The New York herald., 1877-02-18
THE RIVAL CABLES.


SIR JAMES ANDERSON, OF THE ANGLO
AMERICAN COMPANY.
LONDON. Feb. II, 1871.
18th inst IL deals further with position OF sub.
Nc. 66 OLD BOND STREET.
LONDON, Z. c., Feb. IL, 1877.
srs-In tho Times OF the 18th inst you narrow the
question at issue between the rival Atlantic cables TO
two or three definite ponls-vz, the enormously
taned by practical monoposts with the large capital
Fl, COO OoO much OF which stands for no real out
dividend, any u ' whereas ST. a rival. with a. half Or
nth Of the capital can make Dront u
give reply 10 these points winch Will remove their
apparent Importance The 81, 900 represents the
companics-the ngo.American, French Atlantic aud
Newfoundland. IL represents besides the capital OF
the lrsi Atlantic cable laid IN 1855, which FIRST estab
lished the important TACT that distant parts OF the
world could be united by submarine cables across the
broadest ocean, but this capital is worth to-day in tho
market about half nominal value ana for my argu.
ment will take The amount-namely. t35O0, 900.
although the i've cables aud their connections which
constitute the assets OF the Anglo Company.
could under any conditions be created Tor tnat
The value OF the rival cable VIII not venture to
less Than 81. 300, 900, the nominal value
which Is, however about flO0 per mile more than any
OF Anglo cables. rhe total capital ofthe two CON-
panics would under this assumed estimate be
"a 500 600 The gross OF the two companies
present f6, 100000 The minimum reserve TOR both
Companies should be El25 0O0 and the working
penses Gl50 o0O leaving f354 QUO Tor dividends,
~ S. per cent TO be divided between cables assuming
the present ,arin TO be maintained AS don't know
know any Insurnountabe difficulty TO prevent the
repair Of all these cables, take the whole
of the CABLES a,d as certain TO be at work
fact that, IRON the 4h 10 the lth OF May 1915, even
with cables America was three days without any
com with Europe. This certainly
establishes the fact that reserve carrying power is
essential and that the present reserve is not exces.
svc All lighting, extra repairs and rebates would, OF
course reduce this divdend OF e. S. per cent Does
dispose OF the point that the enormously high
tariff at the root OF the present opposition 10 the
larger companyS Can any amount OF lighting make
good thing OF proportion Of 81 S. per cent upon
the capital have aSsumedy And Is II possible should
The Anglo lower IT'S tariff, that any rival Will get
than Its proportonY Assuming tho tnrifl 10 be
one shilling per WORD, neither company VIII ge, any
continue until traffic developed so as 10 oil all the
caUes, in which case more capital must be expended,
or the telegrams would be seriously delayed and
there would DO reserve Tor temporary break
ages IL should DO remembered that the capacity OF
cabc is limited, and should u number OF tho cables
break, as they have done and will do from time to
time then the will be badly done the mcagre
revenue may hardly suffice for repairs and working
expenses and the total absence OF dividend Will
not encourage the laying OF moro cables
dIspose OF the assumed value OF the monopoly
and the monstrously high tariff II is just possible
by economy OF working expenses und friendly alliance
thut both companies make fair dividend at the
present taril but unless the maintenance 0e less
costly with both companies than 1t has hitherto been
even he moderate dividend nave named Is uncertain.
No fight between the companies can be OF any dura-
on. and cannot be OF any publc bene9! that these
evitably combine and charge any tarif they please,
unless government interteres, and tLink can now
show this Is not the clumsy cxpedent II seems ut
first sight All tho experience OF Europe including this
country has proved the the Govern
menus everywhere on this side Of the Atlantic own the
inland telegraphs and by this expedient have gwen
cheap and etcicnt tclegraphlc service TO the world
These ADMINISTRATIONS every three wears appoint dele.
gates o discuss the taris net only In the Interest VI
government but OF the general International pub
lic and they listen attentyely to all demands Of rival
companies and seek where practicable to find basis
herent to the European convention. Let II exercise
say What shall be the tarl which cables connecting
this country with any other should charge. The
public win thus bo protected, ,,.., needless less
the security and maintenance OF submarine
cables obtained. II this obvious and simple
me hod is not adopted, there two other plans by
winch minimum tariff can be adopted consistently
with the maintenance Of this class OF property, and
your obedlent servant. JAMES ANDERSON.
MR. ANDERSON ANSWERED
The subjoned is o reply to Sir james Anderson's
letter in the Tunes -
The DIRECT UNITED STATES CABLE Co.. LIaIrRp)
PALMGRsToN BUILDINGS OLD BROAD STREET,
LONDON, Feb. IA, 1877
To THE EDITOR or TINES
observe In tho Times OF to-day letter, signed by
Sir james Anderson referring 10 tho question OF Az.
antic telegraphy. As you have Yourself already dealt
with that part Of the question which affects public in
teresis only beg that you will allow 10 correct
errors into which Sir James has no doubt mad
believes that the 4th TO the 9Th OF May 1875,
America was without any telegraphc communication
with Europe AS regards his company lthe Anglo
American) the statement is far correct, that
municallon its lines was entirely interrupted
the 4h to the th ana from the sth to the 9th OF
May; but regards our company It's cables trans
mted those days on an average TO- O0O words daily
The whole OF the tecgraphic traffic between the two con-
tinents carried by our company and communication
cunnot therefore, said have been interrupted.
Sir James nicrs from the capital OF our company that
the cost Of us cables is f1OO per mile higher
hat % o.
ering that the capital Of the French Company, now
merged into tho Anglo American, was fl 200 900 as
compared with 81, 500. 600 (being company cap
itai; that Its cables are 1883 miles In length, and
that those OF my company are 1850 miles IN length
the apparent reduces Itself to aDoui E76 per
mile. inclined, however, 10 think ihat our
cable, which has not only heavier and longer shore
and Intern ediato types, but IS also much
heavier and stronger throughout, and wnicn
according published tests OF Sir William Thorn
son. electrically perfect, is, although apparently
more expensive as to nrst outlay. reality consid-
crably cheaper than the French cable, which VAS
vscount Monck, to have a fault" In spite OF his
lengthy connection with telcgraphic enterprise. Sir
James seems still to be under the Misrepresentation
that the value OF Atlantic cable Is 10 be measured
by the yard and not by It's quality Sir james states
that before long the Anglo.Amcrican and our COM
pany Will inevitably combine and charge wha. tarih
they please. These prophetic words we have heard
uttered from time 10 time since the formation OF
our company and | believe their iulnlmcnt Is as
lar distant now It in 1873 should they,
however, become true the public would certainly
moi apprcciably suffer- as Il new competition would
be loot at once, makers OF telegraph cables
would probably be the gniners and the only sufferers
would be shareholders OF the two existing
Atlantic cable companies Sir James hints ut reGuc-
tion OF to one shilling per word, to be brought
about, presume, by the Anglo American telegraph
Company, as company has at present no intention
Whatever OF reducing below the lair amount OF
three shilings per word. In the Times OF the 10th
INST you say this subject In connection with the
meeting Of the Ango-Am Telegraph Company,
at worth calling attention to the distinct threat,
uttered by the chairman against the Direct Cable Com
pany, that he ana hts board determined 10 nsti-
tutc what he called intcrnecine war
TIL the weaker went TO the wall" should
the attempt being made by the
Globe Trust party destroy the Direct Cable Company
fail "A proiol ged smiling tarin would certainly
send the weaker TO the wall and leave 10 Sir James
to estimate whether the company which f7, O00 900
OF capital takes rather less than seventy per cent
traffic the winch has 81, 300 900 OF capi
tai and takes rather than thirty per OF the
traffic. weaker one. will not enter into the
qucstion whether not II would be advisable that