THE QUESTION OF THE CABLES.

Taranaki Daily News, Volume XXXXII, Issue 81, 9 April 1900, Page 2

THE QUESTION OF THE CABLES.

MR! WARD'S REPLY TO EASTERN EXTENSION COMPANY. [FOB PRESS ASSOCIATION.] Cbristoh jrch, April 7. On Tuesday the Hon. J. G. Ward received the following cable message from Mr. W. Warren, general manager for Australasia for the Eastern Extension Cable Company:—" In view of the heavy loss of over .£6OOO per annum which the Company has suffered since April, 1895, under the amended guaran - tee and agreement, and that agreement expiring at the end of the present month, the Company is not prepared to continue. It would, therefore, be glad , to know if you are willing to revert to the 1892 agreement, by which onequarter of the loss was borne by the Company, or whether the rate is to be raised in lieu of a guarantee ?" To the above the Hon. J. G. Ward sent the following reply: bourne.—Respecting guarantee. In reply to your cable of April 3,1 cannot 'but express surprise at its contents, in view of the position of traffic as compared with the guarantee. Your request conveys the impression that with the leceipts closely approximating £20,000 the guarantee is asked for in order to ensure a continued contribution from New Zealand and the other colonies, even though the traffic receipts amount to £20,000 a year. As a guarantee £20,000 wan deemed by your Company in 1895 as sufficient. It is extraordinary that in the face of your having abandoned the duplicate cable subsidy of £32,000 a year you should now ask for an increased guarantee of £6OOO for the Sydney-New Zealand cable. I find that the total traffic receipts to your Company over this cable for the twelve months ended January last amounted to about £18,574, and for the year untied January, 1899, they were .£17,045 —an increase, in round numbers, of £ISOO for last year. If this late of increase was maintained for the current year, which is more than probable, the receipts should be over £20,000. Were the traffic a failing one, I could understand the Company's request for a further guarantee, but in view of the fact that the receipts are fast approaching tho amount guaranteed, I am unable to understand why I you. should now ask not only the I existing guarantee, which upon the revenue returns appears unnecessary, ! out one for an additional £6OOO. lam 1 not prepared to agree to any such 1 request, and you will be good enough to kindly accept this as my reply declining.—J. G, Wakd, Postmaster" I (/snoval,'' _ 1