THE SAN FRANCISCO MAIL SERVICE.

New Zealand Herald, Volume XXVII, Issue 8288, 21 June 1890, Page 5

THE SAN FRANCISCO MAIL SERVICE.

ITS ABANDONMENT PROBABLE. REFUSAL OF NEW SOUTH WALES TO SUPPORT IT. [PA" TELRG; — special reporter.] Wellington, Friday. With reference to the contemplated proposals of the Government respecting the English mail services, I understand that tho position taken up by Ministers is this. If Mew South Wales will not join with New Zealand in carrying on the San Francisco service, and if the proposed American subsidy in aid of that service fall through, then tho colony could not possibly carry on the service because of the heavy loss which would be involved. If the American subsidy were forthcoming, New Zealand could carry on the San Francisco service without New South Wales's assistance, and the Government would propose that all New Zealand mails should be sent at tho 2kl rate, which then would pay expenses by that route. If, on the other hand, no outside aid is available then the Government consider that New Zealand will have to abandon the California!! service altogether. In that case it will be proposed to send the mails fortnightly by the direct steamers, provided the two shipping companies will agree to carry them at a rate which the Government will consider reasonable. The 2Jd rate of postage would in that case also be adopted. It is estimated that this could bo done without throwing any increased burden upon the colonial revenues. Elaborate calculations are in course of preparation which it is believed will bring out this fact very clearly. 11l tho unexpected event of the two direct lines refusing to enter into a contract upon satisfactory terms, it is thought possible that a favourable arrangement could be made with the P. and O. or Orient line in connection with the Union S.S. Co. It is at present regarded as almost certain that the New South Wales Government will refuse to join in tho continuance of the 'Frisco service, so the whole question will have, to bo faced at an early date. This matter has already begun to occupy the attention of members, and Mr. Joyce has given notice of his intention to ask the Government if they will indicate the Canadian proposals for a Pacific Mail Service, with a terminal in this colony, and what proportion of tho total £150,000 voted by the Dominion for ocean mail subsidies, will be set apart for New Zealand service. Tho Government have received a cable message from Sir Henry Parkes, stating that New South Wales will not join New Zealand in continuing tho 'Frisco mail contract. If New Zealand continues the contract, the Australian Governments will simply pay the poundage fees. The effect of this decision will be that unless the American subsidy is carried, the 'Frisco service will cease after November next.