THE CABLES QUESTION.

Otago Daily Times, Issue 11962, 8 February 1901, Page 5

THE CABLES QUESTION.

Canada and the pacific Doable. Press Association—By Telegraph—Copyright. , SYDNEY, February 7. (Received Feb. 7, at 9.10 a.m.) In connection with the Pacific cable, Mr Crick points out that as soon as the Federal Government take over the Postal department uniform rate's will be charged. It would be ridiculous for one State to pay 3s 6d and another 5s lid per word. MELBOURNE, February 7. The Imperial authorities iiave apprised the Postmaster-general that the Canadian Government may withdraw from the Pacific cable if Victoria and New South Wales accept the Eastern Extension Company's agreement. 'The Ministry are waiting advices from the Pacific Cable Board before taking any further action in the matter, but it appears 'that TSictoria, is morally ■ bound, because the Postmaster-general had j ! signed the joint telegram with Mr Crick J i subscribing to the Eastern EsFension contract. LONDON, February' 7. (Received Feb. 8, at 0.8 a.m.) The following have been members of the Pacific Cable Board:—For; Britain: Sir Spencer Wnlpole, Messrs (t. E. Y. Oleddowe, C.M.G., and W. H. Mercer (one of the Crown Agents for the Colonies, who acted as secretary in 1896' : j for the Pacific Cable Committee). For Canada: Bamn Strathcona. and Mr Alexander Lans;. For Australia: Sir A. Clark ' (Victoria). Mr Conelond (New South i , Wales), Mr W. P. Beeves (New Zealand), j

•• THE PREMIER'S VIEWS. (Per United Press Association-.) . WELLINGTON, February 7. Respecting the difficulties that have arisen owing to New South Wales agreeing to grant I concessions to tho Eastern- Extension Com- ■ pany, the Right Hon. Mr Seddon says:— The difficulty has arisen owing to the Eastern Extension Company.asking that on the com- \ pletion of the Pacific cable it should be al- { lowed to open offices in different- parts of j the several colonies for the purpose of receiv- j ing and despatching cables, and that the i company should have the sole use of the connecting line with the transmitting station. ■' If this concession were granted it promised ' as from tie Ist February to reduce the present charges from 4s lid to 3s 10d per word. Now Zealand and Queensland did not tee their way to grant this Concession without the' consent of the partners to the Pacific cable scheme. A conference took place between the Postma-ster-Generalof New South Wales (Mr Crick) and, Mr Gurr (Postmaster-General of Victoria), At this conference both these Ministers agreed to grant the concessions asked for by the Eastern Extension Company. However, on the Victorian PostmasterGenerals reporting to.his Premier and his colleagues that he, with the PostmasterGeneral of New South' Wales, had signed an agreement consenting to the granting of eon- ; cessions 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 also were agreeable. The : Victorian Premier communicated with Canada and the Imnerial 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 preju- , diced the Pacific line, and that Canada would j be unwilling to continue its adherence if its j co-partners, without mutual consent, changed t tho basis upon which the partnership was entered into. . By cable messages to-day it appears that the Imperial authorities have apprised the Postmaster-General that the Canadian Government may withdraw from the j Pacific cable project if the Victorian and Now South Wales Governments accept the j Eastern Extension Company's agreement. ; The reply of the Postmaster-General of Now ,' South Wale 3 (Mr Crick) to Mr Copoland, the | i Agent-general, begs the point altogether, and i his contention is childish when he says that the j granting to the Eastern Extension Company of the use of land lines to connect with their offices direct and to establish offices of then , 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 transmission and receipt of telegrams and direct connection with the transmitting station is bound to give the Eastern Company an advantage over the Pacific cable. There could 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 it would lessen its earning j power, seeing that .the Eastern Extension I Company would have an advantage in having [ its own office. If tho Pacific cable did the ' same it would he an additional expense, and j i the Pacific cable would claim to have its ■ separate lines and its separate conneetiens. I This would add materially {o the cost of the I respective States...To prove this, the connect- ■, ing lines to Wakapuak'a- or elsewhere in New j Zealand would cost New Zealand £20,000. i I Mr Crick is quite right when he says that an ; I act of Parliament uinds the State to pay j [ its share in the loss of tiie Pacific cable., The earning power of the' Pacific cable was -. estimated on tho conditions then existing as ! regards the Eastern Extension Company, but if the. latter company is put in a hotter position than it was before as regards the signing of the contract of the Pacific cable, then a greater loss would be entailed on the other contracting parties, and .they would receive no compensation whatever. The latest ratc3 promised to be cflncedeed 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 advantage to the ; Eastern Extension Company, why should ! they concede Is 5d per word? Apart from j this being a co-partnership transaction, if : pome of the contracting parties objected, I and a boua fide difference of opinion existed ; as to the probable results, as a matter of ; good faith the other parties should hesitate : before doing anything that would prejudice : the position of the other partner!. When in Australia I made it my business to confer , with Mr Warren, general manager of the i Eastern Extension Company. It appears'that a fear exists in some quarters that the i business of the Eastern Extension Company" , would 'he diverted and sent over the Pacific linos, and that otherwise the position of the • Eastern Extension Company "might be prejudiced, and that this wa6 the reason why they asked for th'e concessions, to have their J own receiving and trasmitting offices. I • communicated with the Premier of Queensland, . and also interviewed the Premier of i Victoria on the subjcot, and suggested that a conference should be held, and that an assurance should.be given to the Eastern Ex-; tension Company that its position would be in no way prejudiced When the Pacific cable ; is completed, and that every fair play would j be given to it in the despatch of cables and I tho transaction of 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 telegraphed that tie concurred in an assurance being given to the Eastern Extension Company that it should receive fair treatment, irad that its business should in no way be prejudiced, and that on this assurance reduced rates should be given to all the colonies. The conference was attended by the Premier of Victoria, the Postmaster-general of Victoria, Mr Warren (of the Eastern Extension Company), and the Premier of New Zealand. The matter wae fully discussed, and a joint memo, to the hastem Extension Company was agreed upon, on tile lines 'which had been suggested. At the conference it was alleged that at a meeting of the Pacific Cablo Board in London a suggestion had been mooted to have a common K KS Vj ' B ot ' ier wor ds> that an arrangement ! should be come to as between the Paoifio I Cable Board and the Eastern Extension I Oompany and other transmitting companies that a uniform maximum and minimum rate should be charged. In the case of a breakdown between the lines, the other lines should transmit, charging to the company whose line had given way a percentage on the message so transmitted. Aβ there is no definite information on the point, it was arranged that the Paeifio Cable Board and the contracting parties Bhould be communicated with on this subject, and thus the matter at present stands. A communication received now from the Im-perial-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 its memorandum, for it says: "If Victoria and New South Wales accept the Eastern Extension Company's \ agreement." jlNew South Wales has already accepted, and the agreement is signed as between that colony and the Eastern Extension Company. Victoria, however, lias not signed the agreement, nor is it bound to do so, seeing that Mr.Gurr at the conference concurred with the New . South Wales Government, but it was not ratified by the Victorian Government.' The Agent-general of Victoria lias not signed an, agreement with the Eastern Extension Company, and from what came to my knowledge when in Melbourne, I do not think there is any possibility whatever of the Victorian Government signing an agreement. Summed up, the position is this: The principal contracting parties—Canada and the Imperial authorities—consider that the Paeifio cable would be prejudiced if an agreement with the Eastern Extension Company were made. For the other contracting parties to enter into such an agreement, prejudicing, as it does, the Paeifio - cable scheme, would be a breach of faith. If not done, then the Eastern Extension Company penalises Victoria, Queensland, and New Zealand to the extent of ls.sd per word more than is charged to New South Wales, who has entered into an agreement, but it is better to bear this burden than to have it left open to be said that a breaoh of faith had been committed. It is the first time . that Canada and the Imperial Government \ have entered into a contract with the colonies j of Australia and New Zealand, and even \ though there may be some doubt as to whether > the effect would be so detrimental to the i Pacific cable scheme as alleged, it is better | to err on the side of good faith and mtrintnm j the honour of the colony. . It must,also be j borne in mind that if the Eastern Extension i Company were to make differential rates and j grant reductions to one colony and refuEfc , them to the other three colonies of Queens- ■ land, Victoria, and New Zealand, an illfeeling would be created, and the treatment would be resented immediately the Paeifio cable was opened. Not only that. hut-Parlia-ment will have full power to deal with a situation such as this, especially with the company which is largely using the telegraph. . lines of the colony. And there is another alternative: Bather than commit that which verges on dishonourable, it would be preferable for the colony to give the Eastern Extension Company its pound of flesh, and 89k ; I Parliament to make ud the difference to the I users of the cable, holding in reserve the right : to charge a sufficient extra amount when the '.! Pacific cable is completed, so as to reimburse ! the colony the amount whioh has been; j exacted by the Eastern Extension Company in I excess of the rates charged to the colofty of ! New South Wales. I have, however, hopes of j a satisfactory solution of the situation, and that the agreement made by New South Wales was come to hurriedly without knowing that serious objections would be taken by Canada and tho Imperial authorities If Canada withdraws from the Paeifio cable the colonies will once again be at the mercy of the Eastern Extension Company, and we shall have,one line, ,and recent interruptions ougijt to be sufficient in itself to mark the necessity there is for the Paeifio cable. ;•

The New Zealand Government have intimated to the Agent-p.e-neral, and he is to inform Canada, that it will be no party to grant concessions to the Eastern Extension Company to the prejudice of the Pacific cable, and will be no party, unless with the'mutual consent of partners, to alter the conditions.