THE PROGRESS OF OCEAN TELEGRAPHY.

Star (Christchurch), Issue 655, 29 June 1870, Page 3

THE PROGRESS OF OCEAN TELEGRAPHY.

* (From the Bailway Record.) A contemporary who, in the most real and serious meaning of the word, is great at statistics and the inferences derivable from them, reminds ua of the large number of ocean-telegraph companies which have been launched within the last few months. The successful laying of the French cable caused an effusion of projects of this class. No less than thirteen were brought forward together, all but simultaneously. Omitting tbose which have either been withdrawn or superseded, we have a list of ten which keep their ground, and the capital represented by them ia as follows : — £ 1. British Indian Submarine Telegraph — Suez to Aden and Bombay 3,200,000 2. Falmouth, Gibraltar, and Malta 660,000 3. Great Northern Telegraph — extension and purchase of lines in Northern Europe ... 400,000 4. International Mid-Channel ... 25,000 5. West India and Panama. ... 650,000 6. British Indian ExtensionCeylon, Singapore 460,000 7. China Submarine Telegraph — Singapore to Hong Kong and Shanghai— first BQCtion ... 525,000 Ditto additional capital for second section 300,000 8. British Australian 660,000 9. Great Northern Telegraph — China and Japan Extension ... 600,000 10. Panama and South Pacific ... 320,000 Here is an imposing array, both as to number and capital, of enterprises which are, as it were, the creation of a day, all of them dating since the establishment of .the French cable as a physical, not to say commercial success. The writer above referred to goes on to consider the prospects of these companies, in view of the amount of working business which has to be done and the probability of

competition. -He points out that, though telegraphic communication will be con stantly becoming more and more a necessity, expenses of construction, and other considerations place a prudential limitation upon the multiplication of cables. He says tbat "there is more than one difficulty in tht business, amongst which are the limited capacity of tbe wires, and consequent necessity, of serving large trades, of which there are few in the world, and various dangers lying in tbe very near future ; but the main difficulty is that respecting the preservation of the monopoly, which appears necessary to large business, but may be easily attacked, and is almost certain to be so." We understand the possibility of cheaper but effectual modes of laying being adopted by-and-by, and of improvements in telegraphy becoming as familiar and extensive as improvements in steam navigation have been since Fulton made his model expert ments, amidst the united sneers of the practical and scientific world. But we hope that by that time the pioneers of ocean telegraphy will have realised a good return upon their capital, and it is to be expected that as sensible men of business, carrying on operations of which a permanent monopoly is out of the question, they will, while earning large profits, make reserves in provision for that contingency. The cables now laid and to be laid will not last for ever, and before they they are worn out the existing companies will, of course, be prepared to take advantage of all new inventions combining economy with efficiency. The total capital of the new companies for India, China, Australia, and the East and South generally, is upwards of £4,000,000, and it is remarked that " this is certainly a large amount of capital on which a profit has to be earned by facilitating a certain kind of correspondence. Even a net profit of £400,000, or 10 per cent, which is less than what is expected, would be an appreciable sum for any even great trade to bear." Very true ; but the mercantile intercourse between tbe West and East is likely to increase immensely beyond its present dimensions, and that which may be a serious item now may be a trifle a few years hence. These enterprises look to futurity, and to the wants which it ia sure to develop. We make little of tbe objection tbat " the world is pretty well covered by the schemes already projected." A careful inspection of the map would, it strikes us, ahow the contrary. But let that pass. Aa to the prospects of competition, our impression is that it must come, <md that the companies, we repeat, ought to be prepared for it. In reference, however, to the present remarkable impetus to telegraphic construction enterprise, we quote a few remarks which are worthy of consideration : — " There is a danger that the construction interest wiil be enlisted in the promotion and manufacture of too many cables, unless a great change takes place, by which cheap cables can be laid so as to make an enormous increase of business possible— a change which would be detrimental to tbe present companies in| another way. A sufficient quantity of legitimate work for the construction companies which the present spurt employs is hardly to be looked for. We should therefore deprecate a longer continuance of the present run upon construction companies, and any meddling with them at all by quiet people. With the competition already probable, it is likely enough that many expectations of profit will be disappointed ; but if there is only a little more competition good profits will be impossible."