POSTAL AND TELEGRAPHIC SERVICE. 285 



I 



been of little use but for the enterprise of the South Australian 

 (Tovernment in constructing a land line from Adelaide to Port Darwin, 

 a distance of 1,978 miles, at a cost of over half a million. Later on a 

 third cable was laid by the Eastern Extension Company from Roebuck 

 Bay, Western Australia, to Java. 



The tariff for these cables was found so high (in I he case of New 

 South Wales being Os. 4d. per ordinary word, and 2.s. Hd. ])er word 

 for press messages), that at a Conference of Postmasters-(ieneral, hehl 

 in Adelaide in 1890, negotiations were opened up with the comjiany 

 with a view to substantial reductions. These negotiations resulted in 

 an agreement being arrived at at a Conference held at Sydney in 

 March, 1891, for a reduction of the cable rate to 4s. per ordinary word 

 and Is. lOd. for press messages, the agreement providing that the 

 company would share a half of any loss of revenue consequent on the 

 reduction, the contributing Colonies bearing the other half on the 

 basis of population, and South Australia herself and the other 

 Colonies agreeing, on the same basis, to make up the South Australian 

 territorial revenue to the same amount as previously. 



The reduced rates came into operation on the 1st May, 1891, but 

 the financial results therefrom proved disastrous. During the first 

 year New South Wales had to pay under the guarantee a sum of no 

 less than £11,000, in addition, of course, to its share of the subsidy, 

 which is about £13,000 per annum. A short Conference was accord- 

 ingly held at Melbourne in August, 1892, to consider the position, and 

 it was thereupon decided to raise the rate on ordinary messages to 

 4s. 9d. a word, and although even the higher rate produced a loss, 

 this has gradually lessened, and the year ended March last resulted in 

 no liability under the guarantee. 



New Zealand and Tasmania are connected with Aiistralia by sub- 

 marine cables, landing at Sydney and Melbourne respectively. In 

 connection with the first cable to New Zealand — laid in 1876 — a 

 subsidy of £7,500 per annum was paid by New Zealand and £2,500 by 

 New South Wales for ten years. This agreement terminated in 188G, 

 after which the subsidy ceased. 



A duplicate cable was laid by the company from the terminal point in 

 Sydney — La Perouse — to the New Zealand terminus at Nelson in 1890. 



As in the case of the European tariff, that to New Zealand was con- 

 sidered high, and was reduced in 1893 from 6s. to 2s. 6d. per 10 words, 

 the company agreeing to bear one-third of the loss. New Zealand one- 

 third, and the other contributing Colonies one-third, on the population 

 basis. 



The Tasmanian cable is subsidised under agreement with Victoria to 

 the extent of £4,200 a year, the other Colonies sharing on the popula- 

 tion basis. 



A cable was laid by a French Company in 1893 from Bundaberg, a 

 port in Queensland, to New Caledonia, in connection with which this 

 Colony guarantees £2,000 a year and Queensland alike sum. 



The foregoing is a brief statement of the means by which Austra- 

 lasia is kept in touch by submarine cable with the rest of the worhl. 



Low as the rates are thought to be to and from Australasia, it is 

 considered by many persons that the time has arrived for still further 

 cheapening them, and there is, moreover, a strong desire in many 



