Neilson to Ferd. W. Hutchison, January 4, 1871

We publish in this issue the full correspondence in relation to the subsidy placed at the disposal of the King’s cabinet and privy council, for the encouragement of steam communication between this kingdom, New Zealand, and the Australian colonies. Want of space compels us to defer the publication of our comments thereon until next week.

Honolulu, October 24, 1870

Sir: Referring to our conversation of this morning, in which I very fully explained to you the present position of the Australian steamship question, and the perfect understanding that has been arrived at between the North Pacific Transportation Company and William H. Webb, of New York, by which a line of powerful steamers will be put into operation between San Francisco and Australia as soon as the necessary details as to ports of call, coaling stations, &c., can be arranged, to effect which purpose I am at present on my way to the colonies, I now have the honor to submit, in accordance with your excellency’s suggestion, one or two points on which it is requisite I should be informed, prior to my departure, and without which my instructions will not permit me to make definite arrangements in the colonies to provide that Honolulu shall be a permanent port of call for the reception of passengers, cargo, mails, and coal.

In so important an undertaking, involving the expenditure of a large immediate outlay, it is of course essential to my principals that they should know upon what they have to depend before taking action. That being so, may I ask your excellency to be pleased to say if it is understood that the good faith of your government will be considered to be pledged to the paying of the subsidy recently voted by the legislature, so soon as they shall put on a permanent line of steamers, which shall call and remain at Honolulu a sufficient length of time to take on board all the cargo that may be ready for shipment?

I am aware that, under the terms of the law, your excellency cannot definitely promise the subsidy for more than two years. For the reasons which I fully explained to you, it will be obvious that the subsidy from the various governments concerned should all be granted for a similar period. As our contract with the colonies will be for five years, it is, I very respectfully submit, a reasonable proposition that your government should agree to propose and use their influence to carry a measure to extend the subsidy to $25,000 per annum for a further period of three years. It is of course understood that you will be prepared to supply all the accommodation in respect to wharfage dues, lights, &c., which have hitherto been so liberally promised by your government.

The frank and satisfactory verbal explanations which I had with your excellency this morning give me the assurance that His Hawaiian Majesty’s government will soon have to congratulate themselves upon the establishment, on a permanent basis, of a line of first-class steamers, such as have never been seen in this port, and which will speedily create a traffic which will be fruitful of important results to the future of these islands.

By the credentials which I presented to your excellency, you will of course understand that I am acting in this matter in the interests of the North Pacific Transportation Company, and William H. Webb, which are now consolidated.

I have the honor to be, your excellency’s most obedient servant,