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Dominion, Volume 4, Issue 1166, 17 June 1911, Page 5

Government (ho Empire could lay a cablo of its own. liven if it cost half a million it would produce a substantial result. If Government contributions were needed as a subsidy, that was only a small matter.

Referring to the proposed second New Zealand-Australian cable, Sir Joseph AVard declared that it's stoppago by the Treasury was regrettable. Tho South African and Newfoundland delegates expressed themselves as satisfied with Mr. Samuel's proposals. They did not favour nationalisation at present. Mr. Samuel in Reply. Jlr. Samuel staled that Senator Pearce's proposal would involve half a million. In view of the deficiency between the amount of work tho Pacific cable would give the Atlantic cablo and the full capacity of tho cable, ho questioned whether t'ho deficiency would bo made up by increased business. If tho business were increased by a large reduction in rates, the load would certainly bo mado up, but the revenue would not bo increased. Thero was .little prospect of a Stateowned Atlantic cable attracting bnsiness in tho United States and Canada because the land lines there were controlled by companies associated with tho present cables. According to the draft report, tho proposed cable would involvo an expenditure of over ,£50,000, against an estimated revenuo of .£20,000 annually. Tho Governments concerned were asked to undertake that loss on the ground of efficiency in the service. Although tho present system was unsatisfactory it was worked with' speed and accuracy. There was more force in the argument that a cablo should be laid in order to secure cheaper rates, though tho Government was not justified in undertaking the expenditure involved. British Motion Adopted. Mr. Samuel'suggested as an alternative resolution: "That unless the Atlantic cable companies make considerable reductions in their rates in the near.future, the desirability of laying a State-owned cable between England and Canada bo considered by a subsidiary conference." Tho New Zealand and Australian resolutions having been withdrawn, the motion was. adopted by the Conference. THE NEW PROJECT DESCRIBED. The new Atlantic enblo project referred to in to-day's messages is to lay a Stateowned cablo along the route surveyed in ItGO by the Bulldog and Fox-from Scotland to the Faroe Islands, thence to Iceland, thence to Greenland, and thence to Labrador. The results of this survey were so satisfactory that, had it not been for special inducements offered by tho Western Union Telegraph Company—then the only telegraph company of any importance in America—the northern would almost certainly have been preferred to the present mid-Atlantic route.?. Tho advantages of the northern route aro even greater at tho present day. Tho ■carrying capacity of a cable decreases rapidly in proportion to its length. The longest stretch in the northern route, that between Iceland and Greenland, is only 070 miles, as compared with nearly 200(1 miles in the mid-Atlantic routes. So groat is the consequent advantago to tho northern route that a single cable is confidently counted upon to do the work of at least two cables further south. It is indeed estimated that a tariff which would bo inadequate to earn any profit for the existing Atlantic cables, even when working at their fullest capacity, would earn a satisfactory profit for the northern route if it worked only six hours a day. A cablo charge is. understood to be practicable, though it would not necessarily be adopted from the very first, which would reduco ordinary messages from Great Britain to Montreal, to 4Jd. a word. The rate on Government, Press, and deferred messages would in that case be 2Jd. a word, and a sixpenny rate would then coyer the cost of similar messages to Australasia.

Tho capital required for the accomplishment of the scheme was put down by a writer in "The Times" recently at The annual receipts at' tho lowest rato mentioned above aro estimated at ,£145,750, tho annual expenditure en working expenses at .£55,000, on repairs at .£12,000, on contingencies, canvassing, etc., at .£15,000, on provident fund at .£IOOO, and on renewal fund at .£18.500. Tho total annual expenditure would thus be .£103,500. This, with an income of .£145.750, would leave an annual profit of ,£•15.250, or more than 5 per cent, on the initial outlay.