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RIVAL CABLES.

_, ,-— * THE PACIFIC BOARD. NEW ZEALAND CANVASSERS APPOINTED. [Fbom Our Correspondent,] WELLINGTON, May 6. The Post Office Department has issued a circular justifying the employment of certain of its officers, at tho request of the Pacific Cabl# Company, in canvassing for business for that company's cable. The arguments set forth are that New Zealand has a share of one-ninth in the Pacific cablo, and is consequently liable to payment of upwards of £10,000 should the loss on the firsts year's working reach the estimated amount, viz., £94,000. It is, therefore, to j tho advantage <«f every taxpay-y? in the colony that the Pacific cable should be utilised to its utmost capacity,, and it is almost a duty on the part of senders of cablegrams to support the line. It is also a duty to support an institution that has caused enormous reductions in cabling rates.; and that offers the most expeditious modia of transmission. Prior to the advent of the Pacific cable, reductions 1 in the cable tariff had always to be preceded by an undertaking on the part of tl^e colonial Governments to indemnify the Eastern Extension Company against loss of revenue. For instance, when the rate to Europe was reduoedi in 1893 from 10s 2d to 5s 2d per word, a guarantee was given that the revenue derived from international cablegrams should amount to £237,736 per annum The amount of the guarantee was reduced m 1895 to £227,000. When tie Wakapuaka-Sydney cable was opened > in 1876, a subsidy of £5000 for ten years was required. In 1893, on a guaranty that the receipts from that cable should- not be less than £26,258 per annum, the cable rate "^fy ™» reduced. Subsequently, in 1895, the amount of/ the guarantee was reduced to £20,000. On the expiration of these agreements, however, the company initiated a threepence a word rate from Wakapuaka to La Perouse, thus increasing the cos,t of a ten-word message to Australia by sixpence. Between the years 1893 and 1900 if ew Zealand paid £1§,074 9s 7d (or practically £20,000) to the EasternIntension Company en account of guaran- , tee agreements. When the Pacific Board j commenced business in April, 1902, the | rates to Australia by either route were reouced! as follow:— New South Wales sd, .Victoria 6d, Queensland! 6d, South Aus- | traha. 6d. Western Australia 6d— all reduced ! *, H d P<* word; Tasmania, Bd-— reduced to i osa per word. The Fanning Island' (Vancouver) sectioa o-f the Pacific cable wa* opened -for traffio on Dec. 8, 1902, the rate to Great Britain being fixetf at 3s a word. The Eastern Extension Cotaipany immadiately reduoed- its rate to the same figure, having a few ■ m<^ 'F emousl y reduced it to 3s 4d a 1 JJ o *?* 3 ? a additional advantage the ' Pacific Board - allowa senders to insert, free of ohairc>e, the -name of th© country cr State, in case of doubt owing to tie duplication of names of stations. Turning to the question of tiono, t'ba Eastern Company a few months ago took about six 'hours in tourusamtting a anesßa,ge_to London. The average, time at present, , based! on cablegrams received' during the pa«.|> few weeks, is as follows:— Pacific, 3hr 3man; Eastern Extension, 43m> 34-nin. A file of messages fromi London to Auckland, Christchurch, Dunedin and Wellington was taken promiscuously on (four days last month, and tbey gave the following result's : — Average time: Pacifio, 2hr Sbnmx ; Eastern, 4tr l 30min. Longest/ 't-jme : Pacific, Qh-r 44min ; i Eastern, 6hr 13m.in. Shortest time : j Pacific, Ifor 39min ; Eastern, 3hr 15m-in. The servioe to and from Australia is OTtKJh quicker since the openim*' of the Pacific cable, andi tih© major portion of the Australia*, and 1 Now Zealand traffic reaches its destination well witihin, the bour. The present daily average of cablegrams from and' to 'New Zealand) is 600, of which 400 are dfealt with iby -the pacific and 200 by tihe Eastern Extension. • Undesr the old cable rates, last year's business would 'h&ve cost approximately £132,296, owing to tihe red-utc'tiona in rates consequent Upon the opening of the Pacific cable. The amounts actually paid for transmrinsion approximated £99,870, thereforo the amount saved hy users of tftl* oalbte- totalled £32,426. The business during tbe present 1 calendar year will probably result in .gross . receipts of £88, 000. Thie same volume . of .irafijc under the old rates would Ihave yielded .about £142,000, amdi would tkws have tak en aibout, £54,000 more out of th® .pockets of iWijs'otf ■ , the cable. ' - ;,' '■ *; The step of caravassing for business has bijen far-ceil on the Boartd as a measure of self-protection amd to cons&rve its own interests. T3ie Poatmatfter-General concurs in this action, and the first steps have been •taken| in Wellington. The other centres of the colony will follow in tihe course of a day or two.

Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/TS19030507.2.20

Bibliographic details

Star (Christchurch), Issue 7699, 7 May 1903, Page 2

Word Count
801

RIVAL CABLES. Star (Christchurch), Issue 7699, 7 May 1903, Page 2

RIVAL CABLES. Star (Christchurch), Issue 7699, 7 May 1903, Page 2

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