PACIFIC CABLE RATES.

New Zealand Herald, Volume LXIII, Issue 19511, 15 December 1926, Page 13

PACIFIC CABLE RATES.

f MEW TARIFF PROPOSED. fREOUCTION OF to fl WORD, (' REBATE OF £50,600 A YEAR, i BOARD POSTPONES DECISION. I SBy Tele-crrsph— Association—Copyright. (Received 7.30 p.m.) i A. Jind N.Z. LONDON, Doc. 13. [ Proposals for a substantial reduction in the Pacific Cable Board's rates were considered at to-day's meeting of the board. The new tariff involves a reduction of 4d a word between New Zealand and Britain; 3d a word between New ZeaJpnd and Canada, and 5d a word bettveen New Zealand and the United States. The Australian rates would be respectively 6d, Sd :ind 8d lower. The new tariff would have come into operation on January 1 if the Commonwealth and the Imperial Governments agreed to their shares of the reductions. The proposals mean an immediate loss of revenue to the board of £50,600, but the board hopes its new expeditious service will bring such an access of business as will quickly neutralise the loss. The board is mindful of the early possibility of beam wireless competition and is also convinced that tho heavier traffic of which the new loaded cables are capable, coupled with reduced rates, is bound to act as a magnet for business. Details of Charges. Following is a summary of the charges consideration, the existing rates being shown in parentheses:— NEW ZEALAND. Ordinary. Deferred. Govt, s. d. s. d. d. 6. d. 8. d. s. d. Britain 1 11 (2 3) 11* (1 1J) 10 (13) Canada I 6(1 D) 9 (0 10J) 0 101 (1 0) Western ' States 1 7(2 0) 3J (1 0 ) 1 © Eastern States 1 11 (2 4) Hi (1 2 ) 1 i ■ AUSTRALIA. Ordinary. Deferred. Govt.. s. d. 8. d. a. d. s. d. s. d. s. d. • .Britain 2 0 (2 6) 1 0 (1 3) 1 01 (1 4) Canada. 17,(2 0) 0 91 (1 0) 011 (1 2) Western States 18 0 10 18 ' Eastern. • ' States 2 0 10 15 It is estimated that the reductions in the rates between Australia and Britain and New Zealand and Britain will entail a loss of revenue of £24,000 a year. It is understood that, subject to the through rates being reduced, including those on the Imperial Government Atlantic section, tho Commonwealth is willing to reduce its landing charges to 2d on ordinary messages, Id on deferred and on Government. It is not proposed to ask for a reduction of New Zealand's '-already lower terminal fees. Press Rates Unchanged. i The loss on Canadian traffic is estimated at £5600 and that on the American •business at £23,000. | It is revealed that since another comjpany entered the United States-Australian->New Zealand field, the Pacific Cables [outward business has fallen by nearly Vhalf, but far less in business from the 'Antipodes. j Reductions in tho rates for letter teleLgrams are not contemplated until the Effect of. the reductions is seen, nor will (press traffic participate in view of the Recent lowering of its rates. The meeting of the board discussed the (proposals at length, but deferred a decision until after Christmas. It is unIderstood that negotiations are being continued to obtain tho Imperial Governfenent's assent to reduction of the charges L its Atlantic cable, those suggested feeing .tgd ordinary, Jd deferred and jjd | The present proposals constitute the tixth reduction in cable charges _in a quarter of a century. In January, 1893, the ordinary rate between Britain and New ■Zealand was reduced from 10s 2d to 5s Jgd. When the Pacific cable was approaching completion in 1902, tho rate was reduced to 3s 4d as from Juno 1 of that. Year, and when tho cable was opened on juecember 8, 1902, the rate fell to 3s. Jt was again reduced in 1915 to 2s 8d |'«nd to 2s 3d as from December 1, 1924. I LAYING OF NEW CABLE. IMPROVEMENT IN SERVICE. I ' * Australian and N.Z. Cable Association. 'tßecd. 7.35 p.m.) SYDNEY. Dec. 14. ' A large and representative gathering toi leading business men attended a puncheon at the Hotel Australia to-day to celebrate the laying of the new Pacific cable from Bamfield to Suva. Speeches were delivered by the Gover-nor-General, the manager and the general superintendent of the Pacific Cable Board. Mr. W. M. Hughes and others, all of >vhom emphasised the importance of the increase in the cable facilities afforded to 'Australia and New Zealand, and the much improved capabilities of tho duplicated Service.