PUBLIC RECORD OFFICE
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TLC.O.
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17 PUBLIC RECORD OFFICE, LONDON
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Sir SPENCER WALPOLE: If it pays us it will pay them.
Sir WILLIAM MULOCK: Instead of pooling the gross amounts, pool the nett
amounts.
Sir SPENCER WALPOLE: The nett amounts of the two companies are quite different; the Eastern Extension Telegraph Company's nett amount is 2s. 7d.; they carry the message the whole way over their own lines. They have no pays-out to Canada and the Atlantic Companies.
Sir SANDFORD FLEMING: The objection raised by Sir William Mulock has no doubt a good deal of force, and for that very reason it would seem to me that the arrangement should be for a limited period. I prefer seeing it annual, so that if any. thing of the kind arose the arrangements could be changed. I can with difficulty see the possibility of the Company throwing all their traffic this way and making us carry it. They would have no great object. They must man their lines with operators; they would do their share no doubt. You will bear in mind that I am not authorised to support pooling, but I think that my Government might approve an arrangement for the division of the traffic into equal parts.
Mr. PEMBER REEVES: I hardly think that this Conference is altogether adapted or likely to have the time to settle the details, either of fighting the Eastern Exten- sion Telegraph Company, or of pooling with them. I think that there are five divisions of work before the Conference; one is to come to an understanding with the Australian Government about the two Agreements, one of which should be abrogated, the other confirmed as modified; the second point will be to give the Pacific Cable Board authority to fight the Eastern; the third point will be to insist upon getting the same privileges; absolutely we must have that before we can get any further; an absolute final and conclusive assurance from the Common- wealth Government that we shall have the same privileges granted to us as the Eastern without qualification. And there is the fourth point, the question of the terminal charges, which has to be discussed, and some principle arrived at; and then the fifth question will be whether this Conference will authorise the Pacific Cable Board to come to a pooling arrangement with the Eastern, if the Board thinks it desirable to do so rather than fight. I may be wrong, but it appears to me those are the beads of the business before us, and that they are rather questions of principle than of detail.
The CHAIRMAN: It seems to me the most immediate question is rather a matter of diplomacy to say whether we shall pass a resolution in the first instance authoris- ing the Pacific Board to enter into competition, or whether we shall arrange to meet them and discuss pooling with them. It is really a question rather of diplomacy as Eastern Extension Telegraph to how we shall best go into a parley with the Company. I think we can make them very fully aware that unless a satis- factory pooling arrangement is come to there must be war, and we have already the assurance of the Australian Government that they will give equal facilities, and we have stated to them in a telegram that we assume that they will give us those facities without qualification, and they have not in any way questioned the assumption; I think, therefore, as regards that point, we may assume that the Australian Government will give those facilities without qualification.
Mr. PEMBER REEVES: I wish I could share your confidence.
The CHAIRMAN: You would rather have the direct question asked and answered I know.
should be justified, Mr. PEMBER REEVES: Yes. I do not feel that
as justified, in considering any or that my Government would regard me arrangement for pooling, unless we had first of all express authority from this Conference to the Pacific Cable Board to fight if it were necessary. That is first; and in the second place, if we had an express assurance from the Commonwealth Government that they would grant the Pacific cable precisely the same privileges as they have granted the Eastern Extension Telegraph Company, or propose to grant them. Those appear to me the two necessary preliminaries.
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The EARL OF JERSEY: You see, Mr. Reeves, as I have stated before, and I repeat again, my instructions are that the Commonwealth Government will give equal facilities and preference to the traffic of the cable, and those instructions have never been withdrawn or altered.
The CHAIRMAN: How would this do as a formal resolution?
"1. The Conference resolves that steps should be taken to amend the Common- wealth Agreement with the Eastern Extension Telegraph Company (1) by inserting express provision excluding the revival of New South Wales Agreement on termination of Commonwealth Agreement, and (2) by substituting in Clause 25, after '1913 the words and no longer,' for all the words at present following that date.
2. Notes that the Commonwealth Government in the meantime undertakes to grant to the Pacific cable equal facilities with the Eastern Extension Telegraph Company without any qualifications.
3. Is of opinion that in the absence of a satisfactory pooling arrangement with the Eastern Extension Telegraph Company, the Pacific Cable Board should be authorised to enter into energetic competition with the Company in Australia.
4. And that the Pacific Cable Board should not enter into any pooling arrangement, except on a basis which would, on the figures of 1904. have increased the nett traffic receipts of the Board in that year by £20,000.
That is really Sir Spencer Walpole's proposal, that on a satisfactory pooling arrangement, £20,000 should have come to the Pacific Board, and that in the future a similar proportion of traffic receipts shall be maintained between the two. LORD STRATHCONA: It would be progressive according to the business. The CHAIRMAN: Quite; progressive as we hope.
Sir SANDFORD FLEMING: Is it proposed to pass that to-day or simply to have it laid on the table for consideration
The CHAIRMAN: I had hoped we might pass it to-day. If we do not progress rather rapidly now, I am afraid that the whole matter will go over till next November.
Sir SANDFORD FLEMING: Then I must object to it.
The CHAIRMAN: Let us take the first. The first, I think, really is putting rather more formally that which we have already determined; you have no objection to that, have you?
Sir SANDFORD FLEMING: No, none at all.
The CHAIRMAN: Has anybody any objection to that? That is the confirmation of the arrangement we have already embodied in the telegram to Australia. And the second is noting formally that the Commonwealth do undertake to yield us equal rights and facilities with the Eastern Extension Telegraph Company. You do not object to that, Sir Sandford, do you?
Sir SANDFORD FLEMING: No.
The CHAIRMAN: Now the third is the resolution of war, which I know will be satisfactory to you, Sir Sandford.
Sir SANDFORD FLEMING: It is the word pooling" that I object to. I do not see the necessity to bring in the word "pooling" at all.
The CHAIRMAN : "In the absence of a satisfactory arrangement as to the division of traffic." Would that do?
Sir SANDFORD FLEMING: Perhaps that would do.
The CHAIRMAN: "Is of opinion that in the absence of a satisfactory arrange- ment with the Company for a division of traffic, the Pacific Cable Board should be authorised to enter into energetic competition with the Company in Australia."
LORD STRATHCONA: Would it be necessary to say "in Australia ”?
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