The Sun.
London, England, 1868-08-19 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 &Erlanger, of Pads, and Mr. Julius
Reuter, of London.
This concession bears date 6th Jay, 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 Gwernment 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, and an uninterrupted route from England to the
United States will be established. _ _

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, the 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 i he largest possible traffic.
The 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 rate the line will find constant em-
ployment.
The power of transmission of the now 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 300 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
New York direct or to a point between Boston and New
York, with a special line 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 sufficient 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
£BlO,OOO 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-e charge of the submersion of the cable. Sir James
Anderson will act on 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-
graph Construction Company for the Atlantic and Anglo-
American Telegraph Companies. The cable will be pro-
tected by tar like the 1865 cable, and advantage has been
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 knot. 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 Lis 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 in 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 net
profits, and after payment of a dividend of 10 per cent, to
the Shareholders. These contingent profits will, for con-
venience, be attached to a portion of the fully paid shares.
from
o f
tthisho undertaking that t h e
Cofnocre
theirss ion aire slook oremuneration,nly
and for the repayment of the expenses thoy have already
Copies of the Agreements and of the Memorandum and
incurred.'
the success
dbe. seen
Articles of Association, and of the Concessions, lie for in-
spection at tho Offices of the Solicitors of the Company,
Messrs. Bischoff, Coxe, and Bompas, 19, Coleman-street.
Prospectusesneat theaud
OfficesFo s
oo
ff
the
c Applicationom p an
Company,
for
Bartholomew Shares may
be
eoouaid 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, 1868.
Baron Emilo d'Erlanger, Julius Reuter, Esq.
Dear Sirs,—With reference to the route projected for
the cable between Brest 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 tank there is no
possibility of ice, or of any other agency that can be sug-
gested, injuring the cable. The northern edge of the
Grand bank was avoided, becanse it is uncertain at what
depth the icebergs ground. They are said, upon good
authority, to ground at times in 90 fathoms.
It is not certain at what depth the vessels employed in
the seal trade may sometimes choose to drop an anchor
for the purpose of keeping their station in the track of ice
floes. _ _ . _

These dangers are avoided by the track chosen for the
proposed cable, and I am justified by my own experience
in saying that the track from the southern edge 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 anchorage resorted to by the fleet
of fishing vessels.
The cable upon the Milne bank and from the Grand
bank to St. Pierre, and thence to America (upwards of
1,200 miles), will be laid in water of such easy depth that
repairs will be a matter of certainty ; and wo are justified,
from the soundings which already exit, is affirming that