CO885-(15-16) — Page 377

9258

PUBLIC RECORD OFFICE

Reference :-

C.O.885

16 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

No. 6.

(NEWFOUNDLAND.)

[As to right of Newfoundland Government to purchase compulsorily the undertaking of the Anglo-American Telegraph Company.]

CASE.

The Law Officers are requested to advise whether, in their opinion, the Govern- ment of Newfoundland has the right to purchase compulsorily the undertaking of the Anglo-American Telegraph Company.

In the year 1854, the New York, Newfoundland, and London Telegraph Com- pany was incorporated by Act of the Colony of Newfoundland (17 Vic., cap. 2), and was empowered to construct telegraphic lines within Newfoundland (Section 6). For this purpose certain powers of construction were conferred upon the Company (Section 7) and certain grants of land were made to the Company in consideration of their expenditure (Sections 10 and 22).

A further provision of the Act (Section 14) conferred upon the Company the sole and exclusive right (with a single exception) of constructing inland telegraphs, sub- ject to a right of pre-emption in the Government of the Colony; the monopoly thus granted was made, in terms, to extend to the landing of any cable on any part of the island. It was subject to the condition that within five years a line of telegraphs should be constructed from St. John's to Cape Ray or some other point on the western coast of Newfoundland, and communication established with the continent of America. The monopoly was granted for 50 years from the 15th April, 1854, and it thus expired on the 15th April last.

Immediately upon the exclusive privilege thus given follows the right of pre- emption which gives rise to the present question.

The enactment conferring that right, Section 15, provides that if at any time after 20 years from the passing of the Act the Governor in Council deems it advisable "that the lines of telegraph and other property of the said Company" shall be transferred to and vested in the Government of the island, notice to that effect may be given, and thereupon the "telegraph lines, wires, cables, apparatus, vessels and all other property connected therewith" shall be valued by arbitrators, and at the expiration of one year from the award and upon payment of the amount awarded, "all and singular the said telegraphic lines, wires, cables, appa ratus, vessels and other property so appraised shall become the property of Her Majesty for the beneft and public use of this island." From this power of pre-emption are excluded the lands granted to the Company by the 10th and 22nd Sections of the Act and any lands bought with the proceeds of such lands.

By a subsequent section (Section 18) the Company are empowered to construct a line of telegraph between Newfoundland and Ireland "or any other island, place. or places in the Atlantic Ocean or in Europe or in the United States," and to construct telegraphic lines in Canada, Prince Edward Island, Cape Breton, Nova Scotia, New Brunswick and the United States and in the adjacent waters, "provided that such consent as may be necessary shall be first obtained of the Governments of the said provinces and States, respectively." The Company is further empowered to pur- chase or hire lines of telegraph constructed by other persons, either in the United States or British provinces of North America or in Europe, and to acquire and use vessels to aid in the acquisition or transmission of intelligence between America and Europe or in carrying on any of the operations of the Company.

As soon as the Company have established communication across the Atlantic Ocean from Newfoundland, they are entitled to a grant of 50 square miles of un- occupied land in addition to other grants previously made (Section 22).

If this Act stood alone, and the question now arose between the Government of Newfoundland and the Newfoundland Company, it might perhaps be argued that the intention of the Act, read as a whole, was to enable the Newfoundland Govern- ment to acquire nothing more than the inland lines of telegraph and the communi- cations between the Colony and the United States. The description of the property to be acquired would be satisfied by such an interpretation, and the fact that the right of pre-emption is referred to in Section 14 and not in Section 18 might be quoted

25 W 2645 5/06 D & S

5 21134