CHEAPER CABLES.

Manawatu Standard, Volume XLVII, Issue 9, 8 December 1926, Page 11

CHEAPER CABLES.

EFFECT OF COMPETITION. NEW PACIFIC LINE. LONDON, Nov. 26. “The history of the Pacific Cable illustrates how even a threat of competition affects cable prices,” says Tho Times, in a leading article. The knowledge that it was to be constructed was largely responsible for reducing rates between Great Britain and Australia. It is highly desirable from the point of view of the general public that there should be as much healthy competition as possible. “The position in regard to the AngloAustralian cables has long been unsatisfactory. The single Pacific cable was congested, compelling the board to pass on messages to its rivals. The agitation for cheaper rates has been met with the objection that the reduction would simply mean worse congestion and less efficient service, but the enormously greater facilities which the board nqw commands place it in a much stronger position for meeting the requirements of the public, and also for competing more effectively with the owned Eastern service. ■ ' PESSIMISM FALSIFIED. “A conservative policy is no longer necessary. Those who doubted tho durability of the cable and prophesied heavy depreciation charges nave been proved to be false prophets. The partner Governments are now free to decide whether to take repayment from direct profits or from the indirect gains accruing from a cheaper service. “The board’s efforts to provide, cheap deferred and week-end cablegrams to Australia have been greatly appreciated, but ].ss for 20 words is more than the public can afford. “Despite the construction of wireloss, it is now considered certain that there is room and need for both systems.” Sir John Denison-Pender, speaking at the annual meeting of the Western Union Telegraph Company, said that, despite the increase in radio telegraphy, 16,000 additional miles of submarine cables had been constructed and partly laid during the past year. The first section of the new Pacific cable, from Banfield to Fanning Isopened for traffic.