American Subsidy to Frisco Mail Service.

Poverty Bay Standard, Volume I, Issue 197, 31 July 1884, Page 2

American Subsidy to Frisco Mail Service.

QUESTION SHELVED FOB TWELVE MONTHS. [Per Press Association.] Wellington, July 31. By yesterday’s ’Frisco mail information was received that the question of voting a subsidy to the San Francisco mail service had been before Congress, but a hitch had occurred, and now the whole thing is practically shelved for fully twelve months. It appears that there were two parties in the Congress, one of which was in favor of granting the subsidy, and the other, although not altogether opposed to it, was favorable to another system being tried, with the result that the question has been adjourned until April next, when it is believed that a resolution in favor of the subsidy will be carried. Another question in connection with the ’Frisco service is that the contract with New South Wales expires in December next, and that the Colony has to give three months notice of its intention to continue the service. It will be remembered that the New South Wales Government intimated some time ago that unless a subsidy was granted to the service, equal to one third of the amount paid by them and New Zealand, they would decline to continue the agreement. As the time when the subsidy question will be again before Congress is some months after the expiration of the existing contract with New South Wales, that Colony can, if it wishes, secede from the service. It is, however, considered highly improbable that they will withdraw.

The date when the New Zealand contract expires is December, next year.