MAILS FROM ’FRISCO.

Taranaki Daily News, 20 July 1922, Page 5

MAILS FROM ’FRISCO.

THE SERVICE TO SYDNEY. DETAILS OF NEW CONTRACT. By Tele (Ta ph.—Press Awn.—Copyright. Received July 19, 11.50 p.m. New York, July 19. While the San Francisco offices of the Oceanic Company refused to divulge the exact character of the Post Office’s proposal, which it has accepted, it is learned the terms are that the Poet Office will renew the mail contract for a period not exceeding six months at the former annual contract price of 196,000 dollars, plus a sum at an annual rate of 80,000 dollars for transportation of War Department materials. The War Department formerly paid the Oceanic Company 20,000 dollars annually for transporting mail and other Federal supplies to Government stations along the company’s route. The War Department learned, when the old mail contract lapsed and the company threatened to discontinue its service completely, that it would cost 80,000 dollars to transport by any other company the same materials which the Oceanic Company had been carrying for 20,000. The Post Office Department, on making inquiries, learned that the Canadian Company would transport mails to the same points touched by the Oceanic Company for 100,000 dollars annually, and thus, by offering to let the old contract price for the mail service to stand for half a year, and increasing the War Department’s allowance to the Oceanic Company, with an offer tn submit to Congress the Oceanic Company s demand for double the price for the mail contract, it is felt the Oceanic Company has been met more than half way. Congress will probably ultimately concede the Oceanic Company's demand. —Aus.-N.Z. Cable Assn.