EXTENSION OF THE ELECTRIC TELEGRAPH TO AUSTRALIA.

Lyttelton Times, Volume X, Issue 627, 10 November 1858, Page 4

EXTENSION OF THE ELECTRIC TELEGRAPH TO AUSTRALIA.

Our readers and all interested in Australia will be glad to learn that the longpending arrangements for the carrying out of a system of electric telegraph communication, with India have at last been broiig-ht to a point which gives every promise ojt its practical realisation at an early date. Whether we regard it as capable of being ultimately extended to Australia, or at once greatly expediting' the receipt of intelligence from Australia, it will no doubt exercise considerable influence on the facility of communication with the colonies and Great Britain. Upon this subject, however, the 'Observer' has the following semi-official statement: — We are authorised to state that an agreement has been concluded between the Treasury and the Red Sea Telegraph Company, upon the following terms, for the establishment of a telegraphic line from Alexandria to Aden, down the Red Sea, and thence to Kurrachee, following the line of coast of South Arabia. The terms are in substance—the Treasury to guarantee a rate of interest on the amount of capital paid up from time to time (not exceeding £800,000) of 4| per cent, per annum, payable half-yearly, for the term of fifty years certain. If the surplus receipts should exceed the guarantee, onethird to go to repay any advance of interest made by Government, one-third to be applied towards forming a"reserve fund (not exceeding £800,000), and the remainder to increase the dividend of the shareholders up to ten per cent, per annum. If there should be no debt for Government advances and no deficiency in the reserve fund of £800,000, the whole profits to be applied to make up a dividend at the rate of ten per cent, per annum. All sur-. plus profits beyond 10 per cent, per annum to be applied either in reduction of the tariff, or the creation of a fund to redeem the guarantee or otherwise, at the discretion o i the Government. The reserve fund and unemployed capital to be applicable to the maintenance or restoration^ of the cable, and to make good any deficiency in the receipts to cover the working expenses, should such a contingency arise ; so that the Treasury guarantee of 4| per cent, shall be the minimum rate of dividend. 5 per cent, of the whole amount of capital raised to.be paid forthwith./ In. default by the company in completing- or reinstntihg^the line, or working it efficiently, the Treasury to take possession of the line' on paying to the company the capital paid up, with interest, at 4£ per cent, per annum .from the date of the last dividend.

The directors have made v contract with Messrs. Nowall, the eminent contractors,

Ito . construct the necessary ; submarine cables on such terms as"' ,will leave a surplus capital of about £300,000 It is to be observed that the Treasury guarantee commences as the capital* is paid and is to run for CO years, certain, so that it is absolute in its nature, and 'the shareholders will have the benefit of it, whether the line fails or not in its original establishment or in its subsequent workingEven the improbable contingency of the' line not paying' its working-, expenses i s amply provided for. It is impossible to doubt that these terms will enable the company to raise the capital at once. Government have wisely debided to take upon their own shoulders the responsibility of providing; the funds'for a line.which h as become a political necessity.: It must be observed that all ships calling- at Galle in Ceylon,'or at Aden, fr Om China and Australia, will almost of necessity make -use of the line. It becomes almost alarming1 to consider that an engine of communication is about to be established which will so completely distance all. existing- means of transmitting' news and will immediately establish itself as a tyrant compelling- the commercial and political classes of our eastern possessions in India China, and Australia to have recourse to it on every occasion of any sort of importance. This long-delayed question is now at last settled, and we are to have a line of our own, independent of the control of any foreign Government and -for the efficient working- of which we shall alone be responsible. It will- follow the routo which our mails and' trade have long 1 followed, and where we can protect the, few stations not actually on our own territory from our own native element-—the sea, the passage across Egypt forming- the only exception.