The Sun.
London, England, 1861-02-23 00:00:00

PACKET SERVICE.

Mr. BAXTER, in calling the attention of the house to
the state of the packet service, said ho thought it right to
state that he was not connected with any party interested
in the navigation of this country; nor with any steamboat
companies; but he felt it was due to his own constituency, in
reference to the very large sums of money which the country
paid for packet service, that the people should get full and
fair value. The Cunard line of packets, for instance, entailed
an expense on the country of £173,000, and the Galway line
of packets, on the other hand, subjected the country
to tin annual expense of £78,000 ; in round numbers, no
less a snn-t than a quarter of a million sterling, for this
branch of the packet service. Now, that was by
no means satisfactory, and it would be different if her
Majesty's Government were to act with courage
and decision. Then as to the competitive manner
itt which those companies performed their contracts, he did
not think that the country ought to be called upon to sub-
sidise them. Ile Was free to admit that subsidies might be
considered necessary in such service in times past; but his
position was this, and he thought it unanswerable, namely,
that whenever they created competition on the ocean, those
subsidies ought to cease. (Hear.)
After a few words from Lord Dl.7.llRElzni aid Mr.
GREGORY,
The CHANCELLOR of the EXCHEQUER said that
his part was a simple one. He should not enter into a die-
cussion of the general principles which ought to govern the
conduct not only of Parliament, but of the administration
with respect to this question of naval contracts. He agreed
fully in the clear view of the case taken by the hon. mem-
ber, and on those principles the Government had acted
since they came into office. He was asked what steps had
been taken by the Government to compel the Cunard Com-
pany to act up to their agreement. He had received a re-
port from the Postmaster-General that day,istating that the
Cunard packet service was being performed satisfactorily.
The vessels employed exceeded greatly the requirements of
the contract, and they arrived and departed according to
the agreement. He was not prepared to state exactly the
sum of money actually paid to the Galway Company. He
had been asked what were the reasons that led to the ex-
tension of time to the 26th of March, and if the company
were prepared with a sufficient number of ships to carry out
the contract at that period. He did not think the Govern-
ment were open to any animadversion on that point. The
first official step taken in the house by the present Govern-
ment was to move for the appointment of a committee to in-
quire into the whole subject, and on the report of that com-
mittee the Government had acted. The Government were
no parties to the original contract. They did not think it
a wise or politic engagement, but after the report of the
committee they thought it their duty to carry it out, and
to extend, irrespective of any view of their own, every in-
ulgence to the company. It would not be fair on the
part of the Government to exclule from their view the fact
that much inconvenience had been endured by the company
owing to the delay that occurred while Parliament was con-
sidering their case. (Hear.) On the 25th of October, the
company made a proposal to the Government, that the ser-
vice should be only monthly until the 12th March, 1861; and
that then a fortnightly service should commence. The Post-
master-General said he could only comply with this propo-
sal on certain conditions which the company, not beingin a
position to fulfil, they requested, on the 7th of November,
that the contract might be placed altogether in abeyance
until the 2tith of March. That application was considered
by her Majesty's Government, who, although they thought
it to be a very large demand, felt it to be their duty to
accede to it, on condition that if at that period the company
were not prepared to carry out the contract, it should then
cease and determine. On the 24th of January the company
undertook to carry out that arrangement, and they de..
spatched a ship on the 24th of March. As to any rumours
respecting the transfer of the company's contract to some
other company, he was totally ignorant of any such inten-
tion, and believed those rumours had no foundation in fact.
(Hear, hear.)
The motion for the adjournment of the house until Mon-
day was then agreed to at 10 minutes after nine o'clock.