Mr. CONNESS. Mr. President, the resolutio under consideration proposes to release the Pacific Mail Steamship Company, who are the contractors with the PostMGenl for carrying the U.S. mails between SanFrancisco and Japan and China by way of Honolulu. from the obligation to touch at Honolulu. The not under which that contract was made was passed in 1865. The 1st proposition to pass such an act, I believe, came from some parties in Boston. It was proposed to carry the mails, by the form orbill that they presented to Congress. in vessels that should not be less than 2,000 tons measurement. After a considerable length of time, those parties abandoned the project, and the Pacific Mail Steamship Company took it up. It will be remembered that they are the parties who are engaged in carrying the U.S. mails and transporting merchandise and pas sengers between NewYork and Aspinwall, and Panama and SanFrancisco. Under the act that was passed, competition was invited for the performance of the service from SanFrancisco to China; and it was provided that a subsidy should be granted by the Government, not to exceed $500,000 annually, but that the PostMGenl should adver tise for bids for the service and give the contract to the lowest responsible bidder. In process 'of time, those advertisements were made, but no bid was received except from the Pacific Mail Steamship Company. The act, however, providing for it had been amended so as to require the construction of steaniships, in which to carry the mails and to perform this service, of not less than 3,000 tons measurement. The increase of 1,000 tons was made to the ships proposed originally by the act as it passed in 1865. The acific Mail Steamship Company felt their ability to undertake this work; but with their wide experience in the management of sea going steamers, they entered upon calculations before they made their bid, toing into account the distance of ocean to be traversed, the capacity of the ships for cooling themselves or carrying a sufficient supply of coal, and the capacity of the ships for t ie transportation of merchandise and passengers. It may very well be assumed that they would not enter upon building larger vessels, owing to the rent cost of constructing them, than the actuaF necessities of this great commercial project demanded with a view of assuring its entire success; but the calculations that they made were of such a character as to convince them that success in the great and new project of grasping the trade of the East Indies, and connecting it in the most direct manner with our own country could not be successfully made or had in vessels of a less ca aeity than 4,000 tons. n that condition of affairs they consulted various parties, their friends in and out of Congress, as to whether they would be held, it' they made the contract, to make the step ping required in the act as passed at Honolulu. The general answers and relies that they received were, that if it could be shown at any time that the success of this great commercial roject would be in any manner compromised by the stoppage at Honolulu, Congress Would readily release them from that art of the service. With that assurance, an determined to make the project a great success for the character of the nation and for their own character as men entering upon a great and new service, they engaged in building ships of the greater capacity. 2 of those ships are being constructed, one by the celebrated builder, Mr. Webb, at NewYork, and another by Steers. They are to cost $1,000,000 each. It is in tended to put 4 such ships on the line, but at the end of the war it was found impossible to collect material for such a character of ships, of seasoned condition and quality, and therefore only 2 of the ships have been contracted for; the other 2 are to follow those. In the mean time the company have prepared for service vessels exceeding 3 t lousaud tons in burden from the newest vessels in possession of the company. The steamship s Colorado and Golden Gate, recently plying et weenSan Francisco and Panama, are being taken into dock one of them now double planked and fitted for the new service throughout; so that they may be able to begin the service as required by the contract, on the 1st day of January, 1867. Upon making this application for release from stopping at the SandwichIslands, vari 0us gentlemen of this country, particularly residents at Boston, in Massachusetts, have felt, considering the interests that they have in that country, that it would not be entircl just to American interests at the SandwichIslands to grant. this release. They have presented the case to many persons, and among others, to myself. I wish to say here that the whole question involved was very carefully considered by the committee before we under took this measure. The question of the main tenance of American interests, political, commercial, and social, at the SandwichIslands, lconcede freely to be one of great consequence. No person, perhaps, feels a.greater interest in it than I do. The people ot no State in the Union can feel a greaterinterest in it than the people I in part represent here the people of ahfornia. We are in close and almost imme diate neighborhood with the SandwichIslands. Our trade is large with the SandwichIslands. But, sir, the maintenance of American influence at the SandwichIslands does not in any manner depend upon forcing this company or continuing to require them to make the stop page required in the contract at those islands. On the contrary, the maintenance of that influence is already, by other steps taken, fully assured. Until within the past year there was in the whole Pacific ocean, to take care of American commercial interests, including the SandwichIslands, from the north to the south, but 5 vessels of war, and those, in the main, of the most indifferent class; 2 of them being sniling sloops of war. Within ayear, and since the release of our blockading squadrons, that entire matter has been changed, and the pay cifics uadron today is one of the largest squad rons belonging to the Government. It embraces one of our. 1st class double turreted monitors, another single turreted monitor, the steamship Vanderbilt, and like ships of the highest capacity for war uses. In addition to that, by a special order, in compliance with a request made by the State Dept, I will say here, at my own instance, 4 months ago, the SecyNavy has designated one of our men of war to be stationed permanently hereafter at the SandwichIslands, and the officer to take command of that ship is now on his way to the Pacific. Thus, sir, so far as the maintenance of American political power and influence at the SandwichIslandsis concerned, the matter is assured beyond peradventure. The only question remaining is the importance of immediate steam communication between SanFrancisco and Honolulu. I have already said that no people feel perhaps so great an interest in that question as the people of California; but we also feel that it is vital to us, as it is to the entire commercial interests of the whole country, that nothing shall be done to mar the prospects of the mighty project of intercqnmunication and commercial control by Americans in the East. Indies, which has been so well begun. Now, sir, shall we not release this company from stopping at the SandwichIslands? If we do not, the round trip from SanFrancisco to China will be lengthened from 8 to ten days; and thus we shall lose in the great international race in which we are now engaged with the other commercial nations of the world. In addition to that, if we shall refuse to release them, there is another difficulty in the case, and I will state it briefly. It was found to be necessary for the complete success of this great commercial enterprise to build vessels of the class that I have described. They cannot, as was subsequently found, enter the harbor of Honolulu. They cannot go over the bar before that town. I have been asked, in reply, why did they build such ships? As I have said, the project and the scheme that we have under taken required the establishment of just such a line as they have begun, and the fact that they have begun upon the scale that they have is the very highest compliment to the gentlemen engaged in it. The 4 ships that they are to build, in place of costing, as they might have cost, half a million dollars each, are to cost $4,000,000. But if we should refuse to release them from stopping at the SandwichIslands, they would now, at this time, be comelled to turn the 2 great ships that they have built oif from that trade, and to order the building of 2 of a less capacity. This I do not state as a fact to be questioned, but as a fact that will certainly follow. The service to China must be performed as required by the act, in vessels of not less than 3,000 tons burden, but they will not be to any considerable amount in excess of that tonna e. TOreduce, then, the capacity of the great ships that are to do this work, that is to revolutionize this mighty trade, that is to give America preeminence in the new markets of the world, or, if you please, the old markets of the world, but new markets to us, would, it seems to me, be a very narrow policy. I regret very much that the gentlemen to whom I have referred have seen fit to crsist in their opposition to this measure. have allowed it to reQain here from day to day since the committee have reported it, expecting that they would see that the true interest of the SandwichIslands consists in developing the rent empire of trade that the East India ocean turnishes to us; that commercial communication with them, rapid steam communication, would follow as a matter of course; and that they should not urge this incidental matter of interest in the way of so great and mighty a pro'ect. Vhen the ComPostOffices took this subject up for consideration it was referred to the PostMGenl for his views on the subject. Those views have been presented. They are before us in an elaborate report from the committee. I will not take it the time and attention of the Senate by reaing from it; but it is shown, as stated by the PostMGenl, that when he recommended, in his annual report of 1864, that a subsidy be granted to acompany to carry the mails between SanFrancisco and China, the question ofstopping at the SandwichIslands never entered into his consideration; that his idea was to patronize American steamships by authorizing them to carry the mails, and thus secure a new empire of trade for his country. Therefore, that being the great object for which the line was established, should you release them from stopping at the SandwichIslands, you do not thereby cheapen their service; but, on the contrary, we should not refuse, in my judgment, the passage of this act and the release asked for. The question of the voyages between SanFrancisco and China; the question of the ocean, its currents, the winds to be encountered, and the passages to be taken, were comparatively unknown by us. Further and most thorough examination into those questions and considerations which are of the 1st importance have been made, and the result is spread before Senators in the report of the postoffice Committee of this be y. It shows clearly that to make this line what we should all wish it to be, a great success, the most rapid passages must be made; and this rapidity should be secured from the start of the line. Nothing should occur from the beginning to destroy the pres tige of its success. Indeed, if we release them from this sto)page from the very 1st trips that the ships sha make they will beat the time that is now made on the other route from China to London. The shortest time now between london and HongKong by the European routes is 55 days; that is, by way of Gibraltar and Suczy by way of Marseilles it is 47 days. But by this means we shall make the connection between China and NewYork in 43 or 44 days, and perhaps in 41 days. I do not wish, unless it should become necessary, and there shall be further discussion on the subject, to occupy the time of the Senate longer. I wish to say simply, in conclusion of the remarks that I submit now, that no commercial project of equal magnitude with this has ever yet been undertaken by the Government of the Republic; and I hope that nothing will be refused to this company who have engaged in its performance upon so grand and magnificent a scale. As to the question of securm communication between the SandwichIslands and California, as I have said, that will follow as a.matter of course; and should we be compelled to grant a small subsidy in addition for the performance of that service hereafter, the money of the Treasury can be engaged in no better office than that. Gentlemen have suggested, in conversation with me, that the subsidy now provided for this company should be reduced if they are to be released from stopping at the SandwichIslands; but it will be remembered that that cannot be done with any propriety. Releasing the company from stopping at the SandwichIslands is simply to make their trips more rapid, to make speed an object; so that the highest rate of speed will then be attempted; the most costly s lips will then be put upon the line. The company never would have made a bid for the service at less than the amount stipulated by the act of Congress. The fact that they were the only bidders shows that clearly and conclusively, and the magnitude upon which and experience with which they have entered upon this great service conclusively shows that they are prepared in the most liberal mannerto meet the exigencies of the case. I hope, therefore, that there will be no opposition to the passage of this resolution.