SAN FRANCISCO SERVICE.

New Zealand Herald, Volume XXVI, Issue 9322, 27 March 1889, Page 5

SAN FRANCISCO SERVICE.

ACTION OF THE MELBOURNE CHAMBER OF COMMERCE.

INTERVIEW WITH MR. CREIGHTON.

THE NEW PROPOSALS.

At a meeting of the Melbourno Chamber of Commerce, correspondence upon tho San Francisco mail service was received from the Sydney Chamber, and from Mr. R. J. Creighton, the representative of tho Oceanic Steamship Company of California, who is now in New South Wales. The Sydney Chamber did not pledge itself to support any particular service, but affirmed the desirability commercially of the continuance of tho San Francisco service. A resolution was unanimously adopted oxpressing tho opinion that, in view of the early termination of the existing mail arrangement, and of its growing importance to mercantile interests, as well as those of the present contracting colonios, arrangements be mado at the earliest opportunity for securing a continuance of regular communication by either a monthly or a fortnightly service on tho most, favourable terms and conditions practicable, in order that such interchange may bo maintained and developed, and that it is desirable that this Chamber co-operate with tho Chambers of Commerce of New South Wales and New Zealand in an endeavour to bring about by united effort the adoption of such a scheme as will be acceptable to, and meet tho varying requirements of, the different colonies.

Owing to the unsettled conditions of Government in Now South Wales during the past three months, there litis been no opportunity for giving practical consideration to the proposal of Mr. R. .1. Creighton, as the representative of Spreekles and Co., of Honolulu, with regard to tho San Francisco mail service. The proposals were submitted to the former Parlcos Ministry, and afterwards received some attention from the Postmaster-General in the Dibbs administration, which, however, was too short-lived to enable any definite conclusion being arrived at, either for or against tho scheme, and so far the matter has not been considered by the Government of the day. The present San Francisco mail contract was entered into three years ago between New Zealand and New South Wales, and the Union Steamship Company of Dunedin (N.Z.), and the period agreed upon for the service expired in November of last year, but an extension of tho contract for one year was determined upon in order to g'ive time for consideration as to what arrangements should bo made for the future, the proposed route via Vancouver having about that time attracted considerable attention. The Postmaster-General (Mr. O'Connor) has had the subject under consideration during the past week, and presumably with a view of gaining additional time for the development of future arrangements the Postmaster-General has communicated with the New Zealand Government asking if they are disposed to join this colony in requesting tho Union Steamship Company to renew the present contract lor another year from November next.

Mr. Robert J. Creighton was interviewed by a representative of the Sydney Daily Telegraph. In reply to questions, he said : " 1 have submitted a proposal to the Government. on behalf of the Oceanic Steamship Company of California to run a fortnightly steam postal service botweon Australia and San Francisco on the expiration of the present four-weekly contract in November next. The project is to run a fortnightly line of steamers to and from San Francisco with the English, colonial, and American mail. Five vessels would be required to perform the service, and a subsidy of £80,000 a year is asked, of which the United States is expected to contribute £10,000. For an additional £5000 a-year, therefore, the colonies may have a fortnightly service for a long term of years, thereby developing their trado and industries, and bringing them into touch with the most progressive commercial nation in the world. The California route secures a potential market of over 00,000,000 of English-speaking people to Australia. The Canadian-Pacific route would bring you into contact with about (i,000,000. The United States is a great importing country, and it buys more British products than any other nation, because its needs are greater, and it has more money to spend. Canada, taking the Dominion as a whole, is a poor country, only partially developed, and exports a surplus of agricultural products, lumber, coal, etc. It has no domestic trade to sustain its transcontinental railroad, which was builton a guaranteeof interest toinrluce British Columbia to join the federation ; and it is therefore compelled to look for outside help in the shape of steamship subsidies as feeders for its continental road. This is good business policy for Canada, but it would hardly pay Australia to cut itself loose from a consuming market of over 00,000,000 to aid in the development of Canadian-Pacific trade without any advantage. That the American tariff excludes your wool and other products is a popular error. The United States tariff did not prevent it buying 11.4,401,173 pounds of wool in the fiscal year 1880-87, upon which 5,800,810 dollars duty was paid. It also imported woollen manufactures the same year, upon which 20,729,717 dollars duly was collected. This market is open to Australian woolgrowers if they step in and exploit it, but the bulk of the purchases on American account is at the London wool sales, to the manifest loss of your woolgrowers, who sell at second-hand. The duty clid not prevent the United States importing 10,008,074 dollars worth of fruit and nuts in the season of ISBG-87, upon which 4,210,008 dollars duty was paid. Now, the seasons being opposite in the northern and southern hemispheres, it follows that Australian table fruit may be marketed in the United States during the Northern winter, when there is no home or European fruit to compete with it. In addition to the import of duty-paving fruit and nuts, nearly one million sterling worth of free fruit was imported the same year. Apples are free, and should pay to ship to the American market from Sydney. The demand for good apples in America in winter is practically unlimited. Apples go into general consumption as a staple article of food. California produces but a small percentage of the fruit consumed in the United States. For example, the Cali : fornian raisin crop is about 2,000,0001b, bub 40,G00,0031b raisins were imported in 1880-7, an average year. The crop of prunes in California when dried is about 2,100,0001b, bub 70,505, of plums and prunes were imported in the year named. Of currants, 2!), 196,3981b were imported ; of figs 8,752, ; of lemons 2,043,870 ; and of oranges 11,374 full boxen respectively ; of filberts and walnuts, 11,207,5481b; and of almonds 4,951,9301b. California markets its surplus fruit in eastern cities, and Australia has precisely the same market available, with this advantage, that the difference in the seasons would give a monopoly to the southern producer. You want, however, rapid and certain freight facilities. This tho Oceanic Steamship Company offers to place at your disposal for a term of years at a very moderate subsidy. Again, the duty on coal did not prevent California buying 489,589 tons of New South Wales coal last year, and tho purchasers would have been far larger if it had not been for the strike. And this loads me to say that every coalminer and every man who has a shilling invested in coal mines in New South Wales is directly and pecuniarily interested in the establishment and maintenance of a fort nightly steamer service with San Francisco by the Oceanic Steamship Company's vessels. I have very little doubt the postages and contributions from other colonies using the line will render it self-sustaining. With the American contribution this year I think it will be found that the Californian Mail Service is a source of revenue. But, even were it not, it would pay to maintain a fortnightly service for commercial purposes. The local expenditure on account of the Oceanic steamships is considerable, and it would bo increased by a fortnightly disbursement. Will New Zealand join in the service? I cannot say. I have reason to believe it will; but the New Zealand Parliament last session resolved to discontinue the Californian service in the interest of the direct freight lino via Rio Janeiro, and Ministers are unwilling to commit themselves until Parliament meets in June. This would throw the determination of the matter over too long, and it must, j therefore, be decided by New South Wales ( and Victoria without reference to Now i Zealand in the first instance. As the Cali- i

fornia route is the best postal service for New Zealand, no doubt it will contribute, but in the present instance it is evident that the insular colony must follow where it formerly led. As the extended contract expires in November, it is necessary that the Oceanic Company should know as speedily as possible whether the service is to be continued and improved. If so, new steamships are to be built; if nob, employment must be found for the steamships which now perform the service in some other trade. This is a simple business proposition which everyone will understand."