PUBLIC RECORD OFFICE
C.O.
Reference:-
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17 PUBLIC RECORD OFFICE, LONDON
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which they assumed would rise to 2,300,000 words in 1902, the Pacific Cable ought to obtain 925,000 words, rather more than, considerably more than one-third, and certainly not one-half. The failure as Sir Sandford Fleming has pointed out has no doubt arisen from the loss of business from the Colonies of Victoria and New South Wales. In other respects the estimates of the Committee have been singularly justified. And I should like to say as to the failure on behalf of the United Kingdom that the traffic that we get from the United Kingdom largely depends upon the attitude of our customers on the other side. Their correspondents here naturally avail themselves of the same route that their correspondents on the other side use; therefore, if there is a failure in any of the Australian Colonies it is followed by an equal failure on this side. I am speaking broadly and roughly, that is the case. I do not known that I need say anything else on the subject of the figures quoted by Sir Sandford Fleming. In respect of the suggestion which has fallen from yourself, can only say I have not had any opportunity of consulting my Board, but it has always appeared to me that the solution to be arrived at in this room could only take one of two forms. one a ruinous struggle for this traffic between the Pacific Cable and the Eastern Com- panies, which would certainly, if not ruin us, be very expensive to both sides; and on the other side, a compromise, under which this disputed traffic might be pooled on some reasonable terms between us.
I think myself that it would be a misfortune if we engaged at the present moment in a conflict which, whatever its result may be, would seriously diminish the profits of the Eastern Companies, and impose a heavy charge on the funds of the Pacific Cable; and, therefore, I should be very much disposed to support your suggestion, Sir, that at any rate, in the first instance, some attempt should be made to arrive at some reasonable solution with the Eastern and the Eastern Extension Companies. I suppose if the delegates to the Conference either went up to those Companies them- selves or entrusted me on behalf of the Pacific Cable Board to do so, in dealing with gentlemen of great ability and singular acuteness, it would be very necessary to reserve a sort of threat, that if we failed to arrive at an agreement we should probably go in with all the means in our power to secure a due share of the traffic. I do not think we should have much likelihood of arriving at any agreement unless we had that force majeure behind our backs.
Subject to that observation I think myself that some reasonable arrangement is possible for pooling the traffic between Australasia and the United Kingdom. It would be attended, it might conceivably be attended, with the advantage that in any pooling arrangement a condition might be imported that, in the event of any failure or breakdown of either route, the traffic should be carried by the other route, without any detraction from the contributions to the pool. If such a provision could be made, and it is not an unusual provision in the telegraphic world, it exists already in the Atlantic Companies, it no doubt would strengthen the position of the Pacific Cable which, as you know, Sir, has only one route to rely upon instead of three routes which are enjoyed by the Eastern; but I think if we are to go any further with your suggestion, Sir, I do not know whether that is the feeling of the delegates-it would be necessary in the first instance for the delegates and myself and the representatives of the Government and myself to consider very carefully what lines we might go upon.
I have thought over the matter myself, and I shall be prepared to make a sugges- tion, but I think it would be absolutely essential before we undertake any negotia- tions to know how far the various contributing Governments were prepared to go.
I am much obliged to you, Sir, for affording me this opportunity of making these few observations, not, I am afraid for my Board but for myself, and I have only made them in the hope that I may support your view of bringing this Conference to a satis- factory conclusion.
I should like, in exculpation of my Board, to say that I, per- sonally, have long felt, and I know some members of my Board have felt, that we are open to a charge of some remissness for not having taken stronger efforts in Victoria and New South Wales already to compete with the Eastern, and my excuse is, for whatever it may be worth, that I was in hopes that this Conference was going to meet a year ago, and that since then it has been perpetually adjourned for com- paratively short periods, and I did not think that I was justified in suggesting to the Board an expensive and internecine struggle when there was a probability, Sir, that,
under your Presidency, the matter in dispute would be arranged in a friendly manner. That is the excuse of myself, as Chairman of the Board, and I think of the Board, for not taking any more vigorous measures in the past.
The CHAIRMAN: Everyone who has spoken hitherto, it seems to me, has some- thing of agreement upon one matter, at any rate, namely, that the principal question for discussion is, what is the due share of traffic which should be divided? Obviously the course of setting up an internecine competition between the Company and the Cable is always open to us, but surely it ought to be the very last resort, because manifestly it would produce ill feeling and heavy monetary loss to all concerned. That is in the background, and is, after all, a very cogent weapon if we can agree upon its use in the ultimate resort.
I quite agree myself that, before entering into any Conference with the Telegraph Companies, we should, at any rate among ourselves, recognise that there is that ulti- mate resort. But Sir William Mulock, in his first observations, I think more or less indicated some such solution as has been proposed when he said that these Agreements in his view should not be ratified except upon terms. What the nature of those terms is to be is for discussion, and no doubt, as far as I gather from his observations, upon the result of such discussion would depend his vote and attitude upon the matter. And Sir Sandford Fleming also laid great emphasis upon due share of traffic. That is the question, and that can be arrived at in other ways, such as by an arrangement made for å pooling Agreement, so as to secure a fair and reason- able fulfilment of the partnership undertaking. I would suggest that we adjourn for a week, and that Sir Spencer Walpole endeavours, with the representatives of the Colonies, to arrive at some terms for a pooling Agreement which would be satis- factory to them, and endeavour to arrange that afterwards with the Telegraph Company. Do you think a week is sufficiently long?
It
SIR WILLIAM MULOCK: I hardly know what to say upon the subject. might be regarded as an act of weakness on the part of this Conference in a round- about way to make overtures to the Companies. I would think it would be better tactics in the first instance to understand what the different Governments are pre- pared to do. The Cable has to be taken care of. Are the different Governments prepared to stand by the Cable at all costs; are they all going to be loyal to it, or are they going to weaken it! We have the remedy in our own hands. The different Governments have the command of the position, and they do not require to go hat in hand to any Company, though I am quite willing. I realise the expediency always of being considerate towards even conflicting interests. At the same time the different Governments command the situation, and they have the remedy in their own hands. If, with a knowledge of that situation, any rival Company chooses to approach us, then we ought to give a respectful consideration to any suggestions they may make. For example, I will show you where I think our position is impregnable; assuming always that the Governments are willing to avail themselves of their vantage ground. Take Australia, the whole of Australasia, and the whole of the United Kingdom, they control practically the traffic of the telegraph. Take the United Kingdom, I suppose the cablegrams are sent in to the Post Office, for instance, and the service is first performed over the land line owned by the Government. Is not that so?
Sir SPENCER WALPOLE: No, it is not so.
Sir WILLIAM MULOCK: How is it done then?
Sir SPENCER WALPOLE: Practically the great mass of the cable work is collected direct by the Companies.
Sir WILLIAM MULOCK: I am not asking about the collection; I am asking, and we are discussing about the transmission.
Sir SPENCER WALPOLE: The transmission is made by the Companies.
Sir WILLIAM MULOCK: Who owns the wires?
Sir SPENCER WALPOLE: The Companies.
Sir WILLIAM MULOCK: Do the Cable Companies own the wires all nrough the United Kingdom?
Sir SPENCER WALPOLE: NO; I thought you meant the great mass of the traffic.
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