THE SAN FRANCISCO MAIL.

Ashburton Guardian, Volume V, Issue 1398, 6 December 1884, Page 2

THE SAN FRANCISCO MAIL.

The following communication has been forwarded by the Press Association: —During the last three months a long battle has been proceeding between New South Wales and New Zealand (regarding the San Francisco mail service, and it is at lengtu settled satisfactorily for New Zealand. The late Government of New Zealand entered into an arrangement for the service, by which they agreed to pay L 31,250 per annum, against L18,?50 paid by New South Wales, although the latter was to have the benefit of the terminus of the line. For a very little more the New Zealand Government could have had the terminus in New Zealand. They not only did not take advantage of such an opportunity, but they consented to New South Wales having a power to withdraw daring the last twelve months of the contract, though New Zealand wais to continue bound. Of course such a provision gave the power to New South Wales to pay what it liked for the year’s service. As the boats were still to continue to run to Sydney it might, however, at least bars been supposed that New South Wales would divide with New Zealand the benefit of any reduction. This, however, they showed no disposition to do. They gave the requisite notice of withdrawal from the contract, intimating the same to the New Zealand PostmasterGeneral, and adding, significantly, that this would not preclude them from considering fresh proposals from the contractors. This was evidently an intention not to lose the service, but to obtain a redaction of the cost. Indeed, the contractors subsequently admitted what amounted to an understanding of this nature. The Government were so annoyed at the manner in which it was proposed to treat New Zealand that they determined that the contractors at least should pay for it. In order to do this they treated the withdrawal of New South Wales as final, and . had recourse to provisions in the Post Office Act, which prohibited steamers under contract to New Zealand from ' carrying the mails of other colonies without its consent. Accordingly when the Postmaster-General of New. South Wales announced later that he had [ arranged with the contractors for a ; redaction of L 7,000, and to rejoin as a ; contractor subject to New Zealand’s con* r sent, the Postmaster-General positively i refused such consent, gave notice of the i clauses in the Post Office Act, and de- - dined to allow the mails of New South 3 Wales to be carried unless a prior engage- * men*- was made with him. He informed 3 the contractors he would not agree to j their arrangements with New South j Wales unless they made a corresponding . reduction of 1.7,003 to New Zealand. 1 The contractors refused to make any 5 allowance whatever to New Zealand, f whereupon the Postmaster-General gave : them formal notice not to carry the New 3 South Wales mails without his consent. - Lengthened negotiations followed, and - resulted at length ia that colony agreeing 5 to pay New Zealand L 7,000 for the car--1 riage of its mail. New Zealand will also ' get the whole k of the amounts from the [ other colonies for the carriage of their 3 mails. The net gain Zealand will . be about L 9,000.