BRITISH CABLES

Auckland Star, Volume XXXIII, Issue 95, 23 April 1902, Page 5

BRITISH CABLES

THE PROPOSAL FOE STATE PURCHASE

LONDON, April 22

In their report the Inter-Depart-mental Committee recognise the great service of the cable companies, commercially and strategically, to British interests. Dealing with the proposal for State purchase, which the committee oppose, the report estimates the value of British companies' stock at £25,000,000, but. experience has shown that the State has failed .to obtain favourable terms for the transfer of the property to itself, It such a transfer' were made there would be constant pressure for increased wages for the working1 staff and for excessive reductions in rates.

The committee's report proceeds: — No detailed calculations have been laid before us to show how a penny rate to America and Australia could be made to pay. Indeed, the advocate of the scheme broke down altogether when cross-examined on the point, and we are clearly of opinion that the establishment of such a rate on a commercial basis is impossible. We regard all proposals for large reductions in existing rates as impracticable. There is little analogy between submarine cables and the penny post. On the other hand we are not in favour of either working the cables by the State at a loss or of subsidising private cables on a commercial as opposed to strategical grounds, both of which courses bnrden the taxpayer unfairly for the benefit of a special class. We are not prepared to say that the existing rates are excessive, with the exception of those to the Gold Coast and Nigeria. We recommend that a reduction be attempted- in connection with the renewal of the Eastern Company's landing rights at Port Curnow.