OCEAN MAIL SERVICES.

Otago Witness, Issue 1916, 6 November 1890, Page 13

OCEAN MAIL SERVICES.

(Per Pee's^ Association.) London, October 29.

The New Zealand Shipping. Companyhave declined the terms' 'of the Treasury for the renewal of, the" a'ife'ot mail' 'service to New Zealand," as' they consider %he 'amount,'insufficient. , It is thought likely that the ShaY, S^yill, and Albion' Company will accept a renewal.

(Fbom Oub Own Cobbespondbnt.j

Welunoton, October 30. It will probably be interesting if I explvin the exact present, position in regard to. the ocean mail services; First, as to the coming into force of the 2£d rate. This has been delayed for a considerable time— not, as stated,' through the aotieu of the Western' Australian Government, but owing to protracted haggling on the part of the Indian Government with reference to the allocation of the cost of a Bpecial fast mail train service -between Calais and Brindisi. ■ It is not known in New Zealand how this long vexed question has ultimately been settled ; but if, as alleged, Western Australia is now the only Government .standing out, it is evident some settlement of the more important difficulty must have been arriyed at, aB the Western Australian mail constitutes but a very small fraction of the whole matter. The New Zealand Government do not anticipate that whatever that colony may do or refuse to do will materially affect the main question one way pr another, and it is looked on as a matter of practical certainty that the new 2|d rate will come into general force on the Ist January 1891. So much for that. Next, as to the New Zealand service via Brindisi. Although the New Zealand Government do not feel justified in disregarding the resolution of Parliament that the postal' rate by that line shoald be 6d,in view of the fact ihat a reduction to 2|d by that route would involve a loss to the colonial revenue of 4£d per letter, yet Ministers also feel that it will be difficult for this colony long to stand oat of an arrangement agreed to by all the other Australian colonies, and that the commercial interests might be seriously prejudiced by even partial postal isolation. On the other hand, there is no doubt as to pecuniary loss being involved. At present, with the postage reduced to 6d, there is a loss of a Id per letter. Reducing postage to 2§d manifestly means a further lota of 3|d, which will not be in any way recouped. A large number of mercantile correspondents — especially in Dan* edin snd Ohristchurch — continue to send letters via Brindisi even during the last few years, when relatively the prohibitive rate of la was in force ; and there is no doubt this practice will be continued even if the rate were 6 1 as against 2|d by all other routes ; and as England would charge only 2§d outward by Put z (as 4d is now charged), an appreciable proportion of mails would certainly go by this route. It is not easy, therefore, to deal with the case satisfactorily, and it is deemed virtually inevitable that the general reduction to 2§d by all routes shall take place so soon as the new Parliament meets, and possibly sooner. Thirdly, as to the San Francisco service. It is generally agreed that New Zealand shall defray the cost of conveying mails between this colony and San Francisco both ways, and also that of transit across the Atlantic from New York to Great Britain. The Imperial Post Office will pay the cost of carrying outward mails from London to 'Frisco (including tbe transatlantic outward passage) and transcontinental tniia service between Jjew York, and '^risoo

both ways, allowing New Zealand also 12a per pound on outward letters from San Francisco to Nejy Zealand, which is in fact practically equivalent to paying the cost of the outward service from London to Auckland, assuming that to be the New Zealand, port of arrival, as will almost certainly be the case. Lastly, as to the direct service, New Zealand will pay the whole cost of the homeward service to London, but the Imperial Government will contribute toward the cost of the outward service at the rate of 12s per pound for letters, and half ■ postages on books and newspapers. This is in fact equivalent to defraying the cost of the outward service, for that is the rate of payment offered to the direct steam shipping companies. The New Zealand Government entertain no doubt that this offer, or some very slight modification of it, will shortly be accepted by the companies, for reasons set forth in one of my recent telegrams — namely, because otherwise the companies being still compelled to run at regular dates for the sake of their passenger traffic, would then have to convey all letters offered to them, and to be content with the very small gratuity allowed on " ship letters." October 31.

The Government were considerably surprised on reading ia the papers this morning the London cable messages per Press Association to the effect that the Now Zealand Shipping Company bad declined the t? r . s offered for a renewal of the direct mail service to New Zealand, on tbe grounds that the amount offered was insufficient, but that it was thought likely the Shaw, Savill, and Albion Company would accept the renewal. These statements are wholly inconsistent with the information received by the Government, and it ia believed that the cable message quoted mu3t have been sent under some misconception. On no point is the Government information more dear and positive than as to the certainty of the two shipping companies working together in absolute concert, and not the slightest shade of reason has been shown for suspecting any change of front in this respect. The question of the payment was virtually settled, and aa I stated last night the sole points remaining at issue, related to details, such as penalties for breach of contract or late delivery. The shipping authorities here, also, doubt the accuracy of the telegram.