132
If, however, the traffic increased 100 per cent. this amount would be reduced to 18,750., or, with the subsidies, to 62,850, which, spread over all the Colonies in proportion to population, would be quite a nominal addition to the existing payments.
If the delegates more particularly interested in the reduction of the tariff to Australia were to give me the opportunity of discussing the question with them outside the Conference, as I suggested last week, we might fully consider the details, and submit the proposition to the Conference in such a form as would limit the discussion to the simple question whether the Colonies are prepared to give a nominal guarantee in return for a reduction of tariff from 9s. 4d. to 4s. per word.
The Right Hon.
Sir H. Holland, Bart., G.C.M.G., M.P.,
&c.
&c.
&c.
Faithfully yours,
(Signed)
JOHN PENDER.
PROPOSITION of the EASTERN EXTENSION COMPANY to the AUSTRALASIAN COLONIES, subject to the approval of all the interested Administrations.
That they should guarantee to the companies carrying Australasian telegrams, viz. :— The Eastern, Indo-European, and Eastern Extension Companies, their annual revenue based on the average of the three years ended 1886, for 13* years, the unexpired term of the duplicate cable subsidy, and make the through tariff 4s. per word.
Average annual traffic receipts of the three companies from Australasian telegrams, exclusive of existing subsidies, viz. :——
Eastern
-
Indo-European
Eastern Extension
133
If present subsidies pooled and distributed over all the Colonies according to population, result would be as follows:-
Victoria
New South Wales South Australia Western Australia
New Zealand Queensland Tasmania
Total
Colony,
SUBSIDIES.
1
Existing Contributions Contribution in in respect of Duplicate respect of New Zealand Cable on 1881 Census. and Tasmanian Cables.
Contribution it Subsidies spread over all Colonies on basis
of l'opulation 1884.
£
£
£
14,478
13,112
12,617
2,500
12,568
1,805
4,266
198
149
5,000
7,698
1,227
4,200
1,780
11,700
14,100
32,400
The following table shows the contribution of each Colony if subsidies and guarantee combined and distributed over all Colonies, according to population on basis of 1884 statistics.
SUBSIDIES and Guarantee combined.
25 per Cent.
50 per cent.
75 per Cent.
100 per Cent.
£
£
£
£
32,00-1
27,605
23,146
30,737
18,686
26,162
22,187
17,912
10,437
8,995
7,533
6,08T
1,099
946
793
610
18,823
16,205
13,587
10,341
10,970
8,902
7,161
6,025
4,349
3,745
3,140
2,536
107,850
92,850
77,850
62,850
£ 52,300
7,700 125,000
185,000
Estimated revenue at a 4s. tariff between Europe and Adelaide, based on present traffic, and assuming that South Australia accept a transit rate of 5d. per word (see table below)
80,000
105,000
Victoria
New South Wales South Australia
Western Australia New Zealand Queensland Tasmania
The companies will take the whole risk of any falling-off of traffic receipts below 80,000/., and also accept one- fourth of the guarantee risk, viz.
Totul
26,250
Leaving as the maximum liability of the Colonies if no
increase of traffic takes place
78,750
PRESENT Traffic showing Proportions at 4s Tariff.
105,000
Class of Traffic.
If the traffic receipts increased by
Number of Words.
25 per cent., the Colonies would have to make up
63,750
Companies' proportion of
48. Tariff,
Outpayments.
Total Tariff.
50
3
"
""
48,750
75
33,750
J. d.
"
"
Ordinary
5. d.
d.
189,000
100
13
"
18,750
distributed as follows:-
Governinent Press
2 54
1
64
4 0
41,000
2 5
1
-
3 11
70,000
1 11
GUARANTEE.
Local (including India)
0 9
2
8
54,000
3 0
10
1 0
Total
054,000
The above proposition is based upon a continuous service and freedom from com- petition. In the event of the communication being totally interrupted, the guarantee to continue for a period of one month.
+
Since the Australian cables were duplicated in 1880 the service with Australia has been interrupted for only 26 days, or on an average of less than four days annually.
Winchester House, 50, Old Broad Street, E.C., April 1887.
Colony,
based on 1884
Population
Statistics.
Amount to be made up, exclusive of Subsidies, if Trafic increased by-
25 per Cent.
50 per Cent.
75 per Cent.
100 per Cent.
£
£
£
£
Victoria -
961,276
18,952
14,493
10,034
5,574
New South Wales
921,268
18,169
13,894
9,619
5,344
South Australia
312,781
6,171
4,719
3,267
1,815
Western Australia
32,958
650
497
844
191
New Zealand
564,301
11,125
8,507
5,889
3,272
Queensland
309,913
6,114
4,675
3,237
1,798
Tasmania
180,541
2,569
1,965
1,360
756
Total .
3,233,041
63,750
48,750
33,750
18,750
• At the end of the term the question would have to be reconsidered with a view to a fresh arrangement.
A 51431.
Y
PUBLIC RECORD OFFICE
Reference :-
5 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
CO. 885/5
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