THE PACIFIC CABLE.

Ashburton Guardian, Volume XXiX, Issue 7727, 22 February 1909, Page 4

THE PACIFIC CABLE.

QUESTION OF CHEAP RATES.

The manager in the Pacific for the Pacific Cubic Hoard (Mr John Milward), who is visiting Wellington in the interests of the Board, in an interview with a Dominion reporter, said that the cable was still working very well and giving no trouble in any way. Against the popular idea that money is being lost annually, Mr Milward; contended that the gradual repayment of capital ought not to be regarded as a recurring deficit. The position was that the Imperial Government had advanced two millions sterling, which was being repaid at the rate of £77,000 per annum, while £33,000 per annum in addition was being set aside for the renewal of the whole of the cable, which would be' necessary at the end of 50 years. The fact that the Governments concerned are contributing something annually towards the repayment of the capital did not, Mr Milward contended, justify the public in considering that the cable was being worked at a loss. In any case, the money was well spent, as it had led to the lowering of the rates. Asked whether in his opinion the further lowering of the rates to a penny a word, as proposed by Mr Henniker 1-leaiton, was practicable, Mr if the cables arc to bo worked so as fi the cables are to bo worked so-ns to meet ordinary expanses. The carrying capacity of a cable is limited. We ca:i only sond a thousand words an hour over the Pacific cable, and no main ocean line has a much greater capacity than that. It is easy to see that at a penny a word the revenue could not exceed £30,000 a year, and our present working expenses are twice that sum." In regard to any less sensational reduction of rales, Mr Milward was not prepared to make any definite statement, but he pointed out that the matter was by no moans in the hands of his board, because all messages between Australasia and Britain, via the Pacific cable had to cross Canada and the Atlantic on nrivntcly owned lines. Rather less than' half the rates went to the Pacific Cable Board. Mr Milward looks with favour on the proposal to link nn the islands of the Pacific by wireless , telegraphy. Such a scheme would provide the Pacific cable with feeders from localities were submarine cables would not at present be profitable. At the same time, he considered that wireless telegraphy was not in its present stage of development, sufficiently reliable for commercial work over long distances, though it was distinctly useful in its sphere.