AUSTRALIAN ROYAL MAIL COMPANY.

Lyttelton Times, Volume VII, Issue 441, 24 January 1857, Page 5

AUSTRALIAN ROYAL MAIL COMPANY.

(From the Times.) - A meeting was held at Glasgow last week, of the company engaged in the new Australian mail contract. At its first formationjit bore the inappropriate title of the European and Columbian Steam Navigation Company, and' its capital was £410,000. It is now styled the European and Australian Royal Mail Company, and the capital is to be £500,000, with the power to borrow to' the extent of one-fourth. The increase of capital has been deemed expedient, in consequence' of the company having acceded to a request of the Government to provide a steamer to carry the mails between Malta and Marseilles, -while they have also resolved to increase the capacity of the vessels intended for the service between Southampton and Alexandria from 1600 tons and 350 horse power, as originally proposed, to 2,300 tons and 500 horse power. They likewise contemplate having five steamers instead of four to perform the work between Suez' and Sydney. Under these circumstances their ultimate outlay is estimated as follows:— Two steamers, European, 2,380 tone, and Columbian, 2,300 tons ■.. ■.. .. £ 130,000 .One steamer, Oneida, 2,320 tons .. .... 60,000 One steamer, arranging; for with Messrs, J. and (>. Thomson, of 2,860 tons,.builder's measurement, and 650 horse power, Clyde measurement .. .. '.. 86,750 One steamer, arranging for with MessM. Scott and Co., of 2,320 . tons, 500 horse power, Clyde measurement ;.. .. .. 70,000 One steamer, ananging with with Messrs. Lawrence, Hill, and Go ,of 2,320 tons, 500 horse-power, Clyde measurement .. 70,000 One steamer, for service between Malta\and Marseilles, say .. -.. .. 25,000 Expense of refitting three steamers .. .. 20,000 Expense of furnishing three new steamers, say 10,000 Six harges: for coaling at Aden " ... „ •• - 6,000 j?477,750 If the fifth steamer is built for outside service .. 70,000 Supposed amount ... ..^"547,7»0 The contract is for five years, at £185,000 per annum, and the continuous monthly service between Sydney and England is to commence in January next. The outward passage from Suez to Melbourne is to be performed in 39 days, and the Homeward in 35,.under penalties of £50 for a delay of one day, £100 for two days, and a progressive increase of £50 for every additional day; such penalties, however, being limited in the aggregate to the amount of subsidy applicable to the individual voyage. The offer of the Peninsular and Oriental Company was to perform the service for £140,000, but under certain stipulations which were deemed inadmissible. Upon the refusal of their terms the latter company protested that the Government had thrown away £45,000 per annum, since the new company would be unable to maintain the promised speed, and had undertaken the contract only because the extra £45,000 per annum would coyer an amount of fines such as to enable them to- be several days behind time on each voyage, and yet receive more than the Peninsula and Oriental Company had demanded. In reply to these assumptions the new company have addressed a letter to their shareholders, denying

v the right of the Peninsular and Oriental Company to make a charge against their competitors of a deliberate intention to break faith, and^ pointing out that the penalties in question were not assented to until after the Government had been urged to.adopt in preference the usual test hitherto practised of ascertaining the -speed of the vessels to be employed before , admitting them to the service. " Having agreed to them after vain attempts to substitute the speed test for them, the company," it is remarked, " cannot be expected to submit to the latter also." Under all the circumstances, and especially taking into consideration the advantages to be hoped from the line being independent, and, through a part of the route, competitive, there" is reason to believe that the Government have made the best choice in their power. This admission, however, must not be held to affect the argument against the unsoundness of the contract system generally. A strong opinion prevails that if the Government had declared from ' the first that it would leave the ocean conveyance of letters as open to competition as that of "other articles, allowing shipowners to charge whatever the merchants and others might think warranted by their relative speed, fleets both for passengers and mails would have rapidly grown up in proportion to the demand, and the disgrace of all the. delays of the past four or five years would have been Javoided. But it is now too late to revert to the experiment, and some arrangement like that just concluded was unavoidable. The route via the Cape, however, is at present free from contract boats of any kind, and there are experienced persons who predict that, if the Government will but issue a notification that it shall remain so, private en- . terprise will soon achieve results, as far at least as the.passenger traffic is concerned, far more satisfactory than any that have yet been contemplated. •'