THE WAIMATE ADVERTISER. THURSDAY, MAY 3, 1900.

Waimate Daily Advertiser, Volume II, Issue 140, 3 May 1900, Page 2

THE WAIMATE ADVERTISER. THURSDAY, MAY 3, 1900.

A SINGULAR sign of the tendency of the times mivy be seen in the sentiments lately expi-essed by the Hon. Mr Ward in an interview with a Post reporter on the question of the cable between New Zealand and Australia. The Eastern Cable Company, to whom this cable at present belongs, recently asked the Australian colonies to guarantee it a revenue of £2G,000 for the year if it kept the charges for cablegrams at present rates. Since 1895 a guarantee of £20,000 has been given, and the colonies have had oach year since fo pay something to the company in respect thereof — but an amount getting smaller every year. In 1896| we paid J82G93, in 1899, J6ll63|aiid this year we would have to pay nothing. But now the company says, " £20,000 is not enough. We want £26,000, and if you don't give us that we will iaise the rates." This company seems a hard nut to deal with. In 1892 it charged for ordinary intercolonial and Government messages, 9s 6d for the first ten words and Is for each additional word, and press messages 3d per word. Under the guarantee system, and largely through the instrumentality of Mr Ward himself, though his modesty forbids him.alluding to the fact in the interview with the Post reporter, these rates were

marvellously •' re -constructed." They became 2=5 for ten words 3d for each additional word for ordinary wires and Id per word for press cables. Of course a mere glance at these figures will show what a boon this was to the colonies. This was in April, 1895, and, wonderful to relate, the income of the company lias been going steadily up ever since. lv 1896 the revenue was £14,07(5, in 1897 £16,144, in 1898 £16,646 and ' in 1899 £17,368 1 And yet, in the face of this increasing income. • the colonies are asked to extend their guarantee from '£20,000 to £26,000 ! Mr Ward stated that he j declined the proposal and then went on to say : <k lam expressing my own opinion when I say | it appears to me that far the better course «in the interests of New Zealand would be that the cable should be owned either by ourselves or jointly with our neighbours across the water. On the face of it, not nearly so much will be required to be extracted from the users of the cables if it were btate-owned as is necessary under private proprietary. In the first place, we do not require to obtain anything approaching the same amount of interest upon our money as is expected by investors in a private undertaking, and, though I am but expressing my own opinion upon this matter, I should very much like to see the other colonies have an interest in the cables, and even without them it would be not only a payable investment upon its actual financial basis, but would Jconfer benefits upon the country itself that it is difficult"^ the moment to estimate. There* is nothing new whatever in talking about the State owning its cables. It is on a par with Stateowned telegraphs in this country, : and one requires only to go to America to have an experience of the privately-owned telegraphs and railways there to realise to what extraordinary purposes they are put/ by comparison with the State-owned telegraphs and railways of this country. They form some of the greatest stocks* jfor speculative investment on the American Stock Exchanges, and the rates and arrangements are made there frequently in the interest of the speculative investors rather than in the interest of Ihe general public. It may be looking ahead, but I have a very strong conviction that before many years pass by the Imperial Government and the Australasian Governments will own the whole of the cables that now traverse the ocean to distantv parts from the aeat of the Empire, and if we can only get the Pacific cable laid and have a practical working of it for a year or two; the incentive to the acquirement of the under-sea telegraphs would be such that no resistance qpuld prevent their being generally owned by the Imperial, Canadian, Indian and -colonial Govern, ments." This is a remarkable declaration, and will doubtless be seized upon by the State Socialist party as a powerfuHllustiat.iou o( the' truth of their contentions. The figures Mr Ward gives in support of his argument ar- cl^a; and lucid enough. Wnei her the^ are absolutely collect m nor, we cannot say. lie says tinware. What he says is thi&- — "We estimate that we can put down a new cable between Australia and New Zealand of the best kind at the present moment for £200,000 at the very outside cost. This money at three per cent would "represent £6000 a year. From a careful investigation made by the executive officers of my department, I find that a very liberal allowance for the staff for salaries would' be £4000 per

annum, and a full amount for repairs £2000. Consequently, for interest and for salaries and repairs only £12,000 would be absorbed. This would leave (so long as there would be any increase whatever in the business in the future, which it would be ridiculously pessimistic to assume would not be the case) about £8000 per annum on the present revenue, over and above all working expenses, to go towards the cost of laying the cable, Now as J a matter of fact I am informed that the value of the present cable is not over £150,000, anil it would appedi 1 to me that the right course for this country to adopt, rather than to continue to give guarantees to make up a larger revenue than the company is now receiving, or to quietly submit to any increase in the cable rates, would be to acquire the existing cables, and to set aside out of the earnings a sufficiency to meet the cost. It would' pay the colony handsomely to do this. At a three per cent b^sis on the cost of the Eastern Company's cable between New Zealand and Australia there would be at once a full margin of about £Jo,oOoayear upon the present revenue over the present working , expenses, interest, and repairs, and as the increase of business fo? the last five years uas been over £.3000, it is only raiional to suppose that with the growth of population in our country and the neighbouring colonies, and the necessity for the continuous use of cables, a similar increase would go on for some years to come. I don't think I am taking an over" sanguine view when I say that within the next five years there will.be a margin of: about £15.000 p'en'annum, and in all probability, basing it upon the actual traffic that has taken place, the revenue in five years from now will be £26,000 to £27,000 per annum." Truly this is a remaikabie illustration of the enormous advantages to the people of the State doing their business for them. "Who shall say how far the system may not be extended with benefit to the country ?