NEW MAIL SERVICE.

Dominion, Volume 4, Issue 1029, 19 January 1911, Page 2

NEW MAIL SERVICE.

r,4 — • - SIR JAMES MILLS INTERVIEWED. THE TARIFF QUESTION. STORY OF THE . NEGOTIATIONS. Some remarks of Sir James Mills, managing director of the ..Union- Steam ~ Ship Company, on the Vancouver mail contract are interesting.- Sir James returned from" Australia'!:y- ; th? Ulimaroa--yesterday, and v.t-.S interviewed by a Dojiix[on : representative. ■ . . Speaking of the recently-signed contract ' for a mail service between New Zealand ; and Canada, which the company has ' secured, Sir James declared that the sul>. ject had already teen pretty well exhausted in print. . ~ The Contract. "As you know," he said, "in conso ' queuce of repeated representations from • Sir Joseph "Ward, the Government of Canada some time ago intimated that > when the time came to consider a- re- . newal of the contract it would favour a. call at.New Zealand. Consequently, when ' tenders wero called by the Government , of- Canada,, returnable 011 November X • last, it was stipulated that tenderers should give prices for various alternative routes—via BAsbans to "Sydney, via Auck- ' laud to Sydney, and also to include Melbourne. After considerin» the tenders, _ the Canadian Government intimated that, subject to. the approval of the other '• contracting Governments, they would be prepared to accept our offer for the. service via Auckland to Sydney, for a period of five years; the steamers employed..to Ik able to maintain 15 knots at sea',, and to 'deliver . the' mails between Auckland and Vancouver within 19 days. "When the.proposal.was placed the Government.of the Commonwealth,";,' Sir James conttnue'd, "the latter iuti/' mated that it "was not prepared to agree ' to the call at New Zealand until placed' 011 an equality with.'New' Zealand with . regard to preferential tariff arrangements This was how the matter .stood whenl'j jv left Canada two months ago. It was thei>-' .v arranged that nothing further should Be. . done .until I should have an opportunity--' of visiting 'the Commonwealth and "di9»*v. cussing the .matter with the Prims .i Minister, Mr. Fisher, on his return from 7 South Africa." ,H ■ ' The Tariff Difficulty. V "When he saw Mr. Fisher, Sir James found that the Commonwealth took up a J strong attitude on the matter, intimating that while New Zealand enjoyed more far- y onrable tariff arrangements with 1 Canada than Australia did he could not think of £ joining in subsidising a line via Auckland -; to the exclusion of Brisbane and Mel- /.. . bourne; -though if it were possible, to ar-.y. range for Australia to hare the same tariff advantages as Neiv Zealand he would ' have no objection to the call at Auckland. "It is intended.t.o,discuss the question,:;,', of' reciprocal 'tariff arrangements TjS- ' tween Australian and Canada," said ;Sir v James, "when the Prime Ministers nie'et.-V in London at the end of' May n't the Irn- -i perial Conference; but even if satisfac- 0 tory arrangements are then arrived- at they will be subject to -confirmation by. tho respective Parliaments. So that to . wait for this would be to leave, the matter of tlie continuance of the service in a . state of uncertainty. Under the circum- ■ stances the Government of Canada decided to close with the Union Company for a fivo years' contract for a service between Vancouver and Auckland, via Honolulu and Suva, each 28 .days;, reserving the : , right to require the company to .contiiufS'"" on to Sydney, or perhaps to "Melbourne, should the Government of Australia later desire to become a party to the contract Steamers Required. As to the number of steamers required, ■' Sir James said the service between Auckland and Vancouver, each .28 days,, could.,. be so carried 011; but, pending further negotiations. IMween the bf Australia- 1 and Canada the contractors, intended to employ three steamers, and to extend to .Sydney, as hitherto.: The trada of Australia was sufficiently important to demand: this. /■" As the-contract was assured , for a reasonable period, it was the intention of the • TJnion.' Company, :' in. conjunction ?:with Messrs. Hiiadart,. Parker and Co., to build a new steamer—probably . about 10,000 tons, and able to maintain a speed of 17 knots., . This .vessel -would replace the Zealandia in about a'year,' when the latter would enter the intercolonial trade, for which- she; "fras.; Originally designed. . The Vancouver servico would then be carried on with tho Mnkura, Maraina, and the new steamer. -■ ■ . ■ • The question as to Whether the Vancouyer steamers would run at suitable intervals with the 'Frisco boats was one that had yet to" be "discusied between the company and the Postal Department* but ' it would not be an easy:matter to ar-. range; as the Vancouver service employed: three steamers, while the San Francisco" ' service .at.present only employed two, and it was almost impossible to preserve an interval of exactly , a fortnight' between the sailings from both ends." " " '" : .