The morning call., 1894-01-16
A TRANS.PACIFIC CABLE.

A representative conference, mainly on
trade ana tariff relations, is to be held in
June next at Ottawa to consider what bet
ter understanding can be arrived at be-
tween the Australian colonies and Can
ada. One matter which is to come up for
discussion is the laying of a telegraph ca
bic between Vancouver and Australasia.
This project is taking such shape that its
execution is probable within two or three
years, especially as it does not appear that
there is anything very desperate in the
commercial prospects, provided the vari-
Gus colonial Governments lend hand
The suggestion of cable across the Pa
ciic was made in the colonial onlerenc CO
of 1887. and since then definite calcula-
tions as 10 cost and route have been
worked out and the Australian Govern
ments have been consulted by Mr.. Sand
ford Fleming. Queensland and New
South Wales are showing their earnestness
By subsidzlng the French cable, which ex-
tends from the mainland 10 New Gale
donia, the convict island. But il does not
follow that this will be part of the COM
plete cable, because quite another route
may be chosen. There are, indeed, four
feasible plans. By leaving FIJI and New
Zealand minus direct contact cable 6244
miles long can be laid at cost of Sc. 900.
000. But if these important points are in
cluded three routes are available from 7145
to 1854 miles long, and the cost would be
from S6.390,000 to S9.125000. The differ
ence in outlay is not so marked as to rem
der the cheapest ca Bile the most econom-
ical 1t is proposed that the money should
be raised by the colonies guaranteeing the
interest at 3 per cent and the annual
charge on the capital for one Of the routes
is reckoned at S261, 750. including the sum
needed to extiDguish the subsidy to the
Eastern Extension Company, which lasts
until 1899 Working expenses are est-
mated at 100000 year and the renewal
fund at 100000 year. giving total an
nual expenditure of S721,750 Is there
business enough to make such line profit
able, seeing that there is already cable
communication with Europe?
Some time ago the Eastern Extension
Company lowered its tariff from nine
shilliDgs and four pence to four shillings
per word. By reducing rates to fifty cents
per word instead of a dollar it il thought
that the new company would have earn
lngs In 1897 amounting to S452, sos. This
one-half OF the business of the Eastern
Company, but very low margin is al
lowed OF IA per cent increase of business.
The advance would be such, however,
that in 1904 the income would be S720. 485
or self-supporting. and the colonies would
be relieved of any further burden, and
eventually the cable would form source
of revenue. On the whole it is not too
optimistic a calculation. The reduction
of tariff by the Eastern Company by more
than one-half resulted in an increase of
business amounting TO 81 per cent, and
when this rate is further lowered one-haIf
the development of business may be much
greater than is anticipated. The point
which cable companies must aim at is
business sufficient to keep their lines con-
stantly occupied. When. through high
tariffs. there is much idle time gain comes
from lowering the rates, but the moment
the cable is fully employed. whatever be