FEDERAL MAIL CONTRACT.

Rangitikei Advocate and Manawatu Argus, Volume XXXII, Issue 8855, 4 July 1907, Page 2

FEDERAL MAIL CONTRACT.

•T’ press Association— Copyright, Melbourne, July 3.

Mr Do skin stated to-day that Government' being convinced that the mail syndicate was unable to carry on except with indefinite delay had cabled Captain Collins last night to cancel the contract. Tenders will be called for the mail service to-morrow. Arrangements are j being made with the Orient Co. to carry on the service until the new tenders have been dealt with. The Governor’s Speech at the opening of the Federal Parliament confirmed the cancellation of the mail contract, and also stated that an arrangement was almost completed with the Orient Company to continue the existing contract tor another year. . „ ~ „ Regarding the extension of the Vancouver mail contract it was mentioned that tho arrangement was subject to the concurrence of the Governments of Canada and Fiji, which participate in tho subsidy.

London, July 3. The Shipping Gazette understands that the Mail Syndicate had arranged a debenture issue. Mei.bottene, July 4, Mr Deakin stated that the contract was cancelled because the additional bond was not forthcoming. Tho original bond of £35,000 is to he forfeited, though it is understood Govreumeut do not intend to deal harshly with the syndicate.