September 24, 1896.]
CHINA OVERLAND TRADE REPORT.
funds, to £721,531. The Danish Company hemispheres. No one can begin to urge that paid 8 3-5th per cent. per annum for 1892, the Telegraphic Companies were rendering a 1898, and 1894, and 10 per cent. per annum for great public service for which they were in. 1895-the gross receipts in 1895 were £55,935 sufficiently remunerated. Let me again repeat more than in 1894-and it carried forward at that by ratifying the Convention the British 31st December last £58,055, thus increasing its Government has not in any way subserved any reserve and balance, after last dividend, to political purpose. The only persons who will £998,996. These are immense profits, and they derive benefit therefrom are the shareholders in were earned out of previous rates, thus demon- two Telegraph Companies, one Danish and the strating conclusively that the tariff levied up other English, and both purely private institu- to 31st July this year was unnecessarily high tions. The ratification of the Convention has en- and could have been modified, which would no abled the Companies at one day's notice to raise doubt have been followed by a greatly increased and exact rates which cannot but be regarded as traffic, high rates necessarily restricting tele-excessive and injurious to the best interests of graphic communication. The competition of foreign trade and commerce. This Chamber the Chinese Telegraph Administration up to therefore feels fully justified in placing on re- the 1st of last month had kept the rate to cord its earnest and emphatic protest against Europe at $2 per word, but the Chinese Her Majesty's Government having assented to Government having been forced into the the recent Convention between the Eastern new Agreement by the European Powers Extension and Great Northern Telegraph the Telegraph Companies-England having Companies and the Chinese Telegraph Ad- ratified the Convention which gives them ministration, inasmuch as the said Convention: an absolute monopoly are now thereby gives the Telegraph Companies an absolute enabled, at one day's notice, to raise the monopoly which was immediately utilized by rates from the Far East to Europe 37 per the Companies to the extent of 37 per cent. cent, to America 43.26 per cent., and for local to Europe, 43.26 per cent. to America, and 100 telegrams 100 per cent. As the Editor of the per cent. on local messages. (Applause.) North China Herald, in his issue of the 21st alt., very pertinently remarks:-
"The influence which the Cable Companies can bring to bear has been too much for our Home Government, and they have approved the new Convention. It is a disgrace to foreign- ners that they should have coerced the Chinese into this retrograde step. In China, monopolies are provided against in the treaties made by Foreign Powers; and here we have two of the same Powers, Great Britain and Russia, forcing a monopoly on China to the disadvantage of the mercantile community. Our hope lies in a Pacific cable. That one will be laid before long is certain, and the desire of the existing Cable Companies to raise the rates has been stimulated by the wish to collect large reserve funds to help them in fighting this future competitor. In fact, the merchants in China are being squeezed now to enable their telegraphic masters to fight the Company which promises to liberate trade from its new fetters. If the shareholders in the Cable Companies had been carrying on business for years at a loss we might sympathise with them; but they have made, as we showed recently, very handsome profits. Mr. Alford, Chairman of the Shanghai Chamber of Com- merce, wrote to the Cable Companies on the 11th-Your directors are apparently ignorant or have ignored the fact that though the volume of trade may be increasing the margins of profit have narrowed to an extent which often causes telegraphic expenses to check business, and your action therefore means that messages will be restricted in every possible manner both in number and in length. Thus, whilst your revenue will probably derive little or no advantage, you will have turned satisfaction into dissatisfaction among those to whom you are almost entirely indebted for your success in the East."
The Telegraph Companies have been managed with consummate ability, and their secret nego- tiations with the British Government have been conducted with great diplomatic skill. In a communicated article in the North China Herald of 25th August, 1892, the following appeared :-
"It was the Foreign Ministers at Peking, of the countries to which the Great Northern Telegraph Company and the Eastern Extension Telegraph Company belong, who in 1883 moved the Tsung-li Yamên to sanotion a working agreement with the English and Danish Cable Companies, to last for twenty years, without imposing on the Companies any restriction whatever as regards their tariffs."
While appreciating the importance of the Company's telegraphic system, and recognis- ing its claim to favourable consideration, the Government should have stopped short at ratifying any convention which would create anything in the shape of a monopoly, or which would prevent the establishment of additional lines or other improvement in the service here- after deemed necessary. What has been done is a retrograde step of immense magnitude, and must be attended with the most injurious re- ults, for many years to come, not only to the Chinese Government, but to the enormous trade carried on between the Eastern and Western
MR. D. R. SASSOON-I have much pleasure in seconding the motion. Mr. Whitehead has put the case so clearly before us that I do not think I can say anything to make matters clearer. I think we are all fully persuaded that the action of the Telegraph Companies is not at all right and that they have placed restrictions where restrictions ought to have been taken off. I have much pleasure in seconding. (Applause.)
Carried unanimously.
235
how the feeling is running amongst the com- mercial community and their supporters. The Committee of this Chamber, I am quite sure, will do its utmost to make this resolution known as widely, as possible all over the wor so that any parties who may have a special in- terest in this question shall become aware of it. I have also no doubt that not only
the members of this Chamber but everyone in the Far East will heartily welcome and support any competition that may be established which has for its purpose opposition to the two cable companies. (Loud applause).
Mr. GRANVILLE SHARP-Mr. Chairman and gentlemen, we shall all feel the truth of the remarks made by. Mr. Jackson about the unfailing courtesy, from generation to genera- tion, of the managers of the United Telegraph Companies. The time having passed, which has been so felicitously described as the period of profitable seclusion, it seems the only course open to the members of the China trade is to develop, by every possible means in our power, and to increase in every possible way, the volume of business between the Chinese Empire and the home countries in order that those who have in the past profited by the liberal margins which existed in business may in the future do as well as formerly-who knows that they may not do better by the increased-vo- lume of trade which is done by them. This, gentlemen, can only be accomplished in one way, and that is by the increase in every possible manner of cheap and rapid steam and electric communication between China, not only the ports of China' but the length and breadth of the Chinese Empire, and Western countries. The CHAIRMAN-Gentlemen, I have been This is essential. And there is no way out of. asked to move the third resolution, and do so it.. It cannot be done without. We must have with pleasure, believing that, in order to render constant communication; we must have rapid our protest effective, we must make the Telecommunication; and we must have cheap com- graph Companies understand that we are inmunication. Everyone in the China trade, whe- earnest. This is not a mere formal protest, ther here or in the north, it seems to me, and we do not intend, if we can help it, to let has three interests to serve. He has to the matter rest here, with a mere expression of serve himself, he has to serve those by indignation. The resolution I have to propose whom he is employed, and—a far larger and pledges the members of this Chamber to assist wider interest he has to serve those people and support any company that may lay a cable who, directly or indirectly, are connected with hither either from Vancouver or San Francisco, his employers at home, of whom there is hardly and that, while guaranteeing us an efficient any limit. I say emphatically there is not a service/will agree to charge reasonable rates for man, woman, or child in the United Kingdom telegrams. I hope we all regard this seriously, who is not interested in the China trade-in and it will become our interest and duty to do our the China export and in the China import best to encourage the projectors of these Pacific trade. Therefore he may have a feeling that cables to push their schemes into accomplishment. he is patriotically as well as profitably en- I notice from the proceedings of the third Con- gaged in the pursuit of his duties in China. gress of Chambers of Commerce held in London It is only now that the Chinese Empire in June last that a resolution was adopted in has sent forth her most influential statesman favour of a Canadian-Australian cable as a step upon a tour to the Courts and the capitals towards a competitive route to India. This if of Europe and the United States for the carried into effect would be a move forward in purpose of evincing her desire to increase the direction we are aiming at. There is no the intimacy of her communication and the doubt that a cable across the Pacific would in magnitude of her transactions with other any case in time prove a successful enterprise, countries; and the way in which he has been and if we could guarantee it the main if not received has proved that these feelings are the entire business of the Far East I think the abundantly reciprocated by Europe and by the inducement to lay such a cable, will be very United States. In the midst of this gratula- great. It would, moreover, complete the tele- tion and joy comes a dark cloud and a graphic girdle round the world, and that is much discordant note from the very quarter from to be desired as tending to further economy of which we might least have expected it. time in means of communication. 'Of course there is any company in the Far East which is if the Telegraph Companies meantime agree interested directly in the increase of the volume to reduce the rates they have recently in- of business of China it is indeed the United creased so heavily, the Pacific Cable may Telegraph Companies, and it seems to me that be deferred for some time, though there is their action in this respect is wholly undefended little doubt that it will be laid before the and is absolutely indefensible. (Applause.) next century gets into its teens. Let us hope, And therefore I can only hope that our/motives. however, that the Telegraph Companies will see will be thoroughly understood, that we are not the sweet reasonableness of making a timely only noting selfishly, that we are not only concession to those who have been such excellent acting for those whom we represent, but constituents to them in the past. With these that we are acting for other countries at remarks, gentlemen, I beg to propose the third home, for our fellow-countrymen, for the world resolution, as follows:-"That the members at large, when we endeavour to discourage and of this Chamber, in the event of the Eastern Ex- oppose the combination which I cannot help tension and Great Northern Telegraph Com- characterising as contra bonos mores and op panies refusing to reduce to a reasonable level posed to the best interests of mankind. (Ap. the high rates now levied by them, pledge them- plause.) selves to give their fullest assistance and sup- port to any Company that, while providing an efficient service, will agree to charge moderate telegraphic rates between the Far East and Europe and America." (Applause).
Mr. ST. C. MICHAELSEN-I have great This pleasure in seconding this resolution. resolution, in my opinion, is the most im- portant one, and I am sure that every one in this room will heartily and fully support it, and thus show the two Cable Companies
If
The resolution was then put to the meeting and carried unanimously,
The CHAIRMAN--That closes the business as regards the telegraphic rates.
Several members thereupon left the room,
THE RE-NOMINION OF MR. WHITEHEAD -
TO THE LEGISLATIVE CO The CHAIRMÁN—A =| gentlemen, fallen to my lot The Hon. T. H. Whitehead, who has for six
མ་-
No comments yet.
Private notes are available after approval.