THE New Zealand Herald. AND DAILY SOUTHERN CROSS. WEDNESDAY, JANUARY 16, 1901.

New Zealand Herald, Volume XXXVIII, Issue 11552, 16 January 1901, Page 4

THE New Zealand Herald. AND DAILY SOUTHERN CROSS. WEDNESDAY, JANUARY 16, 1901.

It is the distinct duty of our Government. to enter into no arrangement with the Eastern Extension Company which will in any way detract from the prospects of the Pacific cable so soon to be laid. The great cable monopoly, with an energy which clearly shows its sense of the interests involved, has already commenced work on the line between Australia and the Cape, and information from Australia shows I that an arrangement has been made with the authorities of New South Wales and Victoria whereby a sweeping reduction in cable, rates between Australia and England will be inaugurated from February 1. Into this arrangement it is said that New Zealand will probably enter. But much as we are desirous to secure some relief from the heavy cable charges under which our commerce labours, it is very easy to pay too dearly for temporary advantage. Not merely is the Pacific cable the national property of Britain and her Pacific colonics, so that we are financially interested in making it as productive as possible, but its anticipated competition is the cause of the terms now being offered. From the inception of the national cable idea, the great cable company has sought to secure itself against such a rival, and to rivet the fetters of monopoly by pre-empting the cable outlets of the southern hemisphere Foiled in the Pacific, it hastens to occupy the Cape route, and prepares to retain the largest possible share of our future business. We do not blame its shrewd management for this. In them it is nothing moxe nor less than keen commercial foresight. But we expect that our Postmaster-General will be equally shrewd on our behalf, and will realise that we are really fighting a battle for the freedom of the world's telegraph lines. Five years ago, such concessions - might reasonably have bought the support of any colony. Now, even if the offered 3s 6d a word rate were made Is 6d, it

is too late to yield one inch of the ground we have so arduously won. The position of the world's cable service has for some time been incongruous. Outside of the American continent, land lines are practically national property in all civilised countries. The reason is self- | evident. They: are not only as es- | sential to civilised existence as I roads, harbours, railways and postal | services, but are absolutely akin to | postal services in their nature. As I the world depends upon the mails I for its ordinary messages, so it dc- ; pends upon the telegraph for its J special messages. In this everybody is immediately and equally interested, for though many do not s?nd a cable message in their lives, the cable message furnishes them daily or weekly with their latest w;,rldnews, governs the markets in which all buy and sell, is the life-blood of our Imperial and international unity. With all its weaknesses—and they are many— national telegraph service ,is of unchallenged advantage wherever it has become established. The cables have been left in the hands, of companies only because there did not exist in .he past that Imperial understanding which now makes them possible in the British world, as broader international understanding will soon make them possible throughout civilisation. We may recognise to the fullest the ability and the energy of men like the late Sir John Pender. We can deal justly and fairly with great cable companies like the Eastern Extension. But we have paid to the uttermost farthing, in hard eaph. the debt of gratitude we owe to the private companies which did what national institutions were once too parochial to undertake, and can inaugurate with easy conscience the public cables of which the Pacific line is the pioneer. The time is very close at hand when the telegraph business of the civilised world will be in the hands of our governments. This is demanded by every national, commercial and industrial consideration; to delay its complete success by compounding for momentary advantage with the great cable monopoly, to the possible detriment of the pioneer line, is indeed selling our birthright for a mess of pottage. There has been for many years a seething commercial discontent with the private cable system. The natural hesitation to invest large sums on any route which did not promise immediate returns; the natural desire to concentrate all business upon routes already established ; the natural determination to make as much revenue as possible; have opposed the Eastern Extension to the commercial world. The pressure brought to bear by Australasian Governments finally secured the ; reduction of rates to England to the j present charge—from New Zealand 5s 2d per word. Had no practical | steps been taken by colonial governments, it is probable that an Eastern Extension cable would in a few years have crossed the Pacific, and, connecting with the United States system, have girdled the earth with private 1 fries on the greater part of which no restraining competition would have been exercised. Fortunately, the hesitations and delays of the private cable company forced the question of a public cable to the front. It was found io be as possible as it is desirable to lay a cable which would touch only on British soil and to connect with the Canadian service. Strong support was found in the United Kingdom, and finally the Imperial Government agreed to take joint part with the colonies interested in laying and working an "all-British" line. The contract has been made, and we shall soon be able to reach Canada by our own Government route and thence to London over lines practically exempt from monopoly. The cable will lie from Vancouver Island to Fanning Island, in the Fijis, thence branching to New Zealand and Australia. It was estimated that it would pay at 3s 6d a word to Britain; to this intended rate the Eastern Extension Company is suddenly ready to descend, in consideration of concessions which will put it in a position to draw business from our public route. Instead of making any agreement which will increase the already too vast vested interests of that great company w'e would suggest to the Government that it should seriously consider the advisability of taking steps to add the Tasman Sea service to our public telegraphs in co-operation with the Australian authorities. This would be more in accord with our interests.