THE WEBB MAIL CONTRACT.

New Zealand Times, Volume XXIX, Issue 4243, 26 October 1874, Page 4

THE WEBB MAIL CONTRACT.

Before the close of the late session, it was intimated to the House by the Premier, in answer to a question, that tho Government did not intend to attempt to recover at law from Mr. W. H. Webb the- penalties incurred in connection with his contract with Hew Zealand for a mail service with California. That decision was probably influenced by the following letter from Mr. Bussell, which was presented to Parliament, and has just been issued from the Government Printing Office : Wellington, 3rd August, 1874. Sjk,—Referring to the question of the enforcement of the penalty incurred by Mr. Webb, for his failure to continue the San Francisco Mail Service, at your request I now submit for your information my view of the case. 1. When Mr. Webb undertook the service, there was reasonable ground for supposing that the assistance of one or more of the Australian Governments would be obtained in favor of the undertaking ; and Mr. Webb was supported in this view by the assistance given him in his negotiations by the Hew Zealand Government. Mr. Webb did all in his power to secure the co-operation of Hew South Wales and Victoria, and for several months ran his boats through to those colonies free of cost to them. As long as there was a prospect of seeming their support he continued the service to Hew Zealand, at an enormous loss, and only withdrew upon the failure of the Australian negotiations ; after which a continuance of the service to Hew Zealand was simply impossible, having regard to the high price of coal in this colony, and the want of facilities for docking and repairing his large ships here. 2. The service maintained by Mr. Webb was unquestionably a great benefit to the colony. TTie cost was inconsiderable after deducting the amount which otherwise would have had to be paid for the Snez service. It was also of great benefit by opening up relations American wool buyers, and otherwise profsotiug trade between the colony and America. I believe the direct beneficial trade results to Hew Zealand were very large, apart from the benefit we derived from the attention directed to Hew Zealand in Amex-ica. 3. The service was maintained by Mr. Webb, during the whole time of its continuance, at an enormous loss ; and, from inquiries I have made, I am satisfied that his money expenditure in Hew Zealand, in connection with the service, left a large balance of profit and advantage in favor of the colony procured at the cost of the contractors. 4. From what I could ascertain of the probabilities of the success of a lawsuit instituted by the Hew Zealand Government in America, against Mr. Webb, I cannot advise such a proceeding. 5. But, further, I think that where reasonable efforts are made to perform a new, costly, and difficult undertaking, such as that undertaken by Mr. Webb, entailing as it did heavy loss upon him, and inflicting no pecuniary loss upon, the colony, but confexring distinct advantages, then the enforcement of the penalty for failure under such circumstances is, in the general interests of the colony, both illiberal and impolitic.—l have, &o, Thomas Eosseix. The Hon. the Postmastei’-General.