THE SAN FRANCISCO MAIL SERVICE.

Nelson Evening Mail, Volume VII, Issue 88, 12 April 1872, Page 2

THE SAN FRANCISCO MAIL SERVICE.

(From the correspondent of the Argus.) Sydney, 20th March. Mr. Webb made hut a short stay in Sydney after his return from Melbourne, and for most of that time he was closeted wiih the directors of the A. S. N. Company arranging with them the terms of the branch line. His proposed original agreement with them was for a steamer to run from Auckland to Sydney and Mel bourne, for which a subsidy of £5000 was to bo granted. Now nothing hut the communication between Auckland and Sydney has to be provided for, which will, of course, be done at les3 cost. It is rumored in Sydney that Victoria will give Mr. Webb £25,000 to run his steamers through from San Francisco to Melbourne, calling at Honolulu and Auckland, reserving to iis-'lf tho right lo allow ihem to call at Sydney. This is in harmony with Mr. Webb's desires, who has all aloug wished his vessels to abandon the New Zealand coast service, and to make at least one great port ia Australia. He would bave preferred also calling at. Sydney, for the sake of the great saving in coal, as well as for the freight, but as he could not get the subsidy lie wanted here he was willing to take it from Melbourne. It was necessary for him to get a subsidy from at least oue of the Australian Governments, in order to press hie claim on the Washington Government. No subsidy will be given by the American Government unless an equal amount is furnished from non-American sources, aud it is considered a great stroke of policy to get English colonies to subsidise tbe American flag. By putting together what he gets from Melbourne, from New Zealaod, and from Honolulu, he will probably make up £50,000, and by getting an equal amount, from Washington be will make £100,000, a subsidy that will enable him to get up a company to take over his boats. The hold on Washington gives him his " pull," and enables him to accept from New Zealand less than he has hitherto asked. The Victorian subsidy will, therefore, be a relief to the New Zealand taxpayers, and the local company that dops the ioter-provinciai service wiil be glad to get rid of the competition of Mr. Webb's boats. By employing the A. S. N. Company for tbe Sydney branch line Mr. Webb also buys off their competition. But, in truth these were out of the field. They are sore with their past losses ; they have learnt that their present boats are not large enough for the service, and they will not purchase new ones without the certainty of a subsidy. Sir James Martin has steadily refused to encourage them, his geueral protectionist instincts having set him against any development of commerce. He would rather give a bounty to have the wool woven here than pay a subsidy to a steam company to take ifc away to America. Under a different Ministry, the patronage given to the direct line would have been very different. It has been ascertained that suitable steamers are to be obtained from England that could do the direct run comfortably io 28 days, and a close analysis of the expenditure shows that a subsidy of £45,000 for five years would be required to justify placing these boats on the line. If Mr. Parkes should get into power, he would probably do something to develop the direct line.