THE PACIFIC CABLE.

New Zealand Herald, Volume XXXII, Issue 9831, 28 May 1895, Page 4

THE PACIFIC CABLE.

The reply of Lord Rosebery to the deptj t&tion from the Chambers of Commercy foreshadows favourable action on part of the Imperial Government in relation to the proposals re the Pacific cable, and the Canadian Pacific mail service. It is a pity that these two projects have been so intimately associated in the pressure that has been brought to bear on the British authorities; for while the mail service has but little prospect of receiving the substantial support of the Australasian colonies— in view of the small benefits to trade that have resulted from two years of the experiment, and because of the small prospect there is of its becoming anything beyond a service dependent entirely on public subsidies— the cable service appeals to the practical interests as well as sentiments of the colonies, as one of the most valuable public enterprises in which the group of colonies can engage. The consideration of the former of these may be dismissed in the meantime, inasmuch as the general indifference of the Australian colonies will not reciprocate any action likely to be taken in respect of it by the Imperial Government under the pressure of Canada. But, speaking of the Pacific cable, it is extremely satisfactory to see that the rigid abstention of the Imperial authorities in respect of such enterprises shows signs of relaxing, and that this scheme is regarded as exceptional in its character. It requires but the acquiescence of the Home Government to have this project at once put in operation, for while Canada seems to have been chafing under the delay, there has been nothing of a public nature projected in relation to the colonies that has elicited less dissent throughout Australasia. It is not improbable that the matter would have taken initial shape before this, had it not been felt in the colonies that it was unreasonable that England should stand aloof from an undertaking in which she must be as beneficially interested as either Canada or Australasia, and one so plainly of an Imperial character. The prospect now is that . the British Government will express its ' acquiescence, and the only thing to .be considered will be the choice of the source of tbe means from which the cable may be constructed and worked. It is needless to say that with the joint guarantee of England, Canada, and Australasia, there would be a keen competition among speculative syndicates as to which one of them would reap the rich harvest of profits that would come of cheap capital and a profitable going concern. But it is difficult to see on what grounds the Governments would be warranted in allowing such a thing to pass from their hands. If tbe Governments can own railways, they can, on the same principle, own an electric cable : and if to prevent monopoly and to secure to the public the advantages of traffic on an iron track exclusive in its nature, are the objects aimed at by Governments in owning and working the railways, the same applies in a stronger degree to an electric cable, such as that projected across the Pacific. There is the further claim that there is nothing speculative in the results. The total cost of the cable is estimated to be £1,600,000, a sum which, on the united guarantee of England. Canada, and the colonies, would be subscribed in a day on a guaranteed interest of 2i per cent. The total liability, therefore, would be £40,000 a year, which, if divided equitably— £20,000 for England and £10,000 "each for Canada and Australasia—would leave an annual liability to a colony such as Ne'v Zealand of some £2000 a -year. Even if the cable only paid working expenses and repairs this would be the total amount of our annual expenditure. But the most careful calculation, bassd on the sition of the cable carrying but half the traffic of the antipodes, leads to the conclusion that not only would there be no such liability, but more probably a handsome profit to be divided, warranting a continual decrease of tariff from year to year till the cost per word had reached a minimum. This on the supposition that the Pacific cable received but half the custom. But, if owned by the Governments and worked for the people, what is there to prevent the Pacific cable from virtually carrying all the traffic ? Having command of the land lines, the Governments could divert all the cable messages to their own cable, and in duty to the public interests would probably feel bound to do so. Whether in view of tbe severity of the pressure of the cable monopoly in the past, the Governments of these colonies' felt justified in taking this course, or whether they decided to divide the traffic with the existing lines, they would have the control of both services in their hands, and could make terms for the benefit of the public that no private company however backed by subsidies would be able to effect, under any circumstances the project of the Pacific cable is certain to prove a remunerative one ; and if the selfishness of private interests does not succeed in diverting the enterprise and its profits into private hands, or if the powerful influence of the* associated Cable companies at Imperial headquarters is not successful in thwarting the scheme, the Pacific cable is not unlikely to hold the eminence of being the greatest and most successful enterprise in which any or all the colonies have ever been engaged.