COLONT.

Population

based on 1884

Statistics.

126

Apportionment of Guarantee.

Existing Subsidies paid by Australian Colonies to Eastern Extension

Amount to be contributed in addition to existing Subsidies if Tariff reduces!

to 45. per Word, and Traffic increased by

Company.

25 per vent.

50 per cent.

75 per cent.

tog pug vent.

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£

£

£

£

£

Victoria

961.276

14.479

30,623

25,86

21,110

16,353

New South Wales -

921,268

12,617

29,350

24,792

20,232

15,672

South Australia

312,781

1,805

、 9,965

8,416

6,868

5,821

Western Australia

32,958

499

1,050

724

560

New Zealand

564,304

17,978

15,185

12,393

9,5991

309,913

9,873

8,340

6,806

5,274

Total

190,541

3,293,041

4,200

4,159

3,513

2,867

3,221

36,600

103,000

87,000

71,000

55,000

Queensland

Tasmnin

PROPOSITION of the EASTERN EXTENSION COMPANY to the AUSTRALASIAN COLONIES, subject to the APPROVAL of all the INTERESTED ADMINISTRATIONS, including the GERMAN and RUSSIAN GOVERNMENTS.

That they should guarantee to the companies carrying Australasian telegrams, 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 2s. 6d.

per word.

Average annual receipts of the three companies:-

£

Eastern

£ 51,338

Indo-European

7,669

Eastern Extension

124,221

183,228

Revenue at 2s. 6d. rate based on average of

three years to 1885

35,220

Amount to be made up if no increase took place

148,008

148,000

£ 139,195

130,390

121,585

112,780

Increase of 25 per cent. would reduce it to -

50

14

-

75 100

""

11

"

127

Enclosuro 2 in No. 37.

MEMORANDUM On the PAPER by Mr. HENNIKER HEATON, M.P., in the

Gazette," of 2nd April 1887.

The principal points of Mr. Heaton's paper are:—

**

Pall Mall

1. That the existing telegraphic communication with Australasia and India is insecure by reason of its passing through foreign and possibly hostile territories.

2. That the Canadian Pacific route would not be exposed to the ill-will of other

nations, but would be under exclusive British control.

pay

well.

3. That the existing rates are excessive, because they are calculated on the basis

of mis-spent millions of capital, and that a tariff of 1s. word would

per In regard to the first point, what are the facts of the case? The route followed by the existing cables is from England to Lisbon, thence to Gibraltar, thence through the Mediterranean to Malta. Alexandria and Port Said, passing through the Suez Canal and the Red Sea to Aden and Bombay. From Bombay the traffic passes over the Government land-lines across India, and is taken on by the cables from Madras or Rangoon to Penang, Singapore, Java, and Port .Darwin. Consequently the only foreign territories at which the existing cables touch are Portuguese, Egyptian, and Netherlands-Indian. The expediency of laying a new cable direct from England to Gibraltar is, however, under consideration by the Eastern Company, and as Egypt is under British influence the existing communication may be said to be practically under British control the whole way. It is, moreover, entirely worked by English operators, and is duplicated (in some sections triplicated) throughout. It also follows the trade route, where British cruisers would be most frequently met with in time of war, and for the most part the cables lie in moderate depths.of water, where they can be easily and speedily repaired when interrupted.

This communication was established by the Eastern and Eastern Extension Companies in 1871 without subsidy or assistance of any kind from the Colonies or the Imperial Government, and it was only in 1880, when the importance of telegraphy became more fully recognised, and a duplicated system a public necessity, not because a single line was unequal to the transmission of the traffic, but in order to make the system more reliable, that the Colonies of Victoria, New South Wales, South Australia, and Western Australia, agreed to give the Extension Company a subsidy of 32,4001. per annum for 20 years, to enable it to duplicate the cables between India and Port Darwin. In return for this the Company consented to carry Government and press telegrains at half and quarter rates respectively over its cables. At first the Government of New Zealand joined in the subsidy, but after twelve months' contribution withdrew from the

arrangeinent.

Now let us examine the plan advocated by Mr. Heaton, which is apparently a copy of Sir Julius Vogel's, but with the important exception that New Zealand is left out of the connexion. He suggests that an alternative line to Australia should be established by laying cables from

Vancouver to Fiji

and

Fiji to Brisbane

Total

Miles.

5,236

1,764

7,000

to be worked in connexion with the existing British Government lines between-

Subsidies paid

COLONY.

Population

based on 1884 Statistics.

by Australian

Colonies to

Apportionment of Guarantec.

Existing

Amount to be contributed in addition to existing Subsidies

if Tariff reduced

to 2s. 6d. per word, and Traffic increased by

Eastern Extension

Company.

25 per cent.

50 per cent.

75 per cent.

100 per rent.

}

£

£

£

£

Victoria

£

961,276

14,479

41,989

38,769

36,150

33,534

New South Wales

921,208

12,417

39,664

37,156

34,646

32,138

South Australia

312,781

4,805

13,466

12,615

11,762

10,910

Western Australia

32,958

499

1,419

1,330

1,240

1,149

New Zealand

Queensland

Tasmania

Total

564,304

24,295

22,758

21,222

19,685

. 309,913

13,342

12,498

11,655

10,811

130,541

4,200

5,620

5,264

4,910

4,553

3,233,041

35,600

139,195

130,390

121,585

112,780

London and Valentia

600

Valentia to Canada (by the Atlantic cables)

1,900

And thence to Vancouver by the Canadian Pacific land

line

3,400

12,900

PUBLIC RECORD OFFICE

Reference :-

885

Making a total distance of

It would, however, be physically impossible to work through such a long stretch of cable as from Vancouver to Fiji without re-transmission, and it would therefore be necessary to land at one of the Sandwich Islands (say Honolulu, as proposed by the U 4

5 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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