The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1899-09-08
the PACIFIC CA0lt.
What Eastern Companies
Proposed.
sems Fsots ara figures IS to ths
ous,psss poos Usswssu Aus
,vaiia and Eos,sod.

cable situation not heretofore pnD-
lished. The following extracts afe Ia
ken from the letter:
The views OF the Eastern Telegraph
and the Eastern Extension Telegraph
Companies In regard to the proposed
Pacific cable were placed before Sir
Michael Hicks Beach. Chancellor OF
the Exchequer, and Mr.. Joseph Cham
berlain, Secretary Of State fDr the COL
onies, by a leputation yesterday.
Inc Marquis Of Tweeddale. chairman
Of directors of the two companies, ad-
dressed the Ministers on behalf OF the
deputation. He submitted that the ac-
lion of Great Britain In Joining with
the colonies In direct competition with
the existing companies would be an
obje, tionable and unjustifiable inter-
ference with private enterprise, aid
would be opposed to the spirit :. tie
various International Telegraph Con-
ycntIons.
The cable traffic between Cana IL and
Australasia was insignificant, .tihoult-
ing only to about 81, 100 annually. The
Australasian trafiic with the United
States was only per cent Of the total
Australasian trafic, and was, ilere-
fore, wholly inadequate to justify the
laying Of lew cable. There was also
the fact that the Australian colonies
were by no means unanimously In ia
vOr OF the Pacific scheme.
With regard to the charges mad, by
the companies, the tariff for messenger
between England and Australia was
the cheapest in the world. In proper
ton to the distance. II was only one
half penny less per thousand knots
than the rates ruling to America,
which were subject to keen competi-
ton.
1t was not true that the Eastern Tel
egraph and Eastern Extension Tele-
graph Companies were monopolists, or
enjoyed exclusive rights. On the con-
trary, they were prepared to meet fair
competition, or to make substantial re-
auctions, either on guarantee or sub
sidy basis.
During the past two years the total
trahic with the Australasian colonies
had slightly decreased, instead of show
ing . 10 per cent. annual increase, as
was anticipated by the Pacific Cable
Conference. ~ e, ~ ,.-.'.
A threershilling pet. word Australian
rate would entail an annual loss upon
the companies, on the basis OF the ex-
listing tariff, Of G130.0O0. II. In addi-
ton, 10000 words were diverted to the
Pacific line, this loss would be In
creased by nearly R74.000, making a
total yearly loss OF G204.000 out of ap
annual revenue Of G313.0OO.
So far a. the desire for an all-British
cable was concerned, 4 would not be
satisfied by the Pacific scheme, because
the messages would have to be trans
mitted either by the American cables
or the American land lines.
Owing to the rise in the price of ma
terials required, the cost Of laying the
Pacific cable, capable OF carrying five
paying words per minute, would
amount to G2,000000. The annual
charges for maintenance would be
Gl62, 900. II the line were duplicated,
the annual charges would. be increased
by ELS, 900. making total OF G2S7.-
900, which would leave an annual def
cit of G2OO, 900, even upon q favorable
estimate OF the probable traffic.
The cable trafiic between Cape Colo
ny and Australia was far more entitled
to consideration than that between
Australia and Canada. The Cape traf-
fic already exceeded $1,000 per an
mum, and was increasing.
The alternative all-British Cape
Australian line was superior to the
Pacific scheme, commercially, stateg-
icaily. financially and in carrying ca
pacity.
The present lines to Australia were
all under British control. except where
they touched at Java, which was prac-
tically q neutral State.
II the principle Of State competition
once became established, It was quite
probable that State-owned cables
would become the rule, and this would
involve the companies In the addition
al disadvantages Of foreign Govern
ment competition.
II the Governments of Great Brit
ain and the colonies were determined
upon the adoption Of the Pacific route,
the Eastern Companies were prepared
to lay the cable, via Honolulu, II they
were guaranteed 2ih per cent. interest
on the stock Of new company which
would be formed to take over the bust
ness OF the associated companies at
their present market value. Upon the
formation OF that company the present
reserves Of the existing companies,
amounting to between Ave and six mil
lions sterling. would become available
for laying the Pacific and other cables.
and a revenue margin OF about half a
million per annum would be available
for the reduction OF rates and the re-
deeming OF capital.
II was q matter worthy OF consider
alton that the proposed Pacific cable
would give American messages boun-
~ OF IL per word over English mes
sages 10 Australia,
Sir Michael Hicks Beach replied that
he was surprised that the Eastern
Companies had not urged their 0bjec'
tons 10 Government Interference with
private enterprise before the British