The Timaru Herald. WEDNESDAY, SEPTEMBER 16, 1885.

Timaru Herald, Volume XLII, Issue 3422, 16 September 1885, Page 2

The Timaru Herald. WEDNESDAY, SEPTEMBER 16, 1885.

In spite of offering a subsidy of £30,000 per annum the Government have been unable to get a contract concluded for tbo continuance of tho San Francisco mail service under the prescribed conditions as to speed, &c. This of course is not saying much for r the value of the lino for the conveyance '' of goods and passengers. The trade 35 must bo small indeed if the profits from it together with un annual nubßidy of

i £30,000 are not sufficient to keep a couple or three steamers going. The contrast between this and the Direct Service to England, started without any subsidy at all, and now employing nine magnificent steam vessels of the highest class, is indeed striking. Only two tenders were received for the 'Frisco service, and it is rumored that these were sent iv by the Union Steam Ship Company of New Zealand, and Messrs Pearce and Go., who own tho English boats employed m the present service. In neither case, bowever, were the tenderers -willing to carry out tho contract m the terms prescribed by Parliament, and hence neither offer could be accepted. The Governmunt, wo learn from Sir Julins Yogel, are now endeavoring to make arrangements with the New South Wales Government, for a service between Honolulu and Sydney, calling at Auckland, and connecting at Honolulu with the steamers running between the latter place and San Francisco. If such a service is arranged for, it certainly ought to be made on very different terms from those contained m the last contract. Sydney being still the terminus will again reap the bulk of the commercial advantages to be derived from the service. When the previous bargain was made, however, New Zealand had to bear the lion's share of the cost, and it will not soon be forgotten how, towards the close of the contract, New South Wales slipped out of it altogether, hoping to have the service continued, and to derive the same benefit from it as before, without contributing any portion of the expense. Fortunately m their hurry the New South Wales Government overlooked a little provision m the law which interfered materially with their plans, Iwt as it was the contractors, we believe, were heavy losers by the attempted piece of sharp practice. The fact is the service is of very little use to this colony now, and New Zealand can afford to bo just as independent m the matter as New South Wales. We have shown m a previous article that the trade carried by the steamers between Auckland and San Francisco is a mere bagatelle, and if cargo is to be transhipped m future at Honolulu, the fact is not calculated to materially improve the chances of the traffic growing. The same circumstance is not likely to in--1 crease the attractiveness of the route to passengers, or to expedite the mails. As regards the latter, we have pointed out that a fortnightly service conld easily be maintained by the direct steamers, at a less cost than the subsidy proposed to be given to the , 'Frisco service. The great argument m . favorof maintainingthe latter line isthat it offers an alternative route to tourists, whose visits to the colony it is of course desirable to encourage. This is ■ ii luxury, however, for which, m these depressed times, wecertainly cannot afford to pay too dearly. If New South Wales is to securetheterminus of the service, to share m its postal and passenger advantages, and to carry off the bulk of the trade, it is quite clear that that colony J must be prepared to act very much more liberally than she did ou the pi-e---3 vious occasion. It is certainly not worth New Zealand's while to enter into such a contract except at a comparatively small cost.