THE Grey River Argus. PUBLISHED DAILY. WEDNESDAY, FEBRUARY 5, 1873.

Grey River Argus, Volume XII, Issue 1409, 5 February 1873, Page 2

THE Grey River Argus. PUBLISHED DAILY. WEDNESDAY, FEBRUARY 5, 1873.

There is no doubt that at the Conference of Colonial Delegates now sitting at Sydney, the representatives of New Zealand will endeavor to . come to some arrangement for the laying of a submarine cable between this Colony and Australia. This result must come sooner or later, j and Mr Yogel is not the man to lose sight of the fact that there is still a link missing in that mysterious chain which must soon circle the world. New Zealand, and its large mercantile interests, cannot much longer afford to remain isolated, as it were, from the rest of the world, for the want of asubmarine cable to Australia, aud should our representatives be unable to induce the other Colonial members at the Conference to join in defraying the cost of the undertaking, there is no doubt that the next meeting of the Assembly will be asked to devise the means for its construction on this Colony's sole account. It will be remembered that during the last session of the Assembly this question was inquired into and reported upon by a Select Committee of the House of Representatives. The report which they brought up was to the following effect : — " The committee to whom was referred the consideration of the subject of connecting New Zealand by submarine electric cable with other countries, have the honor to report that'they have taken evidence and obtained information on the subject. From the evidence and the papers appended, the committee are of opinion that no company will be found at present ' williag to lay a submarine cable between

New Zealand and Australia in terms of the New Zealand and Australian Submarine Telegraph Act, 1870. The committee, while recognising the importance of telegraphic communication with Australia to the commercial and mercantile interests of New Zealand, are not prepared to recommend, under existing circumstances, that the proposals of Mr Audley Coote or Siemen Bros., should be entertained ; but they are of opinion thatthe Government should make f urtherinquiries on this subject during the recess, with the view of ascertaining on what terms and to what extent the Australian Government would be willing to aid New Zealand i.i laying a submarine cable to connect the Australian mainland with this Colony, for the information of Parliament next session." The two proposals made did not appearto the Committee to be satisfactory, but as they will very probably come up in an amended shape before the next Assembly, some slight explanation of what they really were will no doubt prove interesting. The first of these was made by Mr Audley Coote, ou behalf of the projectors of "The Australian and New ZeeJand Telegraph Company." Several proposed directors of this company (which was not formed at the time the offer was made) are named by Mr Coote, and as he properly observes, it was almost needless to refer to their position, they being so well known in the commercial and telegraph world. The names are altogether unexceptionable, but we do not see how the Government could possibly entertain a proposal made under such circumstances, even if that proposal had been reasonable in itself, and likely to result in a satisfactory arrangement. Mr Coote was prepared, on behalf of the projectors, to construct, lay down, aud maintain, a submarine cable between New Zealand and Australia "upon being guaranteed by the Government, interest at the rate of oh per cent, per annum on the sum of L 450,000 for a term of fifty years."" It was very plain that these terms could not be accepted ; the Colony could not be bound down to guarantee interest for such a lengthened period, more particularly on an undertaking which would be sure to pay a handsome dividend, and not cost say two-thirds of the amount set down as a first charge. In his evidence before the Select Committee, the General Manager of telegraphs estimates die cost of a submarine cabl«> at from L 183,000 to L 456,000. The mean between these two extremes is about L 300,000, and it would appear from the second offer submitted to the Government, that a good cable can be laid for something over this sum. It follows that if the Government had accepted Mr Coote's offer, the Colony would most probably have had to pay interest on capital that had not been expended. With regard to this a contemporary says : — " The proposal amounted, in plain terms, to this — that the New Zealand Government should guarantee to Mr Coote and his friends what, in England, would be considered a handsome rate of interest for a long term on a sum named by themselveft ; and that they should at the same time afford them the opportunity, during the term, of making perhaps as much more. In point of fact, Messrs Coote and Co. would have been in a .position where they could lose nothing and probably make a great deal. They asked the Colony to enter into an agreement to pay them about a million aud a quarter over a period of fifty years, and to allow them the opportunity of making as much more if they could ; and they gave no guarantee that, at the end of the term, they would hand over a cable which would be serviceable." The second offer was made to the Government by Messrs Siamep, Bros., telegraph engineers, who undertook to form a company that would lay down the cable if the Government would guarantee a net interest of 6 per cent, per annum on .£330,000; "such interest to be guaranteed from the date of the successful submersion of the cable, and the guarantee to remain in force during such periods as the cable shall be in working order, reasonable time as well being allowed for executing repairs." They further offered that, "should the net profits earned by the company in any one year exceed 6 per cent, on the capital invested, the Go"vernment of New Zealand should participate in the profits to the extent of 25 per cent, of such excess over 6 per cent." In addition,' Messrs Siemen, Bros , proposed that the Qompany they intended to form !' should commence at a tariff of one shilling per word, leaving any alteration to further agreement." This offer, as will be observed, is both definite and indefinite. In the first place, Messrs Siemen " estimate" the cost at L33C,000, and in the second place they do not specify any particular period over which the guarantee is to remain in force. So far a3 we can gather, the guarantee would have to be paid in perpetuity, while the cable was in working order, and reasonable allowance would have to be made for repair of breakages or interruptions. Itisclearthatneitherof these offers could be entertained by the Government, and therefore that the Select Committee acted wisely in recommending their rejection. A cable to connect New Zealand with Australia and all other parts of the world is a recognised necessity throughout the Colony, and we have no doubt the Colonial Government are fully alive to the urgent importance of the work. It is to be hoped that ths representatives of all the Colonies present at the Conference will discard all narrow-minded jealousies, and unite in assisting this young but en? terprising Colony to be placed in imme* diate and direct telegraphic communication with the rest of the world.