ORIENT CONTRACT.

Dominion, Volume 1, Issue 47, 19 November 1907, Page 5

ORIENT CONTRACT.

SOME POINTS. i RESTRICTIVE LEGISLATION AND ITS COST. \ ROYAL MAIL COMPANY. BT TELEGIUrH—M.ES3 ASSOCIATION—COPYMOHT. London, November 17. 1 With regard to tho now mail contrnot with the Commonwealth, tho " Shipping Gazette " officially denies newspaper statements that tho P. and 0. Company is financially assisting the contractors, the Orient Company. Tho Royal Mail Company announces that some timo ago it notified • the Orient Company of its intention to torminato the agreement with that company, as tho Royal Mail Company desired to in future transact all business- connected with its stoaraors. Tho Royal Mail Company offered, on tho Commonwealth deciding to make separate contracts with tho Orient and Royal Mail Companies, oaoh for ono-half of tho servico, to build a numbor of largo new steamers, and thereby givo the Commonwealth a fottrweokly oxpodited servico alternating with the Orient's proposed Bervicd. Melbourne, November 18. The mail contract includes a provision to the effect that if an accelerated service is provided by any competing lino, the contractor shall, after tho fifth year, provide a sorrico equal to it. The contract also provides that if tho earnings are decreased or the oxpenses incroaoed, by reason of Commonwealth shipping regulations, to tho extent of not less than £5000 per annum, tho contractors can determine tho agreement unless tho subsidy is increased. Tho contract begins in February, 1910, to which date tho existing contract oxtends. It has been cordially received, and political circles haro approved it.