THE NEW MAIL CONTRACT.

Wairarapa Age, Volume XXX, Issue 8984, 19 November 1907, Page 5

THE NEW MAIL CONTRACT.

AN ANNOUNCEMENT. Received November 18, 7.13 a.m. LONDON. November 17. The Royal Mail Company announces that some time ago it notified the Orient Company of its intention to terminate the agreement with that company as the Royal Mail Company desired to in future transact all business connected with its steamers. The Royal Mail Company offered on the Commonwealth deciding to make separate contracts with the Orient and Royal Mail Companies, each for one-half of the service, to build a number of large new steamers and thereby give the Commonwealth a four-weekly expedited service alternating with the Orient's proposed service. The Shipping Gazette officially denies newspapers' statements that the P. and O. Company is financially assisting the Orient Company in regard to the new mail contract.

CONTRACT CORDIALLY RECEIVED. APPROVED BY POLITICAL CIRCLES. Received November 18, 9.10 a.m. MELBOURNE, November 18. The mail contract has been cordially received, and political circles have approved it. It includes a provision to the effect that if the earnings decreased or the expenses increased by reason of the Commonwealth shipping regulation, to the extent of not less than £5,000 per annum, the contractors can determine the agreement unless the subsidy is increased. If an accelerated service is provided by any competing line, the contractor shall, after the fifth year provide a service equal to it. The contract begins in February, 1910, to which date the existing con tract extends.