THE NEW ZEALAND TELEGRAPH CABLE.

New Zealand Times, Volume XXIX, Issue 4131, 17 June 1874, Page 3

THE NEW ZEALAND TELEGRAPH CABLE.

In an article on the agreement between the three Governments of New South Wales, Queensland, and New Zealand, as to a telegraphic cable between this Colony and New South Wales, and a cable between Normautown and Singapore—to which wo referred yesterday —wo find the following in the Sydney Morning Herald of May 27 : We do not for a moment imagine that the delay in submitting the proposal to our Legislature has arisen from any suggested doubt as to its expediency, or from any fear of its meeting with an ill reception at the hands of hon. members. The policy of the proposed subsidy rests on the same general ground as that which justifies a subsidy for an ocean mail service. The guarantee, it is true, is for a longer period than is usual for mail services, but then there is tins advantage, that the amount is diminished when tho profit exceeds a stipulated interest on tho capital invested. If we adopt tho plan of measuring tho obligation incurred by tho amount of the benefit bestowed, then there is no difficulty in showing that what we get is worth all it costs. In fact, there are few inventions of modern times in which the proportion between tho benefits and tho outlay is so favorable as in tho case of electric telegraphs. The annihilation of time and space is a revolution tho advantages of which are so great and so ramified, that it is impossible to estimate thorn. But though wo cannot put tho result in figures, wo can feel tho most absolute certainty that the price named as tho cost of this benefit is very far below its real value. There is a very large margin to guarantee safety in this estimate.

So far as respects the lino to New Zealand, there can be no doubt about the importance to the whole Australasian group of linking this rising Colony on to the general electric chain. Regarding as wo do all commerce as a mutual benefit, we believe that the advantage will he as much for the rest of Australia as it will bo for Now Zealand, and most assuredly Now South Wales will not gain the least. The cable will bo of very great utility in connection with our Pacific mail service, in the development of which Now Zealand is our co-partner. It must bo remembered, too, that New Zealand is a great customer for our coals, and that as Sydney is nearer to most of its porta than Melbourne is, telegraphic orders for general goods could be supplied more quickly from Sydney than from Melbourne. Queensland joins with ourselves in guaranteeing a dividend on the New Zealand cable, but then in return it gets the support of Now Zealand for the northern cable. New South Wales placed between these two Colonies, each with its separate interests, assists both, being in fact interested in both. Yet our interest in the northern lino is really not greater than that of Victoria, which has stood aloof from the agreement, considering that it need not tax itself while the other. Colonies are willing to do the work_onJpts behalf.

A second northern line is important for two reasons; first as a competitive line, secondly as a duplicate line. We attach some, but not very much, weight to the former consideration, though we should attach much if we could feel any assurance that the competition would be temperate and perpetual. We fully believe that in. a very short space of time there will be work enough to sustain the two lines, and that a little emulation between them would be wholesome to the community at large ■without being injurious to the capitalists. But competition so often runs into extravagance only to terminate in monopoly that wc can feel no assurance on this point. We have seen already that many English cable companies have merged into one, and as we have no control over the capitalists whose services we enlist, we can have no assurance that they will not combine with those already in the field to join their enterprises in a common monopoly. For this reason it is not permitted us to feel any certainty that, by promoting a second line we secure permanently the advantages of a healthy competition. But if we do not get a competitive line we shall be sure at any rate to get a duplicate line, and this is daily becoming a matter of increasing importance. We have become so used now ( to the through communication, that we feel it 1 a great inconvenience when it is temporarily I interrupted. We cannot afford to be dependent any longer than is necessary on one line, and the communication must be assured by the construction of a duplicate. It is this consideration which seems conclusively to determine that our true policy is to spend our money in supporting a second line rather than in contributing to the proposed subsidy for reducing the cost, of telegrams on the existing one. Victoria, which has hitherto been entirely exempt from any expenditure in the matter, may be fairly challenged to take the burden of this particular subsidy on its own shoulders, and to give substantial assistance to its weaker but spirited neighbor, who has already done so much. We shall best subserve our own interests, and also do most to serve those of Australia in general, by carrying out the alliance with Queensland and j\ T ew Zealand.