The Sun.
London, England, 1868-08-17 00:00:00

ABRIDGED PROSPECTUS.

The object of the Company is to establish and work a
direct line of Telegraph between the Continent of Europe
and the United States of America, in accordance with the
concession granted by the Imperial French Government
to Baron Emile d'Erlanger, of Paris, and Mr. Julius
Reuter, of London.
This concession bears data 6th July, 1868, and confers
the privilege of laying and working Submarine Telegraphs
between France and the United States. The French Go-
vernment binds itself not to grant any other concession
for lines between France and North America during the
period of twenty years from the Ist September, 1869.
A concession granted by the State Legislature of New
York, for landing and working cables between that State
and France, has been secured.
Arrangements have been made with the Submarine
Telegraph Company for the exclusive use of one of their
wires between England and Dieppe, from which place the
French Government will construct a special wire to Brest
direct for the Company. By this means, the valuable co-
operation of the Submarine Telegraph Company has been
secured, awl an uninterrupted route from England to the
United States will be established.

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The French Government has promised its support and
assistance to the undertaking, and an honorary committee
of the highest position has been formed in Paris.
It has been generally acknowledged that, both for poli-
tical and commercial reasons, tho laying of a direct and
independent cable from the Continent of Europe to the
United States was only .a question of time, and consider-
ing the extraordinary increase of telegraphic messages
wherever new facilities are afforded, it is to be expected
that the new undertaking will create fresh traffic, inde-
pendent of that of the old companies, sufficient to insure
earnings of equal if not greater amount.
It will be the object of the new Company to fix such
rates for messages 'as will secure the largest possible traffic.
Tho price to be charged is intended to be £2 for a mes-
sage of 10 words, and it seems not too sanguine an expec-
tation that at this rata the line will find constant em-
ployment.
The power of transmission of the new cable is estimated,
according to the report of the engineers and electricians,
at a minimum of twelve words per minute, which,.allow-
ing 14 hours a-day for waste time, and consequently only
ten hours a,day for actual work, and taking 30U working
days in the year, giVes, at, the rate of £2 per message, an
annual income of £132,000. Practically, the proportion of
days and hours lost would in all probability be less than
is assumed in this estimate. The working expenses of the
new line may be calculated to amount at the utmost to
£30,000 per'annum.
The proposed cable will be laid in two sections—the first
from Brest, in France, to the French island of St. Pierre,
off Newfoundland; the second from St. Pierre either to
pr_en- York direct or to a point between Boston and New
York, with a special lino to the last-named city.
The length of the cable is as follows:-
Ist section, from Brest to St. Pierre 2,325 miles.
2nd section, from St. Pierre to the United
States, about 722 „

3,047 miles.
To this length an amply mill...slant amount of slack will
be added.

A contract has been entered into with the Telegraph
Construction and Maintenance Company to manufacture
and lay the cable for the sum of £920,000, of which
£310,000 is payable in cash by agreed instalments during
the manufacture and shipment of the cable. The remain-
ing £llO,OOO will be payable in the following manner, viz.,
£BO,OOO in fully paid-up Shares, after the section from
Brest to St. Pierre shall have been laid and tested satis-
factorily for thirty successive days; £lO,OOO in cash after
the section from St. Pierre to the United States shall have
been laid and tested for thirty days, and the final payment
of £20,000 in fully paid-up Shares after the entire cable
shall have been six months in satisfactory operation.
Allowing £lOO,OOO for the construction of the land lines,
engineers' charges, supervision, and all expenses up to the
opening of the line, and deducting the consideration here-
after stated to be given for the concession upon success,
there will remain a balance, by way of reserve, of £BO,OOO.
The Great Eastern will be employed in laying the deep
sea portion. Sir Samuel Canning with a competent staff
will ha .-e charge of the submersion of the cable. Sir James
Anderson will act ou behalf of, and watch over, the in-
terests of the Company.
The cable is contracted to be shipped in June next, and
the line is expected to be open for traffic in the course of
next year.

The cable will be of the best construction, and generally
of the same description as those manufactured by the Tele-
graphCo TelegraphnstructionCcoommppaannyiefosr. thle, Atlantic and Anglo-
Americantected by tar like the 1865 cable, andhaedvcaanbtlaege will
habse
been
n-
taken of all the experience since gained. In accordance
with the unanimous recommendation of the engineers and
electricians, the weight of copper in the conductor has
been increased from 3001 b. to 4001 b. per knct. By this
means greater rapidity of transmission is obtained.
In tracing the route a detour has been made to avoid the
risk of icebergs and anchorage on the banks of Newfound-
land. It is on these banks that all accidents to the exist-
ing cables have occurred.
Sir James Anderson has recorded his opinion that the
object thus sought for will be fully attained.
The Concessionaires, by an agreement dated 3d August,
1868, and scheduled to the Articles of Association, have
agreed to transfer to the Company their concession from
the Imperial Government of France, together with all
their rights under the concession from the State of New
York, and the benefit of the undermentioned agreements,
and to defray all expenses up to the registration of the
Company iu consideration of 5,000 fully paid Shares, to
be allotted to them whenever the Cable shall have been
successfully laid, and shall have continued to work satis-
factorily for 30 days. They will also be entitled to receive
one-fifth part of the surplus net profits in each year, after
setting aside a reserve fund, equal to 5 per cent. of the not
profits, and after payment of a dividend of 10 per cent, to
the Shareholders.i These contingent profits will, for con-
venience, bo attached to a portion of the fully paid shares.
It will be seen from this that the Concessionaires look only
to the success of the undertaking for their remuneration,
and for the repayment of the expenses they have already
incurred.
Copies of the Agreements and of the Memorandum and
Articles of Association, and of the Concessions, lie for in-
spection at the Offices of the Solicitors of the Company,
kiessrs. Bischoff, Coxo, and Bompa., 19, Coleman-street.
Prospectuses and Forms of Application for Shares may
be obtained at the Offices of the Company, Bartholomew
House, and at the Union Bank of London, Princes-street,
and their various branches.

COPIES OF REPORTS OF SIR JAMES ANDERSON
SIR WILLIAM THOMSON, MESSRS. VARLEY:
CLARKE, FORDE, AND JENKIN.
London, 3d August, 18G8.

Baron Emile d'Erlanger, Julius Reuter, Esq.
Dear Sirs,—With reference to the route projected for
the cable between Brost and America, I have recommended
it for the following reasons :
By keeping in the 500 fathom line upon Milne bank and
around the southern edge of the Grand bank there is no
possibility of ice, or of any other agency that can bo sug-
geSted, injuring the cable. The northern edge of the
Grand bank was avoided, because it is uncertain at what
depth the icebergs ground. They are said, upon .good
authority, to ground at times in 90 fathoms.
It
itdePtthe vessels employed in
choose to drop an anchor
the
snisonotrtacdeertianian sometimesayt,
for the purpose of keeping their station in the track of ice
floes.

_.„.
These dangers are avoided by the track chosen for tho
proposed cable, and I sin justified by my own experience
in saying that the track from the southern (Ago of the
Grand bank to St. Pierre, and thence to the place of land-
ing in America, is entirely free from any danger from ice,
and does not cross any anOorage resorted to by the fleet
of fishing vessels.
The cable upon the Milne bank and from the ,
G-
bank to St. Pierre, and thence to America fr• -.nu
1,200 miles), will be laid in water of sue' ~.i.pvrards of
repairs will be a matter of cortair4 easy depth that
from tho soundings which ; awl wo sro fustiflod,
already exist, ixt affirming that
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