FEDERAL MAIL CONTRACT.

Taranaki Daily News, Volume L, Issue 61, 19 November 1907, Page 3

FEDERAL MAIL CONTRACT.

London, .November 17. Jhe Royal Mail Company aimounccß that some time ago it notified the Orient Company of its intention to terminate the amalgamation agreement with the Orient, a*j the Royal .Mail Company desired in future to transact all business connected with its own steamers. The Royal -Mail has offered, if the Commonwealth will agree to make separate contracts with the Orient and Royal Mail Companies, each for onehalf of the service, to build a number of large new nteamers and thereby give the Commonwealth a four-weekly expedited service, alternating with the Orient's propped service.

I lie Shipping Oazette officially denies the n.'u-|M|icr statement that the P. and 0. Company is financially assisting the Orient Company in connection with the new mail contract. .Melbourne, November 18.

j Tin- new contract is cordially received I in |>olitical circles. It includes a pro-vi-ion that if the earnings are decreased or the c\|ien>e- increa-ed by reason of ! ('••mni'imvoalth -hipping regulations to I the extent of not le-i than £SOOO j>er • annum, the contractors can determine tbe agreement, unlei-s the subsidy is increased. If an accelerated service is provide! by «nv competing line, the rontva'-t'ir -ball, after Hie fifth year, 1 provide a -crvir-o etpial lo it. The contract come* into operation in February. MMO, to which date the exist--1 ill" contract is extended.

LA I'LST. CABLE NEWS (By Cable.—Press Association.—Copy* right).