PENNY-A-WORD CABLES.

Evening Post, Volume LXXVII, Issue 139, 11 December 1908, Page 11

PENNY-A-WORD CABLES.

STATEMENT BY THE PREMIER. INTERESTING FIGURES. l&T TELEGHAPH. — MESS ASSOCIATION.] INVERCAKGILL, 10th Dsc. Interviewed to-night at Invercargill on his return from tho Wiaton presentation, Sir J. G. Ward said, when questioned with regard to the proposition put forward for penny-a-word cables, that he had been making investigation ( with regard to cable • rates, and as to how they would apply at a penny a word as between New Zealand and Australia. This had, Sir Jof-eph said, a general bearing upon the question which had been so ably advocated in a ( widoi' Muse by Mr. Henniker Heaton. "I find," said Sir Joseph, '"that about 6000 words per diem pass over the cables between Australia and New Zealand. The revenue on New Zealand business is 4£d per word, amounting to £16,496 per annum. It is probably useless thinking of any reduction so long as a private company controls the most direct cable. The only way to reduce the rate would be for the New Zealand and Commonwealth Governments to lay down a direct cable of their own. The expanse would work out as follows :—: — Interest on £250,000 at 3£ per cent., £8750; depreciation, renewals, and repairs. 4 per cent.. £10,000; cablo staff, New Zealand and New South Wales, £4000; or a total of £22,750. These figures are throughout on a fairly extravagant basis, particularly as regards the cost of the cable itself, which, from enquiry I have made, I think can bj> put down at nearer £200,000 than £250.000. A single cable such as proposed would easily take 40,000 words a day for 300 days in the year, which at a penny a word would give an income of £50,000. This, of course, shows the maximum capacity of- the cable. Taking the present business at 1,800,000 words, it would be a very short timo before the business reached 5,G00;000 words, which at a penny ,i word would amount to £21,000. In tho case of a Government-owned cable bstween New Zealand and Australia, we would not require any additional staff for manning the land lines, as wo at present keep a staff for more than the ordinary requirements of the public of the same kind. Now, in estimating the capacity of the cables, I have taken tho existing basis. If. iuwevev, as was recently reported, it id possible to apply the Pollak-Verlag system to cable work, the capacity of the cables would bo increased ten or twonty fold so far as business cables were concerned. It is really only a question of their capacity in carrying enough work to make a low charge payable. The figures for the N^y Zealand-Australian cable show that it is possible at, a p-enny a word to make a considerable profit under existing conditions if the wire is fully occupied. Practically the same figures might be applied to a cablo between Canada and Ireland, which would be about 1910 miles long. Tho cost would be relatively cheaper than laying a cable in the sea •waters, -as the cable-laying vessel would hot have to make a long voyage before 'starting work. I give the foregoing, indicating that the course which Mr. Henniker Heaton is pursuing has a great deal to be said in its favour, and I feel with him that, though there are difllculties in the way of establishing penny cable services to various parts of the British Empire, on account of the large initial cost, tho lowering of the rates to much below those existing is not only possible,' but is desirable from every standpoint, and it seems to me that the great object to work for is the various portions of the British Empire-. to have their owji cables, and if that can be brought about the greatest stumblingblock that has up to now caused high rates to be continued would) be removed. I do not wish to convey the impression that tho proprietors of privato cables, with the, responsibility upon their shoulders, have not pursued a right course, but the returns from Empir3-owned cables would not have to be graat, ana in addition, the wise policy of lov/ charges that exist on State-owned telegraphs could with safety bo applied if the cables within the Empire were Stateowned."