THE AUSTRALIAN MAIL CONTRACT.

Mataura Ensign, 28 February 1907, Page 2

THE AUSTRALIAN MAIL CONTRACT.

THK S\NI)ICATK ASKS LOJi A GUAJiANTFIC. A I'l-XTLJAIi i'OSITION. NATIONAL LINK OK STF.UI KUS SLGGKSTKI). y>i ru;cT].-H: tki.kgi.ach cci'vitujiir. I HI! lINITI.--1 1-ItESS ASSOCIATION. lieci-ived Lob. 28, !).5t a.m. MKI.BOfJKNL, l.'eb. 2S. A critical situation has arisen in connection with the new . mail contract, oiiibarassing the mail syndicate and placing the Kedcral Government in a quandary. Mr Clarke, representative of the .syndicate, has asked the Commonwealth to guarantee a million and a quarter debentures, lo lie issued in London. The strenuous opposition which has been shown in London towards tin; new syndicate was apparently the result of the syndicate being unable to secure all the capital required to cairv out the scheme ; therefore the syndicate must either forfeit, the £25,(100 deposit or secure the Commonweal Hi guarantee. The (.lovernnii.nl does not wish to see the contract, collapse, nor does it like pledging- the credit of the Commonwealth for such a large sum to help n private corporation, nor to fall back on the lines whose tenders it rejected. The leading member of the Labor party says Ihe syndicate has been blocked by a ring, and sucgosts that rather (hail that the Government should enter into a guarantee they should go n step further and embark on a nationalisation scheme and build (heir own line. Ho is certain the Labor caucus would not consent to the Government -riving a guarantee as an executive act.