CHEAPER CABLE SERVICE

Taranaki Daily News, Volume LIII, Issue 196, 28 November 1910, Page 5

CHEAPER CABLE SERVICE

BY AN ICELAND ROUTE. By Cable—Press Association—Copyright. Received 27, 5.5 p.m. London, November 26.' The Times warmly commends the important plan of a State-owned cable via Iceland, now under consideration. It is estimated that a tariff which is inadequate for the existing Atlantic cables, even working at their fullest capacity, can earn a satisfactory profit for the Iceland route if working only six hours a day. What is represented as a practicable charge, though it would not necessarily be adopted at the outset, would reduce the ordinary messages from Great Britain to Montreal to 4 1 / 2 d a word, and the rate for Government, Press and deferred messages would in that case be 2y 2 d. A sixpenny rate would cover the cost of similar messages to Australia. The capital required would be £850,000. The annual receipts, at the lowest rates mentioned above, are estimated at £I4S ; - 750; and the expenditure, wdrking expenses £55,000, repairs £12,000. contingencies, canvassing, etc.. £15,000, provident fund £30(10, renewal fund £18,500; leaving an annual profit of £45,250, or upwards of 5 per cent, on the initial outlay. The suggested service would gain security if a wireless were installed" on the same route, and the cost would be small.