CHEAP CABLES.

Press, Volume LXIV, Issue 13272, 13 November 1908, Page 6

CHEAP CABLES.

MR HENNIKER HEATON'S ADDRESS.

AN INTERESTING DISCUSSION

United Press Association—By Electric Teifßraph—Copyright.. LONDON, November li. A long and interesting discussion took place at tho gathering at tho Colonial Institute in connection with Mr Henniker Heaton's cable scheme. Mr Lcmieux, the Canadian Post-master-General, expressed tho opinion that cheap cables furnished tho key to ail the numerous problems confronting the merchants and statesmen of tho Empire. Ho believed that penny-a-word cables would bo a grand idea, and one that would be attained sooner or later. Tho cable companies had long had the chanco of showing what could bo done. If a shilling a word was tho best they could achieve, it was certainly prohibitive. The Government ought to institute an immediate enquiry into the possibility of the prospects of the practical success of penny-a-word cables.

Signor Marconi said ho doubted whether, owing to tho cost of cables, it would be possible to send peimy-a--word messages any great distance without incurring a substantial loss.

reliable service of penny-a-word wireless cables between Canada and Britain' was possible in time. Ho had made a step in the right direction by sending r/ress messages at 2Jd per word. He had every confidence in wireless telegraphy. Ultimately, and before it would come into general use for commercial purposes at great distances, possibly round tho world. Signor Marconi added that if the two Governments would pay tho working expenses of stations on both sides of the Atlantic and give comparatively moderate subsidies, he was prepared to transmit penny-a-word messages Dotween Britain and Canada wirelessly.

Sir George Doughty contended that tho British people would bo willing to grant subsidies until the experiment proved successful.

Mr Neilson, speaking in defence of the cable companies, argued that in the case of the Antipodes, thirty-six times the present traffic would bo needed at a penny rate to "earn tho same gross revenues as were earned at 3s per word. At least seventy-two caoies would be needed for the penny rate, necessitating the construction of sixty-eight new lines at a cost of £170,0Q0,mK), and ihen there would bo only the present gross revenue to provide interest on capital, working expenses, repairs, and depreciation. In view of tho present fiercecablo competition, it seemed absurd to contend that all the companies had entered into a hideous conspiracy to maintain high rates. Mr Neilson referred to tho Pacific cable losing £60,000 last year at 3s a word. Thirtysix Pacific cables would be needed at a penny a word, involving an annual loss of £2,000,000. He declared that sentiment was but a sorry substitute for sound finance. Mr Henniker Heaton had given no estimate of the cost of conducting the enormously increased traffic. That was an ominous omission.

Dr. Parkin and Lord Strathcona were both optimistic of tho scheme.

Sir John Barry, chairman of the Eastern Telegraph Extension Company, addressing tho meeting, referred to the very unfair competition of the Pacific cable, and complained of the arbitrary action of the Australian Government in regard to tho Tasmanian cable charges, which was the latest instance of the [unfair and hostile treatment his company had receiveu since the Pacific cable was established. i

Lord Jersey, the chairman, moved a vote of thanks to 'Mr Honniker Heaton.

The latter, responding, hinted what might happen if they had Mr velt there to deal with the cable '*ring."^

The managers of the various cable companies, on being interviewed, declared that tho cost of buying out the companies was a stupendous undertaking. It was easy to understand colonial support of Mr Henniker Heaton's penny-a-word cable scheme, since the few millions in Australia, while using tho cable more than the forty millions in the Motherland, would bear an infinitely smaller amount of the huge and inevitable loss.