At the time the contract was made it was expected that the army in Utah might be engaged in active operations, and hence the necessity of frequent communications between the War Department and that Territory.  The reservation of the power to curtail the service to semimonthly trips itself proves that the parties had in view the contingency of such curtailment “whenever the necessities of the public and the condition of affairs in the Territory of Utah may not require it more frequently.”

Before the Postmaster-General ordered this curtailment he had an interview with the Secretary of War upon the subject, in the course of which the Secretary agreed that a weekly mail to St. Joseph and Salt Lake City was no longer needed for the purposes of the Government—­this, evidently, because the trouble in Utah had ended.

Mr. Hockaday faithfully complied with his contract, and the full compensation was paid, at the rate of $190,000 per annum, up to the 1st July, 1859, and “one month’s extra pay on the amount of service dispensed with,” according to the contract.

Previous to that date, as has been already stated, on the 14th of April, 1859, the Postmaster-General curtailed the service to twice per month, and on the 11th May, 1859, Messrs. Hockaday & Co. assigned the contract to Jones, Russell & Co. for a bonus of $50,000.  Their property connected with the route was to be appraised, which was effected, and they received on this account about $94,000, making the whole amount about $144,000.

There is no doubt that the contractors have sustained considerable loss in the whole transaction.  The amount I shall not pretend to decide, whether $40,000 or $59,576, or any other sum.

It will be for Congress to consider whether the precedent established by this bill will not in effect annul all restrictions contained in the mail contracts enabling the Postmaster-General to reduce or curtail the postal service according to the public exigencies as they may arise.  I have no other solicitude upon the subject.  I am informed that there are many cases in the Post-Office Department depending upon the same principle.

JAMES BUCHANAN.

PROCLAMATION.

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA.

A PROCLAMATION.

Whereas objects of interest to the United Slates require that the Senate should be convened at 12 o’clock on the 4th of March next to receive and act upon such communications as may be made to it on the part of the Executive: 

Now, therefore, I, James Buchanan, President of the United States, have considered it to be my duty to issue this my proclamation, declaring that an extraordinary occasion requires the Senate of the United States to convene for the transaction of business at the Capitol, in the city of Washington, on the 4th day of March next, at 12 o’clock at noon on that day, of which all who shall at that time be entitled to act as members of that body are hereby required to take notice.