The Sun.
London, England, 1860-05-31 00:00:00

THE SUN, LONDON, TB U RSDAY EVENING, MAY 31, 1860.

NAIL PACKET CONTRACTS.

--•ar
The select committee appointed to inquire into
the contracts which have been made at various
times by her Majesty's Government and steam-
packet companies for the conveyance of mails, have
made their .report. A defective system of com-
munication between the Government departments
affected by these contracts, and the absence of any
provision for parliamentary control, are, the com-
mittee says, among the subjects to which it has
directed special attention.
Since the year 1837, the parties by whom, on be-
half of the Government, all such contracts were ac-
tually entered into, have been the Lords Commis-
sioners of the Admiralty ; but the power of authoris-
ing-them to be formed, and of prescribing their
terms and conditions, is acknowledged to belong
to the Lords of the Treasury, -who communicate
with the Postmaster-General, the Secretary of
State for the Colonies, and the Lords of the Admi-
ralty themselves, in reference to the postal. colo-
nial, or nautical questions involved. From the
evidence laid before the 'committee it appears
that in making and modifying-such contracts there
has been a want of concert, and an absence of a clear
and well-defined responsibility in the Admiralty,
Post-office, and Treasury departments; that the
respective functions and provinces of the Treasury
and the Admiralty have not alway been duly ad-
hered, to, and that the Treasury has been led to
authorise very important contracts without having
before it the elements necessary for a right deter-
mination._ Thus in the case of the new Dover con-

tract in 1854, the Admiralty in the tetid—ereiitetit
required that six vessels should: be provided, when.
confessedly four or at most-five were sufficient, for
the purpose of getting the contractors to purchase
from them some of the steamers, very inefficient and
unfit for the purpose, then employed by the Admi-
ralty in carrying the Dover mails (which had not
previously been done by contract), and known by
them to be incapable of attaining the speed which
they stipulated for. The formal tender was accom-
panied by a separate letter from the parties offering
to perform the service for a considerably lower sub-
sidy than that stipulated for in the formal tender,
if they should be allowed to employ only five
boats, and for a still lower sum, if, instead of pur-
chasing any of the Admiralty boats, they should
themselves build new boats. It does not appear
that this letter was laid before the Treasury ; and
next year the Admiralty took upon themselves,
without the sanction of the Treasury, which *as
essential, as the only legitimate authority for
such an act, to enter into a new contract, extend-
ing the period of endurance from four to eight
years. The practical result of this course of pro-
ceeding was, that the Government became bound to
pay a yearly subsidy of £15,500 to contractors, who
in a separate letter, accompanying the original
formal tender, had offered, for £12,000 a year, to
undertake the service, for the period ultimately
given, with five efficient boats (amply sufficient for
their purpose), to be provided by themselves, the
Treasury not having been made aware of that lower
offer, and not having authorised any contract for
that period. Other instances in which want of
system in the communication between different de-
partments had led to great waste of public money,
are referred to by the committee. After referring
in this way to the Australian and Wrest Indian
packet contracts, the report goes on to say that,
" In the cases of the renewal of the Cunard contract
in 1858, and the granting of the Galway contract
in 1859, the defects above referred to, and the evils
incident to the system, were also very strikingly
exhibited." The report traces the history of the
Cunard contract, which was first entered into in

1840. The period was fixed at seven years. This
contract was subsequently renewed, and in 1857
application was made for its further renewal. Cir-
cumstances had greatly changed, however, since
1840, and communication with the United States
had been very much developed. A committee was
appointed to investigate the subject, and they in
their report said they saw no sufficient reason for
continually renewing such contracts for periods
equally long, after the object had once been at-
tained. Remonstrances against a renewal of the
Cunard contract had also been received from

Canada, the inhabitants of which country wish to
obtain some advantages from the English mails.
Assurances were sent to Canada that when the ex-
isting contract expired Canadian interests would be
regarded in the new arrangements; and, relying on
this, the Canadian Government entered hitt, a con-
tract with the mon treal and Ocean Steam Packet
Company, the subsidy, £4s,ooo,being provided en-
tirely from colonial funds. The Cunard application
was supported by the Admiralty, but opposed by
the Post-office. The Twasury disposed of it by a
minute, dated March 2, 1858. Eventually, how-
ever, without any notice having been given to the
Canadian Government, the contract was renewed
till 1867. The Canadian Legislature expostulated,
and begged that at least no contract might be made
with any other line ; but their address did not reach
this country till after the Home Government had

sanctioned the formation of the Galway contract, to
the proceedings in reference to which the committee
now call attention. In 1858, a private company,
then, newly formed, and chiefly promoted by Mr.
Lever, by whose name it has since been generally
known, established a line of steamers for commercial

purposes, to ply monthly between the ports of Gal-
way in Ireland, and New York in the United States.
Their first vessel sailed on the 16th of June of
that year, and was entrusted by the Postmaster-
General with the carriage of a mail bag, as is fre-
quently done in the case of private ships start-
ing at times convenient for the Post-office. A

contract was shortly entered into with this company,
in spite of the remonstrances of the Liverpool
and New York Steam-packet Company, the ma-
nager of which urged that the company had more
than once offered to carry her Majesty's mail
free, for ocean postage, and urged that if any
mail grant was to be given between Galway or
any other port, it ought to be put up to public com-
petition; and further on the committee state that

they deemed it proper to examine Lord Derby, who
stated frankly and clearly the important considera-
tions of commercial and social advantage, in rela-
tion chiefly to Ireland, which had led him to sanc-
tion this new service ; and explained that, in autho-
rising the contract to be entered into with Mr. Le-

ver's—cornpany, without inviting competition, he
considered the preference duo to their enterprise in
first establishing a line of steamers from the port of
Galway. But it appears from his lordship's evi-
dence that, when he pronounced his decision, he
Was not in possession of some materials very impor-
tant for forming it, and had not had in view some
considerations which, in the opinion of the commit-

tee, should hays been essential elements in the de-
termination of the question. The committee, after
pointing out that, as a consequence of the contract
with the Galway line, this country is now support-
ing a line in rivalry with one subsidised by her
colony, say that it appears to them unnecessary 'to
discuss whether, under peculiar and exceptional
circumstances, it may be expedient for the House
of Commons to deviate from the ordinary practice
of voting the monies required to carry out contracts
which the executive Government have conclu•

sively effected within the limits of their autho-
rity. The fact, however, must not be lost sight
of, that in the Galway contract there was in-
serted, and for the first time in such contracts,* an
express declaration as to the subsidy being payable
out of monies to be voted by Parliament, and that
this was especially under the consideration of the

contractors: Under these circumstances it will of
course be open to Parliament to decline to vote the
committee money
for
is not carrying
preopuat
redthe
toconrtereaocnit,mbeuntd yourthis
course. After referring to the bill which has been
passed this session for transferring the enforcement
of postal packet contracts from the Admiralty to
the Postmaster-General, the report goes on to say
that the chief remedy for the evils of the existing
system will, in the opinion of the committee, be
found in a more efficient control by Parliament, at
a stage when that control ean be freely exercised.
At present no opportunity arises for any conside-
ration of a postal contract till a vote is proposed for
the first payment under it. Even, however, when
that vote comes on shortly after the contract is
entered into, there is nothing, if it be a renewal of
an existing contract at the same subsidy (though
in anticipation, by many years, of its natural term
of expiry), to warn the house that any change has
taken place ; nor does an increased subsidy neces-
sarily make the house aware of the fact, as the
addition may be for a supplemental service merely
grafted on that under the original contract. If,
again, it be for a new service for which extensive
preparation requires to be made, the vote may not
fail to be asked for till after the lapse of a consider-
able period, as in the case of this Galway contract,
which was entered into i a February, 1859, but the
service under which dr,es not commence till June,
1860 ; so that no oe/Jasion for a vote of money
could arise till the estimates for the year now cur-
rent should coma before the house. In the inter-
val, however, between the execution of a contract
contractors necessarily go on with
building ships, and making
tahnedi r the
pre vote,ir ans,
different arranoments, iiivokving expense, e‘nd, it

may be, obligations of a serious nature ; so that
when the question is raised on the vote, it is obvi-
ously impossible for the House of Commons to ex-
ercise its powers of control with that freedom which
is absolutely essential for the public interest, and
the right performance of its high functions.
The committee make the following suggestions
"1. Whatever may be tlie'distribution of the
business, the responsibility of. the Treasury should
be complete and effective. However lax the prac-
tice, the Treasury is now responsible in theory.
The decision on Post-office contracts is not a mere
Post-office question, but frequently involves consi-
derations of an imperial character affecting our po-
litical relations, our colonial empire, the efficiency
of our army and navy, and the spread of Our com-
merce. The public have a ri4lll to the real exer-
cise of the judgment of the -highest authorities on
matters so important, and your committee would
sec with regret that the action of the Treasury
should degenerate into a mere formal sanction of
the suggestions of some other department.
" 2. The' arrangements of the GoVernment should
secure that all information received by the depart-
ments- should reach the Treasury. It has been seen
that in giving their opinion on matters referred to
them, departments have not= thought, it necessary
to transmit the documents to the Treasury, and
that the latterhave come to decisions in ignorance
of information which might materially have -affected
their judgment.
" 3. Security should be taken that the decision of
the Treasury should be faithfully carried out. It
appears in evidence that in- one contract material
conditions contained in the Treasury minute had
been omitted by mistake, arorthat a privilege had
been inserted which the Tretesury had never sanc-
tioned or seen. The draft contract should be'tub-.
mitted, examined, and approved at the Treasury.
"4. Your committee would also suggest that,
previously to any contract being finally sanctioned
by the Treasury, draft copies should be transmitted
to the Admiralty, and to such other department of
the Government as might have an interest in the
performance of the proposed service, for the consi-
deration and observation of those departments.
" 5. As the management of the packet contracts
is now vested in the Post-office, subject to the
Treasury, arrangements should be made securing
to the Treasury a sufficient knowledge of what is
done."

The committee think that, as a general rule, new
contracts should be put up to competition, though
in cases of urgency Government should act on its
own responsibility, and they cannot conceal their
conviction that the well-working of any system
must depend on the careful attention of the execu-
tive, checked by publicity and the control of
Par-
liament.

and his wife, sons; and daughters were arrested as
hostages, and subjeCted to the torture. Pontillo, a
lieutenant of Maniscalco, half invented an armchair,
in which the,viotim is Beata on, a sort of gridiron;
under which is a pan of coals. • Bruno, another offi-
cer of police, ties the head of the victim between his
legs, and leaves him in that uosition until he states
what is desired of him.
' !Maniscalco, a name-
sake of the Director, has invented what is cal:ed,
in the slang of the sbirri, the " anjelic instrument,"
in which, by turning a screw, the limbs of the vic-
tims arc crushed. On one occusico ft man was sus-
pended in,the air, his arms being tkli to one
and his legs to another, and in that position an offi-
cer`of the police jumped upon his badrwld. beat
Mtn. The suspected persons are turned out (if .their
housed an the smallek pretest; fines; confiscatiox:s,
and pillage ruin all-who fall under the anger of the I'.
Director of Police: The -wonder is, not that, the
Sicilians rebel, but that they have bOrne such hor-
rors so long: It. is equally wonderful that the
Bourbons, having so fine a country, with so obedient
a people, should not have knoWn how to govern it,
but should have endangered their crown so that no '
one would,give two-years' purchase for it. These
pod. Sicilians' the feast political and revolutionary
of mankind, have been driven into rebellion by
sheer desperation:: They :wanted only peace and a
just Government; agents of police have converted
them into theorizers and Re-publicans.—Timcs.

IRELA ND.

DUBLIN, WEDNESDAY MORNING.

TIIE ARRESTS IN DUNDALK.
The .11'ercry Examiner—a moderate Roman Ca-
tholic journal—gives tlait._ folldwing version of the
arrest in Dundalk of a party of men charged with
being members of an illegal secret society :
" On Saturday afternoon, between 4 and 5 o'clock,
Sub-Inspector Supple, assisted by Head-Constable
Reilly and a body of police, arrested four men in a
publichouse kept by Jobn Adair,- on George's-quay,
in this town, on a charge of belonging. to an illegal
secret society. The arrests were carried out in the
most prompt and dexterods manner, the officers
coming upon the men while in the act of cogitating
on their mysterious designs. The men were safely
lodged in the police barrack, and afterwards seve-
ral other arrests were made in various part of the
town, and another on Monday, all belonging to the
same order, who, we understand, have been for some

time in the habit of making Adair's and other pub-
lichouses in the town the rendezvous for their illegal
meetings. Eleven men in all are in custody, and
we believe the authorities are on the track of others
who are concerned in the conspiracy, but it would
be premature to give the particulars at the present
time. We may state, however, that the whole
of the parties, those in custody and those under
suspicion. are of the lowest order of inhabitants, and
that the Newry Telegraph of yesterday has been
misinformed in stating that ' several persons hold-
ing a rather respectable station in life are said to
be implicated.' The following are the names of the
men now in custody :—Patrick Sands, labourer ;
John M'Shane, ditto ; George Burns, ditto ; Patrick
Kelly, ditto ; Patrick Corrigan, pig.jobber ; Thos.
M'Shane, labourer; Peter Grant, ditto; Bernard
Scanlan, cooper; Thomas Kelly, labourer ; Michael
F4n, ditto; John Hanlan, baker. The prisoners
were taken before Mr. G. Fitzmaurice, II.NI , on
Sunday and Monday, by whom they were remanded
to the petty sessions of Friday next, by which time
it is anticipated that the police will have the evi-
dence complete, and be able to go fully into the
charge against them. It is but fair to add that not
the least sympathy is felt for the prisoners' who
have brought themselves into so serious a position.
It has long been suspected that some of them were
connected with illegal societies, and they have often
been warned by the Catholic priests and other re-
spectable persons that their conduct would bring
them under the lash of the law."