THE CAPE CABLE.

Otago Witness, Issue 2410, 10 May 1900, Page 19

THE CAPE CABLE.

MELBOURNE, May 1.

At a meeting of the Chamber of Commerce the chairman said he regarded the Cape cable as most desirable, but if it could only be obtained by ringing, the death-knell of the Pacific cable then we had better ba without it.

Mr Watt and Mr Crick confer regarding the Gape cafole on Thursday

Mr Warren will be in Adelaide, but a telegraph line will be reserved so that any disputed points may be discussed with him.

May 3.

The conference between Mr Crick and Mr Watt with regard to the Cape cable

scheme lias resulted in an agreement between New South Wales and Victoria, which Mr "Crick in an interview has declared to be satisfactory, and which there is little leason to fear that Parliament will ratify. The attitude of the Eastern Extension Company towards the decisions is not known, but Mr Warren, who Avas in communication with the Postmasters-general by wire from Adelaide throughout the conference," has cabled the result to his London office.

The Postmasters-general decided that the agreement with the Eastern Extension Company should cover mes&ages to and from Australia. Some doubt existed on this point as the agreement was previously worded. If any reduction of rates is made in accordance with the agieernent, it shall be based on the volume of traffic, and such rates shall not be raised again.

If the company, anxious to compete with a rival cable, still tether reduces its rates, or goes below thosa stipulated in the agreement, it shall not be able to raise them again to a higher point than -that fixed under the agreement. The rates thus stipulated in the agreement become the maximum. >

With regard to the clause as to terminal facilities, it was agreed that tlie companyshall be able to open local offices directly the Pacific or any other cable, owned or partly owned by the Australasian Governments, is opened, with the concession, however, that no other cable shall secure rights before the Eastern Company meets its facilities.

It lv-s decided that telegraphic instruments and other apparatus be admitted free of duty and demand for income tax. Erom municipal taxation exemption was not granted.

The arbitration clause was lengthily disei7ssed, and it was agreed to remedy the defect in the present agreement by insert-, ing a provision for its termination under certain arbitrations. Procedure will be to the effect that in the event of the agreement not being kept by the company the contracting colonies -may jointly give notice of its termination, and if the company be not satisfied that a sufficient reason for its termination is made out, the matter shall be sent to arbitration.

A purchase clause will be inserted in the contract, the purchase valuation being left to an arbitrator. It was decided that no agreement be signed at once, in view of the early meeting of the Parliaments of the two colonies, when the terms will be placed before them for approval.

Both Postmasters-general assert that the agreement will afford reasonable protection to the Pacific cable.

ADELAIDE, May 4

The amendment in the cable agreement proposed by the Victorian and New South Wales Postmasters-general have been submitted to Mr Warren, manager of the Eastern Extension Telegraph Company. Th--; Postmasters-general inquired whether the company would insert an agreement to purchase clau&e, to be read in conjunction *wit'a the arbitration clause. Mr Warren replied that the arbitration clause had been cancelled, and the purchase clause would depend upon its conditions, and whether it was approved by the contracting colonies, before he submitted it to the company. * He added that an agreement having already been completed with three colonies it could not be altered, but must be strictly adhered to.