The Star. FRIDAY, MAY 8, 1903. THE PACIFIC CABLE.

Star (Christchurch), Issue 7700, 8 May 1903, Page 2

The Star. FRIDAY, MAY 8, 1903. THE PACIFIC CABLE.

Tho decision of the (Postmaster-General to allow certain of the Department's officers, at the request of the Pacific Cable Company, to canvass for ousiness fon that company, Jb>as not unnaturally caused* an indignant howl to be raisedl 'by those to whose ipookets the action appeals. The Eastern Extension Company is virtuously indignant upon the subject, not, cf course, because the lessening cif its 'business will affect its profits, but entirely as a matter of principle. It is not (perhaps tKe best precedent in the world to allow a State Department to canvass for business for a more or less pr-ivate eoan'pany, but in this case the Postmaster-General's action, appears to he more than amply justifiea. New Zealand! is really a. substantial shareholder in the Pacific cable, having a ninth interest mi ita working; which carries with it a liability of £10,C00 upon the first year's working alone, should the estimated loss reach* the expected amount of £94,000. This payment, of course, must come otit of the taxpayer's pocket, and as Sir Joseph Ward points out in his departmental circular upon th© subject, this fact alone makes it almost a duty, and quite a personal interest, tJiat the community should employ the Pacific cable in preference to its rival whenever possible. He further points out, not in a spirit of retaliation, but in one of fair play, that the- Pacific Cable has beeni the means of vastly reducing. the rates for cabling, both to the neighbouring colonies and abroad, The Eastern Extension Company, which enjoyed a monopoly of the cable business for years, and ran it at a substantial profit, practically took no risks, for its business was conducted only upon a basis of substantial Government guarantees from the colonial legislatures. Large amounts ihave been paid to the company in this way, and, although its rates have been reduced from time to time, somewhat grudgingly, and always with the safeguard of fresh guarantees, the final reduction. was only made at the point of the sword, and because it was found impossible to compete with the Pacific Company, except at the same ruling Tates. The advent of the new, cable, besides de"creasing the cost* of cabling enormously, has made the service much more* expeditious also. Messages are now delivered in aboutl half the time it originally took : to convoy them, and where time is money this, v too, is no inconsiderable saving. The Pacific cable ha? already secured the bulk of tho New Zealand business, and its advantages are really so obvious that it- is almost unnecessary to do more than bring them under notice to ensure the line being used almost universally. So far as the colony is concerned, the Postmaster-General's action will meet with general approval, for it is a measure of protection and a conservation of our own interests that ia more businesslike than sentimental. The appointment of postal officers to canvass for business will' probably 'be th& means of materially adding, to the company's revenue and decreasing, the estimated deficit, for which we in common with, the other contributors will be liable at the year's end.