The Timaru Herald. SATURDAY, JANUARY 11, 1902.

Timaru Herald, Volume LXXVI, Issue 11654, 11 January 1902, Page 2

The Timaru Herald. SATURDAY, JANUARY 11, 1902.

Although Mr Spreckels, after an alleged first refusal, accepted the terms offered by the New Zealand Government in connection with the San Francisco mail service, he is very far from being satisfied therewith. He is now in communication with the Federal Government of Australia with a view to coming to an arrangement undei which the Oceanic Steamship Company would provide rapid communication between Sydney and San Francisco, and special express trains across the United States from the Pacific to the Atlantic, connecting with swift steamers across the latter ocean. It : would be a fortnightly ser/ice more rapid than anything that has preceded it, and if the proposed arranger merits were adhered to, there would be a distinct gain of several days. In return the company want a big subsidy and a contract for years. There would be no port of call in New Zealand, though the colony could connect with the mail steamers by a branch service to Suva. It is not likely'' that the Federal Government will fall in with Mr Spreckels' proposals, notwithstanding the apparent advantages offered. On the whole, it would be bad policy on the part of the Commonwealth to assist in bolstering up a United States company, which, favoured by the American shipping laws, is doing its best to cut into the Pacific trade, greatly to the disadvantage of British commerce. The Federal Government already have excellent mail services, which, coupled with cable facilities, are amply sufficient for the commercial requirements of the Commonwealth. An exchange says:—"lf a fortnightly service between America and Australia is in the future to be demanded by the development of trade, the Oceanic Company will endeavour to secure the trade whether itreceives an Australian subsidy or not. The payment of the subsidy which it derives from Amp-rim, is indicative of the desire of the Government at Washington that American shipping should capture the trade between Australasia and the United States; and the Commonwealth Ministry , may reasonably argue that it is no part of its function to assist American shipowners in the accomplishment of this end." 1 We shall be glad if the Australian Commonwealth declines to enter into arrangements with the Oceanic Company, and we look forward to the day when Australasia will ba connected with Britain by a firstclass service by way of Vancouver. Auckland obstruction is the main difficulty which has to be contended with.