AN "ALL-RED"' CABLE.

New Zealand Herald, Volume LVII, Issue 17444, 14 April 1920, Page 6

AN "ALL-RED"' CABLE.

— —♦■ . Developments of the highest importance in the history of the Pacific Cable are recorded in the annual report for the year ending March 31, 1919. The scheme of an "all-Red" cable service between Britain, Canada, Australia and New Zealand has at last been realised by the establishment of an Imperial Atlantic cable, connecting with the Pacific service at Halifax, and operated by staffs of the Pacific Board and the British Post Office. This was one of the cables surrendered by Germany under the Peace Treaty as a contribution towards the reparation bill; originally it extended from the Azores to New York, but during the war connections were made with the British Isles and Nova Scotia, and last year this independent connection between Britain and Canada was brought into use, the Pacific Board leasing a land line to connect its Montreal office with the Halifax end of the cable. The year's operations of the Pacific service have again been highly satisfactory. Over 8,300,000 words of international traffic were handled, compared with 7,450,000 words in the previous year, while the business in the Southern Pacific also increased. As a result, the traffic receipts reached the record figure of £554,512 compared with £402,000 iu 1917-18, while administrative expenses increased from £162,000 to £186,000. In addition to the statutory payments on account of the cable loan, amounting to £86,695, the board has transferred £180,000, beyond the normal payment of £30,000, to the reserve and renewal fund, set aside 18,000 as an insurance fund on account of its schooner, and created a suspense account of £50,000 with a view to improvements in the staff provident fund. There remains a balance of £9580 to be applied in reduction of the original advance of £2,000,000 for the capital of the cable. It is \ gratifying that the board has at last abandoned the idea that peace conditions would reduce the traffic on the system to the' level at which it stood before the war, or even below it. Writing his report last September, the chairman, Sir H. Babington Smith, anticipated a fallihg-off but considered "it is probable that traffic will remain at a level which will be higher than that of the prewar period." The experience of the past seven months shows that the congestion is as great as ever, although the board has now the greatly improved facilities for the Atlantic section of the Imperial cable and the Marconi wireless service. In view of the remarkably strong financial position disclosed by the last report, the board might now consider the duplication of the Suva-Fanning-Bamfield sections, the necessity of which has long been recognised. It might also consider a reduction in cable charges.