THE WAR OF TEE CABLE RATES.

Timaru Herald, Volume XLIII, Issue 3679, 17 July 1886, Page 4

THE WAR OF TEE CABLE RATES.

The Paris correspondent of the Daily News telegraphs : — There is much talk here about the coming war of rates between the Atlantic cable companies. It is urged that m the actual state of electrical science no cable between the Old World and the New World can be worked profitably at sixpence per word. Mr Mackay, who is m Paris, has decided, how ever, to reduce tho rates of the Commercial Company to the same fighting scale. The war is not to be an ordinary one, but will be a gigantic tussle, which will, it is thought severely strain the resources even of tho victor. Of courße if Mr Mackay is able to hold put longest, he will raise the cable rate again to the present tariff — Is 8d per word. If, on the other hand, the coalition succeeds m red u< ing him. the old rate of 2s 6d or 3s will be revived. The united companies were m hopes that Messrs Mackay and Bennet would be induced to adopt the common rate. This Mr Mackay positively refuses to do. He accepts the battle that is offered to him. The rate of one shilling and eightpence a word affords him ample remuneration on his capital. Since his cable was laid he has made ample profits. It iB thought here that if he and Mr Bennet are properly supported by the public they may easily win the fight. lam inclined to believe that the French companies cannot hold out long. For Borne time past they have distributed no dividends. Mr Mackay is assured of the support of the American Press and public at largo. Fully 75 per cent, of the profits of this business comes from American customers. He is fully aware of the gravity of the situtation but preserves stoical composure. He bears no ill-will against his rivals. Such, a war as they have declared is thought nothing of by Americana. His opinion, bowever, is that it is a risky business. He thinks that the crisis must soon end, and that on one side or other there must be a defeat. In saying this he looked unmoved. One would never think that he had millions engaged m the campaign. American society here is much excited on the subject.