THE PANAMA MAIL SERVICE.

Wellington Independent, Volume XXIV, Issue 2783, 12 January 1869, Page 3

THE PANAMA MAIL SERVICE.

[From the Nelson JS.vami?ier t Dec, 26.3

The Panama Mail Service which a fortnight ago was regarded as virtually defunct, the last steamer under the present contract, having, as it was then supposed, sailed from Wellington with the mails for Panama, is now, we find, to be galvanised into new life, and an attempt will be made to continue the service at least for another year. We are sincerely sorry that this should be the case, speaking in the interest of the shareholders of the company ; and if it be undesirable for those immediately interested that the service should be continued, the public will not benefit by seeing it prolonged.

It is not necessary here to discuss whether it was wise or unwise on the part of the Government of New Zealand to seek to establish a mail service between the colony and England by the shortest and most direct route, or of the company in undertaking it. The undertaking had many attractive features — the problem whether steam vessels could maintain a service across so great a breadth of Ocean as exists between Wellington and Panama being not the least important. Thirty continuous voyages, and only on one occasion the vessel arriving late at Panama, has settled the feasibility of maintaining steam communication across the greatest breadth of ocean to be met with in any part of the world ; and even the return trips, with their prevailing strong head winds, have been rendered equally successful by establishing a coal depot at an intermediate station. For a youg and small colony, unaided by the Home Government, to take upon its shoulders the responsibility of starting such a service, was a bold act, and the spirit in which it was undertaken by the parties who engaged to perform it showed a spirit of enterprise worthy of the highest commendation. When in future years a weekly steam mail service shall link in the bonds of commerce the continent and islands of Australasia with the vast territories of America, and bring England within thirtyeight days' travelling distance of these shores, it will be remembered that the Panama, New Zealand, and Australian Royal Mail Company first showed the practicability of the route, and that the youngest of Great Britain's colonies promoted the service, assisted only by the Government of New South W»»les.

If we Lave to regret the present failure of the experiment, brought about in a measure by unforseen circumstances, we may feel confident the day is not far distant when under more favorable auspices, the experiment will be successfully made of running mail steamers from Australian ports to the coast of America, though probably San Francisco will take the place of Panama as the point of communication. This route, besides saving three days in the passage to the American coast, would link in the chain of communication Tahiti, and all the numerous islands of the Pacific now fast rising into importance. It will avoid the unhealthy Isthmus, and the West India Islands, always subject more or less to the scourge of yellow fever; and by means of the railway from San Francisco to the Atlantic seaboard of Northern America, the travelling will be pleasantly diversified, and the duration of the whole journey considerably shortened. But this success will, we feel confident, not be achieved by the existing company ; and in the face of an annual loss on traffic of at least £50,000 a year, and the pressure of an overwhelming debt, it is madness to make the attempt. The present position of the company appears to be this : A very large debt ia owing, and to satisfy itß more urgent creditors,

mortgages have been given over, we believe, its entire fleet of steamers,- several of these now being held by their respective, commanders on behalf of the mortgagees. The Mataura, the finest of the Panama boats, was seized on behalf of a mortgagee on her late arrival in Sydney, and the like fate awaits the Kaikoura on reaching the same destination. In the belief that the mail service with Panama was practically at an end, the General Manager gave notice to that effect to the Government, and the Eakaia, which left Wellington on the Bth met, was considered to be the last boat that would convey a mail to Panama under the existing contract. But after permitting matters to go to this length, certain of the shareholders have^ resolved to give the service another year's trial, in the hope that better things may come of it.

This attempt of the company to struggle on against adverse circumstances can have but one result, and we should more admire the spirit which induced it were we certain it sprung from pure motives. An attempt is made in ihe circular of the 20th October to throw the blame of failure of the Panama mail service on the representatives of the company in the colonies, who are there directly charged with profuse expenditure and with neglecting to secure as much trade for the steamers as might have been obtained. Now it is notorious to all persons conversant with the service, that Captain Benson, since he became General Manager, has kept a very tight band over the expenses of the company, and if he has erred at all, it has been on the side of economy rather than that of extravagance. The books of the company in London must show, we are sure, that the expenses of the interprovincial and intercolonial boats have been diminished, and the regularity with which they run their respective routes is proof that their efficiency has been maintained. The second charge is, we believe, equally unjust. As far as our observation enables us to judge, the agents of the company are a remarkably active and zealous body having the welfare of their principle* at heart, and who never spare themselves to promote their interests. This making a scape-goat of men at a distance who cannot defend themselves, is both ungenerous and unjust, and must have arisen from gross ignorance, or a desire to divert the eyes of the shareholders from the management at home.

Bow, has the management of the company in London been so excellent, so economical, so far above all question, that it can afford to cast dirt at the colonial management ? We will state a few facts which hare come to our knowledge — facts which are perfectly well known in Wellington, though we have never seen them commented upon by the press of that city. When the commissioner* sent out by the company arrived in Wellington about four months ago, there was in stock in the company's warehouse and in the Government bonded stores, wines, spirits and other stores used in their own ships, of the value of £25,000. How many years consumption this may give, we cannot say, yet this stock has since been supplemented by one or more large importations. Of the quality of the stores thus supplied in excess of demand, nothing favorable can be said, and so bad was one of the importation of wines that it was all returned to London by the General Manager. We have heard it stated, but for this we will not vouch, that the invoice prices of the articles furnished from home are largely in excess of what better articles could be obtained for on the spot. But think of the loss of interest on £25,000 worth of goods locked up in stores ; the cost of insurance ; the deterioration in some instances and consequent diminished value ; the expense of Btorage room — and this may be judged of when we state that, after sinking a large sum of money in erecting a warehouse of its own, the company is now paying to the Government storage rental at the rate of more than £600 a year because its own warehouse will not contain the goods poured in upon it. Then in the matter of coal, shipments are sent to Panama from Wales, costing 46s a ton, when coal from x\"ew South Wales can be furnished which, for 34b, will produce an equal amount of steam, and save exchange on remittances.

These are a few of the facts which may be heard discussed on Wellington beach, and the truth of which cannot be called in question. Who is responsible for this frightful waste of capital, and the parties who benefit by it may be ascertained by shareholders in London, though we are unable to furnish the clue. Some persons clearly are interested in keeping the company going, if only for another year, either to obtain further orders, or get paid for those already supplied. The shareholders of the company are evidently being victimised, and the £25,000 proposed to be raised to enable it to rub along a few" months longer, will simply be so much additional loss to the subscribers.