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Las diagrammes suivants illustrent la mAthode. 1 2 3 1 2 3 4 5 6 /: 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