The New York herald., 1876-12-27

The receipts of this company at three shilngs .
word doing only scventyfour per cent OF the traffic.
are great they eighteen months ago al four
shlngs word. The reduction of rates from four to
three shillngs word was forced upon this company
by the action OF the Direct Company.
Tho capital OF the Direct Company is FL 300 00o The
following statement regarding th! company from tho
HERALD or the Goth inst
The receipts Of the Company messages
fass during the last three months averaged at least
she reat paid to and otherwise Tor special
not hs az .sgaxsss sssssd gsooe sSnnn de-
s % as on hs s the
900 sufficient place cent Of the income
Is The domp!y SsT
IS Der osn Of ,Gs hs At
gregate capital Of the two companies.
Here. then, is an Atlantic cable company, having
capital not equal to twenty per of the capital
OF the Angle. o.American Company, doing twenty-sx
per cent OF the whole traffic. and that against all the
immense facilities afforded to tho Anglo.Amercan by
the Western UnIor Telegraph Company.
Cheap telcgraphy between tho United States and
scrpiion here Of So, 600 600 in gold and the ratcs
could DO reiuced ut least oncthrd for tho public and
onehalf for the press The presen, government Of
very wealthy aud owner OF the most extensive cotton
goods manufactures in France, the privilege Of esab
and North America tho following notice Of which was
published in August last
The French Company Of T.ssrspy from Paris to New
York have announced that subscription for $50 shares
ed f 'ssa a. oss 5sa OF q the
anational elesrsphic acaon between France
sa sass the S f. s az IS.
French government II app that in 1857 cable
sai
sss
pany groase the most profitable results and that
ssaoS the line during the csmag year, asy but
sS %sss s a; 1s % Sass ARE
q Sns.r ps
pei senator Court Dc yalon ucnora Councillor q tho
Ears the Marquis Dc T. chsxalis ef the
Ocer Of the Legion Of Honor, aud De Chauvin
l had several conversations with N. Pouyer-
Qucrtier last winner on this SUBJECT He informed me
that he with nine Of his friends all very wealthy had
agreed to furnish tho required capital, but the gov
ernment were unwilling TO make the grant mo.
nopoly and nsistcd that II should be open public
subscription. He also told me that maximum tariff
fixed by the government much below tho tariff of
tho French cable, which was s. so per ten words
and that no salo 10 magamation with any ohcrA-
iantic cable could be made. ! have reason to know
States to tho OF this proposed company tho cable
from Brcst 10 ST. Pierre, and thence to New York,
be reduced at least thirty per cent Tho direct cable
to France would save tho transit charges OF the British
telegraph and Of the Channel cables all kilograms
bewoen the Continent Of Europe and the United States
Should this cable be laid and the prices roducod
dcspatches for ayear would be f5o4 900, instead OF
1851 900 for the present year. calculating the Same
number OF dispatches; but surely therc would be
material Increase Of dispatches IN consequence Of the
reduction OF rates
Grant TO the Anglo-Amercar Company ono half the
dispatches and TO the Direc. Company fourth
TO the French Company the other fourth tho account
will stand thus:-
Capital Receip.s
Ang o-Americsn. ........... 1000. 900 2si, 900
Direct Cable conpany...... l'soo.o ooo $4,000
French Cable Company. 300, 600 12d.ooo
lp.Am M loan veil 4 n
and tho Direct Cable and French Cable each lilo per
cent II Is very evident that the reduction OF rates
Will so increase the trafc THAI the receipts would
show profit OF twelve per cent per annuu, aud Il
would greatly increase yearly
Would 1t not be well for the press 10 meet with the
bankers principal this question
and TO correspond with Senator PouyerQucr,icr with
out delays Yours. ". c. BARNEY.
AMALGAMATIoN OF THE CABLE COMPANIES,
The following, in reply to letter signed "M" ad-
vocatng working arrangement between the Direct
United States Cabo and Anglo o-American Cable Com
panies, appears In the London Times OF December 22-
SlR-Your correspondent IN" argues moro Inscn-
iousy than correctly respecting distinction between
and permanent working arr ingement between Them
selves rs far regards the public, however they
the samc for the effect is keep by putting
end to either OF the companies endcavoring obtain
The good viii OF transmt,crs Of messages by u low
tarih. Indeed msy go fur hcr and say that an
amsyamation would DC preferable TO joint working
arrangement, Tor the would reduce work.
ing expenses, whereas the latter, as your corrc-
spondent points out, would, without efcciins this OBJ
ject increase the of transmission OF messages by
putting an end to rebates. The Direct Unicd States
Cable Company has one cibc stretching from Ireland
to the United States aud touching Nova Scotia tho
Anglo Company has cable IRON France 70 tho
United States touching ST. Pierre three cables be.
ireland, Newfoundland, and III mbcr OF short
cables between the latter island and Nova Scotia.
owing to Anglo messages hvlns TO pass over an ey-
tensive system OF land lines message between New
YORK aud London Gnu be sent in shorter time over
the Direct cable than over the Anglo cables. Tho
alp al 1nhA ring lnr
tage OF having only cable, and although 1t
has not had tmo for full development, has
already obtained an average OF twentysix per OF
the gross receipts OF both companies. No Atlanlic
cable company requires more than two cables; al be.
Cable wants Is second cable. With it, II hardly
be doubted that II would have one half OF tho gross
ceip.s Of Atlantic Telegraph, and on the whole OF
thcn-cap:ta would be able provide amply for IFS
working expenses and It's reserve fund, aud pas a
handsome dividend to its shareholders aud maintain
moderate tariff II Is true that the dividend the
enormous capital Of the Anglo company would In this
case be small, but this would bc the fault OF those
who more than double the real capital OF that
company by unrcmuncrsive expenditure ana
paper issues The capital OF Tho Direct company
was originally subscribed for the purpose
OF putting down monopoly rates, calculated to pay
dividends upon G., 600 GEO. There are in America ana
England numerous scndcrs OF messages to whom the
difference between low and high rates a difference
OF many thousands per annum working arrange.
ment. therefore, between the two companies with q
view 10 Keep up rates. would inevitably lead to the
formation o nov company with cabios across
the Atlantic and capital Of nDont e. 600 900 This
public, but would render II Impossible for tho joat
companies to pay anything beyond nominal dividend
upon the capital OF the sill Iurthcr amagamatcd IN
dcrakncs Taking into consideration the strong prob
ability OF working agreement leading the lorna.
ton Of new company, question whether any
person with intention TO do more than sell
bis shares In the Direct company at u profit
would advocate such an arrangement The partcipa.
or the Direct company tue gross receipts OF the
ADgo company during a temporary interruptions.
owing TO brcakage s all that tho Direct United State,
Cable would receive for tying itself 10 company
which must be ruined II a new Atlantic company bo
formed, and for agreeing to limit It's shares in tho
trac 10 percentage calculated on its present earn.
ings only Even assuming that the Direct company
intends 10 lay down second cable to conpce for
one-hali OF tho gross traffic this advantage would DO
bought at far too high cost. Il may be asked whv
on the certain prospect Of ruin in the long run
by entering into working arrangement with
no q of tha eh.