PUBLIC RECORD OFFICE
Reference :-
mmimmin TICO. 885
5 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
124
14. It will now, we trust, be abundantly clear to your Lordship that while a diffe rential tariff is out of the question, the uniform rate at present in force, so far from being oxcessive in equity, is extremely moderate, whether viewed from the standpoint of work done for the money, or of the charges levied by the complaining Company, or of our own charges for inland traffic; and that so far as this is concerned, there is no ground what- ever for yielding to the demand: the moderation of our uniform rate has been frody admitted apart from the present discussion.*
15. The question of policy alone remains; the Australian Governments urge that at a time when all the other Governments of the world are making really liberal and "costly concessions to facilitate the transmission of telegraphic messages," they do not believe that "the Government of Her Majesty the Empress will wish to stand "alone in maintaining a system of overcharge." We have already shown that this system of overcharge" has no shadow of existence in fact, and we need hardly remind your Lordship that in liberal reforms of this nature the Government of India has ever been foremost to support and encourage them. But in all cases of this nature of which we are aware, there have been contingent benefits to the country granting the concession. In the present case the reduction proffered by the Australian State is a domestic matter directly for the benefit of its own subjects, while the reduction prossed upon us is entirely in the interests of other administrations.
16. India is not now in a position to make any gratuitous sacrifice of revenue what- ever, still less would it be politie to yield to a demand which is openly declared to be made with a view of eventually wresting from this country the whole of its transit revenue. If the rates of all the administrations concerned were at present on a fair and moderate basis, and a proportionate reduction all round were proposed in the general interests, the case would wear a totally different aspect, and the question of policy would arise; as the case really stands, it is simply an attempt on the part of the Companies to obtain an unfair advantage, and neither in equity nor in policy can we perceive anything which would justify us in saddling the people of India with the reduction asked for..
We have, &c..
(Signed)
DUFFERIN.
F. S. ROBERTS. C. P. ILBERT.
S. C. BAYLEY
T. C. HOPE.
A. COLVIN.
T. E. HUGHES.
Documents accompanying.
Nj.
125
3. A memorandum relative to the proposed Pacific cable, which accompanied the proposal to the Colonies.*
A memorandum in reply to Mr. Heaton's paper in the "Pall Mall Gazette." The absurdity of his statement that a 1s. tariff between London and Australia would pay well is shown by the fact that out-payments which amount to Is, per word would have to be made, even at the low rate now prevailing across the Atlantic, but which rate, in all probability, before long, will be increased to 18. G., in which case the out- payments alone would amount to 2s. per word.
If reference is in any way made to the existing Companies as a monopoly, my answer
Further comment is unnecessary. is that it has been so created by the great energy and enterprise with which the C'om- panies have carried on their extensions. It is true that the system has now become
so widespread that no unaided combination could successfully compete with it; and we cannot for a moment imagine that Governments would subsidize an opposition scheine where the work is so thoroughly well done as it is by the existing companies. We have invariably followed the British flag and trade, and figures can be produced in proof of the enormous impetus the submarine telegraphs have given to the development of commerce between this country and the Colonies.
I would also draw your attention to the fact that while it has been made a monopoly through the circumstances I have stated, we have never used it as such, or in any sense in a narrow spirit. In war times we have generally carried telegrams for the wounded free of charge, and we also made the same concession during the Irish fan.ine; and while the Colonial Exhibitions were going on the value of the telegrams carried free between the Executives and the Colonial Governments amounted to between 16,0007. and 17,0007. In addition to these, I could give you many other instances where we have acted in an equally liberal manner, and I hope, when the question is discussed at the Conference, that the above circumstances will be remembered."
Our system is now very much in touch with Her Majesty's Government, and we have letters from the Foreign Office to the effect that whenever discussions take piace
in regard to submarine telegraphs, we shall have full information on the subject, an! representation during such discussions.
I therefore hope that the Colonial Office, looking to the vast interests involved in the submarine telegraph system, will grant to the companies similar recognition on the present occasion.
The Right Hon. Sir Henry Holland, Bart., G.C.M.G., M.P.,
&c.
&c.
&c.
Faithfully yours, (Signed) JOHN PENDER,
Enclosure I in No. 37. TABLES.
PROPOSITION of the EASTERN EXTENSION COMPANY to the AUSTRALASIAN COLONIES. Subject to the APPROVAL of all the INTERESTED ADMINISTRATIONS.
That they should guarantee to the companies carrying Australasian telegrains viz.:-The Eastern, Indo-European, and Eastern Extension Companies, their annual revenue based on the average of the three years ended 1885, and make the through tariff 48. per word.
No. 37.
TELEGRAPHIC COMMUNICATION WITH AUSTRALIA.
DEAR SIR HENRY HOLLAND,
The Eastern Extension Australasia and
China Telegraph Company (Limited),
Winchester House, 50, Old Broad Street,
London, April 18, 1887.
I HAVE the pleasure to send you the following papers —
1. A proposal to the Australasian Governments for a reduction of tariff under their guarantee.†
2. Tables showing apportionment of the guarantee at a 4s, and 2s. 6d. tariff. The latter rate, however, would be entirely dependent on the assent of the Governments of India, Germany, and Russia, whose representatives are at present opposed to it, as they do not see their way to reduce the existing tariff of 4s. per word to India, aud consider it would be most difficult to maintain such a tariff if the rate to Australia were reduced to 2s. 6d. Probably, however, a 4s. tariff will be a sufficient reduction for the moment, and if the change entailed no serious loss to the Governments, the 28. 6d. tariff might be considered later.
• Vide pata: 12 of the report by our delegates at the recent Conference at Berlin.
† See Appendix III. in No. 34, pages 112 to 114.
Revenue at 4s. rate based on average of three
years to 1885
Average annual receipts of the three companies :-
Eastern
Indo-European
£ 51,338 7,669
£
£
Eastern Extension
124.221
183,228
63,983
119.245
119,000
£
103,000
87.000
71,000
-
55,000
Amount to be made up if no increase took place
25 per cent. increase based on traffic three years to 1885
"
**
50 · 75
""
**
22
15
100
34
1
"
"
+
• See Appendix III. in No. 34, pages 114 to 116.
U 3