7

F.—6

may from time to time order that such colony (hereinafter called ' a prohibited colony ') shall be prohibited from availing itself of such line of subsidised mail-vessels for the purpose of the transmission of mails, and every such order shall be gazetted." Clause 52 gives power to send back to any "prohibited colony " mails brought from there for delivery in any foreign country. New Zealand was evidently only acting much in the same way as Victoria had acted towards South Australia some nine or ten years earlier. At that time the mail-steamers did not call at Adelaide, and the South Australian mails had to be sent to Melbourne. Victoria was paying for the service, and asked for pro rata payment from South Australia, and actually seized and stopped her letters till an arrangement was made. This was referred to in the New Zealand debate already quoted (page 210), and in the South Australian Hansard of the 25th June, 1861, Legislative Council, page 274, the Chief Secretary is quoted as saying that it would be remembered that on two occasions, when they had sent their mails to Melbourne, the Melbourne Government had refused to put them on board the steamers, and had sent them Home by sailing-vessels. Evidently the whole subject was considered by the Home Government, for in 1861 Lord Newcastle sent a Treasury minute to the Governor of Victoria. The minute suggested that the final power of arranging for the Australian service should be left with the British Government, concluding: " Any colony which refuses to abide by that decision being at liberty to withdraw itself from participation in the contract, in which case its mails would be forwarded by private ships only." The principle is that of simple justice. If a swifter, more frequent, or in any way better service is obtained, the increased cost ought to be shared by those who share in the resulting advantages. It is clear that when the Oceanic Company inaugurated their swifter and more frequent service in 1900 they did so understanding that they would be paid by Australia at least the same poundage as before, and hoping that a more liberal payment would be made. Instead of this, they are expected to carry the Australian mails for an entirely nominal sum. Up to the year 1900 the various Australian Postal Departments issued annual reports, but the Federal Government has issued no reports for the years 1901-2-3. If, however, reports were now being published as formerly they would show that Australia is making big profits out of the San Francisco service. The allowance of 2s. per pound on letters is equal to Jd. per letter : the public are charged 2£d. for a letter to America, of which the steamer is to have one-fifth. On packets and newspapers the steamer is to have, perhaps, one-eighth of what the public pay. The following is from the Victorian Postal Report for 1900: — San Francisco Service. Dr. To sea conveyance paid by Victoria —Letters, 12s. per pound; packets, Is. 6d. per pound; newspapers, 6d. per £ s. d. pound ... ... ... ... ... 1,126 1 8 Land transit rates ... ... ... ... ... 42 5 0 1,168 6 8 Cr. By estimated postages collected in Victoria... ... ... 911 17 4 Deficit ... ... ... ... ... £256 9 4 If this be corrected on the basis of the payment now being forced on the company the following would be the result: — Dr. To sea conveyance paid by Victoria —Letters, 2s. per pound; £ s. d. other articles, 4s. per hundredweight, approximately... 140 0 0 Land transit rates ... ... ... ... ... 42 5 0 £182 5 0 Cr. By estimated postages collected in Victoria ... ... ... 911 17 4 Profit ... ... ... ... ... ... £729 12 4 It is quite safe to say that out of every £1,000 which is paid at present by the public as postage on mail-matter to America no less than £800 is retained by the Postal Department. What are known as the Postal Union rates are as follows: — Under Over 1,500 Miles. 1,500 Miles. s. d. s. d. Letters, per pound ... ... ... ... 1 9| 3 7 Other articles, per pound ... .. ... ... 0 2J 0 4J These are the rates generally payable by non-contract countries when sending mails by vessels under contract with other countries at least, this is as I understand it. It will be seen that the higher rates are payable for a distance equal only to one-fourth of the distance between Australia and San Francisco. It is doubtful if, when these rates were fixed, there was any thought of their being applied to such a lengthened voyage; at all events, an examination will show that the " letter " rate is 80 per cent, higher and the " other articles " rate 950 per cent, higher than the rates now tendered to the Oceanic Company. As evidence of the general tendency of postal arrangements, attention may be drawn to an agreement between the six Australian States, together with New Zealand, regarding the Suez service, which was made on the 21st August, 1885. The following is from clause sof that agree-