THE COLONIST.

Colonist, Volume VII, Issue 662, 1 March 1864, Page 2

THE COLONIST.

NELSON, TUESDAY, MARCH 1, 1864. THE PANAMA ROUTE—MR. CROSBIE WAED'S CONTEACT. "We have received by the December fiiail a copy of the articles of agreement made 'between Mr. Crosbie Ward and the Intercolonial Koyal Mail Steam Packet Company, respecting the New Zealand mails by the •Panama route, and also the Inter-provincial service. The agreement, which is dated 17th December, in its preamble states that Mr. Ward enters into the contract " under and by the powers and provisions of the New Zealand Postal Act, 1858, and acting under instructions to him for that purpose given by the Governor of New Zealand for the performance of the services hereinafter expressed, and for the extension as hereinafter mentioned of the contract made by the articles of the 28th May 1858." These last named articles are those entered into with Her Majesty's Government for the carriage of the New Zealand and Australian mails from England, and also the conveyance of the Inter-provincial mail. ' We have looked over the New Zealand Postal Act of 26th June, 1858, which repeals all former acts; but we find no powers therein given to the Postmaster to enter into a special and independent arrangement for the carriage of mails from England, on behalf of New Zealand alone and irrespective of the co-operation of the Australian colonies. However, the power may be included in the instructions given by the Governor to Mr. Ward. The contract consists of 31 clauses, of the more important of which we give a synopsis. It appears that Wellington is fixed as the port of arrival and departure. By clause 1 the Inter-colonial Company agrees to provide a sufficient number of steam vessels to con-1 vey mails between Wellington and Panama (eacli way) once in each calendar month. It also provides for the Inter-provincial service. The Company shall furnish a sufficient number of good and efficient steam j vessels on the Panama route. Of this fleet of ocean steamers there must be, up to Ist September 1865, at least three of not less than 1250 tons burthen, builder's measure T nient, with engines of not less than 250 nominal horse.-power. After Ist September there must be four vessels of this size. The Interprovincial service shall be conducted by a sufficient number of steamers of not less than 350 tons, and with engines of 70 horse power, "in addition to the steam vessels of that minimum tonnage and horse power which the company is now obliged to maintain by the articles of 28th May, 1858." The Company is bound to convey the Ocean mails between Panama and Wellington, and vice versa, in 720 hours (30 days) I each way, and to perform the interprovincial service at not less than eight nautical miles ! j)ot> Lour. Failure to do thia incurs a penalty of £100 for each complete day of 24 hours behind time on the ocean route, and £50 in the inter-provincial service, such penalties being remitted if it is shown that the delay arose from causes beyond the Company's control. If the Ocean voyage is completed in less than 720 hours, the Company shall receive a premium of £100 for every complete 24 hours within that time. If the steamer is late in starting from either Panama or Wellington, there is a penalty exigible from the Company of £10 per hour for the first 24 hours of such delay, and £. § for each hour that thereafter elapses until the vessel shall proceed to sea. Power is taken to have constructed a room on board in which letters may be sorted. The Company shall be paid for the ocean services £63,000 per annum; and for the inter-provincial service the further sum of £5000 per annum, " in addition to all moneys payable under the articles of agreement of 28th May, 1858, by monthly payments for all distances not exceeding 5000 statute miles per calendar month, which they shall run in the performance of the Inter-provin-cial services by these presents and the said articles agreed to be performed; and for all milage in excess of the said limit the sum of ss. per statute mile." The two sums named make up £68,000, — : the £5000 for Interprovincial services being in addition to the subsidy already paid for these services. In a recent letter from Mr. Ward, the present cost of interprovincial service is set down at £15,000, which makes the total sum which Mr. Ward has covenanted to pay out of the New Zealand Revenue, £83,000 per annum. There is not a word respecting Australia bearing any share of this great annual outlay. - "Both parties to these new articles of agreement are liable in a penalty of £4000 each to the other, in case of non-performance of the agreement.

A table appended to the agreement fixes the 25th of each month as the date of departure from, Panama, and the 7th of each month as that from Wellington. The agreement, which will endure for five years, shall come into force on Ist Jkfarch, 186$, by which date the Company must have three of the large ocean steamers fully equipped, and ready for service.