THE OCEAN MAIL SERVICE.

Timaru Herald, Volume LI, Issue 4929, 28 August 1890, Page 3

THE OCEAN MAIL SERVICE.

{Press Correspondent.)' WELLINGTON, August 26. The Postmaster-General having as yet received no reply to a telegram he sent some days ago to the Imperial Government relativo to the ocean mail service, has cabled again tonight. This telegram is m fact an ultimatum, and if no reply, or an unfavourable reply, be received m reference to Imperial assistance, the New Zealand Goverament will not move further m that matter but will proceed to deal with the wholo question as best they can under the circumstances. Failing any help from the Homo Government (of whioh ' no expectation is now entertained), tbo Sun Francisco service|mußt of course be abandoned The latest estimate shows a minimum loss of £17,000 yearly on that service at the 2Jd rate. It is made up thus— Probable subsidy required by contractors between New Zealand and San Francisco about £40,000 ; add coet ' of conveyance between Han Francisco and ' London (hitherto paid by Imperial Govern- ' ment) £8000, total £48,000. From this must ' bo deducted, (1) proposed Amerioan subsidy, ' £12 000; (2) Australian postures, £7000; i (3) New Zealand postages, £10,000 ; total, ' £29,000, leaving a net cost to the colony of £17,000. At present the only course open ' seems to be that which was originally mentioned, viz., for New Zealand ' to undertake the homeward despatch ' by the direct line, leaving tbe Imperial ' Government to send the outward mails by whatever routo they pleneo, which would almost certainly be that via Suez. Two difficulties have, however, turned up. In the first place, it is feared that the direct lines will not consent to a fixed timetable and ' penalties if they have only the homeward ' mail contract m the terms proposed. This { would mean irregularity. Secondly, if the outward mails are sent by the Oriont and ' P. and O. (i.e., the Federal) line, their transmission from Melbourno to New Zealand would bo merely by the next boat leaving after tbe arrival of the Federal steamer, thus involving a detention of possibly a week m Melbourne unless New Zealand entered into a special contract for prompt despatch direotly after arrival at Melbourne, and this would mean a heavy extra expenao, so that the position is m every way rather embarrassing.