COST OF CABLE.

Temuka Leader, Issue 2055, 5 June 1890, Page 1

COST OF CABLE.

The following is a brief summary o£ the cable question. Public messages shall be reduced from 9s 4d to 5s Government messages to 4s sd. and press messages to Is lOd, upon the following conditions: The arrangement to be for one year, the company to bear half the loss. If the traffic increased 25 per cent, the colonies’ guarantee would amount to £40,000 ; if the increase were 50 per cent,, it would amount to £25.000, and if the increase were 75 per cent., the guarantee would be £IO,OOO. New Zealand’s proportion would be £6924, £4327, and £l7Bl, respectively ; but in the event of the proposals being agreed to New Zealand would probably be asked by the other colonies to bear a’proportion of the subsidy of £32,000 a year now paid to the company in respect of the Darwin-Banjoewaugi duplicate cable, which subsidy has still eleven years to run, and is now paid by Victoria, New South Wales, South Australia, and Western Australia. At the present time New Zealand receives no reduction upon Government messages, as we do not contribute to the duplicate cable subsidy. During the last year cablegrams containing 48,617 words were sent from New Zealand to London, and for places through London, at the 9s 4d rate, of the value of £22,687 ; at the 5s rate the value would have been £12,154. The company stipulate that if at the end of the year the traffic doea not respond to the reduction and the colonies do not care to extend the subsudy, the company are to revert to an 8s tariff, providing such gives them the same revenue as at present.