CO885-(6-7) — Page 372

PUBLIC RECORD OFFICE

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Reference :-

C.O. 885

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PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

2 December 1896.]

184

Mr. FFINCH.

Eir Donald Smith-continued, 2216. Has it been increasing within the last two or three years? Yes, in 1891-92 the value of the traffic was 192,000%; the next year, 213,000.; the next, 233,0007; the next, 236,000%; and last year, 1895-96, 343,0001.

2916. And would you look for a proportionate increase in future ?-1 am not prepared to say. It has been our opinion that this great increase has been due more to the mining interests; yes, more especially to the mining interests having in- creased so much..

2917. But you would expect an increase more or less?—I am not prepared to say.

Mr. Murray.

2918. You gave the Indian transit rate at 3 d. a word?—Yes.

2919. What do you get for the section, Te- heran to Karachi ?-From Teheran to Bushire the rate is 0.38 franc, of which the Department keep about 0.16, the balance being paid to the Persian Government and to the Indo-European Telegraph Company. From Bushire to Karachi the Department receive 1:09 francs per word.

2920. Is the Government of India interested in the same way, in that line, as it is in the Indian land line?-Yea, exactly; it is a depart- ment of the Government of India.

2921. What is it called ?--The Indo-European Telegraph Department.

2922-3. And that is entirely the property of the Government of India ?-It is entirely their property in this way, that the line through Persia belongs to the Persians; it is Persian property, but it is worked by the Government of India?

2924. Is it a source of profit?-Which; the Persian line?

2925. Yes. The receipts of the two sections are taken as one now. The department is paying a profit on its capital. I cannot give you the receipts of each section separately.

2926. The Indian Telegraph Department?— No, the Indo-European Department.

2927. Is that a profitable concern, the Indo- European Telegraph Department ?—It has been of late years. It was not for many years; it was not paying any dividend at all, its expendi- ture was in excess of its income, but for the last four or five years it has been paying.

2928. And the Indian telegraph system generally pays ?Yes, for some years past it has been paying small dividends, and how it is paying very fair dividends. It was 5.43 per cent. last year.

2929. What is the ordinary Indian inland rate?-For Madras ?

2930. Yes. They have three, rates, urgent, ordinary, and deferred. The urgent rate is 4 annas a word, the ordinary rate 2 annas, and the deferred 1 anna.

2931. That is a good deal lower than your transit rate, then ?-Yes, the Indian local rate is much lower.

2932-3. And the transit rate is rather high, is it not? Threepence-halfpenny a word. It is higher, because all the messages go "Urgent."

2934-5. Has the Government of India any

Mr. Murray continued,

[Continued.

views about this Pacific project?--I am not prepared to say. I believe some letters have been received in this Office from the India Office about the project.

2936. If it means a serious loss of revenue to them, I suppose they would have some views? This is a draft of the letter that was sent to you (showing Draft).

2937. How is the route by which a message goes settled?—The sender of the message can decide upon the route for himself.

2938. Suppose he does not?-If he does not it is supposed to go by the best route, that is the quickest route. The various central offices in India keep a register and they decide which route to send a message by.

2939. And from this end?-From this end J do not know how it is done. I think the mes- sages are generally handed in, the greater number of them are certainly handed in, to the companies, either to the Eastern or to the Indo- European.

2940. Then, of course, you get all the Indo- European messages?—Yes.

2941. You have no means of touting for that traffic here?—The Indo-European Telegraph Com- pany are joined on to our line at Teheran. They have an office at Manchester and another at Liver- pool; they have two or three offices; they accept the telegrams there and telegraph them on to London to their office here.

2942. Do they get as much as they want?- Of what?

2943. Of traffic. Of all sorts of trattic?

2944. Yes.-1 do not kuow. It does not make very much difference because we have a joint puree at present, with the Eastern Tele- graph Company.

Chairman.

2945. I think we would like to have this letter put in. You have that letter.

2946. I should like you to take the oppor- tunity of reading it and get it in in that way. Yes.

2947. On the 27th of June the Secretary of State for the Colonies communicated with the Secretary of State for India on the subject of this inquiry, and asked if the India Office had any observations to make?—Yes.

2948. And on the 8th July you sent an an- Bwer. Would you kindly read it out ?—“ I am "directed by the Secretary of State for India in "Council to acknowledge the receipt of your letter "dated the 27th June, in regard to the contem-

plated establishment of telegraphic communica- "tion between Canada and Australia, by means of "the Pacific Ocean cable. Lord George

Hamilton observes that Mr. Chamberlain does "not lose sight of the fact that the proposed "cable night cause a diminution of traffic over "the lines in which the Indian Government is "interested. I am to enclose, for the informa- "tion of Mr. Chamberlain, a statement showing "the extent to which the Indian revenues are "concerned in the existing lines; but having "regard to the considerations represented in your letter, Lord George Hamilton is not dis-

41

2 December 1896.]

185

Mr. FFINCH.

Chairman-continued. "posed to make this a ground of preliminary objection against any scheme for an alternative "route, to which Her Majesty's Government may attach commercial or strategic impor- "tance. Signed, Horace Walpole."

2949. When the traffic was reduced from 9s. d. to 4r. 9d. per word from England to Australia, I presume that there were consider- able negotiations between the Indian Government and the Eastern Telegraph Company to induce the Indian Government to consent to lower its tariff; was that so?-Yes, an agreement was entered into between the Indian Government and the companies.

2950. What was the share of the Indian Government before that reduction ? - The Indian land line's share was 7 d., but the Indo- European Department's share was not reduced that was 109 francs.

;

2951. That was the same as now. But taking the Indian Land Lines; I suppose the Eastern Telegraph Company represented that the Indian

Chairman — continued.

[Continued.

Government might reasonably expect to be recouped for a matter of tariff by an increase of business?-The Australian Governments guaran- teed a certain sum in case of loss. This reduction was made on their guarantee.

2952. On their guarantee, and a certain share of that guarantee applied to India?—No, it did not apply to India, no, the Government of India accepted this reduced rate.

2953. Accepted this reduced rate, but under the hope, I imagine, that an increase of business would recoup them ?—Yes, I think so.

2954. And has that been fulfilled in practice? -Yes. I have not brought over the papers, but in the administration report of the Indian Tele- graph Department, it was reported that they had been recouped; they considered that they had been recouped.

2955. They have never lost over a decrease of tariff?-Yes, they lost at first, but now, the last year or two, it has been recouped to them.

The Witness withdrew.

Adjourned till To-morrow, at Half-past Eleven.

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