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PARLIAMENTARY DEBATES.

SESSION 1904.

(FIRST SESSION OF THE SECOND PARLIAMENT.)

VOL. XXII.

(Comprising the period from 28th September to 27th October, 1904.)

SENATE AND HOUSE OF REPRESENTATIVES.

Printed and Pr

F.13303.

ied for the GOVERNMENT of the COMMONWEALTH of AUSTRALIA by
ROBT. S. BRAIN, Government Printer for the State of Victoria.

1904.

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not ask, and have never asked, for more than that. I have always recognised that the Eastern Extension Company, being the pioneer company, has spent a lot of money on the development of its Australian business, and that it came here on the invitation of the States. Therefore, it is impossible for us to say to that company that we will bundle it out of Australia, and not allow it to continue its cabling traffic.

Senator HIGGS.-That invitation was probably prompted by the company itself.

Senator STANIFORTH SMITH.-But we are entitled to a fair share-I should say to a half share-of the cabling business of the Pacific Cable, and we could easily get that without allowing ourselves to be swallowed by the Eastern Extension Company. The working expenses of the Pacific Cable are only about one-third of the working expenses of the Eastern Extension Company. The working expenses of the Pacific Cable for the year ended 31st March, 1904, were £54,000. I have no later balance-sheet of the Eastern Extension Company than that dated December, 1902. But for that year their working expenses were in round figures £139,000.

Senator PLAYFORD.-Does that include India?

Senator STANIFORTH SMITH.-No; but the working expenses of the company have been increased since then, because they have opened new offices, and have an army of canvassers, by whose means they are endeavouring to induce people to send their cables via the Eastern Extension Company. That company, in spite of the fact that it enjoys more than two-thirds of the total cable traffic of Australia, now complains that its Australian cables are run at a loss. When Mr. Hesse, the general manager, and the Hon. Mr. Peel were here they told me that the cables running to Australia were worked at a loss. But whose fault was that? The company deliberately reduced the cabling charges to 3s. a word, at which rate, I believe, the traffic will not pay. The Pacific Cable Company did not make the reduction. It was the Eastern Extension Company that did it. Apparently, 3s. a word is not now sufficient to enable both companies to pay. The Eastern Extension Company is increasing its working expenses in order unfairly to filch from the Pacific Cable the traffic that it is legitimately entitled to. The Pacific Cable is admitted to be one of the best laid cables in the world. It was opened on the 8th December. 1902, and from that day to this there has

not been a single interruption of the line. There are, according to a return I saw, fewer mistakes per message made on the line than on the Eastern Extension Company's line. The Pacific Cable is less liable to interruption, because it does not cross any volcanic belts, as do the Eastern Extension Company's cables.

Senator PLAYFORD.-There is no volcanic belt between here and South Africa.

Senator STANIFORTH SMITH.-No, but two of the company's cables stretch over some of the worst volcanic country in the world, and there are continual interruptions. The Pacific Cable is the quickest means of communication between Australia and the old country. As a proof of that statement, I may say that, when the last great cricket match was being played between the English and Australian elevens in Sydney, the result was sent home via the Pacific Cable in three and a half minutes, which is a world's record when the lines have not been cleared for any particular message. It is a record which I believe the Eastern Extension Company has never approached, unless it has cleared all its lines for a message. The great difficulty with the Eastern Extension Company's messages is that after 12 o'clock messages sent from Australia by that company are delayed at Singapore by the enormous amount of Asiatic traffic, which clogs the lines for hours at a time. When

messages with regard to important horse races, or cricket matches, in Australia are sent home, in order that they may reach England as soon as possible, they are, I believe, sent by the Pacific Cable. I am saying this in order to point out that the Pacific Cable offers equal, if not superior, advantages to those offered by the Eastern Extension Company, while it is worked at. about one-third of the cost. Yet it is proposed that we should have a joint purse, so that the enormous loss on the Eastern Extension Company's business should be borne by the people of Australia. If there were a joint purse, the loss to Australia on the Pacific Cable would be infinitely greater than it is at the present time. Any one who looks at the facts must see that that must be the case. All that I desire is that the same facilities shall be granted to the Pacific Cable as are granted to the Eastern Extension Company, and that the people of Australia shall have a perfect right to send their messages by which cable they please.

Senator PLAYFORD.-If people do not state which cable they wish their messages to be sent by, they are now sent by the Pacific Cable.

Senator STANIFORTH SMITH.-People can say which cable they desire to have their messages sent by.

Senator PLAYFORD.-And they are sent by the Pacific Cable if people do not say which.

Senator STANIFORTH SMITH.-But almost in every hotel in Australia at the present time there are bundles of telegraph forms placed there by agents of the Eastern Extension Company, upon which forms there is printed in not too large letters, "via Eastern Extension Company." Senator PLAYFORD.-That is business, is it not?

Senator STANIFORTH SMITH.-It is not unfair for the Post Office to send messages by the Pacific Cable if the Eastern Extension Company adopts such tactics. What I should like to see is an equality of opportunity between the Pacific Cable and the Eastern Extension Company in allowing people to send by whatever line they please. That would be a fair deal. But if the Eastern Extension Company is going to keep open offices, and go to an enormous expense to attract business, and if it is going in for cut-throat competition, which will necessarily increase our working expenses, we have a simple remedy, and one which I think would be very effective. Article IO of the Berne Convention of 1903 allows each State in Europe to fix differential terminal and transit rates. That applies equally to Australia. Australia can be divided into different zones with different terminal rates. In fact, at the very inception of this Pacific Cable, the British authorities wrote out suggesting that we should have differential terminal rates in each State. Now, if the Eastern Extension Company persists in its present policy, all that we have to do is to divide Australia into two zones- -Western Australia and South Australia being in one, and Queensland, Victoria, Tasmania, and New South Wales being in the other. Senator PLAYFORD.--Rather lopsided

Queensland, or New South Wales, via the Eastern Extension Company, there would be a fivepenny terminal rate in the first zone, and a fivepenny rate in the second zone. That would mean the payment of tenpenny terminal rates on a message via the Eastern Extension Company, and a fivepenny terminal rate via the Pacific Cable. I metion this to show what our powers are, and what we ought to do if the Eastern Extension Company adopt the tactics of unfair competition.

Senator PLAYFORD. Where is the unfairness?

Senator STANIFORTH SMITH.-In going to enormous expense in opening offices when they have the same facilities as the Pacific Cable Proprietary has of receiving messages through the Post Office. The Eastern Extension Company wishes to put the Pacific Cable Company to the same expense in opening new offices, and employing canvassers.

Senator PLAYFORD.-For the convenience of the public.

Senator STANIFORTH SMITH.— Convenience be hanged! Where is the convenience to the public? What inconvenience do the public suffer when they can send a telegram from any part of Australia to the old world by means of the Post Office? I am concerned with the interests of the people of Australia, and am endeavouring to conserve those interests. I admit that to adopt such a zone system would me mean a great loss to South Australia, which at the present time reaps an enormous benefit on every cable word, amounting to considerably over a million words per annum. South Australia receives 4d. on every cable word that is sent via the Eastern Extension Company.

Senator PLAYFORD.-The Pacific Cable has caused us a loss of tens of thousands of pounds.

Senator STANIFORTH SMITH.-I admit that. But, as the eastern States assisted South Australia to maintain the telegraph line from Adelaide to the Northern Territory, it would be equally competent for the Commonwealth to contribute towards the loss of revenue to South Australia on account of the decrease in her Senator STANIFORTH SMITH.-I cable revenue. We must have a fair am merely explaining the powers we can division of the existing traffic of Ausexercise if the Eastern Extension Company tralia between our Own British Cable, adopts unfair tactics. What would be the and the Eastern Extension Company; result? There would be a fivepenny ter- and it is just as well to know what minal rate in each If a person zone. and if powers rights the ed to send a message from Victoria, Eastern Extension Company will persist

zones!

Our

are

in opening offices in the various States, and in going to enormous and unnecessary expense in granting facilities which are not required by the people.

Senator PLAYFORD. The people use them at all events, and that shows that they are necessary.

SMITH.

Senator STANIFORTH They use them, certainly. If I came with a four- in - hand drag and of fered to drive Senator Playford to Parliament House every day, his acceptance would not prove the necessity of the offer. Every reasonable facility is given by the Post Office; and Victoria is bemoaning a loss of £10,000 a year, which could be prevented, while the internal revenue could be enormously increased by sending onehalf of the messages by the Pacific route. New South Wales would benefit to a much larger extent, and Queensland would divide with New South Wales and Victoria the whole of the advantages from the terminal

rates.

Senator PLAYFORD.-Who is going to bear the loss?

are being made by the Eastern Extension Company to make the former unpayable. They are conveying messages at a loss, and sacrificing their own profits in order to make the Pacific Cable so burdensome to the eastern States that the control of the rival line may be handed over, and the old monopoly re-imposed. I am sorry that the leader of the Senate was not able, in consequence of the short notice, to give a reply to my question as to the instructions sent to the representative of the Government at the Conference to be held in London in November next. This Parliament, and the people of Australia, who own one-third of the Pacific Cable, have a right to know what has been communicated; and I hope that when Parliament meets again the Attorney-General will be able to lay on the table information which will show that the instructions tend to conserve the interests of Australia, and provide for fair play between the partners in this great enterprise.

Senator HIGGS (Queensland).-I am glad that Senator Smith has brought up Senator STANIFORTH SMITH. this matter, and I hope the leader of South Australia; but it would be quite com- the Senate will allow his Australian nationpetent for the Commonwealth to contribute alism to guide him in dealing with it. If towards any loss sustained by that State there is one thing to admire about the leader in the erection of the telegraph line from of the Senate it is his Australian sentiment, Adelaide to Port Darwin. I want to be to which he now has an opportunity to give perfectly fair to every State. I object to practical effect. The suggestion which apthe Eastern Extension Company monopoliz-peared in last Monday's issue of the Meling two-thirds of the traffic, and using every means consistent with honesty-because I never accused them of doing any business that was not honest-for the expansion of their business. But the Eastern Extension Company are using their influence as a private concern to make the Pacific Cable unpayable, and suggestions are made in influential quarters that that company should be allowed to acquire the Pacific Cable, and thus clinch their monopoly in Australia.

Senator GUTHRIE.-That is "private enterprise."

am a

Senator STANIFORTH SMITH.-The Pacific Cable is one of the greatest socialistic enterprises the world has ever seen. Four nations have come together in a joint commercial undertaking, and I desire to see that undertaking a success. I Socialist to the extent that I believe in nationalizing dangerous monopolies, such as that which the Eastern Extension Company have enjoyed in Australia for thirtythree years. The Pacific Cable has broken that monopoly, and most strenuous efforts

bourne Age is no doubt prompted by the self-interest of that and other newspapers which control the Cable "ring."

Senator WALKER.-Surely the honorable senator does not think that the Melbourne

Age is selfish!

credit for the work it does.
Senator HIGGS.-I give the Age every
No doubt
in the interests of the people of Victoria,
that newspaper does a great deal of good
and of the Commonwealth generally, and
more particularly in the interests of the
people of Melbourne, by the publication of
articles regarding the adulteration of food,
and matters of that kind.

Senator STYLES.-The butter bonus!

Senator HIGGS.-As the honorable senator interjects, the Age has done good work in connexion with the doings of the people who control the butter business.

Senator FINDLEY.-The Age advocated the appointment of a Royal Commission, and then desired that the proceedings of the Commission should close before the business was half over.

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