THE I.R.M. COMPANY AND THE PANAMA CONTRACT.

New Zealand Herald, Volume I, Issue 111, 22 March 1864, Page 4

THE I.R.M. COMPANY AND THE PANAMA CONTRACT.

Ti:r !nl!..wi;,- 1.-Urr. ii,l(!r,T.M-,l <•. His H.,n,,v th,- ■ liy (:,,.!. Vim- Hall, has l,.Tii mm- ' ti-m.-ly ])..!,.!,■,: t.) ,;> i;,r j.ul■!:r:ili..n ; \V.-lli:i-t-.u, M:.ivl,, lSill. : Si!:, -'I'lif ii. w l'aii:iiu:i iniiinici nri.l,- 1m1u,..-;i :

y\i: \V;mi. ;,> I'l-t-UKI.MiT (Mllrlj] cl' N,-\v /.,:i];il|.|, iiii'l "i f l!»' K.\.-.-iiti\v (.\inM,-il ~n i 1,,. ,„„. juit, : , iiiul tin- Intcr-r(.l..iii.-i! IC'.vnl .11,iil <\.i,ip;my .in tin- ■ i .'tli.T, Imvii!- 11..W i..-inur i.r.tty tully ili:,,-u>sril, 1 1,,- ' J y..ii will ailcw in,' t., !■,;,!;,■ a f,.\ V 1.,.f.,iv , I «niitliiiif -\'.;u- /ra1.,11.1, Jiavin- l',.r thrir «,i,j.rL til- . iMrn-rtintiMl'.-diiic iiiisi|i|pi-flifii>i-iii-i on vaii.iu.-i ]»• >iiit ■*. ! whirli ai.prar t<. in,, lu in tlir mimt uf tlir ! '■ jmiili.-. : ; Tii.> siil.ir.t has 1,,.,.,, in rvn-v jmssiMc

aspect -c,i:ci-ed f.irlv ii: ,,l unfairly, and with , various d.-ree, of tem,,,.;-, amid ;dl wiii'.-h tin- I.K.M. \ Company a.- i:.-ual ( .iu:c> i:i for a full share ot'abu-c, i having, as formerly, uce..pl,-d a cnlraf. which no on.- : else would take -whiNt Ih>- N.Z.S.N. Company and its advocate., .are Imv.iely j-al..us !,.■,,iu.-e they have I i not tin- monopoly ~| tin-" remunerative pail '■<( tin- i .-ervice. and that the iimvmnuer.iiive an.i dilli, ult . pail of it is nni 5.,1..1 v 1,.,t lor p.Tf..rm:iiß-.-hv the ; ,vera!,u~,,l. but still .-jlici.-iit 1.K..M. l'.,m;,any.' j Mr. W.ud <h,.-> i~,t ~..,; clitic i-iii," and I ! catiiioi und.-n-t Mi.l til.' cm-istency of laiidini? him as I having■ eiiiif.-nvil a i ion the 'Cilony, and yet, in' 1 the same pa.L'e. i-.illin.ir him a melnncho'ly blunderer. j Hi.never, lie Ins .-reirrd tli,-Co!..nvso -,'.O, l a bargain i in the said cut,'.,.■t--il,at I d.^ibl'very miichil'"the i . < "mpany ar.- liii, ly to r.-ap advanla-es, at all ade- ; iptat,-to tip'e:i',nuoiis nere-.-arv oiilliy and risk.-, j Could I hav- ii:iliie:i,ed tin- il.-.-:>i.-ii of tin; Direeiois, my advie,. wiild have ho.-n a-.inst acccptin- the ] far IV, .m wi>liii, : _' to .:.;.iiv," New Zealand capitalists ' '■1 .-. -i,:,t a hai-ain, 1 Mi, it til- I.U.M. Company woiiM l'ai-e no to their taking over sbip- ! iilld eonliMc!-- ~:i >-ery i,•.,.,,,uab1e Ltiiis. At all j ..■vents there i> iiMtbin-' to pivvcni the X.'W Zealand j public pai-ticij.atiiej; in ti,,- ..nlerprNe by takiuir up \ ; 5..m,-(,f th,. ii,.w ,!, a iv:, lVr-o;ully, 1 .should be j ; p!.M.-,-l to.-ec part ofthi: proprietary near the scene I i of our operation--, and it w.nild be very .satisfactory i to both pi-pnelors and Directors in Kn-land. JSiit ' if icaiiplidtioiH for shares froai New Zcalanil arc made, 1 think it will not do in future, to talk of "loivi-,, epilalas all evil," " Knirli.-ll capitalists heuelilted at the expene of H,e ..-ol.mists," and similar Uvaiidle, not unfivquently m :1 ,(,. „„. ~, [-.(ciy. I Now, as to the o.iitracl iUelf—ifa I'aaima line l,c j worth bavin- if tin-, be tlie time for it -it is a boon very cheaply obtained. Tie-ie eann-.t he the sli-hte.-t doubt m the mind of any rn.ui cmipelent to jii.lye of the expensive nature of sm-li a service—thai the Colony of New Zealand has made, throu-h their re- i prcMMitative, Mr. NVanl, a v,ry line bargain, and I wi.icli, with Die aid of N.w South Wales and Queens- ! lund, will be dirl cheap en.pared with its postal and | especially its cimnicreial advautap:'s. (In the part of the contractors, determined :is r lc , 11)W they arc to work the lines in a m.,sl liberal spirit — it will demand ..very <.-;i;.il- all Die kie.wleJ-e and skill they jiossess j — lu arrive at a salisf.-flt.ry ic.siilt and a l.rom.ible return for th.- capital invented, liesides, liveye.irsirf ! loci short a period lo develop the resources" of an i absolutely new route, and on this point alone 1 should I have put my veto ~p,,; , it. j ihe aiKdrm.ty i.-.l be apparent ] to .very one, Iber-loie. i will iu.-liiicnliou that- ■ The lour,hips will coM to'sei, ; . ill I'Msl J."J 111,(10(1 j Worl.-inireapi-alabonl .... Mlll|J . C,..ds per annum „;,»,:r.l, ~1 . . ;„ i;U o '; AVa.es,udp,.ve.,.,,,s.,lc,ew, :, per aiiliinil iCjllOO i to say nothing of i-.,l.ihlishmetits, hulks, iiiMirances, jl and wear and I ear. It is no ii-ht ii i;i ;i.-r t., ~1 i11. ,. ! . iiponsueJi an expeiidiiuie as tin's with very doubtful i returns from a traliic y.-t I- be created: Hut the i clamor one bears about tho contract would incline to ] the behel that the 1.1:.M. Company had stumbled ] upon a surlace of which .\jr. ('resbie Ward i liad deprived his 1c!1,,w-0,10ui.-ls. ILihwt, parlici- / pation in this, is within leach oleverv one, as 1 have < already ob.-eived, and if there culd'ho a ix|,r,..eii'ta- ' I live of Xew Zealand at the 1,,,n,i0n Hoard of i c Jhrection so inmli t1,, ; |~-i|. r. lint, let us bear , lo ! <■ more (/ | exelusiveiiess if Ihi, hint 1,,. ,„,( ~e;,,[ on ] a The mo>l ~1,,,,, Kt ., W : p.,i1,,n.,e whole .■■rraim-.-iiicut i v seems to be (1,,, cmiiuunce ~1 ti.e lormer c?,,l,aet, : I, and it is spoken of by some a.- if a cloud were thereby , a to rest over New Zealand for a-,-s lo come. I do ■ c not at all admire the iiiTiiii«vmeiii, but I bHieve that e by its i.-xteii.-ion tint Colony with it the continued paymentof £|:!,(H)U by ' the Imperial (,',',vern- n ment, which oth.-rwiso would 1a,,-e if the cntract u were terminated by the New Zealind (I ,vernin, ; ,,t i, but now p,e.s H.wards maion;,' ni> ib.. amount for v, ment of Mr. \\',,r,r-, ai, It Vi'r.ev'iid-!'!V ( |«.r1t!i.,.,y,.1 i111!1 i 1 ,. 111 .|; 1 . ■ "■ ' , I -■o,i:r,-:,,r, bad , ( ,y ~...=.,., »,. U whew-|.; l ,i, Wuil.u: d"l.,l]Jll •!, I b'il I,:,I 1 !.e ,■.,, ; : i-;,,.] ! n ,v. u'.ii lam i!s .ml tirtin «( liai y. ;n.-. "i .ill .\..v, .i,i,;;i, j 1'

contemplated by tlio contracting parties, und promised to the contractors till Febru.iry, 1ST0; Hum the Colony has the .£13,1)00 per annum secured to its postal service, which otherwise the Chancellor of the. Kxche.iuer would have appropriated after November' Another stumbling block seems to be the clause relative to tholuti:i'-provincial services. Xow, except that we retain some, of those which we are now performing, 1 can really see nothing more in this than tn-il we are to do others which the (tovprmiu'nl nuy require "on reasonable terms and conditions-," (~-., a"s cheiiply i!!i any ono else.v, ill do the work with equally go..d vessels. Nor do 1, to .piot.- the intein],erai'e expressions lately employed, see that the Colony is bv :my means handed over by Mr. Ward to tho "'tende'r mercies ot the 1.K.M.. Company," nu r that there is anytmng " crushiug" about it. ' Kven if the I.U.M. Companv had the monnpolv of J' 1 " l««l'-. «v have provi.i,,! hett-r means of transport tluui any other parties, giving good earnest (is iiitiire intentions, and that not, from obligation but simply from the desire to do olir v.ork hoiVesllv and well. Kspe.iidly h:is this been nppi.i-,.,11 the last two years, although so "urdiringly iv.-0.-nised Xedherthe (iu-en nor the Wiiife Swan, nor the .\./.5..\. I ompauv, improved us, but we set them tae example having improved our competitors • we have be.-,, the ih-sl to p| : ,ee ,-flieient ch.-Mi pussen-er sieainei-son the coast, of Xew Zealand ; nor are we vet sat.shed with what has h.-en accomplished, hnt'in-t-nd lh,. who]., service to be coiidnctC'd «ii as lvspcc tahlea fooling as; possihle. ' ' And, tiurelorc, 1 r.nsider the sad forebodin-: already quoted as uncalled f,,r. as they are unfounded und e-cagg,l-at,,l. 1 assert that the UI.M. Companv d.-sj he M-or!;_boU, for the public and the C.neri,'nieiu Letter in■,;, u has ever 1 11 hitherto done. 1 n""U not go far back to institute comparisons between the performances of ihe vessels of other companies and those of th,. I.K.M. Compane, „,„■ do ■ ™r ' "I 1" ■■:" "" || - SS «-"»»»2?-»H.-«l. lint inv intention m this letter is to be explanatory, not controversial. I here is an oft. repeated assertion, however, of tho Company, or their parti/.ans, which I cannot pass over without remark, viz., that " the fact is jm....ubted th.-.t tbes-iv;,-s,,..,.f,, rll ,edbytheX.Z.S.X. I 0,i,p;,,,y are done lor ,- m amount very much l ( . s .s nan /„/// (hat paid to the l.ilM. Compa'uv under the. "leinaii contract for ~„,//,„- wm -,..- - nu . (lut . stinlli lli.'ii, is not one o| nominal priee, but whrthn- //„■ Mull- II;,,-!: i\ ,!„„- in //., ~.,„,,. ,„„,„„;■ „/ ,-..,,, ~,../, .-,. Ilion half the ,:,■;,•■■, ' ' " 'I'., examine this 1 iiuct (t-..ub1, : you with a f.-w f: - 4ar. ~ J

_ I Now, taking I'll) jut register lon as the. ci.ininoii multiplier, w>: gut for the values of ships employed : — I.H.M. Company £!)7,580 X.Z.S.X. Company £2*,V,GO 7'rom tin.- above we arrive at (he following comparisons : — Mileage, l'or ton. Subsidy in Average ]ii'(ipiu-tinii .size of to hi pit :il ships, in ships. i.i;,m. 1. , -)., (is. l'.i. .I'll l ;s. ;;i> p. 0 isn tons. X. Z.S.N. Co., Is. "7(1. CM Ills. ,jl p. c 1 10 tons. l''rom tliostj liifnri'S I cannot make out that tin: X.Z.S.X. Companv are doimj tlie .same work " for vi-ry much less than liiill' the amount paid the 1.11.M. Cuiiipaiiy." Their mileage is at tile rate of -Is. 7i1., or thereabouts, against (is. 1 j<l., hut performed )>y vessels MO tons only, whereas those of the. I.R.M. Company average -Ist) tons. J should conclude that the !s. 7(1. |it-i- mile is a much higher rate of payment than (is. especially when it is borne in i inind"lhat nitieh of the X'.Z.S.X. Company's work, , viz., 1o liairlan, and Castle "Point, is , iilisolutiily without any competition, und the other , parts of their .'eiviee lies bi.'tween \)u: most commer- , cial ports. AVliilst the 1.1 i.M. Lompaiiy, hesides j , eonslaiit <'oiiipctition <m tlnw, have ;MHO ii'iilc<i (from | , I'oil Clialiueis to thr IlliilV) p. r annum to perform at L an absolute loss, and also the ocean passage between , Sydney and New Zealand, where tin; average freight is just equal to that between Wellington and Taraiiiiici. Xor are the vessels of the X./..5.X. Company liable to any lines, no requirements of speed, no'r subject to such capricious inspection, as those of the lM.il. Company are. The ' Utii-voV market \alue is equal t<; Hint of the four boats now running by the N. X.S.N. Company. Therefore, seeing that the X. Z.S.N. Company get, for the value of vessels .dually enu;a-ed in the work they have to do, about ')! per cent, in siibsiilv, whilst tlin 1.11.M. Company ,'et but :«i per cent., and that the vessels with whicii hey run for Is. 7d. per mile are on the average not nie-third tlie size of those with which we perform >ur (is. mili'a-e, 1 fail to perceive the truth of the issertion thai Hi,.. N.Z.S.X. (.'oiiipany do similar voi-k to lliat of Ih.: 1.K..M. Company for" very much ess than half the nioiiev. Then' as to all the talk ihoul ]iul.lic tenders, not one of the X.Z. Coin]uuy's ontracts but was made direct with Hie Government ■ither IJeiieral or Trovincial. 1 reluctantly enter into the.sn comiiarative statoneiits, but tli<:y are a necessity to check the reckless mtnitlis it has lx'come the laphion to circulate by ntere.stcd parties to injur,. tin, J.R..U. Company, but iliieh may eventually do more harm to the iittorors. I Know i,:,t w.iy t:,u N.Z. Compmy klii.iilil liave | .ken sii.h ii,adv,.-i>e ieelin- l«i the 1.1i.51. Company, j havcav ■'i.1,-<ic..|islaii!ly ! .a.-iii-.,r,|..iim-iiiu hy I iv ol ..pp..M.,.,,, |~ ~„..„_ ~„,[ i i.euevethj-y v.-iii do I inch h.-tlir hv w0n;,,,.- will, us ti,an a-unst us. ,;" : -y U,: > ; '' '" '"'•■'■ i»->l-"<*»-y i-e.i.j,' a»i...i, y - II cW, <...-.,„ to tue ui;,,,..,, .„ Ulu lillul ~, , 1 . 1 ,;,.r,

although wo may not be making such enormous profit as they are. Hitherto we have certainly not had thill success financially which ought to "have attended us, and X*ew Zealand has reaped immonsu advantages from (ho operations of the J.IOI. Company, enjoying the benefits of Knglish capital at about .I percent.—for that is all the" net profit this j shareholders have got i'.r tlu.ii- investment up t« the j present time Tims tin.- jioui-ilu claptrap one hears ■ from time to time repeated nf the " protits accruing - enriching- Australia ami En-rlsmd," lms u< httie j foundation as .similar '■

I apprehend t!io I.R.M. Company spends as miii-h ] money in Now Zealand us any of tliu local com- j panics, and though we are taunted with not spending iii"i-o tlian n-e do, I would just ask whose fault that ! is ': Provide docking accommodation and means of j repair, as good us Australia, and we will soon in.'lke i use. <if them and rid ourselves of this reproach. At ! present, if all our capital was subscribed in X.-w j Zealand, it would make very little difforence. ; and if; ' eveniil.-iily, v.v d» li.ir repairs al aivr particular port, ' the others wiil lind equal fault because tin; money is , not spent with them. AVliy is the 'Lady liir.f at , Sydni'V now ': Because you can't repiir her in Xew Zealaiid. Why is the Panama contract the subject : of so much cavil ': Simply because there is not enterprise liorVapital enough anions the colonists to ; take it up. X.it able to do'it themselves, tin- dog-in- ] tho-ming.T principle is adopted, and the contraclors ' must be sneered, anJ alniost denounced us enemies to ' tile community, because, as before, in IH-iS, they mi<l.-rt:<k.: to 'do that winch the colonics of Xew , /.aland cunot. In hotli instances the agents of tin; ( X-w Zealand Covornuient had to wait a twelvemonth i nearly, before they could induce any one to under- ; (nice their proposals in Kngland. "The wail of the X.Z.S.X. Company i> solely caused by being dis- ; appointed of the absolute monopoly of'the existing j trade, which they had promised themselves, continent ■ of ousting the I.R.M. Company through tin ir local j interest and peculiarly advantageous' proprietary. I Truly they have very little to complain of, and much I to bo thankful for, 'and I cannot think they have done wisely t" evoke that spirit of antagonism which recently appears on their part, lint ;i short linn- ago and they were nil for amalgamation, which might then have easily h..-n carried out. Amid the many rabid articles t<> which tile Panama contract has given ri.so to lately, the dispassionate letter of X.Y.Z., in the In-lrpnSihut of tin- Sth iiist.. is a relief, and worth attentive perusal. A little calm reason, and less vituperation and rash assertion, would enable the public !«> jmli;.- much lnoi-.j accuratclv of the new .scheme t;,au they have yet, I imagine, been aide to .Jo. In the letter to which i referred, tliu subject of fares is mention. A. Nov.-, looking into the fares charged goneriilly on the coast of Xcw Zealand, whether j,y one company or another, they arc, as far as my experience, goes, all tilings considered, lower than are charged anywhere else almost. Perhaps no steamers in the world have to pay such enormous wages as on this coast. Firemen, CIO; in England, C-'i to tl : seamen, the same. Coals and provisions are also ruinously high. The Peninsular and Oriental Company's passenger fares vary from £■', to .£.'."> | per dioMi. Ordinary steamers in the Jfediterraneait, : where wages and provisions are cheaper than else- , when', charge not less than .C- per diem. Though' they do not "ostensibly charire !..y th" day. yet that' ; s the" rat-. Then, o.'i the coast" of Australia, wheio J coals and provisions are much less tlinu in New 'Ac::- j laud, the fares are as high, or higher, varying from ; C 2 His. to H\', IDs. per diem. Therefore, if compar- j isou be any test of doarness, the existing rates are I not. "extruvairantlv hi»h." Everything, too. is | hecming dearer than ever, and labor" scarcer. The fares of the I.U.M. Company have licen several time* reduced, and are but a lew shillings higher than | those of the X.Z.S.X. Company, anil that only in j some instances. As to subsidies. Xew Zealand has j the cheapest services in the world: and when the i line from Panama to .Sydney is established she may ' boast of having an ocean line, at lirst totally uneotu- ; merci-li, at the lowest rate also. 1 hope we may be able to maintain it. There is no margin for divine; up any of th > advantageous clauses, even though j they iie obnoxious to local Companies, unless we are ' well paid for it. I heartilv wish they had the con- j tract instead of She I.U.M. Company.' j In addressing these few μ-oncral remarks to yon, j Sir, on the contract, I cannot help observing with | surprise, that bavin- selected Wellington as our port > of call, we here meet with the greatest attempt at j opposition to the ratification of the contract. lam I aware, also, that notwithstanding Port Xicholsim has certain advantages as a port of Call. then, are other places in Xew Zealand possessing claims for consideration, both ideographical and commercial of which we shall not hesitate to avail ourselves if we are to be j glared upon as intruders at Wellington. , Xor should we be long in finding advocates for \ abandoning the selected part in sutlieient numbers to | cmibl,- us to upset present arrangements, and willing i not only to remove any difficulties in the way, but to I give us a welcome, if the people of Wellington preti r j fostering the imaginary interests of a local Company I to those of their Port and Province. ' |

1 , -ut I believe that taking the contract as it stands, t!i.> local company will benefit more than if we made .some other port In New Zealand our port of call. In any case, there is nothing to prevent our competing with the X.Z. Company, and resisting further encroachment upon our lines. They have their work to do, and we have ours : nor do I see any reason why such asperity should be shewn by them towards u.». 1 have the honor to be, 1 our obedient servant. .loltN VIXK H. 11.1.. To His Honor Dr. 1-Vuthcrston, !Su; o.'int-mlent of Wellington.

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