THE PANAMA ROUTE

Hawke's Bay Herald, Volume 7, Issue 447, 19 December 1863, Page 4

THE PANAMA ROUTE

EXTRACT FBOM LETTER FEOM THE HONOUEABLE ME. CKOSBIE WABD TO THE HONOURABLE ME. DILLON BELL. # # * # • * I have mentioned before, that as soon as the •Government had given us our conge, and politely, ■declined to aid our project, I had a private offer to run a line.of boats from Pauamato New Zealand for £100,000 a-year. I declined this at once as too high. Then they named £80,000. I said that even for this they must go to the Colonies and obtain the assent of New South Wales. I thought this was worth my entering upon, and I went to London. There I reduced their terms to .£70,000, with our guarantee for £55,000, and a •condition that we would have a claim on any subsidy granted by New South Wales to the extent of £15,000 a year to recoup us. At the same time, I enquired at the Post Office and Treasury sufficiently to be satisfied that they would hand us over at least the major part of the postages receivable in this country, which cannot amount to less than £10,000 for New Zealand alone. You see this would reduce the amount guaranteed by New Zealand to £30.000 a year, the Amount of our grant. I then said I would not -object to going further with the negociations, provided they could pi'ove that the vessels were calculated to do what they proposed — namely, ruu the distance from Panama to New Zealand in thirty days ; also, provided the promoters ■would name to me respectable persons as those composing the Company, and ready to undertake the contract. At the same time I employed a man on whom I could thoroughly depend to investigate the character of the ships both from general sources and from the information to be supplied by the promoters of the undertaking. Now these ships are the well-known old general screw steamers, of which <; Argo," " Jason," " Croesus," " Golden Fleece" were best known, and "Queen of the South,' " Hydaspes," "Lady Jocelyn," and others are now the mainstay. They are but auxiliary ships, and having been lately employed on the Calcutta service— of which that part between Southampton and the Cape fairly corresponds with, though inferior to the distance, winds, &c., between Panama | and New Zealand — we had some room to judge from their logs of past voyages what they could do in that proposed. They have not been quite fortunate on their previous services. But if there is a line on which they may be successful it is that now proposed, as all sailors concur in declaring. The first examination was not favorable. They might be considered equal to eight knots per hour, but eight and a half are wanted to do the distance in thirty days. On the other hand, their sailing qualities, their power of carrying coal in the lower hold sufficient for the whole voyage, their excellent accommodation for passengers, &c, &c, were so evident that it was very desirable to get them on the line, if the objections of speed could be overcome. We are now employed in making a careful analysis of the logs of former voyages, to see whether it was from saving coal and trusting to canvas alone that their voyages were lengthened out. Meanwhile I have had no evidence of the personnel of the Company, and I am not quite satisfied. Therefore it is very gratifying to have an alternative tender, which co_h.es from our old friends the Inter- Colonial Company. This Company really stand very well now, are able to buy and build vessels, and seem to me determined to do their work well and thoroughly. Some of their Directors are very good men. However, overtures of amalgamation Vhave come from the Sydney Company — properly "■■oeaking, the Australasian — who we know are Powerful enough. The agents of the latter assure lne,: hat the oiler is iondjide, and that the Panama coi-.t_\ct would help it to perfection. The tender is to 'tun a ten knots' (say a twenty-six days') service i-om Panama to New Zealand for £60,000 a year. She tender was at first privately made through tht Secretary ; it has now been confirmed by the Board, and waits only the approval of a special meeting. Now, you see that deducting £10,000 for postages as before, then £13,000 as the Imperial grant to the existing service, which I have applied to have transferred to Panama (if the contractors consent), only £37,000 is left, and it is very odd if we cannot get from the other Colonies as much as will make up the difference, aud something over. I think on the whole that this is far the best offer ; undoubtedly so, financially. But lam bound to confess a prejudice for the large ships of the first offer, inasmuch as we have reason to expect an immense immigration from the Canadas and States. Well, as the last is in my opinion likely to be the accepted tender, I may say that I propose to put an end altogether to the old contract, —do without all Inter-colonial services, — arrange the Interprovincial services so as to suit the Panama line and dates,— and run the latter through to Sydney, provided New South Wales contributes. Putting down the cost of the Panama service at £37,000. we have against it— Otago and Melbourne, £12,000 ; Cook's Straits and Sydney, £6,000 ; and contribution to Ocean line (at present rates), not less than £15,000. Therefore, supposing no Colony helped, and that we added to the Interprovincial services, so as to cost £20,000, instead of £15,000, we should only pay £9,000, more for our Panama whistle ' than we do for the present one. And as to thie Inter colonial service, it is odd if the commercial advantages to theeastward dont compensate for their loss. The postal service is of course greatly benefited. ■ I think, reserving to our Government the right to fix the date of commencement of this arrangement, out there, I shall be quite safe in concluding the Contract, and I mean to do it. There seems plenty of reason, to. suppose that on the terms, mentioned above we can have Panama and keep up our Australian connections without pecuniary injury. You uuderstand that the New South Wales Agent does nothing ih this matter, so I take the guarantee ou myself. I hope next mail ■will take an official letter giving the results of ■what I can only now put as probabilities— very probable, but still not realised.