The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1888-08-24
A BLOW TO COMMERCE.
The Oceanic Company About to With
draw It's Steamers.

A strong probability exists that, in
consequence of the refusal of the New
Zealand and Australian Governments to
vote the annual 100000 subsidy, the
mail service between this country and
the Australian colonies will have ceased
to exist after October next. The Oceanic
Steamship Company for the past two
years has held the contract, and the line
being popular one, has made consider
able profit out of it. The service by the
San Francisco route is more rapid by
several days than via the SueZ Canal,
and of late has almost paid for itself, the
Government receiving back the entire
money paid in subsidies in the shape of
postage on mail matter. The Spreckels
contract expires in November, and the
Oceanic COmpany's agents in New Zea-
land have spared no trouble to have it
renewed. The Colonial Governments,
however, Directing to bear the entire
burden of a service which was beneficial
to the people of this country as well as
to the New Zealanders, asked the aid of
Postmaster-General Villas, and later of
his successor, Postmaster-General Dick
inson, in securing a subsidy from this
Government to keep up the service.
The replies received were not SAUSAGE
tory. AS interpreted the Washington
postal authorities agreed to make an
annual payment OF $4,000, but only on
certain conditions. These conditions
were understood to give the Government
exactly the same, if not more rights, as
regarded withholding payments for de-
LAYS, etc, as possessed by the Colonial
Governments, which paid much larger
subsidies. The ministers OF the colonies
named some time ago announced their
practical agreement to this, but when
this subject came up in the lower houses
a few weeks since the matter was thor
oughIv discussed and the proposed subsl-
dies were voted down, the principal argu-
ment against the bills being, as under
stood. the lack of more liberal action by
the Washington authorities. Private
letters to the Oceanic Steamship Com
pany by the Alameda to-day confirmed
all previous reports of this action;
AS understood, this means that the
company will not be paid something ike
100000 year which they have been
receiving from the Colonial Govern
ments. This is a serious loss. Freight
and passengers cannot alone pay the eX-
pense of the steamer service, and 1t was
announced at the Oceanic Company's
offices here to-day that in consequence OF Of
the action, or rather inaCtion, noted, all
steamers-the Alameda, Zealandia and
Mariposa-will be withdrawn from the
Australian service after October 18th, If
the situation at that time remains I'M
changed.
The Australia will continue running to
Honolulu as heretofore, and possibly
one of the other steamers will be added
to this line. The Oceanic Company
owns all these steamers, and 1t is under
stood that already arrangements for their
service on another route from this port
are being made.
The Colonial Government are plan
ming for other steamer service for the
transportation of the English mails.
Propositions have been made for Cana
dian Pacific steamers to run between
Vancouver and Autralian ports. A plan
to run steamers to FIJI, where the con-