LATER. UNION COMPANY'S TENDER ACCEPTED.

Te Aroha News, Volume III, Issue 120, 19 September 1885, Page 5

LATER. UNION COMPANY'S TENDER ACCEPTED.

Despite the Ministerial assurance given to me this morning that nothing had been definitely arranged regarding the continuance of the San Francisco service, I learn from a reliable source that arrangements of a nature which is believed will be considered satisfactory by the House have been completed between the Union Company and the Government. The basis of the agreement is that the Union Company shall convey the mails between Sydney, Auckland, and Honolulu, the Oceanic Company (represented by Mr Center) carrying out the service between Honolulu and Fan Francisco. Thinking that all negotiations had fallen through, Mr Center was returning to America by the outgoing steamer from Auckland last night, when he was communicated with by a repre- | sentative of the Union Company, and is now, I believe, on his way back to Wellington. It is expected that with the subsidy ! which it is believed New South Wales will contribute, and the postages, the net cost of the Service will be a mere bagatelle, It is understood that the Union Company will be the contractors, theOceanicCompany ! making arrangements with them. Only j two boats will do required to run the service between Honolulu, Auckland, and Sydney. One of these will be the Union Company's new steamer Maraio, 2,700 tons, expected to arrive in the colony in !N ovember, and as the new contract will commence at the end of that month, she will be at once available as one of the steamers. An opportunity will be afforded to Mr Pearce (John Elder and Co.) to supply the other, that firm having previously tendered for the service. The steamers will lie seven days at Honolulu, and about twelve at Sydney, each trip, only mails and passengers being transhipped to the connecting steamer for carriage right through, thus reducing the stoppage at Honolulu to about four hours. Heavy cargo will be forwarded on by the following steamer. In conclusion, I have reason to believe that the Union Company have tendered for the service merely out of a desire to maintain it in the interest of the colony, and not with any great hope of making a profit by it. The arrangement of the matter has been in the hands of the Hon. J. McLean, Chairman, and Mr Jas. Mills, managing director of the Union Company. A Minister informs me that no announcement will be made in the House to-day regarding the San Francisco service.