THE ’FRISCO MAIL SERVICE.

Greymouth Evening Star, Volume XXXI, 16 October 1901, Page 3

THE ’FRISCO MAIL SERVICE.

Negotiation between Government and Spreckles.

(OOE PARLIAMENTARY EBPOiTBE.)

Wellington, This Day.

Correspondence of a recent date relating to Ocean Mail Services has just been presented to Parliament. Mr Dunnett, the New Zealand representative of Mr Spreckles, writing under date of August Bth last, says he is authorised by Mr Spreckles to offer to enter into a five years’ contract for the carriage of New Zealand mails from Auckland to San Francisco for 7,500 dollars (£1,500) per trip of seventeen trips per year. This, he says, is probably about 2,500 dollars more than the present average payments per trip for poundage. The Secretary of the Postal Department replying on August 21st, states that the Government were unable to except the offer, but bad decided to offer a subsidy of £12,000 a year for five years, subject to ratification by Parliament. Mr Dunnett next day wrote stating that as '/he sum offered is less than what was paid for a four-weekly service at a slower rate of speed, He could not submit the offer tp Mr Spreckols; fearing that

it would probably cause him to break off negotiations with New Zealand, and lose a service that is without doubt far ahead of any other in its benefits to the Colony. On September 10th, the Secretary to the Post Office telegraphed to Mr Dennett at Auckland that the Cabinet had decided to recommend Parliament to approve of the payment of £15,000 a year for three years.

On September 13th, Mr Duunett advised that Mr Spreckels had declined the offer.

This closed the negotiations,

[PER PRESS ASSOCIATION —COPYRIGHT.]

Meluouene, Oct 1(5,

Ward has cabled Drake asking whether some arrangement cannot be made whereby New Zealand can be made a party to the P and O and Orient mail contracts, with a view to diverting Now Zealand English mails to the Suez route. The Cabinet will consider the question as soon as the censure vote is disposed of. Received this day, at 9 47 a.m. Brisijank, This Day.

Regarding the statements made in New

Zealand by Spreckic’s representatives, that there is a possibility of extending the ’Frisco mail service to Queensland if the New Zeajand proposals are not accepted, the Premier states he lias received no communication of any kind from Spreckles. Queensland’s arrangement with the Canadian line has still two or three years to run, and Government has no power to complete negotiations with Spreekles, that being a matter -entirely for the Federal Government. Sydney, This Day. The Daily Telegraph, dealing with the trouble between ?Ncw Zealand and Spreckles, says :—“ The Vancouver line presents many attractions for New Zealand, and could make such a formidable appearance as a rival to the ’Frisco line under New Zealand support that the Commonwealth, finding other conditions equal, may yet have to consider whether it shail subsidise a British or foreigngoing line to North America. It is quite possible Spreckles will find it to their interest to ‘ sing smaller ’ both in Australia and New Zealand in order to preserve their right to the present fat American subsidy.”