THE 'FRISCO SERVICE.

New Zealand Herald, Volume XXV, Issue 9129, 10 August 1888, Page 5

THE 'FRISCO SERVICE.

[BY TELEGRAPH. —SPECIAL CORRESPONDENT.]

Wellinoton, Thursday. Owing to the stonewalling of the Native Bills there is no probability of the 'Frisco Service being discussed to-morrow, as the Government will be bound to accept the challenge thrown down, and force these measures through. No decision has yet been arrived at by the Cabinet, and I understand the Auckland members will receive due notice of the proposals.

I had an interview with Mr. Mills, manager of the Union Steam Co., on the subject. Apart from his relation to the service, and speaking simply as a member of the House, he is of opinion that the colony would do ivell to have two strings to its bow, and that in the event of a renewal of the contract, it could and would be greatly improved. He does not think the 'Frisco service would be continued on a postal tariff of l'2s .a pound for mail matter, supplemented by the present cargo and passenger traffic. The subsidy averages double that figure now. and Spreckles and Co. could employ their steamers much more profitably than on the Pacific route on such terms. Then there Mould be the difficulty of the transit of the mails from 'Frisco to London, and vice versa, which was an Imperial arrangement. In proof of the advantage of the colony having two strings to its bow, He referred to the freights of frozen meat. The Direct; communication had raised the freight, and it was only broken down by an unsubsidised line. In the event of the 'Frisco route being abolished, and the Direct line being subsidised, it would be desirable to insert a clause in the contract 'nalcing a tariff for frozen meal, dc, so as to prevent a monopoly, and a combination to raise freights. I understand that Mr. Ward's action against the 'Frisco service is largely influenced by a belief that the Direct line, in order to make their lino a quick postal route, would make the BlufF the first port of call, and land the mails there. The harbour authorities at that port are, it is understood, willing to give a tender service gratuitously, in order to facilitate such an arrangement. The Postal Department do not favourably look on such a proposal of going to the risk of landing mails in an open roadstead. Mr. Mills informs me that the experience of landing the mails at Dunedin Heads from the mail steamers was not of such a successful character as to invite a renewal of it at the Bluff.

It is admitted on both sides—-by friends and foes of the 'Frisco service—that the tallies will in all probability be turned either way by the information submitted by the Government, and the proposals they may make.