STEAM SERVICE TO SOUTH AFRICA.

Otago Daily Times, Issue 12418, 30 July 1902, Page 4

STEAM SERVICE TO SOUTH AFRICA.

Wk published a few days since the full particulars of the tenders received by the Government- for the provision of a steam service between the colony and South African ports. There wove tv?o tenderers—the Union Steam Ship Company (on behalf of the New Zealand and South African Steamship Company, which would havo been formed in the event of its tender being accepted) and Mr Harold C. Sloigh. The hitter's offer, it is at once to be observed, was much the more attractive. The Government, in advertising for tenders, had notified that preference would be given to those offering tho highest speed and .the best passenger accommodation, and stipulated that tho speed should be not less than 10 knots per hour. Mr Sleigh offered steamers with a speed of not less than 1H knots

ami with accommodation for SO saloon passengers. The Union Steam Ship Company, on the other hand, offered steamers without first-class accommodation and capable of maintaining a speed of from 9 to 10 knots only. Upon these essential points, therefore, the comparison of the tenders was in favour of Mr Sleigh's offer. Moreover, it was agreed by him that tho steamers should leavo New Zealand at intervals of not less than one month, whereas the Union Company's proposal provided for sailings monthly or as nearly thereto as possible, and it is not difficult to see that, with a service supplied by three 9 to 10 knot steamers, monthly sailings conkl not be counted upon. For tho service it the Union Comuany

asked for a subsidy of £27,000. Mr Sleigh's price was £30,000. His tender contained, moreover, nn important stipulation. It was made subject to the con- ; dition that in the event of insufficient cargo being obtainable in New Zealand to fill the steamers, then the option should be granted to the contractor of calling at Australian ports to fill up at rates not lower than those quoted for New Zealand. It will be readily seen that in this a very important concession was asked for by the tenderer. : The Secretary of the Department of Industries and Commerce, reporting to his Minister upon it, expressed the opinion that, as the Government gave no guarantee of cargo, it was not an unreasonable request. But the Department does not seem adequately to have appreciated what the eflcct of granting the concession asked for by Mr Sleigh would be. It would practically lie to guarantee him against the risk of loss. If his steamers should not be able to fill up with cargo ; in New Zealand they could complete their loading m Australia, which has already opened up a brisk trade with I South Africa. And obviously a conces- | sion of this kind in favour of the teu- | derer would atl'cct the price at which he could afford to undertake tho service; : That being the ease, the Government, ' before accepting Mr Sleigh's offer, should •! certainly have afforded tho Union Com- ! pany tho opportunity of modifying its i tender upon tlio new condition which j bad been introduced. If this had been ' done it would probably have been found that the Union Company, with this concession extended to it, would have been able to offer to maintain the service for U much smaller sura than £27,000, or • else to place in the service, for the sum quoted by it, a superior type of steamers such as would fully have complied with' the Government requirements. Why tho ■ Government did not give the Union Company a chance cf tendering on an equal ' footing with Mr Sleigh has not been explained. It can hardly be for the reason that there is, as Sir Joseph Ward stated l a few days ago, no Ncv< Zealand and : South African Steamship Company in existence, for the Blue Star line, by which Mr Sleigh's contract was, we have heard, to be fulfilled, was not in existence either. The Union Company had, at anyrate, a few' steamei-s flying its flag, and it is generally believed had important shipowners associated with it, while Mr Sleigh, so far as is known, did not possess a single vessel. Whatever I the motive was, however, it is quite evident that a serious injustice was done ; to the Union Company when, it was not allowed the opportunity of modifying its tender,, in accordance with the more 1 favourable conditions for which Mr Sleigh stipulated. If the Government had adopted the course which, it is clear, ifc would have been only equitable to i adopt, it is highly probable that by this time a monthly service to South Africa would have been successfully inaugurated. Instead of that, what do we find ? The negotiations between the Government and Mr Sleigh liavo been in progress since February last, and not only are they not yet concluded, hut Sir Joseph Ward admits that he is doubtful as to whether a contract will be signed at all. In the meantime, our producers, for whose goods a lively demand would certainly have been experienced in South Africa if direct or virtually direct steam communication between this colony and the Cape and Natal had been established, see the trade • steadily drifting away to. other quarters. It is , almost questionable whether New Zealand has not l'ost her chance, and , whether it is not too late now to make the eftort which should have been made , twelve months ago.