CARRIAGE OF MAILS.

New Zealand Times, Volume XXVII, Issue 5598, 26 May 1905, Page 6

CARRIAGE OF MAILS.

THIS SAN FRANCISCO SERVICE. NEW ZEALAND AND THE COMMONWEALTH. POUNDAGE AND POSTAL UNION KATES. CONTRIBUTIONS TO P. AND 0. STEAMERS. PRESS ASSOCIATION. KLTHAM, May 25. In tlio course of an address at Eltliam to-night, Sir Joseph Ward announced important proposals regarding mail scrriccs. Ho road tho following communications - ' Postmaster-General, Commonwealth. “ Referring to our late discussions reipeoting payment made by tho Commonwealth for conveyance of Australian mails by tho San Francisco service mil tho rates paid by Now Zealand for tho carriage of its outward correspondence by tho Peninsular-Oriental and Orient steamers, I would again urge you to extend more liberal treatment to tho San Francisco service than iis represented by tho present payment of 2s per lb for letters and 4s per cwt for other matter. Tho contribution, in my opinion, is entirely out of keeping with tho value of the service to the Commonwealth. “ It may ho convenient if I briefly •refer to the history of payments as applied to ocean mail services so far as they have obtained between New Zealand and Australia. In connection with the Panama service, established in 18GG, the Post Office calculated that 25s 4d por lb was the equiva/lont of postage on letters, Is tid on books, and Is on newspapers. These amounts were paid to New Zealand and Now South Wales by tho London Post •Office for their providing a service between Sydney, Wellington, and Panama. Non-contracting colonies also paid tho same rates. On the other hand, New Zealand paid tho Australian colonies similar poundage rates for tho use it made of tho Peninsular and Oriental service. Tho Panama service ceased in 1869, and was replaced by the San Francisco service in March of tho following year, and for a timo these payments wore mutually continued. In 1891 it was agreed that poundage rates In respect of both services should be rejluccd to 12s per lb for letters, Is por lb for books, and 6d for newspapers. Contributions from the non-contracting colonies to the San Francisco service wore paid over to the contractors instead of being retained by this office, as had been tho practice previously. In contracting with Mr Sprockets in November, 1900, for the renewal of the Ban Francisco service, it was decided that New Zealand should no longer collect tho non-contracting colonies’ contributions, but leave the contractors to make their own arrangements with . tho colonies. ■ "'‘lt should bo mentioned that for ,iomo time previous to 1900, and until Mr Sprockols took over the service in that year, New South Wales made a flxod contribution of £4OOO a year to tho San Francisco service. Now Zealand entered the Postal Union in 1891, ' and reduced tho letter rate to Great Britain to 2|d. Tho Sydney Post ' Office was advised ‘of this, and also informed that tho rates for the use of the San Francisco service by non-contract-ing colonics had been reduced to 12s per lb for letters, Is for books, and 6d for newspapers. As Now Zealand would probably make regular use of tho Peninsular-Oriental and Orient services —direct service not having boon renewed—tho Sydney Post Office was asked whether tho Australian colonies would not agree to allow this colony - tho uso ,of tho Peninsular-Oriental and Orient services for tho equivalent of t bare postages at the same time. The '• Sydney Post Office was also reminded that all recoveries from non-contracting colonies were paid over by us to the contractors. The reply was that ‘ The Postmaster-General thinks the fairest arrangement is to follow the recommendations of the heads of departments at the Sydney Conference, • and charge 12a on letters by both the Sim Francisco and Suez routes. ‘Tt will thus be seen that New Zealand has been paying 13a per lb for letters, Is for books, and 6d for newspapers for carriage by tho PeninsularOriental and Orient services since 1891. It was only during tho short break between the termination of the late Peninsular-Oriental and Orient contracts and the new one made in March last with the Orient Company, that the Commonwealth intimated w<* could have use of the services at the reduced poundage rates of 3s per lb for letters, and 4s per cwt for other matter. Since then it is understood we may make use of the services on payment of Postal Union rates. Our payment for sea-carriage' on outward mads in 1901 from Adelaide hy the Peninsu-lar-Oriental and Orient services was £-1031. At Postal Union rates tho payment would not have exceeded £I4OO. The Commonwealth, however, does not oven pay Postal Union rates to the San Francisco service, but tho local rate of 2s por lb for letters, and 4s per awt for hooks and newspapers. The payment, as already indicated, is entirely inadequate to tho value of the service to the Commonwealth, especially to Sydney, which is the terminal port, and benefits to the extent of over £63,500 a year, spent in coaling and victualling ships. I am not clearly acquainted with the reasons which led to tho abandonment by Australia of tho long-standing’ arrangement under which mutual support by tho contracting colonies was to be given, as far as practicable, to Eastern and Western services. The reduction from a rate of 12s por lb for letters. Is for books, and Gd for newspapers to tho Commonwealth rate of 2s per lb for letters and 4a per cwt for books and newspapers took placo on December Ist, 1900, but the Commonwealth did not suggest any corresponding reduction in rates payable by New Zealand for uso of the Peninsular-Oriental and Orient services. While I am now aware that New Zealand is at liberty to reduce payment towards Eastern services to tile Postal Union rates, the point requires further consideration—whether this arrangement could not bo retrospective from the last date on which tho Commonwealth reduced its payments for conveyance of mails by the Ban Francisco service. At the same time it is difficult to understand why the Commonwealth should not, failing a more equitable arrangement, pay at least Postal Union rates for matter conveyed by the Son Francisco steamers. The point is one which has been brought before my department by tho i contractors’ representatives in more .-than one. form, hub I have heretofore*,

refrained from expressing an opinion as to the merits of the care. Taking a broad view of tho question, I would venture to suggest that the value of the San Francisco service to the Commonwealth might he moderately estimated at £IO,OOO por annum, while the value to New Zealand of regular communication by the P. and O. services is about £SOOO. I have not at hand _ the amount actually paid over by tho Commonwealth for uso of the San Francisco service, but, of course, it is considerably loss than .010,000 por annum, and although Now Zealand has up to tho present been paying about £IOOO a year for uso of the Eastern steamers, payment of Postal Union rates will reduce our contribution to about £ISOO por annum. At tho present stage of this correspondence. 1 will not enter into tbo merits of poundage and fixed contribution systems, beyond remarking that, in my opinion, tho intercuts of Now Zealand are at present best served by granting, as far as practicable, liberal payments to ooean mail steamers, and that, as a matter of reciprocity, I am prepared to recommend the Government to favourably consider payment of a fixed contribution to the P. and 0. steamers, provided tho Commonwealth adopt a similar policy in regard to tho San Francisco service. I may add that unless such arrangement is adopted there will he great difficulty in obtaining a renewal of tho San Francisco service. I shall bo glad if you give tho suggestions earnest and favourable consideration. (Signed) “J. G. WARD.”