The new contract with the P. and 0. Company was
accepted by the House of Commons on Friday se'nnight, though not without some murmurings. Mr. Ayrton objected to the shortness of the time allowed for tenders, ridiculed the speed fixed-10 miles an hour in the Mediterranean and 9i in the Red Sea—thought the "partnership clause," by which Govertnnent pays up to 500,000/. if the dividend does not reach 6 per cent., but claims half profit if it exceeds that amount, most unjustifiable, and strongly denounced the long term of 12 years. Mr. Samuda coincided as to speed and as to partnership, but thought 400,000/. fair pay for the increased ser- vice; and Mr. Childers, though thinking the contract unavoidable, accepted it with regret. As to the money, we doubt if the Government, with France granting such subsidies, can help itself, and excessive speed is difficult to maintain. It might, however, have had a six years' contract for half a million a year, and have thus avoided the partnership, and taken advantage of new circum- stances. It is reported that the rate of postage is to be raised to meet the new expenditure, but we believe the adoption of fixed days for letter-writing will greatly iucrease the correspondence.
Previous page
