305

A.—4

15 June, 1911.] Nationalization of the Atlantic Cable. {9th Day. Mr. PEARCE : Figures that have been adopted by the committee ? Mr. SAMUEL : I understand so. Mr. PEARCE : I am informed not, and that this is a draft report not yet adopted by the committee of the Board. Mr. SAMUEL : I understood the committee had submitted this report to the Board, but the Board have not yet considered it. Perhaps lam wrong. Mr. PEARCE : I am so informed by the Australian representative. Mr. SAMUEL : As I say, my own Department has examined the estimate and thinks the expenses would be heavier. The question is, what reasons can be adduced for incurring the loss, if a loss is probable ? It cannot be urged that on the ground of efficiency the present service is unsatisfactory, because I think it is agreed on all hands that the work is done by the companies with very great speed and accuracy. Then the question remains as to whether it is necessary to incur this expenditure, and possible, or, as I think, probable, loss in order to cheapen cable rates. If no steps were being taken with that object in view, then possibly a strong case might be made out, or a stronger case at all events than is now made out, for laying a Stateowned cable across the Atlantic : but in view of the halving of the rates on deferred telegrams, which is now agreed to by the companies, and in view of the fact that we are now establishing State control over all rates as fast as the land licences expire, it appears to me that the Governments would not be justified in putting their hands in their pockets in order to make this large capital expenditure, which is, in our view, very likely to be unremunerative. There is one means I would suggest to Mr. Pearce by which the cable rates between this country and Australia might be reduced. The rate now by the Pacific route is 3s. a word, and it is made up in this way : The rate from any part of England to Montreal is 10d., and that includes the expense from the town in England, wherever it may be, to the cable across the Atlantic, and from the landing place on the other side to Montreal. From Montreal to the Pacific the charge is 2d. ; from the Pacific Coast of Canada to Australia the charge is Is. Id. ; but in Australia itself the charge is sd. Mr. PEARCE : Transmitted to any part of Australia. Mr. SAMUEL : The charge is sd. as compared with the charge of less than Id. a word for inland telegrams from any portion of Australia to any other portion. Mr. Pearce tells me the rates vary, but in no case are they more than Id. a word. If Australia would reduce her charges for handling the Pacific Board's traffic to her ordinary inland rate she would at once reduce the cost of cablegrams between this country and Australia by 4d. a word, which is very nearly equal to the. reduction which is contemplated by halving the Atlantic rates. In New Zealand the inland charge is only a penny a word. Of course, New Zealand is a somewhat smaller country, but still there does seem to be a large discrepancy between the New Zealand charge of a penny and the Australian charge of sd. which very largely contributes to swell the present rate of 3s. a word. Possibly Mr. Pearce will give that question his attention with his colleagues on his return. I cannot pledge His Majesty's Government to support the laying of a Stateowned cable across the Atlantic either now or at a future time, still I do not know whether the Conference would be prepared to accept an alternative resolution in the following form : " That, in the. event of considerable reductions in the Atlantic cable rates not being effected in the near future, it is desirable that the laying of a State-owned cable between the United Kingdom and Canada be considered by a subsidiary Conference." Sir WILFRID LAURIER : That is quite acceptable.