26 November 1896.]
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The Marquess of TWEEDDALE, Mr. H. A. C. SAUNDERS, and Mr. F. E. HESSE.
[Continued.
34
PUBLIC RECORD
OFFICE
Reference :-
C.O. 885
6
ALLY WITHOUT PERMISSION OF THE COPYRIGHT PHOTOGRAPH-NOT TO BE REPRODUCED PHOTOGRAPHIC-
PUBLIC RECORD OFFICE, LONDON
EIGHTH DAY.
THURSDAY, 26TH NOVEMBER 1896.
PRESENT:
THE RIGHT HONOURABLE THE EARL OF SELBORNE, Chairman, Presiding.
The Hon. Sir DONALD SMITH, G.G.M.G. The Hon. Sir SAUL SAMUEL, K.C.H.G., C.B. The Hun. D. GILLIES.
The Hon. A. G. JONES, P.C.
Mr. G. H. Murray, C.B.
Mr. W. II. MERCER, Secretary.
The Marquess of TWEEDDALE, Mr. H. A. C. SAUNDERS, and Mr. F. E. HESSE, called in ; and Examined.
Chairman.
1737. LORD TWEEDDALE, I think you are Chairman of the Eastern Extension Telegraph Company? (Marquess of Tweeddale.) That
is 80.
1738. Can you tell the Committee what amount of capital you represent?~~(Mr. Hesse.) The capital of the Eastern Extension Telegraph Company?
1739. Yes. About three millions sterling 2 millions of share capital, 300,000 of 4 per cent. debenture stock, and 200,000 of 5 per
cent. debentures.
1740. And what interest is your capital paying at this moment? We are paying 5 per cent. dividend upon the share capital and 2 per cent. bonus. (Marquess of Tweed dale.) The promise to our shareholders always has been that we will pay them, or endeavour to pay them, a regular 5 per cent. dividend, and that if we distributed anything over and above that it should take the form of a bonus. consequence we have for the last five or six years paid honus of 2 per cent. over and above the dividend.
#
In
1741. Would you describe to the Committee the nature and the extent of your original single line to Australia?—I have got a map here. The first section is Madras to Penang, thence to Singapore, thence to Java, and thence to Port
Darwin.
1742. In what year was that line first opened for traffic?-(Mr. Hesse.) In 1872.
1743. That was a single line ?~(Marquess of Tweeddale.) A single line; yes.
1744. And how was the money for that line found? Oh, we appealed to the public for it.
1745. Was any assistance given to that line by any Government? - No.
1746. Did that single line prove to be an adequate service?—Adequate?
1747. Yes. In one sense I should say it was adequate, in the sense that that cable was sufficient to convey the traffic when opened, but wholly in
Chairman-continued.
adequate from the point of view of a continuance of service.
1748. In fact that line, like every other line, was liable to break down?-Certainly; espe- cially in those seas.
1749. Where were the breakdowns most m- merous-It broke down from various causes, (Mr. Hesse.) They were spread all over the system. We were very much interrupted in the Bay of Bengal, milway between Madras and Penang, and between Penang and Singa- pore there were frequent interruptions, and in the Java seas also. (Marquess of Tweeddale.) Then we suffered for a long time from a small insect which injured our cables and necessitated our lifting them and re-covering them with a metal covering. The teredo is well known, and it is so small as to be hardly visible. (Mr. Hesse.) They would make a hole in the insulator as small
as
↑
Я
a pin's point, but sufficient to let out the electric current. (Marquess of Tweeddale.) We suffered from that for considerable number of years, and the cable most exposed to that
covered with metal covering.
1750. The result was that your service was not satisfactory either to yourselves or to the That public? (Marquess of Treddale.)
18 80.
How 18
1751. What was the next step that took place in the development of your line?--Duplication. We duplicated the line from Madras to Penang. (Mr. Hesse.) At the request of the Australasian Governments, and upon a subsidy arrangement, we duplicated the cable between Penang and Port Darwin. (Marquess of Tweeddale.) The terms of that arrangement were that we obtained a subsidy of 32,400% for 20 years to enable the Eastern Extension Company to duplicate the cable between Penang and Australia, at that time a single line, although at that time more than equal to carrying the traffic.
1752. What Governments were concerned in paying this subsidy ?-(Mr. Hesse.) The Govern-
Chairman-continued. ments at first were New South Wales, Victoria, and South Australia, and later on other Govern- ments came into the subsidy arrangement.
Sir Saul Samuel.
1753. Except New Zealand and Queensland? (Marquess of Tweeddale.) Not the Queensland. (Mr. Hesse.) The Queensland Government never joined it.
Chairman.
1754. In what year was that subsidy begun? -In 1880, or eight years after the communi- cation was opened.
1755. Then that subsidy of 32,000 for 20 years is still running ?—Is still running.
1756. And all the Australasian Governments have taken a share in that subsidy except Queensland ?—No; New Zealand has not.
1757. All except Queensland and New Zea- land? Yes.
1758. Has the Imperial Government taken any share in that subsidy ?-No. (Marquess of Tweeddule.) No. (Mr. Hesse.) Although the Imperial Government have the benefit of half rates for their official messages; that is one of the terms of the subsidy agreement.
1759. What was the next step? Then we triplicated the communication between Australia and Java, by connecting West Australia direct with Java. We did this on account of the two Port Darwin cables (the cables between Java and Port Darwin) being frequently in- terrupted. That was principally by volcanic
action.
1760. What year was that? That was about seven years адо.
1761. In 1889? In 1889.
1762. And did you receive any further subsidy on account of that line?-No, nothing.
1763. That line I see landed at Roebuck Bay? Roebuck Bay.
1764. And there joined the land system of West Australia?—Yes.
1765. Is that the last addition that you have made to your Eastern Extension ?—Yes, the last between Australia and India.
1766. Of course, that is all we are considering, So that the line is triplicated now between Australia and Java?-Yes.
1767. And from Java to Singapore ?-It is duplicated.
1768. And from Singapore to Madras ?-From Singapore to Penang is triplicated. (Marquess of Tweeddale.) The section from Singapore to Penang is triplicated. (Mr. Hesse.) And dupli- cated between Penang and Madras.
1769. Have you received any other subsidy beyond this 32,000 a year, which will expire in the year 1900?-We received a small subsidy from the Tasmanian Government for connecting Victoria with Tasmania many years ago, before we connected Australia, and we also received a subsidy from the New South Wales and the New Zealand Governments for connecting New South Wales with New Zealand.
1770. Can you state how much those subsidies are? The Tasmanian subsidy was 4,2001. a year.
Chairman-continued. 1771. And when did that commence ?-That commenced in 1868.
1772. And that still continues? It still continues.
1773. Is there any term fixed? It was an indefinite term, but at the end of the first 20 Government for another 20 years; a definite years the Company arranged with the Tasmanian
period of another 20 years.
1774. So that that, at any rate, holds good till the year 1908 ?—Yes.
1775. And what is the subsily you received for the line from New Zealand to New South Wales? £7,500 a year; that was for 10 years only.
1776. And when did that commence?-That commenced in 1876.
1777. Then has it been reuewed since ? No we tried to get it renewed for a further period of 10 years, but failed.
1778. Then that subsidy has dropped ?—That has dropped. The only subsidies we get now are the 32,400, a year, and the 4,2001.
1779. Could you tell the Committee what interruptions have occurred separately on each of your three cables during the last five years? -We can give you the total interruptions. There was an interruption in 1883 for 12 days, and in 1888 for 31 days, and for nine days in
1890.
1780. That, I understand, is an interruption of all the cables sinultaneously?—Yes.
1781. But what I should like to have for the information of the Committee is, what the separate interruptions have been, because unless we know that it is no guide as to the liabilities to interruption of a single line. We can give that, and will supply it. (Marquess of Tweeddale.) Oh, yes, of course. (Mr. Hesse.) But, of course, an interruption between Madras and Penang would interrupt the communication; the breakage might not be between Java and Australia.
1782. Certainly. If you could kindly send in a list of all the interruptions in the last five years, we will say from between Madras and Australia, on each line separately, it would be most useful. Certainly; we shall do that with pleasure.
1783. In a message on the Direct line from London to Australia, how many repeating stations would there be in the course of ordi- nary working?-About eight or nine repeti-
tions.
1784. And what, as a matter of practical ex- perience, is the time that a message usually takes in going?—On an average from two to three hours; many messages go through in an hour and a-half, or even in less time,
1785. And what is the existing tariff to Aus- tralia?-(Marquess of Tweeddale.) Four shillings and ninepence.
1786. Four shillings and ninepence a word?- Four shillings and ninepence. It was reduced on the 1st May 1891 from 9s. 4d. to 4s., under an arrangement by which certain of the Australasian Governments agreed to make up to the associated companies one-half of any loss arising from the reduction. This loss, however, proved to be
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