PUBLISHED EVERY WEDNESDAY & SATURDAY. Saturday, September 17, 1881.

Poverty Bay Standard, Volume IX, Issue 979, 17 September 1881, Page 2

PUBLISHED EVERY WEDNESDAY & SATURDAY. Saturday, September 17, 1881.

That the Colony of New Zealand is making rapid strides in the march of progress there is no doubt, but it is a question if she is prepared to enter into competition with existing Companies and establish a direct steam communication with the Home country. The report of a joint Committee of the two Houses, recently laid before Parliament, states that the Colony is so prepared, and recommends that the service be a monthly one, performed by six ships of 4000 tons register, built specially for the New Zealand trade ; of such a draft as would enable them to enter the chief ports of the Colony ; to carry mails, passengers and cargo, and at a seagoing speed of 12 | knots. It is considered that a capital of one million sterling is all that will be required, and the basis of tenders to be a guarantee on the part of the Colony, not exceeding seven years, of a minimum rate of interest of 6 per cent, per annum upon the actual gross cost of the steamers —the net annual earnings of the service to go towards the reduction of the interest; but all earnings over 6 per cent., to belong to the contractor. In support of their report the Committee furnish the following statistics:—l9B direct ships have been

employed during the past year, between New Zealand and the United Kingdom, carrying 5,904 passengers, and 229,199 tons of cargo, the latter being estimated at £8,533,552. Besides these, it is estimated that, in view of the successful application of the meat-freezing process, at least 500 tons of carcases will be shipped monthly. Postal receipts are looked upon as an item of revenue ; and the report jubilates over a statement made by the Managing Director of the Union S.S. Company to the effect that each homeward steamer would take 2000 tons of New Zealand coal ; besides spending £3OOO each trip, during her stay in the Colony. The foregoing is an outline of the Committees’ Report, and we must say it is garnished with some very palatable facts and figures; but we repeat the question : Is the Colony ripe for the undertaking ? We do not refer so much to the financial part of the question, as to the collateral advantages enjoyed by the present ’Frisco service, and which would have to be given up for others that are extremely doubtful. Living midway between the contending parties —Otago and Auckland —for local jealousies are already raised —we can express an opinion with less bias than either of those two termini. Auckland is naturally alarmed at the possibility of being left out in the cold, and the almost certain loss of a large local trade, she

being the only port of call and departure in the Colony for the ’Frisco boats; and the Star piles up the agony of objection in every conceivable form. It is also held that, in moving in this direction, Otago wants to aggrandise itself at the expense of the Colony. This, however, is only a suspicious taunt, inasmuch as the report is silent on the point as to which port the boats are to call at first, and leave last ; while it cannot be tolerated that any one port should have the monopoly. On that score, whenever the scheme is under weigh, it is most probable that a fair alternation of ports would be insisted on. As to the profit and loss of the project, it is a pity that the report did not state something definite with regard to the cost of maintenance of the service, and bring more data forward to show the probability of the net earnings exceeding the 6 per cent, guaranteed, or, in fact if there are likely to be any earnings at all. This, however, is a matter which will be well ventilated before the Colony is committed to an expenditure of £60,000 a year, for seven years. We do not gather from the Report that this service is to be substituted for the ’Frisco line; still, notwithstanding the fact that the latter costs the Colony a very trifling sum, for so remarkably good a service, it is hardly likely that the two will co-exist. If the ’Frisco line is withdrawn then we give up an important trade between New Zealand and the United States, for which a direct line to London would be a poor equivalent. For years New Zealand has been anxious to further develop the commercial interests of the American connection ; while our cousins have shown a liberal spirit in their advances likewise ; indeed, so much so that a correspondent writing by the last mail thence, stated broadly that it was necessary to run a line of vessels direct from New York to New Zealand. Should this be done, it might be held as an argument in favor of the proposed New Zealand line, and the discontinuance of that via ’Frisco. But, independently of these advantages, will those offered by the projected service secure a monopoly of the passenger and carrying trade of the Colony ? We think not. Certainly not in the face of such boats as those of the P. and 0., and Orient Companies, the former of which is putting on another spurt to try conclusions with the latter by sending forth steamers at the rate of three or four a month. This will put the Orient people on their metal, the result of which will, probably, be, that long before New Zealand’s first boat is ready for sea —two years being the time mentioned, from signing the contract—two superior and faster vessels will he arriving in Australia, weekly from Home. Can New Zealand compete against that, is the question ; but it is not likely to be, answered in the affirmative by the present House of Representatives.