TELEGRAPH CABLE NEGOTIATIONS, (PAPERS RELATING TO).

Appendix to the Journals of the House of Representatives, 1876 Session I, F-04

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1876. NEW ZEALAND.

TELEGRAPH CABLE NEGOTIATIONS, (PAPERS RELATING TO).

Presented to both Houses of the General Assembly by Command of Mis Excellency.

The Hon. Sir J. Vogel to the Hon. D. Pollen. General Government Offices, Wellington, Sir,— March, 1876. I have the honor to forward to you some papers and correspondence connected with my recent Telegraph Cable negotiations. So much has been recorded upon the subject, that it will be interesting to complete the record. 2. As, however, the papers now forwarded do not fully indicate the course of the negotiations, which were largely carried on at personal interviews, it will be well for me to give a brief general explanation on the subject. 3. On my arrival in England, Sir Daniel Cooper, Mr. Daintree, and I resumed the negotiations which had been commenced in Sydney, and which had been made the subject of " The Telegraph Cables Subsidy Agreement Ratification Act, 1873." We were for some considerable time in constant communication with Messrs. Siemens Brothers, with whose representative in Sydney the preliminary arrangement had been negotiated; but it finally appeared that those gentlemen were not prepared to carry out the agreement as it stood, and they asked terms which, whether or not we approved of them, were beyond our powers. 4. It may be interesting to observe that, during these negotiations, we arrived at the conclusion that a route which included a land line up the Malay Peninsula would be open to much objection. 5. Immediately after we had terminated the negotiations with Messrs. Siemens Brothers, I commenced to negotiate, in virtue of the powers given to me by the Governor's warrant, under the 9th section of the Act already mentioned, for a line between Australia and New Zealand. I invited Sir Daniel Cooper, as representing New South Wales, to obtain from his Government their consent to pay one-third of the cost. I was of opinion—from the negotiations some years before, between the Hon. Mr. Robinson (for New South Wales), the Hon. Mr. Lillie (for Queensland), and myself —that New South Wales would not object to paying such a proportion of the cost. Whilst Sir Daniel Cooper was communicating with his Government, I continued the negotiations on behalf of New Zealand. 6. I was at first inclined to incorporate with the project for connecting Australia and New Zealand the laying of a cable from the north part of the Province of Auckland to Norfolk Island, and thence to New Caledonia and to Fiji. I had reason to think that the Imperial Government, the French Government, and the Government of Fiji, might be induced to give assistance to such a plan. I found, however, that it would still involve a considerable additional cost to New Zealand, and that it would be a more economical plan to confine my attention to arranging for a cable to connect New Zealand with Australia. I—F. 4.

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7. Very lengthy negotiations resulted in an understanding with the Eastern Extension Australasia and China Telegraph Company (Limited). That Company at first proposed to me to lay a cable without requiring any subsidy; but the agreement they suggested would have been tantamount to a monopoly, and would have left to the Government very little control, the Company being at liberty to impose such rates as they thought fit. Indeed, I believe the intention of the Company was to have charged £1 for ten words, instead of 7s. 6d., as under the agreement subsequently made, the terms of which have been embodied in the contract. 8. While the agreement was being arranged, Sir Daniel Cooper had not received full authority from his Government. It proved afterwards that the delay had resulted from some negotiations still continuing with the original negotiator in Sydney, and also from the impression prevailing that the £7,500 a year for ten years, of which they were asked to pay one-third, was stated in error, and was in reality £17,500. At length, the New South Wales Government became fully aware of the facts, and lost no time in authorizing Sir Daniel Cooper to act. The contract was then completed. 9. Had New South Wales not consented to pay one-third of the £7,500 a year, it was my intention to have arranged for laying the cable from the boundary between New South Wales and Victoria. It is right, however, to observe that, not only in the present case, so soon as the facts were understood, but throughout the previous negotiations, extending over several years, in which I have been concerned, New South Wales has sjiown the utmost disposition to meet the views of New Zealand. In the contract now made, there is a clause providing that the rate from New South Wales to England shall not exceed the rate from Victoria to England. 10. I cannot too strongly express my acknowledgments for the able and cordial co-operation which I throughout received from Sir D. Cooper, and for the readiness he displayed to do all he could to help on the work. Mr. Daintree, as representing Queensland, ceased to be connected with the matter after the negotiations with Messrs. Siemens Brothers had fallen^through; but up to that time he worked most cordially, and to him, also, my acknowledgments are due. 11. In conclusion, I may ask attention to the various conditions of the contract ; and I may point out that although I was authorized to bind the colony to the payment of £20,000 a year for thirty-five years, by way of a guarantee upon profits, I found it necessary not to do more than bind the colony to pay £5,000 a year for ten years. I had;'to depart from the exact form laid down by the Act; but the grounds for this were so obviously to the advantage of the colony, that I did not hesitate to accept the responsibility. I have, &c, JULIUS VOGEL. uo.Bl. Hon. D. Pollen, Colonial Secretary.

P.—6b., 1873

EV—6., 1875, p. 6.

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I.—Sir J. Cnrmichael and Mr F. Gisborne.

I.—COEEESPONDENCE WITH SIE JAMES CAEMICHAEL AND ME. F. GISBOENE. No. 1. Mr. Gisbobne to the Hon. J. Vogel. Sib— 7, Bruton Street, W., 11th February, 1875. I have the honor to enclose for your information copy of a letter dated the 2nd instant, received by myself from Lord Salisbury, in answer to an application for a guarantee of interest on the cost of a cable to be laid from Calcutta to Singapore, via the Andaman Islands, as part of the proposed submarine line from Singapore to Queensland and New Zealand. I have, &c, The Hon. J. Vogel, C.M.G., Colonial Treasurer. F. Gisbobne.

Enclosure in No. 1. Sib,— India Office, 2nd February, 1875. I am directed by the Secretary of State for India in Council to acknowledge receipt of your letter of the 30th December last, proposing to connect the Andaman Islands with Calcutta on the one side and Singapore on the other, and likewise with Eangoon or Moulmein, and applying for a guarantee of interest at 5 per cent, for thirty-five years on the outlay required for the purpose, and estimated at £720,000. In reply, I am to state that the object contemplated will not, in the Secretary of State's opinion, justify him in sanctioning the proposed guarantee. I am, &c, F. Gisborne, Esq. Louis Mallet.

No. 2. Mr. E. Fox to Mr. Gisbobne. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sib,— 12th February, 1875. I have been directed by Mr. Vogel to acknowledge his receipt of your letter of February 11th, enclosing copy of one from the India Office, dated February 2nd ; and to thank you for the same. I have, &c., F. Gisborne, Esq. E. Fox.

No. 3. Sir J. Caemichael and Mr. Gisboene to the Hon. J. Vogel. Sib, — 58, Threadneedle Street, London, E.C., 27th February, 1875. We beg to undertake to raise the required capital, and to lay and work a telegraph cable between Cape Farewell (New Zealand) and Sydney, on the basis laid down in the 9th section of " The Telegraph Cables Subsidy Agreement Ratification Act, 1873:" the cable to be laid within eighteen months of the agreement to that effect being entered into. The form of cable now generally used, and which has been estimated for by our engineers, will require a capital of £400,000, including the cost of a repairing steamship, and the other items entering into a company's capital: the stations, however, at Cape Farewell and Sydney, to be provided by the two interested Governments. Should you be advised to adopt a cheaper form of cable, as can be recommended by some of the highest scientific authorities, the capital and the charges upon the revenues of New Zealand will be correspondingly reduced. The Company will practically possess the power of determining the route to be followed by its messages between Sydney and India; and this power we are willing that the New Zealand Government shall exercise. We have, &c, J. Carmichael. The Hon. J. Vogel, C.M.G., Colonial Treasurer. F. Gisboene.

No. 4. The Hon. J. Yogel to Sir J. Cabmichael and Mr. Gisbobne. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Gentlemen, —■ Ist March, 1875. I have the honor to acknowledge the receipt of your letter of the 27th February, in which you state that you are prepared to " undertake to raise the required capital, and to lay and work a

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I.—Sir J. Carmichael and Mr, E\ Gisborne.

telegraph cable between Cape Farewell (New Zealand) and Sydney," on the basis of the 9th section of " The Telegraph Cables Subsidy Agreement Eatification Act, 1873." In reply, I have to state that other negotiations, in which I am engaged, preclude my considering, at the present time, any proposals under the 9th section of the Act mentioned by you. I have, &c, Sir James Carmichael. Julius Vogel. F. Gisborne, Esq.

No. 5. Sir J. Caemichael and Mr. Gisboene to the Hon. J. Vogel. Sic, — 58, Threadneedle Street, London, E.C., 15th March, 1875. Eeferring to our letter to you of the 27th ultimo, we beg to state that, after making every inquiry with reference to the best form of light cable for the deep-water portion of the submarine telegraph line between Cape Farewell and Sydney, we are now prepared to submit, for your approval, a specification and sample of cable that will reduce the amount of capital required to £300,000. "We have, &c, J. Cakmicjiael. The Hon, J. Vogel, C.M.G., Colonial Treasurer. F. Gisboene.

No. 6. Mr. E. Fox to Sir J. Caemichael and Mr. Gisboene. 7, "Westminster Chambers, Victoria Street, "Westminster, S.W., Gentlemen, — 20th March, 1875. I have been directed by Mr. Vogel to acknowledge his receipt of your letter of March 15, respecting a specification foT a telegraph cable between New Zealand and New South Wales. Sir J. Carmichael. I have, &c, F. Gisborne, Esq. E. Fox.

No. 7. Mr. Gisboene to the Hon. J. Vogel. Sib,— 7, Bruton Street, W., 11th March, 1875. I have the honor to state for your information that, since I communicated to you the answer which Lord Salisbury sent on the 2nd of February last to the proposition which Sir James Carmichael and myself had made, to lay a cable between Calcutta and Singapore, via the Andaman Islands, under a guarantee from the Government of India, we have renewed our application, proposing, however, a shorter and cheaper route. lam informed that this second application was very fully considered in all its bearings; and I now beg to enclose, in copy, Lord Salisbury's answer to it, dated the 9th instant, by which he affirms his former answer, and declines to guarantee the line. The reason assigned in both cases is, as you will observe, that " the object contemplated will not, in the Secretary of State's opinion, justify him in sanctioning the proposed guarantee." As regards the proposed overland telegraph from Singapore to Moulmein, I will only state that in our opinion it would not, even if constructed, be sufficiently reliable for international communication ; and I am not aware that the Indian Government contemplate extending their system beyond Moulmein, so as to meet the proposed line from Singapore. A sea line between Calcutta, Singapore, and Queensland, along the shortest route, could not be laid under £1,700,000, and to raise so large a sum in the present state of the market for submarine telegraph securities, in order to establish a competing line, would be no easy matter, even supposing the whole were guaranteed by the interested Governments ; but, as you are no doubt aware, the guarantee proposed by the three eastern colonies is wholly inadequate on several fundamental points. Under these circumstances, I would submit that you have no option but to resort to the powers you hold to contract separately for the New Zealand and New South "Wales telegraph. Any one of the above reasons would alone suffice to prove that the case contemplated by the New Zealand Legislature has arisen. I have, &c, The Hon. J. Vogel, C.M.G., Colonial Treasurer. P. Gisboene.

Enclosure in No. 7. Mr. G-. Hamilton to Mr. Gisbobne. Sib,— India Office, 9th March, 1875. I have laid before the Marquis of Salisbury your further letter of the Ist instant, on the subject of the establishment of telegraphic communication between Calcutta and Singapore by way of the Andamans ; and in reply, I am instructed to state that his Lordship sees no reason to alter the opinion expressed in Sir Louis Mallet's letter of the 2nd ultimo, with reference to the proposed guarantee. I have, &c, F. Gisborne, Esq. Geoege Hamilton.

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No. 8. The Hon. J. Vogel to Mr. Gisbobne. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sib,— 12th March, 1875. I have the honor to acknowledge, and to thank you for, your letter of 11th March (with its enclosure), giving further particulars respecting a proposal to lay a telegraph cable between Calcutta and Singapore, via the Andaman Islands. I have, &c, I\ Gisborne, Esq., &c, &c. Julius Vogel.

I.—Sir J. Carmichael and Mr, F. Gisborne.

No. 9. Sir J. Cabmichael and Mr. Gisboene to the Hon. J. Vogel. Sib,— 58, Threadneedle Street, London, E.C., 16th April, 1875. We understand that, among the proposals which you have received, for connecting New Zealand with New South Wales by telegraph, is one from the Eastern Extension Telegraph Company, who offer to carry out the line and to work it as part of their system to India, without any guarantee of interest or other pecuniary consideration, and in return only for a practical monopoly. We would submit to you a few considerations tending to show that, if their proposition be accepted, the saving to the people of New Zealand will be only apparent and not real, and that serious inconveniences will follow. As the Eastern Extension Telegraph Company accept no pecuniary obligation, they will submit to no control or interference on the part of your Government. We may observe that it was to avoid the evil results arising from such a state of things, that the eastern colonies combined and offered a guarantee for the establishment of a competing line between Queensland, Singapore, and India. That combination has temporarily failed, from causes to which we need not now allude. Should you accept the proposal in question, there will remain no hope of controlling the tariff for messages between New Zealand and the Australian colonies, which, as you are aware, will form a very large part of the traffic. The policy in respect of controlling tariffs, to which New Zealand has been hitherto a party, will be absolutely abandoned, and, as regards its communications with Australia, New Zealand will be placed in the same position from which Queensland and New South Wales have just made a strenuous effort to escape, and will, moreover, be completely bound to the Company and its telegraph system to India. Further, it is important to point out to you that, although you may, by the proposed arrangement, be enabled to save your Government at once the whole of the annual guarantee which it is prepared to grant, yet, from our experience as to the growth of telegraphic business, we have no hesitation in saying that at the expiration of a year or two the line will be quite self-supporting, and that your Government will then be relieved likewise of any annual payment, and secure to itself the control of a line, and thereby all the advantages of a competing system. Indeed, it is obvious from the very proposal of the Eastern Extension Telegraph Company, that the Board of that Company must be of opinion that the line will be self-supporting, or they could not entertain the idea of raising additional capital at the expense of their present revenue, which is only sufficient to pay a moderate dividend of about 6 per cent, to the proprietors, and when their shares are at a large discount in the market. The above observations will, we trust, show you the importance of placing your line in the hands of an independent company under financial obligations to your Government. In no other way will you ensure low tariffs, or obtain any control over matters almost equally important, such as the packing of messages, the determination of the route to be followed by your telegrams beyond Sydney, and in other details. By retaining a control over the Company, New Zealand will, moreover, be able to encourage the proposed competing line to India by promising its messages, or some portion of them, to it, or to any other competing line which may hereafter be constructed. We have, &c, J. Caemichael. The Hon. Julius Vogel, C.M.G., Colonial Treasurer. F. Gisboene.

No. 10. Mr. E. Fox to Sir J. Carmichael and Mr. Gibbobne. 7, Westminster Chambers, Victoria Street, "Westminster, S.W., Gentlemen, — 19th April, 1875. Mr. Vogel has directed me to acknowledge his receipt of your letter of April 16th, respecting telegraph cable arrangements ; and to thank you for the information it contains. Sir J. Carmichael. I have, &c, F. Gisborne, Esq. E. Foi.

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lI—COEEESPONDENCE EESPECTING CABLES FEOM NEW ZEALAND TO NEW SOUTH WALES, AND FEOM NOEMANTON TO SINGAPOEE. No. 1. Messrs. Siemens to the Hon. J. Vogel, Mr. Dainteee, and Sir Daniel Coopee, Bart., Agents for the New Zealand, Queensland, and New South Wales Governments. 12, Queen Anne's Gate (formerly known as 8, Park Street), Gentlemen, — London, S.W., 13th February, 1875. Eeferring to our interview on the 9th instant, when you submitted to us the question of guarantee for the raising of the capital required for a telegraph cable from Singapore to jSormanton, and from Australia to New Zealand, we beg leave to inform you that, as our interests in the matter of these Australasian cable lines are intimately bound up with those of the Indo-European Telegraph Company (Limited), we have put ourselves in communication with the latter Company, with a view to act, in so important a subject, in agreement with their opinion. Under these circumstances, we regret that we shall be unable to meet you again as early as the 16th instant, on a further discussion of the question proposed by you, but we will take the liberty of addressing you again on the subject at an early date. We have, &c, J. Vogel, Esq., ") Care of Siemens Brothers. E. Daintree, Esq., > J. Vogel, Esq., Sir Daniel Cooper, ) 49, George Street, Baker Street, Portman Square.

ll.—As to the proposed two Cables.

No. 2. Messrs. Siemens to the Agents. 12, Queen Anne's Gate (formerly known as 8, Park Street), Sib,— London, S.W., 25th February, 1875. We beg to confirm our letter of the 13th instant. Our Mr. Carl Siemens has not yet returned from the Continent, although we supposed he would be back before this, as mentioned to Mr. Fox. We therefore write to inform you, that we have obtained from the Board of Directors of the Indo-Europeau Telegraph Company some valuable concessions, having for their object to assist us in our endeavours to raise the necessary capital for the establishment of the intended telegraph line. Nevertheless, it appears to us that the conditions offered by the Governments of New Zealand, New South Wales, and Queensland, and contained in the resolutions passed by their respective Legislative Assemblies, and ratified in June, 1874 (as far as we are informed), do not oiler enough encouragement to capitalists to subscribe funds towards the undertaking; and even the further assistance which the Indo-European Telegraph Company has kindly consented to place at our disposal, although imposing considerable sacrifice upon themselves, cannot do much to improve the financial prospects of the Company materially. We are fully satisfied that our position, and the means at our command, as to the raising of the required capital, are most favourable. From inquiries and negotiations we have had with some of our friends of the highest influence and position in financial matters, we cannot, however, but come to the conclusion that it would be not only very difficult, but probably impossible, now, and for some time to come, and as long as the shares of most submarine telegraph lines remain at so great a discount as they are at present, to raise the necessary funds ; and we would therefore respectfully submit a reconsideration of these terms, with a view to afford the investing public a more favourable guarantee than the present conditions. We consider it our duty to recommend most strongly a reconsideration of these conditions, and we fully believe that the granting of more favourable conditions will not only considerably contribute to the object of the Governments named —namely, the establishment of a second Australian telegraph line —-but also greatly accelerate its attainment. We should be most happy, in the event of such reconsideration, to submit our views on the subjects to the Colonial Governments. We are, however, fully prepared, should, for the moment, the obtainment of such modifications be impossible, to use our best endeavours for the establishment of the Company, and the raising of the capital at the terms given. For that purpose, however, we should feel obliged if you would give us some information on the following points, viz.:— Paragraph lof the resolutions is the following :—" The three colonies shall jointly enter into an arrangement for the construction of an electric cable to be laid between some point in New Zealand and some point in New South Wales : and also a cable to be laid from Normanton, in Queensland, to Singapore : the latter to be a through cable, touching only at such points as may be agreed on, and to be entirely distinct the whole distance from the line between Port Darwin and Singapore." Ist Point. Will the new Company be at liberty to select in New Zealand, as well as in New South Wales, any point they themselves will consider most convenient and safe for the landing and the durability of the cable intended to be laid ; and will the Governments of New Zealand and New South Wales undertake to connect their system of over-ground lines, in those countries, with the^points or stations where the cable is respectively landed ?

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This information is needed to enable us to fix the construction and length of the various types which constitute the cable, which must be selected according to the nature of the route, and of the ground over which the cable is intended to pass, so that we may be in a position to arrive at figures respecting the cost of the line, and enabled to approach financial men with definite estimates. 2nd Point. Will the Governments of the three colonies leave the new Company at liberty to touch and establish stations, as far as the cable from Normanton to Singapore is concerned, at such points of the intervening islands as the Company may decide on, as long as the Company fulfils the condition that the new line be entirely distinct the whole distance from the cable between Port Darwin and Singapore ?—which clause we understand to mean, that the line between Singapore and Normanton is to be established in such a manner that messages transmitted by it from Singapore to Normanton are not, as a rule, to be passed through any section of the line laid down between Port Darwin and Singapore. This information is required by us for the same reasons stated respecting the first point, viz., to enable us to fix the locality and construction of the cable, so as to arrive at definite figures as to cost. 3rd Point. Will the Colonial Governments leave the Company at liberty to decide themselves as to the choice and construction of the cable?—as it would be no use to approach financial men on the subject without having absolutely settled questions of this nature, which so materially will affect the capital of the Company. Paragraph 3 of the resolution contains the following concluding sentence: —" But if the profits ax-e more than 10 per cent., the Government may require that the rates shall be lowered to amounts calculated to reduce the profits to 10 per cent. ; " and paragraph 7 reads as follows: — " Queensland to undertake to keep the land line to Normanton open for the use of the other contributing colonies, at rates not to exceed, at any time, 7s. for twenty words." 4th Point. As, according to the above-quoted paragraphs, the Governments reserve to themselves the right to reduce the rates for the messages along the submarine lines, if the income of the new Company exceeds 10 per cent., will, in ease of such reduction of rates, the rate established for the land line connecting Normanton, and which the Queensland Government undertakes to keep in order, be reduced in the same ratio ? AYe take it for granted that the maximum tariff of 7s. for twenty words, over that land line, includes transmission to any telegraph station in Queensland, New South Wales, or New Zealand, as far as transmission through land wires in any or all of the said colonies is concerned, so that the tariff for a twenty-words message from Singapore to any telegraph station in Queensland or New South Wales would not exceed £2 75., and from Singapore to any telegraph station in New Zealand £3 2s. sth Point. Should the three Colonial Governments require from the new Company a guarantee for the carrying out of the said line, what would be the terms and conditions under which they will demand such guarantee ? We request you to be so kind as to communicate the contents of this letter to the representatives of Queensland and New South Wales. We have, &c, {pro Siemens Brothers,) J. Vogel, Esq. L. Lceitlee. E. Daintree, Esq. Sir Daniel Cooper.

ll.—As to the proposed two Cables. ;

No. 3. The Agents to Messrs. Siemens. Gentlemen, — London, 3rd March, 1875. We have the honor to acknowledge the receipt of your letter of the 25th February. 2. We are glad to learn that you have obtained " from the Board of Directors of the Indo-European Telegraph Company some valuable concessions, having for their object to assist" you in your " endeavours to raise the necessary capital for the establishment of the intended telegraph line." 3. In reply to your expression of opinion that the terms proposed do not offer sufficient inducement to capitalists to subscribe towards the undertaking, we have to remind you that those terms are in conformity with the Provisional Agreement made with your representative in New South Wales ; and we have not the power, even if we had the inclination, to extend the terms. 4. Eespecting the information for which you ask, we have to reply—First: That the points at which the cable would have to be landed in New South. Wales and New Zealand would have to bo approved of by the Governments of those colonies, and that the Governments will undertake to connect their ay stems of over-ground lines with the cable at the points so approved of. The inclination of the two Governments, we may say, is to fix the points of connection at some place near Sydney and some place in the South Island of New Zealand.—Second: The Governments have already informed your representative in New South Wales that they would require that the proposed line should not touch at Java, aud that they are willing it should touch at the south end of Celebes, near Macassar.—Third: The Governments, in accordance with the terms of the letter addressed by your representative in Sydney to Mr. Vogel, dated March 3rd, 1873, will stipulate for the right of approving the cables to be employed. They will require the cables of serviceable strength, approved by engineers of eminence, appointed by the Governments. Under the proposed agreement, the contractors will be as much interested as the Governments in maintaining the lines.—Fourth : We will, if the necessity arises, telegraph to the Government of Queensland on point 4, referred to in your letter. We can only now say, we believe that that Government would agree to reduce the rate for messages along the land line from Normanton, in proportion to any reduction made in the charge for messages to or from Singapore. You write, you " take it for granted that the maximum tariff of 7s. for 20 words over that land line includes transmission to any telegraph station in Queensland, New South Wales, or New Zealand,

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ll.—As to the proposed two Cables.

as far as transmission through land wires in any or all of the said colonies is concerned, so that the tariff for a 20-words message from Singapore to any telegraph station in Queensland or New South Wales would not exceed £2 75., and from Singapore to any station in New Zealand £3 25." In reply, we have to say that we do not understand that it was intended, by anything contained in the Provisional Agreement, to pledge the Government of New South Wales to pass messages along their lines without making the usual charges ; nor that it was intended that the Government of New Zealand should refrain from making the usual charges for messages passing along their land lines. But we understand that the Government of Queensland is to charge only 7s. for a 20-words message between Normanton and any telegraph station in Queensland. As to the fifth point respecting which you ask for information, we will require substantial guarantees for the fulfilment of any arrangement made. We are not willing to grant a concession from which the concessionaires might retire at pleasure. 5. We have to remind you than when your Mr. Carl Siemens called upon us, some weeks since, he undertook to see us again in a week. He subsequently wrote that, in consequence of having to see the Indo-European Company, he would be unable to keep the appointment he had made. We believe that the Directors of the Indo-European Company met several days before your letter was written, but Mr. Siemens did not deem it necessary to communicate with us at once. We desire to say that, whilst we do not object to allowing a reasonable time for consideration, it is important that the negotiations should be proceeded with without delay ; and, inasmuch as you do not consider you are legally bound to us, it is clear that, in confining our negotiations to your firm, we are giving you an advantage in return for which we have the right to expect the utmost promptitude on your part. At this stage ot the negotiations, nothing is to be gained by correspondence which cannot much better be arrived at by personal interview. We shall be happy to see you on Tuesday next, at half-past two o'clock, at Mr. Vogel's residence, when we hope a definite conclusion will be arrived at. We have, &c, Julius Vogel. Daniel Coopee. Messrs. Siemens Brothers, &c. E. Dainteee.

No. 4 Messrs. Siemens to the Agents. Gentlemen, — London, 6th March, 1875. In reply to your letter of the 3rd of March, we beg to inform you that our Mr. Carl Siemens will meet you as requested on Tuesday next, at half-past two o'clock, at Mr. Vogel's residence. In reply to a passage of your said letter, we beg to submit the following facts : —The meeting of the Directors of the Indo-European Telegraph Company took place on the 15th February, whereas our letter to you of 13th February was delivered at Mr. Vogel's residence by special messenger on that same date, and it is therefore evident that the meeting took place after the letter was written and delivered. "We cannot admit that any unreasonable delay has been caused by us, for the resolution passed by the Directors of the Indo-European Telegraph Company on the 15th February required careful consideration, and induced us to enter into a correspondence with the Company on that subject. As our Mr. Carl Siemens had left for Paris shortly after the meeting of the Directors of the Indo-European Telegraph Company, and did not return as early as we had expected, we again addressed you on the 25th February, with a view to prevent further delay on that account; and we are glad that our communication has resulted in clearing some points which were doubtful. Having your letter of the 3rd of March before us, we have called a meeting of the projectors of the new Company for Monday next, in order to expedite matters as far as lies in our power. We will also, as soon as the landing places of the cable are positively fixed, prepare specifications for the intended cables, which we will submit to your approval at an early date. This is indispensable, in order to form a correct idea of the capital required for carrying out the undertaking. We, at present, refrain from touching other points raised in your letter. We have, <fee, Julius Vogel, Esq. Siemens Beothebs. E. Daintree, Esq. Sir Daniel Cooper.

No. 5. The Chairman, Eastern Extension Company, to the Hon. J. Vogel. Eastern Extension Australasia and China Telegraph Company (Limited), Sin,— 66, Old Broad Street, London, E.C., Bth March, 1875. Having been informed of your arrival in this country for the purpose of making arrangements for the extension of the telegraphic system to New Zealand, I have the honor to address you on behalf of the company I represent; and to state that lam prepared to undertake the laying of a cable to connect New Zealand with the Continent of Australia, on such terms as may be determined in consultation, should you entertain my offer. The scheme to which I believe your attention is at present directed involves the larger plan of not only an extension of the telegraphic system to New Zealand, but also of a cable between Australia and India, in addition to that already laid down by this Company. If the information I possess is correct, the three Governments of New Zealand, Queensland, and New South Wales have entered into an agreement for the promotion of this scheme, by guaranteeing a payment of 5 per cent, per annum on an outlay of one million sterling, which is the estimated cost of the scheme in question.

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Without knowing how far your Government may be committed to this scheme, I have thought it right, in justice to the large body of shareholders of this Company, and the large sum of money they have invested, to point out to you that the traffic, as at present developed, does not promise a sufficient return for the support of two cables, with the large outlay they involve. It may be interesting to you to know that the total traffic between Australia and all parts of the world does not exceed an average of from twenty to twenty-two messages daily, so that a second cable is in no way called for to provide for this traffic, nor does its construction hold out any prospect of financial success. I would further beg to urge that this Company, without subsidy or assistance of any kind, in the hope that it might meet a fair return for its expenditure, came forward and provided a communication which the Australian colonies had long felt the want of, and which, in spite of several endeavours, they had been unable to obtain; and I cannot but think it very hard, when no necessity exists, and when this company has not reaped that benefit it had a right to expect, that several of the Colonial Governments should combine for the purpose of supporting a scheme which offers very doubtful chances of success in itself, to the detriment of the Company I represent. I trust I may be pardoned in bringing forward the case of the Imperial Government, which, when purchasing the telegraphic lines in the United Kingdom, refused to entertain the question at all unless the whole of the companies then in existence were absorbed; one of the chief reasons of this action being that it was unwilling to enter into competition with private companies, as the weight of the Government on the one side would be so injurious and detrimental to private enterprise on the other. The cases appear to me very similar, and I therefore quote the action of the Imperial Government as embodying a principle applicable to all Governments under the Crown. The arguments employed in favour of a second cable are, I believe, that it is for the benefit of the public, insomuch that competition will lead to a reduction of the present tariff; and that two lines will ensure a certainty of communication in case of one or the other of the cables being temporarily interrupted at any time. With regard to these arguments, I would merely observe that, if the traffic does not suffice for the support of the two lines, they will prove so unremunerative that, in case of serious accident to either, it may become a question with the shareholders whether it is worth while to repair their line at the certainty of a considerable immediate outlay for the protection of a property that already does not pay them. In this case, you will see that the objects sought to be obtained by a second cable will be defeated, and the colonies will again be reduced to a single cable, with its apprehended attendant evils of monopoly. lam aware that it is argued that a reduction of tariff will lead to such an increase of traffic that it will suffice for at least the moderate support of two lines. But, unfortunately, in telegraphic experience, it is not found to be the case that a reduction of charge leads to a proportionate increase of traffic : that is to say, that with half charges the number of messages is not doubled ; but, even if it were, it merely results that the amount of work and cost of establishment is largely increased while the gross returns remain the same. While on the subject of tariff, it may be well to remember that the working capacity of a cable is limited, so that a simple calculation will determine the tariff at which the amount of traffic can be carried with a fair return on the capital invested. Moreover, it must be recollected that cables are perishable property, and that, therefore, a considerably greater return on their cost is required than if the property were of a more permanent nature. The time they will last is not yet fairly ascertained, as it is dependent on so many circumstances as to position and the nature of the seas they traverse ; but to make the property fairly safe, the profits ought to allow of a considerable percentage on the capital invested being laid by annually, as a reserve for the renewal of the lines. lam sorry to say the profits of none of the Eastern telegraph companies have yet allowed of this being done on a sufficient scale. In countries so widely separated as Australia and England, where the modes of life and individual interests are so different, it is found that telegrams of a private or social character are seldom exchanged, nor do I think the practice would spring up even if the tariff were comparatively nominal. The principal point, therefore, to consider is the tariff on commercial messages, which are those which almost exclusively pass over our lines. lam aware that great objections are made to tariffs generally, and that we are told that the number of messages would greatly increase if the cost were less, and the facilities offered were greater. Where these facilities have been tried on the American and Eastern lines this has not proved to be the case ; but it has been found that those engaged in commerce will not send one message more than the exigences of their business require, and, as almost each message refers to some transaction which will prove remunerative to the sender, it seems but fair that those who have supplied that facility should have a fair return for it, especially when it is considered that this charge forms but a very small item in the profits of the transaction. It must, moreover, be borne in mind that the public have taken very efficient means for their own protection by the use they make of codes, which enable them by the employment of a single word to convey the meaning of an entire sentence. They also, by employing packing agencies, are enabled to send as few as two or three words, so that they are able to limit their expense at pleasure, while the information they transmit is only limited by the intelligence with which their code is compiled. As far, therefore, as the public is concerned, Ido not think there is much cause for Government interference. It may perhaps be urged that in its own interest the Government desires a reduction of charges; to which I can only reply that it is a simple calculation whether it is cheaper to pay a somewhat enhanced charge for infrequent messages, or to pay a sum of £50,000 per annum for its reduction by one-half. Should the object of the several Governments concerned have been to obtain a more direct communication between the eastern colonies and the terminus of the present cable than that which now exists, I think no difficulty would have been found in arranging terms for a cable between Normanton and the mouth of the Uoper River, and for a land line thence to Port Darwin. The plan might have been accomplished in concert with the South Australian Government and this Company, and would have been much less expensive than that now sought to be carried out. I have entered somewhat fully into these questions, and I trust I may not have troubled you by 2—F. 4.

II. —As to the proposed two Cables. i i I i i i i i \ i I L [ I I

R—4

10

ll.—As to the proposed two Cables.

the length of my remarks. I have, however, thought it well to put the case before you, that it may be considered in all its bearings. In recapitulation, I would beg to represent that this Company does not consider a second line called for in the present state of the traffic, but that, if the public consider one required, it should be left to the public to supply it without the direct assistance and countenance of the Government: that this Company considers it should have gained the recognition and countenance of the Governments for the spirited nature of its enterprise in laying its cable without assistance, and is very much disappointed in consequence at the present action of the Governments : thai, if a cable is required to New Zealand, this Company is willing and ready to treat for it on a fair and equitable basis. I have, &c, John Pender, The Hon. J. Vogel, C.M.G., Premier of New Zealand, &c. ' Chairman.

No. 6. The Hon. J. Vooel to the Chaieman, Eastern Extension Company. 7, "Westminster Chambers, Victoria Street, Westminster, Sib,— 17th March, 1875. I have the honor to acknowledge the receipt of your letter of March Bth (No. 490), respecting the proposed " extension of the telegraphic system to New Zealand," which letter encloses, rather unusually, if you will permit me to say so, copies put into print in anticipation of my answer. 2. In reply, I have to state that the Colony of New Zealand suffers very much from the want of cable communication with the rest of the world; and lam unaware of any consideration, of a sentimental or other character, for a Company carrying on its operations thousands of miles distant, and wholly unrepresented, so far as I am informed, in the colony, which should prevent those who have charge of the affairs of the colony from endeavouring to supply the want in the manner best calculated to promote the interests they have to watch over. 3. Since you have raised the question of tariffs, you will, perhaps, permit me to say that, in my opinion, if the present charges were reduced by at least one-half, and a rate per word adopted, the business would increase to an extent which would more than compensate for the reduction. Experience in the colonies, as to the effects of reduced tariffs for messages, amply justifies this opinion. I have, &c, John Pender, Esq., Chairman, Eastern Extension Australasia Julius Vogel. and China Telegraph Company (Limited).

No. 7. The Managing Director, Eastern Extension Company, to the Hon. J. Vogel. The Eastern Extension Australasia and China Telegraph Co. (Limited), Sir,— 66, Old Broad Street, London, E.C., 25th March, 1875. In the absence of Mr. Fender, I have to acknowledge the receipt of your letter of the 17th instant, and regret that you should have misunderstood the object with which the printed copies were enclosed in his former letter. It is the custom of this Company to keep printed copies of important letters to Governments, both for record or for use, if required at any time. In the present instance, it was thought that a few copies might be a convenience to you, in case of your desiring to forward the correspondence to your Government, or to otherwise make use of it; and for this purpose they were enclosed. With regard to the second paragraph of your letter, I have to observe that this Company is well aware of the want of a cable which is felt by New Zealand. The object of Mr. Pender's letter was not to complain that the Colony of New Zealand had taken such steps as it might think in its interest for the establishment of this communication, but Mr. Pender did think it right to point out the injury that the colony was inflicting upon this Company by joining with other Governments, not in the same position as itself, in promoting a larger scheme, in opposition to this Company, which was not required cither for carrying the existing traffic or for furthering the connection of your colony with Europe. Mr. Pender, in his letter, has declared the readiness of this Company to treat for the laying of a cable between Australia and New Zealand. You will excuse me, if I do not enter upon a discussion with you upon the question of tariff. I have, &c, T. G. Gloves, Colonel, K.E., The Hon. Julius Vogel, C.M.G., Premier of New Zealand. Managing Director.

No. 8. Messrs. Siemens to the Agents. 12, Queen Anne's Gate (formerly known as 8, Park Street), Gentlemen, — London, 10th March, 1875. Referring to our meeting of 9th instant, and to the specifications of a cable to connect Singapore with Norman Mouth, and New South Wales with New Zealand, which we, on that occasion, had the honor to submit to you for your approval, we feel it our duty to point out to you that the cables thus proposed are of a lighter construction than the one we had the honor to propose to Mr. Daintrce in 1872, and which was intended to connect the East Coast of Java with Norman Mouth.

11

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In comparing, for instance, the last-mentioned cable with those now proposed by us, it will be found that the former had a conductor weighing 215 lbs., and a dielectric weighing 200 lbs. (altered by Mr. Daintree's own specifications to 210 lbs. for the conductor, and 260 lbs. for the dielectric); whereas the latter have conductors weighing 86 lbs., 100 lbs., and 150 lbs., and dielectrics weighing 120 lbs., 132 lbs., and 160 lbs., respectively per nautical mile; and also that the outer protection or armour of the first mentioned cable was heavier than those of the latter. We have partly, in this instance, been induced to propose a light construction of cable, because we have to endeavour to reduce its cost to a minimum to facilitate the raising of the capital required to carry out the undertaking. It was for this reason, also, that we proposed, for the cable from New South Wales to New Zealand, the route indicated in red on the Admiralty Chart No. 2,483, left with you yesterday, this being by far the shortest route between the two places to be connected. If, as you suggested, it be imperative to adopt the route from a place near Sydney to a place near Cape Farewell, a longer cable will be required for this section, and to meet this emergency we beg to enclose a specification No. 3a, for a cable from Sydney to Cape Farewell, in place of the specification No. 3, left with you yesterday. With respect to the route of the cable to connect Singapore with Norman Mouth, we beg most strongly to recommend to your kind consideration the adoption of the one proposed by us. In the interest of the Company, as well as of the Colonial Governments concerned, we think it of importance that the permission should be granted to have a station at the Island of Java. This is the only locality between Singapore and Norman Mouth from which it may be expected that an earning will be derived, which earning would not only increase the income of the Company, and, therefore, the chances of its success, but would at the same time help to reduce the guarantee given by the Colonial Governments. As the line is intended to be kept independent from the existing line between Australia and Europe, arrangements can easily be made that such is the case, whether the new line touches at Java or not, for a similar case will arise where both lines meet at Singapore. We see no advantage in touching at Macassar, as, after going to Java, it would not only increase the cost of the undertaking by going some distance out of the way to connect that place, but the cable required to cross the Flores Sea would probably have to be a heavy and expensive one, from the circumstance that the Southern Peninsula of Celebes, on which Macassar is situated, is subject to the calamity of earthquakes and volcanic eruptions, and we are afraid that the adjoining sea is not exempt from such disturbances. The scanty information given by existing charts appears to us to confirm fully that the bottom of the Flores Sea is irregular, and very unfavourable to the durability of a submarine cable, and should therefore be avoided. We shall be glad to receive, also, your approval as to the route submitted by us. We have, &c, Julius Vogel, Esq. Siemens Brothers. B. Daintree, Esq. Sir Daniel Cooper.

ll.—Ab to the proposed two Cables.

No. 9. The Agents to Messrs. Siemens. Gentlemen, — London, 12th March, 1875. We have the honor to acknowledge the receipt of your letter of Gth March. 2. In reply, we have to inform you that we have taken advice as to the specifications for the proposed cables between Singapore and Normanton, and New Zealand and Australia. The result of that advice leads us to the conclusion that the cables you propose would be in the nature of an experiment ; and an experiment, moreover, which previous experience does not justify. We shall not be willing to accept cables of less strength than those indicated by alterations in red* on the specifications returned herewith. After copying these alterations, we shall be obliged by your returning the originals, which we forward to you to save time. 3. You will allow us to observe, that the interests of the persons who find the capital are, under the proposed arrangement, similar to those of the Governments, in respect to adopting sufficiently strong cables. Indeed, their interest is, from one point of view, larger —since the guarantee is only to continue whilst the lines are in good order. Possibly, therefore, the persons supplying the capital may require stronger lines than we have indicated: in justice to themselves, we are sure they cannot require less. 4. We should, of course, require that the specifications contain clauses specifying the quality of the materials to be used; and that the contract contain provisions to enable us to watch the progress of the work. 5. We have not verified the lengths of the several types of cable, nor the entire lengths of the lines, and express no opinion as to their correctness. 6. We will communicate with you separately on the subject of the Java deviation. That part of the specification which points to a route by Java we do not accept at present. 7. With respect to the landing on the Malay Peninsula, between Penang and Singapore, we must inform you that We shall stipulate, in case that line does not work satisfactorily, that we be at liberty to call upon you to lay a cable instead. We have, &c, Julitjs Vogel. Daniel Coopeb. Messrs. Siemens Brothers, &c. B. Daintbee. * The " alterations in red " are shown by figures in brackets, in the documents as printed.

F.—4

12

II. —As to the proposed two Cables.

Enclosures. Specification N"o. 1. —For the Submarine Telegraph Cable from Singapore to Normanton. A. — The Cable from Singapore to a point near Sourabaya, in the Island of Java. Coke. Conductor. —The conductor to consist of a strand of three copper wires, weighing 86 lbs. per nautical mile of 2,029 yards, or within 5 per cent, thereof. The conductivity of the conductor to be equal to at least 90 per cent, of that of pure copper. Dielectric. —The conductor to be covered with three coatings of gutta percha and compound. The dielectric to weigh 120 lbs. [130] per nautical mile, or within 5 per cent, thereof. Weight of Core. —The total weight of the core when -completed to be 206 lbs. [216] per nautical mile, or within 5 per cent, thereof. Serving. Serving. —The core to be covered with a serving of jute yarn, and to be immersed in water. Outek Coverings. Main Cable, No. 4607.—The main cable to consist of the served core sheathed with twelve galvanized " best best" iron wires, laid on helically, the diameter of each wire to be o'llß ['134] of an inch when galvanized, or within 2} per cent, thereof. This cable to have an outer protective covering of two servings of jute yarn wound on in contrary directions, with two coatings of asphalte compound. 730 nautical miles of this (main) cable are to be supplied. Light Shore-End Cable, No. 4609.—The light shore-end cable to consist of the served core, sheathed with 10 galvanized " best best " iron wires, laid on helically, the diameter of each wire to be -224 of an inch when galvanized, or within 2| per cent, thereof. The cable to have an outer protective covering of two servings of jute yarn wound on in contrary directions, with two coatings of asphalte compound. Thirteen nautical miles of this (light shore-end) cable are to be supplied. Heavy Shore-End Cable, No. 4611.—The heavy shore-end cable to consist of the main cable, No. 4607, without the outer servings of jute and compound, but further served with tarred jute yarn, and sheathed with twelve galvanized " best best " iron wires, laid on helically ; the diameter of each wire to be o'4oo of an inch when galvanized, or within 2-J- per cent, thereof. Sixty-six nautical miles of this heavy shore-end cable are to be supplied. Total length required for this section, 809 nautical miles. B. — The Cable from Sourabaya to a place near Koepang, on the Island of Timor. Coee. Conductor. —The conductor to consist of a strand of three copper wires weighing 80 lbs. per nautical mile of 2,029 yards, or within 5 per cent, thereof. The conductivity of the conductor to be equal to at least 90 per cent, of that of pure copper. Dielectric. —The conductor to be covered with three coatings of gutta percha and compound. The dielectric to weigh 120 lbs. [130] per nautical mile, or within 5 per cent, thereof. Weight of Core. —The total weight of the core when completed to be 206 lbs. [216] per nautical mile, or within 5 per cent, thereof. Serving. Serving. —The core to be covered with a serving of jute yarn, and to be immersed in water. Oittee Coverings. Light Main Cable, No. 4605. —The light main cable to consist of the served core sheathed with fifteen galvanized homogeneous iron wires, laid on helically, the diameter of each wire to be "086 ['099] of an inch when galvanized, or within 5 per cent, thereof. The wires to have an average breaking strain of 50 tons per square inch, or within 5 per cent, thereof; and an elongation averaging not less than i per cent, when tested in lengths of 10 inches. The cable to have an outer protective covering of two servings of jute yarn wound on in contrary directions, with two coatings of asphalte compound. 705 nautical miles of this (light main) cable are to be supplied. Heavy Main Cable, No. 4607. —The heavy main cable to consist of the served core sheathed with twelve galvanized " best best" iron wires, laid on helically, the diameter of each wire to be 0-118 [134] of an inch when galvanized, or within 2J per cent, thereof. The cable to have an outer protective covering of two servings of jute yarn wound on in contrary directions, with two coatings of asphalte compound. 166 nautical miles of this heavy main cable are to be supplied. Light Shore-End Cable, No. 4609. —The light shore-end cable to consist of the served core sheathed with ten galvanized " best best " iron wires, laid on helically, the diameter of each wire to be '224 of an inch when galvanized, or within 2.V per cent, thereof. The cable to have an outer protective covering of two servings of jute yarn wound on in contrary directions, with two coatings of asphalte compound. Four nautical miles of this light shore-end cable are to be supplied. Heavy Shore-End Cable, No. 4611.—The heavy shore-end cable to consist of the heavy main cable, No. 4607, without the outer servings of jute and compound, but further served with tarred jute yarn, and sheathed with twelve galvanized "best best" iron wires, laid on helically, the diameter of each wire to be o'4oo of an inch when galvanized, or within 2J per cent, thereof. Sixteen nautical miles of this heavy shore-end cable are to be supplied. Total length required for this section, 891 nautical miles. C.— The Cable from near Koepang to Norinanton. COBE. Conductor, —The conductor to consist of a strand of seven copper wires, weighing 150 lba. [145]

13

P.—4.

per nautical mile of 2,029 yards, or within 5 per cent thereof. The conductivity of the conductor to ' be equal to at least 90 per cent, of that of pure copper. Dielectric. —The conductor to be served with three coatings of gutta percha and compound. The ' dielectric to weigh 160 lbs. [185] per nautical mile, or within 5 per cent, thereof. Weight of Core. —The total weight of the core, when completed, to be 310 lbs. [335] per nautical mile, or within 5 per cent, thereof. Sebving. Serving. —The core to be covered with a serving of jute yarn, and to be immersed in water. OUTEE COVEEINGS. Light Main Gable, No. 4G13. —The light main cable to consist of the served core sheathed with seventeen galvanized homogeneous iron wires, laid on helically, the diameter of each wire to be '086 ['099] of an inch when galvanized, or within 5 per cent, thereof; the wires to have an average breaking strain of 50 tons per square inch, or within 5 per cent, thereof, and an elongation averaging not less than $ per cent, when tested in lengths of 10 inches. The cable to have an outer protective covering of two servings of jute yarn wound on in contrary directions, with two coatings of asphalte compound. 643 nautical miles of this (light main) cable are to bo supplied. Heavy Main Cable, No. 4615.—The main cable to consist of the served core, sheathed with fourteen, galvanized " best best " iron wires, laid on helically, the diameter of each wire to be be 0118 ['124] of an inch when galvanized, or within 2^ per cent, thereof. The cable to have an outer protective covering of two servings of jute yarn wound on in contrary directions, with two coatings of asphalte compound. 685 nautical miles of this (heavy main) cable are to be supplied. Light Shore-End Cable, No. 4617. —The light shore-end cable to consist of the served core sheathed with ten galvanized " best best " iron wires, laid on helically, the diameter of each wire to be '224 of an inch when galvanized, or within 2\ per cent, thereof. The cable to have an outer protective covering of two servings of jute yarn wound on in contrary directions, with two coatings of asphalte compound. Sixty five nautical miles of this (ligbt shore-end) cable are to be supplied. Medium Shore-End Cable, No. 4619. —The medium shore-end cable to consist of the served core sheathed with ten galvanized " best best " iron wires laid on helically, the diameter of each wire to be •365 of an inch when galvanized, or within 2i per cent, thereof. Fifty-three nautical miles of this (medium shore-end) cable are to be supplied. Heavy Shore-End Cable, No. 4621.—The heavy shore-end cable to consist of the heavy main cable No. 4615, without the outer servings of jute and compound, but further served with tarred jute yarn, and sheathed with twelve galvanized " best best" iron wires, laid on helically, the diameter of each wire to be 0400 of an inch when galvanized, or within 2J per cent, thereof. Two nautical miles of this (heavy shore-end) cable are to be supplied. Total length required for this section, 1,448 nautical miles. Specification No. 3a.—For the Submarine Telegraph Cable from Cape Howe [Sydney], in New South Wales, to Milford Sound [Cape Farewell], in New Zealand. Coee. Conductor. —The conductor to consist of a strand of seven copper wires, weighing 100 lbs. per nautical mile of 2,029 yards, or within 5 per cent, thereof. The conductivity of the conductor to be equal to at least 95 per cent, of that of pure copper. Dielectric. —The conductor to be covered with three coatings of gutta percha and compound. The dielectric to weigh 132 lbs. [148] per nautical mile, or within 5 per cent, thereof. Weight of Core. —The total weight of the core when conpleted to be 232 lbs. [248] per nautical, or within 5 per cent, thereof. Seeying. Serving. —The core to be covered with a serving of jute yarn, and to be immersed in water. Otjtee Coveeifgs. Light Main Cable, No. 4611. —The light main cable to consist of the served core sheathed with nine strands of wire and hemp, laid round helically, each strand to consist of a galvanized homogeneous iron wire surrounded with five yarns of St. Petersburg or Manilla hemp, laid on helically, and each strand passed through a compound of mineral pitch, tar, and silica [weight of hemp, with 20 per cent, of tar, 9821b5.]. Each homogeneous iron wire is on the average to be 099 of an inch in diameter when galvanized, or within 5 per cent, thereof. The homogeneous wires to have an average breaking strain of 50 tons per square inch, or within 5 per cent, thereof, and an elongation averaging not less than J per cent, when tested in lengths of 10 inches. The completed cable to be passed through a similar compound as the strands which form the sheathing. 1,289 nautical miles of this (light main) cable are to be supplied. Heavy Main Cable, No. 4627.—The heavy main cable to consist of the served core sheathed with thirteen galvanized " best best " iron wires, laid on helically, the diameter of each wire to be o'llß [o'l3] of an inch when galvanized, or within 2-j per cent, thereof. The cable to have an outer protective covering of two servings of jute yarn wound on in contrary directions, with two coatings of asphalte compound. Thirty nauticai miles of this (heavy main) cable are to be supplied. Light Shore-End Cable, No. 4625.—The light shore-end cable to consist of the served core sheathed with ten galvanized " best best " iron wires, laid on helically, the diameter of each wire to be "224 of an inch when galvanized, or within 2 \ per cent, thereof. The cable to have an outer protective covering of two servings of jute yarn wound on in contrary directions, with two coatings of asphalte compound. Ten nautical miles of this (light shore-end) cable are to be supplied. Heavy Shore-End Cable, No. 4623.—The heavy shore end-cable to consist of the heavy main cable, No. 4627, without the outer servings of jute and compound, but further served with tarred yarn,

II. —As to the proposed two Cables.

P.—4

14

II. —As to the proposed two Cables.

and sheathed with twelve galvanized " best best " iron wires laid on helically, the diameter of each wire to be O'3G5 of an inch when galvanized, or within 2J- per cent, thereof. Ten nautical miles of this (heavy shore-end) cable are to be supplied. Total length required for this section, 1,339 nautical miles. Sttmmaet. Singapore to Sourabaya ... ... ... ... 809 nautical miles. Sourabaya toKoepang ... ... ... ... 891 „ Koepang to Normanton ... ... ... ... 1,44S „ Australia to New Zealand ... ... ... ... 1,339 „ 4,487 London, 10th March, 1875. Siemens Beotheeb.

No. 10. The Hon. J. Vogel and Sir D. Coopee to Mr. B. Dainteee. 87, Gloucester Place, 12th March, 1875. Aftee the opinion expressed by Mr. Fleming Jenkins as to the impolicy of taking the proposed cable to Macassar, and the expediency of letting it touch at Java, it seems to us impossible, with any show of reason, to resist the strong representations of a similar nature made by Messrs. Siemens Brothers. We therefore urge you to consider the point, upon the clear understanding that a line quite distinct from the present line be supplied. There seems to us no difficulty in allowing the line to touch at Java, and at the same time protecting the colonies from a collusion which would be detrimental to the competition which is desired. We also desire to strongly express to you our opinion that the Government of Queensland should give to the Governments of New South Wales and New Zealand the advantages of a rate for land messages to Normanton as low as the rate adopted in the colony itself. Not only is this fair to the contracting colonies; but, if such a plan be not adopted, messages will be forwarded to Queensland for re-transmission, and a most iuconvenient system will grow up. If you are not able to concede these points, will you. by cable, ask your Government to enable you to do so ? Jtjlius Vogel. Daniel Cooped.

No. 11. Mr. Daintbee to the Hon. J. Vogel and Sir D. Coopeb. 32, Charing Cross, 13th March, 1875. With: reference to your memo, of the 12th instant, urging the concession of allowing the SingaporeNormanton cable to touch at Timor and Java instead of Macassar, I have previously pointed out that my instructions are very definite that Macassar shall be the only repeating station between Singapore and Queensland. After the opinion expressed by Mr. Fleming Jenkins, and'your own strong appeal on this point, I have, however, at once telegraphed to my Government for further instructions. I have, at the same time, asked for a full explanation of clause 7 of the resolutions, in order to give a definite reply to the second point raised in your memorandum. Eichaed Dainteee.

No. 12. Mr. Daintbee to the Hon. J. Vogel. Queensland Government Office, 32, Charing Cross, S.W., Sir,— 24th March, 1875. I send herewith copy of telegram received from the Colonial Secretary, Brisbane, which furnishes a reply to your memorandum of 12th instant: — " Government insist on separate line rid Macassar, otherwise contract not to be entered into. The charge of seven shillings covers cost of transmission over Queensland line only." I am, &c, Eichakd Dainteee, Julius Vogel, Esq., 87, Gloucester Place, Eegent's Park. Agent-General.

No. 13. Messrs. Siemens to the Agents. 12, Queen Anne's Gate (formerly known as 8, Park Street), Gentlemen, — London, S.W., 19th March, 1875. With reference to your letter of the 12th instant, we beg leave to say that we quite agree with you that the construction of the cables contemplated should, in the interest of ail parties concerned, be as strong as possible. We also beg to state that the specifications for the definite contract will contain clauses providing for the quality of the materials to be used : and we shall be most happy to make arrangements to enable you to watch the progress of the work.

15

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While awaiting your further communications on the subject of the Java deviation, we deem it our 1 duty at once to inform you that, at a meeting which we had yesterday with the gentlemen in combina-1 tion with whom we endeavour to carry out this project, the conclusion was arrived at that the £12,000 provided to cover expenses are far too small an amount. This conclusion was arrived at for the following reasons: — lie starting point for bringing Normanton and New Zealand, in accordance with your stipulations, in independent telegraphic connection with Europe, must necessarily be some point on the east coast of India proper, south of Calcutta; and the Company intended to be formed will, therefore, actually have to provide telegraphic communication between India proper and New Zealand. To carry out such project successfully, they consider that the Colonial Governments should allow the Company to earn a far larger amount, to cover working expenses and maintenance, to make provision for reserve fund, and to allow the payment of a dividend to the shareholders, upon a capital exceeding £1,000,000; and that, therefore, the receipts of the Company should only be taken in reduction of the £50,000 per annum to be guaranteed by the Colonial Governments, after the Company has earned such larger amount intended to meet expenses, reserve, and dividend upon the entire line from India to New Zealand. We are instructed to submit the above suggestion on behalf of the gentlemen referred to, and our Mr. Carl Siemens will, at to-day's meeting, confer further with you upon the subject. J. Vogel, Esq., C.M.G. We have, &c, Richard Daintree, Esq. Siemens Brothers. Sir Daniel Cooper, Bart.

[I.—As to the Di'oposed two Oables.

No. 14. Telegraph Construction and Maintenance Company to the Agents. Telegraph Construction and Maintenance Company (Limited) Office, Gentlemen, — 38, Old Broad Street, London, E.C., 7th April, 1875. In reply to your invitation that this Company should consider the proposal which you have placed before us, for the construction and laying of a submarine cable between New Zealand and NewSouth Wales, and between Normanton, in Queensland, and Singapore, on the basis of certain conditions set forth in the several proceedings of the Legislative Assemblies of the three colonies concerned, and repeated in the instructions which you have received from your respective Governments, and which you have been good enough to favour us with a perusal of, I have the honor to inform you that, under the terms of the conditions referred to, it would not be possible to raise the capital necessary to carry out this great operation. Our long experience in the construction and laying of all the great oceanic lines which at present exist, convinces us that it would neither be just, nor conducive to the public interests which you represent, or to the interests of submarine telegraphy in general, to attempt to form a company and raise capital unless we could guarantee to the shareholders such a reasonable dividend as they would have a right to expect from money so invested. We are, therefore, reluctantly compelled to decline the proposals which you have submitted to us. As however, at our interview yesterday, you expressed a desire that we should suggest some modified basis upon which we would be prepared to treat, I will take an early opportunity of bringing the subject under the consideration of the Directors, when you may be assured it will receive that careful attention which its importance demands ; and I will then do myself the honor of communicating further with you. I am, &c, Sir Daniel Cooper, Bart. Geo. Henet Richards, Julius Vogel, Esq., C.M.G. Rear-Admiral, Richard Daintree, Esq. Managing Director.

No. 15. Messrs. Siemens to Sir D. Coopee. Sib,— 12, Queen Anne's Gate, London, S.W., Bth April, 1875. AYe have duly received your letter of Ist instant, and, although we have not yet been able to go into all the details of the construction of the cables to meet the various requirements indicated in your letter of 29th ultimo, we have considered the points sufficiently to arrive at the following conclusions: — A company will have to raise a capital of about £1,000,000 to connect Singapore with Normanton, via Java and Timor, by an efficient cable. If such cable is to touch at Macassar as well, we think that about £50,000 should be raised in addition, to cover the extra expenditure, provided that the bottom of the sea where the cable is to be placed to reach Macassar is practicable for the purpose. If such cable were to go direct from Singapore to Norinanton, touching only at Macassar, we calculate that at least £1,300,000 would have to be raised by the Company. These figures, however, refer only to a part of the project. Should this project be carried out in its entirety, the money to be raised to bring ludia proper into independent telegraphic communication •with Queensland, New South Wales, and New Zealand, would be considerably larger; and it was the opinion of the promoters of the Indo-Australian Telegraph Company, when we brought this question before them, that the Company intended to be formed for the carrying out the whole scheme should be allowed to earn £80,000 a year to cover the working expenses, maintenance, reserve fund, and to give them a fair chance of earning a reasonable dividend before any receipt of the Company should be taken in reduction of the £50,000 per annum intended to be guaranteed by the Colonial Governments. We have, &c, Sir Daniel Cooper, 20, Princes' Gardens. Stemens Brothers.

£.—4

16

ll.—As to the proposed two Cables.

No. 16. India Rubbeb, Gutta Peecha, and Telegeaph Woeks Company (Limited) to Sir D. Coopes. Dear Sib,— 106, Cannon Street, London, 30th April, 1875. It was with great regret that the Directors of this Company found themselves unable to tender to the Commissioners of the Governments of New South "Wales, New Zealand, and Queensland for the establishment of submarine telegraphic cables between New Zealand and New South Wales, and between Normanton and Singapore, under the memorandum of conditions dated 14th February, 1873, signed by the representatives of the same Governments. The conditions expressed in that memorandum did not appear to the Directors of this Company to be such as to afford to the Company any reasonable prospect of obtaining from English capitalists, or the English public, the necessary capital for the undertaking. The allowance of £12,000 per annum for working expenses was inadeqnate for a cable system with at least five stations; and the want of provision for the foundation of a fund to meet repairs and pay dividends whilst the guarantee might be suspended, would be an insuperable objection to the raising of the capital in England. There were also other points in the conditions on which difficulties would have arisen. We are, however, satisfied that it may be possible for our Company to execute the contemplated work on terms to be arranged with the Governments concerned, to the mutual advantage of both parties; and, in accordance with a suggestion made by you, we subjoin particulars of what we would submit to the Governments as the heads of arrangement for the purpose. Understanding that the section between New Zealand and New South Wales will be dealt with separately, we enclose specifications of cables proposed to be laid between Singapore and Macassar, and between Macassar and Normanton, and we should be prepared to enter into a proper contract for the making and laying of these cables upon the following terms: — 1. The Governments of New South Wales and Queensland to guarantee (in such proportions as they may arrange between themselves) 5 per cent, per annum, payable half-yearly, for a term of thirty-five years, upon £750,000 as the agreed amount to be taken as the cost of the lines. 2. £12,000 per annum to be allowed to cover working expenses, and £22,500 (being 3 percent, on the capital) to be allowed for a reserve fund to provide for maintenance, repair, and renewal of the cables, and for payment of dividends, or interest in case the guarantee should be suspended. 3. All receipts above £34,500 (viz., £12,000 plus £22,500) to go in reduction of the guarantee, and the Company to retain receipts in excess of £72,000,] being the amount of income guaranteed (viz., £37,500, or 5 per cent, on £750,000 plus the above £34,500) ; but if the profits divided should bo more than 10 per cent, for any three consecutive years, then the Governments may require that the rates shall be lowered to amounts calculated to reduce the divisible profits to 10 per cent, per annum. 4. The guarantee to be paid whilst the lines are in working order, and for four months after any breakage or interruption, but to be suspended after such four months, unless or until the lines shall be restored to working order. We send a duplicate of this letter to Mr. Daintree as Commissioner for Queensland. I have, &c., Sir Daniel Cooper, Bart., Matthew Geat, Commissioner appointed by the Government of New South Wales, General Manager. 3, Westminster Chambers, S.W.

Enclosure. Specification of Stjbmaeine Cable. Singapore to Macassar. Main Cable ... ... ... ... ... ... 1,120 knots. Intermediate ... ... ... ... ... ... 24 ~ Shore End ... ... ... ... ... ... 66 „ Total ... ... 1,210 knots. Conductor. —The conductor to consist of a strand of seven annealed copper wires, weighing 93 lbs. per nautical mile, or within 5 per cent, thereof, and the interstices to be filled up with Chatterton's compound; the conducting power to be not less than 90 per cent, of that of pure copper at a temperature of 75° Fall. Insulation. —The conductor to be insulated with three coatings of gutta percha weighing 130 lbs. per nautical mile ; Chatterton's compound to be laid on the wire between the conductor and the first covering of gutta percha, and also between each covering of gutta percha; the coverings to be as near as possible of equal thickness. The insulation resistance of the completed core to be not less than 200 millions of B.A. units per nautical mile, at a temperature of 75° Fah., after one minute's electrification. Serving. —The core to be covered with a good and sufficient serving of jute yarn to form a compact body when the iron wires are closed around it; the yarn to be uniform, free from knots, and of the best quality. Armature. —The main cable to consist of twelve " best best" galvanized iron wires, '134 inch diameter. The intermediate to consist of ten " best best" galvanized iron wires, '224 inch diameter. The shore end to consist of twelve " best best" galvanized iron wires, '4 inch diameter. Outer Covering. —The whole of the cables to be served with two coatings of tarred jute yarn, put on in reverse la} Ts. and bituminous compound. Lay of Iron Wires. —The iron wires to be laid on spirally round the core, with a turn suitable to the size of the wire, and to lie close together, the work to be done in the best and most workmanlike manner.

17

F.—4,

The cable to be coiled in water-tight tanks, and covered with water as soon as made, and to be so kept until coiled on board the vessels appointed to receive it. Macassar to Normanton. Main Cable ... ... ... ... ... ... 1,718 knots. Intermediate ... ... ... .... ... ... 74 „ Light Shore End ... ... ... ... ... ... 50 Heavy Shore End ... ... ... ... ... ... 18 „ Total ... ... 1,860 knots. Conductor. —The conductor to consist of a strand of seven annealed copper wires, weighing 240 lbs. per nautical mile, or within 5 per cent, thereof ; and the interstices to be filled up with Chatterton's compound. The conducting power to be not less than 90 per cent, of that of pure copper at a temperature of 75° Fah. Insulation. —The conductor to be insulated with three coatings of gutta percha, weighing 260 lbs. per nautical mile. Chatterton's compound to be laid on the wire between the conductor and the first covering of gutta percha, and also between each covering of gutta percha; the coverings to be as near as possible of equal thickness. The insulation resistance of the completed core to be not less than 200 millions of B.A. units per nautical mile, at a temperature of 75° Fah. after one minute's electrification. Serving. —The core to be covered with a good and sufficient serving of jute-yarn to form a compact body when the iron wires are closed around it; the yarn to be uniform, free from knots, and of the best quality. Armature. —The main cable to consist of fifteen " best best" galvanized iron wires, "124 inch diameter. The intermediate to consist of ten " best best " galvanized iron wires, "224 inch diameter. The light shore end to consist of ten " best best " galvanized iron wires, '365 inch diameter. The heavy shore end to consist of twelve " best best " galvanized iron wires, '4 inch diameter. Outer Covering. —The whole of the cables to be served with two coatings of tarred jute-yarn, put on in reverse lays, and bituminous compound. Lay of Iron Wires. —The iron wires to be laid on spirally round the core, with a turn suitable to the size of the wire, and to lie close together; the work to be done in the best and most workmanlike manner. The cable to be coiled in water-tight tanks, and covered with water as soon as made, and to be so kept until coiled on board the vessels appointed to receive it.

ll.—As to the proposed two Cables.

No. 17. Messrs. Siemens to the Hon. J. Vogel. 12, Queen Anne's Gate (formerly known as 8, Park Street), Sie ,— London, S.W., 12th May, 1875. We beg leave to confirm our letter of the 7th instant; and we now address you again on the subject of the Indo-Australasian Telegraph project, because rumours have reached us that the New Zealand Government, either alone or in conjunction with other Colonial Governments, have already concluded or are on the point of concluding an arrangement with the Eastern Extension Telegraph Company, by which the said Government or Governments intend to contribute a part of the necessary funds for the construction of the cable to connect New Zealand with Australia, or to render the Eastern Extension Telegraph Company assistance in some other way to further the carrying out of that line. After the great expenditure of time and money incurred by us towards the establishment of a second independent line of communication between India and Australasia, we are unwilling to believe that these rumours are based upon facts, as we Hatter ourselves that, in case of any alteration of the guarantee or assistance offered by the Colonial Governments which were found impracticable for the carrying out of the project, we would be acquainted with the terms of such alteration, so as to give us a fair chance to recoup us for the trouble we have had during the past years in that matter. We therefore shall feel greatly obliged if you will inform us if there is any truth in such reports ; and should the carrying out of the New Zealand line (or any other part of the Australasian line), have been offered to the Eastern Extension Telegraph Company upon other terms than those upon which we had the honor to negotiate with you, we should be glad if you would give the opportunity either to us or to the Indo-Australasian Telegraph Company, with whom we act in concert, of considering such new terms, so that we may have at least the same chance as other parties of obtaining the contract for the work contemplated. We shall be most happy to meet you on the subject, and to attend any appointment which you will be pleased to make. We have, Ac, (Pro Siemens Brothers), Julius Vogel, Esq., C.M.G., Premier of New Zealand. L. Lceffler.

No. 18. The Hon. J. Vogel and Sir D. Coopee to Messrs. Siemens. Gentlemen, — London, 21st May, 1875. We have deferred answering your letter of the 12th instant, addressed to us separately, until we could confer together and give you a joint reply. 3—F. 4.

F.—4

18

ll.—As to the proposed two Cables.

2. We have to remind you that the negotiations for carrying out tbe> arrangements for a second cable communication with Australia and New Zealand via Queensland, were brought to an end by yourselves, by your expressing your entire inability to carry out the preliminary agreement entered into by your agent at Sydney, and which, from time to time, that gentleman frequently gave the various Governments to understand you were willing to carry out. 3. Tour inability to carry out the agreement made on your behalf gives you no claim on the colonies, but the reverse; nor did you, when the negotiations were broken off, assert any such claim. Had you done so, we should have told you we did not recognize it. We must, therefore, decline to give you the information you seem to demand by your letter. We have, &c, Julius Vogel. Messrs. Siemens Brothers. Daniel Cooper.

lII.—CORRESPONDENCE RESPECTING- A CABLE PROM NEW ZEALAND TO NEW SOUTH WALES, AND RESPECTING REDUCED RATES BETWEEN ENGLAND AND AUSTRALIA. No. 1. The Managing- Dieectoe, Eastern Extension Australasia and China Telegraph Company (Limited), to the Hon. J. Vogel. My dear Mr. Vogel,— 66, Old Broad Street, London, E.C., 20th April, 1875. I enclose you, as I promised, a copy of my letter to Mr. Boothby. As I told you to-day, I was not quite clear, without reference to this letter, what our proposed tariff for ten words to Australia was, and spoke to you on the assumption that we had agreed to a rate of £5 for twenty words, or £2 10s. for ten words, from Port Darwin; but I find that what we actually agreed to was £6 10s. for twenty, or £3 ss. for ten words. The manner in which this amount is made up is fully detailed in the tables annexed to the letter, which show the proportions that this Company would get, and what it would pay to the different administrations en route. As far, therefore, as I see, it would be utterly impossible for us to agree to any tariff at a £2 10s. rate from Sydney, as we should have to pay from it as follows:— Indo-European ... ... ... ... ... ... £18 0 Indian Government ... ... ... ... ... ... 040 Dutch Government ... ... ... ... ... ... 040 £1 16 0 which leaves 145.; and, as we should have to pay at least 10s. to the South Australian Government for transiting the Continent, you see the cable would get the large sum of 4s. only. I am, however, getting out figures, and will let you know what we may be prepared to take. With regard to the amounts of the subsidies you have offered, I was of opinion that we had asked only £20,000 from Mr. Todd, but I see that it was £25,000; so that I fancy the terms you mentioned would have to be considerably increased. I think my letter to Mr. Boothby is as full and complete as it is possible to be, as I have endeavoured to be frank with him and let him see my difficulty, and yet our desire to assist him if possible; and I hope it may show the same to yourself. I have spoken to Mr. Pender, and he proposes to call upon you at eleven o'clock on Thursday, as he has an engagement at one. Should you be at liberty at eleven, we will come. Should it not be convenient, however, please to let me know by telegraph. Yours very truly, T. G. Gloveb, The Hon. Julius Vogel, C.M.G. Managing Director. P.S.—I see that the terms you agreed to give to Siemens were 40s. from Australia to Singapore alone, for twenty words, which would be £1 for ten ; and as it would cost him at least 10s. to India and 4s. through India, and £1 Bs. beyond, roughly at the lowest calculation he could not give you a tariff of less than £3 25., which is practically what I agreed to with the South Australian Government.

lII.—As to New Zealand Cable.

Enclosure. Eastebn Extension Australasia and China Telegraph Compant (Limited) to Mr. Boothby. Sib — 66, Old Broad Street, London, E.C., 15th May, 1874. I have the pleasure to acknowledge your letter of the sth December. I have been prevented doing so before, as it was necessary to enter into negotiations with the several Governments and companies which form links in the chain of communication between Australia and England. As soon, however, as I had completed these negotiations, I telegraphed to you on the 20th March last, making a distinct proposal; and I have since sent two other messages, dated 31st March and 30th April, the one slightly modifying my first proposal, and the other being in reply to a reference from Mr. Todd. 2. I had hoped these messages would have been sufficiently explicit, and had not, therefore, supposed it necessary to write also; but as, from subsequent telegrams, lam informed that Mr. Todd

19

F.—4,

requires some modification of the original proposal, I have thought it better to write fully, so that you may be able to appreciate the desire of this Company to meet your wishes in a liberal and fair spirit. 3. Our proposal is briefly as follows: — This Company to receive a subsidy of £25,000 per annum, with a reduction of £100 for every 100 messages beyond 30,000 per annum, irrespective of length. In return for this, the Company are willing to introduce a 10-word rate between Port Darwin and the following places, at the tariffs mentioned, viz.:— Ten Words. Increment for additional word. Port Darwin and Madras 38s. ... 3s. 9d. „ Hong Kong 645. ... 6s. 4d. „ Java 245. ... - 2s. 4d. „ Singapore ... ... ... ... ... 345. ... 3s. 4d. „ England 655. ... 6s. 6d. In the above rates is included 4s. for the transit rate of the Dutch Government through Java* and in the Madras and English rates the terminal and transit rate of 4s. charged by the Government of India. If these sums are deducted from the figures above given, they will assimilate to those given in my original message of 20th March. 4. Annexed I beg to append a statement of the existing 20-word and the proposed 10-word rates, showing the amounts payable to the various companies and administrations en route, from which you will see the great reduction it is proposed to make. 5. The Dutch Government, I regret to say, will not make a proportionate decrease in their charge for a 10-word message, and their terms are so unfavourable that 1 have thought it better to pay them the present sum, irrespective of the length of the message, than to take their reduced rate for ten words, which would add greatly to the cost of messages of greater length. The Indian Government have liberally agreed to accept half their present charge in favour of a 10-word rate. 6. I had hoped that the Eastern and Indo-European Companies would have afforded us a similar concession, but they say that the rate of 235. would be so miserably small in comparison with the capital expended and the length of line traversed, that it would not pay them to do so. They have, therefore, added 55., and assimilated the transit rate to Australia to that paid for messages to Singapore. Had these companies been able to accept the lower late, it would have enabled me to reduce the rate between Englaud and Port Darwin to £3, which I had much wished to do. 7. Having thus briefly explained our proposal for the reduction of tariff, it would be well to make a few remarks upon Mr. Todd's letter of 4th January, which may facilitate your arriving at a conclusion, and enable you to see that this Company has no desire whatever to push a hard bargain, but is quite willing to meet you in as liberal a spirit as they can, having due regard to their shareholders and the great amount of capital which has been invested in a property which I think you will allow is of a very risky nature. 8. According to Mr. Todd, the number of single-rate messages for the twelve months ending 20th October, was 12,120. The [traffic,' however, was greatly inflated on the first opening of the line, and subsequently fell off, so that during the whole year of 1873 the total number of 20-word messages was only 11,048, the average daily number between Australia and England being only about 17. This traffic, you will allow, is miserably small, and it shows, I am sorry to say, no tendency towards expansion. Doubtless this in some measure may be attributed to the high tariff, but, as far as telegraphic experience has proved, an increase in the traffic has never yet borne a fair proportion to the decrease of tariff, so that in making any reduction there is but little hope of this Company benefiting itself to any appreciable extent: in fact, the reverse is much to be feared, and it is for this reason that we are obliged to ask for a subsidy. It will be evident to you that unless the ratio of increase in the number of messages is greater than the decrease in the tariff, no advantage accrues to the Company : that is to say, if the tariff is reduced one-half, and the number of messages is only doubled, the revenue remains the same, whereas the amount of work thrown on the Company is greatly increased, necessitating an addition to the staff, and considerably increased expenditure. 9. The present gross revenue derived from all sources over this Company's cable from Australia, is about £58,562, which, taking the capital of the Australian section at £660,000, and allowing one-half of that of the British Indian Extension Telegraph Company, £295,000, makes a total capital of £955,000, so that the revenue does not give a gross percentage of more than 6J per cent., from which have to be deducted the working expenses, and a fair percentage for reserve, so that, were the amalgamated Company dependent on Australian traffic alone, the return to the shareholders would be very small. 10. In the correspondence that has ensued, and from the tone of several articles in the Australian papers, I gather that the idea appears to exist in the colonies that this Company is anxious to take advantage of the monopoly it enjoys, in being the only line in existence, to keep up a high tariff, and to drive as hard a bargain as possible with the different Governments who propose to subsidize it. I do not think I can refute this idea better than by a comparison with an existing company, which is nearly analogous in point of position and distance from England. The circumstances attending the Atlantic companies, or the companies to the Mediterranean, are different, and I have, therefore, selected the West India and Panama Company, which connects all the British possessions in the West Indies with the parent country, the site of whose operations is at a distance, and which, moreover, is connected only through different independent companies and administrations. 11. I annex two tables, marked " C " and "D," a reference to which will, I think, compare most favourably in regard to this company's proposal. The West India and Panama Company enjoys a subsidy actually existent and in process of negotiation of about £20,000 annually, derived from the various islands en route. Its tariff from its most distant station at George Town, Demerara, to London is £5 14s. 7d. for ten words, and the distance traversed is 7,633 miles, of which 4,898 only are by cable. The rate charged, therefore, over the whole distance is at the proportion of Is. 6d. for ten words per 100 miles.

lII.—As to New Zealand Cable.

P.—4

20

m.—As to New Zealand Cable.

12. From table " D " it will be seen that this Company, in consideration of a subsidy of £25,000, propose to carry messages of ten words a distance of 11,682 miles, of which 9,582 are by cable, for a sum of £3 us., or at the rate of 7d. per 100 miles for ten words. Tlie comparison shows, therefore, greatly in favour of this Company, the total distance being one and a-half times as much, the proportion of cable being as two to one, while the charge proposed is less than one-half. 13. I fear you will find this letter rather lengthy, but I have been led on, even at the risk of prolixity, in the hope of making it as clear and comprehensive as I could, so that you might, if possible, be able to arrive at a decision on the subject. 14. I would only beg to add that this Company, as the pioneer to telegraphic communication with the colonies, is most anxious that the enterprise should be a success, which it is ready at all times to forward by every means in its power in the most liberal spirit. I have, &c, T. G-. Glotee, Colonel R.E., J. Boothby, Esq., Under Secretary, Adelaide. Managing Director.

Sub-Enclosure. A.—STATEMENT showing the existing Twenty-word Rate between Port Darwin and the following Places, with the Proportions paid to the various Companies and Administrations en route.

B. —STATEMENT showing the proposed Ten-word Rate between Port Darwin and the following Places, with the Proportions paid to the various Companies and Administrations en route.

C. —STATEMENT showing the Distance between London and Demerara, with Cost of Ten-word Messages.

Eastern or IndoEuropean Companies. Eastern Extension Company. Dutch Government. Indian Government. Total. iladras long Kong ava Singapore ... England £ s. d. £ s. 5 8 6 5 2 14 3 15 5 8 d. 6 6 0 6 6 £ a. d. 0 4 0 0 4 0 0 4 0 0 4 0 0 4 0 £ B. d. 0 8 0 £ S. 6 0 6 9 2 18 3 19 8 6 d. 6 6 0 6 6 2 6 0 0 8 0

Eastern and Indo-' European Companies. Eastern Extension Company. Dutch Government. Indian Government. Total. Per additional word. Madras ... long Kong lava Singapore England... £ 8. d. £ s. d. 1 10 0 3 0 0 10 0 1 10 0 19 0 £ 0 0 0 0 0 s. d. 4 0 4 0 4 0 4 0 4 0 £ 8. d. 0 4 0 £ s. 1 18 3 4 1 4 1 14 3 5 d. 0 0 0 0 0 £ s. d. 0 3 9 0 6 4 0 2 4 0 3 4 0 6 6 1 "s 0 0 4 0

Land Lines. Cable. zondon to Yalentia ralentia to New York ... few York to Florida ... 'lorida to Demerara 535 Miles. 800 ., 1,400 „ 2,170 Miles. 2,728" „ Total Miles Grand total, 7,633 Miles. 2,735 ,, 4,898 )> Tariff for 10 words between Demerara and London, £5 14s. 7d., or at the rate of Is. 6d. per 100 miles for 10 words.

21

E.—4

D.—STATEMENT showing the Distance between London and Port Darwin, with Cost of Proposed Ten-word Message.

lII.—As to New Zealand Cable.

No. 2. Eastebn Extension Australasia, and China Telegeaph Company (Limited) to the Hon. J. Vooel. Sib,— 66, Old Broad Street, London, 8.C., 23rd April, 1875. Having carefully considered the propositions made by you, in our conversation yesterday, with reference to the cable between New Zealand and Australia, I regret that the terms you mentioned are so unfavourable to this Company, involving as they would a large annual loss, that I am unable to recommend them for acceptance. I must, therefore, adhere to the terms of which Colonel Glover sent you a copy on the 19th instant. I am, however, as I stated to you, most anxious to facilitate an agreement that will be both fair to my shareholders and advantageous to your Government. "With this view, lam prepared to agree to a reduced tariff between New Zealand and Australia of 7s. 6d. for ten words, with a proportionate increment for each additional word, on receipt of an annual subsidy of £10,000 for ten years. The above tariff is the cable charge only, and does not include those of the Governments on either end of the cable. "With regard to the tariff to England, the Company have already agreed to a proposal of several of the colonies in Australia to reduce the present tariff to £3 ss. for ten words, with a proportionate charge for each additional word, on receipt of an annual subsidy of £25,000 per annum ; but this can only bo done on the joint and united action of the several Governments, or by a guarantee from one or more of them of the payment of the whole amount. It will be impossible to allow any one Government to enter into this arrangement on payment of its proportion, as it would admit of the other nonadhei'ing colonies taking advantage of the reduced tariff to the detriment of the Company. The Company would undertake to lay this cable within twelve months from the date of signing the agreement, unless prevented by accident or other cause over which they have no control. During this interval, there will be ample time for the colonies to agree on their policy as to the payment of this subsidy, so that the New Zealand cable might be opened with the introduction of the reduced tariff. As, however, the Conference of all the Telegraphic Administrations takes place in June next at St. Petersburg, when it is the custom to lay down the tariffs which will be in force during the existence of the Convention, it would be a great object if we could ascertain in time for this meeting whether the several Australian colonies would agree to this subsidy or not, as we should then be prepared to propose the reduced rates, so that we might thereby anticipate the time of their introduction. I have, &c, John Pendeb, The Hon. Julius Vogel, C.M.G., Premier of New Zealand. Chairman.

No. 3. Statement of Teems referred to in the preceding Letter. The Company are willing to lay a cable between New Zealand and Australia, without guarantee or subsidy, subject to the following conditions :— 1. That the Government of New Zealand agree not to subsidize or guarantee, or otherwise promote or foster, any opposition scheme, nor to give any such scheme any advantages directly or indirectly. 2. In case an opposition cable should be laid, the undirected messages to be forwarded by this Company's cable so long as the tariffs are equal by either route. 8. That the Company be at liberty to land, either in Victoria or New South "Wales, at their option [giving preference to that colony which will facilitate the Company's messages being transmitted throughout by the Company's own lines without a charge for the via]. 4. That land be granted for stations, offices, cable-houses, and store-houses necessary for the Company's operations. 5. That the Government undertake to make and maintain necessary connection between the Company's terminus and their own system.

Land Lines. Cable. jondon to Porthcurno ... 'orthcurno to Malta tfalta to Alexandria Llexandria to Suez !uez to Bombay 5ombay to Madras Madras to Singapore 300 Miles. 2,430 Miles. 818 „ 200 „ 3,007 „ 800 „ Grand total, 11,682 Miles. 1,679 „ ava Lustralian Cable 800 „ 1,648 „ Total Miles 2,100 >> 9,582 » Tariff for 10 words between London and Port Di irwin, £3 5s., or at the rate of 7d. >er 100 miles for 10 words.

F.—4,

22

lII.— As to New Zealand Cable.

6. That the Company's ship be free of port dues, and be allowed the use of the Government docks and stores for repair. That all cable stores and materials be admitted into the colony free of Customs duty. That the Company be free from income tax. The Company do not see their way at present for a cable to the northward of New Zealand being remunerative, and therefore, in the absence of an adequate subsidy, they are unable to entertain the proposal for laying the cable to New Caledonia and Fiji.

No. 4.

Easteen Extension Austealasia and China Telegbaph Company (Limited) to Mr. Beee. My deab Beee,— 66, Old Broad Street, London, E.C., 26th April, 1875. As the result of the conference which has taken place here this afternoon between you, Mr. Pender, Sir James Anderson, Mr. Wells, and myself, I am prepared to accept the carrying out of the proposed cable connection between Australia and New Zealand on the following terms, viz.:— 1. The New Zealand Government to pay us an annual subsidy of £7,500, payable half-yearly, for ten years from the date of opening of the cable. 2. The tariff to be 7s. 6d. per message of ten words, and 9d. for every additional word. 3. The tariff to be reduced to ss. for ten words, and 6d. for every additional word, whenever the average number of messages during the preceding six months has amounted to two hundred per day. 4. Exemption from Customs dues and taxation, as mentioned in clause 6 of our original proposition. i 5. Undirected messages to be sent by our lines for a period of twenty years, similar to the provisions of the agreement between the Anglo-American Company and the English" Post Office. 6. That land be granted for stations, &c, as per clause 4 of our original propositions. 7. That Government make necessary connections between this Company's terminus and their own system. We are further prepared to reduce the tariff between Port Darwin and London to £3 per message of ten words, and 6s. for every additional word, in consideration of a subsidy from all or any of the colonies interested, amounting together to a sum of £20,000, payable half-yearly: this arrangement to be in foroe for a period of ten years. Tours faithfully, T. G. Gloves.

No. 5. Messrs. J. Mackeell and Co. to the Hon. Sir J. Vogel. Deae Sib, — 21, Cannon Street, London, 10th July, 1875. We obtained yesterday from Messrs. Ereshfields.just at the last moment, and in time for the mail, a copy of the report of Messrs. Clark, Porde, and Co. to the Company, on the cable proposed to be constructed. Sir Daniel Cooper requested that a copy might go to the Colonial Secretary at Sydney, and we therefore thought it right to forward a copy to the Colonial Secretary at Wellington, which we did. We send you a copy enclosed, together with copy of a letter from Messrs. Freshfield to us, and copy of the letter, therein referred to, from the Secretary to the Company to them. We prepared and forwarded to Mr. Eox, to send out to New Zealand, a report upon the arrangement made with the Telegraph Company, and sent a copy to Sir Daniel Cooper for him to send out to Sydney, which he did yesterday. Shall we send you a copy thereof? We have, &c., The Hon. Sir Julius Vogel, K.C.M.G. John Mackeell and Co.

See F —6c, 1875, No. 1.

Enclosure. Messrs. Fbeshflelds and "Williams to Messrs. J. Mackbell and Co. Deab Sies,— 5, Bank Buildings, E.C., 9th July, 1875. ¥c beg to enclose a copy of the report made by Messrs. Clark, Forde, and Co., the engineers of the Eastern Extension Australasia and China Telegraph Company (Limited), to the Directors of that Company, regarding the sufficiency of the type of cable selected for the line between Australia and New Zealand. We enclose, also, the copy of the letter from the Secretary of tho Company which accompanied it, in which you will find Bet out the resolution of the Board adopting the type. We beg to add, that we have prepared a contract between the Eastern Extension, &c, Company, and the Construction Company, for the manufacture and laying of this cable ; and this will be in the hands of the Construction Company and their solicitors this afternoon, or, at latest, the first thing to-morrow morning. We shall be glad if, at your early convenience, you will, as a matter of form, obtain the approval of your constituents to the type of cable selected by the Company, as arranged. When the contract with the Construction Company ia completed, we will produce it to you for their inspection. We are, &c, Messrs. J. Mackrell and Co. Eeeshfields and Williams.

23

E.-4

Sub-Enclosure 1. Messrs. Clabk, Foede, and Co. to Easteew Extension Company. Eastern Extension, Sfc, Telegraph Company. — New Zealand Cable. Gentlemen, — 7, Pope's Head Alley, Lombard Street, Ist July, 1875. We have made several experiments on the new form of cable proposed by the Telegraph Construction and Maintenance Company to be laid between Australia and New Zealand; and, as we understand from you that time preases, we hasten to give you the benefit of our opinion, so far as it goes, up to the present time. We consider that the cable in question has much to recommend it as an economical form of deepsea cable for depths exceeding 800 or 1,000 fathoms, and we have no doubt that it is one that will probably be much used in the future, where economy is essential. In some respects, especially as regards durability of the outer covering, it is superior to the present type of Atlantic cable, which is in our opinion the best type of deep-sea cable up to this time adopted. There can be no doubt it can be paid out and also picked up in depths of 2,000 to 2,600 fathoms (the maximum depth indicated between Sydney and New Zealand), and that both operations could be performed with about the same facility as with the type of cable hitherto in use, seeing that each cable will support about the same length of itself in water—about 6,500 fathoms. This new form of cable is rather cheaper when laid, and, therefore, having less material, it has not quite the same absolute strength as the ordinary type of cable. There will, therefore, be necessarily slightly more risk in manipulating this cable in deep water than those of the Falmouth and Gibraltar or Brazilian patterns. On your system of lines there is no type of cable in any way similar to the proposed new form. Upon the whole, we consider the latter as a deep-sea cable superior in mechanical construction to the line laid between Madras and Singapore, which is, so far as we can judge from the charts, the deepest section in your system. We can, therefore, in the terms of your resolution, report that the proposed new form of cable is in every respect as suitable as the present cables of your Company. The actual breaking strain of the type originally recommended by us is 108 cwt., and that of the projected new type between 90 cwt. and 100 cwt. ; but as it is a lighter cable, and has a smoother and smaller exterior surface, the diminished friction will in a great measure compensate for the difference in absolute strength, and it is at the same time likely to prove a more durable form of cable. The form of cable which has been submitted to us is very scientifically designed, and gives more value for the money than the form hitherto in use. At the same time, it requires a very careful selection of materials to obtain the full benefit of the mode of construction, and without this careful selection it would not compare so well to the forms in ordinary use. We remain, &c, The Directors of the Eastern Extension, &c, Telegraph . Clack, Fobde, and Co. Company, GG, Old Broad Street. Sub-Enclosure 2. Mr. Lyons to Messrs. Feeshfields and Williams. The Eastern Extension, &c, Company, 66, Old Broad Street, Deae Sibs— Bth July, 1875. I beg herewith to enclose you two copies of Messrs. Clark, Forde, and Co.'s letter, dated July Ist, with report on the new type of cable, which you are at liberty to hand to Messrs. Mackrell. Messrs. Clark, Forde, and Co.'s letter was submitted to the Board on the 2nd instant; and, their report being considered satisfactory, it was " Eesolved : That a contract be made with the Telegraph Construction and Maintenance Company, on the basis of the heads of agreement adopted by the Board at a meeting held on the 4th June ; and that the engineers be instructed to give special attention to the manufacture of the cable, and also to the materials used in the manufacture of the same." Tours, &c, Messrs. Freshfields and Williams. G-eoeqe Lyons, Secretary.

lII.—As to New Zealand Cable.

No. 6. Messrs. Clack, Fobde, and Co. to the Hon. Sir J. Vogel. 7, Pope's Head Alley, Lombard Street, E.C., 28th July, 1875. Eastern Extension, Sfc, Telegraph Company. — New Zealand Gable. Sir — We have received a letter, dated the 27th instant, from Messrs. Mackrell and Co., in which they state you would like to have a letter from us expressing our opinion with reference to the proposed new type of cable intended to be laid between Australia and New Zealand. We therefore, with the permission of the Eastern Extension, &c, Telegraph Company, beg to inform you that the cable in question has been subjected by us to a careful series of tests, which were very satisfactory. We consider the new form of cable is of a good and suitable construction, and suitable to the position where it is proposed to be laid, and one we should not hesitate to recommend being laid across the Atlantic; and we consider it, if anything, a more durable cable than the existing Atlantic cables.

P.—4,

24

As the proposed contract with the Telegraph Construction and Maintenance Company has nat yet been finally signed and sealed, we are for the present precluded by the latter Company from divulging their secret as to its mechanical construction, but this will appear in detail in the contract when signed. We have the permission of our Company to make this communication to you in your official capacity. We are, &c, The Hon. Sir Julius Vogel, K.C.M.G-. Clare, Forde, and Co.

lII.—As to New Zealand Cable.

See also P.—6c, 1875, No. 2.

No. 7. CONTRACT FOE MAKING AND LAYING THE CABLE. Aeticxes of Contract made the 30th day of July, 1875, between the Eastern Extension Atjstbalasia and China Telegraph Company (Limited), hereinafter called the Company, of the one part, and the Telegraph Construction and Maintenance Company (Limited), hereinafter called the Contractors, of the other part. Whereby it is agreed as follows: — 1. The Contractors shall, subject to the due performance by the Company of the agreements and conditions hereinafter contained, and on their parts to be observed and performed, and for the consideration and upon the terms hereinafter expressed, manufacture for the Company a telegraphic cable of the total length of 1,370 nautical miles, of the types mentioned and described in the specification hereunto annexed. 2. The cable shall be manufactured and constructed throughout of thoroughly good materials and workmanship, and in all respects in strict accordance with the specification hereunto annexed (which is to be deemed part of this contract), to the reasonable satisfaction of the Engineer of the Company (hereinafter called the Engineer), hut subject to arbitration as hereinafter provided. 3. After the cable shall have been made and tested by the Engineer, the Contractors shall cause the same to be coiled on board a suitable steamship or ships, and shall send the said cable to sea, and by means of apparatus and fittings to be approved by the Engineer, or, in case of difference between him and the Contractors, by Mr. John Perm, and under charge of officers of approved skill and experience, use their best endeavours to lay the same between Australia and New Zealand on or before the 30th April, 1876. 4. The terminal point of the cable in New Zealand shall be at such part of the coast of Blind Bay or Golden Bay as shall be determined by the engineers of the Company and the Contractors before the departure of the expedition, and the terminal point of the cable in Australia shall be at such part of the coast at or near Sydney as the said engineers shall so determine. At each terminal point the Company shall, before the arrival of the vessel or vessels containing the cable, erect a suitable cablehouse; and the Contractors shall, to the satisfaction of the Engineer, supply each cable-house with proper instruments for the testiDg of the cable, until the expiration of the thirty days mentioned in Article 15 : such instruments to remain the property of the Contractors. 5. Previous to the departure of the expedition, the Engineer and the Contractors shall agree upon the course over which the cable shall be laid, and the positions in which the various types of cable shall be placed, and such agreement shall (unless the Engineer consents to alteration thereof) be adhered to by the Contractors as nearly as practicable. 6. It is hereby expressly agreed and declared that after the said cable shall have been manufactured and coiled on board ship ready for sailing, and shall have been duly tested by the Engineer and found to be in accordance with this contract, and the apparatus and fittings of the said ship or ships have been approved in writing by the Engineer or the said John Perm as aforesaid, the Contractors shall not be responsible in damages for any injury or breakage occurring to or loss of the cable or any part thereof, or for failure or delay in laying the same, unless the same arise from the culpable neglect or default of the Contractors or their agents: the true intent and meaning of these presents being that the Contractors shall be bound to take all reasonable precautions and use their best endeavours and make every reasonable effort in accordance with this contract to lay the whole line of cable between the points aforesaid, in good working order, in accordance with the said specification, so that the same shall give good and efficient electrical connection between the points aforesaid, but that they shall not be responsible in damages for failure or delay if bonafide using their best endeavours as aforesaid. 7. Every facility, including batteries for testing, shall be afforded to the Engineer and his assistants to test every part of the cable during manufacture, shipment, and transport. During the laying of the cable the testing shall be in the hands of the Contractors, but shall be open to the continual inspection of the Engineer or his assistants on board ship and on shore. The principle of testing shall be the same as adopted in laying the Atlantic Cable of 1874, or any improvement that may be mutually agreed upon. The Engineer shall have the right of inspecting the charts and observations made during the laying of the cable, and also of having communications on the business of laying the cable forwarded from the ship to the cable-house on shore, and vice versa, through the cable, at reasonable times, while the same is being laid. 8. The Contractors shall provide victualling and accommodation for the Engineer and his staff (not exceeding in the whole five persons) on board the vessel or vessels during the laying of the cable, and until the return of the expedition. 9. The Company shall obtain, at their own expense, all wayleaves and Government and other authorities required for landing the cable and connecting the same with the cable-houses, and the Company shall procure possession of any land required for the purposes of this contract. 10. The Contractors shall connect the shore ends with the cable-houses to be provided by the Company at or near the landing places, in the most efficient manner, so that there shall be good and efficient electrical telegraphic connection between the two cable-houses.

25

l\-4

11. The Contractors shall effect insurances on the cable in the sum of £176 per mile, against fire, '. and river and sea risks, until laid, by policies similar in form to those on the British Indian Telegraph Cable, and shall deliver such policies to the Company, to the full amount of the payments from time to time made to the Contractors. 12. The Company shall pay to the Contractors, for the works and matters hereinbefore undertaken by the Contractors under this contract, and for the transfer of the ship hereinafter referred to, the total sum or contract price of £300,000, but subject to such reduction as hereinafter mentioned. The said contract price shall be paid at the times and in manner following, that is to say:— (a.) Thirty thousand pounds upon the execution of this contract. (b.) One hundred and eighty-five thousand pounds, by weekly payments, as mentioned in Article 13. (c.) Twenty-five thousand pounds upon the certificate of the Engineer of the shipment of the whole of the cable, and that the condition thereof is in accordance with this contract. (d.) Fifteen thousand pounds on the certificate of the successful laying and completion of the cable in accordance with this contract. (c.) Fifteen thousand pounds upon the transfer to the Company of the steamship " Edinburgh," in manner hereinafter provided. (f.) And thirty thousand pounds, the balance of the contract price (subject to reduction as mentioned in Article 16), upon the Engineer's certificate mentioned in Article 15. 13. The payments in respect of the sum of £185,000 mentioned in Article 12 (paragraph B), shall be subject to the following regulations, that is to say, the Contractors shall deliver, at the principal office of the Company, a certificate signed by the Engineer and the Contractors' engineer or electrician, stating the length of the cable made up to the day of the date of the certificate, and certifying that the same is in perfect working order, and in all respects up to the conditions required by these presents; and on every Monday morning after that day, until the manufacture of the cable shall be completed, the Contractors may deliver a like certificate, stating the length of the cable made during the week ending on the Saturday preceding, and also the total length manufactured up to the same date, and that the same total length of cable is in perfect working order, and in all respects up to the condition required by these presents; and on receipt of the above certificates respectively the Company shall, not later than the Saturday next following every Monday after the date on which the certificate is duly delivered as aforesaid, pay over to the Contractors or their agent authorized in writing to call for the same, at the office of the Company, in respect of the said sum of £185,000, the sum of £135 per mile for every nautical mile of cable manufactured during the period to which the certficate bears reference. The balance of the said sum of £185,000 shall be paid upon the certificate of the Engineer of the completion of the manufacture of the said cable. 14. The Engineer of the Company accompanying the expedition shall examine and test the line when laid, and, as soon as practicable thereafter, telegraph to Messrs. Clark, Forde, and Co., in London, and also write by the next post to them, the results of his examination and testing, and shall forthwith deliver a copy of the telegram and letter to the Contractors' agent; and, upon the receipt by the Engineer in England of such telegram or letter, he shall give his certificate that the cable has been successfully laid and completed in accordance with this contract, or shall state in writing his reasons for not giving such certificate, and shall forward a duplicate of such certificate or statement in writing, as the case may be, to the Company and the Contractors respectively. 15. The £30,000 mentioned in Article 12, paragraph F, shall (subject to the provisions of Article 16) be paid to the Contractors, upon the certificate of the Engineer in England that, for thirty consecutive days after the completion of the laying of the cable, the same has continued in good electrical condition ; and the provisions of Article 14 shall (mutatis mutandis) apply to the examination and testing and certifying of the condition of the cable during the said thirty days. 16. If the Contractors successfully complete the contract, and obtain the certificate referred to in Article 15, without disaster, delay, or accident occasioning damage to the Contractors to the amount of £10,000, the sum of £30,000, mentioned in Article 12, paragraph F, shall be reduced to £20,000; and if any such disaster, delay, or accident shall occur, but shall occasion damage to an amount less than £10,000, then the difference between the amount of the damage so occasioned and £10,000 shall be deducted, from the said sum of £300,000 and retained by the Company. 17. Any surplus cable remaining out of the lengths specified, after the completion of the contract, shall belong to the Company, and shall be delivered at Sydney or New Zealand as the Company or their Engineer shall, before the sailing of the vessels from England, direct. 18. The Company shall, subject to the directions of the Engineer, be at liberty to work the cable from the time when it is laid until finally certified under Article 15, and the receipts from working the same shall belong to the Company, who shall bear the expense of working; but the Contractors shall, until the final certificate is given, have full liberty to inspect and examine the line and its connections, and the working and testing thereof, and to test the same at reasonable times, under the supervision of the Engineer. 19. The Engineer for the purposes of this contract shall be Josiah Latimer Clark, Esquire, Henry Charles Forde, Esquire, Charles Hockin, Esquire, and Herbert Arnaud Taylor, Esquire, or any one or more of them acting in the name of their firm of Clark, Forde, and Co.; and several members of the firm may act as Engineer at the same time in different places. The Engineer in England shall, subject as hereinbefore provided, duly sign and give every certificate to which the Contractors are entitled under this contract when the provisions of the contract upon the performance of which the Contractors are entitled to the same respectively shall have been performed. 20. The Contractors shall, after the Engineer's certificate referred to in Article 15, transfer to the Company, for a nominal price, and as the Company's absolute property, the steamship " Edinburgh " (which is intended to be employed by the Contractors for the purposes of this contract), together with her tanks, machinery, fittings, and stores ; and shall deliver the said vessel at the place indicated, under Article 17, for the delivery of surplus cable, as soon as practicable after the expiration of the 4—F. 4

lII.—As to New Zealand Cable. ■

F.—4,

26

thirty days mentioned in the said certificate. The Contractors engage that before leaving England the Baid ship shall be placed in efficient order and condition as a cable-repairing ship, well found in all requisite tanks, fittings, machinery, and stores, to the reasonable satisfaction of a competent surveyor, to be appointed by the Company for the purpose, but subject to arbitration in case of difference. The Contractors shall make good any damages to the said ship after leaving England, and deliver her to the Company in good order and condition, fair wear and tear and use of stores during her employment for the purposes of this contract being allowed. 21. If any dispute or difference shall arise between the Company or their Engineer and the Contractors as to the meaning of these presents, or anything herein contained, or with reference to the manufacture and testing, shipment or laying, of the cable, or any other matter or thing to be done hereunder, then and in every such case the matter in difference shall be referred to the arbitration of some person to be appointed by the President for the time being of the Institution of Civil Engineers, at the instance of the party first applying for the appointment; and any arbitrator so appointed shall have the same powers in relation to such reference as an arbitrator appointed under " The Railway Companies Arbitration Act, 1859," has in relation to a reference under that Act, and the arbitration and award shall have all the legal effect and consequence of arbitration and award under the lastmentioned Act. 22. This contract may from time to time be varied by agreement between the Boards of the respective Companies parties hereto. The Specification above eefebeed to. The following are the lengths and types of cable that are to be furnished by the Contractors, viz.:— Knots. Type A. Shore End ... ... ... ... ... 10 „ B. Intermediate ... ~. ... ... „„ 59 „ C. Main Cable, No. 1 ... ... ... ... 300 „ C l. Main Cable, No. 2 1,001 Total ... ... ... 1,370 Knots. COEE. (a.) The conductor to be a strand of seven copper wires, weighing 107 lbs. per nautical mile, or within 5 per cent, thereof, and the resistance at 75° Fahrenheit shall not be more than 1213 ohms. (b.) The conductor is to be insulated with three coatings of gutta percha of improved inductive capacity, prepared according to Mr. Willoughby Smith's system, alternating with three coatings of Chatterton's compound, and to weigh 140 lbs. per knot, or within 5 per cent, thereof. The resistance of the completed core to be not less than 150 megohms per nautical mile when tested at a temperature of 75° Fahrenheit, after twenty-four hours' immersion in water fourteen days after manufacture. (c.) The core to be covered with a good and sufficient serving of jute-yarn, steeped in cutch or other preservative mixture, and applied wet. OUTER COVERINGS. (d.) Type A (Shore End). —The served core to be covered with ten galvanized BB iron wires, each to gauge No. 00 B.W.G-., equal to -375 of an inch when galvanized, or within 2^ per cent, thereof. (c.) Type B (Intermediate). —The served core to be covered with ten galvanized BB iron wires, each wire to gauge No. 6 B.W.G-., equal to '200 of an inch when galvanized, or within 2| per cent, thereof. (f.) Type C (Main Cable, No. 1). —The served core to be covered with fifteen galvanized homogeneous iron wires, the diameter of each wire to be No. 13 B.W.Gr., equal to '099 of an inch when galvanized, or within 2\ per cent, thereof, and to bear a breaking strain of not less than 53 tons per square inch, with an elongation of 1 per cent. (g.) Type C l (Main Cable, No. 2). —The served core to be covered with nine galvanized homogeneous iron wires and nine Manilla yarns in alternate order. The homogeneous wires to be No. 13 8.W.G., equal to '099 of an inch when galvanized, or within 2\ per cent, thereof, and to bear a breaking strain of not less than 52 tons per square inch, with an elongation of not less than 3 per cent. Outside Serving. The cable C l, manufactured as above, to be covered with two layers of jute-yarn, laid on in opposite directions, and two coatings of Clark's compound. (h.) The cables A, B, and C, manufactured as above, are then to be covered with two layers of jute-yarn, laid on in opposite directions, and three coatings of Clark's compound, the first coating being cool, and put on next the iron wires. (i.) The cable, when completed, shall be coiled in suitable water-tight tanks, and be kept, as far as practicable, constantly under water. GENERAL CLAUSES. (k.) The standard of insulation for the completed cable with either current, before being submerged, to be not less than 250 megohms per nautical mile, when reduced to a temperature of 75° Fahrenheit after five minutes' electrification: the tests to be taken at the actual natural temperature, and to be reduced by calculation to the standard specified. (l.) The completed cable shall be coiled on board ship in water-tight tanks, and be kept, as far as practicable, under water until submerged. (m.) The electrical condition of the cable when laid shall be such as, having regard to its previous condition, and making due allowance for the mean actual temperature of the water, as shown by the resistance of the conductor, to give no good grounds for believing that any fault exists in the insulator or conductor.

lII.—As to New Zealand Cable.

27

£.—4

In witness whereof the said parties hereto hare caused their respective common seals to be hereunto affixed, the day and year first written. The common seal of the Eastern Extension Australasia yj^^^^z^ and China Telegraph Company (Limited) was affixed /7ih hereto in the presence of //Common seaiof \\ JOHN PeNDEB, ///the Eastern Erten-\\\ -,-, . ' 1| tion Australasia and I Chairman. lU China Telegraph ll] Geoege Lyons, \ 5°S y JJJ Secretary. -?&' The common seal of the Telegraph Construction and >^ —=5^ Maintenance Company (Limited) was hereto affixed /^Comnion Sea^V in the presence of //of theTeie^aphA GW fllvpnTTT I Construction and I . W. UAMPBEH,, II Maintenance /J Director. V, Company I W. Shuteb, \™£ZLjr Secretary. —

lII.— As to New Zealand Cable.

No. 8. Memobandtjm. It is hereby agreed that the period of fourteen days in Article 3 of the agreement dated 24th of June, 1875 (a print of which is hereunto annexed),* shall be read and construed as if the 30th of July, 1875, were in lieu thereof therein inserted; and that the specification for the cable contained in the contract dated the 30th of July, 1875 (a print of which is hereunto annexed), shall be the specification for the cable contracted by the said agreement to be laid; and that the terminal point of the cable in New Zealand shall be in that part of Blind Bay there known as Wakapuaka Bay, and that the New South Wales end of the submarine portion of the cable may be laid in Botany Bay: Provided that this stipulation shall not relieve the Eastern Extension Australasia and China Telegraph Company of their obligation to carry the cable to the terminal point agreed upon there, viz., the telegraph station at Sydney; and that any agreement which may be come to between the Boards of the respective Companies, parties to the said agreement of the 30th of July, 1875, under clause 22 of the said contract of that date, shall not be binding upon the Governors of the Colonies of New Zealand and New South Wales, or either of them, without their written assent. In witness whereof, Sir Julius Vogel has signed this Memorandum in the name and on behalf of George Augustus Constantine, Marquis of Normanby; and Sir Daniel Cooper has signed the same in the name and on behalf of Sir Hercules Robinson; and the Eastern Extension Australasia and China Telegraph Company (Limited) have hereunto affixed their common seal, this sixth day of September, 1875. The common seal of the Eastern Extension Australasia j^^^^^S. and China Telegraph Company (Limited) was affixed y^f the^sfer^V hereto in the presence of I ° Extension™ Tmrw TVIsmTTTJ I Australasia and I dOHlt rENDEB, l\ China Telegraph/I Chairman. \V Company, JJ Geoege Lyons, >^Limite^r Secretary. Duplicate of the above, signed on behalf of His Excellency the Governor of New Zealand by the Hon. Sir Julius Vogel, K.C.M.G., and on behalf of His Excellency the Governor of New South Wales by Sir Daniel Cooper, Bart., and handed over to the Eastern Extension Australasia and China Telegraph Company (Limited), in exchange for the above.

No. 9. \ The Hon. B. H. Meade to the Hon. Sir J. Vogei. Sie^ Downing Street, 16th August, 1875. "With reference to my letter of the 19th ultimo, enclosing copy of one from the Board of 5ee1?.— 6d.,1875. Treasury relating to the contract with the Eastern Extension Australasia and China Telegraph Company, for the laying of a submarine cable between Sydney and New Zealand, I am directed by the Earl of Carnarvon to transmit to you, for your information and for any observations you may wish to offer, a copy of a letter from the General Post Office, to which department your communication of June last was also referred. I am to state that a similar letter has been addressed to Sir Daniel Cooper. I have, &c, Sir Julius Vogel, K.C.M.G-. R. H. Meade. * For Sir J. Vogel's letter to Hon. D. Pollen, as to the progress of the negotiations, see F.— 6a., 1875. „ Articles of Agreement, see F. —6b., 1875. „ Synopsis of Agreement, see F.—6c, 1875.

F.—4.

28

Enclosure. The Geneeal Post Office to the Colonial Office. Sib, — General Post Office, London, sth August, 1875. I am directed by the Postmaster-General to acknowledge the receipt of your letter of the 7th ultimo, transmitting for his Lordship's consideration a copy of a letter which Sir J. Vogel and Sir D. Cooper, as representatives of New Zealand and New South Wales, have addressed to Lord Carnarvon in regard to a contract which they have negotiated with the Eastern Extension Australasia and China Telegraph Company, for the construction and laying of a submarine cable between Sydney and some point on the north or north-west coast of the Middle Island of New Zealand. Under that contract, provision is made for the reduction of the present high rates charged for messages between Australia (Port Darwin) and this country, contingent on the Company receiving a subsidy of £20,000 a year for a term often years, towards which Sir J. Vogel and Sir D. Cooper trust the Imperial Government will contribute a sum of £3,000 a year, the remaining sum of £17,000 a year being made,up by the Australian colonies and New Zealand. Since the receipt of your letter, the Treasury have forwarded to this Department a copy of the letter which they have addressed to Lord Carnarvon, which disposes of the question of any portion of the proposed subsidy being contributed out of Imperial funds. Still, as his Lordship asks to be furnished with the views of this Department on the subject, Lord John Manners thinks it right to offer some remarks upon the amount of the subsidy which the Governors of New Zealand and New South Wales have agreed to pay for a reduction of tariff on messages between this country and the Australian colonies, and between those colonies and Java and India ; because, so far as the information possessed by this Department goes, it appears to be large as compared with the benefits it is intended to confer. From the inquiries which have been made, it appears that, during the six months ended the 30th ultimo, the number of Australian messages of twenty words, exclusive of those collected and delivered from the office of the Eastern Telegraph Company, was 748|, or say 1,500 a year. It cannot be stated how many messages in addition the Eastern Telegraph Company collected at and delivered from their own office; but as the Department collects and delivers all country messages which pass through that Company's cables, the number of them would probably not exceed the above number, and this would bring the total number of telegrams comprising the Australian traffic to 3,000 a year. Under the present tariff between this country and Port Darwin, namely £8 6s. 6d. for twenty words, the charge on these messages would amount to about £25,000 a year; whilst under the proposed tariff, £3 for ten words, and 6s. for each additional word (which would bring the cost of a message of twenty words to £6), the charge would amount to £18,000 a year, thus showing a reduction of £7,000 a-year only. It is true that there is to be a corresponding reduction in messages between Australia and Java and India, and that some advantage w rould be gained by a ten-word instead of a twenty-word tariff; but it seems scarcely probable that the traffic between those countries is so large as between this country and the Australian colonies, and the Telegraph Company will moreover doubtless reap some advantage from the general increase of traffic which appears invariably to follow any reduction of tariff. On the whole, therefore, the amount of the subsidy appears, as already stated, to be large. I am also to point out that, under the terms of the new Telegraph Convention which has just been signed at St. Petersburg, there will be a word-tariff for all extra-European messages, a change which will tell still more in favour of the subsidized Telegraph Company, and besides will necessitate some alteration in the terms of the contract. I have, &c, To the Colonial Office. John Tilley.

lII.—As to New Zealand Cable.

SeeF.— 6d., 1875,

No. 10. Sir J. Vogel and Sir D. Coopeb to the Earl of Cabnabvon. Mt Loed, — London, 29th September, 1875. We have the honor to acknowledge the receipt of a letter, dated August 16th, from the Hon. Mr. Meade, enclosing, by your Lordship's directions, a copy of one from Mr. Tilley, of the General Post Office, respecting a subsidy it is contemplated to pay to the Eastern Extension Australasia and China Telegraph Company (Limited), as a condition of their reducing the tariff for messages between Australia and Great Britain. 2. Mr. Tilley has evidently been led into error by returns which have been supplied to him by the Telegraph Department of the Post Office. The number of telegrams to or from Australia forwarded through the Postal Telegraph Department is no indication whatever of the traffic between Australia and this country. The Indo-European Company and the Eastern Extension Company receive messages direct from Australia and deliver them, and they forward direct all messages deposited at their offices in London. Of such messages the Postal Telegraph Department has no knowledge; and it is, therefore, not to be wondered at that, although Mr. Tilley doubled the number of Australian messages passing through the local offices here, he is still altogether incorrect in his estimate of the amount of business affected by the subsidy question. Instead of 3,000 messages, as set down by Mr. Tilley, the actual number between Port Darwin and Europe, during 1874, was 5,781, to which has to be added 2,029 for the messages between Port Darwin, Java, India, Hongkong, and Saigon, making a total of 7,810 for the year. Mr. Tilley further assumes that the messages sent and received average 20 words each, whereas the 5,781 messages averaged 32 words each, the average of the remaining 2,029 being about 23 words each. Thus, instead of 60,000 words, which Mr. Tilley assumes to represent the basis of calculations as to a subsidy, the number of words included in the messages between Port Darwin and Europe, during 1874, was 153.142, while the other 2,029 messages represented 47,149 words, or a total of 230,291. It

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is not surprising, therefore, that instead of £7,000 a year, which Mr. Tilley estimates as the loss to the Eastern Extension Company from the reduced rates for which the contemplated subsidy would be paid, that Company's actual loss, upon the basis of the traffic of 1874, would be (according to a statement which we have the honor to append) £25,181. 3. Concerning the alterations consequent upon the Telegraph Convention lately signed at St. Petersburg, we do not understand that it forces upon extra-European lines the use of a word-rate, although Mr. Tilley is, we believe, correct in assuming that the Eastern Extension Company will adopt such a rate. But it does not follow that the rate per word will be a twentieth part of the present charge for twenty words: on the contrary, we understand that all the companies and Governments are making the rate per word proportionately higher than at present. The Eastern Extension Company contemplate, we understand, the rate of 9s. a word to Port Darwin, instead of Bs. 4d. which is within a fraction of a twentieth part of the present charge for twenty words. The rate proposed by ,the agreement with the Company is equal to 6s. a word ; so that, assuming 9s. to be the rate the Company will adopt, and that they will be willing to accept the subsidy on the terms of the agreement, the loss to the Company, on the basis of the 1874 traffic, would very largely exceed the proposed subsidy of £20,000, and would only be recouped to them by extra business. We have advisedly written "assuming" that the Company "will be willing to accept the subsidy;" for there is a clause in the agreement which enables them to refuse to accept it; and it has been stated to us that they are doubtful whether it would not pay them better to refuse the subsidy. 4. We have no doubt Mr. Tilley will recognize the error into which he has been led by the partial information supplied to him. We have, &c, Jtrntrs Vogel. The Eight Hon. the Earl of Carnarvon, &c. Daniel Coopee.

lII.—As to New Zealand Cable.

Enclosure. AUSTRALIAN TRAFFIC, YEAR 1874.

No. 11. Mr. Malcolm to the Hon. Sir J. Vogel. Sic, — Downing-street, 29th October, 1875. The Earl of Carnarvon caused a copy of the letter addressed to him by yourself and Sir D. Cooper on the 29th of September, replying to the observations of the Postmaster-General in regard to the subsidy proposed to be paid to the Eastern Extension Australasia and China Telegraph Company, as a condition of their reducing the tariff for messages between this country and Australia, to be referred to the General Post Office; and lam to enclose a copy of the letter which has been received in reply from that Department. I am, &c, Sir Julius Vogel, K.C.M.G. W. E. Malcolm.

Actual Number of Messages, Year 1874. Average Number of Words in each Message. Existing Tariff for Twenty Words. Revenue of ExtensionCompany, being its gain on the foregoing TrafEc, charged as its proportion of the Tariff shown in the foregoing Column. Bate for Ten Words, as per agreement betweeen the Governments of New Zealand and New South Wales and the Company. Revenue that ■will be derived at the Tariff given in Column 6. 1. 2. 3. 4. 5. 6. 7. 'ort Darwin to Europe ... „ „ Java „ „ Singapore „ „ India „ „ Hong Kong „ „ Saigon ... 5,781 510 570 362 544 43 32 28 25 21 23 21 £ s. d. 8 6 6 2 18 0 3 19 6 6 0 6 6 9 6 5 6 0 £ 49,679 1,613 2,715 2,050 3,871 226 B. 0 0 0 0 0 0 d. 0 0 0 0 0 0 £ s. d. 3 0 0 10 0* 1 10 0* 1 10 0* 3 0 0* 2 10 0* £ 26,555 1,195 2,157 1,134 3,705 227 I. d. 0 0 0 0 0 0 0 0 0 0 0 0 7,810 60,154 34,973 0 0 0 0 34,973 0 0 loss to the Company by the new rates £25,181 0 0 Note.—Iu G ilumn 6, the items marked thus * show the cost over the cable only.

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lII.—As to New Zealand Cable.

Enclosure. The Geneeal Post Office to the Colonial Office. Sic,— General Post Office, 23rd October, 1875. With reference to your further letter of the 6th instant, on the subject of the reduction of the present cost of telegraphic communication between this country and Australia, proposed to be effected under the contract which has been negotiated by Sir Julius Vogel and Sir Daniel Cooper with the Eastern Extension Australasia and China Telegraph Company, I am directed by the Postmaster-General to state, for the information of the Earl of Carnarvon, that the observations which his Lordship thought it right to make, as expressed in my letter of the sth August last, were based on the best information that could be obtained on the subject; but that it is evident, from the details given in the letter from Sir Julius Vogel and Sir Daniel Cooper of the 29th ultimo, a copy of which accompanied your letter above referred to, that that information was most incomplete; and that it now seems clear that the amount of the proposed guarantee will be fully justified. I am, &c, The Secretary, Colonial Office. S. A. Blackwood.

No. 12. The Hon. Sir J. Vogel to the Earl of Caenaevon. 7, Westminster Chambers, Victoria-street, Westminster, S.W., My Loed, — 3rd November, 1875. I have the honor to acknowledge, with thanks, the receipt of a letter from Mr. Malcolm, enclosing, by direction of your Lordship, copy of a communication from the Post Office Department, stating that the details furnished in the letter dated 29th September, from Sir Daniel Cooper and myself to your Lordship, have caused it to seem clear to the Postmaster-General that the amount of the subsidy proposed to be paid to the Eastern Extension Australasia and China Telegraph Company (Limited), as a condition of their reducing the tariff for messages between Australia and Great Britain, is fully justified. I have, &c, The Eight Hon. the Earl of Carnarvon, &c. Julius Vogel.

No. 13. . The Agent-Geneeal to the Hon. the Colonial Seceetaet. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sic— 7th July, 1875. I have the honor to enclose one part of the contract entered into between the Governors of New Zealand and New South Wales, and the Eastern Extension Australasia and China Telegraph Company (Limited), for the laying of a submarine cable between New Zealand and Australia, and as to other telegraphic arrangements. The enclosed copy, of which I retain a duplicate, has been communicated by the Solicitors to the Government, Messrs. John Mackrell and Co. I have, &c, I. E. Feathebston, The Hon. the Colonial Secretary, Wellington. Agent-General.

No. 14. The Agent- Geneeal to the Hon. the Colonial Secbetaby. 7, Westminster Chambers, Victoria Street, "Westminster, S.W., Sib,— 22nd September, 1875. In continuation of my letter of the 7th July, No. 476, forwarding one part of the contract entered into between the Governors of New Zealand and New South Wales, and the Eastern Extension Australasia and China Telegraph Company (Limited), for the laying of a submarine cable between New Zealand and Australia, I have now the honor to enclose, for the information of the Government, a copy of a letter which I have received from Messrs. John Mackrell and Co., with one of the attested copies of a supplementary agreement to which it refers—the other remaining in my keeping. lam to direct your attention to Messrs. Mackrell's opinion that the original contract, as well as the supplementary agreement, should be formally executed by His Excellency the Governor. I have, &c, I. E. Peatheeston, The Hon. the Colonial Secretary, Wellington. Agent-General.

Enclosure. Messrs. J. Mackeell and Co. to the Agent-Geneeal. Deae Sic, — 21, Cannon Street, London, E.C., 21st September, 1875. "We send enclosed two attested copies of a supplementary agreement which has been entered into between the Governors of New Zealand and New South Wales, and the Eastern Extension Australasia and China Telegraph Company (Limited), with reference to the type of cable and the terminal points.

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Please retain one of these and place it with the contract which you have, and forward the other to the colony, to be placed with the duplicate contract which they have. We think it desirable that the original contract already sent to the colony, and this supplementary agreement, should both be formally executed by the Governor, notwithstanding that they have been done so on his behalf, any necessary Order in Council being first obtained. We are, &c, The Agent-General for New Zealand, &c. John Mackeell and Co. [The Agreement and the Supplementary Agreement each executed by His Excellency, the Governor, in Council, November 25th, 1875.]

As to NewZealand Cable.

IV.—LAYING AND OPENING OF THE CABLE. Memoeatoum by the Geneeal Manages, Electric Telegraph Department. Completion of the Gable. I beg to report, for the information of the Hon. the Telegraph Commissioner, that the cable ships " Hibernia " and " Edinburgh " arrived on Thursday, the 17th instant, and that the shore end of the cable was successfully landed on the afternoon of the same day. The " Edinburgh " started from Wakapuaka at midnight on Thursday, laying cable to join with the end buoyed off Cape Farewell; and, by the invitation of Mr. C. E. Lucas, Engineer-in-Chief of the Cable Expedition, I proceeded in her. She arrived at the cable buoy shortly after 11 a.m. next day (Friday). The final splice of the New Zealand and Australian ends was effected at 1 p.m. on Friday, the 18th instant. The ships then returned to Wakapuaka, arriving at midnight. The electricians of the respective companies landed on the morning of Saturday, the 19th instant. Official intimation was received from Mr. Shapley, on the morning of the 21st instant, that the cable would be open for business at 10 a.m. that day ; and notice of the fact was at once telegraphed to the various telegraph stations throughout the colony. C. Lemon, New Zealand Telegraphs, Head Office, General Manager. Wellington, 23rd February, 1876.

IV.—Laying and opening of the Cable. Report of General Manager, New Zealand.

V.—CONGEATULATOEY TELEGEAMS. 1. —The Colonial Goveenment and Impeeial Goveenment. Auckland, 19th February, 1876. The completion of the telegraph cable from Sydney to New Zealand, enables me to congratulate your Lordship upon the establishment of telegraphic communication between this colony and the mother country. This great work, while facilitating the transaction of official and mercantile business, will, I trust, draw closer the bonds of union between Great Britain and this Her Majesty's most distant possession. Nobjianby. Secretary of State for the Colonies, London. London, 21st February, 1876. I have received your telegram, and heartily rejoice in the accomplishment of this important work. The Queen commands me to express her satisfaction at the establishment of a fresh bond of union with her loyal colony of New Zealand. Cabnaevon. His Excellency the Governor, New Zealand. Wellington, February 19, 1876. New Zealand rejoices that the completion of telegraphic communication makes closer and mo re intimate the ties between it and the mother country. Lord Carnarvon, London. Julius Vogel, Premier. London, 21st February, 1876. I received your telegram with greatest satisfaction, and heartily return the sentiments and good wishes contained in it. Cabnabvon. Sir Julius Vogel, New Zealand. 2. —The Atjstealian Colonies. I congratulate your Excelleny on the establishment of telegraphic communication between Sydney and New Zealand, and at the same time I would express the hope that this great work, on the construction of which New South Wales and this colony have so cordially united, may tend not only to facilitate the transaction of business, but also to strengthen the good-feeling which exists between the two colonies. Nobmanbt. Governor of New South Wales. I congratulate you on the successful completion of an enterprise which brings New Zealand into telegraphic communication with all the commercial centres of the civilized world, and can scarcely fail to strengthen the ties which should ever bind these great Australasian colonies to each other and to the mother country. Goyeenob, New South Wales. His Excellency, the Marquis of Normanby, K.C.M.G., Governor of New Zealand, Auckland.

V. —Congratulatory Telegrams.

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In announcing to your Excellency the completion of the telegraph cable between Sydney and New Zealand, I beg to express a hope that this great undertaking may be the means of facilitating and increasing connection between Queensland and New Zealand. Noemaoty. Governor of Queensland, Brisbane. Tour Excellency's telegram joyfully received. With your Lordship, I sincerely hope that New Zealand and Queensland may now steadily be brought into advantageous intercommunication, increasing from year to year. W. W. Caibns. The Governor of New Zealand. I have great pleasure in informing your Excellency that telegraphic communication has been successfully established between New South Wales and New Zealand, and I trust that it may prove the means of drawing closer the bond of union and good-feeling between the Australian colonies and New Zealand. Nobjianbt. Governors of Victoria, South Australia, Tasmania, and West Australia. I have just received your telegram. On behalf of Victoria I cordially reciprocate your congratulations on the completion of telegraphic communication, and your belief that this will prove a fast link of union and good feeling between Australia and New Zealand. Personally, from my long official connection with both colonies, I feel the warmest interest in the welfare and progress of both. His Excellency, the Marquis of Normanby, Auckland. G. I\ Bowen. I congratulate your Excellency on the successful completion of a work, the accomplishment of which lam confident will do much towards uniting Australian provinces in other ways. The land line to Echuca is progressing fast, and when finished, all this group of British communities will enjoy the advantage of telegraphic correspondence. Governoe Musgeave. His Excellency, the Marquis of Normanby, Auckland. I reciprocate your Excellency's wish, and heartily desire prosperity to New Zealand and my many friends there. Feed. A. Weld, His Excellency, the Governor, Auckland. Governor of Tasmania. We are very glad in New Zealand to be connected by telegraph with New South Wales. I congratulate you upon the success of this undertaking, which we owe to the joint enterprise of the two colonies. I hope the telegraph may prove a bond which will continue to unite them in friendly intercourse and in offices of mutual service. Julius Vogel. Hon. the Premier, Sydney. Our efforts for telegraphic communication between New Zealand and New South Wales, when you, Lilly, and I, represented our respective colonies many years ago, though long delayed, are successful at last. Accept my hearty congratulations ; and offer my best compliments to Lady Vogel, whose name, as it ought to be, from the great interest she has always taken in the enterprise, will be the first lady's name that passes through the line. John Kobebtson. Sir Julius Vogel. Lady Vogel and I thank you for your congratulatory message. It must have crossed mine to you. It would have been well for all of us if Queensland had approved the arrangement to which you refer, although our present arrangement is highly satisfactory. Hon. J. Eobertson, Sydney. Julius Vogel. Reciprocate congratulations, good wishes, hopes. Presume my former telegram crossed yours on the way. John Bobebtson. Sir Julius Vogel. I congratulate you on New Zealand being brought into closer relations with other parts of the world. Postmasteb-Geneeal, Sydney. Postmaster-General, New Zealand. Many thanks for your congratulations, which I reciprocate. Hon. Postmaster-General, Sydney. Julius Vogel. We are very glad in New Zealand to be connected with South Australia by telegraph, and, through her trans-continental system, with the rest of the world. . Julius Vogel. Hon. Premier, Adelaide. We reciprocate the sentiments expressed in your telegram, and are proud that our trans-conti-nental line enables you to join the rest of the world. We wish your colony success, and look forward to a great dominion of Australasia, of which we hope our telegraphic union is typical. Sir Julius Vogel, Premier, Wellington. Jas. P. Boucaut, Premier. We are very glad in New Zealand to be connected by telegraph with Victoria. Hou. Premier, Melbourne. Julius Vogel. We reciprocate congratulations on connection by telegraph with New Zealand. Sir Julius Vogel. J. McCulloch. We are very glad in New Zealand to be connected by telegraph with Queensland. Hon. Premier, Brisbane. Julius Vogel. Queensland congratulates New Zealand on being connected by telegraph with the adjacent colonies. W. Hemmans. Hon. Sir Julius Vogel. We are very glad in New Zealand to be connected by telegraph with Tasmania. Hon. Premier, Hobarton. Julius Vogel.

V. —Congratulatory Telegrams.

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On behalf of Mr. Kennedy, and other members of the Tasmanian Ministry, I beg to offer the congratulations of this Government on the establishment of telegraphic communication with New Zealand. TnoiiAS D. Chapman, Hon. Sir Julius Vogel. Colonial Secretary. 3. —The Peovinces. Youe Honor will be interested to learn that the telegraph cable has been completed, and that the Company's Engineer is now making tests before taking it over for public business. His Honor the Superintendent, Dunedin. Julius Vogel. [A like message was forwarded to the Superintendent of each of the other Provinces.] Accept my congratulations on successful completion of cable. Was out of town when your telegram reached. J. Macandeew. Sir Julius Vogel. Thank you for the information as to completion of telegraphic communication with Australia. Accept my best congratulations. W. Rolleston. Sir Julius Vogel. I am much gratified to learn that telegraphic communication between this colony and Great Britain, as well as with the other Australian colonies, has been successfully established, and beg you to accept my hearty congratulations. Oswald Cubtis. The Hon. the Premier, Wellington. Tour telegram announcing completion of telegraph cable I received with much interest, and I desire to offer my warm congratulations on the accomplishment of a work of so much importance to this colony, and in which you have taken such an active interest. Jas. A. Bonab. Sir Julius Vogel. Congratulate you on the marked success which has attended the laying of the new cable. Sir Julius Vogel. A. P. Seymoub. I thank you for the courtesy of your telegram announcing completion of laying submarine cable, and offer my hearty congratulations on the event. William Pitzhebbeht. Sir Julius Vogel. Thanks for your communication. We are indeed pleased to learn that the telegraph cable is completed. Pray bear in mind that New Plymouth is still isolated, and that a promise has been given that the wire shall be connected this summer. Feed. A. Caeeington. Sir Julius Vogel. I thank you for your telegram. It was with great pleasure that I heard in 1867 that the sagacious originators of the policy of the introduction of the electric telegraph into New Zealand had succeeded in connecting the two islands by a submarine cable. It is with equal pleasure I now hear that their far-sighted policy has been pursued to so important a termination, and that the existing Government have had the gratification of completing so much greater a work, suited to the present advanced wealth and requirements of the country, and which must produce such important benefits for New Zealand. The Hon. the Premier. G. Gbey. 4.—Telegbaph Construction and Maintenance Company, and Easteen Extension, &c, Telegeaph Company. Cable successfully completed. Eastern Extension Telegraph Company's Engineer now making tests before taking it over for public business. F. E. Lucas. Sir Julius Vogel. I congratulate you upon the remarkable success with which you have laid the cable between Sydney and New Zealand, and the great skill and ability you have displayed. I\ R. Lucas, Esq. Julius Vogel. I congratulate you on the establishment of telegraphic communication between the mother country and New Zealand, and trust that it will bind still closer our social and political relations. His Excellency, the Marquis of Normanby, John Pendee, New Zealand. Chairman, Eastern Extension Co. I reciprocate your congratulations, and feel confident that the extension of telegraphic communication to New Zealand cannot fail to strengthen the ties which bind us to the mother country, and to promote that harmony and good-feeling which should exist between these great Australian colonies. John Pender, Esq., M.P., Noemanby. Chairman, Eastern Extension, &c. Co., London. I congratulate you on the completion of the telegraph communication with the old country, and the successful result of your labours in bringing about such important event. May result exceed all our most sanguine expectations. John Pendeb. Sir Julius Vogel, New Zealand. 5—E. 4.

V.—Congratulatory Telegrams.

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Thanks for congratulations. "We are very pleased with way Company performed contract. Convey congratulations Construction Company. Strongly advise at once adopt nine-pence word rate. John Pender, London. Julius Vogel. I congratulate you on successful completion of our joint labours. Hope our relations may always continue equally satisfactory. . T. G. Glovek. Sir J. Vogel, New Zealand. Thanks congratulations. Company done well. Hope reap reward. Colonel Glover, London. Julius Vogel. In reply to your congratulations, conveyed to the Telegraph Construction Company's Board, they desire to express their great pleasure at your satisfaction, so kindly expressed, at the manner which the contract for New Zealand-Sydney Cable has been carried out. Eeciprocate your congratulations. Sir Julius Vogel, New Zealand. T. Gr. Glovee. s.—Canterbury Chamber of Commerce. The Canterbury Chamber of Commerce desire to congratulate you on the near completion of telegraphic communication with Great Britain. P. Cukts'lugham, Sir Julius Vogel. Deputy Chairman. I thank the Chamber for its congratulations, and am glad to say that the cable is now successfully laid. Julius Vogel. P. Cunningham, Esq., Chamber of Commerce, Christehurch.

T.—Congratuls' tory Telegrams.

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TELEGRAPH CABLE COMMUNICATION.

Telegraph Cable Com mun i ca ti O n.

Memorandum by the Commissioner. The Commissioner of Telegraphs is very much impressed with the necessity which exists for the Australasian colonies coming to a common understanding, and acting in concert in future, with respect to cable communication with other countries. At the recent Telegraph Conference at St. Petersburg they were not represented, though subjects of great interest to them were under consideration, and some resolutions were arrived at from the effect of which they already suffer. The Commissioner specially alludes to the ten-letter per word regulation, and to the regulation imposing an increased charge for inquiry concerning, and correction of, mistakes. It is believed that outside Europe these regulations were left to the discretion of the companies; but it is a significant indication of the little consideration these colonies have received, that even the results of the Conference do not appear to have been officially communicated to them. The Commissioner does not doubt that if the attention of the English Postal authorities be directed to the subject, arrangements will be made to admit of the Australasian Colonies being represented at the next Conference. To enable this to be done, however, it is necessary they should arrive at an understanding between themselves. The Commissioner is under the belief that by means of these Conferences, and otherwise, the various Governments of Great Britain, Europe, and India exercise great control over the cable companies. The two companies communicating with India, as also the one which from India communicates with Australasia, are certainly to a considerable extent under the regulating influence of the Government of India. It was alleged to the Commissioner, during recent negotiations in England, that the Indian Government would not allow the two companies working between India and Europe to compete with regard to prices, but insisted upon a certain tariff not being reduced. Probably the action of the Indian Government was not correctly described, or there is some good reason to justify it; but it would be important to these colonies to understand what that action is. The Government of India always show courteous attention to these colonies, and doubtless would answer any inquiries. But it would be better that the inquiries should proceed unitedly from the colonies, than from a single one. It would be still better if the Government of India would depute some one to represent them at a Colonial Conference. It is not too much to say that Australasia is dependent upon India for the nature and facility of its cable communication. At the Conference of the Australasian Colonies, held at Sydney in 1873, the opinion was entertained that it was undesirable the charge of cable communication between Australia and England should be in private hands, and the whole people subjected to heavy charges, to profit shareholders in joint-stock companies. The idea was that the Imperial, Indian, and Australasian Governments should jointly raise the money necessary for either purchasing or constructing a through line, and that while each country and colony should retain the revenue received in its hands, each should contribute to the interest, maintenance, depreciation, and charges in proportion to the revenue it derived. This proposal found no favour in the eyes of the then Imperial Government, and there does not seem to have been any communication with India on the subject. But the policy of the present Imperial Government is widely different, and a project which would give to Great Britain, India, and the Australasian colonies a national line would probably not be unacceptable to a Government that has shown so much interest in keeping open the road to India and Australasia. The purchase of the Suez Canal shares, with the presumption it establishes that

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England will at least insist upon the neutrality of that highway, affords the means of an unbroken communication between England, India, and Australia, without passing through any foreign country. The Lisbon Station avoided, and the Canal neutral, the through route of the Eastern Company might be considered free from any foreign complications ; and, by avoiding Java, the same would be the case with the Eastern Extension route. At any rate, the subject is well worthy of revival. Considering that the interior systems of telegraph of Great Britain, India, and the colonies are all in the hands of the respective Governments, a connecting Government cable appears to be a natural consequence, whilst to allow the cables to remain in private hands seems to be wholly inconsistent. Another point, apparently not of much present moment, but one that with time will gather importance, and which cannot be too soon dealt with, is that of the naming of towns and cities. When a telegraph station has a name of which there is no duplicate in any other part of the world, the expense of designating the part of the world may be avoided in transmitting a message. But when it possesses a name similar to another elsewhere, the cost of sending messages to it is always enhanced; and with a rate of 10s. 6d. a word, the consideration is not a slight one. For example, for messages to Auckland, Dunedin, and Christchurch, the name New Zealand is unnecessary, but for messages to Wellington it is otherwise: there are Wellingtons in other parts of the world. Even in New Zealand itself, there are several cases of two towns of the same name, and there are similar examples on the Australian Continent. The transmitter of a message to Maryborough, for example, would have to designate whether he meant Maryborough in Victoria or in Queensland. Simple precautions would prevent the duplication of names in future. There are other matters, relating to both internal and external telegraphy— such for instance as tariffs, conditions, regulations, &c.—about which uniform action by the colonies is most desirable. These various considerations point, in the opinion of the Commissioner, to the desirability of the Australasian colonies coming to some understanding in relation to the telegraph. It might be desirable to have a Conference, or else for the colonies, by correspondence, to take united action. If the other colonies agree that it is desirable to move the Imperial Government to admit the colonies to representation at the next Conference, and to obtain from that Government and from the Government of India information as to their views upon the points herein raised, such request might be made by indorsing this memorandum, without the necessity of an immediate Conference, and the Conference could be held when the answers had been received. The Government of New Zealand, on receiving an intimation to that effect from the other colonies, would, on their and its own behalf, make the necessary representations to the Home Government. Probably, however, as the Colonies of Victoria and New South Wales use the telegraph most largely, the representations might best be made by them jointly; besides that they could more conveniently seek the views of the neighbouring colonies, and make arrangements which would, in the future, result in common action by all these colonies on telegraph questions. Julius Vogel. Wellington, 4th April, 1876. [Approved of in Cabinet; and copies forwarded to the Government of each of the Australian colonies.] By authority: Geoege Didsbuey, Government Printer, Wellington.—lß76. Price Is. 6d.]

Telegraph Cable Communication.