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fi^t,ne> /S 
 
 ^ 
 
 CHARTER 
 
 OF THK 
 
 m lorl, Mewfoundland 
 
 ANi 
 
 
 ■^■-* 
 
 ottd0tt ielet|ta|ih a^ompng. 
 
 %t%txM $n-fm]?tion |li# of t|e 6obtnuntat of 
 
 Bttofotin&lanti. 
 
 1873 
 
 ^* ^ 
 
(-h 
 
14 '^o 
 
 CHARTER 
 
 OK TIIK 
 
 NEW YORK, NEWFOUNDLAND 
 
 AKD 
 
 :0tt^oti Dekgn^l C0mj^attg; 
 
 EESEJtVED FJtE.EMPTION BIGHT OF THE GOVERNMEXT OF 
 
 NEWFOUNDLAND. 
 
ACTS OF LEGISLATURE AND OPINIONS OF 
 
 COUNSEL. 
 
 In the year 1854 an Act, entitled "An Act to incorporate a 
 company under the style and title of the New York, Newfound- 
 land and London Telegraph Company/' received the assent of 
 the Legislature of Newfoundland. 
 It passed 15th April, 1854. 
 
 The following are the 14th and 15th clauses of said Act, 
 which have reference to a reserved pre-emption right : 
 
 14. The corporation hereby created shall have the sole and 
 exclusive right to build, make, occupy, take or work the said 
 line or any line of telegraphs betw^cen St. John's and Cape Ray, 
 or between any other points in this island, (excepting only the 
 existing line between St. John's and Carbonear,) for the full 
 period of fifty years from the passing of this Act, subject, never- 
 theless, to the right of pre-emption by the Government of this 
 colony! as hereinafter provided; and during the said period of 
 fifty years no other person or persons, body or bodies, politic or 
 corporate, shall be permitted to construct, purchase, take or ope- 
 rate any line or lines of telegraph on this island, or to extend, to 
 enter upon, or touch any part of this island, or the coast thereof, 
 or of the islands or places within the jurisdiction of the Govern- 
 ment of this colony with any telegraphic cable, wire, or other 
 means of telegraphic communication, from any other island, 
 country or place whatsoever : Provided, however, that if the said 
 line of telegraph shall not have been completed from St. John's 
 to Cape Ray or other point on the western coast of Newfound- 
 land, and a communication by telegraph across Prince Edward 
 Island, or the island of Cape Breton, or otherwise, established 
 with the continent of America, within five years from the passing 
 of this Act, the exclusive privileges granted by this section shall 
 
 cease. 
 
 15. If at any time after twenty years from the passing of 
 this Act it shall be deemed advisable by the Governor in Coun- 
 

 I 
 
 I 
 
 cil that the lines of telegraph and other property of the said 
 company shall be transferred to and vested in the Government 
 of this island, it shall be lawful for the Governor to cause a writ- 
 ten notice to be given to the said company, which shall be served 
 upon the President, or Director or Manager in this island, which 
 notice shall state that the Government has decided upon becom- 
 ing the holder of the said lines and other property, and there- 
 upon the Governor and Company shall each choose an arbitrator, 
 and the arbitrators so chosen shall appraise the telegraph lines^ 
 wires, cables, apparatus, vessels, and all other property connected 
 therewith, and if they cannot agree they shall choose a third as 
 umpire, and if they do not make such choice the Supreme Court 
 shall appoint an umpire, and the appraisement of any two of 
 them shall be taken as the true and just value of the said pro- 
 perty, and after the expiration of one year from the time the 
 award of the arbitrators shall have been communicated to the 
 Government and the company, and after the payment made or 
 tendered in manner hereinafter provided, all and singular the 
 said telegraphic lines, wires, cables, apparatus, vessels, and other 
 property so appraised shall become the property of Her Majesty, 
 for the benefit and publie use of this island, and shall be held 
 thenceforth free and discharged from all claims of such company 
 or shareholders thereof, or any person whomsoever, and ti.e 
 Government shall draw warrants on the treasurer of this colony 
 for the payment to such company of the amount so awarded as 
 aforesaid, and the payments in discharge of such warrants shall 
 be made or tendered by the treasurer aforesaid to the President 
 and Directors of the said company, or their Director or Manager 
 in this island, as the Governor shall direct and appoint, but this 
 section shall not apply to any lands granted to the said company 
 by virtue of the loth and 22nd sections of this Act, nor to the 
 proceeds thereof, or any land or property purchased with such 
 proceeds, nor to the bonuses to be paid to the said company, or 
 to any land or property purchased with the same or any part 
 thereof, nor to any mines or minerals, or the property connected 
 with the management or working of such mines or minerals. 
 
 What is the force of these clauses, and what their legal in- 
 terpretation, will appear from the following joint opinion of Sir 
 
Richard Baggally, head of the Chancery Bar in England, and 
 Henry James, Q. C: — 
 
 We are of opinion that the Government of Newfoundland 
 can, at any time after the 15th of April, 1874, exercise its rights 
 of pre-emption, and take possession of the telegraph lines and 
 plant of the New York, Newfoundland and London Telegraph 
 
 company. 
 
 In the event of the Government exercising such ^rights, we 
 are of opinion that the amount to be paid by the company will 
 be the value of the property of the company, such as poles, wires, 
 cables, apparatus, &c., to be valued, not as mere materials, but 
 as erected for the purposes of telegraphy. 
 
 But the company will nut be entitled to receive any sum for 
 the value of its business, nor any compensation for good-will, or 
 in relation of the future earnings of the company. 
 
 The company is incorporated, and obtains the powers under 
 the 7th Vic, C. 2., (Newfoundland Act). By the 14th section the 
 compan) obtained an exclusive right as against other companies 
 and individuals to erect and work telegraph lines within the 
 colony for fifty years, subject to the power of the Governor in 
 Council to determine that right at the end of twenty years. By 
 the 15th section, if the right of pre-emption bs exercised, arbi- 
 trators are to be appointed who shall appraise " the telegraph 
 lines, wires, cables, apparatus, vessels, and all other property 
 connected therewith ;" and on payment of the amount of valua- 
 tion, all that which is above mentioned becomes the property of 
 the Government of the colony. 
 
 Throughout the whole of the Act we can find nothing which 
 points to any compensation being paid for the business or good- 
 will, but only for the chattels and actual property of the company 
 Whilst the word " property " sometimes has an extended 
 meaning, it is clearly used in the 15th section as applying only 
 to things eJHsdem generis, with wires, cables, apparatus, &c. 
 
 We would observe, that when it was intended, under the 
 English Act (31 & 32 Vic, C. 90) to give compensation for the 
 future profits of the telegraph lines purchased by the Govern- 
 ment, the words were clear and explicit, that " twenty years' pur- 
 chase of the net profits " during the year preceding the passing 
 Act should be paid to the companies.— See sec 8). 
 
The reason why no compensation is to be paid to the New- 
 foundland company for good-will or future profits is, that that 
 company obtained twenty-years' exclusive right as a return for 
 their outlay, which the Fnglish companies never had. 
 
 For the above reasons we are of opinion that the Ne^ York, 
 Newfoundland and London Telegraph company is entitled to no 
 payment for good-will in the present or future, nor for any value 
 of its business, but only for its plant, &c., plus the cost of erecting it. 
 
 (Signed) Richaki) Baggally. 
 (Signed) Hk\ry James. 
 Lincoln's Inn, ist April, 1873. 
 
 On the ^rd March, iSc;, another act was passed entitled 
 " An act further to amend an act passed in the seventeenth year 
 of Her Majesty's reign, entitled an act to incorporate a company 
 under the style and title of the New York, Newfoundland, and 
 London Telegraph Company." The following is the 4th clause 
 of this act : 
 
 4. Nothing in this act shall effect any lien, claim, right, 
 title, interest, or privilege secured to the Imperial Government or 
 to the Governments of Newfoundland and of every other of the 
 North American colonies and of the United States respectively, 
 under the provisions of the said first-recited act or of any act in 
 amendment of the same, and such lien, claim, right, title, interest, 
 and privilege shall exist and be in force with respect to any new 
 lines or cab'es that may be established by the said companies or 
 either of them in this island, and between this island and the 
 continent of America. 
 
 Sir Richard Baggally's opinion on the effect of this act was 
 also obtained, and is as follows : 
 
 I have perused the second and third of the above-mentioned 
 acts— viz., the colonial acts, 20 Vic. Cap. i, and 20 Vic. Cap. 17— 
 and see (4) no occasion to modify the opinion given by Mr. James 
 and myself, under date the ist instant. The latter act merely 
 confers power to increase the capital of the company ; and I can 
 see nothing in the former to deprive the Newfoundland Govern- 
 ment of its power to determine the concession at the expiration 
 of twenty years, secured to it by the act of 1854; but on the 
 
"" 
 
 "*w 
 
 contrary, an express provision that all the rights of the Govern- 
 ment under that act are to remain in force. 
 
 (Signed,) RiciiARi) BaggallY. 
 
 yd April, 1873. 
 
 The further opinion of the same eminent counsel was obtained 
 as follows : 
 
 At a meeting of the French Cable company, held on the 
 23rd of May, 1873, a shareholder in that company, commenting 
 on the foregoing opinions of Sir Richard Baggally and Henry 
 James, Q.C., (which were published in the Times) stated that the 
 solicitor who prepared the case upon which they were written 
 " had wholly omitted this important fact,that the exclusive right to 
 land cables on the shores of Newfoundland exists totally inde- 
 pendent and distinct from the right of pre-emption of the New- 
 foundland Government in respect to the poles and wires upon the 
 island." And furthermore, that he had " omitted to call the 
 attention of the learned counsel fully and fairly to the case, and 
 he pointed out that he had not sufficiently called the attention o 
 counsel to the important fact that " when once the Newfoundland 
 company becomes amalgamated with the Anglo-American com- 
 pany it altogether ceases to be a property upon which the right 
 of pre-emption exists." 
 
 Mr. John Horatio Lloyd, at the same meeting, is reported to 
 have said, that " he had no reason to doubt the opinion he had 
 already given on this question, that if the Newfoundland company 
 were consolidated with and merged into the Anglo-Amencan 
 company the Newfoundland Government no longer possessed 
 the right of pre-emption, inasmuch as the Newfoundland company 
 being consolidated into another company would no longer possess 
 any existence as a separate corporation, and could not perform 
 any acts by itself apart from the company in which it was 
 
 merged." . 
 
 Counsel were requested to consider the observations stated 
 above, and advise whether they see any reason to alter or modify 
 the previous opinions. 
 
 We believe the questions raised in the .;ase have been fully 
 brought before us. We see no reason to modify our former 
 
8 
 
 opinions in any way. By section 4th of act of 1857, the right of 
 
 p:e-emption is clearly reserved. 
 
 Richard Baggally, 
 
 Henry James. 
 Lincoln's Inn, May 31st, 1873. 
 
 Inasmuch as some of the company's advisers and agents in 
 this colony have contended that the 14th and 15th sections of the 
 act of 1854 give the company two distinct monopolies, of which 
 ihe first is the exclusive right to make and work the land lines 
 within the island, and the second is the exclusive right to land 
 cables on the coast of the island, and that the proviso reserving 
 to the Governnent of the colony the rigl-»t of pre-emption does 
 not touch the latte*- of these two monopolies, accordingly that 
 the right of landing cables does not determine with the exercise 
 of the Government's pre-emptive powers, but survives that event 
 for the unexpired term of thirty years, the opinion of eminent 
 counsel was obtained on this point, and is as follows : 
 
 We are of opinion that there is not under the act of 1854 a 
 separate substantive concession of a right to land cables on the 
 island of Newfoundland, independr -.t of and capable of surviving 
 the right of making and working the land lines. Moreover, if 
 there were under that act an independent substantive concession 
 of a right to land cables, the right .so conceded would, in our 
 opinion, be "property" of the company, which is subject to the 
 right of purchase conferred upon the colonial government by the 
 15th section of the act. 
 
 Richard Baggally. 
 
 Edward Fry. 
 
 Henry C. Phear. 
 Lincoln's Inn, 14th July, 1873. 
 
 The importance of the colony of Newfoundland exercising 
 the pre-emptive right thus secured by an act of the Legislature, 
 will appear from the foHowing memorial: 
 
 St. John's, May i6th, 1873. 
 
 Sir, — The questions which have arisen in regard to the 
 position and rights of the New York, Newfoundland and London 
 Telegraph Company, in relation to the Government of New- 
 foundland, sccin to render it desirable that the policy which the 
 colony intends to purr.uc in the matter should be ascertained, if 
 
possible, without delay. I have therefore been r.;quested to 
 visit St. John's for the purpose of communicating with the 
 Government on the subject; and I would now venture to call 
 their attention to the following considerations, which render it 
 of paramount importance not only in the interests which I repre- 
 sent, but those of the communities on both sides of the Atlantic, 
 that no delay should be allowed to perpetuate the present un- 
 certainty in regard to the prospects of ocean telegraphy between 
 the two Hemispheres. I will not presume to enter into the 
 merits of the questions sending between the Company and New- 
 foundland, and in reference to the extraordinary position 
 attempted to be maintained by the company, that the solemn 
 provisions of a charter can be abrogated by an act of amalgama- 
 tion, a contingency for which no provision was made in the 
 original charter, and to which no allusion is made in the sub- 
 sequent act. 
 
 I will assume that the public announcement of your Ex- 
 cellency, that the colon)' does not intend to waive its right of 
 pre-emption, implies that in the opinion of the Government the 
 right exists; and it is to the effect which this declaration has 
 made upon the public mind that I especially desire to draw 
 attention, as a reason why it is scarcely just to the great interests 
 at stake on both sides, that the Government of the colony should 
 not supplement this expression of opinion on the part of your 
 ' Excellency by something more explicit. 
 
 At this mom<;nt all telegraphic enterprise is paralyzed so 
 far as the laying down of new lines is concerned. Out of three 
 wires crossing the Atlantic, only one is, at this date, in working 
 order. The tariff has been raised to six shillings a word; the 
 last wire may break to-morrow, and it is impossible for any new 
 ' company to begin to construct a cable by which such a catas- 
 trophe might be anticipated and the tariff reduced to reasonable 
 rates, unless the Government of Newfoundland will clearly 
 declare whether it means to exercise its right of pre-emption or 
 not. It is evident that a prolonged reticence on the subject may 
 be fraught with the most serious consequences, not only to the 
 ' interests which I represent, but to the amalgamated companies, 
 whose shares have already suffered a depreciation in consequence, 
 and to the public at large. This situation is the more compli- 
 
10 
 
 ll 
 
 cated, because since I have been in St. John's I have had reason 
 to believe that the public opinion of this colony is coming 
 strongly round to the conviction that the interests of the colony 
 demand the abolition of the monopoly. They are beginning to 
 ask themselves what advantage they have ever derived from a 
 monopoly which has availed itself of the geographical position 
 of Newfoundland to develope into a gigantic corporation, with a 
 nominal capital of seven millions sterling, not one farthing of 
 which goes to the revenue of the colony ; and they are at a loss 
 to discover what return, beyond the privilege of receiving trans- 
 Atlantic messages, via New York, two days after they have 
 passed through Newfoundland, this colony has received, in 
 return for the lOO square miles of land it has granted to the 
 company, which that body has had the sagacity not yet to 
 select, but which it has publicly stated to be worth several 
 millions sterling. 
 
 It is becoming, on the other hand, evident to everybody who 
 has considered the subject, that the abolition of the monopoly is 
 the commencement of a new industry for the colony ; that inas- 
 much as owing to its geographical position, its shores, were they 
 free, would become the landing-places of all cables that are laid 
 from Europe to America, the control of the land lines would rest 
 exclusively with the local Government, and would provide it not 
 merely with a permanent and ever increasing source of revenue, 
 but invest the colony with a political importance and influence, 
 in its relations with the rest of the British North American colo- 
 nies and the United States, that has hitherto been denied it. 
 
 These, however, are questions affecting colonial and not pri- 
 vate interests, and if T. allude to them now, it is only to justify 
 my assertion that these very palpable considerations are forcing 
 themselves irr \sistibly upon the public here, and that they have 
 strengthened the conviction in my mind that the abolition of the 
 monopoly is a moral certainty, but one unfortunately which can- 
 not be acted upon unless supported by an expression of opinion 
 on the part of the Government, in the same sense. For want cf 
 this expression, companies now in process of formation cannot be 
 constituted until it is settled. From a financial point f view, 
 then, it would be even more desirable for all parties cot jrned to 
 have an adverse declaration from the Government than none at all. 
 
11 
 
 id reason 
 > coming 
 le colony- 
 inning to 
 d from a 
 position 
 n, with a 
 rthing of 
 at a loss 
 ng trans- 
 ley have 
 ived, in 
 2(1 to the 
 : yet to 
 I several 
 
 ody who 
 lopoly is 
 ;iat inas- 
 ^ere they 
 : are laid 
 ould rest 
 de it not 
 revenue, 
 nfluence, 
 :an colo- 
 dit. 
 
 not pri- 
 3 justify 
 e forcing 
 ley have 
 )n of the 
 lich can- 
 opinion 
 want cf 
 annot be 
 f view, 
 jrned to 
 ne at all. 
 
 n 
 1 
 
 The question is assuming in England a gravity of importance 
 fully equal to that which it must now attain in Newfoundland^ 
 because the Imperial interests involved are proportionately greater 
 than the colonial, and it is fortunate that upon this occasion the 
 policy which Is the most advantageous is precisely that which 
 will be most acceptable to the Government and public of 
 England. 
 
 I trust I have clearly shewn that no good end can be attained 
 by allowing the state of doubt and uncertainty which now sur- 
 rounds this question to be prolonged, while it is in the interest 
 of the mother country no less than of the colony, and of the 
 amalgamated companies no less than of those who compete with 
 them, that the views of the present Government at all events, on 
 a question of policy of such vital importance, should no longer 
 be allowed to remain in mystery. 
 
 I have the honor to be, 
 
 Your obedient servant, 
 
 L. Oliphant. 
 
 Bank of Commerce, Lotiibury, April 5. 
 Sir — 
 
 I have to ask your Excellency to excuse me for sending you 
 a telegram yesterday, and to thank you for your kindness in 
 replying to it. 
 
 The facts which led me to take this step are as follows : 
 
 A few months ago Mr. Field brought out a company here 
 called the New York, Newfoundland and London Telegraph 
 Company. In the prospectus of this company it was stated that 
 the object of the company was to take over " the exclusive con- 
 cession, for fifty years from 1854, to land and work cables and 
 telegraphs in Newfoundland, and on the Atlantic shore of Lab- 
 rador." Shortly afterwards, the Direct United States Cable 
 Company was brought out and fully subscribed. I went on the 
 board, as I am interested in the " Daily News," and we find the 
 present charges upon trans-Atlantic telegrams press very heavily 
 upon us, whilst we are precluded by these charges from obtain- 
 ing many items of news from the American continent by cable,, 
 which might be interesting to the public. 
 
 1 have come to the conclusion, aftei careful, inquiry, that 
 
12 
 
 111 
 
 the possibility of cheap trans-Atlantic telegraphy depends upon 
 Newfoundland being thrown open to telegraphic enterprise, and 
 all companies being allowed to use your land lines, at a tariff 
 remunerative to your colony. 
 
 Under these circumstances I turned my attention to the 
 position of Mr. Field. In his prospectus I found the two follow- 
 ing clauses : — 
 
 " The Act constituting the Company contained a provision 
 giving the Government of Newfoundland the right to purchase 
 at any time after April 15, 1874, the company's telegraph lines 
 (but not its land rights) at a valuation to be fixed by arbitration. 
 
 " In view of a consolidation of the companies carrying the 
 Atlantic traffic, the Newfoundland Legislature has since passed 
 an Act under which the Newfoundland company has the power 
 to enter into an agreement for an amalgamation with the Anglo- 
 American and French Atlantic companies." 
 
 The inference, I presume, intended to be conveyed by the 
 strange use of the word " contained," and on which the capital 
 was raised, is that the second Act abrogates the first Act, and 
 this was the ground taken by the lawyers of the company. 
 
 These Acts I submitted to Sir Richard Baggally and Mr. 
 James, O.C. The opinions of these gentlemen I published in the 
 Times. As soon as these opinions were made public, counter 
 opinions were attempted to be obtained from the Solicitor-Gene- 
 ral and two other eminent counsel. Unfortunately, however, as 
 I am informed, per Mr. Field, these opinions confirmed those of 
 Messrs. Baggally and James. 
 
 In the afternoon of yesterday, it was stated by Mr. Field's 
 friends that a bill was being passed through your Legislature to 
 grant that gentleman a concession for thirty years more, without 
 any right of termination by your Government. I felt that if this 
 were true, your Excellency should be informed of what has 
 taken place here. I therefore begged a friend of mine to call 
 upon the Earl of Kimberley, and ask him to communicate with 
 you. Lord Kimberley said that he knew of no such bill, and 
 having no knowledge of it, did not see how he could approach 
 you on the subject, adding, that if passed it would come over 
 here for ratification, when it might be considered. Under these 
 
13 
 
 ds upon 
 
 rise, and 
 
 a tariff 
 
 ti to the 
 3 follow- 
 
 )rovision 
 purchase 
 ph lines 
 )itration. 
 
 ^ing the 
 i passed 
 e power 
 I Anglo- 
 
 [ by the 
 : capital 
 ^ct, and 
 
 y- 
 
 and Mr. 
 sd in the 
 counter 
 )r-Gene- 
 k^ever, as 
 those of 
 
 . Field's 
 ature to 
 without 
 at if this 
 'hat has 
 : to call 
 ite with 
 )ill, and 
 pproach 
 me over 
 er these 
 
 circumstances I took the liberty to telegraph to you, and subse- 
 quently at the suggestion of Sir John Rose to Mr. Carter, M.P. 
 
 The great benefit which would accrue to the entire commer- 
 cial world, and to your colony, by the abrogation of Mr. Field's 
 monopoly, will, I hope, excuse me. 
 
 At present, one-third of the g ross receipts of the Anglo- 
 Telegraph company, are handed over tc the Newfoundland com- 
 pany fcr the use of the land lines of the island ; this amounts 
 to a tax of one shilling a word on messages. 
 
 Two schemes have been put forward for the amalgamation 
 of the two existing Atlantic cable companies with the Newfound- 
 land company, one with a capital of ^8,000,000, the other with a 
 capital of ^7,000,000, although these sums are only to be repre- 
 sented by the present property of the companies, including the 
 Newfoundland monopolies, 
 
 On this capital, it would be necessary to charge royalties in 
 order to pay dividends. 
 
 Newfoundland is the natural terminus of all Atlantic cables 
 from Europe; the distance is considerably greater to any part of 
 America, and, consequently, the number of words which can be 
 telegraphed is far less per minute. At present cables are diverted 
 from Newfoundland by Mr. Field or his nominees refusing any 
 company, except the existing companies, permission to land or to. 
 use his land lines, even though they consent to pay his tariff. 
 British subjects, therefore, who telegraph now across the Atlantic, 
 are obliged to pay an exorbitant tax to American concessionaries, 
 or they are prevented by the terms of the concession from making 
 an innocent use of the coast of Newfoundland by landing cables 
 on it, although such use would be beneficial to the colony by 
 introducing capital. 
 
 Mr. Field's land lines and cables 'might, I imagine, be laid 
 down for less than ;{;" 100,000. According to his own statements 
 in his prospectus, he has enjoyed for five years 8 per cent, per 
 annum on a capital which he has fixed at ;^863,520. For the 
 year 1873 his profits, he sta'.f ^ after deducting all outgoings and 
 expenses, will be £iio,62g. So large a sum can only be levied 
 by excessive charges, but, if levied, ought to go into the Treasury 
 of your Government, and not into the pockets of Mr. Field or his. 
 nominees. 
 
14 
 
 Should you, Sir, terminate the existing monopoly in 1874, 
 and take over the land lines of the island, for the value of their 
 plant and material, I am informed by responsible capitalists that 
 they will be ready, if it be wished, to take over your lines at a 
 rental, agreeing to lower the tariff, and to allow all cables to land 
 on your shores, and to advance money on the guarantee of the 
 rental, to enable your colony to pay off Mr. Field. In fact, they 
 are ready to enter into any arrangement with you which may 
 facilitate the operation, so anxious are all commercial houses and 
 our daily press to reduce the heavy cost of transatlantic telegrams. 
 
 I have the honor to be. Sir, 
 
 Your Excellency's most obedient, humble scrmant, 
 
 Henrv Labouchere. 
 P.S. — I have the honor to enclose to your Excellency the 
 originals of the opinions given by Sir Pochard Baggally and Mr. 
 James, together with the cases which with the acts were submitted 
 to them. The .second opinion is not signed by Mr. James, as he 
 had left London on circuit. 
 
 His Excellency, Colonel Hill, C.B., 
 Governor of Newfoundland, 
 &c.. &c., &c. 
 
 48 and 49 PALMER.STON BUILDINGS, 
 
 Old Broad Street, E. C, 3rd May, 1873. 
 My Lord,— 
 
 I am requested by the Board of the Direct United States 
 cable company, limited, to call your Lordship's attention to the 
 impediments which prevent British subjects from laying sub- 
 marine cables by the .shortest and best route between Great 
 Britain and America. 
 
 The impediments arise from the concession which was granted 
 in the year 1854 to certain American gentlemen, under an act of 
 the Legislature of Newfoundland, passed on the 15th April, 1854. 
 The concession to these gentlemen was to construct main lines of 
 telegraph from St. John's to Cape Ray, and from St. John's to 
 Trepassey, tegether with other lines from any point in Newfound- 
 land to any point therein, or elsewhere, as the concessionaries 
 might determine, and subject, as provided in the act, the conces- 
 
16 
 
 Great 
 
 sionaries had the exclusive right to make and operate lines of 
 telegraph upon Newfoundland, and all other persons were, by the 
 act, expressly precluded from " constructing, purchasing, taking 
 " or operating any line or lines of telegraph on the island of New- 
 " foundland, or extending, entering upon, or touching any part of 
 " the island, or coast thereof, or the islands or places within the 
 "jurisdiction of the colony with any telegraph wire or other 
 "means of telegraphic communication from any other island, 
 "country, or places whatsoever." 
 
 By an act of the colonial Legislature, passed on the 3rd 
 March, 1857, the New York, Newfoundland and London Tele- 
 graph company (the name under which the American conces- 
 sionaries have been incorporated) was permitted to amalgamate 
 with the Atlantic Telegraph company, limited, and the Atlantic 
 Telegraph company, limited, was permitted to extend its subma- 
 rine cable to Newfoundland upon terms to be arranged between 
 that company and the New York, Newfoundland and London 
 Telegraph company. 
 
 The original concessions gave the company extensive 
 Lmd rights in addition to the telegraphic rights. The r5th 
 section of the act of 1854 provided that if at any time after 
 twenty years from the passing of the act it should be deemed 
 advisable by the Governor in Council that the lines of telegraph 
 and other property of the company should be transferred to the 
 Government of the island, it should be lawful for the Governor 
 to serve a notice to that efifect upon the company, and that there- 
 upon " the telegraph lines, wires, cables, apparatus, vessels and 
 " all other property connected, therewith should be appraised, and 
 " upon payment by the Government to the company of the value 
 " thereof, the same should become the property of Her Majesty 
 " for the benefit and public use of the island of Newfoundland, 
 " and should be held thenceforth free and discharged from all 
 " claims of the company or any person whomsoever." 
 
 There was an express proviso in the act that the property to 
 be appraised should not comprise the land rights of the company. 
 By the act of 1857 (under which the New York, Newfoundland 
 and London Telegraph company was permitted to amalgamate 
 with the Atlantic Telegraph company, limited) there was an 
 express clause reserving to the Government of Newfoundland the 
 
10 
 
 privileges secured to it under the act of 1854, and providing that 
 such privileges should be in force with respect to any new lines 
 that might be established by the companies of either of them in 
 Newfoundland, and between Newfoundland and the continent of 
 America. 
 
 The land lines which have been laid down by the companies 
 consist of a line between Heart's Content and Cape Ray, and the 
 cables are a cable between Cape Ray and Cape Breton, and 
 another between Placcntia and Cape Breton, touching at the 
 island of St. Pierre. 
 
 it would appear that the concessionaires have now ceded to 
 the Anglo-American Telegraph company, limited, their exclusive 
 concessions, on condition of the latter company passing all its 
 messages over the land lines and cables of the concessionaires for 
 a payment of one-third of the gross receipts, an arrangement 
 which practically involves a charge of one shilling and three- 
 pence per word. It is now stated that the Anglo-American com- 
 pany intends to share the concession which it has so obtained 
 with the French Cable company. 
 
 In the month of December last the shares of the New York> 
 Newfoundland and London Telegraph company, (which was in 
 the prospectus stated to be working in association with the 
 Anglo-American and French Atlantic Telegraph companies) were 
 placed on the London market. The prospectus stated that the 
 company was constituted under acts of the Legislature of New- 
 foundland approved by Pier Majesty in Council, under which it 
 had the exclusive right for fifty >ears from 1854 to land and 
 work cables and telegraphs in Newfoundland and on the Atlantic 
 coast of Labrador, and that under this right the two Anglo- 
 American cables had been landed, and were then working on the 
 coast of Newfoundland. The prospectus contained a further 
 clause in the words following : — " The act constituting the com- 
 " pany contained a provision giving the Government of Newfound- 
 "land a right to purchase at any time after the 15th of Aprils 
 1874, the company's telegraph lines, but not its land rights, at a 
 " valuation to be fixed by arbitration." It is not clear whether 
 it was intended to express that the right of pre-emption was still 
 in force, or that it had in some way lapsed. 
 
 The question whether the Newfoundland Governm.ent can^ 
 
17 
 
 on or after the 15th April, 1874, purcluisc the Newfoundland 
 company's telegraph lines, and determine the monopoly for the 
 benefit of the public, is one of vital importance to those who are 
 anxious to promote cheap tele-^'raphy between I'.urope and 
 
 America. 
 
 A sugfijestion having been made in the public papers that 
 the sum to be paid to the Newf(.Hmdlan<l company would include 
 coiTipensation for good-will, or future pnjfits, a case was sub- 
 mitted to two eminent counsel, Sir Richard liaggally and Mr. 
 Henry James, O-C, upon the subject, and the following opinions 
 wore given by those gentlemen : 
 
 (Sec opiiiioits, pii'^r 5, ct ■<cq) 
 
 It would appear, therefore, that the Newfoundland Govern- 
 ment possess, onorofter the 15th April, 1S74, the absolute right 
 at a comparatively small expenditure to put an end to a conces- 
 sion whicli my Directors himibly submit ought never to have been 
 granted. In consequence of the general public not being allowed 
 to land at Newfoundland without the permission of these con- 
 cessionaires, which permission could not have been obtained 
 except upon exorbitant terms, there was for very many years no 
 telegraphic communication between America and Europe. When 
 at last a cable was laid down by gentlemen acting v/ith the con- 
 cessionaires the charges for messages were exceedingly high. 
 The French Cable company would no doubt have laid their cable 
 between Brest and Newfoundland had they been permitted ; 
 they were forced, however, to lay it to Duxbury, thereby greatly 
 increasing their risks and their expenditure. 
 
 It is most desirable that the telegraphic communication be- 
 tween luirope and America should be as cheap as is consistent 
 with a fair return upon the money invested on submarine cables 
 between tlie two hemispheres. My Directors would therefore 
 earnestly call your Lordship's attention to the advantages which 
 will ensue to British commerce by the exercise on the part of the 
 Newfoundland Government of their right of pre-emption in 1874, 
 and by the coasts of Newfoundland being thrown open to all 
 cables which may be desired to be landed on them, and by mes- 
 sages being allowed to be transmitted across the ^island at what 
 is only a fairly remunerative and not an exclusive tariff. 
 B 
 
18 
 
 m 
 
 s 
 
 Im - 
 
 hy putting an end to the monopoly granted to the New- 
 foundland company, the colony would still have it in its power 
 to reserve the exclusive control over its own lands, and it would 
 evidently be more for the interest of the colony to throw open 
 its shores to European telegraph companies (retaining this local 
 right in its own hands) than to grant to any single company a 
 new monopoly, or to extend even at an advanced rate the old 
 one. Moreover, it will be for your Lordship to consider how far 
 it is desirable that any small colony should take advantage of its 
 geographical position to the prejudice of Imperial interests. 
 
 My Directors would therefore ask your Lordship to call the 
 attention of the Government of Newfoundland to the advisability 
 of taking the earliest opportunity to put an end to a system 
 which, without in any way increasing the revenues of the Gov- 
 ernment, drives capital away from its shores, and at the same 
 time imposes upon British subjects in Great Britain and in the 
 Dominion of Canada a great additional outlay when they lay 
 down trans-Atlantic cables, and a heavy tax upon all messages 
 which are transmitted. The opinion of Mr. Labouchere, one of 
 your Lordship's pn^decessors, was strongly against such conces- 
 sion bemg granted, aud he has out on record his views upon the 
 subject in the opinion which exists in your Lordship's office. 
 
 I have the honor to enclose, for your Lordship's reference 
 m a convenient shape, a print of the acts of the Newfoundland 
 Legislature incorporating and extending the powers of the New 
 York, Newfoundland, and London telegraph company. 
 
 I am, 
 
 Your Lordship's faithful servant, 
 
 (Signed,) Clarke, 
 
 Secretary of the Direct United States 
 Cable Company. Limited. 
 To the Right Honorable the Earl of Kimberley Her 
 Majesty's Principal Secretary of State for the Colonies. 
 
 is 
 
19 
 
 OPINIONS OF TIIK PRESS. 
 
 {From the Si. JoJins, Ncwfoimdland, Morning Chronicle, of 
 
 Jnty jrst, iSjj. 
 
 DIRECT UNITED STATES CAHLIC COMPANY. 
 
 The position of the Direct United States Cable company, 
 the company which proposes to lay its cables via Newfoundland, 
 so soon as the existing monopoly shall terminate, may be gath- 
 ered from the following authoritative financial statement : 
 
 Capital of the Coni[)any — ^1,300,000 in 65,000 shares of 
 ^20 each, all fully subscribed for by an influential body of share- 
 holders of responsibility and position. 'Jlie amount upon a{)pli- 
 cation and allotment — viz. : £2 and ^^3 respectively — has been 
 fully paid up, amounting to ^,'325,000. The call of £2, per share 
 due 31st May, 1873, amounting to i^ 195,000, has been almost 
 entirely paid uj). The first instalment to the contractors, of up- 
 wards of ;{^250,ooo, has been paid in cash, and the manufacture 
 of the cable is being proceeded with. 
 
 T\\c Money Market Reviciv of July 12th, 1873, states that 
 the first general meeting of the shareholders was held on the 
 previous Wednesday at the City Terminus Hotel, Mr. E. H. 
 Lushington in the chair. In the course of his address the chair- 
 man stated that the condition of the company was most satis- 
 factory — that " they had succeeded in raising all their necessary 
 capital; that they had completed the preliminary arrangements 
 with Messrs. Siemens, the contractors, and that he was sure that 
 all that modern science can do will be used on the cable." 
 " Messrs. Siemens, in order to insure the successful laying of the 
 cable, have determined to build a vessel for the purpose, and I 
 feel that in intrusting our affairs in the hands of Messrs. Siemens 
 we have done the best we could for the company. We are de- 
 termined to continue by ourselves, and not to enter into any 
 amalgamation whatever." 
 
 The following influential names appear among the share- 
 holders of the company. 
 
 Fred. Alers. Hankey, Banker, Silverlands, Chertsey ; Henry 
 Labouchere, Esq., 9 Park St., Westminster, of no occupation ; 
 Edward H. Lushington, Banker, Brackenhurst, Cobham ; Philip 
 L. R. Martin, 20 Fenchurch St., London, Merchant ; Joseph 
 
 /] 
 
20 
 
 I 
 
 W 
 
 w^ 
 
 pi ! 
 ill • 
 
 I U' . 
 
 11 
 
 Lebag, Stockbroker, 40 Wcstboriic Terrace ; J. Lynn Bristowc. 
 Denmark Hill, Stockilcaler ; L. L.-cmer, ^2 Cedars Road, Clap- 
 ham, Civil ICnjfinccr. 
 
 BLACKWOOD'S MACiAZINK OX NKVVFOUNDLANl) 
 AND TliLliCiRAlMI AFFAIRS. 
 
 Hlackwixxl's Ma^^azine for July contains a very able article on 
 Newfoundland, in which the writer speaks in i^lowin-^ terms of 
 the natural ca[)abilities and [)rosi)i.'cts of the isl.ind. Ihe effect 
 of such an article, in a luLjh-class periodical like Mlackwood's 
 Mapjazine, in informinj; the public <4" Britain and America re- 
 gardinjT the resources of N'ewfountlland, cannot fail to be highly 
 beneficial to the best interests of the colony. The followintr ex- 
 tract will show the views of the writer rej4arding the cable 
 monopoly : 
 
 " Hut electricity is ih'uv^ c .1 more th.ui steam lo unite 
 Newfoundland with ICurope and America. The peculiar i)osition 
 which it occupies in the Atlantic with re'^erence to the two hemi- 
 spheres is destined before loni; to make it one of the most impor- 
 tant tele;^fraphic centres in the workl. 1 [itherto the island has been 
 unable to derive any advantage from this source. When the ori- 
 ginal New York, Newfoundland and London Telegraph com- 
 pany was cre.ited, the novelty of the enterprise dazzled the 
 colony, as it did the world at large ; and they accorded terms to 
 the company whicii could only be justified on the score of ignor- 
 ance of the possible results. Not only did they grant the com- 
 pany a hundred .sc^uare miles of the mineral lands of the island, 
 whicli are now turning out to be nu)st valuable, and which the com- 
 pany are at this moment selecting, but they granted them an ex- 
 clusive monopoly of fifty years, during which no oth- r c >m|)any 
 was to have the right of landing cables on the shores rf tijo island. 
 The Newfoundland Government fortunately inserted a clause by 
 which this monopoly might be extinguished at the end of twenty 
 years, upon the purchase by the island of the wires, apparatus 
 and general plant, at a valuation to be fixed by arbitration. 
 Since this ar lari^tment was entered into, the original company 
 has amalganvue ; wkw the Anglo-American and the F'rench Cable 
 companies, and in April next year the term of tlie monopoly 
 enjoyed by these companies ceases. The colony, alive to the 
 
ai 
 
 enormous advantages wliicli it will derive from the extiiKtion of 
 the monopoly, has already expressed its intention of putting; an 
 end to it, thouj,di the terms upon which it will be abolished arc 
 not yet determined. 
 
 Meantime, in order to give the amalgamated companies as 
 much notice of their policy as possible, the Government has an- 
 nounced to them that, in the event of their abandoning their 
 monopoly of landing cables, Newfoundland will waive its privilege 
 of pre-emption ; but that if the comixmies decline this offer, the 
 local Govornm-Mit will exercise its pre-emptive privilege, and 
 allow all com[)anies to come here, charging a tariff upon the land 
 lines, and placing the original comi)anies on the same footing 
 with any that may succeed them, If the colony offers its shores 
 to freL" trade in trans-Atlantic telegraphy, it is evident that no 
 cable which crosses to America will land at any other spot, and a 
 large and increasing revenue might be derived b\- the colony by 
 a tariff on the land lines. It is not likely that they will succeed 
 in carrying out this liberal policy, however, excepting after a 
 severe, struggle with the companies, who are determined to cling 
 to their monopoly as long as possible, and maintain, in the first 
 place, that the act of amalgamation extinguished the original 
 privilege of pre-emption ; secondly, thai in equity the colony, if 
 it exercised its privilege, would have to buy, not merely the plant 
 of the companies, but the good will of the business, which the 
 colony is not rich enough to do ; and lastly, as a general election 
 is to take place in Autumn, they hope, by the exercise of a power- 
 ful influence upon the electors, to put in a Government which 
 may reverse the policy of its predecessor. This, however, is by no 
 means a probable contingency. The determination to abolish 
 the monopoly is general throughout the island, and no candidate 
 would venture to stand upon an opposite ticket. Again, the 
 wealth and credit of the island are sufficient, if they are forced 
 to it, to buy out the company, as a "going concern," to use an 
 Americanism which our lawyers seem to have adopted ; and con- 
 sidering the difficulties which the colonists find in investing their 
 money in safe local security, the creation of good colonial stock 
 would be rather an advantage to the colony than otherwise. 
 Moreover, they would be fully compensated by the wealth and 
 importance vvhich vvouid indirectly accrue to them from the con- 
 
22 
 
 centration of cables on their shores. The cost of constructing a 
 cable direct from England to the United States amounts to some 
 
 £200, 
 
 ,GOO pounds more than one to Newfoundland, and each 
 
 word is three times as long in transmission, to say nothing of the 
 increasing difficulties in laying so long a cable, and the greater 
 risks of its breaking after it is laid ; while even the French island 
 of St. Pierre, to which the French have laid their cable, is a most 
 unfavorable spot owing to the Newfoundland fishing banks, which 
 have to be avoided by a long and costly detour to the south- 
 ward. At the moment I am writing there is only one cable 
 in working order across the Atlantic, while two are dis- 
 abled — one hopelessly so. It is probable that before thi.-; 
 article appears the company will have laid another cable, 
 but in the meantime a rupture of the remaining wire would 
 cause dire confusion in the commercial world, which is at present 
 charged the enormous tariff of six shillings a word. It is calcu- 
 lated that the improvements in telegraphy, which already exist, 
 will enable any new company laying down a cable to give it.s 
 shareholders a remunerative return at one shilling and three- 
 pence a word. The Newfoundland public is at present subject 
 to the singular indignity of not receiving the public telegrams 
 from Europe on their arrival in the island. These have first to 
 go to New York, and then are telegraphed back to St. John's, 
 thus causing a delay of two days, and involving increased chances, 
 of which the operators largely avail themselves, of making such 
 nonsense of the messages that one has to guess at their' meaning. 
 The existing company has managed to alienate, by its treatment 
 of it, not merely the Newfoundland but the American press, 
 some of the leading New York journals having lately indulged in 
 violent philippics on the subject. All these are so many signs of 
 the times, showing that the days of monopoly, so far as trans-at- 
 lantic telegraphy is concerned, are drawing to a close, and that 
 before long telegraphic intercourse between the two countries 
 will be largely increased." 
 
23 
 
 (From ifoc fdjiulon Times, June S.) 
 
 NEWFOUNDLAND POLITICS. 
 * » » * » » ♦ • « 
 
 But the question, vvhich is not of merely international but of 
 universal importance, is that of the transatlantic telegraph. Next 
 April will expire the period for which the government of New- 
 foundland granted the original cable company the exclusive 
 privilege of landing cables on the shores of the island. The colony 
 reserved to itself the right of purchasing in April, 1874, "the tele- 
 graphic lines, wires, cables, apparatus, vessels, and all other 
 property connected therewith," if it desired to do so. In 1857, 
 an Act was passed, incorporating the original New York, New- 
 foundland and London Telegraph company with the Atlantic 
 Telegraph company, in which it was stipulated that " nothing con- 
 tained in this act shall affect any lien, claim, right, title, interest 
 or privilege secured to the Imperial Government or to the 
 Governments of Newfoundland and of the other North American 
 colonics, and of the United States respectively, under the pro- 
 visions of the said first recited Act." The Governnient of 
 Newfoundland have announced, in terms more or less direct, that 
 it is not their intention to waive this right of pre-emption ; but 
 the amalgamated companies, which have since been joined by the 
 French Cable company, maintain that the righ*- of pre-emption 
 was abrogated by the act of incorporation, and seem determined 
 to maintain their monopoly. This, in the event of the Newfound- 
 land Government not choosing to enforce their rights, would hold 
 good for another thirty years ; but there is now every indication 
 that the local Government will enforce its rights. A strong cur- 
 rent of public opinion is setting in this direction. As a colony 
 Newfoundland has derived scarcely any benefit from the accidents 
 of its highly favoured position as the spot on which all cables can 
 be most profitably landed. It has granted 100 square miles of 
 land in the island to the company, but has practically been 
 reduced to the position of a mere telegraph pole, receiving the 
 cable messages from New York two days after they have passed 
 across the island. The colonists perceive that if they could do. 
 away with a monopoly which, it the present rate of 6s. a word 
 for ocean messages, is particularly onerous, and open their shores 
 to any cable company which desired to land cables there, they 
 
24 
 
 might still reserxe the land lines across the colon}' for themselves, 
 and derive I'rom them a permanent and ever-increasing revenue. 
 In doing this they would benefit not only the colony but the 
 world at large, which would thus not be dependent, as it is at this 
 moment, upon a solitary cable, along which pass all the com- 
 munications of the two continents, and which, if it broke to- 
 morrow, would produce great confusion in the conuiiercial world. 
 It is to be hoped that this disaster may not occur before the new 
 cable is laid next month ; but, in the meantinie, the dangers, 
 inconveniences, and cost of tliL nionopol)' are forcing the expedi- 
 ency of inaugurating a different state of affairs upon the Govern- 
 ment and public here. It is calculated that with free trade in 
 transatlantic telegraph}- tlie tariff might be reduced from 6s. to 
 IS. 3d. or IS. 6d. a word. At the same time, it is not to be 
 supposed that a powerful company, representing a capital of 
 ^7,000,000, is without means of action in the colony, or lacks 
 partisans who are sufficientl}- numerous to form a respectable 
 opposition. The difficulties of breaking down any rich and 
 influential monopoly arc proverbial. Still, the interests involved 
 are so wide spread and important, and the advantages to be 
 gained by its abolition considered here to be <o palpable, that it 
 is only a question of persistency and t;me. 
 
 Illni 
 
 ,8 
 
 . '* 
 I'l'i 
 
 (Fioin the Xc:.' York Herald, Ap)il 2S.) 
 THE GRliKD OF Till' ATLANTIC CABLl-: COMI'ANY. 
 
 Public Rights acaix.st the Tvkranv or Munoi'oliks. 
 
 The histor\- of the Atlantic Cable Company is not a In'story 
 
 of enlightened views and liberal management. Pending their 
 
 protracted struggle for success the projectors of the magnificent 
 
 scheme of uniting the two continents by the electric wire were 
 
 regarded as public benefactors, and the world gave them credit 
 
 for a loftier object than that of securing enormous profits out of 
 
 the venture. It was believed that the advancement of science, 
 
 the progress of civilization, the enlightenment and happiness of 
 
 the people, were the incentives to a perseverance and devotion' 
 
 that commanded general admiration. But as soon as success' 
 
 was secured, that greedy poh"cy began to ir.anifest itself which' 
 
35 
 
 has ever since marked the action o^ the conr)any, and disfigured 
 its otherwise useful work. It speedil)' became evident that the 
 views of the managers of the cable were limited to the commer- 
 cial asi)ect of the enterprise, and that the momentous c^uestion 
 with them was, not what would be the advantages of the great 
 triumph of science to mankind, but how much money it would 
 bring into their own [)ockets. There have b;-'en laudable instances 
 of unselfishness on the part of men who have accomplished re- 
 sults of vast importance and benefit t) the wor'.d, but the con- 
 structors of the first iXtlantic cable were remarkably free from 
 any such scntimentalit)-. No project ever offered a more pro- 
 mising field for the gratification of the passion of axarice. The 
 immeoiate connection between the leading markets and moneyed 
 centres of the world was certain to effect a revolution in commerce 
 and speculation, and the practical minds of the Directors of the 
 company at once suggested that b\' confining the benefits of the 
 cable to the wealthy, through the exaction of an exorbitant tariff, 
 they could make larger profits than by placing it \vithin the reach 
 of a greater number of customers al reasonable rates. The first 
 charges for messages were almost piohibitor}-, and although in 
 this instance, as is frecpiently tlie c<ise, avarice overreached itself, 
 and reductions in the r.ite became a necessity, tliex' uxre made 
 in a niggardly manner and grudgingly yielded. It was only 
 when the near approach of ihe completion of the l-'rench cable 
 threatened a destruction of the original monopol>- that anything 
 like a liberal i)olicy was adopted b\- the Anglo-American board. 
 Fear then extorted from those who had made enormous fortunes 
 out of the pcoj)le, concessions which a sen^e of justice would 
 never have prompted, and something approximating a fair tariff 
 was announced. 
 
 The press has never recciveJ libjral treatment from the 
 Cable company, .aUhougli the leading American journals have 
 been the best and most steadfast customers the cable has ever 
 had, besides having been its most valuable ally when it was 
 struggling for success against apparently insurmountable obsta- 
 cles. It is scarcely too much to say that but for the aid of the 
 press tlie Anglo-American company would have been a failure ; 
 certainly its work would have been delayed and embarrassed for 
 years longer than it was if the le"ding journals had not supported 
 
,'"■1 
 
 ■ 
 
 26 
 
 the enterprizc with vigor, and cncourarred capital, proverbially 
 timid, in the apparantiy desperate investment. If the cable 
 managers had been capable of taking a broad view of the subject, 
 if their eyes had not been buried in their money-bags and blinded 
 to everything but the division of big dividends, they would have 
 seen that their wisest policy was to encourage the use of the 
 cable by the press, and thus by familiarizing the people with its 
 advantages, to have made its constant use a public necessity. 
 As it was, they stupidly regarded the daily newspapers with 
 jealous)', believing that the publication of cable news decreased 
 the number of private messages. When the Anglo-American 
 board was first urged to make reductions in the press tariff, 
 the policy of enforcing full rates for press messages was stren- 
 uously advocated by some of the directors, with the avowed 
 object of preventing the newspapers from using the cable at all. 
 Englishmen, unaccustomed to the enterprise and liberality which 
 mark the management of American journals, believed that the 
 suppression of all cable news would largely increase the receipts 
 of the company from its private customers, and they could not 
 understand that the press and the people had any rights which 
 cable directors were bound to study or respect. Their policy 
 was, of course, as flituous as it was illiberal, because the American 
 newspapers would have secured the news even at double the cost 
 of private rates ; but the animus of the proposition has been 
 evident in the treatment of the press by the companv. with very 
 few exceptions, from the completion of the first cable to the 
 present time. When the French cable approached success the 
 Anglo-American line was better disposed to appreciate the pat- 
 ronage of the American journals ; but, as we have said the 
 apprehension of dissolving dividends had great influence in induc- 
 mg the tardy justice. 
 
 The eventual re-establishment of the monopoly by the 
 union of the French and English cables under one management 
 soon put to flight any hope of a more just and liberal course on 
 the part of the company. The people and the press have ever 
 since been at the mercy of a greedy corporation, and have had 
 ample opportunity fo judge of the quality of that mercy They 
 have been subjected to a policy as annoying, from its petty 
 tyrrany, as it is injurious by reason of its sordidness. The use 
 
27 
 
 the cable 
 e subject, 
 d blinded 
 311 Id have 
 se of the 
 i with its 
 necessity. 
 5crs with 
 lecrcased 
 American 
 :ss tariff, 
 as stren- 
 : avowed 
 3lc at all. 
 ty which 
 that the 
 receipts 
 :ould not 
 ts which 
 r policy 
 unerican 
 the cost 
 as been 
 ith very 
 e to the 
 cess the 
 the pat- 
 aid, the 
 n indue- 
 by the 
 ij^emcnt 
 •urse on 
 ve ever 
 ave had 
 They 
 s petty 
 riic use 
 
 of the cable is now a public necessity, and the advantage of its 
 liberal employment by the daily journals cannot be over-esti- 
 mated. Without the press the cable would be a dangerous 
 weapon in the hands of capital. It would afford undue advan- 
 tages to the wealthy over men of ordinary means, and would 
 become an instrument of fraud and conspiracy for the benefit of 
 those who hold it under their control. In combination with the 
 press the cable is a public blessing. It places all men in posses- 
 sion of the news simultaneously, and does much — it ought to do 
 more— to nullify the undue advantage of enormous capital and 
 powerful combinations. It is probably to this very fact that we 
 owe the policy which we have denounced, and which is about to 
 be still more offensively enforced unless public sentiment should 
 succeed in preventing the consummation of the illiberal and unjust 
 action proposed by the cable company. It is announced that 
 the Board of Directors intend to advance the rates in view of the 
 business likely to be created by the Vienna Exposition. There 
 is no lack of present profit to the corporation ; the fat dividends 
 still find their way into the purses of the stock-holders ; the 
 original investors in the enterprise are still amassing wealth out 
 of the investment ; but, with a perfection of covetousness peculiar 
 to great and greedy monopolies, as the business is likely to 
 increase, and as the necessity for the use of the cable becomes 
 temporarily more urgent, the gross imposition of raising the 
 tariff for messages is practised by the directors upon the public 
 and the press. In proportion as the people increase their patron- 
 age of the line, the company increases its already exorbitant 
 charges to the people. The more liberal the patrons, the more 
 illiberal and exacting become the patronized. We can conceive 
 of no measure more thoroughly contemptible than this. It re- 
 verses the accepted rule ct all commercial transactions, and out- 
 rages every sentiment of justice and propriety. It is peculiarly 
 unfair to the press, which has ever been the best and most per- 
 manent customer of the cable company. Without the business 
 of the daily journals and of the press associations, the dividends 
 of the monopoly would have been much smaller than they have 
 been from the completion of the first cable up to the present 
 moment. The enterprise and liberality which induce the leading 
 American newspapers to make provision for ample cable reports 
 
h t 
 
 B; 1j 
 
 i: 
 
 28 
 
 from Vienna have prompted tliis new exhibition of avarice and 
 injustice on the part of the company. The greed of tlie Direc- 
 tors has taught tiiem the characteristics of American journalism, 
 and they rely upon the determination of our press, to obtain 
 news at any cost, to enable tliem to successfully enforce their 
 gluttonous policy. 
 
 We desire to sa}- tliat, so far as the great leading dailies of 
 the United States are concerned, a high rate of tariff is rather an 
 advantage than an injur)-. If our business morality were on a 
 par with that of the cable com])an\-, we might rejoice at a policy 
 which would deprive the less prosjjerous journals of the news, 
 and confine all the benefits of the cable to a few firmly established 
 papers. Ikit we speak in the name of the whole American press, 
 whose enterprise is an honor to the nation, when we denounce 
 this projected imposition by a grasping monopoly. There can be 
 only one efficient protection against the exactions of the cable 
 company. We should adopt with our inland telegraph lines the 
 postal telegraph system, and the luiglisli and American govern- 
 ments should, by an international treaty, extend the .sy.stem to 
 the Atlantic cable. The true interests of tlie press and of the 
 people demand this reform. Opposition might do something to 
 remedy the existing abuses ; but we have seen, time after time» 
 how speedil}' and effectually a monster monopoly, once firmly 
 established, can dispose of opposition. The security of the pub- 
 lic can onl\- be rendered certain by the acquisition of the cable 
 by the twt) governments, guarded by a suitable international 
 treaty. Let the statesmen of r:ngland and America turn their 
 attention to this subject, fur its importance to the nations, to the 
 people and to the press, cannot be over-estimated. 
 
 LETTER FROM MINISTER SCIIEXCK RELATIVE 
 TO ALLEGED OVEIiCHARGES IX CONNECTION 
 WITH CAIUJ-: BUSINESS. 
 
 Legation of the United States, \ 
 London, April 13, 1873. ' ) 
 Sir, T have been thinking for some time of writing to you 
 in relation to the charges made on telegrams sent to the United 
 States by the Anglo-American Telegraph company. That com- 
 
20 
 
 pany have an arrai.gLincnt with tlic WesLcrn Union Telegraph 
 company, in our country, throui^h which a systematic imposition 
 is practised, which ou-j^ht to be exposed. 1 brin[^ it to your 
 attention bcjanse communications transmitted by ocean cable on 
 Government business are subjected to tlie same overchari^es as 
 are the mcssaj^es of individuals, and the public and private per- 
 sons are etpially concerned in havinj^ what is done known, with a 
 view to some cnavction of the \vron,L,r. I discovered something 
 of what I am about to explain three or four months ac^o, and 
 since then have been makin!,^ inquiries which have elicited the 
 following;, as I believe i true statement of the case : 
 
 These two companies have some contract between them by 
 which it is agreed and arranged that messages sent from England 
 by the Anglo-American to all points in the United States, shall 
 be received and transmitted by the Western Union to their des- 
 tinations. Thus the interior or land lines of the latter company 
 are made continuations of the cable on the American side of the 
 Atlantic. This is proper enough, and a convenience to everyone 
 as well as to the contracting parties. It gives to the Western 
 Union a monopoly of business coming through the cable to 
 America, and naturally for that monopoly they agree to pay 
 something. Accordingly the contract binds the Western Union 
 to allow the Anglo-American to retain a certain portion — being^ 
 I believe, one-third of what is charged for transmission over the 
 wires in the United States. 
 
 The Anglo-American company have a tariff of prices. The 
 char^-e for a message from London to New York, or points east 
 of New York, is four shillings (English money) per word. After 
 this month it is understood they have promised a reduction to 
 three shillings a word. 
 
 The Western Union company have also a tariff of prices. 
 The charge now is, from New York to Washington, for the first 
 ten words forty cents, and three cents for each succeeding word ; 
 from New York to Chicago, for the first ten words, one dollar, 
 and seven cents for each word beyond ten ; from New York to 
 San Francisco, two dollars and fifty cents for ten words, and 
 seventeen cents for each word beyond ten, and so in proportion 
 to other points. 
 
 Every word sent by the cable is charged for, including date, 
 
it 
 
 If 
 
 . s 
 
 i I 
 
 30 
 
 'iddrcss and signature. On the land lines of the Western Union 
 within the United States there is no charge made for date, ad- 
 dress and si-nature. But now observe the practice under the 
 contract before referred to, between the British and American 
 companies : A mcssa-e is sent by tiie cable from London to 
 Washington, Chicago or San Francisco. The office here de- 
 m mds and collects for each word four shillings, which pays for 
 transmission to New York, and also three pence more for each 
 word to Washington, nine pence more for each word to Chicago, 
 and fifteen pence more for each word to San Francisco. lhi.s, 
 with cKchangc. and the present difference between gold and 
 United State's currency, is. for that part of the service which lies 
 beyond New York, more than double the proper charge of the 
 Western Union company, and is so far an overcharge, to be 
 divided between the companies who are the parlies to it. 
 
 When the charges imposed for transmission over the wires 
 west of New York are double the regular tariff prices, the Ame- 
 rican company can well afford to allow the Cable Company one- 
 third of the receipts for that portion of the service performed by 
 
 their lines. 
 
 If the charge were only double, the account would stand 
 thus • The Western Union being credited two dollars, when 
 the proper amount to bj collected from them was but one dol- 
 lar they would leave si.Kty-six and two-third cents with the 
 British company, and yet receive one dollar and thirty-three and 
 one-third cents for their share, being thirty-three and one-third 
 cents in excess of their regular and legit itimate charge at home. 
 But the case is, in some particulars, much worse than this. Let 
 us illustrate, by supposing a message of one hundred words sent 
 from London to Washington. Ten of these words may be sup- 
 posed to constitute the date, address and names. The Cable 
 company would require to be paid here, for the transmission 
 over the land line between New York and Washington, three 
 pence on each of the whole one hundred words. This would 
 amount to one pound five shillings, which is equal to six dollars 
 and ninety-six cents. But the regular published charge for 
 such message by the Western Union would be, for the date, ad- 
 dress, names-ten \vords— nothing ; for the first ten words, forty 
 cents'; for the remaining eighty words, at three cents, nine dol- 
 
31 
 
 ,,. ,„a twenty cents; one hundred word., two dollars and 
 j:„tv cms. Tims, there would bo extorted for the service m 
 ' Un te^ States an overcharge, equivalent in currency to fou 
 do hr nd .i.tecn cents ; and the si., dollars and n,nety-s,x 
 ce„rbe ing divided, would yive the Uritish con.pany the ec,u,va- 
 „t of wo dollars and thirty-two cents, and leave the An.er can 
 Irnn foV l,eir share, four dollars and sixty-four cents winch 
 ■rrtnl one dollar and ei.hty-four cents beyond their lc,,tnnatc 
 
 ^'"irtle c!:^ of short n,essa,es, where the address, d.ae and 
 „,„, bear a larger proportion to the text, the P-P";— 
 ov- harije would be u'realer. P'ur a message, for ,nslan e, 
 twety words, there would be collected here, lur the u,e fron 
 New Y rk to Washington, hve shilUngs-cciual to one dol ar and 
 d,i tv-nine cents in United States currencj-nistead of fo y 
 
 1 ich would be the charge at hon,c. In such a case the 
 
 W ^. n Union pocket, for their share, for services per orn,ed by 
 
 hen ninety-three cents, being much n.ore than tw.ce the.r whole 
 
 ' , . ,c And it must be remembered tlut a large propor- 
 Et'tg^amfrl across the ocean have a te.xt ol but ten 
 
 ""'rids may seem dealing with an inconsiderable matter, but 
 
 •1 .di^the a..<>re.rate, and computing the percentage of 
 
 """ iPat c nr,:t tts n^ small thing as affecting the cost of 
 
 "endi., intelligence between the two countries, ho ^ r . s he 
 
 r °.vn,t of the United States ,s concerned, it must have 
 
 <e difieroncc during the past year. 
 
 . ' o n>eans of knowing whether messages connng from 
 
 "'Tsubmit this exposure to you for such use as you may deem 
 it proper to make of the information. 
 
 I have the honor to be, Sir. very respectfully. 
 
 ^ " Your obedient servant, 
 
 ROBERT C. SCHENCK. 
 
 To Hon. Hamilton Fish, 
 
 Secretary of State. Washmgton. D.L. 
 
 n] 
 
32 
 
 I"* 
 
 The London Daily AVtcr, of June 30, refers to the above as 
 
 follows : — 
 
 " The American Minister in I':n;:,'Iancl has written a despatch 
 to Mr. Hamilton Fish, bitterly complaining^ of the charges which 
 arc made by the Anglo-American Telegraph company for trans- 
 atlantic telegrams to the principal cities of the United States. 
 ♦That comi)any have,' says General Schcnck, 'an arrangement 
 with the Western Union Telegraph company, in our country, 
 through which a systematic im[)osition is practised, which ought 
 to be exposed.' The General goes on to point out what this in- 
 pcnious anangement is. The Western Union Telegraph com- 
 pany owns a nct-A'ork of lines, connecting New York with the 
 other cities of America. iVom city to city there is a fixed tariff. 
 On messages, however, which pass over these lines from ]uiropc, 
 a considerable addition is made to this tariiif, and the overcharge 
 is divided with the Anglo-American Telegraph company, A 
 through message, therefore, to Chicago or Washington, from 
 London, costs considerably more than the same message for- 
 warded to New York, and thence to Washington or Chicago. 
 General Schcnck deserves thanks for having called attention to 
 this imposition. We have ourselves frequently protested against 
 the absurd rates which are charged on trans-atlantic messages. 
 These rates have enabled the existing companies to perform the 
 American feat of 'watering' their stock, or, in other words, adding 
 to their real capital a large amount of pai)er capital, on which, as 
 well as on their .>-eal capital, they hope to pay riMiiunerative divi- 
 dends by excessive charges. I-^utunately there is no monopoly 
 in the bottom of the Atlantic. The monopoly of landing cables 
 in Newfoundland, which has until now been enjoyed by the 
 Anglo-American companj', will cease nextye.u'. We may there- 
 fore reasonably hope that, within a short period, cables will con- 
 nect Europe and America, and telegrams between the two he- 
 mispheres will be transmitted at a price not above what will earn 
 a fairly remunerative dividend on capital. That our American 
 cousins should be alive to the impositions which are now being 
 practised upon them as well as upon us is fortunate, as united 
 action on bcth sides of the Atlantic will crush out a monopoly 
 which is due to fortuitous circumstances, and which, of course^ 
 involves monopoly prices." 
 
 \m 
 
35 
 
 THl- NrVV YORK, NEWFOUNDLAND AND LONDON 
 ^" TELEGRAPH COMPANY. 
 
 ■riK- New York Herald sayTuiat the Newlmuullan,! Govem- 
 
 r^o:S:;3Tb:tn' u^ics or .inn j^ 
 
 '"' r ""ru^' ct « o NewZuuLa ...s ,ra„te.. to the 
 company '>-X"J ^r^Hg "oTt^^^^^^^^^^^^^ the privilege of the 
 
 — ;"ofp:^^:e^^^^^^^^^^^^^ 
 
 ::::rr;tttte: of te,egraphi„. between America anU 
 Europe. ^^^^__ 
 
 Nl.-WFOUNDLAND ANDJTtlE CABLE MONOPOLY. 
 
 ""'V„. Can you inform me whether the practical effect of the 
 
 ■i' ^'^ ^ent to the Newfoundland Telegraph company by 
 notification sen to he Ne ^^^^^^^ .^^ ^,^^^^, 
 
84 
 
 
 per minute, the year at three hundred and ten days, and each 
 day at cit,ditcen hours, at sixpence per word, th'^ gross receipts 
 would be ;^25i,ioo ; at three pence per word, ;^i^5,555, or, after 
 allowin^^ ^"20,000 for workin^t; expenses, and ;^20,ooo for a reserve 
 fund, above 10 per cent, on outlay. The question is a most 
 important one, as the present monopoly rates seriously interfere 
 with the commercial relations between the two worlds, and arc a 
 tax of many thousands per annum to merchants and others who 
 are obliged to pay them. It cannot therefore be doubted that, 
 so soon as free access is granted to the shores of Newfoundland, 
 measures will be taken to lay down a cable between that island 
 and Ireland, which, by only attempting to pay a fair interest on 
 the real capital invested, will materially benefit the inhabitants 
 of Europe and America. It will be remembered that a few 
 weeks ago the existing companies put up the rate of four shillings 
 per word to six shillings per word, on the plea that the French 
 cable was broken. At a recent meeting of the Anglo-American 
 company it was officially stated that this increased rate had 
 benefitted the companies to the extent of several thousand 
 pounds. What would be said if a railway company, if one of 
 its lines of rails were out of repair, were to put up its fares to 
 such an extent that its traffic returns would actually be increased 
 until its line had been repaired ^ Such financing is only possible 
 where monopoly exists. 
 
 Your obedient .servant, 
 
 J""^^ 15- A Merchant. 
 
 [From the wording of the notification wc apprehend that 
 either the Newfoundland company will cease to exist so soon as 
 the right of the pre-emption, which may be exercised by the 
 Colonial Government in April, 1874, has been enforced ; or that 
 it will be allowed to carry on its business as at present, on pay- 
 ment of a tax to the Government, and on surrendering its mono- 
 poly. In cither case the island will be thro\vn open to all tele- 
 graphic enterprise. The words, "Or over their lines to this 
 island," in Mr. Noonan's letter, as published in the Daz/y News 
 of Saturday, should have been, " Or over their lines in this island." 
 — Z/uity A^zt'i'.j 
 
85 
 
 (Fnun the Ncivfonmiland Semi- Weekly Clixmiele, Jimc 20.) 
 « • » « » ♦ 
 
 Tt has also been suj^^cstcd, and many persons have thou^jht 
 the su^^gestion a very prob.ible one, that in course of time im- 
 provements on the moile of telegraphing, or on the present system 
 of telegraphy, (and which may fairly be anticipated,) will render 
 the transmission of messages over cables laid between Britain 
 and Halifax or New York quite as easy and rapid as over shorter 
 cables between liritain and Newfoundland, and that hence New- 
 foundland will, in great part, lose its value as a cable terminus. 
 Upon this point we are enabled to quote from a letter of G. Von 
 Chauviii, Ksq., M. S. T. E, Manager and IClectrician of the 
 Direct company, \\\\o says — 
 
 " As far as the fears expressed that improved instruments 
 mi'^ht make it less desirable for Atlantic cables to touch at New- 
 foundland a<e concerned, it must be said that whatever improve- 
 ments may be made, either on the conductors of electricity, or in 
 the apparatus employed for the transmission of messages, the 
 principal laws of electricity will always hold good, being entirely 
 independent of the way in which they are utilised. It is a law of 
 nature that the transmitting power of insulated conductors 
 decreases with the square of the length ; so that for any 
 system whatever, the advantage will always be on the side of the 
 shorter route, and every invention which will improve the work- 
 in^r of lonii cables will do the same in a still larger proportion for 
 
 short ones." 
 
 Upon the general subject of the abolition of the monopoly 
 heretofore possessed by the Atlantic company, the press of Great 
 Britain and the United States take the same view as that which 
 has actuated our Government, and look forward with a good deal 
 of satisfaction to the prospect of more liberalsupplies of informa- 
 tion for their readers at a very great reduction upon present 
 rates. In publishing a communication from a gentleman wntmg 
 from St. John's, the London Daily News of 31st May says— 
 
 " We are glad to find from a letter which we published on 
 Saturday from 'A Newfoundlander,' that public opinion in New- 
 foundland is in favor of throwing open the island to all tele- 
 graphic enterprise. Some twenty years ago a monopoly was 
 granted to certain enterprising American geiitlemcn to work the 
 
36 
 
 :' i 
 
 i; 1; 
 
 land lines of Newfoundland, and to connect them with Europe 
 by submarine cables. The result of this ill-considered policy has 
 been that messages across the island are charged a preposterous 
 tariff, and the cables of only one particular company are allowed 
 to land on its shores. The concession fortunately contained a 
 clause enabling the Government at the end of twenty years to 
 get rid of this monopoly at a small expense. It is to be hoped 
 that, in the interests of the commerce of the two worlds, the 
 colony will not shrink from acting upon this clause. Our cor- 
 respondent points out that the geographical position of Newfound- 
 land makes it the proper telegraphic centre between the old and 
 new worlds ; and it would appear not only that the island is far 
 nearer to Europe than any other part of America, but that the 
 bottom of the Atlantic between its shores and those of Ireland 
 n a soft level bed of mud specially adapted for submarine cables. 
 The practical effect of a telegraphic monopoly in Newfoundland 
 is to create a monopoly of the bed of the Atlantic. The result 
 is to increase enormously the cost of telegrams between Europe 
 and America. The Newfoundlanders may rest assured that 
 action on their part to put an end to concessions which interfere 
 with inter-oceanic telegraph enterprise, being subjected to the 
 natural laws of supply and demand, will be supported by public 
 opinion both here and in the United States. Were the carrying 
 trade between Europe and America in the hands of one company, 
 the price of freight would be enormous. It is brought down to 
 its natural level by competition. When half-a-dozen competing 
 cables connect Newfoundland with Ireland, we may fairly expect 
 that the charge levied on inter-occanic telegrams will be very 
 considerably reduced, to the manifest advantage of the publi:'i.i 
 both sides of the Atlantic." 
 
 I' 
 1 1 1 
 
 The following very excellent letter from a Conception B •;/ 
 correspondent of the Courier shows that intelligent people in the 
 Outports are giving their attention to the duties of the Govern- 
 ment in connexion with the subject, and such persons will be 
 glad to find that the Government have dealt with it in a manner 
 con sistent with good sense and with an eye to the interests of 
 the colony, at the same t ime doing no injustice to any company 
 or individuals : 
 
SI 
 
 On pc-usin? some of the English papers rcccvcd by last 
 mail I find that'our long-ncglcctcd and almost forgotten island 
 V, assuming her destined position as the connecting link between 
 • he two continents. Our great natural advantages have been 
 ,on- understood and recognized by local authorities, and from 
 time to time efforts have been made to bring them prommently 
 before the commercial world, but their attempts have been to a 
 „reat extent ineftectual. Now, however, it is a matter of con- 
 gratulation to all interested in the welfare of Newfoundland to 
 find that her geographical position >s acknowledged by the 
 world's great commercial and telegraphic speculators as of incal- 
 culable Advantage to them in successfully accomplishing their 
 undertakings. As an illustration of the interest created in the 
 Speculating and monied world, with regard to our future, I give 
 the following extracts from a periodical received by last mail 
 
 The MomyMar/^ctRevic-^oi May 24, contains a report of 
 the proceedings of a meeting in London, of the shareho ders of 
 the Anglo-American Telegraph Company, convened for the 
 purpose of effecting an amalgamation with tie Newfoundland 
 Company and the French Cable Company. Alter the terms of 
 "o^osed agreement were read by Sir William Drake, the 
 chairman of the meeting gave the following amongst other ex- 
 planations of the reasons which induced them to adopt the pro- 
 f,osed consolid,ation. " liy the agreement which was passed las 
 .,.„. * » * the proportion of receipts, which would have 
 come to the different companies, was 48 pc; cent, to the French 
 Atlantic, and 52 per cent, to the Anglo-American and New. 
 foundland companies, and that was on the laying of the caWe 
 from Lands-end to Halifax. But the Uirectors were veiy un- 
 wUli^g at that time that this company should be saddled with 
 U e liability and risk of laying a cable over those unknown 
 rj,7 * * * " On the nth of March last It was proved 
 
 tla' submarine cables were not so free of injury at ''-' f ^; - 
 had been supposed ; and when it was »>'°7 f ' ^'^Xt 
 /,„stk of the submarine cables only .ncras,^ he "sk and ex 
 oense of repairing them in case of breakage-when, too, it was 
 
 dmons rated that a cable from Ireland to Hearts Content cou a 
 be worked /=«« «./<«' as a cable of the same d-mensions be- 
 tween Lands-end and Halifax-which was snown w u. the case 
 
i^ H 
 
 38 
 
 with similar unanimity by tiie leading electrical engineers of the 
 day — when that was so shown, it became of importance that the 
 route of the new cable should be changed. * * Without it 
 (amalgamation) the cable would have to be laid to Hahfax in- 
 stead of Newfoundland, at an extra expense of between ;^200,ooo 
 
 and ;^3oo,ooo incurred. 
 
 Unless a cable was laid to New- 
 
 foundland instead of Halifax, it was impossible to repair this 
 cable (1865) ; and this company could not get permission from 
 the Newfoundland company to land the new cable in Newfound- 
 land unless it amalgamated, and after protracted negotiations 
 ^100,000 was arrived at as the sum which the Newfoundland 
 company should receive. * * * When they had got so far, 
 another difficulty cropped up, which was near putting an end to 
 the iv/iole o{ \\iQ nepjotiations, viz.: the power of pre-emption by 
 the Newfoundland Government. * * ♦ The Newfoundland 
 company— confident in their rights — had therefore consented to 
 forego for two years the sum of .^135,000, * * * and had 
 also consented that if by the ist of May, 1875, no action had 
 been taken by the Newfoundland Government to the perjudice 
 of this company, that they would hand over the whole of this 
 ^135,000 to this company." 
 
 Now, Mr. Editor, these extracts most decisively point to 
 the importance of the privilege enjoyed by tJie Telegraph Com- 
 pany, of landing their cables on our shores; and it is .satisfactory 
 to find that our Government have already taken the initiative 
 in the enforcement of rights reserved under a charter granted to 
 the Newfoundland company in 1854. It is not my intention to 
 enter upon the questions of monopoly, pre-emption, &c., involved 
 m a discussion of the terms of the company's charter. I feel 
 that our Government, in this particular, will as heretofore protect 
 the interests of the colony with a due regard to the rights of the 
 company, and by all means throw open our island to the free 
 competition of all speculators in mines, telegraphy, railroads, 
 commerce and agriculture. 
 
 {From the Newfoundland Public Ledger, July 21, 1S71) 
 The position taken up by our Government in regard to he 
 charter of the Anglo-American Atlantic Cable Company seems 
 to meet with very general approval both in this and other coun- 
 
39 
 
 t,ic. This was to be expected, for monopolies have no defen- 
 ders' now-a-days, cxeepting individuals who happen to be per- 
 sonally interested in some particular one. 
 
 (Prom the Ncwfoundlmd Mormng Chronicle) 
 The subject of doing away with the telegraph monopoly 
 occupies a good deal of the public thought, and although recently 
 "n opinFons have been published on the s,de of the com- 
 pa ;, it does not appear that they have effected any change „ 
 Se views which have been so generally expressed as to the 
 
 X of the course pursued by our Government. We — 
 tell what arguments Mr. Field may have m reserve^ Whatever 
 
 hey may b^, they are probably well known to the Enf *P-- 
 rnrlirso seem to have had little weight with them, for we find 
 
 1 e 1 oTtil rto the Amalgamated Company continues very 
 ronttle result of a policy upon the part of the Atlantic Com 
 
 n y°anyth ng but liberal and business like. The course wh>eh 
 'Z:Z^ like to see Mr, Field pursue is to ^J-'--^- ; 
 
 ment of his monopoly, for to th,s we have not the smallest 
 
 it will come at last. C v 
 
 The complaints ^^^^^^^^^ ^^re company 
 foundlanders w.th respect o the close p y 
 
 throughout, have been echoed °" * '7*;;, f i„,„H-ed and 
 with proportionally ^^^f°lll'"''^t United States 
 
 J h the Wes^rn Union Telegraph Company m our countr 
 huJwLh a systematic im^ '^ ^ ^^1^^^::^. 
 to be^exposed.' ^he General goes o^^^^^^^^ 
 
 't;z::^^ < ^^ 'o— -^^ -^^ -^" '- 
 

 l> f* 
 
 ij 
 
 f 
 
 40 
 
 other cities of America. From cit}' to city there is a fixed tariff. 
 On messages, however, which pass over these hues from Europe, 
 a considerable addition is made to this tariff, and the over- 
 charge is divided with tlie Anglo-American Telegraph Company. 
 A through message, therefore, to Chicago or ^Vashington from 
 London, costs considerably more than the same message for- 
 M-arded to New York, and thence to Washington or Chicago. 
 General Schenck deserves thanks for having called attention^o 
 this imposition. We have ourselves frequently protested against 
 the absurd rates which are charged on trans-atlantic messages. 
 These rates have enabled the existing companies to perform the 
 American feat of "watering" their stock, or, in other words, adding 
 to then- real capital a large amount of paper capital, on whic^ 
 as well as on their real capital, they hope to pay remunerative 
 dividends by excessive charges. Fortunately there is no mono- 
 poly in the bottom of the Atlantic. The monopoly of landing 
 cables in Newfoundland, which has until now been enjoyed by 
 the Anglo-American Company, will cease next year. We may 
 therefore reasonably hope that, within a short period, cables will 
 connect Europe and America, and telegrams between the two 
 hemispheres will be transmitted at a price not above what will 
 earn a fairly remunerative dividend on capital. That our 
 American cousins should be alive to the impositions which are 
 now being practised upon them as well as upon us is fortunate, 
 as united action on both sides of the Atlantic will crush out a 
 monopoly which is due to fortuitous circumstances, and which, 
 of course, involves monopoly prices." 
 
 _ 'i-hc reduction in the tariff between Newfoundland and the 
 United Kingdom, which has been advertised in some of our local 
 prints, comes too late to have any effect in allaving the universal 
 dissatisfaction in this country. Not only so-it is calculated to 
 set tnmking people even more in opposition, as it smacks some- 
 wlia of the bribery business-throwing the sprat to catch the 
 mackerel. 
 
 In the House of Commons, July 24, 
 
 Sir J. Kennaway. in the absence of Lord Charles J. Ham- 
 m^on asked the Under-Secretary of State for the Colonies 
 whether ,t was the intention of the Newfoundland Cov^rnmcnt 
 to actermme the monopoly which now existed in telecrraphic 
 
41 
 
 communicauon between Ireland and Newfoundland, and open 
 the line to all cables and telegraph lines across the island, subject 
 to a uniform tariff; whether any such notice had been given to 
 the existing holders of the monopoly; whether any correspon- 
 dence had been received by the Imperial Government m relation 
 to this matter; and whether such correspondence would be 
 placed before the House. r ^^ c i 
 
 Mr Knatchbull Huguesson-The Government of Newfound- 
 1 xnd has given notice to the company now enjoying a monopoly 
 in teleo-raphic communications with that colony of its determina- 
 tion to terminate that monopoly. Their intention is to open 
 the matter to that competition which they believe to be wise, 
 iust and salutary. They will probably establish a tariff, though 
 nothing has been settled as to uniformit)'. Correspondence has 
 passed upon the matter, and there will be no objection to la)' it 
 before Tarliament. but it is at present incomplete. 
 
 TW-^ DIRECT UNITED "STAIT-S CABLE COMPANY, 
 
 LIMITED. 
 
 {From the Money Market Reviezc, August p.) 
 An extraordinary general meeting of the shareholdei;s was 
 held on Thursda5^ at the City Terminus Hotel. (Mr. E. H. Lush- 
 ington in the chair) for the purpose of considering the ;;>^P^d'ency 
 of modifying the route of the proposed cable to the United 
 States, and for making .uch alterations in the contract with 
 Messrs Siemens Brothers as might be considered necessaiy. 
 The Secretary (Mr. Charles S. Clarke) read the notice convening 
 
 flif nipt'tin*'' 
 
 TheChdrmau said . bey had met there a short t,me ago 
 under the articles of association for an ordinary general meeting, 
 but th-T now had come together at an extraordmary meeting, 
 and for a special purpose which required their grave consmera- 
 tion, and ho trusted that their good judgment would lead them 
 to adopt the resolution which the directors put before them^ It 
 would be recollected that they called the company the />,. 
 United States Cable company, and that their or^mal mtent.on 
 was to lay the cable from Ireland direct to Ne«- Hampshire. At 
 that time thev were not aware that any other 1 elegraph com- 
 nany than the New York, Newfoundland and London Telegraph 
 
V, f 
 
 42 
 
 company could hind at NcwfoimdUind. However, they had 
 learned that the agreement between the Xewfoundland Govern 
 mentand the Newfoundland and London Telegrapli companv 
 could be terminated by the (iovernment at the end of the twentv 
 years mentioned in the concession, which period terminated iii 
 Apnl ,874. They therefore had en'-ercd into communications 
 with the Newfoundland Government to see what their intentions 
 were on the subject, and after some little delay, were favoured 
 With a copy of a letter, addressed by the Colonial Secretary to 
 Mr. tield, who wa) well known as the p ^. ' .' man in con 
 nexion with the Newfoundland Telegraph con ■ . w. That letter 
 was as follows : - ' ' 
 
 "Government House, Newfoundland, 
 
 Secretary's Office, May 26, 1873. 
 T/ie Colonial Secretary to Mr. Field. 
 " S[R._The Executive Council of Newfoundland make the 
 dlowmg propositions to the New York, Newfoundland and 
 London Telegraph company, in view of a speedy arrangement of 
 certam nuatters that n.ay shortly arise under the charter granted 
 to the company in 1854. First: The surrender on theW of 
 
 of the r rith r ' ^''' """"'^'^ '^^ '''' ^^^^^ °^ ^^^ Government 
 of their nght of pre-emption. Third : These mutual concessions 
 
 to be made only on the distinct understanding that they are 
 
 JNew York, Newfoundland and London Telegra, a companv and 
 
 Labrador shall be subject, amongst other conditions, to a certain 
 tariff or charge payable to our Government on mes ages sent or 
 received through or by such cables, or over their line n tl^ 
 1 land. Fourth : l( the above arrangement fails, the pre-ei^.tK e 
 clause to be put in force by this Government. ^ 
 
 " I have, A-c, &c., 
 
 "(S'\^''H'^U JAS. L. NOOXAN, 
 
 Colonial Secretary." 
 
 This letter was further confirmed in the House of Common^ 
 
 one or two evenings ago. when the L.^der-Secretary^^^tatrf ^ 
 
 tne colonies, m answer to Sir James Kennaway. sll that i|^ 
 
 P 
 
43 
 
 the intention of the Newfoundland Government to adhere to that 
 arrangement. He had further received a communication from the 
 Newfoundland Government, dated the i6thof July, 1S73, which 
 stated their determination to adhere to the proposal submitted for 
 the acceptance of Mr. Field. Hitherto, Mr. Field had made no- 
 reply to the communication he had read ; but, however, the share- 
 holders would see clearly that the effect of it was, that the New- 
 foundland Government intended to throw open their shores to 
 any cable, and that they would thus have the opportunity of 
 going there, as well as any other company. He thought that, 
 for long distances, there could be no doubt that the shorter line 
 was an immense advantage. In the direct line which they had 
 proposed to lay from Ireland to Newfoundland, it was expected 
 that they would not be able to send more than nine words per 
 minute. If the cable went round by Newfoundland and Nova 
 Scotia, they would be able to communicate at the rate of seven- 
 teen words per minute. They would therefore, gain an absolute 
 advantage in point of speed ; and they would also be able, by 
 carrying the cable to Nova Scotia, to obtain the Canada traffic, 
 and from thence to New Hampshire. He had no hesitation in 
 saying that all authorities on the subject would tell them that 
 it would be highly beneficial to the company to adhere to this 
 route. They would incur no more extra expenditure by this 
 route than they had bound themselves to in the first instance ; 
 and it appeared, from inquiries by their consulting engineer, that 
 if they landed the cable at Newfoundland, there would possibly 
 be a saving of about £6,q^o upon the amount they had bound 
 themselves to pay. If they were not able to land the cable in 
 1874, as they hoped they would, some additional expense might 
 be incurred, but that additional expenditure would be only 
 required for a small period, for eventually they felt certain that 
 everything would be for the benefit of the company. The long 
 and short of the matter was, that by landing the cable at New- 
 foundland they would get a better article for their money, and 
 would have messages at a cheaper rate than they thought that 
 they would be able to do when they put forward their original 
 prospectus. He wished also to say a few words as to the Messrs. 
 Siemens. He had taken the opportunity of visiting their works, 
 and diere he saw that every possible security was being adopted 
 
44 
 
 by Messrs. Siemens, and by the company's consulting engineer 
 to secure the ver>' best possible cable that could be made 
 Every piece of copper wire and every bit of rope was specially 
 tested before they could be used, and each piece was numbered, 
 so that if at any future time an accident should happen, the 
 Messrs. Siemens would be able to tell in which piece the break- 
 age occurred. He then proposed-" That in the opinion of this 
 meeting it is desirable to adopt the recommendation of the board 
 and make such arrangements as will enable the company to land 
 Its cable at Newfoundland and Nova Scotia, or either of them 
 en route to the United States ; and that the directors be requested 
 to make such alterations in the contract with Messrs. Siemens 
 iirothers, and take such steps as in their judgment may be best 
 calculated to effect this object." 
 
 Lord Bury, M.P., seconded the resolution. 
 The Chairman : W, .Ud an)- gentleman like to make any 
 observation.^ I shall be happy to do my best to answer any 
 question. ' 
 
 .^. ^^f ^^''^;;!«^'^^''- "iq^ircd if they had the right of carrying 
 the cable to ^ova Scotia. He asked because he had heard that 
 an American company possessed the sole right 
 
 The Chairman said that they were not aware of anything 
 which would prevent them going there to-morrow 
 
 Scotit"'"^ ^^"'^' '^'"^ ^^''"''' ''''' """ ^^I'ficuJty in going to Nova 
 
 Mr H. Labouchere said that there would be no difficulty in 
 going there, as recently a bill had passed through the Canadian 
 Legislature which threw tlie countiy open to all comers 
 
 The resolution was then i,ut to the meeting and carried 
 unanimously. 
 
 A vote of thanks to the chairman closed the proceedings. 
 
 (From the St. John, N. B., Daily Telegraph, July 29 ) 
 We are glad to find that Newfoundland is battling against 
 the ocean cable monopoly. The right of pre-emption reserved 
 to the island was a wise one in the interest of that colony. Great 
 Britain and her possessions, and, indeed, the whole world. It is 
 not desirable that any one man or company should have, for all 
 time, the exclusive right of landing cable, on the island We 
 
 ■•■'w«*rrp.»ffi*.j^^^jt.« ■ 
 
45 
 
 trust tluit the right of pre-emption has been legally secured by 
 the island and will not be surrendered. 
 
 THE SHORTKST ROUTE TO AND FROM EUROn-.— 
 
 via NEWFOUNDLAND. 
 
 1!V VWM RKV. M. HARVEY, ST. JOHN'S, N. V. 
 (From the Maritime Monthly, June, iSjj.) 
 At the present day Newfoundland seems to be emerging 
 from the traditionary fogs in which for ages it has been enveloped, 
 and to be gradually rising into that importance to which its 
 remarkable geographical position and fine natural resources fairly 
 entitle it. It has long been noted for its cod and seal fisheries ; 
 and the silvery quarries of its surrounding seas have been wrought 
 for centuries without any symptoms of approaching exhaustion. 
 Now however, it is becoming known that its primitive rjcks con- 
 tain rich veins of copper, nickel and lead ; that iron ore is to be 
 found in proximity to a promising coal field, on the western 
 coast ; that marble and gypsum beds are extensively developed, 
 and that great breadths of fertile land exist, capable of supportmg 
 many thousands of inhabitants in comfort. In addition to these 
 substantial attractions, which are operating to draw attention to 
 this fine island, there is the charm of an unknown interior, which 
 only one white man has ever yet crossed. What its vast savan- 
 nas, occupied only by the bear, the wolf and the reindeer, may 
 contain, of the valuable and wonderful, no man knows. Its hills 
 and plains and " forests primeval " are less known than those of 
 any other portion of the New World. Only a narrow fringe 
 round the coast has been yet explored, and even that but im- 
 perfectly It is not creditable to modern enterprise, that an 
 island whose area is nearly four times as great as that of Belgium 
 and which contains 12,000' square miles more than Scotland, 
 should at this day be a terra incognita, especially when we re- 
 member that it is the most ancient of Britain's colonial possessions, 
 
 and lies nearest to her shores. , , , a 
 
 It would seem, however, that the remarkable and command- 
 ing geographical position of the island is destined to secure for it 
 that attention which its natural attractions have hitherto failed 
 to command. Nature has marked it as the proper terminus for 
 
46 
 
 their benefits arc f:,;::;:L:^^^^^^^ 
 
 Those already laid down em rgc Vron^ t t T"': '"'"'"''■ 
 the sl,ores of Newfoundland ; !n/"uJt!T °"'" °" 
 it is possible to find any other safe and r u "•''" "■'"•'"'" 
 nately, the eharter of the '■ NW Yo t N r ' u""'"' '•""'"- 
 don Telegraph company" sec a-s^o the r "" "'" '"" ^°"- 
 
 foundland a right of pre-emp;:: wh , [rwrrf "' f'-'^^" 
 for the cost of nlant th>^ l.l u- u ^"^^'^-^ 't to purchase, 
 
 well as the subma*:! 'a s th etd":;;""^"^ ""= ''^'^"''' " 
 date of granting this chart r.' TW priowmt ''''"" '™"' ""^ 
 In all probability the colonv will t en rTh ' ""''"f ' '" "^^■ 
 of landing cables on the island. oJvt™ n^e'™ "■'^'' 
 named above, and thus end a monopoly whch IL , ™P""^ 
 at the outset of trans-atlantic tele^raohl i^ 1 , 'f ""'"''^"y 
 to maintain, i„ view of internati^n 1 "n't ^ s n\ '' 'r^''^ 
 bable that, in the future, the island Jm th k "°' '"PP™" 
 
 telegraphic station bctwen America and thonTr'^ ""^ S^^''* 
 it will be the landing place foT t . ! *°'''''' ^"'' "''" 
 
 the Atlantic, and th? Si::;t„rX:':i^t '^f'hT 
 nerves that unite the two hemispheres R ?■ "''' ""^ 
 
 American continent within ,640 '^^^ ^;^^""^. -' f™-" the 
 havmg in its deep bays, whose ar^ stretch so T'"' '""" 
 
 recesses for the landin.. of cables T " '"'*''<^' ^^'^ 
 
 for oceanic telegraphy Nort 'i "^r'^'" """''""^ '■"^"'"^^ 
 the ocean bed between Nevf";- I^"'"'' ^'^ '° ^"'°°thed 
 greater part of it "ovel ^Th r "' ''"' '"''"'''• '^at the 
 safest and best of , 1 1 ^n A,T '"°^"f •-""• ^"^ P--'» "»•■ 
 Once dropped into those e^nfd'^hf.^'-^'^'T''^ "''^^' 
 reach of danger. Professor Hut-I. ^ "'''' '"'y°"'^ the 
 
 Piece of Chari<:"_"Ther«u"t o ^^iT' '" ""'' " ^'""'^" °" ^ 
 know the contours and the natur.„r „ ■'" T'^^'""'' '^ that we 
 the North-Atlantic, for ^l^^ T^^'T'f ""'"'' '^ 
 west, as well as we know that of, n "'7°^^ ""''« from east to 
 a prodigious plain-onc of the wilr"' d "" "'' ''"''■ '' ^ 
 the world, IftheseaweredrlCdtff "'' '=™" P"^'"^ "• 
 
 gon all the way from Vain, f' ^"^ ""S"" '^""^ a wag- 
 
 to Trinity Bay i^ IZlTCi ""^ ''''' T^" "' '^^'-'- 
 
 And, except upon one sharp 
 
 -)p«'Ml(il-fe-u«,w»!.,wyi«- 
 
47 
 
 incline, about 200 miles from Va'.entia, I im not quite sure that it 
 would even be necessary to put the skid on, so gentle are the 
 ascents and descents upon that long route. From Valentia the 
 road would lie d )wn hill for about 20D miles to the point at 
 which the bottom is now covered by i,;oo fathoms of sea-water. 
 Then would come the central plain, more than a thousand miles 
 wide, the ineciualilies of the surface of which would be hardly 
 perceptible, though the depth of water upon it now varies from 
 10,000 to 15.000 feet ; and there arc places iu which Mount Hlanc 
 might be sunk without showing its peak above water. Beyond 
 this, the ascent on th'e American side commences, and gradually 
 leads, for about 300 miles, to the Newfoundland shore." Such is 
 the great bed, smoothed by nature's hand, abng which the tele- 
 graphic cables may stretch in safety between the two continents. 
 No fear of abrasion from jagged submarine cliffs, or chafing 
 acrainst sharp rocks. The deep-sea mud.whichthe men of science 
 tell 113 is substantially chalk, receives the slender rope of wire, all 
 along this ocean plain, and safely embeds it in its soft substance, 
 protecting it from all injuries. Only within a comparatively short 
 distance from the shores can any fatal wound be inflicted. 
 
 These natural advantages render it highly desirable that the 
 island should be thrown open to telegraphic enterprise, and 
 every facility granted for the landing of cables on its shores. 
 The interests of civilization require that it should be preserved 
 free from all monopolies. No doubt the colony, in exercising 
 its right of pre-emption, will have to expend a certain amount 
 of money in buying up the existing line ; so that a small toll on 
 messages passing over its wires would not be unreasonable ; and 
 in the end this might become an important item of revenue to 
 aid in developing the resources of the country. But it is of the 
 last importance, in the interests both of Britain and America, 
 that the exclusive right of landing telegraphic cables on the 
 shores of Newfoundland and Labrador should be terminated, 
 and " right of way" secured by the Government of the colony. 
 Should ''such purchase as I have referred to not be effected, the 
 present- monopoly would be prolonged for thirty years, in terms 
 of the present charter. Already an application from a new 
 company, to use Newfoundland as a landing point for their 
 cables has been made, in anticipation of pre-emption being ex- 
 
4 I 
 
 48 
 
 expends .„. f^Jt. L.elli^rj::;::::;:;/^^'-^^^^^^ 
 
 Bay, to Cape Ray, a sub.narini: cable bdnr^n, K ? ""-■ 
 
 point and Cape North, in Capo 1 iroto , ll j t "'^:"" '"" 
 I'laccntia Hays are sevcre-I bv. n,..I. r? , , ^'""^y '•'"•' 
 width; and last yo^r th ^'C v:r ' C.'r''7r"''''-~' '" 
 London Telegraph Company'' lid <1, , ^ • Y '^^''"''- ""'' 
 I'laccntia ™, St I'ierre to SV,ln «'bmar,ne cable fron, 
 
 ';.^Hed overland, 1!^^^ ^u:^- ^r:^:::^-^'^^"^ -tab. 
 this route a junction is effected betuee fh > '■"="-""■'• »>• 
 is landed at St. I'ierre and th,r' '"'""'' '^•''^''•' "''">'' 
 
 - that in cascof accM;nTL „:^;;t;'X ^:""'r'-^"' ^ 
 other can be called in. U'lnli i an, °w H i, ^ , ." i„:f ;' '•"•■ 
 gran, has announced the amafeamation of the t,™ co^^Lls" 
 
 CONCLUSION. * 
 
 The foregoing documents and evtnets . „ . 
 conclusively the following points " '" "'■'"'■'■'■ 
 
 >antic^a'^;:^;,^^sS■';;:^' "''"■'" '"■■"■"- ^^ "" At- 
 
 graphic purpose., ^oX-ro^trw:;::;' l^er'T^ T' ^°^ '^'- 
 that trans-atlantic telegranhv can h,rr , ^''°P'='' ^ =*"'' 
 by using its shores as a'latL.: te Lt r' ^ T1 °" ""'"^ 
 is indispcn.,able in ma.ntainin: tele, r pi?'e "V" '""" "'••'"^' 
 tween the two hemispheres ° '"-'"»"['''"= comn,cn„catio« be- 
 
 iand woli'":p::::n,;"b:::::;i"= „"™"p"'>-:'--">.'tcd Newfound. 
 
 graphic centres i„ d,e v" d " Z '""'' '"'P°'''"' '^''=- 
 
 - '':-nue, and in r^ .^t^^ZZ:! '" '-'-'^ 
 
 J. t nat a contmuance of the r>r^...„„> 
 prejudicial to the interests of tl ^^ """"P"'-" '■' '"ghly 
 
 rests of the civilized worl wi' °"^ "' ^''-'" "^ '» "'= 'nte- 
 
 possible date, is most dSable. ' "^ '"°""°"' ^' '"^ -^'-' 
 
 tin,etft^rThe',;thtf"Iri:" f '^^"''-"'"-^ can at any 
 emption," and puLha ^T^i:;^T '" -i'^"'' °^ "^^^ 
 existing companies on the ve^ mo^ /'"" and pla«t of the 
 
 tne very moderate terms defined in fK. 
 
 ■•'■*>»mmmmmsmm,ms 
 
direct (Jnitei! 
 of tclcgrapli 
 - of Trinity 
 'ctvvccn that 
 Trinity and 
 rcc miles in 
 cliami, and 
 ■ cabh; from 
 cln^r estab- 
 :t-'ntia. By 
 •iblc which 
 round land ; 
 aid ©r the 
 es a tele- 
 1 panics. 
 
 establish 
 
 )f ail At- 
 for tele- 
 tcd; and 
 1 on only 
 lis island 
 tion be- 
 
 iwfoiind- 
 nt tele- 
 5ortance 
 
 highly 
 ic inte- 
 carlicst 
 
 49 
 
 act of 1854, and that, in the opinion of the most eminent counsel 
 in I^n^dand, these rights are indefeasibly secured by statute to 
 the colony. To ne^dect the enforcement of such important 
 ri^'hts would therefore be a betrayal of the public interests. 
 
 5. That in terminating' the existing monopoly, (iovernment 
 will be warmly sustained by public ojiinion in this island as 
 well as in Britain, the United States and the Dominion oj 
 Canada. 
 
 6. That the termination of the monopoly will speedily be 
 followed by the landing of new cables on these shores, one com- 
 pany having already a cable in process of manufacture, with the 
 view of adopting this route ; and that the cost ot sending mes- 
 sages will, in all probability, be reduced to a fourth of the 
 present charges, thus introducing a new era in trans-atlantic 
 telegraphy. 
 
 7. That in return for the valuable concessi«jns made to the 
 New York, Newfoundland and London Telegraph company, this 
 colony has as ytt reaped few, if any, solid returns ; and that an 
 opportunity now offers of securing, those advantages to which 
 the colony is fairly entitled. 
 
 8. That in view oi the extended use in the future of telegraphic 
 communication between the two hemispheres, as population mul- 
 tiplies, the removal of the monopoly opens up a source of revenue 
 for Newfoundland which may be indefinitely increased, and 
 which will prove of great consequence ir developing the resour- 
 ces of the country. 
 
 9. That the course already taken by the Government of 
 Newfoundland, on this important matter, seems to have met the 
 approval of the press and public of Britain and America, as 
 well as that of the Imperial Government, and appears to be 
 entirely in accordance with the current of public opinion in 
 Newfoundland. 
 
 at any 
 
 of pre- 
 
 of the 
 
 in the