The Nelson Evening Mail. WEDNESDAY, OCTOBER 28, 1874.

Nelson Evening Mail, Volume IX, Issue 256, 28 October 1874, Page 2

The Nelson Evening Mail. WEDNESDAY, OCTOBER 28, 1874.

It bas been frequently urped tbat the penalties incurred by Mr Webb for bis failure to carry out tbe San Francisco mail service sbonld he enforced. Upon tbis question Mr Rusßell, io a letter dated 3rd August, bas submitted to the Government bis view of the case, and he certainly gives good reasons why no proceedings should he taken. A little leniency hy the Government in this matter, will probably have a good effect when future arrangements are being made for a service that must one of these days be established, notwithstanding the non-success that bas hitherto attended all the endeavors made to accomplish it. Mr Russeil says: — ««(1.) Wben Mr Webb undertook tbe service, there was reasonable ground for supposing that tbe sssistance of one or more of the Australian Governments would be obtained in favor of the undertaking; and Mr Webb was supported in this view by the assistance given bim in his negotiations by the Ne-?? Zealand Government. Mr Webb did all in his power to secure the cooperation of New South Wales and Victoria, and for several months ran his boats through to those colonies free of cost to tbem. As long as there was a prospect of securing their support he continued the service to New Zealand, at an enormous loss, and only withdrew npon the failure of the Australian negotiations; after which a continuance of the service to New Zealand was Bimply impossible, baying regard to the high price of coal in this colony, and the want of facilities for docking and repairing, his large ships' Here. (2.) The service maintained by Mr Webb was unquestionably a great benefit to the colony. The cost was inconsiderable after deducting tbe amouut which otherwise would have had to be paid for the Suez service. It was also of great benefit by opening up relations with American wool-buyers, and otherwise promoting trade between the colony an 3 America. I believe the direct beneficial trade results to New Zealand were very large, apart from the benefit we derived from the attention directed to New Zealand in America. (3.) The service was maintained by Mr * Webb, during the whole time of its continuance, at ao enormous loss; and from inquiries I have made, I am . satisfied that his money expenditure in New Zealand, in connection witb the service, left a large balance of profit and advantage in favor of the colony, procured at the cost of the contractors. (4.) From what I could ascertain of the probabilities of the success of a lawsuit instituted by the New Zealand Government in America, against Mr Webb, I canuot adviße such a proceoding. (5.) But, further, I think that wbere reasonable efforts are made «o perform a oew, costly, and difficult undertaking, such as that undertaken by Mr Webb, eotailiog as it did heavy I loss upon him, and inflicting no pecuniary loss upon the colony, but conferring distinct advantages, then the enforcement of the penalty for failure under such circumstances is, in tbe general interests of tbe colony, both illiberal and impolitic."