THE 'FRISCO SERVICE.

Dominion, Volume 4, Issue 949, 17 October 1910, Page 9

THE 'FRISCO SERVICE.

. DETAILS OF-THE NEGOTIATIONS.' SOME INTERESTING PARTICULARS. When nsk'ert recently, to publish the cor- . .respohdenoa . wliich-.had . passed with . tlie Oceanio,Steamship. Company :in reference to the rc : esiablishnient of tho San Fran-jißco-Aucklaiul mail ; servjee; the; Prime '•Minister''stated that the; communications Were private/: He has now received .the : permission, of the.Oceanic!Compaiiy, Ltd., . : to make it '.public; and the letters were , laid.on, the,,table of, the; House last week." At '.the;end :of last May Sir Joseph; Ward :cibled; -to: the' Oceanic - Company: - "New,- .Zealand .Government'- not- satisfied with'tra'iishipping ... services at .' . Papeete; Hopq.' you' can, arrange ' for: through ser-: i-yicei via;' Papeete."' ;In the .course of' a .lengthy reply,'llr.F.S. Samuels, assistant ; president of the Oceanic" Steamship Com- . ' pany, said- i.that<;this f .was impracticable under present . conditions. Among the , leasons;.given were:—(l) That the. Mari- : posa; ! w6'uld-"'be'' too small,' and the - larger vessels would be too costly. ; - (2) The im- • ; practicability of making . a contract with the United States; Government under the S resent■'■subsidy ■ law: for' this'operation oft, ce which would consist of one American and ;pne'ißritish ~ship every twenty-eight ...'days.;-,'(3);,The. nbspiute. uncertainty . rLtending', the ..prospects." for a new Subsi ■ 'Bill,';in yiew of • the coming! Congressional: elections; (4)'.Under-the present laws, the United-,'States could, only ■ give ■ a subsidy to an American liue, and would not enter into. ii contract for a 1 subsidy to a 'company' that did not: employ American' •vessels exclusively. : (5) The company was ..'ander.--.'contracts ;to continue: thepresent service.-to, Papeete, (li) Unless the New "Zealand GbvernirientYwas. ready to carry.' '-'the-.entire: subsidy burden; and: place in' ■ operation- a line r'of British , vessels be-. ; tween.' New Zealand; arid'the United States there; was nothing ..better- 'than to , continiio the Papeoto service until an Amen-

. can line could he established'."over, the . , Dld ; rpute. : >'lt,was,highly desirable:from an/American-point of view, that'relations ;; should, bp re-established,^.;and.:,.it. might v: jet .he" possible to' dp so/ wittr '£ suitable ::" typs of s'oainship burning oil under the old basis of two dollars a mile. If Con- . ;.: sress .failed' to; act in the" matter;'of estab;Jishiiig:a higher'.rate-of subsidy, but until - ;; the, subsidy question was 'settled • one way or tho'.other- there was 'too' much uncer- :: v tainty to. permit -American capital undertaking .the Mrvice. If.such a Bfirvice was : . i-j; nndertalceh .on .the basis of-, two dollars a:Mle, fiielJ'-New Zealand would' certaMy .becaUed-./upon; to. pay a ,higher subsidy thin "tliat :wnich was paid fo the Oceanic - ilf- u tho'United States subsidy'■!was increased'to' four' d'ol.".••.•■ilars a mile, about tho-same subsidy that . - the .New - Zealand- ;Goveniment paid" tothe . ■ Oceajiici would be ; ample. / (7) A' through I ; V- service' via' .Tahiti ; <»uld only-, exist- till! • a new .lino was established over tho old '<.;: .- route, for; the reason: that the. hew line would' require all the subsidy Now Zea- : 3and "could'.'afford to pay, ■ and such now -liuo.Hyould-jr^ui^ ;; via Papeete be-withdrawn. ! ..; .:' ' - j ". In'reply.to'this letler/Sir Joseph Ward -: eta ted. that the Government; was": consider-' ing what burden. Nfcw; Zenlah'di war-pre-pared: to; bear " in .re-establishing •: direct ;v :vrnailiservice relations;. '. ;/After/this.' Company had - its' : rniiiiigs;;t.dn-'Angust i 3 the'general. malinger of the company .(Mr. ;P. iHoldsworth), wrote to Sir ; Joseph Ward in continuancb of a conversation-that-day,.: that Sir. • James llills had,been.endeavouring to'.ar- . range a" through." service in conjunction .with Messrs* -.Spreckels;,* of: San Francisco, . "but it was found 'impossible: The: conn .estimates Jf. ;. the- ; cost -of operating; a ,through' service, Zealandser'vice,; ;bf> ,£ 'estimated that-' 1; two - steaine W'would;-, cqycr-'V-runmi g 5 . expenses ■: leayingia'margin.lfor depreciatibh' . -ana .oVerhdids.'.-.\<r;This- '-was . not*-e'ncourag : . iug.- vbut,-if a contract; for threo yoars was ; ■entered';.'.\ilito ;.compahy : V, ;avould, - en-., . dcavour- to build up a trade. -K ■ - AVhen Cabinet had * considered, this let-ter,'Sir-'Joseph Ward replied .offering .a subsidy •; of ; '«£20,000 -forgone year for ,? a ,^=;, monthly:: service of -'thWtSoiT voyages' 1 each v,'.way,-',to .f-be'i.'earriod^fout^ibyi'twd,-suitable ; . steamers,. u thp; depart from Auckland arid 'arrive'"at - Wellington;; with", right '-of .going ":-onT:to',Sydney.-'.':ljVlr;'.Holds- . - v. worth; replied regretting: thb . ~ mentivas uiiablei.to . ■ pahy was, willing. to, riceep £t he sum named ior one:year, provided that-if at tho ex- ■' - pirationof ' the. Vancouver ser- . vice;;calls;at AucKland 'an option'is.given" of extending, te'rm. /'.of ' Sail - i'ranciscb' service for , two additional "years, subject .. ;. v ■ to Satisfying . the Government that the. service.is MiAiJ:properly;performed..- . » On August,. 3 ;Mr. Holdswbrth "wrote to .the Postmaster-General : that he gathered 'that:■ thore.i .was.^a. necesaiy; to. include Auckland'as a,.port . of. call in ; the. pro-■ ' posed: faaii; Francisco!running; and, in or--der. to.giye extra .time, the. Government - v wiiild; 1 - allb\v, "tho to "be hvelve •"' trips, per annum, :. instead? 'of;.thirteen'.' iho eonbession in'time , was 28 (lays .per 'annum, ,or 14 days per steamer, i'he . extra time in; steaming between Welling:ton and Auckland, and, timp.,in,;. port in ■ . Auckland, would absorb the ; fourteen" days .. per/annum,- and there 'would be ■ loss of :., tune-ithrough 1 .striking i Sundays in-:' port. The. company agreed;.to, tho c'all at'Aucls'and> .but if tha, ; yancj>uver.-,.service ..was. Established,, 1 ; would ■. ask -to '• liavo "'one .„ Zealand port of' 'call : only for' . ; 4h6, ,Friscb~ service;* 'Eeplviig to : this, Sir said that: in -tlie" oveii.t of - the '.Vancouver service, being established, and v - calling at Auckland both waj*s, the Qovr,. - ermnent would, if : - the service -was : satisfactory.exteiid ,it; for two years, with Wellington as'iriward. ; ahd-,;outward port and the other , terms offered by 7', 10 Government were accepted by, the .Umoii:;.Company. - Va- *v:- i s•• -• • ■On August 27 the Spreckels Com- -. paay : cabled. Irom' Trisco asking if the arrangement with, tho Union ; Company : wouid' preveiit the Government subsidis"smg -a • 'seventeen ■ days' : ser-■'-Honolulu: to Auckland, ' com- . . •mencing,about n£at -May. i , :ln ; . reply; Sir . ,Joseph-.said the . GoverniDent bould not ,:iave vtwbi.subsidies - for " similar, services current at once.'.