390
PUBLIC RECORD OFFICE
Reference :-
C.O. 885
6
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
212
DEAR SIR,
PACIFIC CABLE COMMITTEL :
Ottawa, December 28, 1894. REFERRING to our conversation this morning on the subject of the Pacific cable, and more especially on the question of probable revenue.
The point which you rightly considered of importance relates to the sources of revenue, and you asked, upon what grounds I assumed in my estimates that the Pacific cable would obtain You suggested as a one half the telegraph business between Australasia and Europe? possibility, from the fact that the existing lines of telegraph had been long established, that there would be business relations between the Eastern Extension Telegraph Company and the owners of the Australasian land lines, perhaps an understanding or agreement, of such a character as would give the existing cable company exclusive control of European traffic collected throughout the Colonies.
In answer to this I have only to say that the land telegraphs in each one of the seven Australasian Colonies are owned and operated by the Governments under the Departments of Posts and Telegrapha. There cannot be any agreement of the kind referred to at present On the contrary, if the Pacific existing, and there is no probability of one being entered into. cable be established as proposed, through the co-operation of the Australasian Governments with Canada and Great Britain, the Colonies would have a direct interest in the success of the new line, and every telegraph and post office throughout Australia and New Zealand would practically become offices or agencies of the Pacific cable. It is easy to be seen, therefore, that there would be a tendency to send European telegraph traffic collected at these offices (unless specially directed otherwise) by way of the Pacific cable in preference to the old route. There can be no doubt whatever that with the Pacific cable established as proposed on the principle of State ownership, the several Governments at the sources of traffic would It have it in their power to direct telegraph business over the new line as they may desire. does not follow that the power in the hands of the Governments would be unduly exercised to the injury of the Eastern Extension Company. No doubt a division of the traffic would for a time diminish the profits of that company, but the establishment of the new route would stimulate telegraphy above its normal growth, and in a very few years the volume of business would be doubled, so that an equal division would restore to that company as much business as it now controls.
For these reasons, and the additional reason that the Pacific cable will unquestionably command all the telegraph traffic between North America and Australasia, I feel more than warranted in basing the estimates of revenue on half the European-Australian traffic. I feel quite satisfied that the more the question is looked into my estimates will be found moderate, and considerably on the safe side. For my own part I feel perfectly assured that, if the cable be laid as a Government work, the estimates of revenue will be borne out by actual results, as fully as estimates of cost have been verified by the tenders received.
Hon. W. B. Ives,
Minister of Trade and Commerce.
Yours, &c.
SANDFORD FLEMING.
In the foregoing letter I have referred to the Eastern Extension Telegraph Company, and pointed out that its business would be diminished by the successful operation of the Pacific cable. The latter, however, would so stimulate telegraphy that in a few years the proportion of traffic which would fall to the share of the existing line would, I have reason to think, equal the volume of It is a question for the Governments to consider how far business which at present it commands. the company may be entitled to claim that its reasonable profits should be made good meanwhile. I have on all occasions recognised that every consideration should be extended to the company whose enterprise established the pioneer cable to Australasia and first brought the Colonies into telegraphic connexion with the Mother Country.
It is on higher than competitive grounds that a Pacific cable is advocated, and it is impossible to admit that the existence of the Eastern Extension Telegraph must for ever prevent the establish- ment of a national line across the Pacific. The discussions at the Colonial Conferences of 1887 and 1894 go to show that the Pacific cable is demanded not only by the growing requirements of trade and commerce, but as an essential feature in the development of the telegraphic system of the Empire.
DOCUMENTS Bubmitted for the INFORMATION of the COMMITTEE by Mr. SANDFORD FLEMING, July 8th, 1896.
"1. General conditions under which tenders for laying the Pacific cable were invited.-App. A.
2. The tenders received by the Canadian Government and letters connected therewith:—
(a.) Letter from Sir John Pender
October 19th, 1894.
-
(b.)
33
Mr. W. Sharpley Seaton
-
October 19th, 1894.
(c.)
"
the Chairman, Telegraph Construction
Maintenance Company
and
October 19th, 1894. October 20th, 1894.
(d.) Letter and tender of Mr. Francis A. Bowen
Not printed.
Nork. The tenders and letters under this heading are placed in the custody of the Colonial Ofice for reference and not for publication. As they were received by the Canadian Government in the first place, they are to be returned when required.
(e.) Tender of Siemens Bros. X Co.
Fowler-Waring Cable Company
PAPERS,
213
October 20th, 1894:
(f.)
PI
(9.)
3
W. T. Henley Telegraph Works Company
October 19th, 1894. October 19th, 1894.
(h.)
*
India-Rubber, Gutta-Percha, and Telegraph Works
Company
October 19th, 1894.
#
India-Rubber, Gutta Percha, and Telegraph Works
Company
November 22nd, 1894.
נו
India-Rubber, Gutta-Percha, and Telegraph Works
Company
(a.) Extracts from Mr. Fleming's address
(b.)
11
(c.)
memorandum - letter -
(d) Letter of George Johnson, Dominion Statistician, Ottawa
J. M. Courtney, Deputy Minister of Finance,
Ottawa
W. Hepworth Mercer, Colonial Office, London
December 24th, 1895. November 20th, 1894. December 11th, 1894.
July 2nd, 1894.
October 11th, 1893.
July 20th, 1894.
November 29th, 1894.
December 1st, 1894. October 11th, 1894.
App. C.
App. B.
Not printed.
3. Report on tenders by Sandford Fleming
Additional report on tenders by Sandford Fleining
4. State ownership and revenue:-
(e.)
"
(ب)
M
(Advertisement.)
APPENDIX A.
THE PACIFIC CABLE.
-
The Government of Canada invites cable manufacturing contracting and others to state the terms upon which they will be prepared to lay, and maintain in efficient condition, a submarine electric cable across the Pacific from Canada to the Australasian Colonies.
General conditions under which the offers are to be made may be ascertained on application at the Department of Trade and Commerce, in Ottawa, or at the office of the High Cominissioner for Canada in London.
Offers addressed to the undersigned will be received by him until November 1st, 1894,
Ottawa, August 6th, 1894.
MACKENZIE BOWELL,
GENERAL CONDITIONS.
Minister of Trade and Commerce.
1. At the Colonial Conference, held in Ottawa between June 28th and July 8th (inclusive), a series of resolutions were passed relating to the Pacific cable (copies appended). It was resolved, among other things, that immediate steps should be taken to provide direct telegraphic communi- cation between the Dominion of Canada and the Australasian Colonies. At the unanimous request of the delegates present at the Conference, the duty of giving effect to the resolutions passed, and the views expressed. devolved upon the Canadian Government.
2. In order to obtain definite data to enable all the Governments concerned to consider and adopt the best means of carrying out the undertaking, the Canadian Government deems it expedient to invite proposals for establishing the cable, in three different forms, viz. :—
FORM A―The cable to be owned and controlled by Government; to be worked under Government authority, and to be kept in repair by the contractor for three years.
Cable manufacturing contractors to state the lowest cash price for which they will be prepared to supply and lay the cable, the terms and conditions upon which they will guarantee ita permanency, and the annual payment for which they will maintain it in efficient condition for three years after the whole line shall have been completed and put in operation.
FORM B.--The cable to be owned, maintained, and worked by a subsidised Company. The contracting parties to find the capital, establish, work, and maintain the cable in efficient condition, for a subsidy to be paid to them annually for a term of years, by the contributing Governments. The offers to state the amount of subsidy to be paid yearly, and the number of years it is to be paid. The maximum rates to be charged on messages to and from Great Britain and the Australasian Colonies shall be as follows:-Three shillings per word for ordinary telegrams; two shillings per word for Government telegrams; and one shilling and sixpence for press telegrams. The charges on messages between Canada and the Colonies to be proportionate.
FORM C.-The cable to be owned, maintained, and worked by a company under a Government
guarantee.
The contracting parties to find the capital, establish, work, and maintain the cable in efficient condition. The offers to state what guarantee of gross revenue will be required; the difference b-tween gross earnings and the amount guaranteed to be made good each year to the Company by the contributing Governments. The rates to be charged for the transmission of messages to and
0 92683.
E e