VANCOUVER MAIL SERVICE

Otago Daily Times, Issue 14087, 16 December 1907, Page 5

VANCOUVER MAIL SERVICE

STOPPAGE OF THE SUBSIDY. Press Association-—By Tolegra.itli—Copyright. LONDON, December 14. (Received Doe. 15, at 4.52 p.m.) Although tho Ottawa Free Press describes the cancelling of tho mail subsidy us retaliating against the Comnumwealth, the Times' Ottawa correspondent. declares that tliis opinion is not endowed, for it would be absurd for Canada to retaliate against hev sister colony vlifMi Mr Dealdn had promised to negotiate for better trade arrangements aftor tho Commonwealth tariff has been -settled.

Shipping and commercial .circles were considerably perplexed bv the Ottawa cable, published on Satuwkv. to tho elFeet that tho Canadian subsidy'of 180,000dol, which has been paid since 1891 to tho steam lino from Vancouver to Australia, has been discontinued.

. At proseut the Can.'uliin-Auflfralnui line is under tho management, of tho Union Steam Ship Company, which runs tiie Moaria iu conjunction wiHii the New Zealand Shipping Company's Miowcra and Aorangi. Steamers leavo Svduev for Vancouver every four weeks, calling at Brisbane, Suva, Honolulu, aiij Victoria (8.C.), the journey occupying about 24 days. Mails arrive in Now York fouu to five days after arrival at Vancouver a).id in London in about 11 days from Vancouver. Tlie Canadian Government subsidises tho lino to tho extent of £37,000 annually, while Australia contributes £26,0€0 ami Fiji £2280, or a total subsidy of aioul, £66,000. The present contract expires next July, and only recently Sir James Mills, managing director of tho Union Steam Ship Company, arranged for a' rqnewal for a ])eriod of two years from July next. It also arranged that the Miowfura was to be withdrawn in March next and bo replaced temporarily by tho Muraium, and ultimately by a larger steamer which is now boing built on the Clyde by tho Union Company. Tho intelligence caune as a surprise to the Union Company, -atul Sir James Mills, when interviewed on tiro metier by a Daily Times reporter, stated that another interpretation- of the cabin -was possible, as the company wa-s in receipt of advico from London to tho elfeet. lint the information in the London papers from Canada was that the subsidy did not appear in the Canadian Government's Estimates. This being so. it may bo tlmt in view of tho agreement to renew the contract, the matter was regarded iu Canada merely as a departmental one, and if 60 the omission of tho subsidy from the Estimates would not justify tho cable that had been sent to the colonv.

The Hon. ,T. A. Millar (Minister of Customs), who lias followed the passage of the Tariff Bill in tho Commooweakh Parliament very closely, infornjod ow reporter that ono of tho proposals in tlio tariil was to place a hoa-vy tax on agricultural and other _ farming machinery. The information in the cable regarding the stoppage of the subsidy was meajire, but he was of opinion that, if tho cahlo was correct, the Canadian Government was in this way retaliating on tho Coinmonwealth.

It would appear that at the last moment the Federal llouso of Reprcsentativee, with an inkling perinaps of the intention of the Canadian Government, reconsidered the question of u heavy duty on agricultural machinery, as a message from Melbourne, published on Saturday, 6tated that the old rates on harvesters and 6trippers of £12 and £6 had been reverted to.

Further information on tho matter from Canada, will bo awa'iicd with interest, as the subject is of great importanco to this Dominion.