FEDERAL MAIL CONTRACT

Evening Star, Volume 12869, Issue 12869, 19 July 1906, Page 7

FEDERAL MAIL CONTRACT

EXTENSION TO NEW ZEALAND PROBABLE.

[Special to the Stab.] WELLINGTON, July 19. The 'Post' has an interesting and suggestive summary of the position from particulars to hand from Sydney. No information is obtainable here.. It is as folr lows:—

Australian files to Land to-day contain particulars of the new mail contract entered into by the Commonwealth Governr ment. The contract, which has already been briefly outlined in our cable messages, stipulates for a service between Adelaide and Brindisi for ten years, and will replace the existing Orient contract when it expiies in February, 1908. The price agreed upon for the new feryice is £125,000 per annum, but provision has been made for ah acceleration of twenty-four nours between Brindisi and Adelaide, which will bring to tin company an extra £25,000 to cover expenses so incurred. This price must be compared with that now paid to the Orient Royal Mail Company—namely, £120,000 pei annum for a service of 696 hours, which. is equal to about 3s 8d per mile, as- compared with 3s lOd per mde to be paid for an accelexattion of sixty hours. The steamens under the 636 hours 5 time-table would leave Brindisi, calling en route at Port Said, Colombo, and Fremantle, and would arrive at Adelaide ;n time for Saturday's express, thus" enabling a simultaneous delivery of mails to be made in both Sydney and Melbourne early on Monday, and permitting of replies being sent by the outvard mail of the same week. On the outward journey the steamers will leave Adelaide on Friday. In connection with this improved ocean mail service an improved railway service Is contemplated, avoiding delays which now occur, and ensuring greater expedition in both directions. Provision has been made in the contract for Che acqriaition of steamers to be employed under it by purchase or alternatively 'for their charter if desired. The port of registrv will be with the Commonwealth, and the steamers will fly the Commonwealth flag. In connection with the cost of the Dewservice, it may be as.well to mention that tne payments to be made by Great Britain and other countries will amount to about £35,000 per annum, while on the other hand it is estimated tint the payments made by Australia to Great Britain for mails carried by the P. and 0. for other steamers under contract to the Imperial Government will at the same rates aggregate about £25,000 per annum, leaving a balance in favor of Australia of about £IO,OOO per annim. White labor only will be employed in connection with the carriage of mails. . . . Five tenders were received for the service, and the lowest was accepted—that of Sir James Laing and Sons. The stipulations as to penalties for late arrivals, etc., are more stringent than those under the present contract, and altogether the contract compares moat favorably with that now current. While Mr Deakin was announcing the particulars of the new contract to tie Federal House of Representatives there were a number of interjections, and much information was sought by legislators. " Have they contracted to go to other ports? " asked an mterjector. "There is no contract," replied Mr Deakin ; "I have every hope tiev will proceed not only to Melbourne and Sydney, but also to Brisbane." "Are they going to New Zealand?" was another question. Mr Deakin: "I have seen statements in the Press to that effect, and I am not in. a position to give a contradiction. It will not, however, affect our contract to the slightest degree. The contractors will in no way be relieved from their obligations under our contract. It will be a fortunate thing if the Government can seo their way to join in the service, for it would then become an Australasian one." Mr Deakin also stated that although the service is for mail purposes only, the Government were informed that the cool storage accommodation of the steamers would be about three times as large as that provided by tie steamers at present under contract. There was a strong disposition to make use of cool storage, which deposition might be expected to increase in view of the increase in the speed of tho new service.

From raqumes made by the Sydney 'Daily Telegraph, it appears that the new service is looked upon as a distinct gain for the commercial community. City men are agreed that in regard to the additional tune provided for answering correspondence tho Commonwealth has made a very good bargain, but the fear is expressed that in time of emergency Sydney and Melbourne may be omitted as ports of call, the steamers of the new combination leaving Adelaide direct for New Zealand. It seems to be taken for granted by a section of the importing firms in Sydney that a contract for extension of the service will be entered into by the New Zealand Government.