EASTERN TELEGRAPH COMPANY.

Evening Post, Volume LXXI, Issue 81, 5 April 1906, Page 5

EASTERN TELEGRAPH COMPANY.

PRIVILEGES WITHDRAWN. [PHES9 ASSOCIATION.] (Received April 5, 10.20 a.m.) MELBOURNE, This Day. Owing to the Eastern Company refusing to ratify the agreement with the Federal Government as modified by the Senate, the Government has discontinued the privileges enjoyed by the company under tho provisional agreement, and disconnected the company's hind line. Cablegrams have now to be taken to the central office, the same as ordinary messages. The company* and the mercantile community strongly complain of tha incon venience caused by the peremptory action of the Government. Mr. Deakin (Federal Premier), hi reply, says the company kept the Government waiting an unduly long time over the agreement. The rights were granted in the full belief that the agreement would be ratified. The company enjoyed them for three years, the Commonwealth receiving nothing in return. The Secretary of the Postal Bureau says tho Department merely carried out the provisions of the agreement. Before the federation of Australia, the i Eastern Extension Company worked under ' ogreeqients with New South Wales and other States. Those agreements had no time limitation. After federation the Commonwealth Government, which took over tho Post and Telegraph business of the States, proposed to supersede these jigreempnts by an agreement for a limited period only, to bo entered into by itself. This agreement, made on Bth June, 1903, was subject to ratification by Parliament; but the Commonwealth Government foiled to obtain this ratification, after long di3cussiona in the Senate, pending reference to a conference of representatives of the Governments which owned the Pacific cable. In the meantime the company was allowed to open an office in Melbourne, and to continue to use the special wires and oifices granted it in Sydney under the oiigmul agreement. In consequi'iice of this the Pacific cable, in which tho Commonwealth and New Zealand are interested, obtained a much smaller share of traffic in New South Wales and Victoria than had been anticipated.