THE TARIFF THROUGH THE ATLAN" TIC CABLE.

West Coast Times, Issue 334, 18 October 1866, Page 1 (Supplement)

THE TARIFF THROUGH THE ATLAN- " TIC CABLE.

"London, Sept. 1, 1865

" My Dear Sir — In the London press calculations of the profits of an Atlantic cable have appeared. These calculations are based upon the idea of charging only 5s a word. " A telegraph to be of use must be expeditious and accurate. It will-, therefore, be necessary to limit the messages to be transmitted through the cable to such an extent that the number received during the twenty -four hours shall not exceed the carrying powers of the cable during that period of time. Should the number of messages received during the twenty-four hours exceed the transmitting powers of the cable, the second day would begin with a portion of the messages left over from the first day, and in the course of a short time this daily accumulation would amount to so much that letters by mail would reach their destination sooner than messages by telegraph, as by law all messages must be sent in the order in which they were received. " There is only one legitimate way that I can see of limiting the messages that will pour in from every part of Europe, Asia, and Africa, to be transmitted to the whole of the North American continent, and vice versa, and that is to make the price such that it shall limit the messages sufficiently to keep them within the carrying power of the cable. " From au experince of over eighteen years, dating from the very commencement of the telegraph as a public institution, and from the experience gained by means of the submarine cables connecting Alexandria and Malta with Europe, I feel perfectly convinced that even a sum of 20s per word will, not limit the traffic sufficiently to keep the line between Europe and America free. '• When we consider that the submarine line between Alexandria and Malta, which forms the connecting link between but a small part of Egypt and Europe, has a very large amount of business, how is it possible that two

wires can do the business between

Europe, Asia, and Africa on the one side, and America on the other ? The

manager of the Malta and Alexandria line recommended that a sum of L 2 per word should be charged through the Atlantic cable, to limit the messages to the capacity of the line. " As soon as one line of communication is established between America and Europe, it will undoubtedly have to be

immediately followed by others, to meet the increasing demand which experience shows invariably to folloAv the opening of telegraphic communication between distant points.

" I am, sir, yours faithfully, " C. F. Varley, • " TBe Electrician of the Electric and International Telegraph Company. " C. W. Field, Esq., Palace Hotel, B uckingham-gate . ' '

The suggestion contained in the above letter has been adopted, though it is still, an open question whether the demand for communication through the cable Avill not, even at the present rate of charges, exceed Avhat it can do. '' Europe, Asia, and Africa, and the whole of the North American continent," will, as Mr Yarley Avrites, communicate through, the Atlantic coil; and a low battery power will be prudently used, both night and day. While on this part of the subject, the statistics put forth by the company after the breakage of last year Avas Avorth quoting :—

'• Estimated Revenue. — Assuming that the charge for transmission of messages between the Old aud New World be fixed at 5s per word, and that the speed of working be limited to only five words per minute during twenty - foul- hours per day, and allowing 300 working days in the year, one cable would produce a gross' annual revenue "of L 540,000, to be divided as follows : — Working expenses, say' L2s,ooo ; interest at five percent, on LI 00,000; Atlantic Telegraph Debentures, L 5.00 0; AngloAmerican , Telegraph Company, L 125,000; Atlantic Telegraph Company's Preference Shares, L 600,000, eight per cent., L 48,000 ; Atlantib Telegraph Company's Ordinary Shares, L 600,000, four per cent., L 24,00 0; balance divided — An»lo- American Telegraph Company, L 156,500; and Atlantic Telegraph Company, L 156,500. Total, L 540,000. To the L 281,000 above shown us dtoming to the AngloAmerican Telegraph Company from the revenue of the cable, the sum of L 20,000 must be added, granted as a subsidy by the New York, Newfoundland, and London Telegraph Company, which will make a total income of L 306,500, or ovei fifty per cent.- net upon the capital of the Anglo-American Telegraph Company." ' N As the price charged is LI instead of 5s per word, the above sum — always assuming the official calculation to be correct — must be multiplied by four. If the cable of 1860, over which the Anglo-American Company has the same rights as that of 1866, be raised, the amount must be multiplied by eight. In other words, the annual revenue of the company on a capital of L 600,000 will be, by its own showing, L 2,452,000. These figures are startling as an " Arabian Nights'" story.* But it must be remembered that the whole enterprise has been looked tin for years as a romantic dream."* The promoters of the Atlantic telegraphy have borue the brunt of lukewarmness, ridicule, and" opposition, and the vast rewards they seem on the eve of grasping are not half so extravagant as their project was pronoun red to be by meny sound men of business not many weeks ago.