THE VANCOUVER MAIL SERVICE.

Wanganui Chronicle, Volume XLIX, Issue 12631, 19 October 1905, Page 5

THE VANCOUVER MAIL SERVICE.

United Press Association. —Copyright

Received October 18, 11.2 p.m

MELBOURNE, October 18

In the Housa, Mr Chapman moved the extension of the Vancouver mail contract to July 31st, 1906, with a proviso that if neither party gives not less than three months' notice of termination prior to the latter date, the contract continue until July 31st, 1907; the amount of subsidy payable to the Commonwealth to be an annual rate cf £23,8(33 from May to the end of July, and the rate ot £26,626 from August, the difference between the two amounts being the Commonwealth proportion of the totai increase, £6000. It was stated by the New Zealand Postmaster-General recently that the Government was willing to pay a subsidy of £20,000 if the Vancouver steamers called there instead of at Brisbane, and the Company was willing in that case to (reduce the Commonwealth subsidy to £20,000 for ten years. From a purely postal point of view the Commonwealth was paying about £23,000 more than it cost to send mails at poundage nates. It was to a large extent a trade subsidy. Unfortunately trade between Canada and Australia was decreasing, and under the new contract there would be no improvement in speed and no change except an inareased subsidy. From a postal point of view- the line was of very little value, but as.an " all red" route there naturally was sentiment in favour of retaining the keeping up of intercommunication with other parts of the Empire. The trade value proved disappointing, but with larger steamers, 'better facilities, and higher speed, a great development might take place.

Mir Watson thought in view of the falling off in trad© it was very doubtful whether tine service should be oontinued. The present subsidy was practical ly equal to a £ for £ subsidy on the value of our exports to Canada. The matter called for serious investigation.

Messrs Knox and J. Cook urged that tlhe Government make efforts to increase trade with. Canada.

The motion was adopted on the voices.