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THE ATTEMPT TO ENFORCE THE SUBSITUES AGAINST THE LAST CONTRACTORS.

J^ffg ALL^O INSOLVENT.« Tiff /kg, in the. N,S W. Legislative Asrf»"oly> f°r *^c ratification of the San Fr&jcißCO* contract made by Sir Daniel Cooper and Mr. Thomas Russell. Mr. Barnes, Postmaster - General, said that since the breakdown of Messrs. Hall and Forbes, the temporary service had been carried on by the A.S.N. Co., on the ioint account of New South Wales and New Zealand at a cost of about £104,000 per annum for subsidies. The present Government found that an agieement had been made with the late Government for the continuance of the service as* a temporary measure, and for the appointment of representatives, to meet in London in February, with full power to accept a contract for an eleven-knot service for eight years, for any sum not exceeding £90,000 per annum. Mr Russell represented New Zealand and Sir Paniel Cooper represented New South Wales, in the negotiations for the permanent contract. Legal proceedings were taken by these gentleman against Mr Hall and flis sureties for the recovery of the penalties incurred by them for their failures, but as yet with but little pecuniary advantage. Judgment had been obtained against Mr. Hall, but it had been deemed useless to enforce it. There was not much prospect of money being recovered by legal process, either from Mr Forbes or Mr Cunningham. Mr Forbes had already lost £40,000 through his transactions with Mr Hall; and &U that was to be hoped for from him was a payment by hia friend by way of compromise, to obtain a release for him from his legal liabilities under the two contracts. Mr De Bussche • had sequestrated his estate, and they had been informed by Sir Daniel Cooper that they were not to expect a shilling from that quarter. Delays had arisen in arranging for ai permanent service from two or three causes. The first difficulty had its origin in Mr Bussell insisting upon tenders being invited for services not named in the agreement. Sir Daniel Cooper and Mr Bnssell advertised for tenders for three services, viz, :—Route A : From Sa*i F/ancisco to New South Wales and New Zealand alternately direct, and vice versa, calling at Honolulu and Kandavn, &c. Route B : From SaD Francisco to Sydney direct, and from Sew Zealand to San Francisco direct, Ac. Or roate C: From Sydney to Auckland, Honolulu, and San Francisco, and vice versa. The Government endorsed the action of Sir D. Cooper and Mr Russell, when they were informed of the estimates which had been made of the cost of each service. The tenders received were—For route A : German Lloyds, £320.000; Macgregor, £106 000; American Pacific Mail Co, with Lawrence, Clark, and Co, £120,000. Route B : German Lloyds, £120,000 ; Macgregor, £140 000; American Pacific Mail Co., with Lawrence, Clark, and Co., £89,960. Route C- German Lloyd's, £91,000 ; Macgregor, £104,000; American Pacific Mail Co. with with' Lawrence, Clark, and Co., £74,950. The Government had accepted a contract for the B Bervice, tendered for by the Pacific Pacific Co. for an annual subsidy of f99 950. The service was to be for eight years, and the rate of speed was to be eleven knots per hour, and not less than five vessels of not less than 2500 tons gross register were to be employed in the service, which was to be inagurated by the first vessel leavingSanFranciscoforSydneyinNovember The hours within which the service will have, to be performed, including all stoppages, will be- From Sydney to San Francisco, and vice versa, 648 hours ; from Port Chalmers to San Francisco, and vice versa, 722 hours. All subsidies obtained from other countries than Great Britain and her coloniep, or any of the Polynesian Islands, for the conveyance of mails, arc to belong to the contractor if made nnder arrangements approved by the Postmasters General. He thought it was due to Sir 1 aniel Cooper, to whom the colony was "greatly indebted for his patriotic and valuable services, to say that he was in favour of the service via Auckland, and wished theGoveinment to accept the tender for the service by that route for a subsidy of £74,950, but the Government dissented from his opinion, and preferred the forked service at £89,950. Mr Elder and Mr Maegregor were at first joint contractors, bnt in order that a legal difficulty might be overcome they had taken the position of sureties. Sir Daniel Cooper, Mr Russell, Mr Orkney (of Melbourne), and others entertained no doubt as to the ability of the contractors to perform the service. The contract was comprised within the agreement, bnt apart from that it was a good one for both colonies, and ought to commend itself to the House. At the inception of the contract the colony would obtain a sum of £6695 from New Zealand under the 7th clause of the agreement, which provided that the two colonies were nnder ; certain circumstances to divide the loss of £3000 advanced to Mr. Hall and other special payments on account of the temporary services. The charge upon the colony last year for the San Francisco Bervice was £29,795; bnt if the House adopted the: permanent service the charge would be reduced to a very small sum. The actual charge upon the general revenue of Victoria for the Suez service, for which » subsidy of £90,000 per annum was paid by that colony, was only £ 12,500, and if this colony were to adopt the same bold and independent policy, the cost of the service would be very moderate as compared with the benefits' which might be expected to accrue from its establishment. fMr Watson begged to inquire whether the Postmaster-General was aware that the ships of thiß company were old wooden paddlebox steamers. : Mr .Burns only knew what the ships would be required to be by the terms of the agreement. If the steamers famished were not suitable, it was open to the Government to object to them.

Mr Lloyd was very glad to learn that this Tfans-Pacific mail service was about to be carried out in its integrity, and did not doubt but that it was a line which would soon, and tfith great speed, carry all the passengers to Europe, from . these colonies. This was a powerful' company, capable of carrying out whatever they undertook. The ships at their disposal were iron steamships of 2500 tons burthen. The resolutions were carried by 28 to 2.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/AS18750806.2.14.1

Bibliographic details
Ngā taipitopito pukapuka

Auckland Star, Volume VI, Issue 1706, 6 August 1875, Page 3

Word count
Tapeke kupu
1,073

THE ATTEMPT TO ENFORCE THE SUBSITUES AGAINST THE LAST CONTRACTORS. Auckland Star, Volume VI, Issue 1706, 6 August 1875, Page 3

THE ATTEMPT TO ENFORCE THE SUBSITUES AGAINST THE LAST CONTRACTORS. Auckland Star, Volume VI, Issue 1706, 6 August 1875, Page 3

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