CABLE CHARGES.

Timaru Herald, Volume XLIII, Issue 3739, 25 September 1886, Page 3

CABLE CHARGES.

« (By Telegraph.) Wellington, Sept. 21. | The following is a copy of a messuge from j the Chairman of tbo Eastern Extension Australasia and China Telegraph Company to Sir Julius Yogel : — | 11 London, Sept. 20. "Sir, — On my return from abroad I was sorry to learn the decision of your Government os communicated by your telegram of the 2 1th ult. The company have, done everything possible to conciliate your Government and to meet the requirements of the telegraphic public, and it' our guarantee proposal had been accepted it would have given the public a cheaper tariff than it is possible to obtain by any other means without entailing considerable expenditure on the colony. Under the circumstauces, however, the company have no alternative but to raise the tariff for intercolonial telegrams from the Ist October to ten shillings per ten words, and one shilling for every additional word, m j order to recoup the loss of the subsidy, and I think it desirable the public should know why the company are compelled to adopt this course. 1 have given instructions that the whole of the correspondence on tho subject is to be published. The company will be propared to reduce tho tariff as previously offered to five shillings (ss) for ten (10) words for Government and ordinary messages, and to threepence per word for Press telegrams whenever your Government is ready to renew the subsidy.— Superintendent Cuble Co" The following letter from tho company's superintendent m New Zealand was Bont by cable to the Mvtning Post to-day : — "Wakapuaka, " September 2-ith, 1850. " SIE, — I am instructed to communicate to you tho accompanying copy of a telegram forwarded by the chairman of the i< astern Australasian* and China Telegraph Company (Limited), to the Government of New Zealand, notifying that the tariff of tho SydneyNelson cable for intercolonial telegrams will on and after the Ist of October prox. be 10s for ten words, and Is for each additional word, instead of 6s for ten words, and 7d for each additional word as heretofore. The company have delayed taking this step for the last eight months, hoping that tho necessity for it might be avoided, but having after prolonged negotiations failed to obtain a renewal of tho subsidy which expired last February, and tho receipts without the subsidy being insuilicient after ten years working with a single interruption during the whole of the period to give a return of 2 per cent on the capital invested, they have no alternative but to raise the tariff to recoup the loss of the subsidy. The Government of New South Wales, as far back { as June, 1885, agreed to renew their share of | the subsidy for a further ten years, and m consideration of such concession the company were prepared to reduce the tariff to 5s per ten words for ordinary, and 3d per word for Press telegrams ; but the Parliament of New Zealand would only igree to renew the j subsidy for five years on conditions unacceptable to the company. Consequently the j company offered to make the tiriff any figure j the colonies pleased, provided the average of their receipts for tho last years were I guaranteed. Thus would have been obtained more than could be possible to establish by any other reasonable means, and if the opinion frequently expressed m the colonies, that cheaper rate 3 would lead to a corresponding growth of traffic were borne out, the amount of guarantee the colonies would have to make up would be quite nominal. Tho proposal, however, was declined, and tho New Zealand Government now withdraw the offer sanctioned by the Parliament for a renewal of the subsidy for five yeara. Uuder these circumstances , the company is reluctantly compelled, m the interests of their shareholders, to raiso the tariff as above announced, and the responsibility for this course must rest with, the Government of New Zealand, and not with the company, as the latter have exhausted all possible means of bringing about a satisfactory solution of the question. A complete copy of the correspondence relating to tho negotiations between the company and tho Governments of New Zealand and New South Wales will be received iv a few days, when it will be forwarded to you for publication. I am, etc., W. Woolnongh Browning, Superintendent, Cable Bay, Nelson. ..Regarding the cable rates, the PostmasterGeneral states that the Government have not quite decided on the course to bo taken. He thinks it very doubtful whether under the terms of the original contract tho Eastern Extension Company have power to raise the rates. Tho Sydney Government have been communicated with, and returned an answer that they were of opinion the company cannot do it. The matter will probably come under the consideration of the Cabinet tomorrow. A deputation from the Chamber of Commerce wait on Sir Julius Yogel on Monday, to ascertain what action the Government I intend taking.