CABLE RATES.

Hawke's Bay Herald, Volume XXII, Issue 7550, 25 September 1886, Page 3

CABLE RATES.

Sir, — 1 am instructed to communicate to you the accompanying copy of a telegram forwarded by tiie chairman of the ' Eastern Extension Australasian and China Telegraph Company (limited) to the 'Government of New Zealand, notifying that the tariff of tho Sydney-Nelson cable for intercolonial telegrams will, on and after tho Ist of October proximo, be ten shillings for ten words and one shilling for. each additional word, instead of six shillings for ton words and sevenp.ence for each additional word, as heretofore. The com T pany have delayed taking this step for the, last eight months, hoping that the nepessity for it might be avoided, but having, after prolonged negotiations, failed to obtain a removal of the subsidy, which expired last February, and the receipts without tho subsidy being in. Bulucient (after ten years' working without a' single interruption during the wholo of that period) to give a net return of 2 per cent, on the capital invested, they have no alternative but to raise the tariff to recoup the loss of the subsidy. The Government of New South Wales, as far baok as June, 1885, agreed to renew their share of the subsidy tor a further ten years, and In consideration of suolj concession the company were prepared to reduce tiie tariff to live shillings per ten words for ordinary, and to threenonce per word for Press telegrams, but the Parliament of New Zealand would only agree to renew the subsidy for five years ou conditions unacceptable to the company. Subsequently _ tho company ottered to make the tariff any figure tho colonies pleased, provided the 'average of their receipts for tho last threo years were guaranteed. This would have given the colonies full control over tho tariff, and a cheaper rate could thus have been obtained than it would be possible to establish by any other reasonable means, and if tho opinion frequently expressed in tho colonies that cheaper rates would lead to a 'corresponding growth of traffic were borne out the amount of guarantee the colonies would have to make up would be quite nominal. The proposal, however, was declined, and the ' New Zealand Cjovonunenj; now withdraw the offer sanctioned by Parliament for a renewal of 'the' subsidy 'for' five years. Under these ''circumstances the company is reluctantly compelled, in the interests of their shareholders, to raise tho tariff as above annpnnced, and tho responsibility for this course must rest with tI)C Government of New Zealand mid not with the Rqijipaiiy, ,ap t)io latiol: have exhansted all possible liieans of i bringing about a satisfactory solution of tho question. A complete copy of the correspondence rotating to the negotiations between the company and the Governments of New Zealand

and New South Wales will be received in a few days, when it will be forwarded to you for publication.— Yours faithfully, W. \VOOLN9uaII Browning, Superintendent. . Cable Bay, Nelson, Sept. 24, 1886.