AUSTRALIAN MAIL CONTRACT.

Rangitikei Advocate and Manawatu Argus, Volume XXXI, Issue 8752, 28 February 1907, Page 2

AUSTRALIAN MAIL CONTRACT.

Press Association. —Copyright. Melbourne, February 28. A critical situation lias arisen in connection with the new mail contract. embarrassing the mail syndicate and placing the Federal Government in a quandary. Mr Clark, representative of the syndicate, lias asked the Commonwealth to guarantee a million and a quarter debentures, to bo issued in Loudon. The strenuous opposition which has been shown in London towards the now syndicate lias apparently resulted in inability to secure all the capital required to carry out the scheme _ ami therefore the syndicate must either forfeit £26,000 deposit or secure the Commonwealth guarantee. Government do not wish to see the contract collapse nor do they like pledging the credit of the Commonwealth for such a large sum to help a private corporation nor to fall back on the lines whoso tenders they rejected. A loading member- of the Labor Party says the syndicate has been blocked by a ring and suggests rather than Government should enter a guarantee it should go a step further and embark on a nationalisation scheme and build their own line. It is certain the Labor caucus would not consent to Government giving such a guarantee as an executive act.