s^. .^^# o v^.^. IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I 1.25 ta i&i |22 M I^U4 VQ V /A 4 m '/ T' CIHM/ICMH Microfiche Series. CIHIVI/ICMH Collection de microfiches. Canadian Institute for Historical Microreproductions Institut Canadian da microreproductions historiquas 1980 Technical Notes / Notes techniques The institute has attempted to obtain the l>est original copy available for filming. Physical features of this copy which may alter any of the images in the reproduction are checked below. L'Institut a microfilm^ le meilleur exemplaire qu'il lul a At* possible de se procurer. Certains difauts susceptibles de nuire A la quality de la reproduction sont notte ci-dessous. 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Las images sulvantes ont At* reprodultes avec le plus grand soin, compte tenu de la condition at de la nettetA de rexemplaire film*, et en conformity avec las conditions du contrat de filmass. The last recorded frame on each microfiche shall contain the symbol -^> (meaning CONTINUED"), or the symbol y (meaning "END"), whichever applies. Un des symboles suivants apparaftra sur la der- nlAre image de cheque microfiche, selon U ra»: le symbols — ► signlfie "A SUIVRE '. Ic t . T*bo(b y signlfie "FIN". The original copy was borrowed from, and filmed with, the Idnd consent of the following institution: Library of tha Public Archives of Canada Maps or plates too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: L'exemplaire film* f ut reproduit grAce it la gAnArositt de rttablissement prAteur suivant : La bibliothique das Archivas publiques du Canada Las cartes ou les planches trop grandes pour Atre reproduites en un seul clichA sont filmAes A partir de I'angle supArieure gauche, de gaurhe A droite et de haut en bas. en prenant le nombre d'images nAcessaire. Le diagramme suivant lllustre la mAthode : 1 2 3 1 2 3 • DOCUMENTS r.ia IN REFKIJENCE TO THE ESTABLISHMSNT OF DIRECT TELEGRAPHIC CONNECTION BETWEEN AUSTRALIA, NEW ZEALAND, CANADA, AND GREAT BRITAIN. £on&on : McCORQUODALE & CO., LIMITED, CARDINGTON STREET, N.W. 1886. * ■ 3 f DOCUMENTS IN KEFEBENCE TO THE ESTABLISHMENT OF Direct Cokgrapl^tc (Eonncction BETWEEN AUSTRALIA, NEW ZEALAND, CANADA, AND GREAT BRITAIN. Condon : McCORQUODALE & CO., LIMITED, CARDINGTON STREET, N.W. ORDER IN COUNCIL IN BEFBBEMCB TO THB ESTABLISHMENT OF TELEGRAPHIC CONNECTION BBTWBEM THB AUSTRALIAN COLONIES, CANADA, and GREAT BRITAIN. PBIVT COUNCIL, CANADA. Sir, Ottawa, \Oth June, 1886. By direction of the Right Honorable the President of the Council, I forward you a copy of an Order in Council, dated 8th June, 1886, with respect to the subject of the proposed establishment of telegraphic communication by cable from the Australian Colonies, for your action and co-operation as therein expressed. I have the honour to be, Sir, . . Your obedient Servant, JOHN J. McGEE, •M-JtS^O^ '^>''^i Cleric, Privy Council. The Hon. Sir Charles Tupper, G.C.M.G., C.B., Bigh Commissioner for Canada, 9, Victoria Chambers, London, S.W. CANADA. Certified Copy of a Report of a Committee of the Honorable The Privy Council, approved by His Excellency the Governor-General in Council, on the 8th June, 1886. On a memorandum, dated 22nd May, 1886, from the Minister of Public Works, submitting a communication from the High Commissioner for Canada in London, enclosing a copy of a circular addressed by the Colonial Office to the Agents General of the Australian Colonies, on the subject of the proposed establishment of telegraphic communication by cable from those Colfpies to San Francisco, the last paragraph of which is as follows : — " In view of the completion of the Canadian Pacific Railway, " it would seem to deserve consideration whether such a cable, if " constructed, might not more advantageously have its terminus " in British Columbia," The Minister represents that several communications have been received from Mr. Sandford Fleming, C.E., setting forth the scheme of a Company, represented by him, to connect eithei Queensland or New Zealand with Vancouver, B.C., by wa 3f Fiji and Hawaii, by which it appears that the estimate !ost of the Cable would exceed £2,000,000 (say $10,000,00( ind that as it is the intention of the Company to very great educe the rates at present existing for telegraphic messag )etween England and Australia, the Company would requ assistance from the different Governments interested, in tl shape of a subsidy, which is roughly estimated nt| about £70,000 per annum for a period of about 20 years. Mr. Fleming represents that the Governments interested in the project are Canada, Great Britain, India, Victoria, New South Wales, New Zealand, South Australia, Queensland, Tasmania, Western Australia, Hawaii, and Fiji, and states that advances have already been made towards some of the Agents of the Australian Colonies, with a view to having the terminus of the proposed cable in British Columbia instead of San Francisco, which have been favour- ably received. Mr. Fleming suggests that as Canada is greatly interested in establishing direct telegraphic communication with Australia, India, and the East, it would be advisable that this Government should take the initiative in the matter, and invite a conference of the Agents of the Colonies interested to discuss the subject. The Minister, agreeing with the suggestions made as to the advantages likely to accrue to Canada from the establishment of direct cable communication between British Columbia and the East, and that it would be advisable that this Government should take the initiative in the matter, recommends that advantage be taken of the Colonial and Indian Exhibition now being held in London, and the presence in that city of representatives from the Colonies interested, to obtain an expression of opinion on the pro- ject, and that the High Commissioner for Canada be requested to invite a conference of the Agents-General of all the Colonies interested, and ascertain how their respective Governments would be disposed to act in the matter, and what amount of assistance they would be prepared to give ; also, that the High Commissioner should ascertain from the Imperial authorities what assistance might be expected from them on behalf of the United Kingdom 6 and India, and that the High Commissioner report the result of his enquiries as speedily as possible. The Committee concur in the report of the Minister of Public Works, and the recommendations therein made, and submit the same for your Excellency's approval. . The Committee further recommend that the High Com- missioner be instructed to put himself in communication with the Secretary of State for the Colonies, and endeavour to secure the co-operation of Her Majesty's Government on the subject. (Signed) JOHN J. McGEE, ClerJc, Privy Council, DIRECT TELEORAPHIC COMMUNIOATION. BETWEEN AUSTRALIA, CANADA, AND GREAT BRITAIN. J Batt's Hotel, Dover St., London, lOth July, 1886. Sir Charles Tupper, G.C.M.G., C.B., High Commissioner for Canada. Sir, Having learned that the Canadian Government has instructed you to confer with the representatives in London of the other Governments interested in the projected telegraph communication between Australia and the United Kingdom, by what may be termed the Canadian route, I beg leave to submit the accompanying documents bearing on this important question. I desire to direct your attention more particularly to the enclosed memorandum, of date, Loudon, 1st July. In this document I have ventured to explain the views I ha^'e formed with respect to the projected telegraphic communication, and the principles upon which a company may be organised for carrying out the undertaking. I have consulted a number of capitalists, as well as experts in ocean telegraphy, and have quite satisfied myself that with a very moderate Government subsidy, a substantial company can be formed to establish and work the new line of telegraph on the principles laid down in that memorandum. The whole capital of the Company, to complete an in- dependent telegraphic connection between Great Britain, Canada, New Zealand, and the Australian Colonies, may be placed at £2,500,000. This capital may be divided into two parts — viz., £1,500,000 to bear a low rale of interest, secured for twenty-five years by Government subsidies ; . :£1, 000,000 to be share capital, appor- tioned between Australian, Canadian, and English capitalists. This capital will be ample for the whole undertaking. With regard to the Restoration Sinking Fund, I have consulted some of the best experts on ocean telegraphy on the general question, and I learn that opinions are rapidly changing with respect to the life of modem cables. The first cables laid may be considered to have been to a large extent experimental, and advantage may now be taken of the very large experience gained. ' It is found that in ordinary cases the breakages are apt to take place within a comparatively few years after the cables are laid, and that once properly repaired faults are not likely to recur. The opinion is gaining ground that the life of a cable, as now made, instead of being ten or twelve years, is more likely to Ire double that period. As the conductors and insulating materials employed are practically indestructible, it is difficult to conceive that a cable, after lying twenty or twenty-five years at the bottom of the ocean, performing its functions satisfactorily, will not continue to be serviceable for an indefinite period. I mention these views to show that there does not appear to be any sufficient reason for burdening an enterprise at its inception by providing a large Sinking Fund for restoration at a very early date. Be that as it may, the soundness of the principles I have laid down in the memorandum cannot be gainsaid. ..-ft , We are aiming to establish a work which will result in all future years in a great saving to each Colony. It is suggested that each Colony, in proportion to the saving effected, should set aside a small portion of the money so saved to keep the work which effects the economy, in an efficient condition. For every hundred pounds saved, ten pounds, or perhaps eventually five pounds or less, is proposed to be funded to cover possible contingencies. With regard to the probable earnings for revenue purposes, it will be seen, on reference to the memorandum of 6th April, that the foreign business of the Australian Colonies for the year 1889 is estimated to be 85,000 messages, or about 850,000 words. It is not to be expected that the whole traffic will come to the new line, for the existing telegraph company will undoubtedly reduce its charges in order to retain a share of the business. Let us assume that the business will be equally divided, and that the new Company will only have half of the 850,000 words; this will give 425,000 words, and we may reckon this business at four shillings per word, as the terms made with the Canada Pacific Railway Company will admit of " through " messages being sent at that rate. 425,000 words at 48. ... £85,000 Less cost of working and land service, say 40,000 Giving a balance of £45,000 Equal to 4^ per cent, on £1,000,000. This estimate is for the first year the line can be in operation. On careful examination it will be seen that the estimate is an exceedingly moderate one, no allowance having been made for the great impulse which will undoubtedly be given to telegraphy and general business by the large reduction in charges.* There cannot be a doubt that the earnings will go on greatly increasing, while the working expenses will increase but little. It would not be at all a high estimate to double the net earnings in a very few years. This would give 9 per cent, on the whole share capital, and it may be assumed as certain that the increase would continue year by year. I have explained that a subsidy is needed for the purpose of securing a million and a half of pounds at a low rate of interest. If the Grovemment subsidies be sufficient to provide a sinking fund to pay off the £1,500,000 in twenty-five years, it would be proper to carry all excess of revenue over a given dividend, say over 7 or 8 per cent., to the Restoration Sinking Fund. It will be noted, as one of the proposed conditions, that not only will the charges on messages be reduced to less than half the present rates, but that messages sent by any Government shall be transmitted free to the full amount of its subsidy. This feature will place it in the power of each contributing Government to receive directly back each and every year its full proportion of the subsidy contributed. I respectfully submit that the scheme above outlined is perfectly practicable ; it will no doubt find warm and active hostility on the part of those pecuniarily connected with the * Beferring to the recent great reduction in charges between London and New York, the Report of the Directors of the Direct United States Cable Company for the six months ending 30th Jane last states : " So far the reduction has resulted in more than doubling the volume of trafSc, and the Directors are not without hope that with a revival of trade it may be still farther increased." The Beport of the Anglo-American Telegraph Company also states that the traffic has increased over 110 per cent, since the rates were reduced. m existing telegraph company — those whose policy has been to maintain high rates in order to secure large profits. Such objections as they may oflFer should have little weight in view of the great Imperial and Colonial advantages which the new undertaking will secure. The better policy for the companies to adopt will be to lower charges on messages and derive profits from the greatly augmented business which will certainly follow.* The terms and conditions which I have indicated would undoubtedly command the organisation of a substantial and energetic Company to carry out this new and important under- taking in the most satisfactory manner. I have the honour to be, Sir, Your obedient Servant, SANDFOKD FLEMINa. * Since the date of this letter the Reports of the Associated Atlantic Cable Companies for the past half-year have been pnblished. Thej generally favour this new policy. The low tariff introduced has resulted in a very much larger augmentation of traffic than was anticipated as a first result. " The unexpected increase in the volume of traffic immediately upon the introduction of the sixpenny tariff has induced the Directors to consider the expediency of adopting permanently a system of low rates. ... It is obviously their interest to enconrage a very large traffic at low rates." — Report A. A. Tel. Company. 12 TELEGRAPH BETWEEN AUSTRALIA, CANADA, AND GREAT BRITAIN. Memorandum by SANoroRb Fleming. 1. It is proposed that a Company be formed for the purpose of establishing telegraphic communication between Australasia and Great Britain by a new and independent line. This new telegraph is projected to traverse lands and seas beyond the control of any Power likely to prove hostile to the British Empire. 2. It is proposed that a chain of electric cables be laid across the Pacific Ocean, to connect the Australian group of Colonies with Vancouver, the western terminus of the Canadian Pacific Railway. The cables to land at such intermediate islands as may be found suitable for mid-stations. 3. Arrangements have already been made with the Canadian Pacific Railway Company for the transmission of all through telegraph business between the Pacific and Atlantic Oceans on extremely favourable terms. <* It is proposed to acquire complete control of one of the existing Atlantic cables landing on the shores of Canada, or to lay a new cable from Canada to Great Britain. 5. The whole line may be divided into three great Sections, viz.: — (A.) The Pacific Section. This section will consist mainly of electric cables, the lengths of which after allowing for slack will approximately be as follow : — 13 (1) Brisbane or Sydney to North Cape, connecting at the former with the Australian telegraph system, at the latter with the telegraph system Knots. of New Zealand... ... ..* ... ... 1,300 (2) North Cape to one of the Fiji Islands 1,240 (3) Fiji to Fanning Island 2,270 (4) Fanning Island to one of the Sandwich Islands 1,260 (5) Sandwich Island to Barclay Sound or Port San Juan, Vancouver Island 2,730 (6) Barclay Sound, across Vancouver Island and the Strait of Greorgia to Vancouver City, the terminus of the Canadian Pacific Railway ... 100 Geographical miles ... 8,900 (J5.) The Canadian Section. This section will extend along the Canadian Pacific Railway and the Inter-Colonial Railway to connect with an Atlantic cable. If it be found necessary to lay a new Atlantic cable, the land line will probably terminate at Gaspe in the province of Quebec. Distance from Vancouver to Gasp6 Statute miles... 3,450 (C.) The Atlantic Section. A new Atlantic cable from Gaspe via the Straits of Belle Isle to Ireland Geographical miles... 2,450 6. These three great sections connected, and the business under one management, it will be possible to reduce per- manently the charges on messages to the lowest practicable 14 rates, and thus render the line of the greatest commercial utility. It is believed that the reduction in rates contem- plated, and rendered possible by tiie satisfactory t<»rms agreed upon with the Canadian Pacific Bailway Company, will give a great impetus to telegraphy and promote the development of intercolonial intercourse and commerce. 7. The arrangements proposed, and the terms agreed upon, will admit of messages being sent from Australia to Great Britain on the opening of the new line at less than half— eventually, it is believed, at one-third — the charges at present exacted, 8. While the new line, established as set forth, will stimu- late commercial activity between the countries to be connected, its political, naval, and military value will be very great indeed. It is well known to naval and military commanders that no reliance can be placed on the permanency of communications by way of the Mediterranean and the Eed Sea, and it becomes obvious that the line through Canada may, during any emer- gency, assume incalculable importance. The cable across the Pacific will always be removed from the theatre of European complications. It will not only be a direct means of communi- cation between the Australian Colonies and the Mother Country, but if an emergency arises to render every wire through Europe and Egypt useless, it will still be possible to communicate with India ; indeed, every British station between South Ajfrica and Port Hamilton may continue in telegraphic connection with London. 9. To secure advantages so great — and it is difficult to say whether in a commercial, political, naval, or military aspect the advantages would be greatest — Government aid and co-operation is necessary ; but as there are twelve Governments more or less 15 interested in the undertaking, moderate assistance from each will suffice. >* . 10. The following Governments are interested in the new line of Telegraph :— 1. The Government of Great Britain. 2. 8. 4. 6. 6. 7. 8. 9. 10. 11. 12. » 5> »J J> » » » J> » J> » » 9) » » » >» 5» J> » >» » Canada, Hawaii. Fiji. New Zealand. New South "Wales. Queensland. Victoria. South Australia. Western Australia. Tasmania. India. Of these Hawaii has offered twenty thousand dollars a year (say £4,000) for fifteen years to be connected telegraphically with San Francisco, and it may be assumed that that subsidy will be available to the proposed Company. The principal assistance, however, will require to be furnished by Great Britain and her Colonies. 11. It is proposed that Government aid should be directed to two main objects, viz. : — (1) To secure the establishment of the cables across the Pacific Ocean; (2) To provide for their permitnent efficiency. The first main object — the establishment of the cables across the Pacific — can be effected if the Government assistance takes the form of an annual subsidy sufficient in amount to . : 16 - • ■;■,■; pay a low rate of interest and provide for amortization on a large portion of the capital required for this section of the undertaking. The remaining capital may be share capital, and will have to depend for dividends on earnings. 12. The perpetual eflEiciency of the cables can be main- tained in another way. It has been customary to make provision for this purpose out of earnings, but this course necessarily has a tendency to keep rates for the transmission of messages high. The policy recommended is to reduce traffic rates to a minimum, and, in order to do so, earnings should be charged with as little as possible beyond working expenses. It is therefore suggested that the renewal and duplication of the cables may be eflfected by a special provision. In the Memorandum attached hereto (6th April, 1886), it is clearly shown that the establishment of this new line in the manner set forth will result in a very large saving in the gross foreign telegraph business of all the Colonies it will serve. A com- paratively small percentage of the savings so effected would provide for renewing, duplicating, and maintaining the cables in perpetual efficiency. It is proposed, therefore, that a Restora- tion Fund be provided from this source. Taking as a basis for computation the difference between present charges and the reduced charges, probably five per cent, or less will eventually be found sufficient; but it is suggested that at first ten per cent, of the savings accruing to each Colony should annually be funded for the purpose set forth. If after a period of ten or more years it be found that less than ten per cent, will effect the desired purpose, a smaller percentage of the savings may be carried to the Restoration Fund. The object in view is to provide sufficient, but no more than sufficient, to restore the cables whenever they may become unserviceable, and to maintain the line of commmiication in the highest condition of efficiency for the business to be transacted. 13. These provisions assented to it will be possible, immedi- ately on the cables being laid, to adopt a scale of charges for ordinary messages between the Australian Colonies and Great Britain of four shillings per word, press messages at half or con- siderably lower rates. It is proposed that Government messages be i/xansmitted free of charge to the full amount of the subsidy and to take precedence of all other business. Batt's Hotel, Dover Stbeet, London, 1st July, 1886. 18 III (Ajapouled to Letter dated London, lOlJi Jul>/y 1886.) CANADIAN AND AUSTRALIAN CABLE. Memorandum submitted to the Canadian Government by Sandford Fleming. Ottawa, Gth April, 1886. A few years back attention was directed by the undersigned to the importance and practicability of connecting Great Britain telegraphically with China, India, Japan, and the Australian Colonies, by a line passing through Canada, and by one or more cables laid in the Pacific Ocean. The subject was reverted to last year in a letter dated 20th October, 1885, addressed to the Premier, the Right Honourable 8ir John A. Macdonald. Since these dates the Canadian Pacific Railway Company has completed a line of telegraph from the Atlantic to the Pacific, thus establishing an important section of the original scheme, leaving to be completed only the cable across the Pacific. The Australian Colonies are already connected telegraphically with England by way of Port Darwin, Singapore, Penang, Madras, Bombay, Aden, Alexandria, and through the Mediterranean Sea. The charges for messages are, however, very high, and there is always danger of interruption to business when political events assume a threatening attitude in Egypt or in Europe. A cable from the Australian Colonies, via Fiji and the Sandwich Islands to Vancouver, the western terminus of the Canadian Pacific Railway, would connect them telegraphically with England by a line which would have the great advantage to every British interest of being entirely removed from all European complications. Moreover, a very large aggregate saving in the cost of transmission would be eflfected. The Australian Colonies were first connected with England in November, 1872, consequently the following year (1873) was the first year the International line was in operation. The 19 ) was The busincFs in 1873 consisted of 8,952 messages to and from the Colonies. The last returns are for 1884, when the messages sent and received reached 48,896 ; showing an extraordinary develop- ment in eleven years, averaging an annual increase of forty per cent. This increase may, however, be abnormal, and as the last three years of the period show a more moderate growth, it will be safe to take the latter as a basis on which to estimate future business. The number and cost of messages between the Australian Colonies and Europe, for the three years referred to, was as follows :— No. of Messages. Oost. 1882 39,175 £225,567 1883 43,334 251,277 1884 48,896 270,766 These results give a fair indication of the steady growth of the business under the present high tariff. The annual increase in the number of messages is equal to 12 J per cent., and the average cost of each message sent during the three years 1882, 1883, and 1884, is £6 13s. 9d. ; the charge of ordinary messages per word (between Sydney and London) being ten shillings and tenpence, Grovernment messages eight shillings, and Press messages six shillings and sevenpence. The undersigned has brought the question of a cable from Vancouver to Australia before the Board of Directors of the Canadian Pacific Kailway, and has succeeded in effecting arrange- ments of a most satisfactory character. This Company will, within a few weeks, have telegraphic connections with all the principal points in the United States, including all the important cities on the Pacific coast, and will be able to transmit messages on such terms as will enable the Pacific Cable Company to secure practically the entire business between the Continent of America and the Australian Colonies. The cable leading from Port Darwin, in the direction of India, will, moreover, enable the new Company to command a very large share, if not all, the business between America and Asia. It will be practicable under these arrangements with the so Canadian Pacific Railway Company to transmit messages between the Australian Colonies and England at considerably less than one-half, possibly at one-third, the present charges, and between the Colonies and all the important cities in the United States and Canada at one-quarter the rates now exacted. It is proposed, immediately on the Pacific cable being laid, to lower the charges on ordinary messages between Australia and England from ten shillings and tenpence to four shillings per word. This reduction will bring the cost of an average message from £5 13s. 9d. down to i?2, and without doubt will give a very great impetus to telegraph business. It is not easy to estimate with any approach to accuracy what increase would result from this cause — men of experience in such matters are of opinion that the business would probably be doubled ; but even if we limit our expectations to its ascertained normal growth, and base our calculations on a steady increase of traffic of only 12 J per cent, per annum, we shall see that the advantage of the new line to the Colonies will be immense. The latest returns with 12^ per cent, per annum added give 85,000 messages for 1889. Assuming that the new cable would then be laid and the Canadian route in operation throughout, the estimate for a series of years would be as follows : — Saving effected, being the difference between £u 13s. Od. and £2, or £3 ISs. 9d. per Message. £313,400 350,275 392,550 438,800 490,420 542,050 612,125 685,875 767,000 862,000 . No. of Messages based on an annual growth of 12^ per cent. 1889 85,000 1890 95,000 1891 107,000 1892 119,000 1893 133,000 1894 148,000 1895 166,000 1896 186,000 1897 208,000 1898 234,000 Total 1,481,000 £5,456,497 SI It will thus be seen that, without taking into account any additional increase in the number of messages which the great reduction in charges would undoubtedly produce, a very jreat saving would be effected in the Australian business. If the estimate be well founded it would amount to ;£5,456,497 within the first ten years, being an average saving of over half a million pounds per annum. The new line when established will form a connection through South Australia with Port Darwin, and thence by existing tele- graph lines with Asia and Africa. It is obvious, therefore, that it possesses a peculiar interest to the Imperial Government, as it will afford the means of communicating noL only with the Australian Colonies independently of lines passing through the Mediterranean, but also with India and every British Station between Hong Kong and South Africa. Canada has already done much towards establishing the new line of telegraph between Great Britian, Australia, and Asia. She has, by an enormous expenditure in connection with her national railway, brought Vancouver within telegraphic reach of England, and she has thus rendered it a comparatively easy task to complete the whole connection. It has cost in all about £40,000,000 of public and private money to establish the Railway and its adjunct the telegraph by which Vancouver has attained the commanding position which it occupies in respect to the Pacific cable scheme. The Pacific cable is, however, in some degree a corollary to the line across the Continent, and it is reasonable to expect that the Canadian Government will readily co-operate in its establishment. The following Governments are more or less interested in the undertaking : — 1, The Government of Great Britain. 2. „ Canada. 8» „ Hawaii. 4* „ Fiji. ' 4* „ New Zealand. : lii ' , „ New South Wales. » *)0 7. The Government of Queensland. 8. ,, Victoria. 9. 10. 11. 12. It will not be poss South Australia. Western Australia. Tasmania. India. ible to carry out the undertaking by a private Company without Grovemment assistance. As electric cables are perishable, provision must be made for renewing or duplicating them when circumstances require it.. It is also obvious that the reduced charges which are proposed will require a greatly increased business to yield a sufficient profit to meet dividends on capital. The Company would, therefore, require a subsidy for a terra of years or until the business increased to such a volume as to render the line self-sustaining. But as the subsidy would be borne by so many Governments it would fall lightly on each. The first step to be taken is to ascertain to what extent the several Governments would be disposed to co-operate in estab- lishing the work. (ApiKnded to Letter dated London, \0ili July, 1886.^ TELEGRAPH FEOM CANADA TO AUSTRALIA. Letter to the Premier of Canada by Sandford Fleming. Ottawa, Oct. 20, 1885. The Ri(jht Hon. Sir John A. Macdonald. Sir, I had the honour a few years back to submit to the Canadian Government a scheme for forming a great Inter- Colonial and Inter-Continental Telegraph system, a prominent feature of which was the laying of an electric cable across the 23 the nter- inent s the Pacific Ocean, from the Western Coast of British Columbia to Aaia. The great object which the scheme had in view was the establishment of an unbroken chain of telegraphic communica- tions between England and Japan, China, India, Australia, New Zealand, and South Africa, directly through Canada, thus con- necting telegraphically all the great British possessions in every quarter of the globe without passing through Europe. The accompanying memorandum, dated London, Nov. 20, 1882, together with the documents submitted by the Secretary oi State to the Canadian Parliament on the 20th February of the same year, will recall to your recollection the important public objects which the scheme had in view, and the efforts then made to carry it out. You are aware that through various causes these efforts proved unsuccessful ; bu!. the time which has elapsed has in no way lessened the importance of the project, or rendered it more difficult of accomplishment. The political events which have so frequently assumed a threatening attitude in Europe, the difficulties which are never entirely absent in Egypt, point to the constant danger of inter- ruption to existing communications by the Eed Sea, and the immense importance of securing ai:^ independent line of tele- graph removed from all Eastern complications. The projected line, extending from England through Canada to the Pacific coast, in the Province of British Coumbia, and thence across the Pacific to Asia and the Australian Provinces, would supply an independent line of communication so much defdred, and in so doing would indirectly, but it is held very materially, strengthen the military and naval power of Great: Britain, while it would directly promote the highest interests of every one of the great Colonial possessions. Within the present year an overland line of telegra^)h will be completed along the route of the Canadian Pacific Railway, thus spanning the American continent, and there are a number of electric cables in operation across the Atlantic from England to Canada. The Canadian Pacific Railway Company have expressed a desire to facilitate the despatch of through telegraphic business if- ■' 24 along their line in every possible way, and are prepared to enter into a permanent agreement which, with the competition existing on Atlantic lines, will secure exceedingly low tariff rates between England and the coast of British Columbia. There only remains to be established the submarine telegraph across the Pacific Ocean. When the accompanying memorandum was issued it was thought that the Pacific cable should follow a northern route by the Aleutian Islands and Japan. It was generally believed that in the great central area of the Pacific Ocean subaqueous rocky ledges and coral reefs prevailed to such an extent as to render the establishment and maintenance of an electric cable practically impossible. That opinion was based on an imperfect knowledge of the physical character of the Pacific Ocean, and on the charts which at one time were strewn with islands, reefs, and shoals, many of which were inserted on doubtful authority, and have consequently been omitted from the latest publications. Since then, also, it may be supposed that submarine telegraphy is better understood. Be that as it may, the view is now entertained that it may not be absolutely necessary to follow a northern route, and that the successful establishment of an electric cable running directly from British Columbia to the Australian Provinces may be quite within the range of practicability. There are, indeed, extensive coral reefs in the central and southern Pacific ; but the most authentic hydrographic informa- tion establishes that those reefs are generally in great groups, separated by wide and deep depressions free from obstructions. It is further revealed by the latest bathymetric data that those depressions or troughs present (as far as ascertained) a sea floor precisely similar to that of the Atlantic, so suitable for submarine telegraphy. Those ocean depressions, alike by their geographical position and their continuity, open up the prospect of connecting Canada and Australia by a direct cable. The course of the cable would be from Vancouver to the Fiji Islands, touching at the Sandwich Islands and Fanning Island as mid-stations. From the Fiji Islands a cable connection would be formed with the existing Australian and New Zealand telegraph systems, I ex 25 ,0 enter existing between remains c Ocean. . it "was route by ^red that lis rocky nder the •actically lowledge tie charts d shoals, ind have g. Since r is better ined that m route, •ic cable Lustralian Y- atral and informa- t groups, tructions. hat those sea floor lubmarine )graphical onnecting the cable ig at the From with the Whatever route be followed by the cable across the Pacific, the object will be to bring the group of Australian Colonies into direct telegraphic connection with Canada, and secure a means of communication between them and England independent of all lines passing through or in proximity to Europe. Messages will be conveyed by the new line at lower rates than are now exacted, and the immediate effect which must follow its establishment is manifest. The cost of telegraphing between Australia and England will be reduced, intercourse will be facilitated between the sister Colonies and Canada, and an impulse given to com- mercial activity. Apart altogether from the political advantages of the new independent telegraphic connection, the gain to the general commerce of the Colonies which it would serve would justify them in co-operating with Canada in promoting the under- taking. The undertaking may be promoted by the several Govern- ments agreeing to give for a term of years a subsidy sufficient to induce a company to embark in it. The subsidy may be a fixed sum, contributed in equitable proportions, or it may be depen- dent on the business transacted by each respective Colony, and on the reduction in rates which would follow immediately on the line going into operation. It is quite obvious that the gross foreign telegraph business of any one Colony, reckoned at the difference between the present high rates and the reduced charges, would produce a considerable aggregate sum. That sum might be taken to represent the year's savings accruing to the Colony from the establishment of the new line of telegraph, and it would obviously well repay that Colony to share the amount so saved with the Telegraph Company. Suppose the accrued saving so reckoned in any one year to be fifty thousand pounds, a moiety to the Company as a subsidy would be twenty-five thousand pounds, while the Colony itself would gain a direct pecuniary benefit from the undertaking to a like extent. The illustration as presented will explain the principle on which a subsidy may be based. 26 Among the British possessions in the southern hemisphere dureetly interested in the work are Fiji, Tasmania, New Zealand, Western AustraKa, Queensland, New South Wales, South Australia, and Victoria. I venture to think that their co-operation with Canada in the manner set forth would, without difficulty and with no great delay, secure to them and to the whole British colonial system all the political and commercial advantages to result from the projected line of communication. As the contemplated work is of special importance to the Mother Country and all her Colonies, I trust I may be allowed to entertain the hope that you will be pleased to bring the subject under the notice of the respective .Governments. I have the honour to be, Sir, Your obedient Servant, SANDFOED FLEMING. 1 1 , 27 TELEORAPH BETWEEN AUSTRALASIA, CANADA, AND GREAT BRITAIN. London, Jvly 19^A, 1886. The Honourable Sir Charles Tupper, G.G.M.Q., C.B., High Commissioner for Canada, London, Sm, The undersigned, who were present at the meeting of the Agents General on the 12th instant, having been requested by you to ascertain the amount of subsidy which would be necessary to enable a Company to connect England telegraphi- cally with Australia through Canada and the Pacific Ocean, have the honour to state : We have considered the whole question and are of opinion that a substantial Company can be formed to establish an eflBcient telegraph connection on -the route proposed for a total annual subsidy of £100,000 for twenty-five years. The subsidy may be apportioned as follows, i.e. : — 1. Great Britain, on behalf of the United Kingdom, India, and the Crown Colonies ... ,*. ^. vianacia ••• ... ,,, ... 3. Queensland 4. New South Wales 5. Victoria ... 6. New Zealand, Tasmania, and Western Australia £50,000 10,000 10,000 10,000 10,000 10,000 £100,000 28 Or should the Imperial Grovemment, by an arrangement with the Colonial Governments, itself guarantee the whole amount, the total subsidy may be considerably reduced, as the Imperial guarantee would enable the Company to find capital at a lower rate of interest. With such guarantee a total subsidy of £90,000 for twenty-five years would suffice, and thus reduce the annual contributions. The subsidy mentioned is calculated to pay interest on borrowed capital, and provide a sinking fund for its repayment in twenty-five years. As the Company would transnrit all the messages of the various contributing Governments free, and the rates chargeable to the public for " through " messages would not be more than one half the present regular tariflf charges. Great Britain and the Colonies would save a much greater sum than the amount of subsidies above proposed. If the several Governments agree to pay over to the Company a percentage of the gross savings which would thus be .effected by each country, the Company could still further reduce the charges to , the public. "We have the honour to be, Sir, Your obedient Servants, ^ DONALD A. SMITH. RANDOLPH C. WANT. ANDREW ROBERTSON. L-i^; ; MATTHEW GRAY. - SANDFORD FLEMING.