New Zealand Times. (PUBLISHED DAILY.) TUESDAY, OCTOBER 5.

New Zealand Times, Volume XXX, Issue 4537, 5 October 1875, Page 2

New Zealand Times. (PUBLISHED DAILY.) TUESDAY, OCTOBER 5.

The debate in the House of Representatives, if debate it should be called, on the motion by Mr. Reynolds, for approving and ratifying the joint contract entered into on the 23rd July last, by Sir Daniel Cooper and Mr. Thomas Russell, on behalf of the Governments of New South Wales and New Zealand respectively, with the Pacific Mail Steamship Company of New York, for a four weekly service between San Francisco and Sydney, and between New Zealand and San Francisco, was adjourned, to enable Mr. Stafford to prepare certain amendments which he intended to move. These amendments, as we understood from Mr. Stafford’s remarks, did not touch the main question of the general ratification of the contract. They were intended simply to go the length of disapproving' of the New Zealand coastal service, and also of the selection of Kandavau as the Fiji port of call. We confess that we largely sympathise with Mr. Stafford’s proposals. In former articles on this subject we discussed the relative merits of the three several routes submitted, and for which tenders were invited. Of these, route 8., which included the Kandavau fork and the coastal service of New Zealand, was selected as a compromise by the two commissioners, acting for the contracting colonies, in deference to the prejudices and commercial interests of their respective countries. We believe we are correct in stating that a much cheaper service might have been established, had the fork been at Honolulu, dispensing also with our coastal service ; but Sydney merchants wanted to secure the Fiji trade without paying a special subsidy, while political interests in New Zealand were to be conciliated by continuing the coastal route. Hence it happened that a contract was signed, subject to ratification by the Parliaments of New Zealand and Hew South Wales, which exceeded the amount fixed by the General Assembly, but which in other respects apparently ran on all-fours with public feeling here and in Sydney. We say “ apparently,” because it does not do so in reality. There is a very general and deep-rooted feeling in New Zealand that the money spent in subsidising large ocean-going steamers to run the local boats off New Zealand waters might be much better applied, and that feeling is steadily gaining strength. It found expression in the remarks of Mr. Stafford last evening ; and if we do not greatly mistake the temper of the House, it will be embodied in a resolution which must guide the Government in this matter. It is true that Mr. Macandrew declared that ho regarded the service as of advantage for commercial, and not for postal purposes ; but Free Trader as he is, he surely would not advocate applying the taxes of the people towards subsidising an ocean line of steamers for the advantage of a few mercantile houses. This would be establishing a trading monopoly with a vengeance. The San Francisco mail service is to be maintained for postal purposes or not at all. And for a mail service, we cannot help saying that to have the main steamers running along the New Zealand coast, is a wholly unnecessary part of the business. It would enter unduly into competition with local steamboat companies, which are compelled to do without subsidies, and must also pay heavy port and light charges from which the mail steamers are by contract exempt. The risk to large steamers is enormous, and the colony must of course pay in proportion to the risk. Wherefore, it appears to us to be clearly the duty of the House to require a modification of the contract, and proportionate abatement of subsidy, by doing away with the coasting voyage of the ocean steamers. With regard to the Kandavau fork, there may be greater difficulty in arranging it, as New South Wales appears to be bent on maintaining it, and we should be prepared to make some concession to the Sydney Government. But after all, it appears only reasonable that in arranging for a mail service extending over a period of eight years, care should bo taken to select those ports of call, or stages on the main journey, which are most accessible and safe to navigators. And Kandavau —indeed we might add the entire Fiji group—has few points in its favor. Being the more outlying port of the group, it is nearer Sydney, and this is its chief recommendation to the Sydney Government. Moreover, it has been favorably reported

upon by one oc two captains of the A.S.N. Company’s boats. Notwithstanding these recommendations in its favor, we think that safety to life and property require unmistakeably an avoidance of Fiji. Honolulu should be selected as the fork for the double service to Sydney and New Zealand. Insurance and freights would bo lower, and the travelling public would have far greater confidence in the line than if the vessels touched at any Fiji port. And this brings us to another point, namely, that the Kandavau service, as arranged, will infallibly run off the Fiji line the New Zealand steamers already subsidised by the colony. Indeed, a severe check has been given to this trade by requiring the Star of the South to make a round trip of New Zealand ports in connection with each voyage to Levuka, the centre of Fiji trade at present. Wo are certainly within the mark in stating that since the Star of the South began running along the coast in this service, her coastal earnings did not pay anything like working expenses. If this condition were removed, it would be possible for the contracting company to make thirteen or fourteen voyages to Fiji every year, thereby stimulating exchange and developing trade. But it must be very evident that route 8., as accepted by Sir Daniel Cooper and Mr, Thomas Russell, will very soon close this opening trade to New Zealand boats. For the considerations stated, rve think the House, while generally ratifying the contract, should insist upon such modifications as would save a large annual expenditure of money, and give colonial enterprise a fair show in New Zealand and Australian waters.