THE Grey River Argus. PUBLISHED DAILY. SATURDAY, JUNE 29, 1872.

Grey River Argus, Volume XII, Issue 1223, 29 June 1872, Page 2

THE Grey River Argus. PUBLISHED DAILY. SATURDAY, JUNE 29, 1872.

The last mail from San Francisco brought us news that the United States Senate had refused to subsidise the Webb line of steamers, connecting California, Australia, and New Zealand, and consequently, America, as a whole, with tho Australasian group. By the arrival of the Rangitotp, as will be seen in another column, the " Duffy- Vogel contract," as it was termed in Victoria, whereby that Colony would pay some £27,000 out of £50,000, to which New Zealand ia liable, has been utterly repudiated by the new Ministry ; flatter ourselves as we may, there is no doubt that in such repudiation they will be supported by the Legislature of that Colony. It was stated originally, when exception was taken to the high subsidy granted, that that alone would not pay Webb and Co., unless they received assurance of a similar kind from the Californian, or, rather, the United States Government, and under such circumstances it is not at all improbable that a collapse will take place. As to the lately irregular mails/ we have been inclined to make all due allowance for them, though they are becoming a little beyond ordinary forbearance. Whilst, however, these gloomy prospects are shown at the extreme enda of the line as at present run, something' cheering conies from Sydney of Jate. The members of the Government of New South Wales have seen the error of their waya in refusing to make arrangements for a transpacific service, and very recently one of their journals, the Herald, remarked that Victoria's failnre or refusaLjKonW— l~ ll ie i t _XK>xux»L~****y~> — xfieTtTis no. doubt "TnaT; when one gate of this description shuts another opens, and it is quite within the power of the New Zealand authorities to re-open negociations with Sydney in case of Victoria withdrawing as she has threatened. Whether anything satisfactory can be arranged remains to be seen, but it seems very doubtful that anything will be agreed on on what we may term the late basis. The value of the route is freely acknowledged by even those opposing the present service. It is shorter; it is more exempt from dangers : it has coaling stations in profusion scattered along the passage ; and, indeed, nothing can be needed to prove its effectiveness. That accidents have delayed its working right off as smoothly as might have been is admitted, but these are inseparable to all new lines, and have been felt in even a mitigated form in this one. It is not at all likely, should the line be continued, that these would be otber than extraordinary in future, owing to the means of remedy that the contractor has adopted. In spite of all recent delays, we have no doubt that in future mails will be regularly received and delivered, and that the complaints of the past will be no more heard. But — and we regret to say that there is a very serious " but" to the most rosy view that can be taken as to the efficiency of the service — there are other considerations unfortunately arising out of the present position that cannot and ought not to be ignored. With the subsidy originally voted and Mr Macandrew's addition for Port Chalmers services, the total amount for which the Colony is liable is some £50,000 per annum for a monthly mail from and to San Francisco. At the time when this was incurred it was expected that some of the Australian Colonies would join, and relieve the burden in some measure. It was thought a certainty that the Uuited States would too gladly' recognise the value of the connection, and that thoir chief Legislature would vote a subsidy in addition. Other waifs and strays were also with considerable reason calculated on, such as Honolulu and other places ; but it seems that the whole have given way with a crash, and, as matlers are at present, New Zealand is saddled with all the burden. The two chief points, Australia and California, have fairly withdrawn, and however desirable the service may be, we cannotfor a moment suppose that the resources of New Zealand are in such a condition as to justify a load of the kind which is not shared in by other places. The contract was given for ten years, but it has of course been broken a dozen times since then, and the circumstances are such that there need be no trouble in terminating it, if occasion arise. Mr Webb himself has said that unless he obtained a subsidy from . Congress, he could not afford to run the" boats. As that has dropped through, he cannot do so on the Now Zealand subsidy alone, and in such a case the cancellation of the contract would be a relief to all parties concerned. We should regret most exceedingly any such step, but unless Vict >ria comes promptly forward with its fresh proposals, it seems that it will be absolutely necessary. This Colony alone can not afford to pay Buch an enormous sum annually, and must either effect some reconstruction or reorganisation of the service, induce one of the Australian colonies to join in the expense, or give it up altogether. This is, we feel convinced, the view that Parliament, at its meeting, will take j and, well disposed though wa

are, we cannot help thinking that some radical changes are required. We hoped the best, but regret that in a great degree our hopes have not been fulfilled in all respects. The stumbling-block at present is the expense, and this is one of such a serious nature that we fear it cannot be got over.. In a few days the Assembly will meet, when the subject will no doubt meet with the fullest discussion and consideration. i