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(*«..!*• * ,.,:,., -jJii* # f 31 » I j^^. aR f CORRESPONDENCJE ON THE PROPOSED CANADIAN EAST MAIL SERVICE ' AI)I>l!i:SSKI> TO THE POS IM A S I'ER-GENERAL f AND TO THE ''TIMES. ^ 9 1 McCOllQUODALE & CO. Limited, Puinters, Glasgow and London. 1 8!)4. 25 BoTinvELL Stuket, (Jkasgow, 13/// Dcceiiihcr, 1894. The Rijj;lit ITonoiirable Arnold JMorlev, M.V., ]*08tin!i,ster-General. London. Sir, The report oi Lord Jersey upon the proceedings of the Ottawa Conference, iu so far as it deals with the Canadian Trans- athmtic and Pacific Postal Service, will doubtless be receiving tju; consideration of your (^'!])arunent as well as thit of the Ministry, and it may be of sei'vice that you should have at hand, in an accessible form, the correspondence that has taken place through the Tiiiu-s newspaper upon the subject of the Canadian Fast Mail Service. With that object we have printed the correspondence in the order of its date, and have prefaced it with the letter we addressed to yourself U])on the sul)ject in August last, and we hope it may throw some light upon the question which has been raised wi^h regard to the subsidizing of the services. Further copies of the coi'respondence may be bad on application to us. As regards the report itself, having only been able to obtain a copy to-day, we have not had time to do more than glance at it. We observe, hoAvever, that Lord Jersey is under the impression that while paying a large sum per annum to the Liverpool-New York mail steamers, the British Post OfTice gives no assistance to th(^ direct postal line between Great Britain and Canada. But this is a mistake, as the British Post Otrice has all along paid poundage on the mail matter carried by the Canadian mail steamei'S from Britain, as they do on that carried by the Liverpool- New Yoi'k steamers, but, owing to the Canadian Government paying to their mail steamers their subsidy, the Canadian mail poundage is paid to the Canadian Government instead of to the carrying steamers, and this payment to the Canadian Government goes towards the recoupment of their subsidy. Lord rlcrscy ,su;j:,irests tliat a portion of tlio iiuiil money presently paid to the Cmiard and Wliite Star Lines (vvliich, as mentioned, is a, rate per pound of mail matter (.'arried) should be diverted to the proposed Canadian fast line, whereby a large part of the additional subsidy sought for it from the British Govern- ment f'ould be provided. Obviously it oan only be diverted by transference of the mail matter carried by these lines to the Canadian steamers, and Lord Jersey is in erroi- in thinking it can l)e applied towards the augmentation of the mail money, for the Canadian jMinistry, when asking Parliament to sanction the payment of the sul)sidy they are offeiing for the new service, represented that much of their increased subsidy would be repaid to them by the increased ])oundage that would come to the Government as a result of the acceleration of the service. Lord Jersey discusses the dcdays from fog dangers on the Canadian route in (iontrast with those on the New York i-oute, claiming that they are practically on a par, and do not seriously disturb either the one service or the other. A perusal of our correspondence will make clear where they differ, and the serious misapprehension on this subjet^t under which Lord Jersey labours. We are, Sii", Your obedient Servants, JAMES & ALEXANDER ALLAN. CANADIAN FAST MAIL SERVICE. GLASiiow, 24tli August, 1894. Till- Ki-ht lion. AnioM IVIorley, M.F., Postuiiistcr-Gcneral, London. Sir. •Sonii! yonrs ni^o when tlio qucslion of the fust Canacliun mail sorvice was first mooted, and suggestions Avcro made to ns by the Canadian Government for supplying the same, wc entered into informal communication with your department with a view to learn wlu'thei- the British (iovernment would supplement the subsidy which the Cjinadian Government were offering for this service. Wc tluMi learned that the direct supplement which wc had hoped might bo given could not be, and our recollection is that it was explained to ns that, while a direct subsidy was not and could not he granted, this country did give substantial aid to the service, under an arrangement whereby certain postal revenues collected for mail matter conveyed by the Canadian mail steamers remain in the hands of. or were given over to, the Canadian Government. May we ask if this arrangement is still in force, and if the views of the British Government remain unchanged ? * AVhen the 20-knot-at-sca service was submitted to the "Allan" Line, in association with the subsidy of $750,000, no suggestion was made that this subsidy miirht be augmented by a direct ])ayinent from the British Govermnent. That suggestion is now coming into prominence, and, avc rem;irk. is receiving countenance from the recent Canadian convention. We venture to ask if there is any probability of such aid being given, and whether, if this country is to give such aid, it Avill be given inider the conditions either that the existing contractors, avIk* have so long performed the service, have an opportunity of tendering for it in its altered TSB sliMpi'. or lilt' i)i'0|»(isal.s he utTcrcd to |>iil»lic (•onipt'titioii. Wo would ]'e«i;ai'd it as unfair tlial a .-.cliciiu', wliicli coidd not lio|tr to be successful in the form it, was liivl, presented. slinidsihle of success in the hands of a, stran<>er, without tlie present or otiier eout-racfors haviii;^ any ripportunity to consider it. Our own position in tiie (piestion lias hpeii s{]{ fnrth in u series of k'tters we, tliis niontii. ad(h'essed to the 'I'/inex newsi)aper, and may he hrielly suniinarised as follows: — 'i'lie Canadian ronti; ne(a!ssitates steanu^rs travei'sing, (hn'infr the Canadian season, seas and land-honnded watei's that are fre({nently hesiit with (hmjrers froui ice and foy\ and, because of this, tlu' high s))eed re(inired for the new service conhl notsafidy be utilised: And, therefore.it would not only not serve the end contemplated of providing a service that would e(|ual that over New Yoi'k, hut could not hoj)e to be self-supporting from passenger and freight traflic unless enormously sn})plemcnted by Government subsidy — lionce the Allans' inability to undertake it at the subsidy offered. We urged the Government, because of these climatic disadvan- tages, to content themselves with a, good but more moderate speed, Avhich could easily he provided for less expenditure, and without taxing so severely the resources of the Dominion. Obviously it is unwise to waste money in providing steamships of enormous power and limited carrying capacity to run at a speed which oftentimes would have to be suspeiuled or slowed down, and to get which an enormous subsidy has to be paid, when a less and yet a fast service could be given for greatly less cost, and which would, by reason of the shorter mileage, compare favourably with the voyages of swifter boats on longer routes. If the Government had concuri-ed in this view% the Allans, who had for 40 years supplied the service, would have undertaken to provide the new. But their contract has been placed in the hands of a stranger, who at first represented to the Government that it could not be fulfilled for the subsidy it offered, but required a very large addition thereto — about £75,000. Subseciuently he undertook to float a company in Britain on the Government terms, and he should be left to fulfil his undertaking. If it cannot be floated as it stands, we repeat it would be unjust that what could not be siiocossfiil ill the forin lie ntnlcrtook il,sli(inl(l l)o rciwloivd possihlo of sii(',(!c'ss l»y holp <«r tlic llritish ( ioveniiiKMit, wilhoul the present ('oiilractors tor tlie iii.-iil service, or uiiyouo else, being permitted an opportunity of eoMsiderinji; it in its all(!repily, the normal state of things with them, and would certainly await flic advent of a new competitor — a fall in through rates has to hv wholly borne by the ocean carrier. It was not, tlierefoiv, a cheerful look-out for a line that has to develop a great ti'ade that it shotild be dependent practically upon the co-operation and good-will of railways, howevei* friendly, that were to have no stake in the undertaking. Steamers of immense power and cost to build and run, and Speed cannot whose cargo-carrying capacity is in the inverse i-atio of their speed, and whose sjjced cannot, by reason of the character of the navigation, be fully utilized, and which are to be run under the be utilized. 12 (lisadvantafycR we have indicated, are surely not, lioi)et'iill}' circum- stanced, and we appeal to you that the Allans sIk-uLI not be decried because they could not countenance the scheme. 3Ve are, yours truly, JAMES & ALEXR. ALLAN. 25 Bothwell Street, Glasgow, 9th August, 181)4. Mr. HUDDART. TO THE EDITOR OF THE TIMES. Sir, — A year ago, after some months' close negotiation with the Dominion Government, I concluded a ten years' contract for the establishment of a steamship service between Canada and Australia. The Government of the Dominion of Canada then did me the honour to invite me to take up the question of the fast Atlantic service, with the view to forming a company. I promised Sir John Thompson and others of his colleagues that I should study the subject. After six months' experience in the Canadian-Australian trade I found we were suffering greatly by Ijeing unable to get our through passengers satisfactorily from Canada to England, and that our mails were nearly always delayed. Returning to Canada from England in February last, I resolved, if the Donii.iion Government werr, still desirous of my forming a company, that I shoidd essay the task. It is sulHcient to say that, after three weeks' ntigotiation with the Dominion Government, 1 returned to England with a provisional contract for ten years in my pocket. The correspondence between the Government and myself, which formed the provisional contract, simply states that we are to build steamers f(n- the Athmtic which shall be capable of steaming 2U knots at sea in ordinary Atlantic weather. There is no doubt the subsidy will be renewed for the full $750,000 per aniuim. It was my suggestion that the Government should give me three months in which to complete my negotiations in England; ntul on this point 1 may say tlmt List inontli T arrangod with Sir John Tlionipson tliat. if 1 fonnd it (l(!,sir;ibk% I could liave until at hiast n(,'xt May in Avhich to form a (iompany, and Ihorc is no probability of tlio Government interfering with us so long as they are satisfied that we are energetieally ])roseeuting the scheme. On my retnrn to England in March, I wrote to the Messrs. Writes the Allan iiiviting theii- co-operation. A somewhat lengthy corres- ^"''^''^* pondence ensued, when it became evident that the interests were irreconcilable. After a long silence the ^Fessrs. Allan telegraphed asking if they came up to town next day I could give them an appointment. J met INIr. Dnnlop and Mr. Robert Allan in the Jlotcl Victoria. An hour-and-a-half's conversation ensued, and Interview and • its PGSUltS It was thus crystallized at the conclusion. Mr. Duidop said, " It is our business to discredit your project, but if you are going to succeed we cannot afford to be out of it." I said, ''Wherever your hand is seen it will be recognised that yon are an interested party," and Mr. Allan admitted that such discovery would greatly discount anything tliey said against the project. Messrs. Allan lost no time in pulling the wires in Canada, and it is fair to them to say that they exhausted all the usual means to destroy at the outset all possibility of Canada realizing her delayed amlntion ; and it is the strongest evidence of the determination of the states- men and people of Canada to have this fast line that, in spite of all the Messrs. Allan were able to do, and in s))ite of (or possibly because of?) a falling revenue, the bill giving a subsidy of .^^700,000 for the steamship service was passed into an Act without a divisicm in the House of\ Commons. Messrs. Allan having thus been thoroughly beaten in Canada, I was not surpi'ised, on opening the Times of this morning, to llnd a letter from them which, while it pretends to be written to put themselves right on a personal point, is really a skilful and adroit eflFort to kill at the centre of the Empire the scheme for the formation of a company to enable Canada, and the friends of Canada and of Imperial Federation, to fullil their natural and long-deferred ambition. The name of the late Mr. liryce Douglas has been mentioned. Bryce In my correspondence with the JNIessrs. Allan I i)ointed out that ^°"&'^^ the fact that Mr. Douglas died in the middle of his efforts to form the company is a suHicient answer as to why he did not succeed. What is everybody's business is nobody's business, and unless some «■ BHR u SirC. H. Tupper's views. one man, suitably traiiKMl and with suHicii'ut oxpericiicc, shall he prepared to give the whole of his time and energy to this great work, success Avill never he reached. Now, sir, if Messrs. Allan's letter has any arguments it is thai this scheme is not feasible, because at the threshold we are met by the stern forbiddance of nature. Upon this point I slioidd like to b*; allowed lo reproduce the remarks of Sir Charles Ilibbert Tupper. the Minister of Marine, and the report from his oiru-ers, but the demands of yom- space are inexorable. The following points occur: — " Any contention that high sperd cannot be; maintained in the gulf in consequence of the danger of navigation is not borne out by the facts. The gulf can be described as a tine open stretch of water, remarkably free from outlying dangers. There is no more difficulty in a steamshii) running at a full speed, under ordinary conditions of weather, from the >'ntrance of the gulf to within 60 miles of Quebec, than in maintaining fidl speed on the open Atlantic. "There is necessarily a slight element of danger in thick weather in consequence of the relative proxinuty of land, but this danger is certainly no greater than the danger that arises in approaching land on any of the Atlantic coasts. In fine weather, or even in bad weather, if clear, the gulf coasts are now efficiently lighted and fairly well provided with fog signals, to which Ave arc steadily adding. In thick weather speed must be reduced whether a vessel is in the gulf or in the open Atlantic, buu in the gulf there is not the same lia])ility to fog that is found on other portions of the Atlantic coast, and the path of cyclonic storms always trends to the south of the gulf, and consecpiently extremely bad weather is not encountered in that vicinity. "The fastest vessels hitherto used in the St. Lawrence trade have found no difficulty in navigating it at full speed, except, as before stated, in exceptionally bad weather, which may be met on any I'oute, which, when met, will unavoidably delay vessels, as they arc now often delayed in the English Channel, in the Irish Channel, on the Banks of Newfoundland, and in the approaches to New York. If a 17-knot vessel can rmi at full speed, there is nothing to prevent a 2o-knot vessel from similarly keeping up her full power." 15 I would ask. with ice or rocks ;ihi':ul, wliat, more would ^P^®*^ "** dimculty ii;i|)i)(Mi to a steani.sliip ^oin;jf at llit; rate of 1!) oi- 20 kuots as ajraiiisl a slcamcr goiujjf at the rale ol' 1 (> or 17 or cvcu 10 knots? AVc nnist rcnicnilwr the i^reat facilities which arc now placed at a master's command hy reason of twin screws ;ind cnoiTiious powei". Oarsmen know what hapi)cns when, with ;i, pair of scidls, the one is propelled in a forward direction and the other in a backward. Now the steamships we proj)ose to build shall have an indicated horse power, at sea, o( at least 'iOjOOO. Imagine 10,000 horse power exerted on the starboard pi'oi)cller going ahead, and a similar power exerted on the port pro[)eller going astern, with additional assistance of the rudder; how (piickly danger may be averted. I mainlnin that, with a cool and experienced commaiuler, if you give him half a chance, he will avert disaster. Not so with your low-])owered single screw steamships. An effectual answer to the maligners of the St. Lawrence rf)ute is that it has been navigated by mail steamships for the last 20 years withont a loss occurring. If any steamship is justified in going at 1 3 or 14 knots, then I boldly say that, in similar circimistances, our proposed steamshi})S will safely do 20 knots. That goes withont saying in the open ocean, and it certainly is true of the St. Lawa-ence. This gulf is a great gift of nature to the liritish Empire, and it is high time that its natinvil advantages of being the nearest sea route to and from Europe should be fully utilized. Messrs. Allan infer that we have luulertaken to maintain a speed not to speed throughout of 20 knots, or submit to penalties. We have*'®™^'"" not been asked by the Dominion Govermnent, and it is not our intention, to do anvthing of the kind : but we notice that a sinister influence has been put upon the Dominion Government and its friends to suggest such terms of contract as shall discredit us and our scheme before the world. I venture to say the enemies (jf the project will not succeed in this effort to make our work more difficult. We propose to carry the passengers and mails between England and Canada in precisely the same way that they are being carried between Liverpool and New York. Instructions to the connnanders shall be to reach Canada safely, speed being at all times secondary tf) safely. Thiy will have discretionary power as to speed, the Government of the Dominion being satisfied that our interests tained. 10 Comments on the Allan letter. iniisl. 1)(', to scciirt^ ti'iiiric, ;mli(Mt tVoiii liiii) liow he tlioiii^lit \vc> (!ouI(l co-operfite, ami as a proliminaiy we asked in what nispoct his agreement with the (lovornment (liffi're(l from that, of the hite Mr. IJrycc Doiiuhis. whose scheme we had exumuied and found impracticnble. He re|)resentcd Afr. Douglas' scheme as having £50,000 less subsidy than his. hut wc; informed him that they were alike in this, lie attributed the failure of Mr. Douglas' scheme to this, and to other causes which he named, as well as to his untimely death ; but his letter to you now attributes its failure as wholly due to his death. One of our letters contained matter that was distasteful to Mr. lluddart for reasons that came out afterwards. When i-eferring to the abandonment of INlr. Douglas' scheme, and asking in what respect his was more hopeful, W(^ wrote : — " It ^vould be a great misfortune to embark on an entcr|)rise tiiat had not the I'lements of success in it. Such a service might last for a short period, until the borrowing powers upon the property became exhausted, but this would be ruinous to the contributors of capital, and discredit- able to its promoters." And we went on to say "we had noticed Comments on in a London paper that his (Mr. Iluddart's) proposal to set aside offered by Mr. in the hands of trustees a portion of the Government subsidy to Huddart to bondholders meet the interest upon stock was represented as afforduig a security calculated to inspire conlidimce in bondholders, and we thought it unfortunate that a delusive statement of this kind should be in currency, as obviously such hy])otliecation of subsidy Avould afford no security either for interest or principal. If the service itself were unprofitable and ciould not be maintained, the payment of subsidy would cease, and so would the security." ]\Ir. lluddart wrote a sharp answ(.'r to this, for which he after- wards apologized, lie stated that the Government Avas prepared to set aside part of the subsidy to meet bond interest: "That is done (he says) by the Dominion Government to inspire conlidence;" but he added that "he who runs may see that if the company earns no subsidy that interest cannot be paid." It was not, however, so clear to the runner as Mr. lluddart 20 How tliu security was roKiirded in Canadian Parliament. preliminary prospectus. licrc iii(1i(';it«'>'. fnr wn liixl tliiil lla- |>r()|Misiil dccfivt'd siicli an iicnlc iiiiiid IIS Sir IJicliiinl Ciirlwri;4lil's, ami wtniM ct rtiiinly linvo ini>I('il simpler iiikI nidic coDlidin;; itcdplc. Sir Kiclianl in tin- (Icliatc rf;j;ai'(l''(l the |)n)p(»>al as a M'ciirity •' lliat W(»ul(l practically make llic C'liiiadiaii ( lovcrnmoiit nspuiisiblc for the frrcatci' part of llic rapilul tlial was to >,'() into tlu^ steamers." Tliis lie characterized "as a t'oolish and suicidal anMiijji'iiieiit. tor the ( ioveniiiUMit to enter into," and lie was only satislicd whtiii the Finniice iMiiiister rose in his place and >aid that- tin; iiiteresi, would only he paid out, of siilisiiiy earned, and therel'i)rc the proposal did not commit the GovciiiiiKiiit to aiiylhin|:^ more than the mere payment of cariu'd siihsidy. Mr. Huddart's Jt has since Iranspired that Mr, lliiddart's preliminary l)rospectus <'ontemplaled laisini;' ,i'2,7rMl,(i(>(), of whicdi ,t'l,r)OU,0()() was to lio secured in the manner alluded to. It t'l .r)00,()()0 could he raised on the so-called si!cinity of the subsidy, tlie eMtcrpi'isc, howevei- had in itself, could lio on until it lost the hulk of the £1,50(),()()(), for it could hori'ow luoiuiy on the seciu'ity of the Heel ill which it and tlu' other cajjital raised mi;.dit he imosted, and which, if the enterprise failed, would wholly disappear. AVe had thus at an early sta^e i)Ut our lin,i.r(!i' on a weak ])oint of Mr. Huddart's scheme!, which raised his ire. So much for the correspondence and interview. JNIr. Iluddart adversely criticizes other parts of our letter. He represents it as tryiuLf to show thai it is a disadvantage to have to woi'k with three great railways, and adds, " It appears to him that connections, jf }i^, ],.,(] ^^^^ these railways 1o help, his position would he more dillicult." In this he agrees with us that he is mainly dependent on these, and our purpose was to sugge-t that they were insufficient; our remark was that it was '* not a cheerful look-out for a line that has to develo[) a great trade that it should ho dependent upon the co-operation .and good-will of railways (a single line in winter and two in summer) which, however friendly, were to have no stake in the undertaking." AVith reference to the dilRculty we felt and stated in regard to H scheme which required vessels of great speed and cost, whose speed could not he utilizt.'d, he Avould have you believe that we High speed argue that a 2()-knot speed cannot be safely run where a 14-knot cannot be , t-i ■ .1.1 1 i- ., maintained "^''-y "^- ■•i'Very one knows that the one may be as sate as tlie The railway 1^ *, 21 f i •* t»llit!r in clt'iU' wc.iIIk'i". Our rf|ires(>nliilinn \vas tlint in tho wentjicr and wiiliTs wIhtc tins servicer is ,0 nni tin- lii<:h speed ciiimot, contimionsly nor jo the >.inii' (If^frt'c as un the New Vr sn f ety. IVIr. lluddart remarks that in stating that safety is mainly due to increased Avatchfulness we give our case away, for it brings in tlie human factor — the difference between one man and another Surely Mr. Iliuldart does not hei'e wish to contrast the difference between himself and us to our disadvantage. If this be his meaning, we can only say that we know nothing of Mr. Iluddart's management of ships, but it is nui safe for any one to claim superiority over another, and we notice that the Canadian Ga:u'tte of the 2nd inst., which rei)orls a'l intei-viev/ with Mr. lluddart, also records that, the steamer iVliowera, which he is said to manage, has been twice ashore, once on the rocks at the entrance to ILmolulu harbour, and again on -July ol on the west coast of Norway. Mr. lluddart has some remarks to nndvc upon the Allan Safely of mall steamers. Subsidy Kuarantcod for a period. Safety of steamers under Mr. Huddart's management. 22 ^ loviiltv to till- l)(tiiiiiii(iii ilial. \Vf think ho iiii?h(, h;ivt' spiircd. It" he succi'cds in uniiiinii' the coiifidoiicc of the moneyed public, and ostablislies succc-st'idly a sei'vice that none of llie C(/ni])anies onjifijri'd in the Atlantic trade have been willinu" to end)ark thi'ir own foi'tinies in, or those n{ their friends, he will deserve and receive a hiuh place in p»d)lic estimation. AVe are, yours truly, JAINIHS & ALKX. ALLAN. !'.> lioliiwell Street, Clasgow, lOth Au.unist. L^'.H. Federation scheme. LoHi) IJR ASSET. TO THE EDITOII OF THE TDfES. SiH, — My friend Mv. HinMart has asked me to assist him at the present important jiUictiire in putting before the liritish ]>id)lic the advantaires of an acct'lerated mail service between England and Canada and Canada and Australia. The project merits public support on many grounds, and chiefly as tending to pronuite tlu; unity of the British Empire. That is ..'i object desired alike at home and in the colonies. The dilliculty has been to suggest practical steps. On two occasions 1 had the privilege oi introducing to the Prime ^Minister deputations tVom the lm])erial Ft'dei'ation League. We had no grouiul to c(,-r:\ 'ain of the rcce])tion accorded lo i,s. Our first interview was followed by a conferem-e held in London, at Avhich the colonies were ably represented. 'J'he reinforcement of the Australian sfjuadron at (he expense oi' the cohmies was the chief otjtcome of deliberations which wvw mainly directed to the defence of the Empire. Our second interview w ith Lord Salisbury elicited the important .suggestion that the time had come Avhen schemes of federation siionld be proposed. The challenge of the Trime Minister was answered by the League in a report, the recepti(»n of which by the I'ress and by public opinion was a source of satisfaction to all con- cerned. But we have not foimd that action has been taken upon our suggestions. We may claim that they were feasible and desirable. We nnist acknowledge that there was no immediate necessity for their adoption. Jt has never been the way uf British 23 statesmanship to occupy itself with (iiiestioiis in anticipation of nltorior exigencies. If, howeviM-, it is wise lo wait for (itting occasions before atteinjiting to alter existing constitntional relations between the mother conntry and the colpnies. all will recognise that whenever opportunities offer we slioiild not neglect them. The practical steps whicli may now be taken were made clear The con- 1 > T i /\i.i 'in t 1 t 1 • 1 ference at by the recent proceedings at Ottawa. Ihat second great colonial Ottawa and confei'i'iice gave its attention especially to the improvement of its recom- • • All 1 1 1 mendations. telegraphic and postal connnnincatioiis. All the delegates who attended were agreed as to the desirability of opening np a new line of communication under the British (lag'bet'Vven the mother coimlry and Australia through Canada. The reconnnendations cf the co"- ference have been emphasized by something more than empty declarations. It is proposed to connect the Eastern termiiuis of the Canadian railway system with Englaml, and tlie Western ter- miiuis with Australia, by a service of four large 2()-knot steamers on the Atlantic and five swift steamers on the I'acitic. The cost of these vessels is estimated ;it ,£3,U()0,()00. The subsidies asked from the Governments concerned amount to £;j()0,()00 a year. Towards this amount Canada has voted £175,000. The Imperial Government is asked to contribute £75,000 and Aiistialiii i'50,000. If Canada has a special interest in establishing a new trade and postal route across her vast domimon, we have intere.->ts of hardly inferior magnitude in the development of communications with our colonies. Jt is a circumstance that should have its due weight that, while Canada linds a large proportion of the money, all the expenditure on the construction of the ships will be incurred in the Ships will be United Kinij-dom. Turning to the Australian Governments, if we built in the " United display a wise liberality they may be trusted to follow. Kingdom. Jii iiranting assistance to Mr. lluddart's scheme every care Conditions on should be taken to insure that the public money is applied to tlu' ^^0^1^ be"'^^ best advantage. Conditions may be inserted re(iuiring the con- granted, veyance at low rates of troo;)s to Ilong-kong and relief crews to the Australian, Pacitic, anu China stations. It may be insisted that the specilications and plans for tin new slii})s shall insure their fitness for service as scouts or auxiliary cruisers. In view ()f the desirability for increasing the means of training the engine- room complements of our shi[)s of war, it might be arranged that the Admiralty should have the option of sending oil'icers and men from the steam reserves for temi)orary duty in the new ships. We 24 Allan Line representa- tions. are losing a valuable training service by the decision recently taken to do away with the Indian troopships. The subsidy now asked foi- may Ik' in part made u[) by some reduction in the amounts now paid tor mail services by other routes. It is in the initiatory stages tliat the Iielping hand of the Government is most m.'cded. Once established, a service which meets a real public want may be etliciently conducted with dimin- ishing assistance from the Treasury. It has been urged by tlic representative of the Allan Line that the Gulf of St. Lawrence pi-esents special diilicultii's to the navi- gator. The Allan Line has l)een free from disaster for many years. If its pres-jnt proprietors had l)een men with the same enterprise and tlie same inducements to f;u'c tlic risks of business which animated the founders of their undertaking, tliey woidd have put vessels on their line whicli would have hvxtn capable of earning the subsidy whicli has been granted to a rival. In considering the [)resent demand we may appropriately ask ourselves how such a proposal would be received elsewluuv. With comparatively insignilicant commercial interests at slake, lavish subsidies are paid by Italy for a service to India, by France and Germany for services to China, Australia, and America, and by liussia for a fleet of volunteer cruisers. The British (iovermnent has been able, through the keen com- necessary for p^jtitJon in our mercantile marine, to make larne reductions, speed. ' . . ' . Economy should not be pushed too far. High-speed services a(!ross the ocean can only be })erformed by subsidized steanu'rs. In conclusion, I return to the Mrgumeut with which it wns sought to o])en the case. To preserve our Im])erial unity is a primary object of our ])ublic policy. We desire to make the value of the coiuiexiou with the mother country felt in all the colonies. When, therefore, our co-operation iii furtherance of a common object is asked by such a, conference as 'thai Jately assembled at Ottawa, it is not wisdom to refuse assistance. The decision to be taken nnist largely depend on the report of Lord Jersey. It is earnestly to be desired that no hesita;.ion will be shown if he recommends that the new Canadian services to Austrahi.-ia shoidd be subsidized. I have the honoiu' to be, Sir, your obedient Servant, IJRASSEY. Dalnacardoch, N.B. Subsidy ^ Me8Sk«. ALLAN. TO THE EDITOR OF THE TIMES. Sir, — Fn yom* issue of Satiinl;iy. Sth iiist., Lord Brussey states he has bt'iMi msUimI by Mr. Ilii'ldiirt to ;issist him in ])uttiiij^ before tlic IJi'itish public tlie ndvantaue of an acccUn-ated mail service between Enn;l;ind and Canada and Canada and Australia, and, respondinii' to the request, he has placed these advantages forcibly befoi-e the public. Lord Brassey is Avell e(iui|)i)ed for llic work; he possesses a powerful pen ; colonial federation is dear to him, and has been his favourite theme ; and he Avas closely associated with the efforts made by the late Mj\ Bryce Doujrlas, who was his co-director in the Naval Construction and Armaments Company, BarroAV, to establish a service of i)recisely the same character, and which was to receive exactly the same Government help — Dominion and Imperial — as is pronn'sed to the ])roject he now supports. Lord Brassey has the further advantage of having been at the time (the spring of IHIH) in the fullest confidential communication with ourselves u])on IVIr. Douglas's [)roject, for his idea and desire then was that wc should take the lead in the enterprise, and this we were prepared to do if it gave reasonaljle promise of success. Lord Brassey's i)nrpose in interesting himself in the former project, and now in the ju'esent, is specially to promote, by federa- tion of the colonies, the unity of the British Empire, and he believed then, as he does now, that he saw in the swift Atlantic steam pi'oject a great means towards its attainment. Mr. Douglas's object was more commonplace. Lie did not concern himself so much for the federal idea as to create a new Atlantic service, and to be the builder at Barrow of the necessary fleet. lIl)on Lord Brassey's advocacy of the federal idea, which forms the main part of his comnuniication. wc have not a word to say, save to express our sympathy with his high aims. But he condescends to write of oiu'selves as follows: — " It has been urged by the representatives of the Allan Line that the Gidf of St. Lawrence i)resents special diiliculties to the navigator. The Alhin Line has been free from disaster for many years. If its present i)roprietor8 had been men with the same Lord Brassey's connection with former schemes. His co- director's object was to get steamers to build. 26 Allans' want of enterprise considered. Subsidy inadequate. Misplaced generosity. t'liiorprise iind llio smiuc InducciiKMits to incxi (lie I'isks of Imsiiiess which aiiiiiiatud the; foniKU'rs of thi'.ir niidortaking, ihcy would have ]Mit vi'ssels on their lino which woidd have been capable of earning the subsidy which has been granted to a, ri\iil." On this yon will, we trust, not deny us the privilege of remark. AVe claim for the Allans that they arc not yet destitute of enterprise, and it is no evidcnci! (iiat they are that they have been nnal)le to give Canada a greatly ini[)r()ved mail service. Canada originally and for years gave a proper subsidy for the service the Allans established; I'Ut when, for considerations of safety, (lie Allans took i)o\vei' to lengthen their passage by moderating the speed of their steamers in fog, &c., and which has given the service the re})Utation for safety Lord Brassey accords to it, the CTOvernmeiit reduced the subsidy, and when the service ceased to pay the Government, even at the risk of the abandonment of the service, Avonld not advance it. The only condition on which an advance would be given was that new steamers should be provided of the most costly type and of the highest power — costly to build, costly to run, costly to insiu'C — and which, when built, must frecpiently over a consideralde part of the route run at the pace of the humblest cargo boat, or pay the penalty in marine disaster. For such steamers, high as the subsidy was, it was only "a drop in the bucket " towards their expenditure. Their cargo space would no longer be worth considering as a means of revenue, and the high- class passenger tradt' necessary to their sup[)ort could not, without the highest speed and corresponding safety, hope to be made. How, we ask Lord Brassey, could we, however enterprising, improve our mail and passenger trade in these circumstances ? For nearly ten yeai'S we have had hung over our heads this demand of the Canadian Government which we could not meet, but which hindered our giving a better service than we provided. It is a praiseworthy ambition theirs. But they are generous with their money for a scheme that is impracticable and will disappoint their expectations. To encourage them or the British Government to pile up subsidy, and the British public to provide; the funds to do the impracticable, is not wise or statesmanlike, even aUhough, as Lord Brassey says, " all the expenditure on the construction of the ships will be incurred in the United Kingdom." *>'; When Lord lirassijy was in conimiinicution with us in the spring of 1891, we very earnestly soiiglit to join hands with him in IVIr. Douglas's scheme, and Ave patiently examined the calcida- tioiis on which it was hased. Mr. IJryce Douglas' scheme not oidy had for us the charm of B. Douglas' . •.•11 scheme, placing us at the head ol: the imi)ortant service he projected, but the temptation of transferring to the Imperial C()m))any, which he was to promote, on advantageous terms, the wholi^ '"vMlan" Heet. "We, however, wrote Mr. Hryce Douglas in March, 1801, as follows, the letter being cominimicated later to Lord Brassey : — " It was the very earnest desire of the Allan Owners to have a Why Allans . , , 1 !• 1 1 1 I. could not part ni any unproved service that might be establisried bet.'\ een j^jj^ ^^ this country and Canada. The time has come when an improved service should be possessed by the ccjlony, and having provided from the beginning that which it has had, they were, as you can well understand, ambitious to have a part in the new service. Jt also naturally lay to their hands, who are largely in the trade, to help to provide it. This being so, we need not tell you that the l)Ossibilities of establishing the service were canvassed from every point of view, and that every moditication of the Government contract conditions which seemed feasible was considered." With reference to the commercial aspects of the scheme we went on to say : — " But the result of all this has been to force the conviction Service upon us that the service cannot be established with any hope of y"jjj'^ ^° yielding a revenue to pay any dividend whatever to the share- dividend, holders of the company ; on the contrary, the most liberal estimate that could be countenanced fell short of even paying steamers depreciation." If Lord Brassey has not forgotten tliis communication, surely, before condemning us in the eyes of the public for want of enter- prise, he should first have shown, when he desired to help his friend Mr. Iluddart Avith the British public, that his enterprise would not only establish the Empire but pay the shareholders. Lord Brassey forgets that in the end he wrote to us the con- ^0,,^ Brassey viction of himself and his colleagues of '' the necessity of direct forgetful, support being given by the Canadian Pacific Railway and the Grand Trunk." You will recollect one of the points we made in a recent letter to you on this (juestion, called forth by one of Mr. « 38 Hiuldart's, was that llio Iriiiik rnilwiivs wcro (»» havo no dirccl stake in the i'ntei'|)i'is('. So iniicli did we a,i>roe with wliat Lord Bra.ssoy tlicn wrote on tliis point, and so dosirons wero wo, if it, Avcrc possible, to sec Canada obtain the service it soniiht. that later we offered, even airainst onr better jiidfiinent. to provide a con- siderable section of the s(>rvice and risk its snccess if the i-ailways had sntlicient conlldence to ])i'Ovide the rest. We trust that tlie (lueslion will soon be settled the proposed fast line of 2()-knol/ servici; hetweeii Canada and (Ireat liritain can never prove a financial sncccss. " Ft is also understood that, Commodore ^Vakehani, who for 20 years has heen in (;harj;*' of the fishery protective (u-iiisers in the River and Gidf of St. ivawrence, and whose knowlcdj^c of the navijifation of thesi- waters is greater than that of any ollu'r liviii^^ man, holds the same views as the l-)e|)Uty Minister of Marine." REPUDIATION UY Cai-tain WAKEllAM. EXTRACT FROM THE TIMES OF 2nd NOVEMBER, 18!)1. CANADA. Ottawa, Novemher 1st, 181)4. Captain Wakhitam, the officer in charge of the Canadian fishery protection fleet on the St, Lawrence and in the Gulf, perhaps the highest living authority on St. ^/awrencc navigation, emphatically repudiates the statement attrihuted to him by Messrs. Allan, that a high rate of speed on the St. Lawrence is impossible, and that Mr. Huddart's scheme is impracticable. Writins.': to Sir C. Tapper to-d.ay. Captain AV'akeham says : — " I beg V> say that I have expressed no such opinion. Yon are yourself aware that I am of a contrary view, as I hold that the greater the speed the greater the safety. The fast ship will be much less likely to be affected by local currents, and, while she is better able to take every advantage of clear weather than a slower boat, she need go no faster than prudence would warrant in thick weather. These facts should be patent to any one, and cannot be open to contradiction." — Olu CoRKEsroNDENX. .1.) Mu. S.Miril HKIMDIArKS. ru TiiK lODirou of tiik tjmks. Sill, — Owiiiy- to ;il)si!iic(' trtiiii Lmidoii. my :it Iciitioii liiis only n^ciMitly \)w\\ ciillcil 111 a Icltcr in your issiu; of tlii! .'Jlst lilt, from IMosrtr.s. J. cVi A. Alliui. of (iIhsltow, riispccLiiiir tJic Catiiulian Fiist Mail Sfi'vici'. In a postscriiil to that coniinimicatioii is <|iiot(;il ail extract from tlio New Yovh .loitriidl of C'oiinnerce of October I'), ill which 1 am reported lo lia\e sl.itcd thai th« scluMiie, as proposed by Mr. iTiiddart, is impracticiihh!, and that it can never prove a linancial succiiss. I notice from an Ottaw.i. telegram in your issue of the 2nd inst. that Captain Wakeliain, whose name was associated with mine in the matter, emphatically nipudiates those statements, and I shall be oblin;ed if you will jiivc; ine an opportunity of stating in your columns that I \\ that part of (In- snhjcct. I am, Sir, yunr olicdicnl. S(!r\aril, wii.i i.\.\i S.MH1I. I>(jiutii MiHislir oj Mdiinr iiiul I'l ^hii le.s "I < 'mi'iilii, uml ii Mi'iiilii r III' ihe lliinnl (>l 'l'i(til< ('luiiiiiilli-i Jur tin' Miiiiiiiini of' /In I ink S/ii/is. CniviMi I.oli'l, Crawn Str.'<'t , Strai.d, pJih Nov., IS!) I. Miossiis. ALLAN ON rilK liKlT Dl A TION, TO rill': FJ)!'r(/ii of thf v/.i/avv. Sii{, — 'i'o onr Icllcr which ;',ppt'ared in yonr issnc ol' llic ."list, uit. wf ajipcndcd a shoi't .arli.'lc I'roni (lie AV//- )o;7' .limniul nf ('oiiiiiii rci\ \\\\\(.-\\ rccilcil l!ic I'cpoitcd opinion ot Air. Sniitli. llic Dc'puty-Ministc!' of A'arinc tor (Canada, and thai- ol' Connnandcr Wakcham. in (diar.iic ot' the tislici-y cruiser-, upon the propo>ed fast service. The views of Mr. Snnth. in whi"h Captain Wakehani was belicvtMl to concur. >|iorlly stated, were that it, was folly to ,'epre,>.ent, tliti navi<.'alion as presenlin.L;- no ohsl.nde- !o the maintenance of hi^di speed. Mr. Smith wa> fui'llier I'epresentcd as l)(dievint line v;\\\ nevi' |)idve a snccess. Th»^ article appcarinir nn( ontradi<'ted in a paper of >iich hij^li standin;/, and 'he opinions hcinji exaei,ly lle,M' we should expect these ;rentlemen to hold, we had no hesitation in jzi\in;i- it a placi; ill our lett,er. 'i he dissemination of the \iews attrihuted to tlii'sc onicials, differiu'j as they do :rom those ado|tt,ed hy their Parliamen- tary <'hief. could not hut, lie distasteful at hea Sir CliarK's II. Tuppcr. Miiilstor of Mnrintt, ;iii(l it-^ .viili>l.iii '(' was caltlt'd to yoii ii I'ortiii^lil iiL-o. Mr. Siiiitli, pnisciilly ill this coiiiilry. lias .uldicssi'il y(tiir.st'lvc!H .s saf(! to i-mphiy 2U-knot steamers than slower ones. ^Ve disclaimed this in our letter of Aujiust 10, statiujf that, where it wa.> safe to iini at II knots it was e(|ually saf(^ to run at 20 (and in this we are at ono with Captain Wakeham); hut we held that, in the weather what the and waters when! this service is to nin the hiiili speed cannot ^"""^ '*''* hold, and continuously, noi' to tlie same dejrree as on the Ntnv York route, lie which Cupi. lately mauitaiiUMi, and a Iraik' and suit^idy thai is to he made and does not earned hy such speed is at serious disadvaiita^e. Captain '^""tnidlel. Wakeham'rt conlradictiou does not touch this point at all, and, even with his ohviously strong desire; to s\ipport Ulie views of his chief, his <>;ood sense cousti'ains him to add that '• the swift vessel need i;o no fastei' than prudi'uce would warrant in thick weather," which is really the kernel of the whole ipiestioii as to uaviffatiou. lltM'oidd not ad the conunereial aspect of the (pu'stion, on which, however, he offers no opinion, the history of the mail and pas- senger trade of the last \m\ years would confute hiiii. As to the (Irst, we take a single phrase from ihc < iovciinuent lllue-Hook report for IHDO, at jiage '.14 : — " l''roni 2h miles east of IJelleisle to uhreast of Cireenly Ihluiul passtul innumerahle huge icebergs and detaidied pieces of ice." " Icebergs were met in iho Straits by all vcHsels passing there this HejiHon, up till the! end of Oclobei' ; in- 38 steamer struck an ice- berg. Fog slgnals- a word for Admiral Hop- kins. Mr. Smith'i repudiation reviewed. nnmerablo bergs were met with east of llic Grand Banks, and for 80 miles south of Cafju Race." In one of our letters we mentioned that this season one of our steamei's struck an iceberj^ at 3^ knots speed, destroying her bows. AVliat would have happened had the speed been greater? An Atlantic greyhound this season is reported to have, in a foLr, rini down a barque, herself receiving no harm — the Ijarque, and all on board, disappearing. Had it been a berg, the case would liave been reversed. Then as to fog and the fog signals, on which some stress is deservedly set, the Department warns navigators in these \yords: — '' It cannot be too emphatically impressed u])on them thai, a sound sisnal is under no circumstances s') reliabb- ;".o a light, for the best sound signals will give varying results under vaiying conditions of atmosphere." Turning to Mr. Smith, whom we hold in the highest esteem, and fn^'x whose Department the book from which we have been quoting issues. His letter is dated from the Craven Houi. and reminds us of the story of Galileo when abjuring before the Inquisition his belief in the earth's motion, muttering " But it still goes round.*' He notices that Captain Wakeham repudiated certain statements, and he '' g