MAIL CONTRACTS

Otago Daily Times, Issue 18612, 21 July 1922, Page 5

MAIL CONTRACTS

AMERICAN POSTAL DEPARTMENT. OCEANIC COMPANY ACCEPTS PROPOSALS, Pnaa Association —By TWcgraph—Copyright NEW YORK, July 19. While fibs San Francisco offices of the Oceanic Company refused to divulge the exact character of the proposals of the Post Office which it has accepted, it is learned that the terms axe that the Post Office will renew the mail contract for a period not exceeding six months at the former annual' contract price of 196,000 dollars, pins a sum at the annual rate of 80.000 dollars for the transportation of Wax Department material The War Department formerly paid the Oceanic Company 20,000 dollars annually for transporting mail and other Federal supplies to the Government stations along the company’s route. The Wax Department leamt, when)the old mail contract lapsed, and the company threatened to discontinue its service completely, that it would cost 80,000 dollars to transport by any other company the same materials which the Oceanic Company had been carrying for 20,000 dollars. The Post Office Department, on making inquiries, learned that a Canadian company would transport mails to the same points touched by tho Oceanic Company for 100.000 dollars annually. Thus, by offering to let the old contract price for the mail service stand for half a year, and by increasing the War Department’s allowance to the Oceanic Company, with an offer to submit to Congress the Oecanic Company’s demand fox double the price for the mail contract, it is felt that the Oceanic Company has been met more than halfway, Congress will probably ultimately concede the Oceanic Company’s demand. A. and N.Z. Cable.