ELECTRIC CABLE COMMITTEE.

25

F.—No.. 4

Feeling assured that these proposals will receive prompt and favourable consideration at the hands of your Government, I have, &c, W. B. Towleb, Electrical Engineer, E.O.T.C, Late Chief Line Inspector, Telegraph Department, S.A. His Excellency Sir George Bowen, Governor of New Zealand.

Enclosure. London, 97, Cannon Street, E.C., 23rd February, 1870. Eastern Oceanic Telegeaphic Company (Limited). The undersigned beg to submit the following conditions for concession for telegraphic communication between New South Wales, Victoria, South Australia, Tasmania, and Western Australia, with Ceylon: — 1. The Australian Governments to grant an exclusive concession for thirty years, terminable on terms hereafter expressed. 2. To guarantee to supplement the net profits, to the amount of 6^ per cent, per annum, on total cost of cables and land lines, 5J- per cent, to be paid in dividends to shareholders, and 1 per cent, to be invested to form a reserve fund, to be used only for new cable if required, otherwise to belong to the Company; the guarantee not to |commence until the cables are laid and in working order; thirty days in each year being allowed for repairs and interruptions over which the concessionaires have no control. If stoppage does not exceed ten consecutive days such stoppage not to count, but beyond that period a proportion of the guarantee to be deducted. 3. In the event of the Company working and maintaining the line, and communication being interrupted for two years continuously, the guarantee and concession to be terminated at the option of the Governments, subject to six months' notice. 4. The traffic rates to be fixed by the Australian Governments. 5. One moiety of the profits over 10 per cent, to be added to the reserve fund, in addition to the 1 per cent, of the guarantee, for accumulation, and the other moiety to be divided equally between the Australian Governments and the Company. The guarantee not to be claimed except the profits are less than 6£ per cent. 6. The guarantee to be paid half-yearly, and the 1 per cent, for reserve fund, together with the moiety over 10 per cent, profits, and all interest thereon, to be invested from time to time in Government securities, until the reserve fund is 56 per cent, of cost of cables, and then the above moiety to be divided between the Australian Government and the Company. 7. The Company to work and maintain all lines, and keep a creditor and debtor account, duplicates of which to be furnished to the Governments half-yearly, duly certified; but, should it be desired, the Governments are to work and maintain all lines, and keep a creditor and debtor account, duplicates of which shall be furnished to the Company half-yearly, duly certified. 8. The working expenses shall not exceed 25 per cent, of the net income of the Company. All repairs to be charged to working expenses. 9. The Company undertake to construct land lines from Port Augusta to Fowler's Bay, and from King George's Sound to Perth ; and to construct and lay cables from Fowler's Bay to King George's Sound, from Perth to Java Head, and from thence to Ceylon ; and to construct any additional lines, within the first ten years, desired by the Australian Governments, on the above terms. 10. The Company shall form the connection with Adelaide and Ceylon in three sections, as follows: — Description of cable. Ist section —From Adelaide to Perth ... ... ... ... 3 wires. 2nd section—From Perth to Java Head ... ... ... ... 1 wire. 3rd section —From Java Head to Ceylon ... ... ... 1 wire. The whole to be completed in three years from date of concession. 11. The guarantee shall commence to be in operation on the completion of each section, in proportion to the cost of such cable. 12. Special through wires to be constructed from New South Wales, Victoria, and Adelaide to Perth, and connected with the three wires of the first section cable. 13. The Government to grant 500 acres of land free, for each station, situated on or near waste lands of the Crown, and the right to cut timber and use other materials. 14. The Australian Governments to have the option of purchasing the property of the Company, after the expiration of each ten years, at the original cost, on their giving twelve months' previous, notice of their intention so to do. 15. The Company propose that the tariff shall be — £ s. d. From Perth to Ceylon ... ... ... ... ... 10 0 From Adelaide to Ceylon ... ... ... ... ... 150 From Melbourne to Ceylon ... ... ... ... ... 1 10 0 From New South Wales to Ceylon ... ... ... ... 115 0 From Tasmania to Ceylon ... ... ... ... ... 115 0 For messages of twenty words, exclusive of address. Chaeles Cuetois, } Promotors of the W. B. Teomp, > Company, and proposed H. B. Eichaedson, ) Concessionaires.