The Taranaki Herald. PUBLISHED DILY. MONDAY, MARCH 18, 1901.

Taranaki Herald, Volume XLIX, Issue 11636, 18 March 1901, Page 2

The Taranaki Herald. PUBLISHED DILY. MONDAY, MARCH 18, 1901.

TnE Hon. Mr Ward has given the Evening Post some interesting infor1 motion upon the subject of his proposals with reference to the cable service between this colony aud Australia. Explaining first that the Eastern Extension Cable Company, the owners of the present cab'e, is not now in receipt of any guarantee or subsidy from the colonies in connection with this line, he went on to say that the present rate is threepence per word for commercial and Government messages and twopence for press messages. Prior to adopting the word rate the minimum for commercial messages was ten words, and the rate did not include charges on land lines, either in New Zca'and or Australia, which land charges brought the total charge for commercial messages to a minimum of three shillings for ten words. Abolishing the system of charging so much for ten words and adopting a threepence a word rate over the cable brought up the rates, including charges on land, lines on both sides, to fivepence a word. Thus a message of ten words to Sydney' now cost 4s 2d, as against 3s under the former tariff. On the other hand, a' message of six words costs only 2s 6d as against 3s formerly. It was not, however, in Mr Ward's opinion, satisfactory lhat in view of the very large reduction made in r«ttes over the cable to England the smaller line from Australia to New Zealand should Dot before now have participated in the advantage of much cheaper raes, and itwasoa this account that the Government was now trying to effect an improvement. The Eastern Extension Company argued that the revenue received over the line did not justify any further reduction in charges, so the Government had made enquiries as to the cost of laying and working a cable between La Perouse and Wakapuaka. The total cost of the cable, delivered and laid under guarantee, at the enhanced price of materials in May last, would be .£220,000, and it would be of a better and larger type than the one now connecting the two places. Its capacity with a duplex machine would be 374 letters per minute, or 206 letters with a simplex machine. Interest at three per cent, on the capital cost would amount to £6600 per annum, and, taking the Eastern Extension Company's experience as a guide, the working expenses would be £5853 per annum, a total of £12,453. He (Mr Ward), however, believed the working expenses would be between £4000 and £5000. The Eastern Extension Company's revenue for the year ended January, 1000, was £18,5,74, and the receipts for the current year might be estimated at fully £20,000. So that upon the present business it would be a profitable undertaking to the colony to acquire the existing cables or lay down fresh ones ; but the lowering pf the rates would lead to an enormous increase of traffic, and bring the cables within the reach of all classes. The figures quoted show a very ample margin for a substantial reduction upon the existing business, and there is no doubt that a fifty per cent, reduction would lead to the doubling of the traffic, so that there need be no fear of a loss being made should the colony decide to have its own cable service to A ustralia. Such a scheme is much more statesmanlike than establishing a State retail coal business, or peddling in discount stamps, and Mr Ward may, we should think, depend upon the hearty support of Parliament in carrying out his duties.