CABLE CHARGES.

Temuka Leader, Issue 1562, 28 September 1886, Page 3

CABLE CHARGES.

The following letter has been addressed 10 the Press on the above subject;— “ September 24th, 1886. “Sib,—l am instructed to communicate to you the accompanying copy of a telegram forwarded by the Chairman of the Eastern Australasian and China Telegraph Company (Limited), to the Government of New Zealand, notifj ing that the tariff of the Sydney-Nelson cable for intercolonial telegrams will on and after the Ist of October prox. be 10a for tec words, and Is for each additional word, instead of 6a for ten words, and 7d for each additional word as heretofore. The company have delayed taking this step for the last eight months, hoping that the necessity for it might be avoided, but having after prolonged negotiations failed to obtain a renewal of the subsidy which 1 expired last February, and the receipts without the subsidy being insufficient >fter ten years working without a single interruption during the whole of the period to give a return of 2 per cent on the capital invested, they have no alternative but to raise the tariff to recoup the loss of the subsidy. The Government of New South Wales, as far back as June, 1885, agreed to renew their share of the subsidy for a further ten years, and in consideration of such concession the company were prepared to reduce the tariff to 6s per ten words for ordinary, and 3d per word for Press telegrams; but the Parliament of New Zealand would only agree to renew the subsidy for five years, on conditions unacceptable to the company. Consequently the company offered to make the tariff any figure the colonics pleased, provided the average of their receiptsfor the last three yours were guaranteed. Thus would have been obtained 1 more than could be possible to establish ny any other reasonable moans, nnd if the opinion frequently expressed io the colonies, that cheaper rates would lead to a corresponding growth of traffic were borne oat, the amount of guarantee the colonies would have to make up would be quite nominal. The proposal, however, was declined, and the New. Zealand Government now withdraw the ofLr sanctioned by Parliament for a renewal of the subsidy for five years. Under these circumstances the company is reluctantly compelled, in the interests of their shareholders, to raise the tariff as above announced, and the responsibility of this course must rest with the Government jf New Zealand, and not with the company, as the latter have exhausted all possible means of bringing about a satisfactory solution of the question, A complete copy of the correspondence relating to the negotiations between the company «nd the Governments of New Zealand and New South Wales will be received in a few days, when it will be forwarded to you for publication.—l am, etc,, W. WoOLKOfUOH BaovfNlNa, Superintendent, Cable Bay, Nelson." Since the contract was entered .into a mutual agreement van made to lower the rate from the amounts mentioned above to 6s for ten words, and 7d for eac h succeeding word. In return the company, amongst other things, was released from the necessity of keeping a cable ship stationed in these waters. Arguing from these provisions, Govsrnment contend the company has no power to raise the rates, and that such a thing was never contemplated after the subsidy ceased to become payable. With this view the Sydney Government agree. From present appearance, Government is not likely to : give way. It appears that the company has actually offered to sell the cable for £150,000, which is about halt its original cost, but it is rather light, and having seen ten years service, Government do not think it advantageous to buy it. A new and strong cable they say cun be put down for £160,000, and it is understood there are men in the colony willing to join in such an undertaking. There is also the question of the Pacific cable, which would not only give New Zealand another line to Australia snd communication with England, but also very much cheaper rates. Laying the new cable, however, is a work that nonet occupy a considerable time, and meanwhile the Press of New gesland will be precluded from sharing in the advantages now enjoyed by their Australian contemporarie*. While the charges‘from England to Australia have been materially lowered, not only have those between Australia and New Zealand been maint'dned, but the latest move of the company threaten* to put the newspapers of this colony in a worse position than ever. Taking advantage oi the increased amount of news sent to Australia it was in contemplation also to enlarge the number of Cable messages to New Zealand so soon as the rates were correspondingly lowered. The increase now thieHteeed by the company, amounting to 60 per cent, will of course be a great stumbling block in the way of such advantages beiug offered to the public. Communications are passing with the Postmaster-General of New Souih Wales with reference to the proposed increase of cable rates, and it is understood that a reply has been sent to the Manager of the Cable Company by the New Zealand Government, but the nature of the reply has not been allowed to be made public. It 11 not by any means certain that the company will it desirable to make an increase in the tariff, and at any rate it does not appear they can legally do so on the let of October, as the international office has ’sent‘no nbtipe, and the Convention regulations rei uire a notio ® of *9 dayir

S Kiita'ioD from the WeTington tin si ui! >.-r of Coimnf-rce waited on Sir J. Vogel yesterday. Mr Travels, Chairman, explained they wore anxious to know what course was likely to he taken with regard to cab'e rates. Sir J. Vogel entered at length into the whole question, and detailed every step taken on both sides, as already published. He mentioned they had three tenders last year for laying a new cable, the lowest being £170,000. Ke explained the clauses «f the contract bearing on the position, and said though a lawyer may pessib ! y wrest clause Bin favor of the company, he did, not think there could be any doubt about clause 13, which concerned terminal charges. The company have been well treated by the colony, and if they carried out the threat wo should have a right to take advantage of the contract. Government was firm in its intention not to yield. If the rates were raised it would ask authority to lay anew cable, which would be done in a year. He had communicated with New South Wales regarding the working of press messages on land lines as low as possible, and he did not think India would view with indifference t !, e action of the Company. The deputation thanked Sir J. Vogel and withdrew.