The Sun.
London, England, 1859-07-08 00:00:00

- THE SUN, LONDON, FRIDAY EVE/41ING, JULY 8, 1859.

able to go fully into the principle oil which the service was
conducted. It was a question intimately connected with our
defences and the maritime supremacy of this country.
With regard to the Cunard_ line, there had been a great

competition, which had tended to drive the American-ves-
sels from the sea. In the discussions relating to postal ser-
vices there had often been a difference of opinion between

he Admiralty and the Post-office.

The Past-office natu-

rally wishod all the contracts to be made with sole reference
to financial considerations, _ but _ the Admiralty was often

actuated by motives of a pOlitical or social character. The
Treasury had hitherto had to act as arbitrator between the
two, and it would be very important to lay down some
general rule for its guidance. (Hear, hear.)
Mr. MARSH insisted on the desirability of having but
one route to Sydney, and of adopting that by Aden in pre-
ference to that by Panama. If there were only one line and
any packet happened to break down, the next ship might
pick up the mail and forward it without much delay. He
believed that by adopting the Aden route alone it would be

possible to substitute a fortnightly mail for the monthly one
without increasing the cost. (Hear.)
Mr. CRAWFORD said the real question that would
suggest itself to hou. gentlemen, after reading the papers
relating to the Galway contract, awl also those relating to
the Mediterranean contract, was, whether some rule could

not be laid down to place the matter on a more satisfactory

footing. There was one matter of very great importance,
however, which had not yet been referred to—namely, the
way in which this country was likely to be concerned in the
great network of telegraphic communication which was
spreading itself over the globe. England had hitherto en-
joyed a great advantage in being the postal carrier of the
world, for even the Americans had been obliged to give
up to us their lines of ocean postal communication. Still
it was probable that the telegraph would supersede to a
great extent the post as the means by which the commerce
of the world must in future be carried on ; and therefore it

was that the subject of telegraphic liries became one to
which the committee might most usefully direct its atten-
tion. (Hear, hear.)
Mr. GEORGE trusted that the Chancellor of the Ex-
chequer would not insist on the alteration which he had
made in the wording of his resolution The communication
between London and Dublin stood on a footing very diffe-
rent from the generality of contracts. It was not a contract
between a company and one department of the public ser-
vice, but it was a contract entered into by several depart-
ments in pursuance of an act of Parliament previously
passed. On the faith of that arrangement no less than
£300,000 had been borrowed, and to a great extent expended

in the building of steamers of superior size and construction.
Lord DUNKELLIN said the resolution as it originally
stood was unexceptionable, and hoped that the observations
of the right hon. gentleman would not have the effect in
any way of biassing the committee. With respect to the
Galway contract, he had only to observe that as it had been
signed, the public faith was pledged to hold it inviolate.
Mr. WILSON said the Government had no intention
whatever to disturb the Dublin contract. They desired to
make the inquiry complete, not to re-open the question of
the communications between this country and Ireland.
With regard to the large increase which had taken place in
the estimates for the packet services, the hon. gentleman
(Sir S. Northcote) had partially explained the cause. It
must be remembered that the previous plan having broken
down, the Government had required the colonies to pay a
portion of the charge. The Australian colontes in this
way contributed £90,000 a-year ; the Cape, £20,000 ; and
the Indian Government £50,000. These sums would go
far to cover the increase. (Hear, hear.)
Mr. HENLEY approved of the proposed inquiry, but
cautioned the house against entertaining any very sanguine
hopes of a speedy report. Some time ago he was a member
of a committee on the subject of only one mail, and that
investigation occupied a very considerable period. Hon.
members, therefore, might judge how long the researches
of the proposed committee would last.
Mr. BIOUVERIE said there was one matter connected
with this question on which he should like to come to a
clearer understanding—he meant the Galway contract.
(Hear.) It was out of that contract that the present inquiry
arose; and without wishing to- prejudge the question, he
must say, after perusing the papers submitted to the house,
that a more reckless, more hasty, more inconsiderate waste
of public money had never been entered into. (Loud
cheers.) He doubted whether in the terms of the resolution
the committee would have power to inquire into the matter
there being, as he understood, not a formal contract but
only an agreement for a contract.
Mr. WILSON—There is a contract.
Mr. BOUVERIE—Then of course it would form a sub-
ject for inquiry before the committee. (Hear.) There were
two grounds on which it was open to objection. In the first
place, it was a reckless and inconsiderate expenditure of the
public money ; and in the next place, the Government had
been guilty, towards what seemed to be a very respectable
company in Liverpool, of conduct which nobody would be
guilty of in his private affairs. (Cheers.) The late Secretary
to the Treasury appeared to be very much pleased with the
manner in which the Chancellor of the Exchequer had in-
troduced the subject ; and no wonder. No doubt it would be
very convenient to the late Government to have the whole
subject consigned to a select committee, which would re-
port a year hence when the matter, so far as the public was
concerned, would be dead and buried. (Hear, hear.) What
were the facts ? A company applied to the Newfoundland
Government and offered to carry the mails from Ireland to
that country and thence to New York and Boston. The
home Government agreed to go shares in the subsidy with.
the Government of Newfoundland ; and there was a Trea-
sury minute on the 7th of October, 1858, authorising the
advance on certain terms specified of the sum of £1,500, in
addition to the subsidy which it was supposed the Govern-
ment of Newfoundland was also willing to grant. In
the minute referred to, the Government left it to the Govern-
ment of Newfoundland to determine whether they would en-
ter into a contract with the company represented by Lord
Bury, or throw the service open to public competition, or
enter into an arrangement with Sir S. Cunard. Lord Bury
went out to Newfoundland, and arrived at St. John's on the
21st October, and on the next day he concluded a contract
with the Government there, subject to the veto of the Go-
vernment at home. The contract was however approved by
the Home Government; and therefore for the present year
both Governments had agreed to the contract withthe Galway
Company. On the 31st October the Liverpool Company, to
which reference had been made, wrote to London, stating
that they understood there was some question about the
North American packet service, and that being connected
with an independent company trading with America—no
doubt greatly to the convenience of the public and to its own
advantage—Ahey wished to know whether they would have a
fair opportunity of tendering. On the 9th November Sir C.
Trevelyan wrote back as follows :—" I am desired by their
lordships to state that when a new postal service is about to
be established by the Government it is their practice to in-
vite tenders by public advertisement." (Hear, hear.) This,
be it remembered, was afterthe Government had parted with
the possibility of advertising tenders for the present year.
of January this Atlantic
Company forseven years at the rate of
3a 1 er ha
offered r.)
to contract
0a 00,
pa er
voyage, . t the
or beginningx o
00 a-year. The Government
adopted a very sensible course; they referred the offer to
the Peat-office authorities; and on the 4th February those
authorities made their report, which was in the strongest
possible terms against the contract. The report was a very
able document, and he should hate scarcely conceived It
possible that the Government, after reading it, could at
once enter into the contract on the very terms which had
been condemned by the Postmaster-General. (Cheers.)
The hon. baronet (Sir S. Northcote) had reminded the
house that he was a member of a committee which had
reported strongly in favour of short contracts. It was
true, he added, that the Government which had preceded
his own had disregarded that report. Now that might be
a reason why he should complain of the Government to
which he had referred. But it could be no reason why the
hon. gentleman should himself fly in the face of his own
report. It appeared that on the 22d February last the
Treasury agreed to contract upon the terms offered by the
company. It was rather a singular part of this history
that on the very day pn which this agreement for a con-
tract was assented to by the Treasury Lord Derby was
asked a question in the other house with reference to the
subject. The Treasury minute, " Write to the Atlantic
Royal Mail Steam Navigation Company that my lords will
be prepared to enter into a contract as proposed," bore date
22d Feb. On that very day Lord Stanley of Alderley in-
quired whether any contract had been entered into. Lord
Derby replied that "her Majesty's Government had not
entered into contract for making Galway the port of depar-
ture for the mails, but that a proposition had been sub-
mitted to the Treasury by one of the Atlantic steam com-
panies for a regular fortnightly service from Galway to
some port in North America. That proposition was under
negotiation upon the terms submittedby the company ; but
before any arrangement was concluded inquiry would be
made as to the extent of the benefits to be obtained from
such communication, the solvency of the company, and
security would be required for the carrying out of the con-
ditions of the contract in a satisfactory manner." It ap-
peared, therefore, that at the very moment when the Trea-
sury had agreed to sanction this contract, Lord Derby was
stating to the House of Lords that the matter was still un-
der consideration, and that no definite contract had been
entered into. On the 23d February the Liverpool company,
which seemed, like most Liverpool merchants, to be pretty
much alive to its own interests, seeing this report in the
papers, wrote to their member, expressing alarm about the
Galway contract, referring to the statement that all tenders
would be open, and wishing to know how the matter really
stood. In April, two months afterwards, the Treasury—
after distinctly stating it was their practice, when a new
postal servic-3 was about to be established to invite tenders
by public advertisement, thereby affording to all parties the
opportunity of competing for the public service—wrote to
the Liverpool company to this effect :—" My lords admit
the expediency, as a general rule, of inviting tenders by
public competition when new postal services are about to be
established, under circumstances in which the principle of
competition is properly applicable ; but the case referred to
in your letter is quite exceptional." (Cheers and laughter.)
The treatment of this company by the Treasury was treat-
ment such as no gentleman would use towards any man of
business with whom he had transactions. (Hear, hear.) lie
had had no communication with the company ; he did not
know one of them ; his opinion was formed solely from
reading the papers and comparing dates. What was the
first fact with which the house and this committee would
have to deal ? In the face of a lengthened and reasoning
report from the Postmaster-General, alleging reasons which
were perfectly conclusive why this contract should not be
entered into, the Treasury, without giving any reasons
whatever upon paper, had thought fit to enter into this con-
tract for seven years, which would saddle the public with a
payment of about £72,000 a par. (Hear, hear.) They said,
" My lords cannot regard this as a mere postal contract ; it
comprises considerations of a more extended character."
(Hear, hoar.) No doubt it was not a mere postal contract—
(hear, hear)—it did comprise considerations of a more ex-
tended character. (Cheers.) Upon the papers as they ap-
peared the whole proceeding displayed a most reckless and
inconsiderate dealing with a great question. It was stated
in the course of the correspondence that it was very
desirable to encourage this great Irish line. He would
not enter at all into the question whether the Galway
route was a good one or not; he merely referred to the
mode in which the question had been dealt with by the
late Government. If the scheme was a wise and pro-
per one, which it might be, there was a different mode of
opening it up—a mode which had been indicated by
the Secretary of the Treasury himself. It was said that
the new line would be of great service to the et owds of poor
emigrants from Ireland, who were now forced to come to
Liverpool in order to go to America. But the Treasury
into
view no business to take a consideration of that kind
view when Oealing, with this matter; it was simply a postal
question and not an emigmtion question; and if they thoutrl!t
that facilities ought to be given to the Irish people t 4 emi-
grate by that route, they should have come to the house
and asked its assistance for the purpose. The first contrat
which was made with the company was justified on this
ground ; but on its being referred to the Admiralty and the
Postmaster-General they discovered that it exempted all the
vessels of the company from the operation of the Passenger
Acts ; and it had to be cobbled up, with the assistance of the
emigration commissioners. It would be the first duty of
the committee to inquire seriously into this matter.
Mr. HORSFALL said he had been the first to bring this
subject under the notice of the house, and he had been
taunted with being jealous, as member for Liverpool, of the
interests of Ireland. This motive he disclaimed, and he had
stated the very opinions which Nr. Bouverie had just ex-