THE POSTAL REPORT.

New Zealand Herald, Volume XXV, Issue 9103, 11 July 1888, Page 5

THE POSTAL REPORT.

REDUCED EXPENDITURE.

THE 'FRISCO AND DIRECT MAIL

SERVICES.

COMPARATIVE ESTIMATES.

[BY TELEGRAPH.—SPECIAL CORRESPONDENT.] Wellington, Tuesday. The postal report shows that the receipts for the financial year were £311,603, an increase of £5148; the expenditure was £270,635, a decrease of £21,657. The revenue was £40,973 in excess of the expenditure, arising from the abnormal decrease in the expenditure under the head of conveyance of mails by sea, amounting to no less a sum than £18,669. Many economies have also been carried out during the year. The total earnings amount to £413,779, or £143,144 more than the departmental expenditure. £22,984 was spent on telegraph extension. 39,377,774 letters and 1,853,394 telegrams were dealt with during the year, and 38 offices were established. The "total number of offices now open is 1118. Twenty-two inland mail services were established, the total now being 600. The length of telegraph lines was increased by 100 miles, and there are now 4646 miles of lino and 11,375 miles of wire. Telephone subscribers now number 2042, an increase of 112. Last year the increase was 287. With reference to the new agreement between the Imperial Post Office and the principal Australian colonies for the maintenance of a subsidised weekly mail service between the United Kingdom and Australia by the Peninsular and Oriental Companies, the report says :—"So far as the new arrangements affect New Zealand they are favourable. As the colony has only to defray the cost of the homeward mails, our payments for this year should be considerably less than one-half of the amount paid in 1887."

The report shows that there has been a falling-off in the receipts in respect of the 'Frisco service, due mainly to the Direct contract steamers conveying a larger proportion of the correspondence than in 1886. In place of the 'Frisco service showing a profit as in 1886, there is a small loss of £729 for the last year, and this without taking into account any proportion of the refund which is to be made to tho contractors. They, it seems, are entitled to a refund from this colony and New South Wales respectively, at the rate of £1066 per annum from the date the service began as per agreement. This has the effect of increasing the New Zealand share of the subsidy to £24,400 a year. On the other hand the loss on the Direct service is £6707, in the place of £11,070 in the previous year. Both services continue to be performed satisfactorily. The average time, however, by the Direct service was longer than for the preceding year, and this was particularly the case with the inward mails, the average time of delivery to the first port of arrival being 44 days, compared with 41.69 days in 1886. The detour to Hobart is the probable explanation of this. The bonus earned by the Direct service was £8443, against £12,326. As the general question of the future of the ocean mail services will be considered during the present session, the following statements have been prepared, showing what would be the probable financial effect were it decided to abolish either the 'Frisco or the Direct service.

(1.) Statement showing the estimated cost of a four-weekly mail service between the colony and the United Kingdom by tho Direct contract steamers, on the terms of the existing Direct sen-ice contract, on tho the correspondence conveyed by both the Direct and San Francisco services in 1887, and on the assumption that the San Francisco service had been abolished. This estimate show& 8 nett profit to the colony of £2555. Th* rates of payment under the Direct mail service contract are : Letters, 12s per lb ; books and packets, Is per lb; newspapers, 6d per lb. 2. Estimated cost of a fortnightly service by the direct steamers, based on the existing contract payments, and on the correspondence conveyed in ISB7 by both direct and San Francisco services, and on the assumption that the latter service was abolished. This estimate shows a net loss to the colony of £5350. 3. Statement showing the estimated cost of a four-weekly service via San Francisco, assuming the direct service were abolished, based on a continuance of existing payments and receipts in respect of the correspondence conveyed by both lines in 18S7. This estimate shows a net profit to the colony of £14,754. The London Post Office at present provides for the free conveyance of the mails between London and San Francisco.

Later. The laying on the table of the House, today, of the Postal Report, elicited quite a batch of notices of motion respecting the 'Frisco and Direct services. Mr. Peacock moved that a return be laid before the House showing : (1) The estimated additional cost to the colony if all the mail matter now sent by the Direct service were sent by the 'Frisco service on the present terms ; (2) the estimated netb monetary result to the colony of the 'Frisco service if such a course were adopted ; (3) the estimated netb monetary result to the colony of the Direct service if all the mail matter now sent by the 'Frisco route were to be sent by the Direct service on the present terms.

Mr. Ward has given notice to ask the Premier if he will give the House an opportunity this session "of discussing the desirability of abolishing the 'Frisco mail subsidy, and if he will name a date upon which such discussion can take place; also, that a return be laid before the House, showing the quantity of cargo carried to and from New Zealand by the 'Frisco mail steamers, as well as by the Direct mail steamers for the twelve months ended the olst December, 1887.

Mr. R. Reeves has given notice to ask the Premier if he will, prior to making any arrangement for the renewal of the present 'Frisco mail contract take into consideration the advisability of opening up communication with the Government of Canada, with a view of ascertaining from that Government how far they would be prepared to act in accord with this colony in the transit of the mails to Europe through Canadian territory ?

Mr. Guinness has given notice to ask the Postmaster-General whether the Government have ascertained from the New Zealand Shipping Co. and the Shaw, Savill, and Albion Co. at what rate they would be prepared to carry the mails between Great Britain and New Zealand, on condition that a fortnightly service is arranged ? Mr. Whyte lias given notice to ask the Colonial Treasurer upon what terms could our foreign mails be conveyed by the ordinary steamers trading to and from New Zealand without subsidies, and approximately what annual saving would be effected by having them conveyed by this means, as compared with the present system of subsidising two mail services.