CHEAPER CABLES.

Press, Volume LXVI, Issue 13901, 28 November 1910, Page 7

CHEAPER CABLES.

AN IMPORTANT SCHEME.

United Press Association—By Electrio ' r elesripb—Copyright. (Received November 27th, 5.5 p.m.) LONDON, November 20. "The Times'' warmly commends the important plan of a State-owned cable via Iceland suggested, and now under consideration.

It cays it is estimated that a tariff which is inadequate, and yet which can earn a profit for the existing Atlantic cables even working at their fullest capacity, can earn a satisfactory profit for the Iceland route, if working for only six hours a day. What represented a practicable cable charge, though it would not necessarily bo adopted at the outset, wonld be to reduce the ordinary messages from Britain to Montreal to 4Jd a word. The rate of Government, Press, and deferred messages would, in that case, be 2Jd. A sixpenny rate would cover the cost of similar messages to Australia. The capital required would be £850,000. The annual receipts at tho lowest rates mentioned above were estimated at £148,750, and the expenditure and working expenses at £55, (EX), repairs £12,000, contingencies, canvassing, etc., £15,000, Provident Fund £3000, Renewal Fund £18,500, leaving an annual profit of £45,250, or upwards of o per cent, on the initial outlay. It suggested that the servico would gain in security if a wireless system were installed along the same route. The cost would be small.