THE CABLE TARIFF.

Ashburton Guardian, Volume V, Issue 1401, 8 November 1886, Page 2

THE CABLE TARIFF.

W kllington, November 7. The Premier was interviewed yesterday by representatives of the ptesa re the cable qu stioa. Sir Robert Stout ga'd the position of the Government and the Cable Company appeared to be misunderstood. The Govenment, he said, originally agreed along with New South Wale 3, to pay a subsidy to the Company of £7500 per year on condition that a cable be laid between New South Wales and New Zealand, and the subsidy was to be continued for a period of ten years, and so far as he conld see no provision was made in the agreement to continue the subsidy after the expiration of that period. On the contrary, ho asserts that the agreement implies that the subsidy was not to be continued as pur section 8 of-the said agreement the cost of laying the cable was £30C,000, but at the present time a similar c*ble could be put down at the cost of £140,003, or a cable of much superior quiluy to the present one at £170.000, When first the cable was laid - he had no doubt it was right to give a subsidy, ai the revenue was not large at the commencement of hs working. For instance, In 1875 the ammnt collected in New Zealand by the Government on behalf of the Cable Company was £4392 and that, assuming that the same amount was collected at the other end, would give the year’s revenue as £8784, in 1877 the total amount collected for the would he about £13,472, and in 1879 about £18,192 ; but in 1881 it fell to £16,612, while for the year 1885 it bad risen to about £21,226, which amount did not include the amount of the subsidy. Against this nmouut is to be placed the sum of £2GCO, which is estimated ss the cost of working, so that the Oomcany received £18,626 for the cable, and, In addition, £7500 subsidy, bringing the total prrfrs to £26,126, which was, the Premier argued, a very handsome return, especially waen it is cons‘dered that thu cable caoli now be laid for £140,000. If the Company understood that the subsidy was to he continued, why, Sir Hubert asked, did they not see to having a clause to that effect included in their agreem-. nt, ? Aa a commercial transaction it would be far cheaper for the Government to lav a cable, at the estimated cost of £170,000, than continue the subsidy, because if they only received one-half of the revenue that the Company now received it would pvy interest and sinking fund and expenses of working the cable. If t da were done and the rates reduced, as Government could well afford to do. there would be a handsome Income. Another point to be considered la this, shall the Cable Company maintain a monopoly and charge what increase they choose without a word being said against it? If such a thing was allowed It would place the colony in a most unfair position, deferring to the proposed cable across the Pacific Ocean, Sir Robert thought It would be of far greater advantage to New Zealand to pay a subsidy to this route. The subsidy asked was £IO,OOO, and It was proposed that the Government shou'd be allowed free use for Its messages to an amount equal to the subsidy granted. There would by this route be very little difference In the rates now charged on the Eastern Extension Company’s cable. No doubt the construction of (he Pacific cable could not be undertaken at once, but one portion of it could bo laid, viz., from Queensland to the North Cape in New Zealand. This portion of the cable could be used until the connecting link with America was completed. So far as he could see, what the Eastern Extension Cable Company wanted was to get New Zealand for a lengthened period to subsidise' their line and by this means prevent their giving a-y assistance to any other proposed mute. The point to be considered was, should the colony submit to the dictation of the Company, that unless the subsidy be given the rates will be increased? By section 13 the Company had power to increase the rates when the subsidy ceased ; but power was also given to Government to impose a terminal charge on messages transmitted across the cable, and that enurse had been adopted by the Government. The fact of the Company holding power lo raise (he tariff showed the necessity of the Government not being bound in the matter. Sic Robert was of opinion that it would be better for the press and the telegraphing publio to pay the increase rather than that the Government should yield to the Company, and he failed to see how those who objected to protection could ask Government to relieve them from this small extra charge. The Increased cost to the press would not, he thought, exceed £ISOO, and assuming that the a-ame amount of business was done on the cable aa last year, the c at directly to New Zealand would be only ono-thlrd of last year’s reoalpts, or in other words about £3500, yet the Government were asked to give a subsidy of £SOOO to pa? the publio a portion of the cable charges on their messages. He felt sure that if the Company kept up the increased rates they would loie by it. In conclusion Sir Robert said the Government had no authority from Parliament to pay the sum demanded, and Government declined to pay the subsidy simply because the Company demanded it. If the telegraphing public would only look at the question from a colonial point of view they wmld recognise It to be inadvisable for the subsidy to bo paid.

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