The Sun.
London, England, 1870-02-01 00:00:00

rnE SUN, LONDON, TUESDAY EVENING, FEBRUARY 1, 1870.

cry against the reductions or the Liberal ministry,
and earnestly entreated his audience " to abstain from
attempting to exaggerate the complaints made
in regard to some points of Government action, and
giving them undue prominence in the minds
of working men." This is wise statesmanship,
and worthy of the speaker. As he pointed out, the
question whether the reductions aro wise must be
decided by their ultimate results; but if they are
wise, the inconvenience to individuals must be accepted
as a necessary condition of the benefit to the
country. This is the proper light in which to regard
this painful question. It is not only irrelevant to
complain of the dismissal of men whose services are
not wanted, but it is highly unfair, since precisely the
same means have been' employed by all preceding
Ministries under similar circumstances.

A MOURNFUL wail arises from the diplomatic
body. This class is not a large one, and its im-
portance is declining, but in remembrance of the
momentous interests which formerly depended
upon its exertions, it may be as well to
consider its grievance. It is that times are bad and
business decidedly flat with ambassadors, envoys, and
attaches. The career of a diplomatist is costly
and long unremunerative, and yet every
year witnesses a diminution of the rewards
which are open to the profeation. An unpaid
attache, or one paid at the rate of £l5O a
year, cannot live on less than £3OO. Nevertheless it
requires from ten to fifteen years of service on those
terms to win the aspirant the rank of second
secretary, with £250 a year, the requirements
of this post being such that its possessor must have
at least £4OO a yliar of his own. It often happens
that ten years are spent in the capacity of second
secretary before promotion is attained. The
diplomatist spends many thousand pounds of
his private fortune, labours hard for several
hours a day, and must be ready to migrate to any
Climate, even that of Teheran, before he can win his
way upwards. Yet the profession is overstocked,
whilst its opportunities are diminishing. Young
men of family and fortune flock to the business,
whilst year by year some little State
is swallowed up by a big neighbow, or some important
embassy is suppressed or reduced. To make matters
worse, the better places aro sometimes given to
men who do not earn them. It was fondly hoped
that the vacancy at Madrid would cause a moving
upwards of several subordinates; but, instead, Mr.
LAYABD was drafted ofY from the ranks of the
Govaffrhent, and worthy Sir JOAN CItAMPTON'S
decease proved of no benefit to his fellows.
This jeremiad is not without cause, but it is cer-
tainly without remedy. As to the isolated case
of Mr. LAYARD, it may be conceded in
general that if the regular diplomatists take
the blanks, they ought also to have the
prizes ; and supposing that a competent person could
be found in the ranks, the banishment of the
Works Commissioner was unfair. It would never do,
however, to establish the principle that a suitable
politician should not be made an ambassador unless
he had vegetated the requisite number of years on
£l5O and £250 a year. With regard to the more
general complaint, it is sufficient to say that there is
no help for it. The " agglomeration " principle, as the
Prench EMPEROR calls it, has made sad havoc with
the diplomatists; but who can stay the tendency of
States to agglomerate? Dresden, Frankfort, and
Hanover have vanished in Prussia; Naples and Turin
have "agglomerated" to Italy. At all these places
there was once an embassy, where there
is now none. The disappearance of these cities from
the list of capitals has thrown so many aspirants
out of employment, and it is only to be expected
that the same influence will continue to have the
same effect. More than this, the English Parliament
is beginning to disbelieve to some extent in
diplomacy. We in this country have no
longer that eager interest in foreign. intrigues
that we once displayed. Embassies are
expensive, at some small courts they are useless, and
in more than one case they have been worse
than useless, for they have bred mischief. The
present British policy is decidedly in favour
of reducing the number of foreign establishments; and
it is not improbable that the system of grouping
several small courts under the command of the
embassy at some great capital may soon be adopted.
Should it be so, the general must prevail over indi-
vidual good. We can no more pay diplo-
matists who are not wanted than we can
employ superfluous dockyardmen. The law :of
supply and demand must be fairly applied. to high
and low.l

FOREIGN NOTES.

THE TELF.GE APIIIC "POT.'

The shareholders of the Electric and International
Telegraph Company have resolved not to vote their
director-is any definite sum as a reward for the good
terms they got from the Government, but to leave
the matter to individual contributions. The
Times is highly indignant with this con-
clusion. Not only does it leave the grateful
to pay for the ungrateful, but it is bad
" If directors who negotiate an advantageous
sale or transfer .of the business of a company and
thus sacrifice their own position, whatever it may be
worth, are to be discarded without acknow-
ledgment as soon as they have done their
work, there will be reason to apprehend in future
cases a serious development of obstructiveness."
The Times considers the terms secured by these
telegraph companies an " extravagantly prosperous
termination." The expression is rather highly
Wrought, for the shareholders only sold theirproperty
according to the return which it was bringing. But
no doubt the bargain was a good one, and it is
palpable that the directors have been unfairly treated,
for they devoted time and trouble to securing an
arrangemeiA by which they were deprived of their
position,. Moreover, the shareholders acknowledge
their right to compensation, and yet leave them
dependent on the gratitude of each individual pro-
prietor.

RiII,WAY AND OTHER COMPANIES.

ANGLO-AMERICAN TELEGRAPH (LIMITED).

A special general meeting of this company was
held yesterday at the London Tavern—Captain A.
T. Hamilton in the chair.

The report stated that, under the present agree-
ment with the Atlantic Company, the Anglo-
American Company were entitled each year, after
the payment of the working expenses, and interest
on the Atlantic Company's bonds (not exceeding
£7,500), to receive of the earnings of the cables
£125,000, less one-half of the expenses of extraor-
dinary repairs, such half not to exceed £12,500,
after which the Atlantic Company were entitled to
receive alike sum of £125,000. The Anglo-American
Company also received a subsidy of £25,000 per
annum from the Newfoundland Company. The work -
ing of the traffic was carried on by a joint commit-
tee, consisting of three directors from the Atlantic
Company and three from the Anglo-American
Company. So long as there was no competing line
this arrangement worked not unfavourably to the
Anglo-American Company, but in the face of an
active competition with the French Company prompt
and decided action in the management had be-
come absolutely necessary, and the divided inte-
rests of the companies could not but interfere with
reductions of tariff and other changes indispensable
to retaining the traffic of their lines. After pro-
tracted negotiations the directors had, with the con-
currence of the directors of the Atlantic and New-
foundland Companies, come to an arrangement with
the French Company, subject to the approval of the
shareholders, for a division of the gross receipts of
the three cables, in the proportion of 631 per cent. to
the English and Newfoundland Companies, and 36
2-3ds per cent. to the French Company ; those pro-
portions were to be varied from time to time in the
event of either of the cables continuing for a long
period out of working order, and the division to
cease in case either party was unable to transmit
messages for 30 consecutive months. The Anglo-
American Company would continue to receive the
subsidy of £25,000 a year from the Newfoundland
Company. The Board believed that if the proposed
arrangement were now adopted the natural growth
of the traffic and the diminution of the expenses
would bring increased revenues to all. The Atlantic
Company's Board, whose concurrence was necessary
to an agreement with the French Company, refused
their consent to any division of the traffic receipts
which did not involve their participation to some
extent in the current revenue. After much discus-
sion, and to avoid the ruinous competition which ap-
peared to be impending, the directors agreed, sub-
ject to the approval of the shareholders, to the pro-
posal, whereby the interests of the Atlantic share-
holders would become identical with the Anglo-
American Company. It was proposod to convert
the present capital of the Anglo-American Com-
pany, £600,000, into £1,200,000 stock, to be
divided among the shareholders of this company in
the proportion of £2O stock for every £lO share,
and to issue to the Atlantic shareholders £375,000
of like stock in exchange for all the share capital of
the Atlantic Company—the conversion to take
effect as from the 31st inst. If this scheme should
be adopted the Anglo-American capital would con-
sist of £1,575,000, entitled, after the payment of
interest on £lOO,OOO existing mortgages, to all the
profits heretofore accruing to the Anglo-American
and Atlantic Companies. The result of the share
capital conversion would be that the present Atlan-
tic shareholders would participate at once in the net
receipts allocated to the Anglo-American Company
under the agreement with the French Company in
the proportions of 5-21 parts to the Atlantic
shareholders and 16-21 parts to the Anglo-Ameri-
can Company, whereas, under the existing agree-
ment, the Atlantic shareholders would get
nothing until the Anglo-American had received
£125,000, less any reducton for extraordinary
repairs, after which they were entitled to a like
sum of £125,000 ; but if the proposed conversion
should be effected the Anglo-American Company
would take 16-21 parts of all the net receipts,
whatever they might amount to, and there would
be but one class of stock, one board of directors,
and one body of shareholders. As regarded the
agreement with the French Company, the directors
were unanimous in recommending its adoption; but
with respect to the conversion of Atlantic stocks
Mr. Pickersgili Cunliffe disagreed with his colleagues
upon certain grounds.
The solicitor then read the agreement, dated the
15th of January, 1870, made between the Atlantic
Telegraph, the Anglo-American Telegraph, and the
New York, Newfoundland, and London Telegraph
Companies on the one part, and the Societe du
Cable Transatlautique of the other part, with re-
spect to the working of the lines of the several
parties thereto, and the division of the traffic receipts
thereof. The agreement was to continue forsoyears,
but on giving notice by either party it might be
terminated at the end of 25 years. The tariff was
to be agreed upon jointly, and varied from time to
time as might be deemed necessary. In case one
of the Atlantic cables should cease to work for 18
months, then the proportion would be 60 per cent. of
the receipts for the Anglo-American Company and
40 per cent. for the French company. If the cable
should not be in operation at the end of 12 months,
then the proportion would be 50 per cent. of the
receipts for each party to the agreement ; and in
like manner should the French cable discontinue
to work for 12 months, then the proportion of
the receipts for the next six months would be 27
per cent. for the French Company and 73 per
cent. for the English Company ; and if not in
operation before the end of the following 12
months the proportion of receipts would be during
that time 20 per cent. for the French Company
and 80 per cent. for the English Company. After
which the interests of the defaulting cable would
cease, and each company would resume its former
position.

The CHAIRMAN then moved a formal resolution
approving the agreement, and in doing so explained
some of the reasons which induced the directors
to propose the adoption of tho agreement for a
joint purse arrangement with the French com-
pany. Prior to June last the tariff for ten words
was £3 7s. 6d. ; the tariff was reduced in June to
£2, being the limit allowed to the French Com-
pany, who subsequently made a further reduction
to 30s. for ten words. There could be no doubt
that this last reduction was uncalled for, but the
English Company were bound to conform to the
French tariff. For the nine months prior to the
French cable being in operation the receipts of the
Atlantic cable averaged £650 a day. The £2 tariff,
from the Ist of June to the 9th of August, realised
an average of £499 per day, and the 30s. „tariff,
from the latter date to the 31st of December, ave-
raged £415 per day, and during the present month
the receipts averaged £394 daily. These facts con-
vinced the Board of the evil consequences of com-
petition, and they were thus induced to enter into
negotiations with the French Company. The Anglo-
American Company had previously come to an ar-
rangement with the Western Union Telegraph
Company of New York, by which the latter com-
pany had agreed to hand over to the Anglo-Ame-
rican Company all the messages from the United
States and Canada to Europe. The French Com-
pany, not pleased with the small traffic they were
obtaining, made great exertions to increase their
receipts by means of agencies in America, and, if
need be, threatened to construct lines of telegraph to
some of the principal lines in America. The West-
ern Union Company, being desirous of preventing
competition, suggested to the Anglo-American
Company some arrangement with the French Com-
pany, which resulted in the proposed agreement.
The position of the French Company at Falmouth
by the cable from Brest and other matters had in-
duced the directors to recommend the proposed
agreement. The result of a railway competition was
well known in England, and a similar result would
arise to telegraph companies if serious com-
petition was to be carried out. By the course pro-
posed ruinous competition would be prevented, the
public would be much better and more efficiently
served, and the capital invested in those undertak-
ings would be preserved from extensive deprecia-
tion. The united company would have three cables
to work the traffic instead of two, one board of
directors, and one principal officer to carry on all

the business. The expenses of an adverse course,
the establishment of rival agencies, aad other pro
ceedings that might follow, would absorb the profits
of the business done by both companies separately
to a very serious extent, without, perhaps, obtain-
ing any corresponding advantages.
Sir D. Gooch, M.P., seconded the resolution for
approving the agreement with the French Company.
He thought he could not too strongly urge upon the
shareholders to adopt the agreement. He was one
of the largest shareholders in the company, and held
1,600 shares. He believed the proposal submitted
to them was the best solution of the difficulty.
Mr. PICKEIZSGILL-CUNLIFFE said he did not
agree with the arguments in favour of the proposed
agreement. lie had gone into the whole calcula-
tion ; he thought that their company could afford
greater facilities to the public than any other
company, and they had nothing to fear. They
had peculiar advantages ; their cables could be more
easily kept in repair and maintained in working
order than the French line, which passed through
comparatively shallow water, and was therefore not
so secure as their lines. The Atlantic Company
were not entitled to such good terms as those pro-
posed, and the importance of the French line was
overrated. He concluded by moving an amendment
to the effect that it was desirable to have more time
for the consideration of the agreement, requesting
the directors in the meantime tolprint the agreements
and other documents, and send copies to every
shareholder, and to call a meeting in March next to
consider the whole question.