PUBLIC RECORD
OFFICE
C.O.
Reference :-
8855 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
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Honolulu, 2,404 knots, the only landing being through coral reefs; from Honolulu to San Francisco, 2,197 knots. The only soundings throughout the route are a few taken by the United States frigate "Tuscarora," which in some places were over five miles in depth, so that a cable for these seas must necessarily be an expensive one (and the price quoted in the Agent-General's letter, dated 29th January 1886, would be quite under my estimates), as it would be impossible to pick up a starved cable in such depths, considering that it would not support its own weight in water while being hauled to the surface.
The cost of this line would be 2,000,0007. sterling.
The expenses per annum for working this line properly would be--
Five stations, at 2,0001. each
Two cable steamers, crew, coal, and repairs
Sinking fund for renewals and replacing cables within
20 years, at per annum, say
Interest on capital, at 5 per cent. per annum
£
10,000
20,000
80,000
100,000
210,000
Taking 300,000 words per annum as the probable traffic, at 5s. per word to San Francisco, and 2s. from San Francisco to London, or 7s. per word, and including the cable to New Zealand, making 7s. 6d. per word from Australia to England, 300,000 words at 58. = 75,000, which would not be sufficient to provide a sinking fund for renewals, without heavy Government subsidies from the Colonies.
Take the probable traffic at 400,000 words per annum, at 5s. per word to San Francisco, 100,000/., which is not sufficient to cover working expenses and renewals.
I believe Mr. Audley Coote's proposal at one time was to convey messages from Australia to London for 5s. per word, via San Francisco; this would leave 3s. per word for the Pacific cables, and allow 2s, for transit from San Francisco to London.
The whole traffic for the year 1885 from and to Australia was 556,660 words, which at 3s. per word would give a return of 83,4991. per annum, which would not provide sufficient for renewals and replacing cables in 20 years.
The routes suggested by Sir Julius Vogel are scarcely worth further analysis; but to show how impracticable they are, even as regards tariffs, and how impossible it would be to reduce the rates by adopting either of them, I will quote the rates now charged from the terminals of these proposed cables.
A cable from Queensland would have to connect with the Eastern Extension Company's system either at Manilla or Singapore.
Manilla to London
The present rate per word.
Singapore to London
or if extended to Shanghai to connect the Great Northern lines, through Siberia, the rate from Shanghai is From Queensland to Point de Galle-the
rate from Point de Galle to London From Queensland to Java-Batavia to London From Perth to Ceylon-Ceylon to London Western Australia to Mauritius, thence to
Natal Tariff, Natal to London
s. d.
10 0 per word.
6 5
*
8 4
"3
-
4 10
""
6 10
""
►
4 10
"
-
8 9
"
and even if this line were extended along the west coast of Africa to Pernambuco- Pernambuco to London
St. Vincent to London
-
9 0
*
·
4 0
""
So that if these lines were constructed as proposed by Sir Julius Vogel there could be no possible reduction in rates on the Australian business.
I am sure the public will be better served by accepting the proposal for an extension of the subsidy, than by paying a syndicate a large sum annually for procuring nothing more than the Colonial Governments interested can secure by negotiating direct with
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the Cable Companies, with the additional advantage that they (the Governments) can raise the money necessary at a less rate than the syndicates; but I do not advise this Government to undertake the working or management of any submarine cable, neither would the gentlemen offering their services take any risk or responsibility after they have raised the money, laid the cables, and taken their proportion of the profits.
This Colony is now paying an annual subsidy of 12,6174 for cables, which will extend over a period of 13 years yet to run. and I do not consider that
it is necessary or wise to increase our expenditure in that direction-the Colonies are very well served; and, without very considerable additional subsidies, as I have already shown, no sweeping reduction of rates can be secured. If the non-contributing Colonies, New Zealand and Queensland, are so anxious for new routes and new cables, why do they not take up the offers of the syndicates themselves.
Queensland has been offered a duplicate cable from Normanton to the Roper, free of expense and without extra tariff, and South Australia. I have been informed, is willing to construct a land line to connect the Roper River with Port Darwin, so that a complete duplication of the international system would be ensured; but, for some unexplained reason, the Government of the former Colony has refused this gift, which would cost the Company 70,000, although their cablegrams would come to them direct, instead of going round by Adelaide and Sydney, which must cause them very great inconvenience and delay, and debars the southern Colonies the advantage they would otherwise gain by having an alternative route in the event of interruptions on the overland line to Port Darwin. I am sure that this matter could not have been seriously considered by the Queensland Government, or they would have allowed the end of a cable to be landed on their shores in the Gulf of Carpentaria, for the benefit of their own commerce and that of their neighbours.
I quite concur in the Agent-General's remarks, in his despatch dated 29th January 1886, re the extension of the term for the payment of the subsidy, and do not consider that any better course can be adopted to ensure the maximum reduction in rates at the minimum expense to the Colony. We are now bound to 133 years, and we should certainly not increase our liabilities by encouraging an annual subsidy for syndicates to undertake new works, with doubtful results, and which are not absolutely required.
In reference to the Agent-General's despatch, dated 12th February last, I do not think the reduction of ls. 4d. per word to the public from 1st July is worth considera- tion, as it will be too small a concession to make any visible increase in the number of words sent, and will not be appreciated by the mercantile community.
It is also clear that the whole of the Colonies will not agree to contribute anything to the duplication subsidy on the Darwin-Singapore cables, Queensland and New Zealand having already refused to join.
As regards the 2s. 8d. per word for the Press, which is to take effect at once, if the Colonies agree that the non-contributing Colonies should share in the concession, there can be no objection to this, as neither Queensland nor New Zealand get their Press messages direct; they are either compiled in Sydney or Melbourne.
Sydney, New South Wales, 31/3/86.
A.
E. C. CRACKNELL, Superintendent, Electric Telegraphs.
STATEMENT showing the proportions payable per annum by the Australasian Colonies in order to recoup, so as to cover the following expenses, viz. :-
£
intenance of five stations, at 2,0001. each per
annum
10,000
Maintenance of two cable steamers, at 10,0001.
each per annum Sinking fund for renewals and replacing cables Interest on cost of cable (2,000,0007.), at 5 per
cent.
20,000
80,000
100,000
Total
$ 2
210,000