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New Zealand Herald, Volume XXIII, Issue 7772, 19 October 1886, Page 4

d It will be seen from our Wellington n messages that the New Zealand Governe ment have forwarded their ultimatum to J- the Eastern Extension Telegraph Comt pany in reply to their agent's memorani- dum of the 28th September, postponing e till January next their threatened in--7 crease of the cable rates. Notwithstand- * ing the advice of the New South Wales e Postmaster-General, who appears to have i. resiled from his original position, the t Government, according to Sir Julius 3 Vogel's statement, have finally decided " not to give any further subsidy. In this they will certainly be supported by 1 Parliament. After rejecting the proposal i sanctioned by the House last session that • the subsidy should be continued for a I few years, on condition of the rates being 5 lowered, the company are not entitled to x any marked concession. They have , sought to obtain unreasonable advantages to themselves without giving 5 any equivalent benefits to the colony. 5 They were not warranted by their i contract to demand any renewal of the subsidy ; neither are they legally entitled . to make the refusal of it their justifica- , tion for imposing heavier charges ; and we are fully convinced that, if this point | were argued in a court of law, the decision would be favourable to the Government's contention. But, without incurring the expense of liitigation and the risk attend- , ing all legal proceedings, the Government are in a position to pay the company in their own coin, if they attempt to subject the colony to extortionate cable charges. Should they carry out their threat to increase the rates the accommodation which they now receive from the colony free of charge can be withdrawn from the company, while a terminal charge can be imposed on all their communications. And, as will be observed, formal notice to this effect has been given them by Sir J. Vogel. This will convince Mr. Pender that the colony is not to be browbeaten into a compliance with his company's unreasonable demands. At the same time the Government have evidently no desire to be compelled to resort to retaliative measures, and have wisely made the company a proposal which it is to be hoped they will in their own interests, as well as those of the colony, see their way to accept. That proposal is, that the present rates on ordinary messages remain as they now are ; that the rates on press messages should be reduced to threepence a word, on the press guaranteeing to supply a revenue equal to the average of press payments during the last three years ; and, on the company agreeing to this, the Government undertake to give them twelve months' notice before any new cable is opened. . The offer is a reasonable one, and presents a compromise which the company will do well to accept. : Whether, after the irritation which their persistent endeavours to overreach the colony and the colony's resistant attitude i have created in their minds, they will now be amenable to moderate counsels remains i to be seen. But the probability is that the construction of a Pacific cable being ' assured will appeal to their good judg- ' ment more than any other arguments that could be adduced. Should it prove otherwise, however, and their threat to ' raise the rates be acted on, the result, ] though it would inflict a temporary incon- £ | venience on the colony, will eventually t j entail on the company a serious loss both ( lin prestige and in revenue. It may be ( taken as granted that they have sufficient i business shrewdness to perceive this, and will decide on the course best calculated i to avert any unwelcome consequences. ]