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giving the dates when the early cables were first laid with their respective lengths, without showing the extensive cable renewals which have since been found necessary.

Thirdly. As to the question of monopoly, I find on looking through the Official Report of the Colonial Conference (1887) that the remarks attributed to the late Mr. Kaikes really referred to the following paragraph of a paper which Mr. Sandford Fleming read to the Conference immediately before Mr. Raikes addressed the delegates, namely:-

"Mr. Pender subunits that the existing Company (Eastern Extension Company) as the pioneer of telegraphic communication with Australia is entitled to a large share of consideration at the hands of the Colonies.'

Consequently to represent this perfectly reasonable contention as a claim to a monopoly is simply absurd.

But none of these points have any important bearing on the real question at issue, namely, Is the proposed Pacific cable, an undertaking which can be recommended to the investing public?

The Pacific cable project, as I understand it, is as follows:-

It is proposed to lay a single line of cable connecting Canada with Australia at a cost of 1,800,000%, and order to raise this sum, guarantees for 14 years from the several Governments supposed to be interested to the amount of 72,000l. per annum are to be obtained.

Now let us examine this proposal from the point of view of an intending investor.

Capital .

25

Again, I fail to understand on what grounds the writer holds that a single line of cable nearly 9,000 nautical miles in length, laid in the Pacific, should stand less chance of interruption than the existing cables.

With such figures as I have above placed before you, and which as a director of a submarine cable company you can fully appreciate, I would ask whether you would consider yourself justified in putting your name to a prospectus inviting subscriptions from the public for a scheme showing such disastrous financial results, even with the aid of the suggested Government guarantees.

I remain, &c. (Signed) JOHN PENDER.

The Hon. Sir Charles Tupper, Bart., G.C.M.G., C.B.

P.S.—I am sending a copy of this letter to the "Times."

9707.

No. 25.

THE BATLEY CHAMBER OF COMMERCE to COLONIAL OFFICE. (Received June 4, 1894.)

[Answered by No. 32.]

£

1,800,000

£

Working expenses Maintenance

25,000 35,000

60,000*

Amortisation to replace capital at

end of 14 years' guarantee

105,000

165,000

Less-

Earnings estimated on basis of one- half of the Eastern Extension

MY LORD,

MARITIME DEFENCE OF THE EMPIRE.

Batley, June 2, 1894.

I AM desired by the Council of this Chamber to inform you that they consider that the forthcoming Conference to be held at Ottawa for Inter-Imperial purposes, affords a favourable opportunity for the consideration of the most important question above- named, such consideration to be with a view to the adoption of an arrangement for an equitable apportionment of the burdens of naval expenditure among all the self- governing countries of the Empire, with a corresponding representative participation by all those countries in the control of the Imperial navy; my Council will be glad if you can see your way to promote the discussion of this subject at the Ottawa Conference.

I am, &c. (Signed) HENRY SHEARD,

Secretary.

Company's receipts from

Australasian traffic

4 per cent. guarantee

the

45,000 72,000

117,000

48,000

Leaving an actual loss per annum

to investors of

Suppose, for the sake of argument, we assume that the Pacific cable might one way or another obtain as much as the whole of the Eastern Extension Company's present Australasian receipts, even then there would be absolutely no return on the capital invested, and if the Pacific cable were duplicated, the loss would probably amount to 120,000l. per annum.

The above figures will, I am sure, be regarded by all conversant with the expenses attending the working and maintenance of cables laid in deep seas as not only moderate, but rather under the mark, for it must not be overlooked that no allowance is made for a prolonged interruption, a contingency which is very probable to a single cable laid in such extreme depths as have been proved to exist in the Pacific, and during which interruption the guarantees would, of course, cease to be paid.

I observe, with some surprise, that you quote with approval an article which appeared in the "Globe." It is evident that the writer knows very little of the subject, for he says in case of the cables between Aden and England being injured, all communication with India would be interrupted. As a matter of fact, no fewer than three other routes, practically under the control of the existing system would still be open for traffic.

• This is Mr. Sandford Fleming's own calculation.

3159.

No. 26.

THE MARQUESS OF RIPON to the EARL OF ABERDEEN. (No. 147.) MY LORD,

Downing Street, June 6, 1894.

I HAVE the honour to acknowledge the receipt of your Despatch No. 32 of the 8th of February last enclosing copy of one which you had addressed to each of the Governors of the Australasian Colonies and to the Governor of the Cape of Good Hope inviting the appointment of delegates to represent the several Colonies at a conference to be held at Ottawa on the 21st of June next, for the purpose of discussing the questions of trade relations and telegraphic communication between Canada and the Australasian Colonies.

Her Majesty's Government look forward with much interest to the meeting of the proposed Conference, and as a practical indication of their sympathy with the colonies interested, and in response to the invitation of the Canadian Privy Council, I have had the pleasure to acquaint you by telegraph on the 28th ultimot that the Imperial Govern. ment will be represented by the Earl of Jersey, G.C.M.G. Lord Jersey's duties will be to hear and report what passes and to give information to the Conference on matters of fact; but it will not be in his power to bind Her Majesty's Government or to express views on their behalf, as they must reserve any expression of opinion on the subjects

O 89844.

• No. 1.

D

† No. 17.

PUBLIC RECORD OFFICE

Reference :-

C.O. 885

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

PUBLIC RECORD OFFICE, LONDON

F