The Sun.
London, England, 1856-09-15 00:00:00

NEW AUSTRALIAN MAIL CONTRACT COM.

PANY.

A meeting was held at Glasgow last week of the com-
pany-engaged in the new Australian mail contract. At
its first formation it bore the inappropriate title of the
European and Columbian Steam Navigation Company,
and its capital was 410,0001. It is now styled the Euro-
pean and Australian Royal Mail Company, and the
capital is to be 500,0001., with power to borrow to the
extent of one-fourth. This increase of capital has been
deemed expedient in consequence of the company having
acceded to a request of the Government to provide a
steamer to carry the mails between Malta and Mar-
seilles, while they have also resolved to increase the
capacity of the vessels intended for the service between
Southampton and Alexandria from 1,600 tons and 350-
horse power, as originally proposed, to 2,300 tons mid
500-horse power. They likewise contemplate having
five steamers instead of four to perform the work be.
tween Suez and Sydney. Under these circumstances
their ultimate outlay is estimated as follows :
Two steamers, European, 2,380 tons, and Colum-
bian, 2,300 tons £130,000
One steamer, Oneida, 2,320 tons 60,000
One steamer, arranging for with Messrs. J. and
G. Thomson, of 2,860 tons, builder's measure-
ment, and 650-horse power, Clyde measurement 86,750
One steamer, arranging for with Messrs. Scott and.
Co., of 2,320 tons, 500-horse power, Clyde mea-
surement,
One steamer,_arranging_ with Messrs. Lawrence

Hill and Co., of tons, 500-horse power,
Clyde measurement 70,000
One steamer, for service between Malta and Mar- _

seines, say , 25,000
Expense of refitting three steamers 20,000

•
Expense of ' furnishing three new steamers, say 10,000
Six barges for coaling at Aden

477,750
If the fifth steamer is built for outside service .... 70,000

Supposed amount £547,750

The contract is for five years, at 185,000 per annum,
and the continuous monthly service between Sydney
and England is to commence in January next. The
outward passage from Suez to Melbourne is performed
in 39 days, and the homeward in 35, under penalties of
501. for a delay of one day, 1001. for two days, and a
progressive increase of 501. for every additional day ;
^4 re-"hip, however. being limited in the aggreErte
to the amount of subsidy apphcablo to the individual
voyage. The offer of the Peninsular and Oriental
Company was to perform the service for 140,0001., but
under certain stipulations, which were deemed inadmis-
sible. Upon the refusal of their terms the latter
company protested that the Government had thrown
aivay 45,0001. per annum, since the company would be
unable to maintain the promised speed, and had under-
taken the contract only because the extra 45,0001. per
annum would cover an amount of fines such as to
enable them to be several days behind time on
each voyage, ' and yet receive more than the
Peninsular and • Oriental Company had demanded.
I❑ reply to these assumptions the new company have
addressed a letter to their shareholders, denying the
right of the Peninsular and Oriental Company to make
a charge against toeir competitors of a deliberate inten
tion to break faith, and pointing out that the penalties
in question were not assented to until after the Govern-
ment had been urged to adopt in preference the usual
test hitherto practised of ascertaining the speed of the
vessels to be employed before admitting them to the
service. " Haying agreed to them after vain attempts
to substitute the speed test for them, the company,"
it is remarked, " cannot be expected to submit to the
latter also." Under all the circumstances, and es-
pecially taking into consideration the advantages to be '
hoped from the line being independent, and, through
a part of the route, competitive, there is reason to
believe that the Government have made the best choice
in their power. This admission, however, must not
be held to affect the argument against the unsound-
ness of the contract system generally. A strong opinion
prevails that if the Government had declared from the
first that it would ieave the ocean conveyance of letters
as open to competition as that of other articles, allowing
shipowners to charge whatever the merchants and others
might think warranted by their relative speed, fleets
both for passengers and mails would have rapidly grown
up in proportion to the demand; and the disgrace of all
the delays of the past four or five years would have been
avoided. But it was now too late to revert to the experi-
ment, and souse arrangement like that just concluded
was unavoidable. The route vitt the Cape, however, is
at present free from contract boats of any kind, and
there are experienced persons who predict that, if the
Government will but issue a notification that it shall
remain so, private enterprise will soon achieve results,
as far at least as the passenger traffic is concerned, far
more satisfactory than any that have yet been contem-
plated.—Times City Article.