The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1859-06-16
$l,144 900
ATLANTIC TELEGRAPH COMPANY

Inc directors OF TINS company state in their re-
port that they are at length in position to Law be-
lore an extraordinary general meeting of the COM
pany their views and recommendations as to the best
available means of carrying forward this important
undertaking to successful and profitable termina-
ton. They have now concluded subject to the
approval ofthe shareholders a provisional arranpe-
ment with Her Majesty's government, the terms of
which it is hoped are such as NAV, in combination
with the auxiliary plans hereafter referred to, guar
anty to the prOprietors the successful completion of
the work. This plan the directors hope will enable
them to raise the further capital for the construc
ton and submersion of one new cables.
The arrangement Professionally entered into with
the government by the directors is as follows:
Article l. dividend of per cent per annum to be
guaranteed for 25 years, upon such portion of new
capital as shall be called up and expended in es-
tabllshlng communication with America, not exceed
ing in the whole the sum of f600 000 this guaranty
to commence when the cable has been success
fully laid and to subsist while it is capable of being
worked at the rate of one hundred words per hour
Art 2. minimum sum of 100000 per annum to
be paid to the company for government business
during the time the new cable is capable of being
efficiently worked as above. Art. 3. The company
to be allowed expend S2O 600 ont of the new
guaranteed capital in attempts to make the existing
cable available for business. Art 4. Ii these at
tempts are successful, the government will imme-
dlately commence to paw minimum rent of Ella O0O
per rent to be increased to 900 per
annum as above so soon as the cable is brought
into successful working order. Art 5. The existing
arrangement OF the company with the government of
the United States is not to be nterfered with Under
that arrangement the Atlantic Company will be enti-
tied to minimum rent of ST 900 per annum: for the
business of the American government so soon as
the communication is established with Newfound
land. Art. 6. The Atlantic Telegraph Company
are to transfer to Her Majesty's government that
portion OF their privileges, under their agreement
with the New York, Newfoundland and London
Telegraph Company, whereby they derive the ex-
elusive right of landing on the shores of New
ioundland cables intended to connect Europe with
hot h,,f . ~
to any other company or persons any right of land
ing cables in Newfoundland so transferred to them
unless the guaranty referred to under Arts and
shall have proved efficient in raising the reuu-
site capital until the instrumentaity of such
capital Geographic communication shall have been
established across the Atlantic; it being understood
that in case of failure, either to raise the capital or
to submerge the cable, with such success as to be
enabled to work at the rate of one hundred words
per hour required by government the company
shall permanently revert to its present position
in respect to all its privileges, including its
elusive rights now existing under the agreement
with the New York, Newfoundland and London
Telegraph Company. The guaranteed
enue for the business of the governments of
Great Britain and the United States, exclusive of
commercial messages, will not amount to less than
f34 600 per annum; thus enabling the company
to extend valuable facilities to the public, without
risk to the dividends of the shareholders. The
plans contemplated in aid of the government CON
tract as follows: 1t is proposed to take out a
policy of insurance, guarantyng the successful
submersion of the cable, whereby, in of frac-
ture during the paying out, any portion submerged
and lost shall be paid for at fixed rate by the I'M
derwriters; this policy to be open, not only to Or
binary underwriters, but to all who may be will
ling to accept a share in the risk, particular ly to
those who may become subscribers to the CAPT
tai. These would thus become their own under
writer's and would receive back from their calls the
proportion of premium on the risk they might as
sumo There can be difficulty in completing
such policy, looking to the greatly increased pro-
bablly OF success arising out of the knowledge de-
rived from past experience in LAYING Atlantic cables
1T Is further recommended by the directors that the
manufacture and laying of the next cable should be
let by contract IN form securing to the company
by means OF heavy and substantial guarantees
not merely the successful submersion of the cable
but its perfect manufacture and efficient electrical
working for considerable period after it shall
have been laid, and in action between shore and
shore. The directors have reason to know that
firms of unquestionable responsibility and expert
| ence VIII be ready to come forward and accept
contract on this basis giving security for the due
ana mai accomplishment of the work. These ar
Tangements will, in the opinion of the directors
form basis upon which success NAV very sanquine
iy be looked for. The board propose to invite the
sanction OF the shareholders tC the issue of prefer
gnce shares 10 an amount not exceeding f60O, 600.
IL is proposed that these shares shall be f5 five
pounds each, one half to be paid up on allotment
and that they shall be entitled to ali the net nro
! OF the company up to eight per cent per apnum
the government having guaranteed that rate durinS
the time the cable is in working order, upon the
amount caiied up ana employed The further pri-
viege will attach to these shares of dividing nro
rata with the original capital any surplus of profits
| that may remain after the eight per cent prefar
ence has been provided for. The directors intend
to propose that FL 500 per annum be voted to the
board after Its reconstruction the payment thereof
being contingent upon the necessary capital being
raised to enable the company to contract for new
| cable.