THE PANAMA MAIL SERVICE.

Southland Times, Issue 1043, 23 October 1868, Page 2

THE PANAMA MAIL SERVICE.

We take the following from the 'Wellington Independent, of the 10th October i— The question whether the Panama mail service is to be continued has, since the arrival of Captains Hall and Blanc, been exciting, some discussion here. The Panama Company have lost heavily by the contract, and would have no objection to cancel it provided that they could secure a quid pro quo for doing so. New South Wales does not at present reap those advantages from the service, postal and commercial, which she anticipated; she would do, and -would get out of the arrangement if she could. The New Zealand Government is hard pressed for money, and disposed to think that the Panama service is a luxury that the colony might dispense with. Under these adverse circumstances there is great danger that one of the most important enterprises which has been undertaken of late .years, and in the success of which this colony is more especially interested, will be abandoned. There is no use in disguising this ugly fact, and the best thing that Wellington can do willhe to 7 look at it boldly in the face. There is *ho doubt that the Panama Company have up to the present time been great losers by the undertaking; there is no doubt that as a mere postal service Sydney has not at present reaped those advantages which she fondly expected from it ; and there is no doubt that New Zealand at the present moment can ill afford the large subsidy which she ;has annually to. contribute. We must, however, protest *nost strongly against any proceedings intended to alter, disturb, or annul the existing contract. As a passenger line the Panama service is

fast becoming what its warmest ""rt^ftWV,'?- , ters led the public to anticipate. Not. ;- are the commercial advantages wold* ' New Zealand ancl Australia enjojr-.fipni^j closer and more speedy communication with South America : and the tJmtipiL States by means of this service, to M underrated. In both those respects, the service promises to be productive of the 1 beneficial results which were predicted from its establishment. As a postal service it is of great benefit to this colony, and every year it will become moire soy New South Wales cannot withdraw from the contract without the assent oi \STew Zealand, and we feel quite sure that neither will willingly consent to giro any compensation to the Company for cancelling a contract which; if they are such a heavy losers under it as they repwsepip they -would gladly cancel, without iffy compensation : «it ail. . Compaajr deserve great credit for the enterpris* they have exhibited in establishing this service in so efficient & manner, but they will show a lamentable want of it if they abandon an undertaking at the very time . there exists every prospect of its proving successful. As for the General u-ovem-ment consenting to cancel the contract, or giving ..compensation- to get this accomplished, the thing is not to be thought of. It would be well if our Chamber of Commerce — if such a body still exists— spoke out on this matter.

I THE COST OF THE PANAMA. MAIL SERVICE. The following memorandum by^tho Hon. John Hall has been enclosed in > letter addressed by tlie HdiL B. W ♦' Stafford to the Government of New South Wales, in which he. requests that. the -subject should be brought under the; notice of the Victorian Gtovewtment:.— , : . I. I think the attention of the Govern* ment of New South Wales should D 6 invited to the subject of the payment made by the colonies not contributing to the cost of the Panama mail service for :the. transmission of their mails by the steamers of this service. The. present payment is twenty shillings per pound on the gross weights of such mails, and includes the cost of transit across the Isthmus of Panama. This rate TO fixed in March, 1867, at the instance of the Government of New South Wales, by whom it was doubtless assumed that, taking as a basis of calculation of the average Weight of the mails, carried pro'vious to that time by the Panama steamers for the non-contracting colonies. this rate of twenty shillings pound would amount to a contribution sonfe^ what adequate to the advantages which these colonies; derive from the service. It will be seen by a return, forwarded herewith, of the weight of the mails during the past six months via Panama to and from the of Victoria, Tasmania, South Australia, and Western Australia, that this anticipation harnot been realised. The total payment by Victoria for mails from that colony to America and the United Kingdom is, according to this return, at the rate of two hundred and sixty-eight (£268) per annum ; and for : mails to Victoria* at the rate of one thousand eight hundred pounds (£1800) per annum; or according to the weight of the last mail received, at therate of one thousand and forty-four pounds (£1044). From Tasmania the total contribution for mails both ways amount 1 to > two. hundred and seventy pounds (£270) |ier annum. . The Queensland contribution t am unable to state, as the mails for that colony are enclosed in those for Sydney* In the case of Victoria it seems probable that the small sumrpayable for the mails from Melbourne is attributable to the fact that newspapers are now excluded, by the 'Melbourne Post Office, from these mails; if so, the rate of charge which was fixed for a gross of letters and newspapers is evidently «no . longer sufficient. Independentlf ofithiß consideration, however, it is, I think, undeniable that , a, total payment of two thousand ppuiids £2^000) per annum is not a reasonable contribution; from jibe colony of Victoria to the. cost of an important and expensive mail service, from which she derives very considerable postal and other advantages, and if this be admitted I think a further effort should be made to place this matter upon a more fair and reasonable footing. Previous negotiations with the Australian Colonies have beeni' principally conducted by the Government of New South Wales, which is probably better informed than this Government can be of the probability of any modification of the present arrangement being attainable, as well as of the steps which it may be advisable to take with a view of bringing about such a result. I shall be glad therefore, if the attention of the New South Wale* Government be called to this question, and the desirability of further negotiation with the Victorian Government be suggested. The present time seems favorable for, this purpose, as the new. Time Table for the Suez Mails appears; to create much dißatisfaction in Victoria, and the advantages of a regular monthly communication via Panama will probably be, more appreciated now than it hitherto has been. Should however, the Victorian Government absolutely refuse to furnish a more adequate contribution, to the cost of the Panama Mail Service than is now made,.it should, I think, be state4_thiit in the opinion of the New Zealand Government, correspondence to or from Victoria should not be carried; by that service at all. ■....--..