THE NEW MAIL CONTRACT.

Evening Star, Issue 6726, 7 October 1885, Page 2

THE NEW MAIL CONTRACT.

WELLINGTON, October 7. The ; Galifornian mail contract is now so near its completion that tho PostmasterGeneral considers itsafe to allow the followirigsparticulars tohemade public: — It will be recollected that the House authorised* the Government to enter into a contract for, a service between San Francisco, "" Honolulu, Auckland, *aud Sydney,' the cost of which, after deducting l anticipated contributions, was not to exceed LIB.OOO, with a break at Honolulu, or L.23,000 if there was no break at Honolulu but a through service. After this decision, Sir J. Vogel at once placed himself in communication with the -New South Wales Government,- pointing out that the break at Honolulu afforded the advantage not only of a lessened cost but of including in the contract powerful American - people. After some days the New South Wales Government gave in their adhesion to the plan. It was put to them that they could either pay L 7,000 and allow New Zealand to have all the postal contributions from the other colonies, or pay LIO.OOO and divide those contributions. The latter course was the one which the Government of New South Wales j elected to adopt. It was also agreed, as there would be time to submit the contract to the Postmaster-General of New South Wales, it should be prepared and arranged by the PostmasterGeneral of New Zealand, with a clause in it reserving to the Government of New South Wales the power of raising for resonsideration any point to which they objected. Subsequently the determination to prorogue the Parliament of New South Wales and dissolve the House interposed another difficulty ; but this was met by the Government of New South Wales agreeing to sign a contract conditionally on its ratification by. Parliament, and to make payments under the contract until such ratification or disallowance. In the case of disallowance by the New South Wales Parliament, the Post-master-General of New Zealand has the option to end the contract or to carry it on under re-arranged conditions. Whilst the negotiations with Sydney were going on it occurred to Sir J. Vogel that. it might be worth while telegraphing to the Postmaster-General of the United States, asking for a contribution of L 4,000 to the contract. He was as much surprised as gratified to receive a reply that the sum would be paid " unless Congress forbids." Meanwhile he was in constant communication with the intending contractors. Another great difficulty which has baen 'elt throughout was of communicating with Mr Pearce with a view to decide whether or not his vessels should be included in the contract. . There were two proposals before the Postmaster-General, but in either case it was understood that the Union Steam Ship Company would be the principal contractors, and that the connection at Honolulu should be made with the boats of Messrs Spreckles and Co. (the Oceanic Steam Shipping Company). The alternatives were these : Whether the two vessels between Sydney and Honolulu should be Mr Pearce's two vessels (the Australia and Zealandia), or whether the Union Company's boat (the Mararoa) and one furnished by the Oceanic Company should be substituted. Even now this point is not finally settled, as the matter is left open to Mr Pearce until the end of this week. It is only right to say that the Union Company have throughout shown themselves anxious to afford Mr Pearce, as an absent man, a full opportunity of taking a share in the contract. It should also be mentioned that there have been no indications of any other party or parties wishing to take up the service.

The contract, as now framed, provides that four boats shall be in use—two between San Francisco and Honolulu and two between Honululu, Auckland, and Sydney. The contract time is to be twenty-five days between Sydney and San Francisco, and twenty days between Auckland and San Francisco. The last service was at first for twenty-seven and twenty-two days repectively, and for the last year twenty-six and twenty-one days, bo that the new service, notwithstanding that it is broken at Honolulu, will be a day quicker. The penalties and bonuses are the same as before, only that the bonuses are limited to thirtysix hours in any one trip. There are adequate provisions for the detention of vessels for mails, and one that for the first thirty-six hours of such detention no demurrage shall be payable. There are also provisions made for duly loading and unloading of mails, cargo, and passengers, and in most other respects the contract runs upon the same lines as those of the existing one. The payment is to be L 30,000, less two-thirds of the L4.0Q0 that the United States Government are to contribute. New South Wales is to pay LIO.OOO of the amount, less one-third of the United States contribution, and New Zealand is to pay L 20.000, also less one-third of that contribution. In other words, the 14,000 is to be divided equally between the New Zealand and New South Wales Governments and the contractors. The dtd action of the third of the L 4,000 will make tin r.et payments of New South Wales and New Zealand respectively a little under L 9.000 each. There will have to be deducted the postages received from the other colonies (estimated to amount to L 6,000, or L 3.000 from each of the two colonies), leaving the net payment of a little under Llfl.QOO lor New Zealand and a little under L6.CXK) from New South Wales. The payment for New Zealand will be under what the House authorised. The estimate of receipts just given may almost be absolutely counted on, with a probability that the postages of the other colonies will continually increase j and if, as it is likely, the new service will be supplemented by such arrangements as will make it the quickest route to and from Japan and China, a material increase may be expected, These calculations do not take into account the postages that New Zealand and New South Wales will each receive in its own colony and London. The amounts New Zealand will receive will leave a considerable profit on the service. As far as Zealand is concerned the service canmot fail to be very valuable as a postal one. It will be so quick that it must necessarily command a considerable share of the mails, and there is little doubt that after adding the cost of the coastal service and all other expenses the return to New Zealand will be greatly in excess of all payments. The Union Steam Ship Company as far as regards Australia and New Zealand, and tho Oceanic Company as far as regards Honolulu and San Francisco, represent that they are determined to use every effort to push .the service and to extend its usefulness both as a passenger and as a cargo service.