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PUBLIC RECORD OFFICE

C.O

Reference :-

8855 PUBLIC RECORD OFFICE, LONDON

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

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result in a very large saving in the gross foreign telegraph business of all the Colonies it will serve.

A comparatively small per-centage of the savings so effected would provide for renewing, duplicating, ami maintaining the cables in perpetual efficiency. It is proposed, therefore, that a restoration fund be provided from this source. Taking as a basis for computation the difference between present charges id, the reduced charges, probably five per cent, or less will eventually he found sufficient; but it is suggested that at first ten per cent, of the savings accruing to each Colony should annually be funded for the purpose set forth. years it will be found that less than ten per cent. will effect the desired purpose, a If after a period of ten or more sužalber. per-centage of the savings may be carried to the Restoration Fund. The objern in view is to provide sufficient but no more than sufficient, to restore the cables whenever they may become unserviceable, and to maintain the line of communication in the highest condition of efficiency for the business to be transacted.

13. These provisions assented to it will bo possible, immediately on the cables being laid, to adopt a scale of charges for ordinary messages between the Australian Colonies and Great Britain of 4s. per word, press messages at half or considerably lower rates. It is proposed that Government messages be transmitted free of charge to the full amount of the subsidy, and to take precedence of all other business.

Batt's Hotel, Dover Street,

London, 1st July 1886.

(Appended to Letter dated London, 10th July 1886.)

CANADIAN and AUSTRALIAN CABLE.

Memorandum submitted to the CANADIAN GOVERNMENT by MR. SANDFORD FLEMING.

Ottawa, April 6, 1886.

A FEW years back attention was directed by the undersigned to the importance and practicability of connecting Great Britian telegraphically with China, India, Japan, and the Australian Colonies, by a line passing through Canada, and by one or more cables laid in the Pacific Ocean.

The subject was reverted to last year in a letter dated 20th October, 1885, addressed to the l'remior, the Right Honourable Sir John A. Macdonald.

Since these dates the Canadian Pacific Railway Company has completed a line of telegraph from the Atlantic to the Pacific, thus establishing an important section of the original scheme, leaving to be completed only the cable across the Pacific.

The Australian Colonies are already connected telegraphically with England by way of Port Darwin, Singapore, Penang, Madras, Bombay, Aden, Alexandria, and through the Mediterranean Sea. The charges for messages are, however, very high, and there is always danger of interruption to business when political events assume a threatening attitude in Egypt or in Europe.

A cable from the Australian Colònies, via Fiji and the Sandwich Islands to Vancouver, the western terminus of the Canadian Pacific Railway, would connect them telegraphically with England by a line which would have the great advantage to every British interest of being entirely removed from all European complications. Moreover, a very large aggregate saving in the cost of transmission would be effected.

The Australian Colonies were first connected with England in November, 1872, consequently the following year (1873) was the first year the International line was in operation. The business in 1873 consisted of 8,952 messages to and from the Colonies. The last returns are for 1884, when the messages sent and received reached 48,896; showing an extraordinary development in 11 years, averaging an annual increase of 40 per cent. This increase may, however, be abnormal, and as the last three years of the period show a more moderate growth, it will be safe to take the latter as a basis on which to estimato future business.

The number and cost of messages between the Australian Colonies and Europe, for the three years referred to, was as follows:--

1882 1883

1884

No. of Messages.

Cost.

£

39,175

225,567

43,334

251,277

48,896

270,766

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These results give a fair indication of the steady growth of the business under the

present high tariff.

The annual increase in the number of messages is equal to 124 per cent., and the avenge cost of each message sent during the three years 1882, 1883, and 18~1, is of. 13s. 97,; the charge of ordinary messages per word (between Sydney and London) being 10s. 10d.. tiovernment messages Ss., and Press messagus Os, 70,

The undersigned has brought the question of a cable from Vancouver t› Austalia before the Board of Directors of the Canadian Pacific Railway, and has succeeded in effecting arrangements of a most satisfactory character. This Company will, within a few weeks, have telegraphic connexions with all the principal points in the United States, including all the important citios on the Pacific coast, and will be able to transmit messages on such terms as will enable the Pacific Cable Company to secure practically the entire business between the Continent of America and the Australian Colonies. The cable leading from Port Darwin, in the direction of India, will, moreover, enable the new Company to command a very large share, if not all, of the business between America and Asia.

It will be practicable under these arrangements with the Canadian Pacific Railway Company to transmit messages between the Australian Colonies and England at considerably less than one-half, possibly at one-third, the present charges, and between the Colonies and all the important cities in the United States and Canada at one- quarter the rates now exacted.

It is proposed, immediately on the Pacific cable being laid, to lower the charges on ordinary messages between Australia and England from 10s. 10. to 4s. per word. This reduction will bring the cost of an average message from 51. 13s. 94, down to 21., and without doubt will give a very great impetus to telegraph business.

It is not easy

to estimate with any approach to accuracy what increase would result from this cause- men of experience in such matters are of opinion that the business would probably be doubled; but even if we limit our expectations to its ascertained normal growth, and base our calculations on a steady increase of traffic of only 12 per cent. per annum, wo shall see that the advantage of the new line to the Colonies will be immense.

The latest returns with 12 per cent. per annuin added give 85,000 messages for 1889. Assuming that the now cable would then be laid and the Canadian route in operation throughout, the estimate for a series of years would be as follows:-

No. of Messages based on at annual growth

of 12 per cent.

Saving effected, being the difference between af. 138. 9. and 24, or 34. 138. d. per

Message.

£

1889

85,000

313,400

1890

95,000

350,275

1891

107,000

392,550

1892

119,000

438,800

1893

133,000

490,420

1894

148,000

542,050

1895

166,000

612,125

1896

186,000

685,875

1897

208,000

767,000

1898

234,000

862,000

Total

1,481,000

5,456,497

It will thus be seen that, without taking into account any additional increase in

If the

the number of messages which the great reduction in charges would undoubtedly produce, a very great saving would be effected in the Australian business. estimate be well founded it would amount to 5,456,4977. within the first 10 years, being an average saving of over half a million pounds per annum.

The new line when established will form a connexion through South Australia with Port Darwin, and thence by existing telegraph lines with Asia and Africa. obvious, therefore, that it possesses a peculiar interest to the Imperial Government, It is as it will afford the means of communicating not only with the Australian Colonies independently of lines passing through the Mediterranean, but also with India and overy British Station between Hong Kong and South Africa.

Canada has already done much towards establishing the new line of telegraph between Great Britain, Australia, and Asia. She has, by an enormous expenditure in

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