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PUBLIC RECORD OFFICE

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Reference :-

C.O. 885

6

PUBLIC RECORD OFFICE, LONDON

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232

PACIFIC CABLE COMMITTEE :

Article 5. The contractors shall connect the said cable houses with the stations at each landing place in a proper and efficient manner to the reasonable satisfaction of the engineer, using for this purpose such length of the surplus cable as may be necessary.

Article 6. The engineer and the contractors shall agree upon the course over which the cable shall be laid, and the positions in which the various types of cable shall be placed; and such agreement shall (unless the engineer consents to the alteration thereof) be adhered to by the contractors as nearly as practicable.

Article 7. Every facility, including batteries for testing, shall be afforded to the engineer and his assistants, to test every part of the cable during manufacture, shipment, and transport. During the laying of the cable the testing shall be in the hands of the contractors, but shall be open to the continual inspection of the engineer or his assistants on board ship and on shore. The principle of testing shall be the same as adopted in laying the Atlantic cable of 1894, or any improvement that may be mutually agreed upon. The engineer shall have the right of inspecting the charts, log, and observations taken during the laying of the cable, and also of having communications on the business of laying the cable forwarded from the ship to the cable houses on shore, and vice versû, through the cable at reasonable times while the same is being laid, and to any information he may require which is in the possession of the contractors as to the position and speed of the paying-out ships, and other details relating to the operations.

Article 8. The contractors shall provide victualling and accommodation for the engineer and his staff (not exceeding in the whole four persons) on board the vessel or vessels during the laying of the cable, and until the return of the expedition.

and

Article 9. The company shall, at their own expense, and in due time, obtain all Government and other authorities, way leaves, and other easements required for landing the cable, and connecting and procure the same with the cable houses and the stations at and permit the contractors to enter upon any land required for the purposes of this contract.

Article 10. The contractors shall effect insurances on the cable until laid against fire and river and sea risks by policies, and shall transfer and deliver such policies to the company to the full amount of the payments from time to time made to the contractors.

Article 11. The company shall pay in London to the contractors, for the works and matters hereinbefore under taken by the contractors under this contract, the total sum, or contract price,

of £

Article 12. The said contract price shall be paid at the times and in manner following, that is to say :-

() £

( ) £

500

( ) £

( ) £

upon the execution of this contract.

on the engineer's certificate of the manufacture in accordance with this contract of nautical miles of cable.

on the engineer's certificate of the manufacture in accordance with this contract of a total length of 1,000 nautical miles of cable.

on the engineer's certificate of the completion of the manufacture and shipment of the whole of the cable, and that the condition thereof is in accordance with this contract.

( ) £ on the engineer's certificate of the successful laying and completion of the cable in accordance with this contract, it being agreed that if the amount due under the preceding paragraph() shall have been for any cause withheld, it shall become payable on the granting of this certificate.

() E the balance of the contract price, upon the engineer's certificate mentioned in

Article 14.*

Article 13. The engineer of the company accompanying the expedition, shall examine and test the cable when laid between the respective cable houses, and as soon as practicable thereafter telegraph to the engineer of the company in London, and write to thein the results of his examination and testing, and shall forthwith deliver a copy of the telegram and letter to the contractors' engineer in charge (who is hereby appointed agent of the contractors to receive the same), and upon the receipt by the engineer in England of such telegram or letter, he shall give his certificate that the section therein referred to has been successfully laid in accordance with this contract, or shall state in writing his reasons for not giving such certificate, and shall forward a duplicate of such certificate or statement in writing, as the case may be, to the company and the contractors respectively.

Article 14. The £

mentioned in Article 12, paragraph ( ). shall be paid to the contractors upon the certificate of the engineer in England that for 30 consecutive days after the completion of the laying of the cable between the respective cable houses the same continued in good electrical condition, and that the contract has been completed.

Article 15. Any surplus cable remaining out of the lengths specified after the completion of the contract shall belong to the company, and shall be delivered to them in London, unless otherwise agreed between them and the contractors.

• NOTE. Our usual practice is payment of 10 per cent. of contract price on execution of contract, and 10 per cent. of contract price divided as follows, viz. :-

5 per cent on successful laying and completion of the cable, and

5 per cent, after the cable has remained in good electrical condition for thirty consecutive days from the completion of

the laying.

The balance of the contract price is payable during the manufacture of the cable on the completion of every 500 miles, in equal instalments, the last of such instalments being payable when the cable has been shipped and certified.

PAPERS.

Article 16. If any part or parts of the cable hereby contracted for, and in respect of which the company shall have made payments to the contractors shall be lost, destroyed, or damaged before being laid, and in consequence thereof money shall be payable under all or any of the policies of insurance referred to in Article 10, the company shall, for the purposes of this Article, forthwith re-transfer and deliver to the contractors the policies in respect of which auch money shall be payable, and do all acts necessary to enable the contractors to obtain the full benefit thereof. The contractors shall have full authority to collect and recover the moneys payable under such policies and to make such settlements or agreements as to the amounts to be paid thereon as they think fit, and, subject as hereinafter provided, the moneys received under the said policies, after deduction of the expenses of recovery thereof, shall unless otherwise agreed be deposited with Messrs. Barclay, Bevan & Co., Bankers, in the joint names of the company and the contractors or their respective nominees.

Article 17. The contractors shall, upon receipt of the said policies, with all practicable dispatch replace the cable so lost, destroyed or damaged with similar type or types of cable or other cable certified by the engineer to be suitable for the purposes of this contract, and the contractors shall use and apply the substituted cable (when certified by the engineer as satisfactory) for the purposes of this contract accordingly.

Article 18. The moneys referred to in Article 16, and all interest thereon, shall be paid to the contractors upon the certificate of the engineer of the shipment of the whole of the substituted cable, and that the condition thereof when shipped was satisfactory, and the contractors shall have no further claim upon the company in respect of the substituted cable.

Article 19. The company or their agents shall, subject to the directions of the engineer, be at liberty to work the cable from the time when the same may be laid until finally certified under Article 14, and the receipts from working the same shall belong to the company, who shall bear the expense of working; but the contractors shall, until the final certificate is given, have full liberty to inspect and examine the line and its connexions, and the working and testing thereof, and to test the same, at reasonable times, under the supervision of the engineer.

Article 20. The engineers for the purposes of this contract shall be

acting in the name of their firm

3

or any one or more of them and several members of the firm may act as engineer at the same time in different places. The engineer in England shall, subject as herein before provided, duly sign and give every certificate to which the contractors are entitled under this contract when the provisions of the contract upon the performance of which the contractors are entitled to the same respectively shall have been performed.

Article 21. If any dispute or difference shall arise between the company or their engineer and the contractors on any electrical, mechanical, or engineering question arising in the course of the manufacture, testing, shipment, or laying of the cable, then, and in every such case, the matter in difference shall be referred to the arbitration of some person to be appointed by the President for the time being of the Institution of Civil Engineers, at the instance of the party first applying for the appointment. In case an arbitrator appointed under the foregoing or the following power in that behalf refuses to act or dies, then the President for the time being of the Institution of Civil Engineers may appoint another arbitrator in his stead, upon notice from either party, and if he fails to do so within 21 days after the receipt of notice in that behalf, then section 5 of the Arbitration Act, 1889, shall apply, and, subject as herein-before mentioned, any arbitration under tbis article shall be deemed an arbitration upon a submission under the said Act.

Article 22. This contract may from time to time be varied by agreement between the Boards of the company and the contractors.

IN WITNESS whereof the contractors have hereunto caused their common seal to be affixed, and the executive of the company on behalf of the company have hereunto set their hands the day and year first above written.

The Common Seal of the Telegraph Construction and Maintenance

Company Limited was hereunto affixed in the presence of

Construction and

Beal of Telegraph

Maintenance

Company

Limited.

Chairman.

Secretary.

1

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