A SECOND CABLE TO EUROPE.

New Zealand Times, Volume XXXII, Issue 5070, 23 June 1877, Page 1 (Supplement)

A SECOND CABLE TO EUROPE.

The minutes of the proceedings of the last Intercolonial Conference at Sydney throw a good deal of light upon tho position of affairs in connection with the proposed second cable, and a few facts in amplification of what has been previously published may not be uninteresting. The Eastern Telegraphic Extension Company, as might have been supposed, are not anxious to lay a second cable on their own responsibility, because the ref,urns from the present Hue arc not so satisfactory as might have been expected. They assert that there has been no marked growth iu the traffic since the opening of the line in 3872, the number of messages in 1873 being 11,047, and in 1874, 11,513, so that they do not hope for any large extension in the future. During tho year 1575 the income derived by the company from Australian messages amounted to £62,172, but when from this is deducted tho cost of working and of the maintenance and repair of tho cable, it will be scon that a very small return remains on the capital of £OOO,OOO which was originally invested in tile scheme. Therefore they reason that as the duplication is not necessary on account of the traffic, it is evident that if carried out it will bo entirely in the interests of tho colonies, as an insurance against interruptions to which submarine cables are from time to time liable, under which circumstances it is but right that the Governments should bear fhe expense involved. The proposal, then, is, that tho company should raise the money required for constructing the cable by a loan, the price of which they estimate would bo the same as that of a loan for constructing the Ncvr Zealand cable, and that the Australian Governments should subsidise them “ to the amount of the interest that would bo payable on the capital obtained ; and moreover, as cables are of a perishable nature, and. it is necessary to renew them from time to time, it becomes imperative, In order to secure permanency of communication, that a reserve fund should bo laid by annually, which by its accumulation would enable a new cable to bo put down after a certain period.” They offer the alternative of two routes, the one going from Port Darwin and following the line of the present cable to Banjocwangi, and the other starting from North-West Capo, iu Western Australia, and going to tho same point. In case of tho cable from Port Darwin to Singapore touching at Baujoowangi, the distance would bo 2151 miles, and its coat

£510,000 ; iu case of tho cable going from North-West Capo, also touching at Baujocwangi, the distance would be 1973 miles, costing about £500,000. The company would require a subsidy of C per cent, on these sums, according to whichever route may be adopted. Tliis amount is necessary in order to pay the interest on the capital that would have to he raised in the open market. In addition to this, the company would require a sum of 3 per cent, to be laid by as a reserve to meet any repairs that might bo necessary to the

cable, and also to provide a sum for replacing it as it may become worn out. This sum would have to bo guaranteed for a term of 22 years, in which time it is calculated that if 3 per cent, on any sum is laid by annually and invested at 4 per cent., the original capital will be reproduced. The sums therefore required would be—if the cable went from Port Darwin, £48,000 ; or if from North - West Cape, £15,000 per annum. In considering these proposals, the Conference called in tho evidence of Mr. W. G. Taylor, superintendent and electrician in charge of the New Zealand cable, residing at Sydney, who appears to have an excellent knowledge of the seas and bottoms along tho practicable cable routes, and he expressed himself very strongly that the best route for a duplicate cable would be to place it about twenty miles to the south of tho existing cable. Mr, Audley Cootc, tho representative of Siemens Bros., was next examined with reference to the proposals of that firm, and he expressed readiness to undertake a contract for a duplicate cable, to run from Queensland to Singapore, or in fact any lino tho colonies wanted; but the examination of this gentleman seemed to show that lus principal arrangements in tho East were exceedingly incomplete, and of a character not calculated to inspire anyone with confidence that the communication would be speedy or continuous. The following examination then took place:—

(By Mr, McLean) —Your principals arc connected with the cable across tho Atlantic from Australia to America ?—Yes, by tire direct United States cable, and through America by the Western Union Telegraph system.

Have they received any instructions to negotiate for a line by Honolulu ?—Yes. What is your opinion of it ?—There is nothing against it except the expense. But supposing all those islands should agree to subsidy, there would be no objection on the score of expense ?—None whatever, only tho line is considerably longer than many persons iu Australia think it is. The actual distance is somewhat about 7500 miles, and that would require a length of cable over 8000 miles ; the sections would be cut in lengths of 1000 miles between San Francisco and Honolulu aud Fiji. They would not be longer than other existing lines ?—No, there is nothing against it except commercially ; wo should get nothing from Honolulu or Fiji.

Have these questions been discussed by your company ?—Yes, I have at tho present moment the particulars of a subsidy for laying down that cable.

(By Mr. Griffith) And what subsidy do yon think would bo necessary to open the route ?—Well, it would be at least double tho present subsidy.

(By Mr. Stuart) —Arc you thinking of starting from Australia ?—Yes. Why should you start from Australia ? Well, the French Government have £BOOO ready as a subsidy for a line from Australia to New Caledonia; aud although tho outlay would not bo very great, wc should require a subsidy of £25,000 for that cable alone.

(By Mr. McLean) —Well, you should get a subsidy from Honolulu aud the other islands, and I do not see why they should not give it for this line ?—The Government of Honolulu told mo they would give no subsidy, and the Postmaster General told me the same.

But Sir Julius Vogel, who has obtained further information, states that they are very likely to give it ?—Thou there would bo no difficulty in constructing the line ; you see wc should only have to look for through messages from America,

It would be to tho advantage of your company, because it would bring a groat deal of traffic ffrom New Zealand, as well as the islands?—Yes, that is why wc are endeavoring to maho wmngomputo with tho Honolulu Government to land the first section on that island.

(By Mr. Griffith) —What would be the longest section along that route ? -From Fiji to Honolulu ; wc have tried all wc could to make these cables in 1000-mile sections, because the cost of laying a cable over 1000

miles is considerably more than for 1000 miles, aud the cable is more expensive. Have you any knowledge of tho sea through which tho cable would pass along that route ? —No ; the Secretary to the postal authorities has promised to send me the information. From what we know of it, it is an exceedingly deep sea ; aud, as far as wc could learn from tho Tuscarora, it is a good bottom, and when they got within about thirty miles of the shores of Queensland, they reported that their leads dropped into a hole from 3000 to 4000 fathoms deep. And so far as you have ascertained, there is quite as good a bottom there as along the route by Java ?—Yes, as far as wc have had experience of the doop seas, we have generally found a soft bottom.

{By Mr. McLean) —Have you any authority to lay a cable along that route ?—Oh yes, my authority is to obtain the best concessions I

can, and to make a route between hero and London whichever way you wish it to go. When you were iu treaty to make tho lino from the colonics to England in 1875, had you proper authority to carry out the agreement ? —Yes.

Because I see there is a letter from Sir Julius Vogel, stating that the arrangement fell through because you were unable to carry out your agreement ? That letter never reached us, aud there was another letter which was handed iu by special messengers to Sir Julius Vogel, which has not appeared in the correspondence. Have you that letter ? —I have. [Witness handed iu a letter.] And you have looked over this printed correspondence and see no trace of these letters ? —No trace whatever.

Do you hold full powers of attorney from your principals?—Yes, aud I have always done

(By Mr. Stuart) —l should like to know why that contract was not carried out?—lt w.as understood that the cable should bo put down in a reasonable time—in three months—and it was nearly eighteen, mouths before tho three Governments agreed to do it. The instructions wore so stringent that not a single concession could bo granted, aud one afternoon the conditions fell through, for the moment only. In the Now Zealand Act ratifying the agreement, Sir Julius Vogcliuscrtedaclausc authorising the Government of that colony to consent to a cable direct from Now Zealand, and on the following morning wo saw for tho first time iu tho newspaper that a contract had been signed for a separate cable to Australia from New Zealand with a different company. We were surprised to see this in tho morning newspaper, having left Sir Julius Vogel overnight without receiving any intimation of it, and having been prepared to lay down the New Zealand cable separately ourselves. But, as I understand it, you entered into a memorandum of agreement to construct a certain line, subject to ratification by the Parliaments of the various colonics; That ratification was given, and yet the contract with the company which you represented fell through? —Yes.

Well, I want to know why it fell through? For this reason, that at the moment the whole of the money was provided for by a large combination of capitalists ; but eighteen months aftcrwaxxls, owing to complications iu the money market iu England, that money could not bo supplied without certain concessions asked for from the represoutatatives of the different Governments, that certain things were to be granted. Their instructions wore not to grant them, and the agreement fell through.

Then do I understand that the contract which you made on behalf of your principals was what may be called a sort of sporting offer—rthat is to say, au offer to make a liuc

provided all things remained the same with regard to the money market?—No; thomoney was provided four

But there was nothing in your memorandum of agreement to limit the time to throe months ?—lt was understood that the whole thing would he ratified in three months, and that I should have to go to England by the next mail. But where several Governments had to be consulted in respect to the construction of a now lino of telegraph, it does not appear, to me at all events, reasonable to expect that everything could bo settled within three mouths ? Yes ; this Parliament was in session, and it was expected to, be done immediately ; the Queensland Parliament was in session also, and Bir J ulius Vogel left here with the understanding that it should be done at once.

Now I come to the object I have endeavored to arrive at by these preliminary questions. You now offer to put down a certain cable for an annual subsidy of £50,000, witli a limitation of Cs. a word for the tariff of messages. Is that an oiler which would bo subject to the approval of tiro various Colonial Parliaments, or is it an oiler made in the same way as the last—an offer made with reference to the present cheap rate of money in England, which you might find it impossible to carry out if money became clearer ? —No, it is not.

You see on the last occasion you stated that you had full power to blue! your principals, and yet when the different Parliaments had ratified the contract it fell through, because the gentlemen who were parties to the agreement were no longer in a position to do what they offered to do. I wish therefore to know whether this oiler is subject to the same contingency, or whether it will stand any reverse in the money market ?—Yes ; I am prepared to sign a binding contract. Was not that the case on the last occasion ? —lt was, but the contract was never signed. Was not the agreement as binding upon you as the contract?—Yes, but the agreement was that it should bo carried out quiclcly.

Well, I want to know whether this offer is made to bo carried out quickly ?—Yes, What is to bo the limit of that quickness ? —Within twelve months.

(By Mr. SLcLcan) —Then you considered that the non-fulfilment of an agreement by the different Governments within eighteen mouths was unreasonable ?—Yes.

(By Mr. Stuart) —We are to understand then that on the first occasion you considered three mouths a reasonable time, and that now you think twelve mouths reasonable ? Yes.

You ask a subsidy of £50,000 for this cable ? —Yes.

Has it occurred to you that if the combined Governments paid you this subsidy, they would virtually suppress the other company ?—They would get their share.

But they would have to work against £50,000 ?—Yes.

(By the President ) —You said the Governments refused you a slight concession on the last contract, hut you did not say what that concession was ?—I am not quite sure of the exact concession asked for ; it was merely an alteration of some of the terms of the agreement which was entered into.

Then you do not know whether it was a slight one or not—l have always been given to understand that it was a very reasonable request ; it was not a question of money at all; it was merely a question of landing cables.