THE SAN FRANCISCO MAIL SERVICE.

Daily Telegraph (Napier), Issue 4455, 7 November 1885, Page 2

THE SAN FRANCISCO MAIL SERVICE.

NEW AIIIIAXCiEMIHfTS. In yesterday's Herald wo published a telegram from Sydney, which stated that it was oxpected an arrangement would bo arrived at hv which the Australia and Zealandia would run a separate service from Sydney to Sun Francisco, calling only at Honolulu en route. In view of tho fact that Now South Wales is bound to tho new contract recently made, until Parliament. moots, the information contained in tho telegram referred to could only bu received with caution. Yesterday, however, further telegrams wero received setting fit rest the question. Tho first was from Mossrs Gilchrist, Watt and Co., formerly agents for tho Pacific Mail Company, and representatives of Mr Pcarce. of England, to Messrs Brown, Campbell and Co., which stated that they wero to announce the Australia to leavo Sydney on tho Ist December next for (inn Francisco, without calling at this port. Tho other telegram was from tho headquarters of the Union Company to the manager hercf to tho following effect:—" In

the advertisement of the 'Frisco service insert as leaving Sydney, the Marnroa and Alamoda in place of tho Australia and Zealandia, and amend tho rost of tho advertisement accordingly." In our advertisement columns it, will bo seen that offeot has been given to both tho above telegrams. That this strange action on tho part of tho owners of tho Australia and Zealandia will be received with surprise will not bo questioned, for it was thoroughly T understood that Mr Pcarce was quite agreeable to join with tho Union Company in a now service, and had given his consont, but it is evident that somo influence has been brought to bear to induco him to withdraw his boats from the joint contract mado between New Zealand nnd New South Wales, and no doubt tho better oargo trade to the Australian colonies from San Francisco has been one of the main inducements. Notwithstanding this sudden break in the arrangements the Union- Company intend to carry on tho servioo alono, and, as will be seen, they have alivsady rearranged tho service, so that tho Mnraroa will leave Sydney on the 2nd of December as the first boat of the ncw.servico, calling and leaving bore on tho Bth for Honolulu. Sho is to be followed by tho Alamoda, of tho Oceanic line, which will leave San Francisco and come on right through here and Sydney, so as to be in time to take up the sorvice from Syduoy on tho sth January next. Both tho boats selected by tho Union Company are first-class and now vessels, fitted with all the latest improvements, suoh as electric lig-ht, etc., and in the mattes of speed are fully up to all the requirements of the service. statement kk Tns service. Wo havo pleasuro in publishing tho following authoritativo statement relating to the San Francisco service, and tho complications which havo arisen in Sydney: — " Before Parliament met, the Postmaster General was in communication with the Pacific Company, and that Corporation gavo no reason to supposo that it was inclined to continue the servico at anything liko tho rate which tho Government wero prepared to recommend. Subsequently, when Mr' Center camo down on behalf of Messrs Spreckles Brothers and the Oceanio Company, he confirmed the impression as to tho views of the Pacific Company, since tho company wore awaro of tho purpose of his visit to New Zealand, and had allowed the Oceanic Company to inspect the books relating to tho New Zealand and Australian I sorvice.

"The history of the notion np to tho House rising was made public in Hansard, and need not bo repeated further than to' say that the process of oalling for tenders ■ having proved abortive, the PostmasterGeneral was left to deal with tho thrfiQ parties in tho field inclined to undertake the service. These wero tho Union Company, tho Oceanio Company, and Mr-Pearcc, through his attornoy. Mr Poarcewastho owner of two of tho boats running under tho Pacific Company's contract. The nature of the arrangemont entered into wes to constitute the Union Company tho principal contractors. In making a subcontract with tho Oceanic Company on tho ono sido, and with Mr Pcarce on tho other, the Union Company has anxiously striven to give him every opportunity of participating in the service, either by chartering hi*— _ boats or by running them on his' own aoy - count. Naturally, however, as MrPfcarce could not bo definitely bound, tho Union Company and Mr Center, on behalf of the Ocoanic Company, mado arrangements for supplying boats in caso Mr Pcarce declined to join. :

" Negotiations onsued between Mr Pearco and the Union Company, but at one timo it seemed that a conclusion had been arrived at. It socras, however, that tho negotiations fell through, and now the Union Company and tho Oceanic Oompany aro left to perform tho contract, while Mr Poarce ia announced to comtemplato an opposition servico from Sydney, provided ho can be assured of a subsidy from tho Go- ; vernment of Now South Wales. "Wo do not know on what basis ho . grounds his hopes of getting tho. subsidy. The Government of New South Wales havo concurred in tho arrangements the New. [ Zealand Government havo mado, and havo provisionally oxecutcd tho contract, which binds them tc> its terms until Parliament has had tho opportunity of ratifying or rejeetirc* it. The Postmaster-General of tho United States, too, has become a party to tho contract by promising to this sorvice a subsidy. "Tho liability of tho Government of New Zealand is well within tho amount authorised by tho House, with the deduction to which it will be entitled, and " tho liability of New South Walos is very small; in short Now South Wales nnd Now Zealand will get very officiont services at a cost quite trifling compared with what thoy have hitherto paid. It appears, therefore, that there is no reason to fear that tho decision of the Government of Now South Wales will be upset by Parliament, and it is quite certain Mr Pearce cannot offer abetter sorvice. Ho will, it is supposed, running on his own account, nnd not,on that of the Pacific Company, so that it will bo without those moans of affording facilities for the uso of the railways for mail purposes that a jioworful United States company aro able to give. In fact our service will be tho recognised United States Service, as well as that of tho colonies of NcwZoalaudandAustralia.V—N.Z. Herald.