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U This item is filmed at the reduction ratio checked below/ Ce document est filmd au taux de reduction indiqud ci-dessous. 10X 14X 18X 22X 26X 30X "T y 12X 16X 20X 24X 28X 32X ails du difier jne lage The copy filmed here has been reproduced thanks to the generosity of: Library of the Public Archives of Canada The images appearing here are the best quality possible considering the condition and legibility of the original copy and in Keeping with the filming contract specif ica' ;ns. Original copies in printed paper covers are filmed beginning with the front cover and ending on the last page with a printed or illustrated impres- sion, or the back cover when appropriate. All other original copies are filmed beginning on the first page with a printed or illustrated impres- sion, and ending on the last page with a printed or illustrated impression. 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Un des symboles suivants apparaitra sur la dernidre image de cheque microfiche, selon le cas: le symbols —^ signifie "A SUIVRE", le symbols V signifie "FIN". Maps, plates, charts, etc., may be filmed at different reduction ratios. Those 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: Les cartes, planches, tableaux, etc., peuvent dtre filmds d des taux de reduction diff^rents. Lorsque le document est trop grand pour dtre reproduit en un seul clich6, il est film6 d partir de Tangle sup6rieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images ndcessaire. Les diagrammes suivants illustrent la mdthode. rata o >elure. 3 32X 1 2 3 1 2 3 4 5 6 THE PACIFIC CABLE. Letter from Mr. Sandfonl Fleming to the Miniater of Trade and Commerce, ex-President of the Colonial Conference, 1884. Ottawa, July 20th, 1894. The Honoueable Mackenzie Bowetj,. Dear Sii', — I I'eol it iny duty to point ont that it seems to me expedient for the Canadian Government, at once to invite cable raauul'acturing firms or others to state the terms upon which they would be prepared to lay the Pacific Cable, supply all required station buildings, instruments and equipment gimerally, and maintain the whole in efficient working con- dition. I beg leave to submit the following reasons, viz. : — The Conference piussed unanimously fivt; resolutions (copies appended) bearing directly on the establishment of a Pacific cable. The first states : " That immediate steps should be taken to provide telegraphic communi- cation by cable, free from foreign ("ontrol, between the Dominion of Canada and Australasia." It was considered desirable to ascertain defin- itely the cost of tne iindertaking, and it was assumed that to obtain that object a survey was necessary ; it was, therefore, resolved in the second resolution " That the Imperial Government be respectfully requested to undertake, at the earliest possible moment, and to prosecute with all pos- sible Angour, a thorough survey, the expense to be borne, in equal propor- tions, by Great Britain, Canada and the Australasian Colonies." The fifth resolution threw upon the Canadian Government the duty of giving effect to these n'solutions and "generally to take such steps as may be expedient, in order to ascertain the cost of the cable, and promote the establishment of the undertaking in accordance with the views ex- pressed in the Conference." The Conference rose on July 8th ; next day the delegates proceeded to Toronto. The party was joined by Mr. Alexander Siemens, President he Institution of Electrical Engineers, and head of the well-known firm ci ^Siemens Brothers. Mr. Siemens, lor some weeks back, had been engaged in laying the seventh cable which his firm has laid across the Atlantic, and arrived in Ottawa on the Dth, too late to give evidence at the meetings of the Conference, should he have been asked to attend. Mr. Siemens, however, placed in the hands of each delegate a paper containing his views on the Pacific cable. In this paper he points out that the character of the Pacific Ocean is already sitfficieutly known to admit of the cable being laid, without such a survey as that contemplated by the second resolution. I enclose a copy of Mr. Siemens' paper. This opinion, I'oming from such an authority, strongly impressed the delegates, and in conversations I had with them I found the general feel- ing to be, that the Canadian Government should not wait for a survey such as that proposed, but should at oiice invite cable manufacturers to BL.«te the terms upon which they would carry out the work and leave it in a complete and perfect condition. In taking this step it would be necessary to furnish a general specifi- cation of what is rec^uired, in order that all offers be made on the same basis; moreover as it is desirable to have full information on all points, the offers to be received should embrace the cost of the cable by alterna- tive routes. \A . I , 2 In travolling with th-i dologatcH duriiisr tho past ten days I have had oppovtuuiticN ol'ditscusNinfr with them thu liuaiK'ial aspect of the Pacific Cable. I likewise ol)taiiied IVoiii Mr. Siemens full explanations on all the matters alluded to in his paper. I feel warranted therefore in submitting for the consideration of the Government the following remarks : The two main points to be con- sidered are : Ist. The revenue, calculated on the business which may reascnably be expected. 2nd. The annual charges on revenue. With respect to the reveniX(>. If it will take three years to establish the cable, 1898 will be the first year of its full operation. On pages 70 and 71 of the report ou the mission to AuKtralia, will be found an estimate of the proportion of business which would fall to the share of the Pacific Cable for that year, 189H. The estimate was made a year ago and was based on the assumed telegraphic business for 1893 between Australia and Europe, whii'h has been exceeded by actual results. t July, 1hh4, in ukhi-kct to tiik rhtaiili8iikknt ok THE PACIFIC CABLE. 1. Resolveil, — That in the opinion of this Conference immediate steps should bo tuiccn to provide telcj^rraphic; communication by cable, free from foreign control, between the Dominion of Canada and Australasia. 2. Resolved, — That the Imperial Government be respectfully requested to undertake at the earliest possible moment, and to i)rosecute with all possible speed, a thorough survey of the proposed cable route between Canada and Australia ; the expense to be borne in equal proportions by Great Britain, Canada and the Australasian Colonies. 8. Resolved, — That it is for the interest of the Empire that, in case of the construction of a cable between Canada and Australasia, such cable should be extended from Australasia to the Cape of Good Hope, and for that purpose arrangements should be made between the Imperial and South African Government for a survey of the latter route. 4. Resolved, — That in view of the desirability of having a choice of routes for a cable connection between Canada and Australasia, the Home Government be requested to take immediate steps to secure neutral landing ground on some one of the Hawaiian Islands, in order that the cable may remain permanently under British control. 6. Resolved, — That th< nadian Government be requested, after the rising of the Conference, > riake all accessary inquiries and generally to take such stepn as may be expedient in order to ascertain the cost of the proposed Pacific Cable, and promote the establishment of the under^^Jcing in accordance with the views expressed in this Conference. / *>• REMARKS ON THE PACIFIC CAHLE, HY MR. ALEXANDER SIEMENS REFERRED TO IN MR. SANDFORD FLEMING'S LETTER JULY 20tii, 1894. {Extract.) With regard to the technical difficulties raised in 1887, it may not be out of place to consider that tluf necessity for a close survey of a cable route arises jirinci- pally from the rc(juirenieiits of the engineer laying the cable, who has to know at every moment the ex.ict depth of water into which the cable passes. The brake |iower with which the cable is held back and by which the percent- age of slack is regulated, has to be adjusted .according to the depth of water in order to ensure an even distribution of the slack ahjug the whole route of the cable. Such a distribution prevents ai'cideiits, economi/.es cable and facilitates repairs, hence the usiuil ]iractice is to lay cables only on routes where very freijuent soundings have been taken ; and in 1HH7 the e.\])erts consulted by the Imperial Government were not satisfied that the Paeitic Ocean was sufficiently well ex])lored for this jturpose. During the last seven years the work of survey has steadily progressed, and at present it may be asserted that the route projiosed at the Wellington Conference passes nowhere through water more than 3,50(1 fms. deep. On the Admiralty chart, No. 780, corrected to November, 1892, the route from North (^ape (N.Z.) to Suva (Fiji Islands) shows '2, .504 fms. as the greatest depth. Between Suva and Samoa no very great depth is met with, and from Suva, or A|)ia, to the Pluenix Islands, the greatest depth is 3,:!12 fms. The same chart shows ;!,0l>0 fms. as a niaxinnim on part of the route from the Plnenix Islands to Honolulu ; this route is continued on Admiralty chart No. 782, corrected to June, 1H90, where a depth of 3,448 fms. is shown. A continuation of the soundings can be .seen on the same chart, or better on Ad- miralty chart No. 747, which is corrected to March, 18'J4, and gives 3,252 fms. as the greatest depth bet ween llouolulc aiul San Francisco. Tliese routes do not coincide exactly with the Wellington route, but they, together with a number of other sound- ings shown on the<'harts, bearout the gener.al features of the bed of the Pacific Ocean shown by Mr. John James Wild, member of the civilian scientific staff of II. M.S. "Challenger," in his essay on the depth, temperature, and currents of the ocean, entitled '• Thalassa.'' This work appearcil in London (Marcus Ward & Co.) in 1877. If the adjustment of the brake-power depeinled entirely on the knowledge ac- quired \>y soundings taken jireviously on the selected route of the cable, grave doubts might still exist whether the laying of the Pacific cable could be proceeded with without further information being obtained by carefully taking soundings over the exact route. Fortunately means have been devised to indicate to the brakesman con- tinuously ;lie percentage of slack with which the cable is payed out, and thus it is possible to lay a cable over a route of which only the general features are known. This contrivance has been used with perfect success in the laying of six Atlantic cables, so that there is no doubt as to its performance realizing its theoretical ad- vantages. The depth of water met.. with in the Atlantic reaches 3,0u0 fms. in several jdaces where the cables have been laid, so that there is no doubt about the possibility of laying cable in 3,500 fms., or even more. To be sure it will be necessary to select a type of cables which combines great strength with light weight, but there is no dilficulty in this either, as it has been possible to construct cables for the Atlantic which will carry 7,000 fms. of their own length before they break. It m.iy, therefore, be taken for granted that any technical obstacles which were ajiiirehended in 18.S7 have now been overcome, and that the cable can be laid as soon as the financial ipiestion has been settled. In order to ascertain clearly what the probable financial position of the cable would be, a complete scheme has been worked out for a route consisting of the sec- tions : — \. Ahaipara Bay (N.Z. ) to Suva (Fiji Islands). 2. Suva (Fiji) to Canton, or Mary (Phusnix Islands). 3. Canton (Phcenix) to Necker Island. 4. Necker Island to Vancouver, B.C., of which the details are appended. As capita!, ihc sum of £2,000,000 has been assumed to cover the cost of the cable, of two repairing steamers, of about 1,800 tons each, of building instruments, and to furnish a working capital of about £50,000. '•v*,' I I 1 The working expenses are divided into : — a. General managemont £ 5,000 b. Staff and offico cxjiouHes at stationH 24,000 c. Repair and maintenance of cables yo,000 Total annual outlay £119,000 a. The first item explains itself. b. Of the Hcoond item, the details will be found in the appendix. e. The eost of the repair and of the maintenance of the cable is the most difficnlt to estimate, and the expenditure is naturally divided into a fixed and a variable part. The fixed expenses consist, first, in miiintaininc; the two steamers in efficient working order ; this is amply covered by the allowance of t'lOO ])er month per steamer, and secondly, in the wages of crew, victualling and other running expenses, these are certain not to exceed £20 per day jicr steamer. It is not likely that each steamer will have to go to sea, on the average, more than two months every y'lT-, or that more than 2,000 miles of cable will be used up during that time. "" Still these maximum figures are used in lie estimate and bring up the total annual cost of the actual repairs and of the luaintenance of the steamers to £90,000 or to over £12 jut naut. mile of cable laid. That this is a safe estimate may be gathered from the fact that it is usual to calculate £ti per naut. mile to cover this expenditure, and that one at least of the Atlantic companies is able to Keep its 6,000 miles of cable in efficient working order for £4 per nam. mile. The most important factor in determining the cost of repairs is without doubt the (piality of the cable laid, and no greater mistake can be committed than to cut down capital expenditure in an undertaking of the iiniiortance and of the magnitude as the Pacific cable undoubtedly is. It should also be noticed that Sir John Pender in his letter to the Marquis of Ripon estimates the repairing exjjenses at £1.5,000 or at the low figure of £4 15s. per nautical mile per annum. This figure he may, however, have taken from previous estimates of expenditure published by the advocates of the scheme as they give the same figures. The real uncertainty of the financial prospects of the Pacific cable is, however, encountered when the probable income is estimated. In respect to this point. Sir John Pender's ojiinion is manifestly unfair as he allows not more than one-half of the existing traffic to ])ass over the new cables at extravagantly low rates; although it is (.juite likely that this would be all the traffic obtainable during the first year. Mr. Sandford Fleming, the indefatigable promoter of the Pacific cable, appears to have taken the fairest view of the (juestion, when he estimates that the expenses will exceed the earnings during the first few years, but that a cheap tariff and expedi- tious working will soon attract the public and convert the cable into a profitable investment. From Sir John Pender's letter it appears that the Australian traffic of the ex- isting company is worth £20i),028 net for l,:!00,71t) words, or 3s. 24d. per word. If the Pacific cable earned half this amount during the first year, it would pay, in all probability, the working expenses of that year with an ample margin, as it is not likely that any heavy rejiairs would become necessary during that time. There are, however, too many factors left uncertain when the i)robable traffic of the Pacific cable is compared with the existing traffic over another route and under totally different circumstances. Sir John Pender has, for instance, quite ignored that at present tlie intercourse between America and Austral.asia does not give rise to frequent telegrams, but when the interests served by the cables are taken into careful consideration, .and the great possibilities of commerce between America and Australasia are appreciated at their proper value, small doubt can exist about the Pacific cable earning as much money per naut. mile of its lengths as the aver.age of the existing sidimarine cables. As long ago as the 2nd Ajiril, IShV, the "Pall Mall Gazette" published an article on submarine cables by Mr. Ilenniker lleaton, from which the following in- teresting figures are taken ; — At that time 26 submarine cable companies were in existence, possessing 100,000 naut. miles of cable, laid with an expenditure of £35,000.000 capital. These cables earned (including subsidies) £3,17.3,692 per annum, enabling the companies to pay from 1 to 14| per cent dividemls. In addition the reserve and sinking fund of all the companies amounted to £3,400,000. From Mr. Ileaton's figures it follows that the capital outlay per nautical mile of submarine cable is, on the average, £350 and the annual revenue is £31 ISs. per naut. mile. According to Mr. lleaton, the capital outlay of the Eastern Telegraph Company was £299 per naut. mile, and their income, at that time, £35 per naut. mile per annum , iv iv The EftHtern Extension Com])any had to lay out £265 per naut. milo, and was earninj; C:i!t lOs. jjor naut. milo per annum. If the caiiital oullijy for tlio Pucitic i-able be taken to be £2,000,000 and its length from Aliaipara Hay (N.Z.) to Vancouver (B.C!.) as 7,340 naut. miles, the cost per naut. mile will be about .t'27.'i. On the other hand, earning £-30 per mile, the ann'ial income from the cable would amount to just over i.'220,000. This figure will naturally not be reached during the first two or three years, but it is even under the average of the earnings of all submarine cables seven years, and since that time telcgra))hic correspondence has continued to increase rapidly. One of the Atlantic companies, for instance, earned on the average during the last three years more than £50 per mile. If the share of the Pacific cable is 2s. per word, it only wants 2,200,000 words per annum to realize this income, and the cable communication, whiohcan be estab- lished for £2,000,000, would be capable of transmitting 15 words per minute on the Recorder. This corresponds to over 7,000,000 words per annum, but the speed of sending messages through the cable can practically be doubled by introducing duplex working when the traffic re(piircs it. It is, therefore, not extravagant to assume that in regular working there will be a surplus of £101,000 per annum. This would bo utilized for I'aying 3 ])er cent on the capital outlay and placing the rest to the credit of a sinking fund. As the cost of repairs includes replacing on the average 200 miles of cable per year, the whole of the cable will be renewed in about 37 years. If the cable is manufactured with the best materials and with proper care, it may be assumeairB an