THE CABLE CONTROVERSY.

Taranaki Daily News, Volume XLVII, Issue 8080, 9 April 1906, Page 3

THE CABLE CONTROVERSY.

Illb VnHUi Mwniiiwi«n»>> '' • " Sydney, April 7. Mr Deakin states that represents *' "• tions by the Pacific can only -mean that it desires to placed on an equal footing with the Eastern Briewwa CoinjtaT. v. 'a-v . ..tjbuouuvApril 3. '■ • .Tfafogbi pfrthe; Eastern Extension . 'Coma»ny rejjups \ open, despite the MiUuritiei* order to close. The matter' . will be one for legal determination. The secretary of the Postal Depart- . inent traverses the company's- contention that it is the public who suffer by the closing, and affirms that the company proposed a pooling arrangement with the Pacific cable, in order that it might closelhe Melbourne and Sydney offices : and give up special land lines, and thus save £BO,OOO yearly,. The manager of the Eastern Extension replied that it was the Pacific who first suggested the pooling. The Secretary to the Postal Department points out that as the Eastern Extension Company has new special concessions there wilPbc no need to provide the facilities the Pacific Cable management formerly demanded in order that the two might be on a %ve! . footing. This means that a large sum need not be expended on a spseial wire to connect Brisbane, and the opening of separate otlices. Figures compiled by the Postal Department show subsidies and guarantees paid U the Eastern^Extension Company since il< inception total £BBO,OOO, including the New Zealand guarantee of £21,000.

LEGAL ACTION BEING TAKEN. Keceivcd t», 1 a.ui. Meluouh.ne, April 8. The Eastsrn Extension Company intends to teat tlic legality of tlie Government's action. Mttoawliilc 'key will close their Melbourne office.