THE MAIL SERVICE.

Grey River Argus, 21 July 1922, Page 8

THE MAIL SERVICE.

TERMS OF RENEWAL. NEW YORK, July 19. AA’hilc the San Francisco offices of the Oceanic Company I:: ■-<- refused to divulge the exact character of the United States’ Post Office’s proposal which it has accepted, it is learned that the terms (an approximation of which was cabled on July 4th) are that the Post Office will renew the main contract for a period not exceeding six months at the former annual contract price of 196,000 dollars, plus a sum at an annual rate of 80,000 dollars, for the tr ansportation of War Department materials. Tho AVar Department formerly paid the Oceanic Company 20,000 dollars annually for transporting mail and other Federal supplies to Government stations along the Company’s route. The AVar Department learned, when the old mail contract lapsed, and the Company were threatening to discontinue its service completely, that it would cost 80,000 dollars 1u transport by any other company and the same materials which the Oceanic Company has been carrying for 20,000 dolars. Tho Post Office Department, on making enquiries, learned that a Canadian Company would transport the mails to the same points touched by the Oceanic Company for 100,000 dollars annually. Thus, by offering to let the old contr: ct price for the mail service stand for half a year, and by increasing the AVar Department’s allowance to the Oceanic Company’s demand for double price for the main contract, it is felt the Oceanic Company has been met more than half way. Congress will probably ultimately concede the Oceanic Company’s demand.