RIVAL CABLES.

Lyttelton Times, Volume CIX, Issue 13121, 8 May 1903, Page 5

RIVAL CABLES.

THE PACIFIC BOARD. 'NEW ZEALANDCANVASSERS APPOINTED. [FIIOJI OUII CORRESPONDENT.] WELLINGTON, May 6. The Post Office Department has issued a circular justifying the employment of certain oi .its'.officers, at the request of the Pacific *)ablo Company, in canvassing for business for that company's cable. The arguments set forth are that New Zealand has a share of one-ninth in the Pacific cable, and i? consequently liable to payment of upwards of £IO,OOO should the loss on the first year's working reach the estimated amount, viz., £94,000. It is, therefore, to the advantage of every taxpayer in the colony that the Pacific cable * should be utilised to its utmost capacity, and it is almost a duty on the part of senders of cablegrams to support the line. It is also a duty to support an institution that has caused enormous reductions in cabling rates, and that offers the most expeditious mode of transmission. Prior to the advent of the Pacific cable, reductions in the cable tariff had always to be preceded by an undertaking on the part of the colonial . Governments to indemnify the Eastern Extension Company against loss of [revenue. ,' For instance, when the rate to Europe was reduced in 1893 from 10s 2d to 5s 2d per word, a guarantee was given that the revenue derived from international cablegrams should amount to £237,736 per annum. The amount of the guarantee was reduced in 1895 to £227,000. When the Wakupuaka-Sydney cable was opened in 1876, a subsidy of £SOOO for ten years was required. In 1893, on a guarantee that tho receipts from that cable should not ba less than £26,258 per annum, the cable rate to Sydney was reduced. Subsequently, in 1895, the amount of the guarantee was reduced to £20,000. On the expiration of these agreements, however, the company initiated a threepence a word rate from Wakapuaka to La Perouse, thus increasing the cost of a ten-word message to Australia by sixpence. Between the years ISS3 and 1900 New Zealand paid £19,074 9s 7d (or practically £20,000) to tie Eastern Extension Company on account of guarantee, agreements. When the Pacific Board commenced business in. April, 1902, the rates to Australia by either route were reduced as follow:—New South Wales sd, Victoria 6d. Queensland 6d, South Australia 6d, Western Australia 6d—all reduced to 4£d per word 1 ; Tasmania, Bd—reduced, to sid per word. The Fawning Island (Vancouver) section, of the Pacific cable was opened for traffic o'a Dee. 8, 1902, the a-ate to Great Britain iwing fixed' at 3s a word. The Eastern Extension Company immediately reduced' its rate to the sanis figure, having a few months previously red-weed i't to 3s 4d a word. _As an additional advantage the Pacific Board allows senders to insert, free of charge, the name of this country or State,' in case of doubt owing to the duplication of names of stations. Turning to tihe question of time, tihe Eastern Company a few months ago took albout six 'hours in transmitting a message to London. The average time at present, based on cablegrams received during the Vpaist- few weeks, is as follows: —Pacific, 3hr 3min ; Eastern Extension, 4'fon 34min. A file of messages from London to Auckland, Chirisfeclrurdh, Jlhiuediii and Wellington was taken promiscuously on n'our days last month, and they gave tho following results : —Average time: Pacific, 2hr 56min; Eastern, 4hr 30min. Longest time : Pacific, 4)kr 44min ; Eastern, 6hr 13miin. Shortest time: Pacific, Miir 39min; Eastern, 3'hr 15m'in.

The service to and from Australia is much quicker sirnce the opening of the Pacific cable, and the major portion of the Australian' and' New Zealand traffic rea'ches its destination well wi'tih'in the hour.

The present daily average of cablegrams from and' to 'New Zealand is 600, of which 400 are dealt with by the Pacific and 200 by the Eastern Extension. Under the old cable rates, last year's business would 'have cost approximately £132,296, owing to tJhe x-ad'U'c'tions in rates consequent upon the opening of the Pacific cable. The amounts actually paidi for transmission approximated £199,870, thereifoiio the amount saved by users of the cable totalled £32,426. The business during the present calendar year will probably result in giross receipts of £BB,OOO. The same -volume. of _ traffic under the old rates ■would have yielded about £142,000, audi would thus have taiken about £54,000 more out of the .pockets of useis of the cable.

The steip of canvassing for business has been forced on t'h© Board as a measure of self-protection a.nd to conserve its own interest*. The Pcslanaster-General concurs in this action, and the first steps have been taken in Wellington. The other centres of the colony will follow in the course of a day or two.