THE NEW ZEALAND TELEGRAPH CABLE.

New Zealand Times, Volume XXIX, Issue 4130, 16 June 1874, Page 3

THE NEW ZEALAND TELEGRAPH CABLE.

We abridge as follows, from the Sydney Morning Jlcrald's report, the discussion that took piace in the Assembly of New South Wales on the 27tli May, on the subject of Australian and New Zealand telegraphic cable : Mr. Parkes moved, That this House will to-morrow resolve itself into a committee of the whole to consider the following resolutions : 1. That this House approves of the following conditions of agreement for the construction of a Telegraph Cable between New Zealand and New South Wales, and one between Nornmntown, in Queensland, and Singapore, as agreed upon by the representatives of the Colonies of New Zealand, Queensland, and New South Wales, in Sydney, on the 14th February, 1873 ; and empowers the Government to enter into a contract, in conjunction witli tho other Governments named, upon the terms therein stated, for tho purpose of carrying out this undertaking. <f Agreement. —The following conditions for the construction of a‘telegraph cable between New Zealand and New South Wales, and one between Nornmntown in Queensland, and Singapore, are those which the representatives of New South Wales, New Zealand, and Queensland, agree to recommend their Governments to submit for tho approval of their respective Parliaments. 1. The three colonies shall jointly enter into an arrangement for the construction of an electric cable to be laid between some point In New Zealand and some point in Now South Wales, and also a cable to be laid from Nornmntown, in Queensland, to Singapore, the latter to be a through cable, touching only at such points as may be agreed on, and to be entirely distinct the whole distance from the line between Port Darwin and Singapore. 2. The arrangement to be for a guarantee of 5 per cent, for a term not exceeding thirty-five years, upon a sum not exceeding one million pounds for the cost of the two lines.

3. Twelve thousand pounds per annum to bo allowed to [cover in full all expenses. All receipts above twelve thousand pounds to pass in reduction of the guarantee. The contractors to retain receipts in excess of the guarantee ; hut if the profits are move than 10 per cent., the Governments may require that the rates shall he lowered to amounts calculated to reduce the profits to 10 per cent. -t. The guarantee to bo paid only whilst the lines are in working order: Provided that four weeks in each year will he allowed for repairs. If the New Zealand lino only be in order, one-third of tlie guarantee to be paid ; if the Singapore line only be in order, two-thirds of the guarantee to 1)0 paid. It the linos are not kept in order with due diligence, or if communication should permanently fail, the guarantee to cease.

5. The two lines to bo commenced and constructed simultaneously. 0. The cost per message of twenty words, from New* Zealand to New South Wales, not to exceed fifteen shillings; the charge for each word above twenty being ninepcace. And the cost for twenty words from Normantown to Singapore not to exceed forty shillings for the first two years, and thirty-five shillings afterwards ; the charge for eacii word above twenty being two shillings. 7. Queensland to undertake to keep the land line to Normantown open for tho use of the other contributing Colonies at rates not to exceed at any time seven shillings for twenty words, S. Tiie three Governments to act in unison, and to jointly arrange the details. 9. This agreement, after being approved of by the respective Governments to tie subject to rotilie.at.ipp_ by the resnp.e.tivp UrlirdVAius ; ami tlie details to be arranged iii London by representatives appointed by the three Colonics. 10. Tlie Governments will require to ho satisfied that tlie contractors have mode proper provision for the use of a through line of communication between Singapore and London. ” 13. That this resolution be transmitted to tiro Legislative Council for its concurrence.

He said that as the resolution stated, at tiro time tlie Intercolonial Conference was held in Sydney in February last year, the delegates from Queensland and New Zealand took advantage of tho occasion to open negotiations with the Government, in order to establish a second telegraph cable between Australia and England, which should bo a throughout line, independent of the lino already in existence ; and in addition to this advantage, the establishment also of a submarine cable between New South Wales and New Zealand. It happened that about that time a gentleman, representing an English company, was in Sydney, with full powers to undertake a contract fertile construction of this work. Well, in carrying out such an undertaking there would need to be obtained tho consent of a number of independent parties. For instance, the consent of Baron Reuter, who had the exclusive privilege of carrying on communication through Persia, and the Indo-European Company, whoso lines alone were available for tins second undertaking, if it were to be independent. It so happened that the gentleman had not only credentials from the company he represented, but was also fortified by contracts in his possession from all persons who had authority in the matter, and whose authority was necessary to complete tho contract. The most favorable terms to which ho assented were that the three Governments of Queensland, New Zealand, and New South Wales were to guarantee five per cent, upon the capital of £1,000,000 sterling, which was estimated to he required for tlie construction of these telegraph lines for 35 years. That being done, it was estimated that the working expenses of the line would be £12,000 per annum ; and that amount was to bo allowed out of the earnings to cover those expenses. All the earnings above that were to be appropriated to a reduction of the united guarantee until it was extinguished. And then, if in course of time the earnings of the cable amounted to more than the guarantee of £50,000 per annum, tho company were to have 10 per cent. If there was any surplus after paying that 10 per cent, it was to be distributed between the contracting Colonies in tlie shape of a reduction of the charges for telegrams. The Government of Queensland submitted this agreement to tho Parliament of that Colony in the precise form in which lie (Mr Pavkos) was now submitting it; and it was assented to by a very largo majority. InNow Zealand the Government introduced a Bill into Parliament to authorise them to enter into the undertaking, and that Bill was passed into law. At the time the provisional agreement was made ho did not undertake to submit it to Parliament until the present session. But it was certainly his intention to have submitted it some mouths ago ; but, from one cause or another, it had been delayed to the present time. He had obtained from the Superintendent of Telegraphs in this colony some calculation of what this telegraph lino, if established, would bo likely to earn. Mr. Craoknell assured him that he estimated, upon what ho considered a very moderate basis, that there would ho twenty-five telegrams per day between tho Australian colonies and New Zealand, which would give 10,000 telegrams per annum, and produce a net return of £12,000 a year. Then Mr. Crackuell estimated that there would ho 12,000 single rate messages from Normantown to Singapore, which, at 40s. each (tho maximum sum contracted for) would yield annually £24,000. Mr. Crackuell assured him that lie considered that a very low estimate indeed, and that ho believed that the business done would he in excess of that stated. Of course, if we were to admit, as he supposed it, would bo admitted, that these Colonies would go on progressing at a sustained ratio, the amount of telegraphic business must increase every year, and tho earnings of tho telegraph would he greater and greater. The two estimates gave a return of £30,000 annually. Out of that, £12,000 would have to ho sot aside for working expenses, as per agreement, which would leave a not balance of £24,000 to bo distributed between tho Colonics. In other words, the surplus, after tho working expenses had boon paid, would reduce tho united subsidy to £24,000. Now as to the advantages. It being admitted, as ho supposed it would be, that telegraphic communication between this Colony and Europe was essential, it would bo a great advantage to have two competing lines. The very

first effect would be to reduce to £2 what we now paid £5 and some odd shilling's for. But a greater advantage than the reduction of the tariff of clnvrges would be that the Colony would be placed beyond the risk of a stoppage in telegraphic communication, because if the proposed line were opened—unless both lines failed at the same time—there would

always be one or other of them by which we could have communication with the rest of the world. Then we should have the great advantage of being at once connected by electric telegraph with New Zealand, a Colony of great importance, and which was increasing in all the elements of prosperity from day to day like all the Australian Colonies. He might mention that the ship Challenger, which was now on a voyage of discovery, had received orders to survey a pathway for telegraphic purposes between here and New Zealand. And he held in his hand a letter from Captain Nares, stating that if the weather was favorable he promised that the work would be most effectually done ; and that on his reaching Hew Zealand he would advise us as to the results. The advantages of the proposed undertaking' 'were so many and so obvious, and the cost to the colony would be so small compared to them, that he did not anticipate much opposition to the motion, and perhaps it would be better for him to reserve any other observations lie might have to make until the House was in committee. Mr. Macintosh : What will be the cost of a message to England by the new line? We now pay £lO for twenty words. Mr. Parkes said that? the cost would be best estimated by the relative cost betwen Port Darwin, Normantown, and Singapore. What we now paid £5 and some odd shillings for would be charged by the new line £2. Single messages between here and New Zealand wore to cost 15s.

Mr, J. Hobertson said lie certainly did not rise to oppose the motion for going into committee, because he had always been favorable to the establishment of a second telegraph line between this colony and Europe. But lie desired to point out that years ago, in 1870, lie was a party to an agreement between this colony and New Zealand, and Queensland. And that agreemenfwas much more favorable for this colony than the proposed agreement. The great difference between the two was that the agreement to which he was a party provided that the Colonics of New Zealand, Queensland, and New South Wales should jointly undertake to guarantee a subsidy of £IB,OOO per annum for a cable between this colony and New Zealand in tiie following proportion : —New Zealand, 5-tenths ; New South Wales, 3-tenths ; and Queensland, 2-tenths. Mr. Stewart said that it seemed to him that this agreement would be a very improvident one as compared with that formerly come to. It did not mention what proportion each colony would be expected to pay. New Zealand would reap by far the largest benefit, for she was the only Colony that did not possess telegraphic communication with Europe. The cost of the line appeared to be high; and the amount put down for working expenses—£l2,ooo a year—was excessive. He thought a duplicate cable between Australia and Singapore was very desirable; but if a Hue were to be laid between Australia and New Zealand, that Colony ought to bear a share of the cost proportionate to the benefits she would receive. The time should be fixed during which the work should be commenced, or otherwise a contract might be entered into and held over for an indefinite period to the great injury of the Colonies. It ought to be stipulated that the work should be commenced before the Ist of June, 1875.

Mr. HOSKIKS admitted the great advantage of telegraphic communication oy ilie roiue proposed ; but he thought that New Zealand should bear one-half the cost, as the present Premier of that Colony had formerly agreed to do. Unless that were done, there would be no mutuality of interest, for the larger portion of the expense would be incurred in laying a cable through 1200 miles of a stormy sea in which soundings had not been taken. New South Wales and Queensland would have no greater advantages from the completion of that line than Victoria, whose population and commercial interests were much greater ; and that colony ought, therefore, to be invited to contribute to the subsidy. The Californian mail steamers would arrive at New Zealand earlier than New South Wales ; and telegraphic communication with Australia would thus benefit Victorian commerce, while that colony paid nothing for the advantage. We might join with Queensland in obtaining a competing line with Europe without rendering ourselves liable for anything like the amount here proposed. He was inclined to think that the promoters of this undertaking would make a very good bargain ; and ho was of opinion that the agreement, like all those which had been entered into between this colony and New Zealand, was one in which that Colony had got the best of us. (Hear, hear.) He approved of a competing cable, because by that moans they would ensure a reduction in the present high charges. Mr. Macintosh believed that new Zealand would get the best of the arrangement, though the present agreement was a very different thing from that which was initiated in IS7O. At present they knew more about the matter, and were better able to lay down the basis of cost. However, New South Wales could not have very much the worst of the bargain, as, having more population than New Zealand and Queensland put together - , the saving in the cost of telegrams would be greater to her than to either of the other colonies.

Mi - . Bonus should vote for going into committee, but hoped when there to see some better understanding as to the share each Colony should pay. Mr. Pakkes, in reply, pointed out that an examination of figures would show to what extent New South Wales would be advantaged hy tho first agreement as compared with the present. Tho hou. member for West Sydney seemed to think this agreement a second thought of tho Government, based upon the recommendations contained in tho report of tiie select committee of last year ; but if the hou. member would look at the date of the agreement, he would find that it was come to some months before the hon. gentleman’s report was written. [Hr. ItOßElvrsoN : Not before my agreement !] What the hon. gentlemen called his agreement was no agreement at all. This now before the House was an agreement that could be put in force in a mouth. [Mr. Bobebtson.—A job.] If it were a job, let the House put a stop to it. It would hardly bo believed, however, that the deficiency between tile proposal of the hon. member and the agreement now before the House was just £OOO. He would point out that if au alteration were made in the agreement it would be rendered void, for were these Colonies joined together they must act in unison, and no alteration could he allowed in the terms of an agreement come to and determined on. Tiie motion was put and carried without division.