200
46
No. 27.
PACIFIC CABLE COMMITTEE to the HIGH COMMISSIONER FOR CANADA AND THE AGENTS GENERAL FOR NEW SOUTH WALES, VIC- TORIA, NEW ZEALAND, AND QUEENSLAND.
(Confidential.)
MY LORD, SIR,
Downing Street, October 1, 1900. Pacific Cable Tenders. IAM directed by the Pacific Cable Committee to state that they are negotiating with the Telegraph Construction and Maintenance Company with a view to a reduc- tion in the terms of their present offer, and that, on reconsideration, they think that pending an issue to these negotiations it would not be advisable that any communica- tion with regard to the tenders received should be made to the Colonial Governments interested in the cable.
2. I am, therefore, to request that you will for the present suspend action on my letter of the 29th ultimo.*
I am, &c.,
C. T. DAVIS. Secretary.
47
2. This amount represents approximately 14 per cent. of the estimated cost of laying the cable, and the Committee understand that it was based in part on the ground that this was the scale on which the Consulting Engineers of some large private under- takings, had been paid, but mainly on the consideration that the laying of the cable would extend over at least three years, during which the whole time of your firm would be occupied to the exclusion of other business, and that during this period they would be subject to out-of-pocket expenses amounting on an average to £3,000 per annum.
3. As regards the first ground, the Committee have reason to believe that in the case of many of the most important submarine cables laid of late years, the inclusive - remuneration of the Consulting Engineers has been less than 1 per cent. of the outlay. As regards the second, the position appears to the Committee to be much changed, since the matter was discussed between Mr. Taylor, the Chairman, and Lord Selborne, by the fact that the services and expenses of the Cable Engineers will, under the aniended offer of the Telegraph Construction and Maintenance Company, cease at the expiration of about two years from the signature of the contract, instead of three years as originally contemplated.
4. In these circumstances the Committee consider that a sum of £20,000, which will represent something more than 1 per cent. of the total outlay, will afford a fair remu- neration for the services of your firm, and they desire me to offer you that sum as an inclusive fee, to be paid, one half at the expiration of a year from the date of the signature of the contract, and the balance on the whole line being certified as com- pleted and ready for service.
I am, &c.,
C. T. DAVIS.
No. 29.
Į
PACIFIC CABLE COMMITTEE to MESSRS. CLARK, FORDE, & TAYLOR.
[Answered by No. 30.]
Downing Street, October 4, 1900.
GENTLEMEN,
I AM directed by the Pacific Cable Committee to state that they have had under their consideration the letters from the Telegraph Construction and Maintenance Company of the 3rd and 19th ultimo, submitted in your letters to me of the 4th and 19th ultimo respectively.
2. The Company now undertake to complete the laying of the whole cable by the end of 1902, but the only concession, as regards cost, made in consideration of all three contracts being placed with them, is an offer to carry out without charge the survey and sounding operations, estimated by you to cost £24,000.
3.
These terms do not appear satisfactory to the Committee, who had expected a substantial abatement, but I am to state that if the Company
(1) Will reduce their original tender by a sum of £100,000 (including the cost
of the sounding and survey operations), and
(2) Will also agree to complete the laying of the cable in two years from the
signing of the contract,
the Committee will be prepared to recommend their offer favourably to the various Governments interested.
4. I am to request that you will communicate accordingly with the Company, and report the result to me with the least possible delay.
No. 30.
MESSRS. CLARK, FORDE & TAYLOR to the PACIFIC CABLE COMMITTEE. Pacific Cable.
SIR,
ر
4, Great Winchester Street, London, E.C., October 8, 1900. Is compliance with the instructions contained in your letter of the 4th instant,* we wrote to the Telegraph Construction and Maintenance Company informing them that their letters of the 3rd and 19th ultimo had been under the consideration of the Committee, and that the Committee desired certain modifications of the terms offered by the Company.
We have to-day received the reply of their Managing Director, who states that he regrets it is impossible for his Company to meet the wishes of the Committee by making any modification of the offer contained in the letters above-mentioned of the 3rd and 19th ultimo.
We enclose herewith a copy of our letter to the Company and also a copy of their letter in reply.
We are, &c.,
C. T. Davis, Esq.,
Secretary, Pacific Cable Committee.
CLARK, FORDE, & TAYLOR.
No. 29.
I am, &c.,
C. T. DAVIS. Secretary.
DEAR SIR,
Enclosure 1 in No. 30.
Pacific Cable.
October 5, 1900.
PACIFIC CABLE COMMITTEE to MESSRS. CLARK, FORDE, & TAYLOR.
GENTLEMEN,
[Answered by N». 31.]
Downing Street, October 5, 1900.
THE Pacific Cable Committee have carefully considered the inclusive fec which you have suggested for your services as Consulting Engineers in connection with the Pacific Cable, viz., £25,000.
• No. 26.
↑ Nos. 24 and 25.
We have been informed by the Secretary, in a letter Bearing date 4th October, 1900, that your letters of the 3rd and 19th ultimo have been under the consideration of the Pacific Cable Committee, and we are instructed to communicate to you the views of the Committee thereon.
'
The Committee note that you now undertake to complete the laying of the whole cable by the end of 1902, but the only concession as regards cost made in consideration of all three contracts being placed with you is an offer to carry out, without charge, the
survey and sounding operations, estimated by us to cost £24,000.
• No. 428.
PUBLIC RECORD OFFICE
Reference :-
LITT¶C.O.885
7
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON
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