The following are the principal passages in a memorandum on the contract with the P. & O. Ca., sent by Mr. Provand, M.P. to the members of the House of Commons.
There are three substantial arguments against the contract.
First,—Its inadequacy to meet the reasonable postal facilities which are necessary between this country and India, The contract is for a weekly service, which we have had with India for more than 20 years past, and a brief statement of the conmercial development of India meanwhile shows how necessary it is to have increased postal facilities. In 1867 the export and import trade of British India amounted to 70 millions sterling. It now amounts to about 140 millions, and before this postal contract comes to an end, it will, no doubt, far exceed 200 millions. The increase between 1867 and 1887 in value does not show the increase in quantity, as the lower values of the present time, as compared with 20 years ago, represent much greater quantities of produce and merchandise to make up the amount. The trade, measured by its capacity, has therefore much more than doubled during the last 20 years, i.e., it employs more than double the shipping, labour, ete, 'The' internal trade of India has also developed enormously during the same period, and is in rapid process of further development. Since railways were introduced into India, increased commercial connections between this country and India have been created. Nevertheless, the post-office authorities, by this contract, propose that there shall be no greater postal facilities, down almost to the end of the century, than there were 20 years ago.
Telegraphing to and from India is very costly, and the amount expended by the mercantile community on this se is much increased by the infrequency of our mail communications with India, w.—The next reason against the contract is that the term of 10 years is too long a period, Tt shuts out any. improve in our Mail Service to the East, notwithstanding the proved necessity for this, before the expiration of 10 years.
The contract is divisible into two parts—the India Service and the China Service, and I shall first consider the former. It is almost certain that before the expiration of 10 years, railway communication completed to India, at least for the conveyance of mails, as there are now only a few hundred miles of a gap between the Russ Trans-Caspian Line and the North Wi part of our own Indian Railway System. Neither engineering nor diplomatic ditticulties can prevent, for any long period, those tivo lines being joined, and when this is done Bombay will be about 9 or 10 days from London, against 17 days by the route.
Tum now to the Chi without considering the possibilities of the next 10 years, note what way by done at There is the French line, fortui; tly, mail time, new con: wes vary from 34) to 39} days, according to the monsoon, there is the (new) North German Lioyd's line monthly to Shanghai, 37 days. Pacific—There is the British-American line, San Francisco 3 to 4 times mouthly, say an average of 87} days.
(4).—There is the (new) British line, cid Vancouver every 3 weeks, 374 day:
Contract. But when the railway is opened to India, even the North Pacific Lines will cease to be the quickest route to China and Japan, letters will then go rid Calcutta and thence per steamer to Shanghai which to that port will occupy 254 days from London, with ample time for stoppages en route, These facts show the error that will be committed in making a contract for ten years for such an inefficient service as the \""Thind—"The next objection is, that the P. & O. Company undertakes to supply.
amount of the Subsidy is much' too high, A word as to the effect of subsidies on our commerce and on the P, & O, Ca pany itself. An impression prevails that must subsidise the P. & O, Company or in some way we shall lose prestige, that our commerce will suiter, and that foreigners "will somehow capture' our trade. These [are delusions. Prestige comes by power, subsidies produce weakness, they take away the incentive to action.' A company that can get its dividend without working for it does not work. If there was any truth in the popular view there would be no foreign lines trading with the East, and Company should be relatively a gigantic concern, but the facts are that
Company subsidies almost double that, of ile we Iuave been paying the
started lines to the East and the what ig now proposed, the foreigner Company is not relatively a gigantic concern, Until the Suez Canal opened it had almost a monopoly of steamer trade with st (there was only Holt's line from el), but so great has been the ment of our commerce with Eastern Countries since then, that notwithstanding the enormous subsidies which have been paid to the P. & O. Company, it has not kept its place with other Companies who wave received nothing whatever but what they earned by ordinary trade, as it is today neither the largest Company trading with the East nor has it the fastest steamers.
The other delusion is that subsidies some+ how benefit our commerce. This is only true when the line of steamers cannot be infamed by the ordinary trade, and it is absolutely untrue where there is trade Subsidies act like protection. They create monopolies against other steam-bout lines, and check instead of encourag ing the commerce of the countries which pay them, Further, the receivers like ther protected interests, frequently make 1 illegitimate use of the protection given '0 them, and this has been done by the P.
There are at present therefore four lines! & O. Company.
Instead of hindering the to China and Japan carrying mails in from foreigner from capturing our trade, this 344 to 40 days. The services are about Company has in different ways made use of equivalent to eight mails per month, and to its position to assist foreigners. Contin-this our Government propose to add by the ental woollens, shipped from London, say new P. & O. Contract, a fortnightly service to Shanghai, are carried by the P. & O. to China, the times for which between Company at lower rates of freight than the London and Shanghai vary from 87} to 42; woollen manufactures of our own country. days, and this is to continue until 1898.
Bar iron of continental manufacture is car-By the lines now running we have eight ried by the P. & O. Company from London mails per month average 4 say S7} days, to Shanghai for 4s. Gd. per ton less than and costing us nothing in subsidies, and in they will carry bar iron of British manufac-some cases from a quarter to a half less ture; that is to say, this country, by subsistage than our post office must charge for dising the P. & O. Company, has indirectly letters sent per P. & O.—a service which bonused continental manufacturers who will average, say 39 days, and involve an compete with ourselves. This is not ex-annual outlay of £265,000. actly the way it was contemplated subsidies Competition has just commenced by the would be used to benefit British commerce. North Pacific Route, and it is certain that Governments, when questioned about con-the P. & O. Contract (which does not begin tracts, usually say that having advertised until next year, and in point of speed is for tenders and considered thuse that were already obsolete) rill in the course of a year sent in, they could do no more, and they tree, be by many days the slowest of all the will always be found to have something to es. Here again paying a fixed subsidy say about "untried contractors," but every is shown to be a mistake. If like the At-contractor must be an untried one in the antic Lines the payment was by weight of Eastern Mail service except the P. & O, mails carried, the P. & 0. Company would company, as no other Company has ever either have to make good time or lose mai carried Mails, and in dealing with those work. who tendered every Government has set up Inthe near future the time to Shanghai; a monopoly in favour of the P. & O. Comby the North Pacific Route will not exceed pany to such an extent, that they cannot 30 days, now get tenders from the Lines that run
Text read from the printed page and cleaned; old type leaves the occasional error.