THE NEW STEAM SERVICE.

Otago Witness, Issue 2604, 10 February 1904, Page 30

THE NEW STEAM SERVICE.

ENCOURAGING FARMER IMMIGRANTS.

THE PORTS OF CALL. (Feoji Otjb Own Cokbespondent.)

WELLINGTON, February 6. 'I hear it stated unofficially m shipping circles that the Government has arranged ■with the Federal Steam Ship Company to sun the steam service to West of England ports. The matter was evidently settled ■by the Cabinet some days ago, tor it is known that the unsuccessful tenderers have tad their deposits returned. Tho subsidy is not stated, but from the fact that the Shaw, Savill, and Albion Company, which offered to run the service without a subsidy, has had its deposit returned, the probability is that the Federal Company also has agreed to run the tervice without subsidy. February 8. Particulars of the new steam service to Western ports of Great Britain were made public by the Cabinet on Sunday night, ■and published here this morning. The tender accepted is that of the Federal Company, and, as Burmised in my telegram of Saturday, no subsidy is asked for. The •company will provide a monthly service of direct ships to and from the ports of Liverpool, Glasgow, Bristol, and Cardiff, and it is provided that the rates of freight are not to exceed those that have hitherto been current between New Zealand and London. The Government has also arranged with the company for reduced passenger rates to the colony for intending settlers of the farminp; class, who will be able to hook direct from the above ports to New Zealand as follows : — Second class, £27 ; "third class, two-berth cabin, £12, or fourberth cabin, £10.

Three tenders were received for the service — viz., from the New Zealand Shipping Company, the Shaw, Savill, and Albion Company, and tho Federal Houlder Shire line. The first-named company, however, withdrew its tender. All three tenderers offered to carry on a service without a subsidy, relying upon securing the whole or a portion of the Government cargo. The Shaw, Savill, and Albion Company, howfever, only undertook io give a &erv'ce one ■way (to England). The Federal Company agreed to run 12 trips each way in a year, and its offer was considered the better ot the two, and the Government accepted it. The company asked that it should be given all the Government cargo offering from England, but it has now agreed to accept a compromise of one-third of the Government cargo from London and all the ordinary Government cargo from the West of England ports. The steamers are to be cf the highest class, 100 Al at Lloyd's, refrigerateS, and with all modern improvements. A further pari of the arrangement is that in the event of the rates of any other line being lowered at any time the fates of the Federal line aie not to exceed those ruling by any otlwr line.

Sir Joseph Ward considers that the contract has been arranged on most satisfactory terms to the colony, which is to secure an excellent service without any risk to itself. The service is to b° for three years, and it will be inaugurated immediately the contractors can complete thoir arrangements. The Minister says theadvartages of the present arrangement are such as should ensure to producers nnd shippers from this end. as w°ll i»s merchants who are importing from Ei. gland, an -excellent service, in addition to which it will now, in all probability, result in the various lines trading lo the colony giving cur people the benefit of a competitive service *"o nnd from the same place?. Should this be brought about it will be a very excellent thing for ihe colony.