The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-05-23

Newfoundland and Ocean companies, carrying into
effect the American branch OF the original scheme
Here, then we have three telegraph companie.
carved out of one. The object is the same, but the
responsibilities divided. The principal managers
virtually, if not identcally the same; but they
now act through three organizations instead OF one
These managers are the principal stockholders OF the
Newfoundland and American Telegraph Companies
heavy stockholders in the Atlantic Telegraph Com
pany, and are the orignators OF the whole scheme.
If further evidence were needed to prove com
munity Of interest between these three
Is found in the recent proceedings OF the Atlantic
Telegraph COMPANY in England, constituting some
of the principal stockholders OF the American Com
pany who are also stockholders OF the Newfound-
land Company, honorary directors OF the Atlantic
If any doubt could exist as to the ultimate object
of this scheme it is solved by the efforts of its
thors to hedge round the continent and the islands
of America, so as to render impracticable compet
ton with them by other telegraph lines across the
Atlantic Ocean, and even to extend their monopoly
into the United States.
Their Newfoundland monopoly is as exclusive
as language can make it. No other com
pany or individual is permitted to "touch'
the shores of that island by q telegraph
line Of any sort. If, as has been represented
that is the only point where the ocean can be crossed
by telegraphic cable, that grant is of itself bar
to every other enterprise Of the sort But lest
it should be found practicable to land Geographic
cable at some point further west, the managers OF
the Newfoundland monopoly sought to cut off the
monopoly to the coasts Of the other British pro-
vinces and the United States
They sought, and claim to have secured, the ex-
elusive right Of landing telegraphic cable In the
province Of Nova Scotia.
They sought, and actually procured, from the Ie-
gislature OF the State of Maine act prohibiting
all other parties from laying submarine cable fro.
State for twenty-five years. The title Of this act
and the prohibitory clause, are in the following
words, Wiz
AN ACT GRANTING CERTAIN PRIVILEGES YoBK NEw
FoUNDIArD LONDON TE1KGRAPH COMPANY.
Seo l. For and during the term OF twenty i've years
from and afssr the time when the New York Newicuod
The Iess.surs Of NswSunel.nd for 4. PURPOSE soOs
others, or establishing lne OF teegTaphic communca
Gn SHe w Or 81 an
associated line lines telegraphc communication be
tween America and Europe, and 30 long during
regularly maintained by said company, aud all matters
passing thereon for the United States be trans nitsed
Telegraph Company, lcssses Of tho Maine Telegraph
Company other or persons body or bodies po
Into CT Corporate .h. De permitted 70 s.'end TO- enter
thereof OF the Islands under It's Jurisdiction with aay
teegraphic cable, wire or other means OF te!egssphc
communication from any other province. State county
(country) place whatsoever beyond the continent OF
America
This act was approved April 10, 1856. 1t does
not the title enormously represents, grant any
privilege TO the New York Newfoundland and Lon
don Telegraph Company, but merely prohibits any
other party from landing Transatlantic telegraph
cable in the State Of Maine. And this prohibition is
equally for the benefit Of that company and Of the
American Telegraph Company for whom it purports
to secure monopoly of the foreign telegr aphc
respondence through the State of Maine. Indeed,
nothing could show more strongly than the pro-
curement of this act the identity of interest and
management of the American and Newfoundland
companies.
Azealous effort was made to secure similar legis
lation in Massachusetts,, but without success
cd m nfc ip,ifa n
elsewhere these instances are abundantly sufficient
to show the design Of these parties to hedge round
the continent of America by exclusive grants and
prohibitions, so that the United States should be
nnapproachsbIe, geographically, otherwise than
through their line from the coast OF Ireland, and
through the Newfoundland and American lines
chiefly owned by them or under their control; and
this monopoly they are endeavoring to extend prac-
tically through the several States
Your memorialists further represent that the aid
of the governments Of Newfoundland, OF Great
Britain. and OF the United States has been sought
and obtainei 10 establish this monopoly a basis
which shall forbid all attempts 10 get up compe-
ttion.
The government of Newfoundland in addition 10
the monopoly Of fifty years Duration gave the com
pany about twenty-five thousand dollars in cash for
clearing bride path necessary TO the construction
and repairs OF their line Of telegraph guaranteed
six per cent interest about two hundred and fifty
thousand dollars of bonds issued by them, and
granted them ff,y square miles Of public lands when
the line on the island should be completed and
nected with the lines on the continent, and fifty
square miles more when the communication with
the coast of Ireland shall be established. These
grants were made, il will be remembered, to COM
pany which embraced in its plan the building and
hiring Of lines in the United States and laying tee
graphic cable to the coast Of lreland and the grant
OF fifty square miles Of the lands is expressly in
sderation OF the successful accomplishment OF the
latter enterprise. But whether the right 10 the
lands as well as the enterprise has been transferred
90 the Atlantic Telegraph Company is TO your me-
uut hay rpls on In hp-
lieve il has not; nor do they know how or by what
authority the ocean part OF the original scheme has
been severed from the Newfoundland Company, and
vested in another company, though they do not
doubt u was n measure projected and matured by
the chief managers OF the original company
Your memorialists further represent that the plan
Of transatlantic telegraph, though perhaps orr.
ginally projected az n noble enterprise, in which
is promoters expected TO receive their chief
reeompense in the glory Of success aud the gratitude
OF nations, has been since converted into an
nous scheme OF monopoly, aiming to control the
telegraph business Of the two bemispheres for the
purpose Of securing directly and indirectly. nordi-
late gains 10 a few individuals. The facts Of the
case, In their estimation, warrant this conclusion
Your memorialists have already shown that this
measure IL but part OF more extensive operation
from which IL has been nomnally severed, though
still ehectuay united In interest II IL still
NAMED under the direct control OF the Newfound
land Company. As a separate concern, the stock Of
the Atlantic Telegraph Company was raised at least
marked Private" The amount Of stock was
Fixed at $500 900, since increased TO eJ5o0o0 equal
20 about 81 10000
That circular represented that, upon a very mo-
derate computation Of profits the capital would yield
q return exceeding 40 per cent
These profits are not 10 he divided among all the
stockholders in the ordinary way but half Of the
amount over 10 per cent is to go TO four individuals
three Of them British subjects, and one Of them
citizen Of the United States.
That citizen Is the gentleman who procured the
act of the Legislature OF Newfoundland incorporst.
ing the New York, Newfoundland aud London Tele.
graph Company; the same who got up the American
Telegraph Company; the same who doubtless origi.
mated the present plan Of the Atlantic Telegraph
Company: and the same who Is now said to be
entrusted with the duty OF experimenting the laying
OF the Atlantic cable.
or the one half Of the profits over 10 per cent this
gentleman Is 10 receive thirteen parts out OF twenty
-four, which II the estimate Of profits held out TO