The Sun.
London, England, 1858-08-02 00:00:00

The Com SECRETARY—CharIes Lennox Peel, Esq.
Company has been formed for the of establishing Tele-
graphic communication between Englandpurpose and India by the died Sea,
under concessions granted by the Turkish and Egyptian Govern-
ments.
The delay which has hitherto taken place in the prosecution of
this undertaking is partly to be attributed to the indisposition of the
authorities, until recently (when the paramount importance of the
object !evolved forced it upon the attention of the Government), to
grant a rmaranee, and partly the doubts entertained of the ability
to taY a Telegraph in the Red Sea.
, These difficulties are now removed. Captain Pullen, of her Ma-
jesty's ship Cyclops, who was sent by the Loris Commissibners of
the Admiralty to take soundings in the Red Sea, has reported his
opinion that "no place can be better adapted for laying down a
telegraphic cable than the Red Sea ;" 'and the Government have now
agreed to guarantee interest, at the rate of 41,1, per cent on the
capital. to commence from the time of payment of each instalment,
and to continue for 50 years certain.
A provisional arrangement has been made with Messrs. Newell,
the em nent contractors for submarine telegraph cables, for teh fin-
Mediate laying of tile cable at their own risk, and at a fixed cost ;
the terms being such as to leave a surp us capital of about 300,000/.
The arrangements for the establishment of a telegraph between
Europe and Alexandria have also been completed, and the line will
be laid this autumn.
The immediate operation is confined by the terms of the arrange-
Illent with the Government to completing the line between Alex-
andria and Aden, which is about half tile whole distance.
The terms of arrangement with the Government are substantially
sis folio ws ?
ABSTRACT OF THE TERMS AGREED WITH THE LORDS
COMMISSIONERS OF HER MAJESTY'S TREASURY.
The Red Sea and India Telegraph Company to contract with the
Lords Commissioners of her Majesty's Treasury for the construction
Of a line of Telegraph from Alexandria to Kurrachee, by the Red
Sea and Aden, on the following terms
I. The immediate operation is to be limited to Aden.
2. A capital to be raised not exceeding 800,0001., and 5 per cent.
Upon the whole amount of capital to be paid up forthwith.
3. The Treasury to guarantee a rate of interest on the amount of
capital paid np frost time to time of 4% per cent. per atuium, pay-
able half-yearly, for the term of 50 years certain.
4. The portion of the line between Alexandria and Aden to be Im-
mediately commenced throunli the agency of contractors of the
largest experience in telegraphic operations, who are to lay the line,
and transfer it to the Company in an efficient state, on their own
responsibility.
5. The Company to work the line, and to keep proper ace: tints,
6. The appropriation of the half-year's receipts to be as follows :-
Ist. To defray the working expenses.
2d. The surplus receipts above the working expenses to be applied
in relief co' the Government guarantee.
to 3d. If tke surplus receipts should exceed the guarantee, one-third
repay any advance of interest made by Government, one-third to
aPPlied towards forming a reserve fund (not exceoding 80,0001.),
the remainder to increase the dividend of the shareholders up
to I 0 per cent. per annum,
4th. If there should be no debt for Government advances, and no
ccfl riencY in the Reserve Funi of 80,0001., the whole profits to be
a-Plied to make up a dividend at the rate of 10 per cent.per annum.
2tn- All surplus and unappropriated profits beyond 10 per cent. per
Minn to be applied either in reduction of the tariff, the creation of a
nind to redeeu the guarantee, or otherwise, at the discretion of the
130Yernaleat.
7. The reserve fund and surplus or unemployed capital to be ap-
plicable to the maintenance or restoration of the cable, and to ma %e
e°°4 any d ficiency in the receipts to cover the working expenses,
alsould such a contingency ari.e, so that the Government guarantee
" m
43i Per cent. shall be the minimum rate of dividend.
.5. All Government messages, subject to the terms of the coes-
Eons from the Turkish Government, are to have priority over pri-
vate
messages, but will be paid at thesame rate.
9. The Lords' commissioners to appoint two ex-officio Directors,
Without whose sanction and concurrence no contracts or other pro-
ceedings of the Company will be valid.
10. In case of default by the Company In completing or reinstating
the line, oravorking it efficiently, the Directors of the Company to
be required to give up the line to the Lords' Commissioners of the
Treasury, on the latter paying off the capital paid up, with Interest
at 434 per cent. per annum from the date of the last dividend.
11. The powers to give effect to this arraneement are to be ob-
tained through a private Act of Parliament, to be applied for with
the sanction of her Majesty's Government.
- An estimate ofthe returns, which has been carefully prepared, and
Which may be inspected at the Company's Offices, shows a very large
rate of profit from the undertaking, apart from the guarantee. This
estimate Will be easily checkel and corrected by those connected
With the trade of India, China, and Australia, to whom it will be
tyklent that all orders for produce, Insurance, shipments, arrivals,
c7departures, accidents, change of destination of vessels, &c., &c.,
ortoulhrn
dobe, and the certain subject of telegraphic communication.
_ Applications for shares may be sent to the Brokers, Messrs. Scott,
Scett, 16, Thogmorton-street, City ; or to the Coin-
TY,=, Offices, 8, Moorgate-street, in the annexed form ; but no ap-
;leatinn will be considered, until a deposit of one pound on each
are applied for is previously mode to Mess s. Glyn, Mills, and
_or; or Meters. Smith, Payne, and Smiths, the Bankers of the Corn-
" Y.
to The deposit will be returned if the application is not ac-
ceded .

FOR II OF APPLICATION FOR SHARES.

No,
To the Directors of the Red Sea and India Telegraph Company.
I , you to /
flentlemA
Z ---u,—llaving paid to Messrs. , to your credit,
shares of the above Company,
lilt,i.the Per share, on
c request you to allot me that number of shares, and I agree to at-
satne, or any less number, when called upon to do so, by
Zric advertisement, and to pay a further sum of one pound per
teitesen Allan:tent, or in. default, that the deposit paid shall be for-