'FRISCO MAIL ARRANGEMENTS.

Manawatu Standard, Volume IV, Issue 150, 23 May 1884, Page 2

'FRISCO MAIL ARRANGEMENTS.

As some interest is fell, just now m reg-aid to the 'Frisco Mail contract especially m view of the Premier's remarks at Auckland, and the projected fortnightly direct service, some information regarding the present position of the coutract may uot be unacceptable. The contract between the pacific Mail Company and the Governments of New Zealand and New South Wales expires m. the ordinary course m December, 1885. The Now South Wales Government, however, reserve power to terminate the contract m December next by giving three months' notice should the United States Government neglect to contribute a specified share of the subsidy. No grant has yet been made by the American authorities, and, according to the latest advices received from San Francisco, the pros peels of their doing so appear doubtfnl, to say the least. So far as we (Post) can gather, whether a subsidy is given by the United States or not, New Zealand has no power similar to New South Wales of terminating the contract, but, on the other hand, it is believed, could compel the contractors to continue the service on payment ot the New Zealand share of the subsidy only, even should New South Wales exercise her power of withdrawal at the end of the present year. It is hardly considered likely, however, m well -informed circles that the latter colony will withdraw. Her share of the .subsidy is only £18,000 odd, a large amount of which would be recouped by postages, and the fact of Sydney being the terminal port of the service gives it the advantage of a local expenditure of probably £50,000 annually.