128
promoters of the Pacific Cable Company), in which case the communication would not be under exclusive British control as contended by Mr. Heaton.
A single line of cables across the Pacific would, moreover, be necessarily subject to frequent interruptions, as they would consist of long stretches across enormous, and only partially surveyed depths, terminating on coral reefs. From the soundings taken by the S.S. Tuscarora " between San Francisco and Australia great inequalities of ground appear to exist. For instance, between San Francisco and the Sandwich Islands the depths vary from 400 fathoins to 3.200 fathoms, the general depth being over 2,500 fathoms. By the second line of soundings between San Francisco and the Sandwich Islands, taken by the same vessel further south, the depths seem to be more regular, but they mostly exceed 2.500 fathoms. From the Sandwich Islands to Fiji the ground varies from 400 to 3,400 fathoms, the inequalities being particularly noticeable between the Phoenix and the Fiji Islands. The general depth is about 3,000 fathoms. Between Fiji and Brisbane there are also considerable" inequalities, the depths varying from 2.600 fathoms to 460. Superiority of cable ground cannot, therefore, be claimed for this route over the route followed by the existing cables.
The Canadian-Pacific land line, passing as it does through exposed and stormy regions, would also at certain seasons of the year he very difficult to maintain. Only a few days ago a telegram from Halifax appeared in the newspapers. stating that
"the six days block on the Intercolonial Railway had been raised, but before the trains could be moved any distance another furious snowstorm set in and the line was blocked worse than before."
The figures (7.000 miles) given by Mr. Heaton for the cables between Vancouver and Australia differ very materially from those put forward by the promoters of the Pacific Cable Company and Mr. Sandford Fleming, namely, 8.300 and 8,900 miles respectively. Mr. Heaton bas, apparently, made little or no allowance for slack, which in such great depths of water could not be calculated at less than 20 per cent.
Assuming, however, for the sake of argument, the accuracy of Mr. Heaton's calcu- lations, the cost of the Pacific cables would be about 1,400,0007.
Before, however, reaching Vancouver, working arrangements would have to be made with the lines of the British Government, the Atlantic cable, and the Canadian-Pacific administrations for transmission of the telegrams between England and the Pacific cables, and the out-payments to these administrations could not, under the most favourable circumstances, amount to less than 1s. per word, but would probably be 2s. per word when the war of tariffs in the Atlantic is terminated, it having already been abundantly demonstrated that a 6d. rate is insufficient to give a fair return on the capital invested in the Atlantic.
For instance, the out-payments to the-
Atlantic cable would be Canadian Pacific land line English and Australian line
s. d.
-
(6 or more probably 0
0 3
1 0
*. d. 1 6
per word. 0 21 031
or 20 per word.
consequently the whole of the tariff which Mr. Heaton considers would be so remune- rative would undoubtedly be swallowed up by other administrations leaving nothing whatever for the Pacific cables.
Assuming that the out-payments would not exceed 1s. per word, and that one half of the existing traffic with 100 per cent. increase in consequence of the reduced tariff was carried by the Pacific cables, a rate of 48. 8d. per word would be required to pay working expenses only as shown by the following figures:—
Length of Pacific cables
Capital, say
Tariff
made up as follows:-
7,000 miles 1,400,000/.
4s. 8d. per word.
129
Expenses.
Cost of four stations and London expenses Two cable steamers and repairs Amortisation to renew cables in 20 years
Receipts.
**
£
£
20,000
40,000
50,000
110,000
Half of existing traffic, with 100 per cent. increase,” Bay 600,000
words at 3s. 8d. per word
110,000
To give a return of 5 per cent. on the capital, a rate of 13s. per word, or 41 per cent. more than the existing tariff, would have to be charged as follows:—
Expenses.
As above Interest at 5
per cent.
:
Receipts.
£ 110,000 70,000
£
180,000
Half of existing traffic without any increase,t say 300,000 words at
12s. per word (1s. in addition for out-payments)
-
180,000
Without amortisation, and with only one cable steamer, a tariff of 4s. 8d. per word would be required to meet expenses and give 5 per cent. return on the capital, as follows:-
Expenses.
Cost of four stations and London expenses One cable steamer and repairs
Interest at 5 per cent. on capital
Receipts.
£
£
20,000
20,000
40,000
·
70,000
110,000
Half of existing traffic, with 100 per cent. increase, say 600,000 words £
at 38. 8d. per word
110,000
With regard to the Canadian-Pacific cable being used as an alternative route from Europe to India, Mr. Heaton omits to state that from Adelaide to India the telegrams would have to pass over the lines of the South Australian Government and the Eastern Extension Company, the out-payments on which would amount to 78. 10d. per word, making the total rate to India via the Pacific 12s. 6d. per word as against 48., the existing charge by the Eastern Company's route.
It might, however, be contended that these out-payments could be avoided by laying an independent cable between Australia and India. Such a connexion would, however, involve an expenditure of half-a-million sterling, and the working expenses alone would be nearly eight times as great as the whole traffic between Australia and India is worth.
£ Cable from Western Australia to India-2,900 miles, costing (say) 500,000
Expenses.
8. d.
For Pacific cables
3 8 per word.
Say two stations at 2,000l. each
Atlantic cable and English, Canadian-Pacific,
and Australian land lines (say)
Total
Amortisation to renew capital in 20 years
1 0
Steamer and repairs
4 8 per word.
£
4,000
17,700
20,000
41,700
• This increase could not be expected at once, but would in all probability take a considerable time to realise. † No increase could be expected with such a high tariff as 135.
A
91431.
X
PUBLIC
RECORD OFFICE
Reference :-
BELLICO. 885/5
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON
130
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