REDUCTIONS IN CABLE CHARGES

Manawatu Times, Volume XLXI, Issue 3481, 15 December 1926, Page 7

REDUCTIONS IN CABLE CHARGES

To Meet Beam Wireless Competition

FOURTEEN PER CENT ON ORDINARY RATES

[By Electric Cable —Copyright,] [Aush and N.Z. Cable Association.] (Received Tuesday 0.45 p.m) LONDON Dec. 13. Proposals of far-reaching characters were considered, at to-days meeting the Pacific Cable Board, for a substantial cut in the rates on us route. They would have taken effect from January Ist it tno Commonwealth and Imperial Governments had agreed upon their shares in the reductions.

The proposals mean an immediate loss of revenue to the Board, amounting to £50,500, but the Board hope* that its new and expeditious service will bring such an access of business that it will quickly neutralise the loss.

The Board is mindful of the early possibility of beam wireless competition. It is also convinced that the heavier traffic, of which the new loaded cables will be capable, coupled with the reduced rates, is bound to act as a magnet for business.

Detailed proposals for the reductions between Britain and Australia are: Ordinary from 2/6 word to "/-, deferred 1/3 to 1/-, Government 1/4 to l/o£.

In the case of New Zealand, the reductions will be: Ordinary 2/3 to 1/11, deferred 1/6J to UJd, Government 1/3 to 1/-. These reductions will entail a loss of £24,000 per year. It is understood that subject to through rates being reduced, including the Imperial Government’s Atlantic section ,the Commonwealth is willing to reduce landing chalrges respectively to 2d. Id and lid. It Is not proposed to ask for a reduction of New Zealand’s already lower terminal fees. Between Canada and Australia, the suggested reduction is, ordinary 2/to 9sd, Government 1/2 to lid. and between Canada and New Zealand ,1/9 to 1/6, 10id to 9d, 1/- to IOJd. These reductions involve a loss of £3,600.

The proposed rates from the Western States of America to Australia and New Zealand respectively are, ordinary 1/8 and 1/7, deferred lOd and 9id, Government 1/3 and 1/-. and from the Eastern States of America respectively, ordinary 2/- and 1/1.1, deferred 1/- and Hid, Government 1/5 and 1/4. The losses in these cases are estimated at £23,000. It is revealed that since another company has entered the United State,s Australian and New Zealand field, the Pacific’s outward business has fallen to nearly half, but far less In business from the Antipodes. A reduction in letter telegrams is not contemplated till the effect of the reductions is seen, nor will the press participate, in view of the recent cheapening. The meeting of the Board lengthily discussed the proposals. but deferred decision till after Christmas.

It is understood that negotiations are heing continued to obtain the Imperial Government’s assent to the cuts on the Atlantic section. Those suggested arc lid. 5d and 3d respectively.