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Nelson Examiner and New Zealand Chronicle, Volume XXV, Issue 119, 25 September 1866, Page 2

Parkes, bearing date of September 1, 1868, contains, aft an inclosure, a copy of the articles of agreement drawn up by the Government of this colony, with such additions and alterations as the Government of New South Wales have considered necessary. The clause relating to the terminus of the line is as follows : — " That during the continuance of this agreement, the port of Sydney Bhall be the western terminus of the said mail service, to which all the said Company's steamers conveying mails for the Governments of New Zealand and New South "Wales shall come, as their final port of discharge on the voyage from Panama, and from which the said Company's shall I start on the return voyage to Panama, it being the intention of the parties hereto that the mails carried for the New South Wales Government shall at all times be delivered in the port of Sydney by the vessel on board of which they shall be shipped at Panama, and at Panama by the vessel on board of which they shall be shipped at Sydney." The Company who have undertaken the contract, have expressed themselves anxious that Wellington should be the terminus of the trunk line, and that the service to Sydney should be a branch one ; and it was in order to enable the Company to make this arrangement that the patent slip was contracted for at Wellington, so that the large Panama steamers might always be cleaned, and when necessary repaired there. The wear and tear of the extra five days between Wellington and Sydney, the Company have very naturally been anxious to avoid. The unbroken run from Panama to Wellington is the longest and most rapid steam service in the world, and it is easy to see that a great aud desirable end is gained by being able to use smaller but still admirable boats for the latter part of the voyage. Knowing as we do the vast difference between the price of coal in Sydney, and the price which the Company will pay for it at Wellington — a difference which must almost amount to £1 a ton, there must be something very considerable to be gained by making Wellington the final halting-place of the ocean boats to counterbalance this extra expense. The question it appears to us is not one in which the New Zealand Government can now interfere. The contract was taken by the Company, without any special understanding as to which of the two colonies should be the terminus of the trunk line, aud now when the Company proposes to make it at Wellington, it appears to us that the question is simply one of convenience to itself. The colony of New South Wales engaged to pay over their portion of the subsidy, not on the understanding that Sydney should be the terminus of the line, but that her mails should be delivered by the new route within a certain contract time ; and it will certaiuly be a breach of faith should they now attempt to withdraw from an engagement, which should be considered binding, on such a weak plea as that urged. The prize is certainly worth contending for ; for during the past year tho Panama Company has disbursed no less than £98,000 in repairs to their vessels, at the port of Sydney. With the increased number and size of the vessels, it may be expected that a far larger sum than this would for the future find its way into the hands of the inhabitants of Sydney. On Thursday last, in the House of Representatives, .the Honourable John Hall said that the question raised by the Government of NeAv South Wales would not be brought before tho House, and the PostmasterGeneial alto said iliat the Government had no intention of opposing tho claim of New South Wales that Sydney should be made the terminus of the line. The question appears, however, to be one which must be settled by the Company. Should they refuse to make the concession' asked for, and the New South Wales Government are equally firm, there is a chance of this colony having to choose between the payment of the entire subsidy herself— an impossibility under existing circumstances — or of allowing the Panama service to drop altogether.