THE SAN FRANCISCO CONTRACT.

Feilding Star, Volume III, Issue 86, 3 April 1883, Page 3

THE SAN FRANCISCO CONTRACT.

Witb reference to the San Francisco mail contract, it is learned from Sydney that a notice of motion has been tabled in the New South Wales Parliament condemning the granting of any subsidy to a San Francisco line, Should this be carried, and Jsew Zeabmd left alone to undertake the renewal of the mail contract, it would necessarily iuvolve a spwewhat formidable augmentation of tho cost. At present we nay £32,500, and New South Wales £4.0,000 of the total subsidy of £72.500, but the postage received reduce our net contribution to about £5000. If, however, New South Wales backs out, we shall probably have to add her £40,000 to the cost of the service, and very little hope is entertained of the United States granting any aid this year. It is expected that the Pacific Mail" Company will obtain the renewed contract, and will agree to an accelerated service, which it has been proved their present steamers are quite capable of performing. It is unlikely New Zea- j land, if paying the whole subsidy, will consent to the boats running on to Sydney and so giving New South Wales all the benefits of the service gratuitously. In that case there may be some idea of sending the steamers on to Wellington and Lyttelton. All this, however, is a matter for future arrangement on the definite dpcision of New South Wales being received.