SAN FRANCISCO MAIL SERVICE.

Lyttelton Times, Volume XLV, Issue 4717, 28 March 1876, Page 3

SAN FRANCISCO MAIL SERVICE.

A lecture on the above subject was delivered in Wellington recently before the Philosophical Society by Dr Grace, The first half of this lecture was to some extent an explanation of the difficulties with w hich the Pacific Company have to contend, and the efforts they are sincerely making to overcome them. The second half of the lecture was devoted to the prospects of the Australian and New Zealand venture in which the Company is engaged. We reprint this portion of the lecture, as it is specially interesting on account of the nature of the support which it shows the Company to be receiving in America, the reasons it gives for the accordance of that support, and the wise measures it proves the Company are taking for securing its continuance. The remarks are as follows :—The effects of the long continued commercial depression in America bai led to the looking up of capital, a general alteration in values, diminution,in the cost of labor, lowering of the price of food, and increasing the number of the unemployed ; therefore, Americans began to perceive that now fields of enterprise must be opened up ; and in answer to that feeling the Pacific Mail Company, urged on by the merchants of the eastern and western States, tendered for this contract. Agents for the Company were employed to travel the States and interview manufacturers, and the most reliable pledges of extensive support were given by the manufacturers, conditionally that an efficient service should be established, and conditionally that freight carrying vessels were constructed and used in the service. The three new ships recently built by the P.M. Co. are a guarantee of their good faith. These vessels cost £150,000 each, and are specially built for the passenger and wool trade. The whole of the main deck from the saloon to the forecastle is open, dry, and ventilated from the sides. The intention is to store the wool there, to collect cheap matting in the China seas, and place it between the layers of bales, to open the hatches on each side when in the tropics, to prevent heating, and eventually to discharge the bales, so as to avoid labour in handling, straight into the cars on tho wharf in San Francisco, and without delay despatch it to its destination in the States. But the enterprise of the Company goes further than this. It is proposed to erect enormous wool-sheds on tho wharf in San Francisco, to store wool consigned for sale free of all charge for a certain time, to retain first-rate wool salesmen and valuers, and to bold regular sales in imitation of the system which obtains in London. By arrangement with the Central and Union Pacific, cheap tickets, both ways for one faro, are to be given to buyers frequenting these sales, and the wool is to be freighted overland at sueh reduced prices as will tempt buyers from the remotest parts of tho States. An arrangement has also been effected with the three lines of steamers sailing from New York, and with the railway company, by which wool can be transmitted through with the mail to England, at such rates in the aggregate as are now charged by steamers from Melbourne. It will be perceived from all this that the ideas of the P.M. Co. are far reaching, and it may naturally be asked, have they the power to give effect to their obj acts ? Their position for this purpose is a commanding one. From tho circumstances of their business and the investment of capital in railway stocks, they hold a control in the management of the Union Pacific. Carriage by water is always cheaper than freight by land. Tho P.M. Co therefore was the great competitor with the railway for the passenger and freight business to the Western States. When this was recognised, a compromise was effected by which

the P.M. Co received five dollars a head fop every passenger by the transcontinental railway, on condition that they agreed to keep up. the passages and freights by sea to an agreed! price. This concession, with the community of interest resulting from the same parties holding stock in each company, places tha contractors in a position to dictate terms for their Australasian freight and passengers, and. the increase of the trade is looked upon as such a certainty, no effort shall be left unmade-, by the railway to make the enterprise o> success. Again, the competition is so keen between the steam linos from New York to, England, that all the companies have come into the arrangement rather than run the risk of being left out in the cold. Regular bullion, rooms have also been provided in each of tha steamers, and an arrangement made with. Wells, Fargo, and Co for the transmission and care of the precious metals from vessel to-. vessel. It may naturally be inquired whate are the prospects of a trade entered into with: such spirit ? The Americans think very highly indeed of the future of this trade. Labour is now so cheap in the Eastern States, when; taken with the price of food and the high, intelligence of the operatives, that already American cottons, on account of their quality and durability, have been selling to advantage) in Birmingham, and the Americans are convinced the prospects of their woollen trad® are better still. The coldness of the American; climate in winter, and the average power of. expenditure of the people, both lead to a veryextensive use of woollen goods, and the Eng-, lish article has fallen into disrepute owing Suits admixture with cotton and the high import, duty. The only thing required to perfect their woollen manufactures is a modicum of our wool, of fixed quality and regular supply. The: price does not matter so much, as they only require one in three for their purposes, and they can buy the local produce at a very low rate. But for some reason that I do note understand they cannot get on without our wool, and they seem to prefer our Sue halfbred New Zjaland wool to the fine merino samples. They say, in explanation, that for a, cold climate they require rough, warm fabrics, and yet for their markets the fabrics must faa durable and close in web. I have seen as beautiful merino wool grown in Ohio, as war ever produced in these waters, but our halfbred wools they do not seem to grow at all, and I believe cannot to advantage. The lata Mr Ralston, of San Francisco, was so convinced of the necessity of this trade for the; development of American industries, that ha seriously proposed to buy the steamers from the P. M. Co,, and start the line himself unassisted by any subsidy. la order fca> explain to you the nature of his views, it wilt be necessary for me to ask you to accompany mo in the direction of Japan and the Okhotsk Sea. There is a largo island called Yessc/, near Yeddo, now being colonised by thei Japanese. The climate is cold and the weather inclement. Tha whole of the trade o£ this Colony is falling into the hands of tha Pacific and Eastern States, and thus thaPacific woollen mills, in which Mr Ealstort was largely interested, are kept busy. Then, several large Russian towns on the Okhotsk." Sea are affording a ready market for their; manufactures, and the railway which is ins progress of construction from St Petersburg; to the coast, promises an enormous inlet Cor American woollen fabrics. Again, there arc; rich silver mines in Tamsk, thirty miles back from the Okhotsk Sea, which have been granted by concession to American capitalists, on condition of the exchange of bullion for Russian roubles. It may not be amiss to remind, you also, that the Americans believe in ther prophecy of President Lincoln, that fifty yearsafter the war there would be 100,000,000 of. people in the United States, and many have, the greatest faith in the reorganisation of that Southern States and the cultivation of tker, soil by white labor. Their calculations of tho; demand for woollen goods are further based on the wealth of the country, as shown by the; great profits of cereal crops and the mining; wealth of the Western States. It is certain they believe in their near future as a manufacturing nation, and the present contract entered into is the result of a systematic effort, to stimulate trade, open up new markets for our raw material converted into their manufactures. It may be interesting to you tolearn what are the views of the contractors' with regard to the passenger traffic. Acareful examination of such ships as tha San Francisco will go far to answer that, question. Their intention is to make the, line more attractive and convenient than, the Suez route, and I am convinced that in; a little time they will succeed in their design. Their great wish is (as far as I could learn it) to run a steamer direct from Sam. Francisco to either Auckland or Wellington, and thence to Sydney. In that way they could make quicker time and with greater certainty than is made by any other route. It has been arranged that the mail trains shall' take only five days in the transit from San Francisco to Now York. Therefore, if nineteen days were allowed fsom New Zealand tot San Francisco, (ample for a direct route), five for rail transit, and ten for the Atlantic, our mails would reach England under 35 days. E know the impression exists that snow blockades on tho railway are very frequent, but careful inquiry convinces me they are very rare, and mast bcoome more infrequent still. On one part of tho line there are 40 consecutive miles of snowsheds. aad as experience demonstrates these are increased, or barriers erected for fending c-fi: tho: drifts. In course of time, as the trade become; established, the Company would contemplate a dragging line, that is, a slower freight line, calling at all intermediate ports, and alternating as much as possible with the mail liae„ Being very much interested in the prospects of our commercial relations with the States, and somewhat anxious about our habitually largo expenditure in mail subsidies, I took ovary opportunity in my power whilst in America ter familiarise myself with the possible outlets for our products, and tho information L have afforded you is the result. Gathered in very many places, collated, dissected, and its pacts compared with each other, I have little doubt that it covers, as with a tattered cloak, tha. views of our Trans-Pacific cousins in regard ton this service. After some few apologetic observations, tho lecturer resumed his seat amid; cheers.