THE SAN FRANCISCO SERVICE.

Te Aroha News, Volume III, Issue 121, 26 September 1885, Page 5

THE SAN FRANCISCO SERVICE.

Wellington, September 17. As I advised you yesterday afternoon, the Government are communicating with the New South Wales Government re the San Francisco service and subsidy Just before the half-pact 5 adjournment, the Colonial Treasurer said he was not yet in a position to bring the matter before the House, as he was awaiting some reply ffom Sydney, but the Government desired that honourable members should know how the question stood at present. On Tuesday he would give notice that the House should resolve itself into Committee of the Whole on Friday to consider the question of the San Francißco service, and he did not doubt that on that day he would have a reply from Sydney,

A batch of papers relating to the negotiations were Jaid on the table last night, but merely bear out what I have already wired you. In September the Postmaster General of Sydney telegraphed to Sir Julius Vogel — "My Cabinet will gladly consider the question of contributing I to a San Francisco service terminating here, but are not likely to contribute £7,000 to a service terminating in New Zealand and carried hereby a branch line." On September 10th, Sir J. Vpgel received a letter from the Managing Director of the Union Company, regretting that the Company could not offer to undertake a mail service between Auckland and San Francisco witbin the termsindicated in the resolution of the House, but were willing to negotiate for the performance of the service with a branch service between Auokland and Sydney on the followingbasis:— l. Subsidy to be£3o, ooo per annum ; Company to receive all contributions from other colonies or countries j Government to assist in securing such contributions. 2. Twenty day service for three years to be extended to five years, should the Company be prepared after two years to shorten the voyage to nineteen days. 3. Free of all port charges, including dock charges at Auckland, subject to the following provisions :-(a) Company to be at liberty to employ any of the present boats to open the service, even though not up to contract speed ; (b) Company to be at liberty, if found necessary for docking purposes or for other considerations, to employ a third steamer in the through service, and to extend the voyage to Sydney in lieu of branch service ; (c) provision to made for an earlier termination of the contract should it be found impossible to secure satisfactory contributions from other colonies or states. — I am, &c, James Mills, Managing Director. Vessels proposed for main line : Now s.s. Mararoa, and a vessel equal to the Australia. Also, on the 10th Sir Julius Vog6l received the following communication from John Eder and Co.'s representative :— " Sir,— l hereby offer to convey mails between San Francisco and Auckland once in every four weeks (but without branch service between Auck* land and Australian poit) during the period of three years from date of commencement of service on or about the 18th day of November, ISBS, and to provide for a service between Auckland and San Francisco at leasttwoahipsofthedescription mentioned in the terms and conditions of contract basis of twenty days between San Francisco and Auckland, for a cum cf £40.000 per aanum, and payable by the PostmasterGeneral of New Zealand, in respect to each separate mail, but to be subject to deductions as mentioned in the terms and conditions in respect to each mail not conveyed within contract time ; or between Sydney and San Francisco, for the sum of £30,000 per annum by the same boatp, 1 receiving all mail moneys which I may be able to obtain from the Government of New Souih Wales in addition to ths said sum of £30,000. I Vessels to be employed : Zealandia and Australia.' Then tollows some correspondence with the Postmaster - General of New South Wales. On the 14th Sir Julius Vogel telegraphed to the Sydney PostmasterGeneral: "Service Sydney, Auckland, and 'Frisco, with Sydney terminus', will cost much more than I anticipated. Thought, when last wired you, obtain it for £30,000 ; now, least price seems £40j000, and, if we arrange it, should have to ask you to pay £14,000, and leave us the whole of payments from other colonies. We are not, however, favourable to this arrangement. We prefer another proposal — Sydney, Auckland, Honolulu, there connecting with fine steamers of Speckles Bros., known as the Oceanic Company, which run steamers twice monthly between Honolulu and San Francisco. A representative of the Company is here, making arrangements with the Union Company and Pearce's agent. We are decidedly favourable to this, as it is cheaper, and we think this mail service will be better, as contractors' influence will obtain railway facilities. The cost is £30,000, not to exceed 25 days' service between Sydney and San Francisco, Sydney being the terminus. The boats proceed from there to Auckland, Honolulu, and back. Oceanic [ boats wait at Honolulu and San Francisco 24 hours without demurrage. Cost, £30,000, contractors keeping any payments from America and Honolulu. "We will recommend this to our Parliament if you will contribute £9,000, leaving us the payments from other colonies. Please reply quickly on 15th." No reply has yet come to this communication. Several telegrams which passed between Dr. Campbell, agent for the Pacific Mail Company, and Mr Gray, Seen tary of Postoffices, are appended. " Dr. Campbell asked for time for the Pacific Mail Company to tender under the altered conditions, and offered to cable to New York if dolay were granted. Mr Gray finally replied : "Postmaster - General is unable to promise you any delay. Pacific Mail Company ha? shown no dip position to tender, and there is reason for thinking it is adverse to doing so. Pearce is acting separately. Whole matter must be laid before House." The boat 3 to be used by the Oceanic Company for the mail service between Honolulu and San Francisco will be the Maripora and the Almeda. Wellington, September 18. The Postmaster-General's confidence in the ability of the Government to carry their San Francisco Mail vote, was justified by tho event. Yesterday afternoon, Sir Julius Vogel moved the resolutions of which he had given] notice, as follows :—" That the Government be authorised to contract for a service between Sydney, Auckland, and Honolulu, or Auckland and Honolulu, with efficient provision for the carriage of mails to and from San Francisco, so that the whole time between Auckland and San Francisco shall not exceed 20 days, at a cost to the colony (after computing estimated receipts, if any, from the other colonies) not exceeding £18,0u0; and failing such arrangement being practicable, that the Government be authorised to contract fora service between Auckland and San Francisco, or between Sydney, Auckland, and San Francisco, at the same rate of time at a cost to the colony (after computing estimated receipts, if any, from other colonies) not exceeding £23,000." He explained at length the present position of the service The Union Company had tendered at £30,000, tho Company to receive all contributions irom other colonies, but this would be at a greater cost to the colony than his present proposal, which was only for £18,000. Other tenders had been received, with a terminus at Sydney instead of Auckland, and at a cost of £25,000. He thought the Government could not possibly have accepted those terms without committing a breaoh of faith with the House, and they had then to see what other terms could be . made for the service. They considered that if the terminus was not to be at Auckland they should get as efficient a service as possible »t as low a rate as could be obtained. He Btated that the only course open to ttw Government) after

the failure of negotiations with New South Wales was to ask the House to give them authority to do the beßt they could, after the House rises, to obtain an efficient service not exceeding £18,000. He thought it was not desirable to relinquish this important service at the present time, but the Government were not prepared to recommend higher terms than appeared in the resolution. If the resolutions passed there was almost a certainty that the Government would be able to act under one of the two alternatives proposed in it. Mr Maoandbew said the House had only recently taken a definite course on this question, and he saw no reason why they should ohange their opinion now. He hoped that whatever arrangements were made, New Zealand would be a terminuej if not, they had better do without the service altogether, He would propose a much simpler resolution : " That the Government be authorised to contract for a monthly mail service between Auckland and San Francisco, at a cost to the colony not ux ceeding £30,000 a-year for three years. The length of the voyage not to exceed 20 days." He subsequently withdrew his amendment. In reply to Mr Rolleston, ftir J, Voqbl said the contract would most likely be done by private negotiations. Major Atkinson said the subject was not fully understood. He pointed out that there was a distinct understanding last jear that the San Francisco service was to be con tinued. if it could be continued at about the cost of the amount of the postages. The Treasurer had shown that the cost to the colony would only be the postages collected from the letters. Another reason why he desired to see the service continued would be that it would undoubtedly keep up the rate of speed on the part of the direct steamsrs. He quite agreed with Sir J Vogel that the service would be a practical and satisfactory one. He did not pee much objection to Honolulu being included, although he should have preferred the direct route. After considerable discussion, and two amendments had been disposed of, the Postmaster- General's resolutions were carried. The following is the division list : — Ayes, 29 —Atkinson, Ballance, B. Bradshaw, W. F. Buckland, Cadtnan, Grace, Grey, Harper, Hobbs, W. J. Hurst, Joyce, Lake, Macarthur, J. McKenzie, Mitchelson, Moat, Moss, o'Connor,Peacock,Pyke, Reese, E. Richardson, G. F Richardson, Rolleston, Stout, Trimble, Tole, Vogel, J. B. White. Noes, 25. — Barron, Buchanan, Conolly, Duncan, Fisher, Guinness, Hatch, Hislop Holmes, Iress, Kerr, Lance, Macandrew, M. J. S. Mackenzie, McMillan, Menteath, Montgomery, O'Callaghan, Keid, Ross, Seddon, W. J. Steward, Sutter, J. W. Thomson, Walker. Pairs — Ayes : Russell, Bruce, Wakefield, Cowan, Locke, Samuel, H. Hirst, Dargaville, Smith, Fraser, T. Thompson. Noes: Hursthouse. W. White, Beetnam, Garriok, Brown, Bevan, Johnston, Newman, Wilson, Levestam, Pearson.