amongst others, the French, who had now proposed that a Congress should meet for the sole object of considering this important question. The Company fully expected that good results would arise from such eventual legislation, but nevertheless, the Directors must continue to keep np the efficient state of their two
Repairing Steamers, which have done good service during last year.
The new Steamer, the "Store Nordiske," had left for China with a fall cargo of Cable, part being for the Company's own use, part for the completion of the Russian Saghalin contruct. Next, in the month of September, this ship had laid a Cable for Chinese account across the Yangisekiang, near Chinking, and she has subsequently been employed in effecting the different repairs which became necessary in the Chinese waters. On the arrival of the "Store Nordisko" in China, the "H. C. Örsted" returned to Europe with a cargo of Tea, and finally arrived in Copenhagen in November; shortly afterwards she had been chartered for repairs to be effected near Bilbao, for account of the Direct Spanish Telegraph Company; which work had been very successfully
done.
Traffic-Owing to the interruptions of the Cables in the far East, the Extra-Euro- pean traffic had suffered; not so the European traffic, as the interruptions did not affect the regular business owing to the Company's many duplications, and on the whole, it would be found that the receipts were about the same as those of the previous year.
The Telegraph in China.-The most important event of the year had been the development of Telegraphy in China. The construction of the extensive Land Line between Shanghai and Tientsin, which the Company had referred to in last year's Report, had been commenced on the 16th June, and completed on the 28th November. The Line had been erected by two columns of engineers and workmen, one column working from Tientsin south towards Shanghai, the other, from Shanghai north towards Tientsin, and meeting half-ways, The first Telegrams were exchanged on the 29th November, after which, the Chinese Government, in order to accustom the public to the Telegraph, carried their messages free of charge for a month.
Eight employés of the Company had been engaged for the Chinese service, in the different Stations, of which the most important were Shanghai, Sooclow, Chinking and Tientsin. The line consisted of two wires, of which one was reserved exclusively for the through traffic between Shanghai and Tientsin, whereas the other was used for the local traffic of the other stations.
This great artery for the Telegraphic correspondence in the North of China, had already been extended by the establishment of a line from Chinkiang to Nankin, the old Capital of the Chinese Empire. This line would probably be extended along the Yangtsekiang to Hankow, the largest and most important commercial town of Central China.
In the South of China, the introduction of Telegraphs would also commence by the establishment of a line from the most important Southern Town, Canton, to the flourishing British Colony, Hongkong. The Company had, on the 25th March, signed a contract for the
supply of all the materials required, and for the supervision of the crection of the line, the length of which is about 100 English miles. When the line is completed and ready for the opening of traffic, some of the Company's staff will be engaged for the traffic service.
If the Company had thus succeeded in taking such an active part in the development of the Telegraph in China, it had mainly been owing to the confidence in the Company shown by the Chinese Government, and notably by Li-Hung-Chang, the Viceroy of Tientsin. This eminent Statesman, who has added to his other dignities that of an appointment as Imperial Commissioner of Telegraphs for the whole of the Empire, had, under date of the 8th June, 1881, granted the Company a concession giving them a perpetual monopoly for the existing Cables in China belonging to the Company, and another concession by which the Company had obtained a guarantee that no other Company or person will be allowed for the next twenty years to land Cables in any part of China. During this same period of twenty years the Chinese Government had further undertaken that neither would they themselves, nor would they allow other parties to establish Land Lines in China which might compete with the Company's Cables. Finally, the Government had given the Company the preference in the competition for any contracts which they might wish to make for the construction of Telegraph Lines of their own.
The Clairman said that he could not finish this part of his remarks with reference to the Company's business in China during the past year without saying that the great results obtained were principally owing to the labours of the Managing Director, Captain E. Sucnson, and to the manner in which he had conducted these negotiations, but great thanks were also due to the Company's leading Officers in China for the ability shown on this occasion, and in fact all members of the Company's staff engaged in this business had done their best to further the interests of the Company. The Directors did not therefore hesitate to propose that the Company's contribution to the Pension Fund of the Staff should for the past year be increased to Kr. 20,000 (£1,111 2x. 3d.), about the double of previous years.
Finally, the Chairman remarked that he regretted to find that the advantages gained in China by the Company had given rise to a certain feeling of dissatisfaction and jealousy amongst persons of other nationalities residing in China, and that even diplomatic assistance was said to have been obtained in order to oppose the Company's interests. Hitherto the latter had been without avail, and no doubt the antagonistic feelings would disappear as soon as it became evident that the privileges accorded to the Company resulted in advantages to the opponents themselves, and to the world at large.
The Company had also had their attention fixed upon the advantage of the introduction of the Telephone in China, and had therefore made arrangements with the Oriental Telephone Company, Limited, jointly to carry ou this business. Telephone Exchanges were now already established in Shanghai and Hongkong.
In referring to general topics, the Chairman first of all referred to the great loss the Company had sustained by the death of Mr. H. J. Pallisen of St. Petersburg. Mr. Pallison had been intimately connected with the Company since its formation, and had always, as its repre- sentative in Russis, taken the greatest interest in all its undertakings. He would be succeeded
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