether,
and on what terms, they would contract for the delivery of
Her Majestys Mails for a limited period—say one year.
I am to request that you will move Secretary
Sir E.B. Lytton to cause My Lords to be favoured
with his views upon this subject.
Minutes by CO staff
Mr Elliot
The Atlantic Royal Mail Steam
Company
is, I believe, the
Galway Line, and the "Royal Mail Steam Company" the West
Indian. The Treasury prefer the former & the Post Office
the latter Company—and the "views" of the Secretary of
State are requested. Did the selection rest with this
office our chief object would I suppose be to secure the
safest & most expeditious conveyance for our Despatches.
The expedition & punctuality of the old established
Company (the Royal Mail Steam Comp
y) is I believe admitted
on all sides; of the New Line we as yet know nothing.
I cannot say that I am aware that the West India Company has
been particularly successful. All that the Treasury propose
is, not that we should select the other Company, but merely
that we should ascertain on what terms they could undertake
the required service. I should be disposed to agree to
their taking that course.
Other documents included in the file
Draft,
Merivale to
Hamilton,
17 December 1858, declining to offer
an opinion until more information was received but agreeing that any
contract be limited to one year because the future population and
prosperity of the colony "are so little within the compass of reasonable
calculation at the present time."