CO885-(6-7) — Page 415

CORRESPONDENCE.

Enclosure No. 1.

ANGLO-AMERICAN TELEGRAPH COMPANY, LIMITED.

List of Interruptions.

1887. 2 out of 7 cables were broken at one time, leaving 5. 1888. 2

25

5.

53

1889. 3

4.

21

1

}}

1,466,144

37,527

186,848

108,500

61,404

1,800,423

1890. 2

5.

>

F

J

1891. 3

4.

נו

11

1892. 2

5.

1

>

21

1893. 3

4.

J

})

1894. 4

1895. 3

3.

»

12

4.

"

*

Great Britain.

Other Europeao Countries.

America.

Total.

Ordinary.

Government.

Presi

No. 4.

THE ANGLO-AMERICAN TELEGRAPH COMPANY to LORD SELBORNE.

MY LORD,

Duplicate cables.

Tarifi.

Renewal fun".

PACIFIC CABLE ROUTE

Anglo-American Telegraph Company, Ltd.,

26, Old Broad Street, London, E.C., December 2, 1896.

WILL you be good enough to allow me to add to my evidence of yesterday with reference to "main cable interruptions," that there are occasions when several parallel cables are interrupted at the same time. For instance, of the seven cables owned by this company and its associates four were so interrupted in 1894. Please see Return 1.

These interrupted cables were not all made by the same firm.

I presume that some portion of the Pacific Ocean is as tempestuous as the North Atlantic therefore, in view of the exceptional difficulties of repair and the absolute uncertainty of success, I trust the necessity of providing duplicate cables for the maintenance of communication has not been overlooked in the estimate of the cost of the proposed Pacific route.

I would ask to be permitted also to make a remark in reference to the through rate of 38, a word proposed by Mr. Sandford Fleming.

I cannot help thinking that this rate is based upon the present extremely low rate of 18. per word over the Atlantic cables.

I beg to say that this rate on commercial principles is one that cannot be justified, it is the outcome of unreasonable competition and multiplication of cable companies.

Assuming that the ordinary European domestic rate of d. a word and the international rate of 2d. a word upon a capital cost of 201. per mile is the scale upon which telegraph charges should be based, what should be the rate for 4,000 miles at an average cost of 2001. per mile? Surely not 18. per word.

The shareholders of this Company during the last 15 years have received an average dividend of 21. 78. per cent., not an extravagant sum, while the telegraphing public, a very limited one in numbers, has enjoyed a rate not exceeding 28. per word during that period and 18. per word during the last 10 years. Please see Return 2.

I also see that Mr. Sandford Fleming assumes that the cable once laid and maintained for three years will require no provision in the shape of a renewal fund.

I beg to say that a "renewal fund " is an absolute necessity, and that it should be based upon a 25 years' life of the cable, and should be allowed to accumulate at compound interest.

This fund, as well as the cost of all repairs, should be provided out of revenue. Apologising for the length of my letter and thanking you in anticipation,

I am, &c.

J. H. CARSON,

Manager.

265

Enclosure No. 2.

ANGLO-AMERICAN TELEGRAPH COMPANY, LIMITED.

List of Dividends.

419

Year.

Per-centage.

Year.

Tariff Ordinary Messages.

£ s. d.

Per Word.

1881

3 10 0

1881

2s. and 18.

1882

2 15 0

1882

ls. and 23.

1883

3

5 0

1883

2..

1884

3 2 6

1884

28. and 1s. 8d.

1885

1 5 0

1885

18. 8d.

1886

0 5 0

1886

1. 8d. and 6d.

1887

1 7 6

1887

6d.

1888

1 12 6

1888

6d, and 18.

1889

2 15 0

1889

Is.

1890

2 17 6

1890

15.

1891

2 12 6

1891

13.

1892

2 15 0

1892

13.

1893

2 11 0

1893

1s.

1894

2 2 0

1894

18.

1895

2 9 0

1895

15.

-

1896

ls.

Average 21. 7. Od. per cent.

PUBLIC RECORD OFFICE

19

Reference :-

C.O. 885

6

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

PUBLIC RECORD OFFICE, LONDON

DEAR SIR,

No. 5.

H. A. C. SAUNDERS, Esq., to MR. MERCER

The Eastern Telegraph Company, Limited, Winchester House, Old Broad Street, London, EC.,

December 3, 1896.

REFERRING to my evidence before the Pacific Commission, I beg to be allowed to correct my statement as to the depths in which faults due to borers have been found. I have carefully gone through our records and verified the cases of which I enclose a list. I cannot explain why it escaped my memory when under examination, except that I had in my mind the localities where the majority of these faults occur, which is in shallow water.

Yours, &c.

H. A. C. SAUNDERS.

L13