THE PACIFIC CABLE

Taranaki Daily News, 15 December 1926, Page 7

THE PACIFIC CABLE

REDUCTION IN (MARGES PROPOSALS DISCUSSED WIRELESS COMPETITION Ry Telegraph—Pres* Ales.— Copyright. Received Dec. 14, 9.15 p.m. London, Dec. 13. Proposals of a far-reaching character were considered at to-day’s meeting of the Pacific Cable Board, for a substantial cut in the rates on its’route. They would have taken effect from January 1 if the Commonwealth and Imperial Governments had agreed upon their shares in the reductions. The proposals mean an immediate loss of revenue to the board amounting to £50,500, but the board hopes its new and expeditious service will bring such an increase of business that it will quickly neutralise the loss. The board is mindful of the early possibility of beam wildest} competition. It is also convinced that heavier traffic, of which the new loaded cables will be capable, coupled with reduced rates, is bound to act as a magnet for business. Detailed proposals for reductions between Britain and Australia are: Ordinary, from 2s fid per word to 2s; deferred, from Is 3d per word to Is; Government,'from Is 4d per word to Is

In the ease of New Zealand the reductions will be: Ordinary, 2s 3d per word to Is lid; deterred, Is 6)d per word to Hid; Government, Is 3d petword to Is.

These reductions will entail a loss of £24,000 a year. It is understood that subject to through rates being reduced, including the Imperial Government’s Atlantic section, the Commonwealth is willing to reduce landing charges respectively to 2d, Id and ltd. It is not proposed to ask for a reduction of - New Zealand's already lower terminal fees between Canada and Australia. The suggested reduction is: Ordinary, 2s to Is 7d; deferred, Is to ffjd; Government, Is 2d to lid; and between Canada and New Zealand, Is 9d to Is fid; IOJd to 9d; Is to IOJd. These reductions involve a loss of £3600. The proposed rates from the Western States of America to Australia and New Zealand respectively are: Ordinary, Is 8d and Is 7d; deferred, Ifid to 9*d; Government, Is 3d and Is; and from Eastern States of America respectively: Ordinary, 2s and Is lid; deferred, Is and HJd; Government, Is 5d and Is 4d. The losses in these eases are estimated at £23,000. It is revealed that since another company has entered the field, the United ■ States, Australia and New Zealand outward business has fallen to nearly half, but by far less in business from the Antipodes. Reductions in letter-telegrams are not contemplated till the effect of the reductions is seen, nor will the Press participate in view of the recent cheapening. The meeting of the board lengthily discussed proposals, but deferred decision till after Christmas. It is understood that negotiations are being continued io obtain the Imperial Government's assent to cuts on the Atlantic section. Those suggested are fd, and id respectively. COMPLETION CELEBRATED. Received Dec. 14, 7.35 p.m. Sydney, Dec. 14. A large and representative gathering of leading business men attended a luncheon at the Hotel Australia to celebrate the laying of the new Pacific cable from Barnfield to Suva. Speeches were delivered by the Gover-nor-General, the manager and general superintendent of the Pacific Cable Board, Mr. W. M. Hughes and others, all of whom stressed the importance of the increase in the cable facilities afforded to Australia and New Zealand and the much improved capabilities of the duplicated service.