THE IMPERIAL CONFERENCE

Taranaki Daily News, Volume LIII, Issue 330, 17 June 1911, Page 5

THE IMPERIAL CONFERENCE

A STATE-OWNED CABLE. By Cable—Press Association—Copyright London, June 15. At the Imperial Conference Australia and New Zealand withdrew their resolutions in favor of a State-owned cable for a motion proposed by Mr. Samuel (Post-master-General), that unless the Atlantic companies from time to time reduced the rates, the various Governments would consider the desirableness of laying a State cable. Mr. Asquith presided at the meeting of the conference. Sir Joseph Ward's motion for the cheapening of cable rates was adopted. Mr. Samuel stated that steps had been taken that had secured reductions in various direction'!, including press rates. Replying to Mr. Pearce, he said hs would urge the Treasury to consent to the Pacific Board's construction of a second New Zealand cable. Mr. Pearce, in moving for a Stateowned Atlantic cable, outlined a scheme which Sir Joseph Ward, supported. Mr. Samuel declared that the expenditure would not be justifiable at present. CABLES AND RATES. AN ENLIGHTENING DISCUSSION. POSTMASTER-GENERAL'S VIEWS. Received 16, 9.5 p.m. London, June 16. Sir J. G. Ward, in moving a motion in favor of the reduction of cable rates, said much had 1 been accomplished, but cheapening had not gone far enough. Postal experience showed that reduction charges, to the point of securing to the public freer use of the services, produced a more profitable working. As oversea feeling was that the present rates were due to a ring in the cable world, he hoped the conference would effect improvement in the direction of a more general use of the cables.

Mr. Herbert Samuel, Postmaster-Gen-eral, sympathised and supported the resolution, and said that since last conference the press rate had been reduced, but he agrc-i the progress was not adequate. ver? being taken to secure cheapening in fovcr-tl directions. Firstly, he hoped for a r>o per cent, reduction on deferred cables; secondly, a further reduction in the press rate; thirdly, the Government intended to insert a clause in the new landing licenses giving control over rates, providing security to companies against abuse of that power by appeal to the Railway and Canal Commission; and, fourthly, developing wireless, which would have some effect on cable rates. He assured the conference that the passing of the resolution would be followed by effective achievement.

Sir Wilfrid Laurier declared that all the trouble existing at present was due to the Atlantic cables. An impression in Canada, almost amounting to conviction, was that a combine existed. Mr. Samuel's suggestion would deal with combinations. Mr. Fisher said the increased facilities of reduces rates appealed principally to Australia and New because they were dependent on cables for European •nd American information. • He asked whether it was feasible to grant a low rate over the Pacific cable for news cabled from Australia to Montreal, whence it could be posted to Britain.

Mr. Pearce asked whether the Post-master-General Had any information in regard to the refusal of the Treasury's sanction for the construction of a new cable from New Zealand to Australia by the Pacific Cable Board, on the ground that it would interfere with the development of wireless telegraphy. Mr. Samuel agreed to infprm the Exchequer of the strong desire of Australia and Xew Zealand to have a cable board authorised. Mr. Asquith also promised consideration, and the resolution was then adopted. Mr. Pearce moved the nationalisatin of the Atlantic cable to Australia. He believed this was the only way to get a beneficial result of the outlined All-Red Cable, including the Atlantic cable and the Canadian land line. The former cost £480,000, and the land lines £120,000. The estimated working maintenance of the cable was £21,500. and the land line £32/000, with the set-off of certain existing expenses amounting to £22,000. It was estimated that the Board would have an immediate revenue of £30,000 in addition to new business. The AllRed line was feasible, and was unlikely to require special financial assistance from Governments.

Sir W. Laurier, after Mr. Samuel's statement in connection with the previous resolution, preferred to reserve judgment on the present proposal. Sir J. G. Ward was strongly of opinion that nationalisation was the right course. Mr. Samuel's proposals were important, but rates were only placed on a satisfactory basis through Government ownership. Nationalising was of greater importance from the Imperial viewpoint than concessions of rates.

Sir J. G. Ward continued that if it could be arranged to tnke over private «ables on reasonable terms, it would be the finest thing ever done for the Empire, and equally good for commercial transactions. If the companies were unwilling to sell at market value to the Government the Empire could lay a cable of its own. Even if the cost were half a million, it would produce a substantial result. The Government contributions as a subsidy was only a small matter. Referring to the proposed second Xcw Zealand-Australian cable, he declared its stoppage by the Treasury was regrettable. The South African and N T ew Foundland delegates expressed themselves fatisfied that Mr. Samuel's proposals did not favor nationalisation .it present. Mr. Samuel stated that Mr. Pearee'R proposal world involve half a million. In view of the deficiency between the amount of work the Pacific cable would give the Atlantic cable, he questioned

whether the deficiency would be made up by increased business. If the business were increased by a large reduction in rates, the load would be made up, but the revenue would not be increased. There was little prospect of a Stateowned cable attracting business in the United States and Canada, because the land lines there were controlled by companies associated with the present cables. According to a draft report, the proposed cable would involve an expenditure of over fifty thousand, against an estimated revenue of twenty thousand annually. The Governments concerned were asked rx> undertake that loss on the ground of efficiency of service. Although the pTesent system was unsatisfactory it was worked with speed and accuracy. There was more force in the argument that the cable should be laid in order to secure cheaper rates. Though the Government was not justified in undertaking the expenditure involved, he suggested an alternative resolution that, in the event of considerable reductions, the trans-Atlantic rates remain unaffected. In the near future the desirability of laying a State-owned cable between England and Canada would be considered by a subsidiary conference. Other resolutions having been withdrawn, Mr. Samuel's was adopted.