DISCLOSURES.

Dominion, Volume 3, Issue 928, 22 September 1910, Page 5

DISCLOSURES.

OCEANIC COMPANY AND THE MAILS A FAIR FIELD? THE TELEGRAMS MADE PUBLIC. . (By Telegraph.—Press ' Association.) : . .-.'..' Auckland, September .21. , '/During the past few days' negotiations of an important character navo been, proceeding between Mr. Gunson, president of the Auckland Chamber of Commerce, and Mt. Samuels, of the Oceanic Steamship Company, iai San Francisco,' regarding the reported decision of the company to resume the Sydncy-Auckland-San Francisco service at an early date.- -, -._- .''■ Mr. Gunson-;. states; that the fact. that the Chamber of Commerce wa6; in receipt., of a 'letter' from a ; responsible of- 1 ficer in the service of the.Oceanio Company indicating that.it had been, decided, to resume the .old.service' early next year, and the .circumstance-.': that 'the :Chamber was unable to ;geA anything satisfactory from" the' Government' on the question,, led.him to open up direct negotiations with ■■' the. Ooeahio Company in San Francisco, and the.following cables had passed:— ■ Auckland's -..-Cables and 'Frisco's Replies. Cable dated September 16, from .Mr. Gunson to Mr. Sahmels, Oceanic Company, .San Francisco:—"Advice has been received that you.expeot'to resume on or ■about 'January.;.-.We are very desirous of •the' resumption. .Do- you think that' an 'arrangement can-be made- 'to .resume? Telegraph full /piiriiculais;.'and- be;-as prompt as possible." - / ■ ;■•---. -' ■- ■-'.'■ I !-Reply dated- September, 17/ from Mr. .Samuels to.-Mr.,Gunson:—"ln: view- of the-great success of the-Sierra, we- had planned; a resumption, about M-ay, -provided we obtained from' the New' Zealand ■'. Government a -subsidy of .£2OOO stefliaig for a voyage.;/ We -were .about to ; open. negotiations, when /stopped. l by'the announcement of;, the' -New Zealand Gov- ] ernment's contract" with the. Union Com-j pany of; New, Zealand,.;. Ltd. We .■ can be ; reaoy : in ;about eight'-'months'-time: It -will', require an /expenditure of. JE160,000 sterling;'.for a,Renewed -,service assuring. Auckland : a •:seventeeii-days' -run - each way;- three-weekly- sailings."-. ' '.. ">. ■■ .:■ Cable -dated'.- September.l9,/from/'. Mr: Gunson; to Mr.. Samuels:—"My Chainber of Commerce is negotiating with/the New Zealand Government.' .Are we to understand, that. you. will commence runningin eight .months' time if we ; : can -obtain ,£2ooo;f,or a voyage, threeTweekly sailings, eeveri-teeir days each, way between-'Prisco and ;Auckland?'.,Telegraph a- firm offer. 'It is'very important."': ■';'■ '-.'. ...-.':■.:'-■•.. . ■-'■: Reply dated-'September- -20, : from -Mr. Samuels.to Mr. Gunson:—"lt.is desirable to' defer answer: until after - a conference:' with .Sir -James .'Mills i in- the beginning of November abput an arrangement which ;we -think will be. satisfactory; to all con-, cerned" -..:-. -...-' '.':■ "■ ''•'■'.': --'Further cable -dated September:.2o,sent by Mr. : Gunson to ..Mr. Samuel:—"That . will ./'be - too late. -Sir -James /Mills is ■ nei- ' ther,/Prime ,-Minister ' nor' ,PostmasterGeneral here; He does, not 'control, the mail '"service .-.'Of'- this.: Dominion;' : .....'. Suggest for .consideration tha.t"'it would be. mistake :.to.: make a' private -arrange-' .raent with':the,Union .Company. -,Weare very-'dissatisfied jwith'- -their,, proposals.. The vtime is - opportune to /telegraph ; . a: I firm.offer,' as.per your-'telegram: of .Sep-/ tember/17. Do soil possible, and we r will then: strongly urge the New Zealand. Gby-"i eminent. ~Why.;' defer...until November? desires,a.resumption,;.andyour ;.j service is preferred before,others."-..:;,; V Reply received this evening:.by. ; : Mr. Gunson from -Mr.' Samuels:—'Vfhe Prime Minister,: answering, ,'. : oiir.; inquiries...of, August 17, telegraphed- to. U6 on, Augiist .29. that'it'was .not: subsidies for similar services current-.'at the same/time. ;; -Considering all circumstances, we will :de£ej- making, proposal, .until, /after-' the-•beginning:".of. November,"-'/:/-';;';:.■;;;.;.;:;/ ,-; : ;-. :':. : .

Telegrams to andfromSir Joseph .Ward. In addition to"being in~ communication, with ■' the Oceanic' Company at San : Fran.cisco.'.Mr./Guiisbnhas, been carrying'! on. a telegraphic correspondence with Sir Joseph Ward on the subject of the San Francisco'mail;service. "Oh.Tuesday Mr. .Gunson '. telegraphed/Sir!Joseph. Ward' a 6 follows:—"My 'chamber .has, been, since, the,l6th. ihst and/is 'still, in, cable .communication. >with Mr.: Samuels.. Amongst, other, items of information .with' which' we have'been furnishedis .that the. con-, tract "with, the Union Company has stopped the offer, of:.a service from-'Frisco" to Auckland, 17 days each way, at .£2OOO lavoyage, three weekly, sailings." In. view: of an: intimation that, the. Oceanic Com-, pany; can offer us such a service,. to be ready in eight months,.'can you not. seriously entertain the: proposal thus securing for the Dominion what obviously would be an up-to-date 'mail line,; and facilities .for -the, restoration of.,,the American and /tourist' traffic of ,this country.. The Vancouver, service, is verymuch' in the air-as yet; .arid, of Australia's opposition,!, there seems no" ■certainty of securing .New' Zealand's-in-clusion in such. I api satisfied,.from the Oceahio Company's -report, that the.ser--vice, which, they are- now.in a- position to offer is in' ; t he i nterests of: the" whole Dominion,, and one. that, should ..be.ac--cepted," . ,' ; ' ;/ ; '•:';■..'..■■■'.',:,'■ .■!•'■' ■'.■''■ = . This evening. Mr. Gunson received the following telegram,'; from -Sir .Joseph Ward:— (1) I am unable to comply, with your reqaest; (2) No .proposal for a ser- : .vice-was to-hand when the arrangement' 'with' the .'Union .Company ; was made. (3) In any., case, /until I know what, the position of the proposed Vancouver mail service will -be'on:receipt;, by Canada of tenders for it,'l would,not. attempt to settle another ■• service to begin in May next...■• (4), I prefer, if a satisfactory; Van- ! couver. service; cannot be arranged, to; first try and secure.a 'Frisco service.with our own country's, steamers, and, failing. that, 1 then I: would .be willing to negotiate ; for. 'American-owned steamers.... (s)'' :An •Island • service to. Wellington , must', be' considered when arranging for/the,;re-' spective services.:: ./ //, /-/ ' "Unworthy of' Any Administration." "The latest- telegram from Sir Joseph Ward," said 'Mr. Gunson to-night,, "is most unsatisfactory from our ; point'- of view. The Prime Minister seems to. fail to' realise 'the obligation resting upan him-to do the best he-can for the: country, when he states that 'no, proposal for a service was to 'hand when the arrangement with the Union Company was.made." I submit,.that it was-clearly his duty, as, Postmaster-General, to see what could le done in that,connection-before closing;the contract with the Union Company. The last paragraph, too,- is strikingly significant. It indicates that it is the Government's intention to /divert the Pacific mail services' to Wellington, and this is a matter which the Auckland publio will have to seriously consider.":l: allege that the Government,' in this case, have; handed over, our mail.services to one |""nr,Mif —an aotioh whioh, compared with Canada's attitude,upon 'this, subject,,is u.ost reprehensible, and unworthy of any. Administration. ■-■..On.-the one:hand we have Canada calling for-public tenders for- a mail service, and, on the other, we havo our own Government, not only negotiating'secretly with the Union Company, .tut declining to -negotiate -..with othfir viould-be contractors." ,';.., "A Most Important Cablegram." "The Oceanic Company's cablegram: of: September 17," procesded Mr. Gunson,: "is a most important one- It will be notr eil that.in it, they have'given us.very full particulars of the whole-business. Iri the first place, the conversion of the Sierra into an-oil ship has been a great success, and has shown that it is now possible for that. vessel, -and her sister steamers, to conduct a service of which they were hitherto incapable. In view of that fact the ' company had planned, they tell, us, to- resume the servioe in May. That was provided- they could obtain from, our Government an annual subsidy of .£34,000 • for _ a ■_■ threeweekly, 17-day service from.this port to San Francisco. They then , proceed to tell us clearly that they were stopped from proceeding with;their determination by the New Zealand Government's pro-: posed contract with the Union Company,' which, it might be noted in passing, has yet to be ratified by Parliament. I gather from this that the New Zealand. Government did not approaoh the.Oceanio.

Company, but entered into the arrangement with the Union Company, giving that company a monopoly, without seeing what could be done elsewhere. It is quite clear' from the above information' that the Government could have obtained an infinitely better service at a slightly increased cost, for it must be borne in mind that the service, for which it is proposed to pay .£1660 per voyage, is but a four-weekly sailing 22-day service, as against .£2OOO per voyage for a threeweekly 17-day service proposed by tho Oceanic Company, with a much superior class of vessel. What we would like to know, as a commercial body endeavouring to conserve the public interests, is why the Government has not endeavoured to do the best possible, in this matter, when we, as a chamber,' have conclusively proved that it was possible to secure a better, and a relatively cheaper service? There can bo no comparison between the two services, 'for the ono can only be regarded as a freight line, while the' other offered would be an up-to-date mqil and passenger line. Mr.' Cruraon mentioned that he had called a speoial general meeting of the Chamber of Commerce for to-morrow afternoon, when the whole position will be fully discussed, and a decision arrived at as to: what further action should be taken. Personally, he was Of opinion that the matter should be more widely considered than by the Chamber of Commerce, and.that it should'form (the subject of discussion at a public meeting.

. A Retrograde Step, . ; "I am '■ quite satisfied," said' Mr. Gunson in-- conclusion, "that the present proposals with the Union Company are retrograde,. and are not conducive to the interests, of the Dominion, either from a mail standpoint of from the standpoint of the tourist traffic. Another, point interesting -to note. at.the present time is that, if the Oceanic service were resumed, : a considerable impetus would be given, to the New Zealand oil industry, ■ inasmuch as. these vessels ', would use oil fuel, "and storage tanks would be required here. The information now before us furnishes us with another reason why the Govern-ment-Union Company • .proposals. should ;not be ratified by Parliament, and affords' good ground for asking the Government to open up negotiations for a service which "it is Clearly possible to obtain at an early, date."