THE FEDERAL MAIL CONTRACT

Rangitikei Advocate and Manawatu Argus, Volume XXXI, Issue 8757, 6 March 1907, Page 2

THE FEDERAL MAIL CONTRACT

Per Press Association —Copyright. Loxdom, March 5.

The Times attributes the ill success ; of the mail syndicate's efforts, firstly ; to the \ high rate of interest which ; nowadays obtains on debentures offering much better security than the new niail service : secondly, to the dubious nature of the scheme. When it came to be closely examined not all the influence of Sutherland and others would have shut off supplies of capital had serious business men thought well of the scheme on its merits. Melbouhnb, March 5. The State Cabinet has knocked on the head Mr Bent's proposal to guarantee the mail syndicate. The Government took the viow that if a Government guarantee had been offered when tenders were called a much more advantageous offer would have been forthcoming,' and it was too late, apart from unfairness to: other tenderers, to step in at this, stage with a guarantee..' . I Melbourne, March 6. j Mr Clarke has assured Mr Deakin that the mail syndicate will proceed I with the contract.

Payment for Mails.

A long standing dispute between the Oceanic Company, and- the Postal Department has been settled, and tho arreak will be paid to the Company, which in future will bo paid the Federal rate of 2s per pound for mails to New Zealand, and the Postal Union rate of 3s Td for mails beyond New Zealand. The arrangement covers a period frppi the date , of the transfer of the Post Office to , the Federal Government. ■•'••*