CO885-(6-7) — Page 339

PUBLIC RECORD OFFICE

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Reference :-

C.O. 885

6

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

PUBLIC RECORD OFFICE, LONDON

26 November 1896.]

118

The Marquess of TWEEDDALE, Mr. H. A. C. SAUNDERS, [Continued.

and Mr. F. E. II ESSE.

Chairman-continued.

with in Australia --Eleven o'clock in the morning here would be nine or ten o'clock at night in Australia. There, work would have been finished for the day.

1826. And five p.m. would be--?-About three in the morning; between three and four o'clock in the morning in Australia.

1827. The result of that is that you have a margin, because, I take it, nobody wants to receive a message at four in the morning, and you have practically from four in the morning to nine in the morning-reckoning Australian time--- in which to work off your messages if you are But as a rule we get all the pressed? Yes. traffic through in about 17 hours out of the 24.

1828. But that is the state of the case, ua a matter of fact?-As a matter of fact.

1829. Can you tell the Committee the number of words that were transmitted by you to Australia in each of the last three years?-In 1893 the total number of words, including local traffic as well, was 1,401,000 words; in 1894 it was 1,323,000 words; in 1895, 1,948,000.

1830. And is it on that number of words you reckon the average to be 9-43 letters - Yes, after deducting the local.

1831. Could you explain exactly how you get at that 9:43?-Taking the ordinary Austral- asian traffic we find 473 words of Govern- ment messages, containing 2,652 letters, giving an average number of letters per word of 5-61. Then there are 2,608 Press words containing 16,185 letters, or an average number of letters per word of 6-21. Ordinary messages contained 44,664 words, or 341,332 letters, giving an average number of letters per word of 764, and the average, taking all the words and letters together, comes out at 754. As the Government messages are carried at half rates and Press messages at quarter rates, it is necessary to multiply the Government average by two and the Preas average by four, to arrive at the earning power of the cables at full rates. Consequently the is 9-43, average length of fully-paid words made up as follows: Taking the per-centages of the different classes of traffic (Government, Press, and ordinary) for the whole year 1895 and multiplying the Government average by two and the Press average by four, we find the Government messages work out at 11.22 number of letters; the Press 24.84; and taking the ordi- nary at 7.64, as above, the net result is 9:43.

1832. Now (if you can do it for us) I should very much like to have a division of these 1,948,000 words that you transmitted to Australia in 1895. How much of that was what I may call extra-European, which I think you call localI have the figures. The through-traffic, or European traffic, excluding the local for the year 1895, gave 1,860,000 words, made up in this way the ordinary amounted to 1,636,000; the Press, 186,000; and the Government, 37,000, in round numbers.

1833. Can you tell me of that 1,860,000 words how much came from the United Kingdom?— I' have not the figure separated here

2.5

Chairman-continued. between Great Britain, France, Germany, and other European countries, but the bulk of the traffic is, of course, between the United Kingdom and Australasia.

1834. Would you be able to let us have the divisions ?—Yes. (Marquess of Tweeddale.) Oh, yes.

1835. That which comes from the United Kingdom and that which comes from the rest of Europe? (Mr. Hesse) Yes.

Mr. Murray.

1836. And America?-The American, I inay tell you, is a very small proportion; it is only about 10,0001 or 12,000l. a year, including Canada; the United States, Canada, and other parts of America.

Chairman.

1837. And that would all go through England, of course Through England, yes.

1838. And, therefore, if you can add to those statisties by telling us how much American traffic is included in that emanating from the United Kingdom, it would absolutely complete the analysis?-You shall have it.

1839. What rate of working speed do you get out of your cables right through, on the average, from London to Australia?-The speed varies, of course, very much according to the length of the section, and the size of the core. sections we get as many letters through as 600 to 700 per minute.

On some

1840. But I presume that you cannot reckon the speed of your cables above that of the slowest

section ?-No.

1841. Therefore if you can give me the general result?—(Marquess of Tweeddale,) I have it here, the months. (Mr. Hesse.) Here is n month's actual traffic taken. On the Aden-Bom- bay cable the theoretical speed is about 150 letters per minute, and the actual speed attained of pay- able letters during that month was 39-17, there being 73 per cent. of loss through preambles, repetitions, service messages, and delays through pausing in transmission. On the Aden- Suez cable for the same month, the speed of which is 145 letters per minute, the actual pay- able letters were 34:55. On the Aden-Zanzibar there was a better result; that is an exceedingly The good cable, one of the best ever laid. theoretical speed is 100 letters per minute, and we got a speed of 41:39. Then, taking the Penang-Madras cable, the theoretical speed was 146 letters per minute, and the actual speed was only 25 5+ during that month. But taking a fair average I think about one-fourth of the theoretical speed would be attained in actual practice.

1842-3. But what would you call the mean theoretical speed of your whole through-cable from London to Austrália ?—This would be a fair mean, taking about 145 letters per minute. (Mr. Saunders.) That is the theoretical speed of simplex.

26 November 1896.]

119

The Marquess of Tweeddate, Mr. II. A. C. SAUNDERS, [Continued.

and Mr. F. E. HESSE.

341

Chairman-continued.

1844. One hundred and forty-five is the theo- retical speed of simplex (Mr. Saunders.) Yes.

1845. And the actual would be one-fourth of that? Yes, the output. (Mr. Hesse.) The out- put would be about one-fourth.

1846. And is that exactly the speed, theoretical and actual, of your slowest section ?—Yes, it may be taken as that.

1847. Now, is one-fourth the proportion that you would say that payable letters always hear to the letters and signs actually transmitted ?- That is our experience, and I think it may be taken as a very fair average.

(Marquess of Tweeddale.) It is a little better in the Atlantic; you get more words because there is longer distance. (Mr. Saunders.) The question of staff comes in; we have a very much larger staff, and, therefore, the capacity of the staffs vary more in the Eastern Extension.

1848. Then of this 1.948,000 words that you transmitted to Australia last year, which for the purposes of our calculation we will call two millions, am I to understand that only half-a-million were paying words?—Oh, no; these were actual payable words.

1849. Those were actual payable words?— Actual payable traffic.

1850. Supposing a cable to be laid, as has been suggested, from Vancouver to Australia, how much of your Australian traffic do you think would be diverted to it ?— (Marquess of Tweeddule.) At equal rates we estimate that about 672,297 words would be diverted. Perhaps you would like to know the basis on which that is calcu lated?

1851. I should, very much.- We consider that the Extension Company would retain the whole of the West and South Australian traffic. The principal reason for that is that it is nearer, and it is the interest of the Governments to send the traffic along their land linea to our lines; the Western is clearly nearer, and South Australia having built that long line from Darwin to Adelaide would naturally wish to make it as paying a line as possible. So that we shall estimate that from those two Governments we shall get the whole of the traffic. One-half the traffic to and from Victoria and Tasmania; one- fourth of the traffic from New Zealand. (Mr. Hesse.) To and from New Zealand; it is to aud from in each case. (Marquess of Tweeddale.) And from New South Wales, one-fourth homeward. (Mr. Hesse.) One-fourth of New South Wales homeward and one-half of the New South Wales outward. (Marquess of Tweeddale.) We lose the whole of the Queensland; we give that up. (Mr. Hesse.) Homeward traffic, and three-fourths of the outward.

1852. The result being, as you have stated, that such a cable would get, we will say,600,000 words? (Marquess of Tweeddale.) Six hundred and seventy-two thousand odd words, which at a tariff of 3s. would amount to 49,000l. a year, (Mr. Hesse.) That of course is a through tariff, not the cable proportion of the tariff.

1853. But which are you calculating; are you calculating what the cable proportion would

Chairman -continued.

get? Yes, what the Pacific cable itself would get.

1854. Out of the 3s. ?-Out of the 3s. tariff. 1855. And what do you think the Pacific cable would get out of the 3. ?-We should estimate about 1s. fid.. 1s. for the Atlantic, say, making 28. d. then 4. for the American land lines, and 2. for the Australian land lines, making the 3s.

1856 Leaving 1s. 6d. as the share of the cable? Of the cable.

Mr. Jones,

1856.* How much do you allow for transmis- sion to Vancouver?- For the American land lines 4d.; 2d. for the Australasian, that makes fid. 1s. the Atlantic, making 18. 6d. ; 1s. 6d. for the Pacific cable, 3s.

Chairman.

1857. Now, what would be the result of such a diversion to your company?—(Marquess of Tureddale.) We should lose unler the present tariff 118,000 per annum; under a 3s. tariff it would be increased to 197,000% per annum.

1858. That is, I presume, reckoning the amount of business to remain as it is ?—Yes. This is based on actuals.

1859. On actuals. But what is your opinion as to the future of Australian business?—I have always stated at every meeting lately to the shareholders of the company that we can hardly expect to maintain the West Australian traffic at its present figure; that therefore, although there is what may be described as a normal or average increase, that increase would be lessened by the reduction from the West Australian, which we regard as an abnormal traffic. (Mr. Hesse.) The West Australian traffic rose 700 per cent. in 1895 as compared with 1894, and in 1894 over 1893 it increased 118 per cent.; that shows the enormous traffic it is now, comparatively.

1860. Leaving such abnormal increases out of calculation, what has been the average increase in the last 10 years?-It has worked out, I think, at not much more than about 10 per

cent.

1861. Ten percent. per annum ?—I can give you the actual figures for each year. Taking 1886, the increase in the whole traffic, including, of course, Western Australia, was 4.64; in 1887 there was an increase of 17:13; in 1888 the increase was 18-26; in 1889 an increase of only 1-93; in 1890 the increase was 4.20; in 1891 there was the large increase of 34-28, mainly due to the reduction of tariff from 9s. 4d. to 4s.; in 1892 there was an increase of 18.95; in 1893 an increase of 6-05; in 1894 there was a decrease of 5-57; but last year, 1895, there was an in- crease through this enormous West Australian traffic of 4726 per cent.

1862. Is the total volume of business now double what it was 10 years ago ?-Yes,

1863. And was it 10 years ago double what it was the previous 10 years before that?— Fully, yes. (Marquess of Tureddule.) It was a very high tariff then. (Mr. Hesse.) It was only in 1891 that we had the low tariff of 45.

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26 November 1896.]

120

The Marquess of TWEEDDALE, Mr. H. A. C'. SAUNDERS,

and Mr. F. E. HIESSE.