THE STORY OF A 'FIZZLE." (From Our Own Correspondent.) WELLINGTON, July 23.

Otago Witness, Issue 2524, 30 July 1902, Page 12

THE STORY OF A 'FIZZLE." (From Our Own Correspondent.) WELLINGTON, July 23.

On the motion of Mr G. J. Smith papers were today presented to Pailiament giving copies of thfi draft contract with the Blue Star Line Steamship Company for the South Afnran steam service, with full particulars of the tenders received in response to the advertisement calling for the same. The Union .Steam Ship Company on 12th February la'-i, wrote as followa : — "As agents foi the New Ze^and and South African Steamship Company we offer to provide a regular tprviLS between this colony and South Afr ca with three fcteamers sailing monthly, or as near thereto as possible, the steamers to be of 3000 to 4000 tent, gross ipgister. and capable of maintain. ng 9to 10 knots : to have ample refrigerating spanwithout first-class accommodat on, but to have third-class accommodation fitted if found necessary; maximum lates of freight to South African ports to be as per advertisement ; maximum rates to Fremantle not to exceed those quoted to South Africa. Term to be three years, and service to com m^nee in May, or within two mouth*, after the contract is signed. The .subsid3'- to be at the rate of £27.000 per annum, payable monthly Option to call at N.S.W. port for coal one way, when contractors tons.'dcr it inexpedient to &end steamer to Westport or Greymouth for her own coal. A fourth bteamer to be piovided when the trade requires irore frequent s-aihnqs." Mr Harold C. Sleigh's offer was in the following terms- — "In conformity with the a.dvertisemecit appearing in the Times dated 2&th January. 1902, I beg to make the following tender for the service required : — Sailing : The steamers to leave New Zealand at inlorial-s of not les^ than one month. Loading Poit-*: The steamers to load at four porla m New Zealand, calling at each in geographical order, and remaining at each port a sufficient time to load cargoes offered aud booked for that voyage, the Government of New Zealand having the option of naming any four leading ports, always provided that euch option is declared and the ports named a reasonable time be-fore the arrival of the steamers, in New Zealand. It is understood that these ports are to be such as are usual for .these size steamers to load at. Discharging ports : Steamers to discharge at three ports in South Africa— viz., Durban, Port Elizabeth, and Capetown. The steamers are also to have the liberty of calling at Beira, Lorenzo Marquez, and East London, should sufficient inducement be offered by shippers in New Zealand to extend the service to these ports. Rates of freight to be as follows —Wheat and flour, 50s per ton of 22401b; barley, 32s 6d do; oats, 35s dobran, 40b do; potatoes in sacks, 40s do; potatoes in boxes, 37b 6d do of 50 oubio feet; hay (oaten or meadow), 37s 6d do of 50 cubic feet; frozen meat and dairy produce, together with all cargo carried in insulated chambers, at rates not less than those in existence between New Zealand and London; horses aud fat cattle, at £12 10b per head on the number shipped; other ! cargo, at rates not lea» tk°" those by mail

companies between New Zealand and London, aud as scheduled by the New Zealand Government. Four first-class medern steam<i\s to be employed in this service, to give a dead-weight cargo capacity of not less than 4000 tons upon a draught of water which will allow them 10 discharge along-t-ide the wharves at South African ports where such facilities exist. Steamers to maintain a .speed of not less than 11^ knots ; steamers to be fitted with modern appliances for the discharge of cargo ; steamers to be insulated for the carriage of about 500 .tons of -efrigerated produca; to provide accommodation for 50 siloon passengers, as required by the Government ; passenger fittings to be modern and of good design ; to be permanently fitted with modern horse-fittings on the upper deck for the carriage of horses and live stock; space to be piovided for the proper carriage of mails. Provided that sufficient cargo cannot be supplied by the colony of New Zealand to fill these steamer 3, then the owners are to have the liberty of calling nr Australian ports to fill up at rates not under those quoted herein. Poit of registry: Stf-amers are to be registered at a New Zealand port, and are to 'be victualled and docked as far as practicable in New Zealand, all necessary repairs and renewals being made in that colony if possible. I beg to offer to maintain the above service in a proper manner for the yearly sum of £30,000, payable in equal instalments upon Ih^ completion of each round voyago. It being impossible to at once commence thU service with the actual steamers requirH, I propose to inaugurate it with fiiat-class carp boats, replacing these as quickly as the insulated steamers can be piuced m tho trade." On March 6 Mr Sleigh v.rote :— '• W ith reference to my tender of the 11th ult., I now beg to "advise you that owing to arrangement-3 since made I am, if necessary able to increase the spfed of the proposed service to 13 knots, and shall bo obliged by your announcing this to the Government of New Zealand. London, 10th April.

Mr Donno. scovtary to the Department of Industries and Commerce, submitted the following memr. to the Minuter:— ''I have carefully re\iewed the terder of the ISe-.v Zealand and South African Steamship Com pany for tlio abo\e spruce received in resrponse to the advertisement dated January 25, 1902. I be* to draw your attention to the following conditions of the tender compared witli the condition- contained in the advertisement :- Clause in acUertis-ement reads, ' Preference will be given to tenders offering highest speed and be<=t pa-senger accommodation, sp-aed to be not less than 10 knots per hour.' Tho above-mentioned company offers three steamers capable of maintaining a speed of nine to 10 knots without first class pa^pnqer accommodation,, but to have third class accommodation fitted if found necessary. This m> ans slow steamers with the least possible pa&senger accommodation, which is the re\erse of the requirements of the Government, as indicated in the achertisement. Then, this company proposes to carry on the service with three slow steamers. If monthly tailings are to bemaintained this is an absolute impossibility. Xo doubt the tenderers are aware of this, as they qualify the clauoe referring to monthly sailings by adding the words 'or a- near thereto as possible.' If the Government accepted the New Zealand and South Aft ican Steamship Company's offer to carry on the service with three steamers of the type offered it would mean a steamer about every seven or eight weeks at most. This would mean paying an annual subsidy for seven opportunities of shipment, as against a monthly service, which would give 12 opportunities of shipment. I have also reviewed the tender of Mr H. Sleigh. The terms and conditions offered by Mr Sleigh are consistent with Die advertisement, excepting that he require.-, the option of calling at three Australian ports to fill up with cargo for South Africa should the steamer? fail to fill in New Zealand. As the Government gives no guarantee of cargo, this is not an unreasonable request, and. except as regards a deviation — which should be avoided if possible,— l fee no grave objection to granting the option. In other reEpceta the tender provides for a very suitable service, with many ad\antages to the colony."

On the Bth of March Mr Sleigh wrote, in answer to a query as to when he would start the eervice, that he would probably be in a position to do so in from five to six months. He was unable to state the exaofc date, as owing to the increased speed of 13 knots desired by the Government this would lead to some alterations of his arrangements. The Government replied that it could not waj£ for live or six montha

On March 12 Mr Sleigh wrote that he was in a position to berth the first steamer within four weeks from that date.

On tho 17th of April the Government (through the Agent-general's office) wrote accepting the tender of Mr Sleigh, to make a caUi deposit of £3000 within seven days aud to give satisfactory security of £20,000 for tho proper performance of the contract, the Government to allow the steamers to call at one. West Australian port to fill up. On tho 24th of April Mr Sleigh sent a. cheque- for £3000. He provided for a call at three Australian ports. On April 29 the> Government agreed to the call a.t three Australian ports to fill up. They asked for tho names of those who were to execute the security bond. On April 30 the Government agreed to a call at one West Australian port and two other Australian ports provided sufficient freight could not be obtained in New Zealand. Mr Sleigh dpes not appear to have come, to the mark with the security bond. On May 6 and May 8 letters were again written to him asking for 'the names of those whom he proposed to execute the security bond. On May 9 Mr Sleigh said he was not in a position to give this information definitely until lie was ia possession of the draft deed of the contract. He added that a limited company with an. underwritten capital of £200.000 was being" formed to carry out the service, and would b". prepared to execute the bond. Tho chairman of the company -was Lord Teynham, with an efficient board of directors. H& suggested as an alternafcii-e one of the large guarantee societies to gi\o the required bond.

The telegrams between the Government and the Agent-general follow. Then comes the first proof of the draft agreepient. The> r-ontract was to be for three, years, with four first class steamers of not less than 4000 tons, speed not less than 134 knots. Th& annual subsidy was to be £50,000.

Traction engine-owners persist (says a youthern exchange) in ignoring laws made for their guidmce. The engines do not bear owners' names as required by law, neither do they carry red lights when travelling' by night.