160
THE HONGKONG WEEKLY PRESS AND
COLONIAL SECRETARY. TO CHAMBER.
Colonial Secretary's Office,
14th August, 1896.
When in reply to a question put by the Hon. T. H. Whitehead in the Legislative Council on the 8th inst. the fact was elicited that the total sum received as the proceeds of the special Gap Rock lighthouse rate from 1889 (date of levy) to the 30th June last was $358,521, while the amount expended during the same period for construction of lighthouse, laying of cable, and maintenance was $315,935, showing a balance of $42,586 in hand, my Committtee felt that the time had arrived to ask the Government to re- deem the pledge made by Sir William Des The Secretary, Chamber of Commerce.
Vœux to abolish the extra tax of one and a half cents per ton on shipping.
It may perhaps be useful to quote, for the Information of His Excellency the Governor, the words used by his predecessor at the meeting of Council on the 11th December, 1889, when the Ordinance authorising this special addition to the light dues was passed. The following question, asked by Mr. MacEwen, the then nominee of this Chamber, and the reply of Sir William Des Voeux are taken from the short- hand report:
TE
Mr. MacEwen-The discussion generally takes place on the second reading of Bills, but in a matter of this kind it would be satisfactory to know the length of time it is intended to levy this increase, because, if I recollect cor-
rectly, it was understood that the tax would only be levied in order to pay for the actual cost of the Lighthouse and then be withdrawn. Is that the understanding?
"His Excellency-Most distinctly. The cent will not raise $30,000, and I think we will be very lucky if we get off for $120,000. It will be called the Gap Rock lighthouse rate. and it will involve the special sanction of the Legis- lative Council, and it will naturally cease when the Gap Rock lighthouse is paid off. As it is very inconvenient to levy for a broken period of the year, I think, unless there is strong reason to the contrary, it would be advisable to have a meeting again before the 1st January to pass this Bill. If you prefer a meeting at a later date I am quite willing to agree to that. How ever, as the Council has already practically agreed to this matter, there may be no objec- tion to suspend the Standing Orders, and pass the Bill through all the stages to-day."
The Bill was passed there and then, and, in reply to a request by Mr.Ryrie that Mr. MacEwen's question and the reply thereto should be specially noted, Sir William Des Vœux further said:-
"His Excellency-Of course this will be recorded, and I think it will be just as well to mention in the minutes that Mr. MacEwen drew attention to the matter, and that I said that this extra rate was intended by me to be distinctly a payment for the Gap Rock light house and nothing else. Of course, when Mr. Ryrie talks of a promise, I must say it is absolutely impossible for me to bind my successor about anything. All I can say is that I have not the slightest intention to apply the rate for any other purpose. If a necessity arose for doing
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I should come to this Board and inform it of the fact."
From these extracts it will be clear to His Excellency the Governor that Sir William Des Voeux made an explicit pledge, so far as he was concerned, that when the purpose for which this special Gap Rock lighthouse rate was levied had been achieved the impost would cease. This being the case beyond all cavil, my Com- mittee confidently appeal to the Governor to carry out the expressed intentions of his pre- decessor. in office, feeling sure that His Excel- lency's sense of justice will bind him to the ful- filment of the pledge given to the representa- tive of this Chamber.
The tax of one cent per ton levied prior to 1889, and still imposed, on shipping yields more than sufficient to provide for the upkeep and maintenance of all the lights, and the Com- mittee therefore have the less hesitation in praying for the abolition of the special Gap Rock lighthouse rate.
Trusting that His Excellency will see his way to perform the pledge made by his predecessor without undue delay. I have the honour to be, sir; your most obedient servant,
R. CHATTERTON WILCOX,
Secretary.
To Hon. J. H. Stewart Lockhart, Colonial
Secretary.
Sir, I am directed to acknowledge the re- ceipt of your letter of the 31st ultimo on the subject of the Gap Rock light rate, and to inform you in reply that the matter is receiving the attention of the Government.-I have the honour to be, sir, your most obedient servant, J. H. STEWART Lockhart,
Colonial Secretary.
THE CABLE COMPANIES TO THE CHAMBER,
The Eastern Extension
Australasia & China Telegraph Com- pany, Ld.
The Great Northern Telegraph Company of Copenhagen.
Hongkong Station, 17th August, 1896. B. Chatterton Wilcox, Esq.,
Secretary,
August 27, 1896.
themselves from this posit ment recently signed, fully considered by Her and finally approved, it principle is adopted that the off shall be collected in currency at a valent rate of exchange.
and equ
This would seem to be a simple and logical principle and practice For years past while it has cost 7/- to send a word from London to Hongkong, it has only cost 4 to send one in the reverse direction. Latterly, adva get has been taken of this discrepancy by some firms who prepaid replies to their messages, China (at $2 per word), thus obtaining the advantage of the low rate both ways.
orce
In bringing the new agreement inte the full equivalent of the gold rate has not beg collected, but the tariff homewards is 6/ against 7/- outwards. The result is that the silver tariff from Hongkong and China is less than the silver tariff from Singapore, so that the Chin Hongkong General Chamber of Commerce.
communities are still in an advantageons Dear Sir, In reference to your letter dated the 6th instant regarding increases in tele- position compared with colonies nearer home. graphic charges, I am instructed to state in. As other Telegraph Administrations keep and reply that the action of the Companies has liquidate their accounts in gold, the Companies heen limited to the one point enabling them to have of course had to make all their outpay- coffect in currency an approximate equivalent ments in gold, which has left them a very small –
revenue on the homeward traffic, and in some of their official and authorised gold rates, or, in other words, to escape from the obligation of cases there has been an actual loss. It is quite accepting a depreciated currency at its original silver and gold is slightly better than the true that the present rate of exchange between
lowest point touched during recent years, but as the Companies' par of exchange at the $2 rate is $1, equal to 3/6, it is no figure of speech to quote the "continued depreciation of silver; and if the value of the dollar had gone back to anything like 3/- it is not likely that any change
value.
I have the pleasure to hand you herewith a meinorandum which I trust will be found to contain a clear statement of the recent history of cable charges, and which will, I think, show that the action of the Companies has been con- sistent not only with their own personal inte- rests but also with those of the public.-I am, dear sir, yours faithfully,
J. M. BECK, Acting Manager. MEMORANDUM REGARDING CABLE CHARGES FROM CHINA.
The official rate between China and Europe is fixed in gold at francs 8.50.
This is collected in Great Britain as 78. and in Germany as 7 marks.
In China it was collected as $2, a rate fixed upon when the dollar was worth 3s. 6d.. or thereabouts.
The fall in silver was considered to be culj temporary, until 1892, when the dollar fell to a value below 3/-.
In February, 1893, the Companies, to diminish the heavy loss, added 15 per cent. to the silver rates collected, which then became $2.30. Shortly afterwards the Chinese-Russian connections came into operation with a tariff of $2 per word. The Companies continued to charge the higher figure, but of course at the expense of diverting some traffic to the Chinese lines.
Negotiations were opened with the Chinese Administration with the view of doing, in China, as is done everywhere in the world, namely, to collect the equivalent, in the local currency, of the official gold tariffs. These negotiations were fruitless and matters continued, with a steadily falling exchange and an increasing loss, until 1894, when, owing to the war, the Chinese lines became interrupted.
The Companies could then have raised their silver tariffs, but recognised that to do so tem- porarily would be unadvisable. Again negotia- tious were opened with China with the same objects as above stated, but again fruitlessly.
Towards the end of 1895 the Chinese routes were reopened with the original rate of $2. The Companies then decided to follow, and advertised the same tariff.
In 1893 the Chinese Administration fixed a competition tariff on their land-lines be- tween Shanghai, Amoy, Foochow, and Hong- kong of 20 cents per word—a fighting rate pure and simple and the Companies adopted the same over their cables.
of tariff would have been made.
The Companies, while doing all in their power to safeguard themselves against loss by a depreciated currency, have not shown them- selves unmindful of the claims of the public for a general reduction, and from 1st July next, together with the general service regulations and tariffs of the Buda Pesth Conference, there will come into force a reduced rate of francs 7 in place of the existing francs 8.50.
With regard to local tariffs, a considerable scheme is being elaborated which will show im. portant reductions to India and other countries. For local tariffs an uniform method of calcu- lating has been adopted, namely, to charge 15 centimes per word for 100 knots of cable, and this has resulted in a considerable reduction in those cases where it has been applied.
This system, applied to the Hongkong-Shang- hai cable of 1,000 knots, would work out to. francs 1.50 per word, or $0.55 per word at the present exchange; but the rate is fixed at 40 cents, and again the China communities are placed upon a better footing than any of their neigh- bours.
19
Some exception has been taken to the short notice given of the recent alterations. This was unavoidable, as the agreement contained a clanse the 1st day of the month following its ratifica that the provisions should come into force on tion. The agreement was ratified on the 30th July and notice could not be given before the
31st.
The Eastern Extension The Great Northern Australasia & China Telegraph Company
Telegraph Com- of Copenhagen. pany, Ld.
Hongkong Station, 19th August, 1896. R. Chatterton Wilcox, Esq.,
Secretary, Hongkong General Chamber of Commerce
Dear Sir In reference to the propos
India and other reduction of telegraph
tem countries mentioned in the with my letter of the 17th ins has now been received that the rate from kong to India will probably be red The communities of China and Hongkong $1.80 to $1.20 per word, and that have therefore since 1892, been reaping the tion, together with various others, will s benefit of low competition rates, and the Com-be formally announced. panies, by the pressure of this competition, have I would at the same time draw your been prevented from doing in this region what to the reduction in local rates
o, namely they have done in all other quarters, namely, to force on the 1st ult revise the silver tariffs, as exchange.continued to fall, so as to make them fairly equivalent to
Reduced from To the gold rate.
It is needless to say that no effort has been spared on the Companies' part to extricate
Straits Settlements
Το Penang
Singapor
ch came
$1.807 $1.20
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