THE PACIFIC CABLE

New Zealand Mail, Issue 1511, 14 February 1901, Page 50

THE PACIFIC CABLE

INTERVIEW WITH THE PEE-

MIER.

PROPOSED AGREEMENT A BREACH OF FAITH.

“ BETTER TO BEAR THE

BURDEN.*’

NEW ZEALAND WILL BE NO

PARTY

Interviewed by a “Times” reporter last week as to the difficulties wh.c have arisen owing to New s*outh W ales agreeing to grant certain concessions to the Eastern Extension Company, the Right Hon the Premier said : •• The difficulty has arisen owing to the Eastern Extension Company asking that on the completion of the Pacific cable it should be allowed to open office* in different parts of the several colonies for the purpose of receiving and despatching cables, and that the company should have sole use of a connecting line with the transmitting station; and if this were granted it promised as from the Ist February to reduce the present charges from 4s lid to 3s 6cl per word.

> New Zealand and Queensland did not see their way t-o entertain these proposals without the consent of the partners to the Pacific- scheme. A conference took place between the Post-master-General of New South Wales (Mr Crick) and Mr Gurr, the Post-master-General (if. Victoria. At this conference both these Ministers agreed to grant the concessions asked for by the Eastern Extension Company. However, on the Victorian Postmaster-Gene-ral’s reporting to his Premier and colleagues that he, with the PostmasterGeneral of New South Wales, had signed the agreement consenting .to granting the concessions to the Eastern Extension Company, the matter was considered by the Victorian Ministry* and it declined to confirm the action of the Postmaster-General, unless the other contracting parties were also agreeable. The Victorian Premier communicated with Canada and the Imperial authorities asking their opinion on the matter. “ Canada has replied that the concessions to the Eastern Extension Company have very materially altered the conditions and seriously prejudiced the Pacific line, and that Canada would be unwilling to continue its adherence if the co-partners, without mutual consent, changed the basis upon which the partnership was entered into. “ By the cable messages to-day it appears the Imperial authorities have apprised the Postmaster-General that the Canadian Government may withdraw from the Pacific cable project if the Victorian and l New South Wales Governments accept the Eastern Extension ■ Company’s agreement. ‘ The Postmaster-General’s of New South Wales (Mr Crick) reply to the Hon H. Copeland, the Agent-General, begs the point altogether, and the contention is childish when lie says that the granting to the Eastern Extension Company of the use of the lines to connect with its offices direct and to establish offices of its own in no way interferes with the prospects of the Pacific cable. If there is no benefit to the Eastern Extension Company, why does it seek the agreement ? “ The opening of offices for the: transmission and receipt of telegrams and the direct connection with the transmitting station is bound to give the Eastern Company an advantage oyer the Pacific. There would be no check as to arrangement or charges. The principle of the State controlling the Telegraph Department would be discarded, and the situation would be so materially changed as to, in my opinion, prejudice the Pacific cable, and would lessen its earning power, seeing the Eastern Extension Company would have the advantage in having its own offices and connecting lines. If the Pacific cable did the same it would be an additional expense, and the Pacific cable would claim to have its separate lines and its separate conductions.

-'This would add materially to the Sost of the respective States. To prove his, the connecting lines to Wakapuaka and elsewhere in New Zealand would cost New Zealand £20,000. Mr Crick is ■squite right when he says that an Act of Parliament binds the State to pay its share in the loss of the Pacific cable. The earning-power of the Pacific cable was estimated on the condition then existing as regq/Ms the Eastern Extension Company, bur if the latter company is put in a better position than it was before as regards the signing cf the contract of the Pacific cable then a greater loss would be entailed on the other contracting parties, and they would receive no compensation what©YGT. “The! latest rates promised tc, be conceded by the Eastern Extension Company would give no advantage to Canada or to the Imperial authorities, whilst the earning power and loss would be increased. If there! was no acrvantage to the Eastern Extension Company, why should it concede Is od pet word ? Apart from this being a co-part-nership transaction, if some of the contracting parties objected and a bona fide difference of opinion existed as to probable results, as a matter of good faith the other partners should hesitate before doing anything that would pier

judico the position of the other partner*. “When in Australia I made it my business to confer with Mr Warren, the general manager of the Eastern Extension Company. It appears from him that a fear exists in some quarters that the business of the Eastern Extension Company would be diverted and sent over the Pacific lines, and that otherwise the! position of the Eastern Exten- . sion Company might be prejudiced, and that this' was the reason why the company asked for the concessions to have its own receiving and transmitting offices. “I * communicated with the _ Premier of Queensland, and also interviewed the Premier of Victoria on the subject, and suggested that a conference should be held, and that an assurance should be given to the Eastern Extension Company that its position would be in no way prejudiced when the Pacific cable was completed, and that every fair play would be given to it in the dispatch of cables and the transaction of its business. Time did not admit of a representative of the Queensland Government being present at the conference, which was subsequently held in Melbourne, but the Premier of Queensland (the Hon. Mr Philp) telegraphed that he concurred in an assurance being given

to the Eastern Extension Company that it would receive fair treatment, and

that its business should in no way be prejudiced, and that on this assurance the reduced rates should be given to all the colonies.

“The conference was attended by the Right Hon the Premier of Victoria, Mr Gurr, the Postmaster-General of Victoria’, Mr Warren, of the Eastern Extension and myself. The matter was fully discussed, and a joint memorandum to the Eastern Extension Company was agreed upon, and on the lines which had been suggested. At the conference it was. alleged that at the meeting of the Pacific Cable Board ?n London a suggestion had been mooted to have a common purse—in other words, that an arrangement should be come vo as between the Pacific and Eastern Extension Company and other transmitting companies that uniform Maximum and minimum rates should be charged. In case of a breakdown between lines, the other lines stiould transmit, charging to the company whose line had given way a percentage on the message so transmitted. As there was no definite information on the point, it was arranged that the Pacific Cable Board met contracting parties sliould be communicated ivith on this subject, and thus the matter at present stands.

“The communication received hoav from the Imperial authorities as to the attitude taken up by Canada puts a very serious complexion upon the situation. I note, further, that Canada couples Victoria and New South Wales together in the memorandum, for it says : “If Victoria and Netv South Wales accept the .Eastern Company’s agreement . . New South Wales has already accepted, and the agreement is signed as betAveen that colony and the Eastern Extension Company. Victoria, however, has not signed the agreement, nor is it bound to do so, seeing that Mr Gurr, at the conference, concurred with the New South Wales but it was not ratified by the Victorian Government. The Agent-General of Victoria has not signed the agreement with the Eastern Extension Company, and from what came to my knowledge when in Melbourne, I do not think there is any possibility Avhatever of a Victorian Government signing the agreement. “Summed up, the position is this: The principal contracting parties, Canada and the Imperial authorities, consider the Pacific cable Avould be prejudiced if the agreement Avith the Eastern Extension Company is made; for the other contracting parties to enter into such an agreement, prejudicing, as it does, the Pacific cable scheme, Avould be a breach of faith. If not done, then the Eastern Extension Company penalises Victoria, Queensland and New Zealand to the extent of Is 5d per word more than is charged to Ngav South Wales, which has entered into the agreement. It is better to bear this burden than to have it left open to be said that a breach of faith had been committed. “It is the first time that Canada and the Imperial Government haA’e entered into a contract Avith the colonies of Australia, and NeAV Zealand, and even though there may be some doubt as to whether the effect would be so detrimental to the Pacific cable scheme as alleged, it is better to err on the side of good faith and maintain the honour of the colony. It must~aiso be borne in mind that if the HMBgj&nßxtension. Company were to rates, and grant reduetlTras to one colony and refuse them. ,t<> the other three colonies of Queensland, Victoria and NeAV Zealand an ill-feeling Avould be created, and the treatment would be resented immediately the Pacific cable Avas opened. “Not only that, hut Parliament will have full power to deal with a situation such as this, especially with a company which is largely using the telegraph lines of the colony, and there is the other alternative, rather than commit that Avhieh. verges on the dishonourable, it Avouild be preferable for the colony to give the Eastern Company its pound of flesh and ask Parliament to make up the difference to the users of the cable, holding in reserve the right to c.large a sufficient extra amount when the Pacific cable, is completed, so as to teimburse the colony the amount \\hich

has been exacted by the Eastern Company in excess of the rates charged to the colony of Noay South Wales. “I have, iiOAvever, hopes of a satisfactory solution of the and that the agreement made by-New South Wales was come to hurriedly, Avithout knowing that serious objections Avould be taken by Canada and the Imperial authorities. If Canada withdraws from the Pacific cable, the colonies whl once again be at tiie mercy of tne Eastern Extension Company, and we shall have the one line, and the recent interruption ought to be sufficient in itselr to mark tne necessity there i.s for t'- ie Pacific cable.

•• The NeAV Zealand Government has instructed the Agent-General to inform Canada that it avill be n<y party to granting concessions to the Eastern Company to the prejudice of the Pacific cable, and will be no pavfy. unless with mutual consent of partners, to alter conditions ” CANADA’S THREATENED WITHDRAWAL-. MELBOURNE, February 7. The Imperial authorities haA-e apprised the Postmaster-General that the Canadian Government may withdraw from the Pacific cable project if Victoria and NeAV South Wales accept the Eastern Extension Company’s agreement. The Ministry is Avaiting advices from the Pacific Cable Board before taking further action in the matter, but itappears that Victoria is morally bound, because the Postmaster-Generai (lion W. Gurr) signed the joint-telegram with the Hon W. P. Crick (Postmaster-Gene-ral of NeAV South Wales), subscribing to the Eastern Extension Company’s contract. MEMBERS OF THE BOARD. LONDON, February 7. The following members of the Pacific Cable Board have been appointed: For Great Britain—Sir Spencer Walpole, Mr G. E. Y. Gleadowe, C.M.G., and Mr W. H. Mercer, one of the Crown Agents for the colonies, aa 7 1io acted as secretary in 1896 to the Pacific Cable Committee for Canada. For Canada —Baron Strathcona (High Commissioner) and Mr Alexander Lang. For Australia —Sir AndreAV Clark (Agent-General for Victoria) and the Hon H. E. Copeland (Agent-General for Ngav South Wales). For NeAV Zealand —The Hon W. P. Reeves (Agent-General).