The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-09-08
THE PACIFIC CABLE
What Eastern Companies
Proposed.
Some Facts and Figures as to the
Business Done Between Aus
traiia and England.

IdDlt SltudIlOH uOL heretofore DlD-
lished. The following extracts are Ia
ken from the letter:
The views of the Eastern Telegraph
and the Eastern Extension Telegraph
| Companies in regard to the proposed
| Pacific cable We're placed before Sill
Michael Hicks-Beach, Chancellor OF
the Exchequer, and Mr.. Joseph cham
| berlain, Secretary Of State 70" the Col
| onies, by a deputation yesterday.
| , ne Marquis of Tweeddale, chairman
| of directors of the two companies, adj
| dressed the Ministers on behalf of the
| deputation. He submitted that the ac-
zion of Great Britain'in joining with
| the colonies in direct competition with
| the existing companies would be an
| Objectionable and unjustifable inter-
ference with private enterprise. aid
would be opposed TO the spirit 'f tie
various International Telegraph Con-
| Vent1OnS.
t'he cable traffic between Cana In aad
Australasia was Insignificant, l;nount-
ing only to about G. ZOO annually The
AustralaSan traffic with the United
States was only per cent of the total
Australasian traffic, and was. mere
laying OF a 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 made by
the companies, the tariff for messages
between England and Australia was
the cheapest in the world, in proper
ton to the distance. 1t was only one
half penny less per thousand knots
than the rates ruling to America,
which We're 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 10 make substantial re-
auctions, either on a guarantee or sub
sidy basis.
During the past two years the total
traffic with the Australasian colonies
had slightly decreased, instead of show
ing a 10 per cent annual increase, as
was anticipated by the Pacific Cable
Conference.
three,shilling per word Australian
rate would entail an annual loss upon
the companies, on the basis of the ex-
listing tariff, of 913O,O00. If, in addi-
ton, 750, 900 words were diverted to the
Pacific line, this loss would be in
creased by nearly 874,0O0, making a
total yearly loss of 8204.000 out of an
annual revenue OF G313,O00
So far as the desire for an all-British
cable was concerned, it 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
to 100000. The annual
charges for maintenance would be
G162 900. If the line were duplicated,
the annual charges would be increased
by G125,000, making total of &c 2S7,-
900, which would leave an annual def
cit of 100000, even upon a favorable
estimate of the probable traffic.
The cable traffic between Cape Colo
ny and Australia was far more entitled
to consideration than that between
Australia and Canada. The Cape traf-
fc 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-
ically, 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 a neutral State.
If 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
IL disadvantages Of foreign Govern
nent competition.
If the Governments Of Great Brit
lin and the colonies were determined
Upon the adoption of the Pacific route,
he Eastern Companies were prepared
O lay the cable, via Honolulu, if they
we're guaranteed 21a per cent. interest
N the stock of new company which
would be formed to take over the bust
less of the associated companies at
heir present market value. Upon the
of that company the present
eserves Of the existing companies,
to between five and Six mill
ions sterling, would become available
OF laying the 1dclHC anu OlueT CdDIeS,
nd a revenue margin of about half a
million per annum would be available
or the reduction of rates and the re-
leeming of capital.
1t was matter worthy of consider
ltion that the proposed Pacific cable
would give American messages a boun-
Y of Is per word over English mes
ages to Australia.
al /
lie was surprised that the Eastern
Companies had not urged their objec-
ions to Government interference with
private enterprise before the British
Government was committed to the
cheme. Besides, as a matter of fact.
he Government did already compete
With private enterprise. The compa-
lies had received subsidies to a cOnsid-
rable amount, and were unnecessarily
harmed concerning the future. The
Srit GnvorDr would have aided |