FEDERAL MAIL CONTRACT

Otago Witness, Issue 2782, 10 July 1907, Page 32

FEDERAL MAIL CONTRACT

BOND OF £25,000 TO BE FORFEITED « THE COMMONWEALTH CRITICISED, A NEW CLAUSE. MELBOURNE; July 2t.' - The representative of the Mail Syndicate intimates that certain finaaiual houses- in London have arranged to supply the whole of the £1,750,000 worth of de^ bentures in connection with the contract.. Consequently Victoria's guarantee maj not be needed. July 3. Mr Deakin stated to-day that the Government, being convinced that tho Mail Syndicate was unable to carry on except with indefinite delay, cabled to Captain Collins last night to cancel the contract. Fresh tenders Trill be called for the mail service to-morrow. Arrangements are being made with' the Orient Company to carry on tiie service until tiie new tenders have been dealt with. July 4, Mr Deakin stated that the mail contract was cancelled because the additional bond was not forthcoming. The original bond: of £25,000 is to be forfeited, though it is understood that the Government does not intend to deal harshly with the syndicate. Mr Deakin, in Teply to questions- in the Federal House of Representatives, said the Government had already taken steps to get the forfeited mail contract bond converted into cash. New tenders would: be called immediately, returnable in three months. They would provide a 'specific time for building the steamers, and the penalty for failure to fulfil the contract would be double that in connection witb the first contract. July 5. Under the new mail contract a clause will be inserted for % price to .take in the ports of all the States of the Common* wealth, with special mention of Brisbane^. Particulars regarding the new mail contract are promised for to-morrow. The deposit, which was £2500 under the oldi contract, is increased to £10,000, and the successful tenderer will have to give bonds for £15,000 that he will complete the contract. July 8. Tenders for the new mail contract will close on October 3. The terms are as previously cabled. LONDON, July 3. The Shipping Gazette understands that' the Mail Syndicate had arranged its debenture issue. J July 4. The Shipping Gazette, referring to the cancellation of the mail contract, says :. " The Commonwealth has made a pretty hash of the business. Whatever one may think of the contractors' lack of tact, those who in the future interest them> selves in the carriage of mails and produce will be advantaged by the widened knowledge they have gained of the methods and eccentricities of antipodean statesmen."