MAIL CONTRACTS.

Gisborne Times, Volume XIX, Issue 1652, 19 January 1906, Page 2

MAIL CONTRACTS.

OPINION OF CHAIRMAN OF ORIENTAL LINE. By telegraph, Press Ass'n, Copyright Received 11.41 p.m., Jan. 18. Sydney, Jan. 18. Beioro the Royal Commission of En>.iC :j quiry into mail subsidies, Mr Kenneth AndersoD, chairman of tbe Orient Lidp, said there wes an impression (hat the mail contact wa3 to make weight, and that tbe subsidy was all found money, whereas tbo contract was first 'and laßt a determining factor in the cost, and all without regard to economic or commercial considerations. While cargo steamer cost about f 9 per ton in building, a mail steamer cost neatly f4O The contract conditions precluded competition on level terms with cargo boats. In recent years there had been constant full freights, while the mail contract conditions becamE more exacting. The Commonwealth bad reason for congratulation that for 17 years since 1888 it had secured the mail service at a figure representing about half the actual cost. He suggested this as a reason for sympathetic consideration for future contractors. They " had no objection to Government running their own chips. If they decided to take such a step he was prepared to talk bueiuess to them". Having to employ white labor necessitated an additional cost of about JE9OOO yearly. The advantages of employing white labor were only sentimental. Beyond sentiment be was sorry to say there was not much he koew of, whilst on the other side of account there wes a debit figure. Mr Anderson'denied the existenoe of a shipping viog. The origin of the legend—for it was no more than a legend—was "the supposed cxißtenoe in London for many years past of a freights conference, Its , objects were to prevent violent fluctuations of freights and to keep the trade . jj adequately and regularly., supplied with ; 8 tonnage. Its functions were no more in the interests of owners than of shippers and the trade generally, without whoso concurrence it could not continue. , .