'FRISCO MAIL CONTRACT

Dominion, Volume 7, Issue 2134, 28 April 1914, Page 6

'FRISCO MAIL CONTRACT

SOME FURTHER DETAILS. As announced somo time ago, an agreement has been come to between the Postmaster-General (Hon. R. H Rhodes) and tho Union Steam Ship Company, for tho renewal of tho San Francisco mail contract between Wellington and San Francisco for a period of five years. The contract has not yet been signed, but it is expected that it will bo shortly. It is a four-weekly service, and tho payment of the subsidy is debited in equal portions' to tho lost and Telegraph Department, and Department of Industries and Commerce Tho reason why tho contract was not renewed somo months ago was owing to a desire on tho part of tho Industries and Commerco Department to obtain somo concession in freights on dairy produce. Seeing a big opening for our butter in Western America, tho merchants bavo naturally; been keen to get the best terms. What was wanted in particular was a flat rate for tho coastwise carriage of all butter to the port of shipment (in this caso Wellington), hut whilst this would put tho product of every factory in the country on a level, tho Union Steam Ship Company could not see its way to grant that concession. Part, however, of what was foreshadowed by Mr. Massey at Auckland recently is "tho reduction in tho freight rate on butter between Wellington and San Francisco by id. per lb. for two years, with the further reduction of Jd. after two years. For the last three years of the contract this will mean a reduction of $d. per lb. Further, the Union Company will vary the freight rate in the saino manner in connection with the Vancouver steamers, though the contract in that case has not yet terminated. Tho new contract will also provide for the employment of two modern steamers of guaranteed speed and cargo capacity. Before tho live years torni of the contract has expired, it is anticipated that the Panama Canal will have effectually opened tho door for our dairy produce to the populous eastern cities of tho United States.