THE SAN FRANCISCO MAIL SERVICE.

Otago Daily Times, Issue 8863, 22 July 1890, Page 2

THE SAN FRANCISCO MAIL SERVICE.

(Fjiom Ook Own Cokeespondent.) Wellington, July 21. The Government received a cable message to-day from Mr R. J. OreigDton, agent at San Francisco, to the effect that tho bill which provides for tho granting of subsidies to the American mail services had "passed." Deeming this too indefinite a statement as the basis of any specific policy on the subject of the 'Frisco mail service, the Postmaster-general cabled bact to Mr Creighton requesting him to state whether the bill had passed both Houses of the Legislature. A reply from Mr Creighton is expected to arrive to-morrow. It is computed that under the provisions of this bill a subsidy of £34,000 would be payable to the San Francisco mail service, which would not be sufficient to enable the service to be carried on by New Zealand alone. Unless, therefore, the English Government would assist the Californian service would still be beyond the reach of New Zealand. The Government consider that New Zealand ought not to contribute more than £10,000 at most, nnd the cost is estimated at £20,000 in addition to the oxpeated American subsidy. As soon as the Government receive a definite intimation that the American Subsidy Bill has actually passed into law they will cable to the Imperial Government inquiring whether England would be prepared to contribute anything towards the maintenance of the service. Very small hopes are entertained, however, of auy assistance from that quarter, as the reduction in ocean postage rates has already involved the mother country in considerable loss, which, it is believed, the Imperial Government would be very reluctant to increase.