PACIFIC CABLE

Hawera Star, Volume XLVI, 15 December 1926, Page 7

PACIFIC CABLE

REDUCTION IN RATES. SUBSTANTIAL CUT PROPOSED PROPOSAL FOR NEW ZEALAND Y CABLE—PRESS ASSOCIATION —COPYRIGHT.. LONDON, Dec. 13. Proposals of a far-teaching character were considered at to-day’s meeting of the Pacific Cable Board, for a isubstantion cut in the rates on its .route. They would have taken effect from Jamiaiy 1 if the Commonwealth and Imperial Governments had agreed upon their shares in the reductions. The proposals mean an immediate lons of revenue to the board, amounting to £50,5000, but the board 'hopes les new and expeditious service will bring isucii an increa.se of business thatit will quickly neutnalise the loss. The board is mindful of the early possibility of beam wireless competition. It is also convinced that heavier traffic, of which the new loaded cables will be capable, coupled with reduced rates, is bound to act as a magnet for business. These 'reductions will entail a- loss of £24,000 a year. It is understood that subject to through rates, being reduced, including the Imperial Government's Atlantic section, the Common wealth is willing to reduce ‘landing charges respectively to 2d, Id lid. It is nob proposed to ask for a reduction of New Zealand’s already lower terminal fees between Canada and Australia. The suggested redaction is: Ordinary, 2s to. Is 7d; deferred Is to 9icl; Government Ls 2d to lid ; and between Canada, and New Zealand, Is 9d to Is (kl, 10id to Del; Is to. 10Jd. These reductions involve a. loss of £3600.

The proposed rates from Western States of America to Australia and New Zealand respectively are: Ordinary, le 8d and Is 7d; deferred, lOd to. 9jd; Government, Is 3d and Is; and from Eastern States of America respectively: Ordinary, 2s and Is lid; deferred Is and lli-d; Government, Is 5d and Is 4d. The losses in these cases are estimated at £23,000. It is revealed that since another company has entered the field, the United States, Australia and‘New Zealand outward business has fallen to nearly half, .but by far less in business from the Antipodes. Reductions in letter-telegram are not contemplated till the effect of the reduction is .seen, nor will the Press participate in view of the recent cheapening. The meeting of the board lengthily discussed proposals, but deferred decision till after Christmas. It is understood that negotiations Sfe being continued to obtain the Imperial Government’s a.ssetji to cuts on the Atlantic section. Those suggested are lid. id laud id respectively.

LAYING OF NEW CABLE CELEBRATED. SYDNEY, Dec. 14. A large and representative gathering of leading business men attended a luncheon at the Hotel Australia to celebrate the laying of the new Pacific cable from Bamfield to Suva. Speeches were delivered by the Gov-ernor-General, the manager and general superintendent of the Pacific Ga.ble Board Mr. W. M. Hughes and others, all of< whom stressed the importance of the increase in. the cable facilities to Australia and New Zealand and the much improved capabilities of the duplicated service.