THE PACIFIC CABLE.

New Zealand Herald, Volume XLVI, Issue 13969, 27 January 1909, Page 7

THE PACIFIC CABLE.

QUESTION OF CHEAP RATES.

BOARD'S FINANCIAL POSITION.

[BY TELEGRAPH. OWN CORRESPONDENT.]

Wellington, Tuesday. TiiL manager in the Pacific for the Pacific Cable Board (Mr. John Milward). who is visaing Wellington in the interests of the hoard, in an interview witn a Dominion reporter, said that the cable was still working very well and giving no trouble in any way. Against the popular idea that money is being lost annually, Mr. Mihvard contended that the giadual repayment of capital ought not to be regarded a* a recurring deiicit. Toe position was that the Imperial Government had advanced two millions •'telling, which was living repaid at the rate of £77,000 per annum, while £33,000 per annum in addition was being set aside for tho renewal of the whole of the ••lb'.e, which would be necessary at the end of 50 years, I'll" fact than the Governments concerned were contributing soir.dhing ~r.rr.al!\ tow aids the repayment of the capital did not, Mr. Mihvard contended, justify the public in considering that the cable was being worked at a loss. In any case. the money was well spent, as it had led to the lowering of the rates.

Asked whether it. his opinion the further lowering of the rates to a penny a word, as proposed by Mr. Hennikcr H calm, was practicable, Mr. Mihvard replied,

"No; certainly not, if the cables are to be worked so as to meet ordinary expenses. 'i he carrying capacity of a cable is limited. We can only send a thousand words an hour over the Pacific cable, and no main ocean line lias- a much greater capacity than that. It is ease 30 see that at a penny a word the revenue could not exceed £50.000 a year, and our present working expenses are twice that sum." In regard to any less sensational reduction of rates, Mr. Mihvard was not* prepared to make any definite statement, but he pointed out that the matter was by no means all in the hands of his board, because all messages between Australasia and Britain, via the Pacific cable, had to cross Canada and the Atlantic on privatelyowned lines. Rather less than half the rates went to the Pacific Cable Board.

Mr. Milward looks with favour on the proposal to link up the islands of the Pacific by wireless telegraphy. Such a scheme would provide the Pacific cable with feeders from localities where submarine cables would not at present be profitable. At the same time, he considered that wireless telegraphy was not in its nresent stage of development, sufficiently reliable for commercial work over long distances, though it was distinctly useful in its sphere.