COMMONWEALTH MAILS.

Dominion, Volume 1, Issue 43, 14 November 1907, Page 7

COMMONWEALTH MAILS.

NEW CONTRACT. ORIENT COMPANY ABOUT TO SIGN. BT TBLEGEAriI—PBESS ASSOCIATION—COI'TRIBIIT. Melbourne, November 13. It is understood a compromise has been reached with the Orient Company in regard to the mail contract, which will probably bo signed to-morrow.

The hitch which, it would seem, hns now been smoothed over nroso out of tho connection of tho Orient Company with tho "five linos combination" which holds tho butter freights contract in Tasmania. Tho Victorian Government intervened with a demand that this .connection should cease, and Hint there should bo no differentiation between those butter exporters who contract to send all their butter by the lines in tho combination, and thoso who divide their trade with outside companies.

The present contract differs in important respects from that which the Laing Syndicate took up unci failed to carry out. The cash deposit is increased from .£2500 to .£IO,OOO. The first bond required from nil contractors, whether builders or of existing lines, is increased from ,£25,000 to JMO.OOO, and the second bond, which can bo. required if the Government is not sntisfiod with the progress made in the building of vessels for the service, is also increased from ,£25,000 to .£50,000, and permission is given to the new companies who require Government guaranteo for their capital to submit offers containing specific proposals. Tho minimum speed is fixed at 15 knots, but proforencoiis promised, other things boine equal, to tendors providing tho highest speed: ■ Tho employment of coloured crews on vessels is, of course, prohibited, and tho npproved routois via the Suez Canal. Although a tender for any other route may be submitted, tho. obligations of contract end at Adelaide, but vessels nre to call at "such other ports us may be mutually agreed upon." The remaining conditions aro practically tho.same as those of the cnncollsd mail contract. Full conditions wfir'6''tablod to tho London "Times" on Friday night, , and advertisements aro being injertccl in a number of other English nowspnpors, culling attention to the contract.

Tho now sorvico is to be for seven or ten years from February, 150!). Two interesting paragraphs in the contract arc:— The Postmaster-General may at any time during the of tho contract purchase any or all of tho .mniluhips. at valuation, or charter the sumo at a rate of hiro to l;o agreed upon with the contractor, or, failing ngrcemont, by arbitriitimi;,.'and tho'contractor'simll not soil any mailship to any person other than tho Postmaster-General without first giving tho l'ostmastor-Gohoral a reasonable opportunity of/purchasing tho same at tho sum he is willmg'to sell at to such other provided always thrit, if the Postmnster-Genornl exercises tho right to purohaso or chnrtor all mailships employed under the contract, tho contract shall thereupon bo determined, iind such determination shall not-giro tho contractor any claim to compensation.

The Postrnnstor-Genoral reserves to himself a right for sufficient cause to substitute at any timo another route for the rbuto via Suez Cannl. In the event of any substitution of routo by tho Postinastor-Gonoral no additional paymont shall be mado, \mless liy reason of such substituted sorvico tho, oontractor shall sustain a diminution of earnings, or incur expenses exceeding tho expenses' ordinarily incurred in the routo contracted fo>. Failing agreement as to the amount of such expenses, or, alternately, for the determination of tho contract, tho matter shall be determined by arbitration, ■ • ■■ •