The Gisborne Times PUBLISHED EVERY MORNING GISBORNE, APRIL 10, 1906 RIVAL CABLES.

Gisborne Times, Volume XXII, Issue 1720, 10 April 1906, Page 2

The Gisborne Times PUBLISHED EVERY MORNING GISBORNE, APRIL 10, 1906 RIVAL CABLES.

The cablegrams show that the Eastern Extension Cable Company has no intention of surrendering the privileges it has been enjoying with- „ out making a fight for their retention. There is really no room for argument as to the Government’s duty in the matter. They should support the Pacific cable. The Federal Premier has sought relief from a difficult position by simply withdrawing the privileges which the Federal Government had been allowing to the Eastern Extension, those privileges being largely responsible for the deficits on the State owned Pacific line. The original agreements between the Eastern Extension and the Australian States did not make any limit to the currency of the arrangements, an( j the Eastern Extension seemingly seek to uphold the view that there can be no cutting off of the privileges granted. On the first year’s work of the Pacific cable there was a deficit of £90,000 to be mado up owing to the unfair competition that had been encouraged, and what this meant to New Zealand can be understood better when it is explained that our share of the loss was £IO,OOO. W hat is "really wanted is an amicable arrangement by which a highly efficient alternative service could be obtained without loss. There is some likelihood of a moye in that direction when the Eastern Extension Company is made to understand that the privileges extended were not given to help throttle the service established by the States.