File No. 812.48/2053.

The Secretary of the Navy to the Secretary of State.

Sir: I have the honor to forward herewith, for your information, a copy of a report received from the Commander in Chief of the Pacific Fleet.

Very sincerely yours,

Josephus Daniels.

Admiral Howard to the Secretary of the Navy.

* * * 3. Information has been received by the Commander in Chief that General Iturbide has decided to organize a new steamship company under the Mexican flag, with the steamer Korrigan II, the property of the Boleo Company, a French mining company at Santa Rosalia, and the La Union, property of the Naviera Steamship Company, as the ships of the company; but the success of this venture is considered doubtful because of the various factions controlling Mexican sea ports. * * *

T. B. Howard.