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New Zealand Mail, Issue 767, 12 November 1886, Page 23

Judging from a semi-official statement which has been published of the Premier’s views on the great cable controversy, the Government intend to adhere to the position they have taken up in this unfortunate dispute which is so severely exercising the Press of New Zealand and Australia. It is not at all surprising that a general anxiety should be felt for some amicable arrangement to be arrived at, for the increased rates now levied by the Cable. Company necessarily press very hardly on all who are compelled to use the cable, and most of all on the newspapers of this Colony; while the public generally who do not directly U3e the cable will also suffer indirectly, both by having to pay in various ways a share of the increased expenses of merchants, banks, &c., and by having the abundant cable news, to which they have become accustomed, very seriously curtailed. The Government, as we understand their attitude, object for two main reasons to concede the subsidy demanded. These are —Ist, that the Colony cannot afford to throw away several thousands a year not justly due; and 2nd, that if tied down to pay for a term of years a subsidy to the present Cornpan v, the Colony would not be in a position to entertain far more favourable proposals expected from a new Company, or to adopt the alternative plan of laying a cable of its own — believed to be a more economical course. We need hardly say that we entirely sympathise with the Government in their desire to economise. In the present and prospective condition of the revenue, retrenchment is more than ever imperative, and even the smallest possibilities of saving cannot with propriety be neglected. At the same time there are some outlays which are clearly justifiable or even necessary, and the plea of economy is not always by itself a complete answer. In the present instance it ought to be borne in mind that the people who actually use the cable are by no means all who benefit from its existence and working. Every person in the Colony enjoys an indirect but unquestionable advantage in the fact that telegraphic communication with the rest of the world is always available. In the event of impending war, the usefulness of such possibilities of communication are self-evident, and there are many other cases in which the benefit will be manifest to every sensible person. It is quite fair, therefore, that the entire cost of this benefit should not fail solely on the shoulders of the few who gain direct advantage, but that it should be partly borne also by those who reap a share of the indirect benefit. In other words the expenses ought not to be wholly met out of charges, but may fairly be contributed to by the general taxpayer by means of a subsidy. That is quite plain and undeniable. But the other objection is undoubtedly a very weighty one. It would be a serious misfortune if this Colony were so to tie its own hands that it could not enjoy the enormously improved facilities in the way of cheap telegrams which are offered by the new Company now sought to be floated. These facilities are ,so vastly superior to anything proposed by the present Company—or, perhaps, in their power to afford—that it would be a thousand pities if we were to put it out of our own power to accept such a boon. From this point of view there is a great deal to be said in support of the Government’s attitude, always assuming it has been duly ascertained that we are not grasping at a shadow and losing the substance. But indeed the merits of the whole case turn on the question whether Ministers are or are not accurately informed as to the true circumstances, and as to their own powers. We have hitherto given a cordial support to the Government in the stand they

have made against what appears to be an unjust demand, but we have also made it perfectly clear that our support is given wholly on the assumption that Ministers are accurate in their view both of the facts and of tbeir powers. We must confess our confidence has been somewhat shaken by recent events. The doubt expressed as to the Company’s power to levy the menaced higher rates has been resolved m the most practical manner —the rates are being levied. The threatened appeal to outside authority has been shown to be untenable. The contention that the Government could withhold adequate accommodation, or make a charge for * it, seems to have been equally unsound,, so far as can be gathered from the published statements. The move of levying terminal charges wa3 met with an effective counter-move which always seemed to us obvious- — that of adding the terminal charges to the original cable rates from. Australia ; and the refusal of the Australian Government to collect the extra rates has brought matters to something very like a deadlock, from which no dignified exit seems practicable. It appears to us that, before any definite opinion of the slightest value could be expressed as to the course which the Government should now take, explicit and satisfactory answers need to he given to the following questions r Ist. Is there a reasonable prospect of the desirable proposals with reference to the Pacific cable being carried into effect, and soon? 2nd. Who is right—the Government or the Cable' Company —as to the questions off fact and powers now in dispute ? If such answers be favourable to the position assumed by the Government, then we say unhesitatingly that Ministers ought to be strongly supported in their action. But if not, then the sooner Ministers pocket their dignity and make the best terms practicable, the better for everyone concerned.