6
pro
29. The ordinary working expenses incurred at the several stations and termini should be paid out of the earnings of the cables, and the balance, if any, should be divided rata among the contributing Colonies. On the other hand, should the receipts from messages prove insufficient for that purpose, the deficiency should be made good by the same contributors.
30. Whenever the maintenance fund shall have reached an amount which shall be deemed sufficient with interest accretions-to meet the purposes for which it was intended, then so much of the annual contributions of all, as are made in respect of that fund, should be carried to a depreciation investment fund, to be devoted, whenever occasion may require, either to renewing or duplicating the cables.
{ 31. If from any extraordinary casualty the maintenance fund should insufficient
prove to meet sudden demands arising therefrom, then the associated Governments should make good the deficiency by additional payments proportioned to their several fixed annual contributions.
32. This scheme appears to me to be at once the most economical and most practical that can be suggested, and while it requires from the Colonial Governments all that they can afford for such an object, and all that they could fairly be asked to contribute, will place a most desirable means of communicating with our distant possessions at the disposal of the Government, and of the great commercial body of this country, at a comparatively trifling cost.
33. Appendix C. will be found to contain a tariff of proposed charges, and a statement of the number of messages required to raise a sum equal to the contributions which each Colony will be called upon to pay.
34. As legislative action will be necessary on the part of the several Colonies associated in the scheme in the event of Her Majesty's Government expressing their willingness to unite in carrying it out, much valuable time would be saved if draft Ordinances were prepared in this country, as soon as that decision shall have been arrived at; and a general plan of proceedings should be laid down, so as to ensure uniformity of action on the part of all concerned.
35. In submitting the proposals herein contained to the several Colonial Governments, such documents would, I feel assured, be thankfully received by them.
36. I have only to add that no difficulty is anticipated by the Crown Agents in finding experienced and competent persons ready to enter into lump-sum contracts for making and laying the cables under the usual guarantees.
I have, &c.
Robert G. W. Herbert, Esq.,
&c.
&c. &c.
PENROSE G. JULYAN.
7
Apportionment.
Imperial Government, one moiety of the whole
£33,616
Less value of guarantee on capital, estimated to be worth
I per cent
11,058
Imperial contribution
£22,558
Cape Government do.
25,843
Mauritius do., do.
14,473
Natal do., do.
4,358
£67,232
The principle of apportionment applied to the Colonial Governments is based on the average aggregate revenue of each, reckoned on the last three years, viz. :—
Cape of Good Hope
£1,257,000
Mauritius
Natal
704,000 212,000
£2,173,000
If the balance of annual charge, after deducting the imperial contribution (22,5581.), be apportioned in the ratio that revenue bears to the amounts required, the several contributions will be as follows:--
Cape of Good Hope Mauritius Natal
£25,843
14,473 4,358
£44,674
22,558
7
Total annual charge
£67,232
Add imperial share as above -
APPENDIX B.
STATEMENT showing the amount of capital required for constructing, laying, and main. taining Submarine Cables between Aden and Algoa Bay (via Eastern Koute, No. 2, Engineers' Report), including the annual charge involved in borrowing the money, and the apportionment of that charge among the parties to the undertaking.
Capital.
Estimated cost of making and laying cables, as per System C., page 24,
Engineers' Report
APPENDIX A.
STATEMENT showing the amount of capital required for constructing, laying, and main- taining Submarine Cables between Aden and Algoa Bay (via Eastern Route, No. 1, Engineers Report), including the annual charge on borrowed money, and the apportionment of that charge among the parties to the undertaking.
Capital
•
£1,306,000
Add first cost and equipment of a steam vessel adapted to cable repairing
purposes
Total capital
Annual Charge.
50,000
£1,356,000
To borrow the capital on Colonial Government debentures, guaranteed by the Imperial Government (4 per cent. at 104), would involve an annual charge of about Add 2 per cent. on capital to form a maintenance fund.
•
Estimated cost of making and laying cables, as per Table No. 2, Engineers'
Report - Add first cost and outfit of a steam vessel adapted to cable repairing
purposes
£1,100,000
Total annual charge
Apportionment.
•
50,000
£1,150,000
Imperial Government one moiety of the whole
Less value of guarantee on capital estimated to be worth 1 per
cent..
To borrow this sum on Colonial Government debentures, guaranteed by the Imperial Government, would involve an annual charge of (4 per cent. at 104) about
Imperial contribution
Cape Government do.
£44,232
Mauritius do., do.
Add 2 per cent. on capital, to form maintenance fund
23,000
Natal do., do.
£52,152
27,120
£79,272
£39,636
13,560
£26,076
30,772
17,234
5,190
Total annual charge
£67,232
Total
£79,272
NOTE. The principle applied to the above apportionment is the same as in Appendix A.
A 4
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