THE SAN FRANCISCO SERVICE.

Globe, Volume IV, Issue 364, 12 August 1875, Page 3

THE SAN FRANCISCO SERVICE.

The following report of the speech of Mr Burns, with reference to this service, is taken from an exchange : On the motion of Mr Burns, the House went into committee to consider the resolutions submitted by him, approving of the joint contract made by Sir Daniel Cooper and Mr T. Russell with the Pacific Mail Company for a mail service between this colony and San Francisco, and between New Zealand and the same port, for a term of eight years, and for a speed at the rate of eleven knots, according to route B, and at an annual subsidy of £89,950. The Governor's message, recommending provision to be made for the mail service, having been read by the clerk. Mr Burns desired to say that the House having on several occasions affirmed the desirability of establishing a permanent mail service via San Francisco, and nothing having occurred to indicate a change of feeling on the part of Parliament or of the country, he assumed that the House approved of the policy of maintaining such a service. He explained that Mr Hall, in association with Mr Forbes, entered into two contracts with the preceding Government for the performance of this service, one of which was called the temporary contract, and the other the permanent contract. Messrs Hall and Forbes commenced the execution of the temporary contract, but broke down,and did not attempt to carry out their permanent contract. Since then the temporary service had been carried on by the A. S. N. Co., on the joint account of New South Wales and New Zealand, at a cost of about £104,000 per annum for subsidies. The present Government found that an agreement had been made with the Government of New Zealand for the continuance of the service as a temporary measure, and for the appointment of representatives, to meet in London in February, with full power to accept a contract for an eleven-knot service for eight years, for any sum not exceeding £90,000 per annum Mr Russell represented New Zealand, and Sir Daniel Cooper represented New South Wales, in the negotiations for the permanent contract, Legal proceedings were taken by these gentlemen against Mr Hall and his sureties for the recovery of the penalties incurred by them for their failures, but as yet with but little pecuniary advantage. Judgment had been obtained against Mr Hall, but it had been deemed useless to enforce it. There was not much prospect of money being recovered by legal process, either from Mr Forbes or from Mr Cunningham. Mr Forbes had already lost £40,000 through his transactions with Mr Hall; and all that was to be hoped for from him was a payment by his friends, by way of compromise, to obtain a release for him from his legal liabilities under the two contracts. Mr De Bussche had sequestrated his estate, and they had been informed by Sir Daniel Cooper that they were not to expect a shilling from that quarter. Delays had arisen in arranging for a permanent service from two or three causes. The first difficulty had its origin in Mr Russell insisting upon tenders being invited for services not named in the agreement, and for wishing to close the negotiations in March, which would not have allowed time for Australian tenders to be received, unless they were forwarded by telegraph. The Government advertised for tenders for services in strict accordance with the agreement, but no tenders were sent in owing, as he believed, to an impression which had then got abroad, that the tw6 colonies would not unite in accepting a contract. Sir Daniel Cooper and

Mr Russell next advertised for tenders for three services, viz :—Route A : From Han Francisco to New South Wales and New Zealand alternately direct, and vice versa calling at Honolulu and Kaudavu, &c. Route B : From San Francisco to Sydney direct, and from New Zealand to San Francisco direct, &c. Or route C : From Sydney to Auckland, Honolulu, and San Francisco, and vice versa. The Government endorsed the action of Sir D. Cooper and Mr Russell, when they were informed of the estimates which had been made of the cost of each service. The tenders received were—For route A : German Lloyds, £120.000 ; Macgregor, £106,000 ; American Pacific Mail Co, with Lawrence, Clark, and Co, £120,000. Route B : German Lloyds, £120,000 ; Macgregor, £140,000 ; American Pacific Mail Co, with Lawrence, Clark and Co, £89,950 ; Route C: German Lloyds, £91,000; MacGregor, £104,000; American Pacific Mail Co, with Lawrence, Clark, and Co, £74,950. The Government had accepted a contract for the B service, tendered for by the Pacific Mail Co. for an annual subsidy of £89,950. The service was to be eleven knots per hour, and not less than five vessels of not less than 2500 tons gross register were to be employed in the service, which was to be inaugurated by the first vessel leaving San Francisco for Sydney in November. These were the principal conditions. Mr Elder and Mr Macgregor were at first joint contractors, but in order that a legal difficulty might be overcome they had taken the position of sureties. Sir Daniel Cooper, Mr Russell, Mr Orkney, (of Melbourne), and others entertained no doubt as to the ability of the contractors to perform the service. The contract was com ■ prised within the agreement, but apart from that it was a good one for both colonies, and ought to commend itself to the House. At the inception of the contract the colony would obtain a sum of £6695 from New Zealand under the 7th clause of the agreement, which provided that the two colonies were under certain circumstances to divide the loss of £3OOO advanced to Mr Hall and other special payments on account of the temporary services. The charge upon the colony last year for the San Francisco service was £29,795; but if the House adopted the permanent service the charge would be reduced to a very small sum. The actual charge upon the general revenue of Victoria for the Huez service, for which, a subsidy of £90,000 per- annum was paid by that colony, was only £12,500, and if this colony were to adopt the same bold and independent policy, the cost of the service would be very moderate as compared with the benefits which might be expected to accrue from its establishment.