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They b to estima volved in graph, ui acquired inonopol; as ail elei kt'l'S ■ A ' i i. lfc M I * kV .-^■'^'"" ^ REPORT OF COMMITTEE TO TUB Meeting in liic Merchants' Exchange Reading Room, JANUAKY 13tlv, 1859, UfON THE SUBM^EIlSri]] CA^BLE Bet\%eeii Boston amd Halifax. The undersigned, a Committee appointed at a meetinfr of the merchants and business men of this city, to consider the expediency of Uiying a Submarine Telegrapliic Cable from Cape Ann, Massachusetts, to Yarmouth, Nova Scotia, beg leave to REPORT : That they have devoted much time and consideration to the subject, under a conviction of its great importance not only to the interests of this city, but also, under the peculiar circumstances of the case, to other cities of the United States, Tlu?y believe that comparatively few persons are prepared to estimate the power, ibr good or evil to the community, in- volved in the manner of conducting the business of the tele- graph, until they have a thorough knoAvledj';e of the subject, acquired by careful examination and reflection. Under a monopoly of any one corporation or person, the telegraph, as an element of immense political and commercial power, <. becomes susceptible of more or less abuse by the snbscrvi- ency of public interests to private ends, to a do^'ree far be- yond that of the power of other corporations or institutions. Your committee have been itifonned, from sources entitled to confuL'nce, that efforts have recently been made to con- solidate all existing ..^ign-aphic companies in the United States into one company, w;Mch practicuilly would place the transmi^sion and distrilmtion ..f the foreign, and much of the domestic news throughout the country, under the imme- diate control of the agent of the "associated press," in New York; a concentration of power, which, in the opinion of the committee, should be confided to no one Individual, company or corporation, without such supervision and check in its liability to abuse, as we are persuided do not at present ex- ist. As an illustration of the power whicli would be thus conferred, wo would refer to the statement of the agent of the "associated press," published in the Boston Evening Ga-^ette, of 10th Nov. last, in which he alleges, that, by the express terms of a contract existing between the "associated press and tlie Nova Scotia Electric Telegraph Company, the latter arc bound to surrender their wires to the use of the agent of the press, from the time the nev. report of the press or its agent is delivered at the telegraph office in Halifax, until the transmi^.sion to Sackvillc of the whole of the stipu- lated three thousand words has been accomplished. The com- mercial ncAvs to be thus transmitted is prepared for the press 171 cypher, the key of ichich is confided to none excepting a very few of our old and well known agents." To transmit three thousand words often requires the use of the Avires from four to six hours. Is it not, then, oDvious that, under the proposed consolidation and consequent mo- nopoly already referred to, during the period of trar.ivmission, and within the limit of three thousand words, by the use of cyphers, messages not strictly the property of the press, but of personal or private nature, may be tratismitted, and the meaning known only to one man, and his few confidential agents; and may not that knowledge, when received in ad- iN X I. ,>w .^ 5: ^ 8 vancc of other Tno?sa,7es to individuals, and which may con- tain tlic ncwM of groat changes in tlic marlcots, a dechiratiou of war, or the eonclnsion of peace l)etwcen nations, be used for individual and private advantage of an agent of tlie press, or tliat of liis friends, to an extent not easily estimated? Wc suggest that it inay be thus used— Avhcthcr it will be or not, must depend on ilie integrity of the person to whom so much poAver is committed. Upon the general tendency to the abuse of power secretly held, and therefore inaccessible and irresponsible, and from which legislative enactments seek to guard the public, it cannot be necessary t^ enlarge. Your committee not only concur in the opinion of the for- mer committee on the' sul)ject, that the establishment of a submarine telegraphic cable connection between Cape Ann and Yarmouth, in N. S., is "highly desirable and practi- cable;" l)ut their further investigation of the subject has forced on them the conviction, that an urgent and imperative necessity exists for the accomplishment of an object, adapted to prevent an apprehended monopoly, as well as directly to promote the business interests of the community. The distance from Cape Ann to Yarmouth, N. S., by sea, is about 200 miles, and from Yarmouth to Halifax, by land telegraphic lines already in operation, aljout 248 miles, while by the circuitous route through Maine and New Brunswick (a part of which is comparatively a wilderness) the distance by the telegraphic lines is about 737 miles. Thus by the pro- posed ca1)lc route the distance will 1)0 diminished by about 28:) miles, and the delay in the transmission of "through messages" l)y the land route (arising from local business, and the necessity of frequent repetitions at the intermediate sta- tions, as also from acciucnt to the wires, which may happen at remote places) will be avoided. By the proposed subma- rine cable, only two intermediate stations between Boston and Halifax will be required, and consequently messages must pass in much shorter time and with more certainty, than by the lines at present existing. The efficiency of the submarine cable between England and France, which has \ been in operation iiboiit ten yciirs, as well as that of the ( tiblo laid down in the Black Sea, and which was in suecessful operation during the latrer part of the Crimean war, not to mention others, are sufHciont evidence of ti^: practicability of that mode of transmitting telegraphic in^ssage^ for those distances, if the cable is laid in a ^rojcr iVuuuK/ au.! whuz no peculiar local difhculties exist. It is proposeil l>y the route now under consideration to re- duce the tolls between Halifax and Boston, from one dollar and thirty-tive cents, the present rate, to one dollar for a mes- sage of ten words. This ailded to the saving of time will have a tendency to increase largely the number of inessai^ea to be transmitted. IndepL-ndendy of other considerations bearing favorably on this enterprise, the inereasiiig impor- tance of the trade of Nova Scotia, as well as that of the other British I'rovinces, to Nev/ England, would seem to warrant some effort to enlarge the facilities of comaianication, as a means of promoting their commercial interests. Should the contemplated project of Mr. Gisborne, of laying a sulnnarinc cable from the coast of Ireland to the Straits of Belle Isle, on his own peculiar principle be carried into effect, as he seems sanguiiic that it may be, the laying of a subma- rine cable from the ;;urtherly shore of Nova Scotia to Blanc Sablon, in Labrador, a distance of about 300 miles, will con- stitute a continuous telegraphic line (in connection with that now proposed between Yarmouth and Cape Ann) from Boston to Ireland, which, according to Mr. Gisborne's views, would be shorter and more secure than by any other route across the Atlantic. The fact that the Atlantic cable, as now laid, is, according to present indication, a failure, and that lud has recently been sought from the British Government for laying other subma- rine cables across the Atlantic by other routes, would seem to favor the probability that Mr. Gisborne's plan of so di- rectly connecting England with the Canadas, and her other Provinces, as also with the United States, will receive a fair examination; and if he can satisfactorily establish the waM Mm ii^ soundness i nd practicability of his peculiar theories on this subject, whi"h appear plausible, the aid of the Government and of the public may be secured, and his enterprise be ac- complished. TJio committee are informed that IMr. Gisljovne is un^hig forward his project in England and in Canada, and that he has received within a few days encouraging assurances. A proposal has been communicated to the committee from a manufacturer in Enj?land, to make and lay down a suitable cable from Cape Ann to Yarmouth, and to guaranty to keep it in working order for three months, for forty thousand pounds sterling ; and a manufacturer in the United States haK made a similar proposition, at the cost of one hundred and forty-eight thousand dollars. Tills may be regarded as sufficient evidence that Aviien an authorized and responsible committee of any company, that may hereafter be formed for tlic purpose, shall be prepared to enter into contract, they will be able to cause the work to be completed at a reasonable outlay, and perhaps by the competition of manufacturers at something less than the proposals already made. The Nova S^-otia ]:iectric Telegraph Co,, which now have al)out 1150 miles of line under their control, and a continuous line from Halifax to Yarmouth, have proposed an arrange- ment, by which they agree to form a connection with any com- pany which shall establish the Cape Ann and Yarmouth line, on terms and conditions which appear to your committee sat- isfactory, ^llthough their right to make such an agreement in regard to messages from Xcwfouiulland, which your com- mittee arc informed amount to only about one-eighth part of all the messages transmitted over the wires of the Nova Sco- tia Company, has been questioned, the Nova Scotia Company allege that it has the right, and that all previous contracts between it and all other parties, for peculiar privileges or preferential dealings, will cease and determine on or before the tirst day of May, 1851). The controversy between the Nova Scotia Electric Tele- A f graph Company nnd tlie New York, Ncwfonndlund t\n(l Lon- don Tcle^n-aph Company, as it ivspi-cts the transmission of messages from Newnmndlaiul over tlie lines of the former, involves the neces^•ity of a further and more thoron,?h ex- amination tliaii your eommittee are prepared to devote to it; but, however this question may he ultimately settled, it ap- pears to your committee, as now understood by them, that it can affect no other business of the Nova Scotia lines than that derived from Newfoundland, which latter, as before stated, bears a very small proportion to the whole numl)er of messages hitherto transmitted over the Nova Scotia lines. So far as this point is concerned, which your committee do not regard as a very important one, in the present condition of the Atlantic cable, the recommendation of this report must necessarily rest on the assumption that the Nova Scotia Company know their legal rights in this matter and are fully competent to establish them. It is hoped, however, that this controversy may be harmoniously adjusted, and that the New York, Newfoundland and London Company will find it for their interest to avail itself of the advantages of a shorter, quicker, more regular and more reliable mode of transmit- ting their messages by the proposed submarine cable, (if laid down between Yarmouth and Cape Ann,) rather than to re- sort to the expensive and appareutly suicidal policy of making a new connection by submarine cable between Newfoundland and New BrunsAvick, as it has been intimated they may do. That can only be done at a heavy outlay of capital, and un- der serious disadvantages and embarrassments. The Union Telegraph Company, whose lines extend from Portland to New York, ha\ e entered into contract ^ith Mr. Gisborne, as the representative of the Nova Scotia Company, (if the proposed submarine cable from Cape Ann to Yar- mouth be laid), to form a connection from Cape Ann through Boston to New Y'ork; and by the existing contracts between the Union Company and the Magnetic Telegraph Company, (copies of which arc in the hands of the committee) the Union Company are enabled to form such a connection as will in- ;« ^/Jf v« Furc tho transmission of mcssaA^cs that may be received over the Yanuonth and ("ape Ann rnbU; from New York to New Orleans, and intermedi-.to pl.ices, and tlins praotically trans- mit messages to every i)art of tlie I'niun wliere telegraphic communications exist. Tlie coniraet of the Union Telejirapli Company with Mr, Gisborne is for twenty-five years, and on eonditions wliich the committee regard as favorable to the interests of the pro- posed submarine ca])lc company and to the public. Witli a. view to protect tJie imblic interest, the committee would suggest that in the act of incorporation to be obtained from the ISlassaehusetts Legislature, a provision sliould be in- troduced that all messages containing public news, addressed to the agent or agents of tlie newspaper press of this country, or to any person for the puri -se of being published, and to be transmitted througli the contemplated cable from Yar- mouth to Cape Aim, shall be dellM-red to th several tele- graphic operators on said line, in intelligible English lan- guage and not in cypher, and that such messages shall be transnn'tted by said opentors in such telegraphic characters or language, as are generally understood l)y those practically familiar with the business of operating the telegraph,— and that said messages thall be made ioiown to the agent or agents of the public press Ijy the several operators, at all the various points where they arc addressed, as nearly simulta- neously as distance and peculiarity of location will permit; giving similar priority to the press as it relates to such public messages, as it is understood they now have. Tlie committee M'ould further suggest, also, that the Commonwealth shall have the appointment of a director of said proposed com- pany, (who shall receive no compensation from the company) but who shall have full power of minute supervision OAcr the administration of affairs of the company, so far as it re- lates to the public interest, and on reasonable ground of be- lief of any violation of its charter obligations (to the public) or of an abuse of -ts power, it shall l)c the duty of said director to institute sudi legal proceedings as shall enforce nny penalty whid, mul aH may provi.lo. In vunv of the p!ol)iil.ility (hilt i\mif;n news, rcucljin^' points cnst of J{(.ston, whether by steiuner or Ir/any hnaiv Atlai.tic oiil,lc timt may belaid, will pass over this lino, the importance of the pro- visions ju^'estcd will be at once estinuited. The committee do not intend to express the precise- terms which shoidd be embraced in a charter, but rather to indicate the nature of the principles to l)e therein adopted tV.r the protection of the public against the possible abuse of power by the telei;rapli comi)any. So jealous were the British Government of its i-i-hts, and those of the i)ublic, fhat in the act by which it incorporated the Athmtic Cable Compa-iy, the powers over it retained by the Government were much more comprehensive and peremptory than those which the committee have sug- gested to be exorcised by the Government of this Common- wealtii over the proposed sui)marine cable company. As to the duty pointed out by the former committee, " that previous to opening a subscription for stock the opinion of some competent lawyer be obtained, as to whether any or what legislation of tlie Government of Novr. Scotia and of Massachus'.'tts is nci'essary to confirm an agreement of the Nova Seotia Company with the proposed new company, :.nd also to secure to per.sons wlio shall subscribe, the rigljts' and powers which have beeii granted to telegraphic companies entirely within the jurisdiction of these Govennnents respect- ively," the committee would remark that they have not yet obtained such information; and theretbre recommend that the subscription should be made on the condition tliat such legislation, if any, as may be retjuired shall be obtained. Tiie statement of the Nova rfcotia Company, nuvle to the committee, of the number of messages transmitted over their lines for the year ending 30th September, ISSS, Avould seem to indicate an income which justifies the opinion that the business of the proposed Yarmouth and Cape Ann (;a])lG Company may be made remunerative, if conducted with econ- omy and sound discretion. JJut from want of knowle( Ige of t) le probable cost of repairs and of depreciation of a submariiie 9 ciiblo, t!io committoo do not feel justified in giving en un- qujilined opJi'.ion on this point. A propobul liiis been mado to take a lease of the line for a term of years by the payment of hcven per c.-nt. per aniuim on its capital stock. Thia, your committee think, should not be accepted, for f.e reason that the c«ntrol of the company over the administration of ltd business would thereby be impaired, and tluis one of itj priu' Ilia' objects be defeated. It will, however, be optioiuil with tlie future stockholders of the proposed company to ac- cept reject the proposal. As an evK'.ence of the inan-cst and confidence of the Union Tele,'?raph Co. in the proposed enterprise between Cape Ann ar ■ Yarn-outh, it has formally authorized a .subscription of twent/tive thousand dollars to be ma' to the capital stock of the company to be formed, in 'id'!, on to the prompt nnmncr in whicl.' they have entorr I : .,t^ an agreement for a mutually advantageous connection. Mr, (iisliorne, whose practical knowledge and experience on this subject may be regardeil of peculiar vaiue, also has n