The New York herald., 1877-09-01
NEW TELEGRAPH ENTERPRISE.

COMPANf-PHOPOsED DIRECT CABLE LINES
BETWEEN FRANCE AND NEW YORK AND FROM
SAN FRANCISCO ACROSS THH PACIFIC.
wYoRx, August 80, 1871
To THE EDITOR OF THE HERALD-
A combination Of American and European capitalists
have under consideration tho formation Of
company, with capital OF $l5 600 000 10 lay cable
from France TO the Uuited States laudng TO New
York city, connect with new line from New York
to San Francisco, and thence by cable to Japan and
China The government OF France has already
granted to Senator PouyerQuertier, late Minis
ter OF Finance, permission TO connect, by
cable France with the United States, and has
accorded valuable privileges to the company, which
has organized Paris der the management OF
Mr. Pouyer Querter, Senator, Minister oil Finance,
President; Mr. Dompicrre- D. Hornoy, Vice Admiral
ex- x-Minister of the Navy Vice President; Comte Q
d'Hespc, Senator; Comic dc valon, ex-Deputy;
Comte Dillon, the Marquis de La Roche-LamborI
Payeur General; Comte de Lambertye, Mr. Emile
Gallet Mr. de Chauvin, Electrician Of the United
States Direct Cable Company. On the 23d OF March
last syndicate OF Paris bankers formed and sub
scribed $4,000, 900. leaving over $l,200o0o to be
subscribed by the public in Europe and America
VALUABLE CONCESSIONS.
The French telegraph administration will give to
this company all messages Tor America which originate
atng in any other country intended tor America which
enter France unless otherwise specially directed by
the sender These are very valuable privileges Two
reasons also assure to 1t large proportion Of the
traffic First the time required TO send messages from
all parts OF Central ana Southern Europe as also from
East Indies by this cable will be much less than via
England ana second, the expenses of sending across
the Channel to England and across England the Irish
Channel and Ireland and from Newfoundland to New
York will TO saved The cable will be constructed
alter the most approved scientific manner, and new
improved sstem of working II will enable the operator
to send three times as many words minute as by the
prcse ut system the Atlantic cables, so that
tariff OF twenty five cents word will yield a fair
profit the capital invested.
FINANCIAL ESTIMATES.
The following estimate OF tho cost, working ex-
penses receipts aud profits OF the proposed cable
been carefully made IRON the published Official state
nents OF the Angie. o.American Cable Company.
Nominal capital, including tho lost caoe OF 1858, Is
xed at 900 Quo sterling, equal to $685. COO 000 but the
actual paid capital including very large bonus the
original promoters OF the American and OF the
French cable which was amagamated with 1t, is
$50 y41, 300
Paid up Angio-Amercan n................. 1876, 900
Pad up Newfoundland European 1854. 500
Total. IA, ls9 800
Nominal capital OBSERVATION-DISCLOSURES. 2,54S 450
Mammal q lulal ............... OOO 600
Total. .s7 900, oco
Six per centum the actual capital would DO
ST. 3l6 $50 This company has three cables in work.
ing order. The utmost capacity OF each cable Is 7
words a minute 420 words an hour and for Twelve
more than tho average; then each cable will
transmit per day 5,OIO words. and tho three
cables l5,l2o words day o and Tor the
800 working days OF the year, 536 000 words which,
at twenty ave cents word, would yield ST. 159 COO
The working expenses OF the three cables stated by
Sir Jumos Anderson, president, TO be $780, 900 year.
This would leave pay interest S659, 600 There re.
mains also be deducted from the receipts the tariff
Of charges on the land lines from ST. Johns 10 New
York al one cent word amounting to $45, 360 eav.
ing S6l3 4), less than three per cent the actual
capital II Is then evident that at twenty five
word the present Anglo-A merican company could pay
u dividend of two per cent only.
The proposed cable will cost s. 900 900. and per
that amount will bc 5000 The capacity Of
TRANSMISSION by the cable with the improved
process VIII be about ID words minute; for hour,
900 words for twelve hours TO- 500 words and for the
800 days IN the year, 8, 900 WORDS which.
twenty-five cents word, would yield 1910 00U Allow
$3.50 600 year tor WORKING expenses and there would
remain s5eooo more than twelve per cent per
annum, out OF winch dividend oil ten per cent per
anuum could bs paid, leaving TOR reserve fund
S110. 900 per annunl.
ARRANGEMENTS on THIS SIDE
Congress, at It's last Session. passed act granting
permission to connect the American and European
coasts by cable TO Ferdinand &. Latrobe, Mayor OF
Baltimore; Robert Garrett, banker. and William +.
Frick, and the plan s that this Baltimore compsny
shall unite with the French company.
Messages between the United States and Europe,
from places beyond New York, will cost the sender
less than under the present arrangement OF tariff by
the Anglo-Amercan cable. Tor the reason that the
tariff beyond New York will be tho regular tariff OF
the Western Union lines payable IN currency where
as now an extra price is charged, payable in gold.
A PACIFIC OCEAN PROJECT.
The most important tclegraphic line which this
company proposes " establish Is that OF cable from
san Francisco TO Japan direct, a distance OF nearly
six thousand miles.
similar project agitated several years ago, and
efforts MADE to induce Congress 10 grant
nuai subsidy OF $500, 900 tor twenty years and bill
for that purpose was reported avoraby 10 the Senate
by Mr. sumner, but was NOT acted on by the
Senate. Admiral Porter, in letter aldresscd to Mr.
Sumner, strongly advocated the laying OF such
cable, and stated that in his opinion it would to
the Navy Department $500 600 year. The great
len of the cable presented serious obs ace to its
success commercially because not more han three or
four words IA minute could be transmitted rough 1t
by any known process. 1t was suggest cd that the
cable should be lald via the Eleutnerian Islands,
by whicn route the different lengths would
from icebergs IN that northern latitude would
render tho safety OF the cable TOO insecure.
but he volcanic formations that route presented an
insuperabie obstacle, and the project was abandoned
The importance OF the trade OF San Francisco with
China and Japan, especially Ia regard 10 the immense
production Of silver IRON our mines which is the
only medium OF exchange with The Asatcs. has re-
vived the project in 1870 Congress passed
granting to Leland Stanford, Mark Hopkins, James e.
Flood, Andrew I. Bryant and several other wealthy
residents Of California, the right to connect tho Amer
aud AsIatic coasts by submarine cate II Is pro-
posed to lay the cable direct, now that new sys
TEN of working it Will enable the operator to
Cable manufacturers in England Will contract
10 make and lay the cable Tor $40 000 OO and insure
It's working Tor thirty days after being ad the cable
10 be lad before the LIST oil september 1879 In order
TO pay dviGend OF seven per cent per annum tho
gross receipts should be slooO.ooo allowing 100000
for working expenses.
GREAT COMMERCIAL ADVANTAGES
III Is urge with great torce that tie com mercial
business between the United States aid Asia would
not afford sufficient business to the cable pay any
reasonable dividend 1t would require 200 messages
day at $40 message to yled $500 aday. which IS
low tarn Tor SO great distance by cable and such
tariff would command grcal part OF the business be-
tween Western Europe and Asia. The present rate
from London 10 China is 81 05 word, and IL re-
qures IOu tGree 10 live hours to send a despatch Of
ten WORDS and time is the most important elcmen ut in
teesraphy The tarln IRON Europe by the proposed
French cable and TINS Pacific cable would
not exceed 81 word, being twenty five cents
for Atlantic cable 81 90 Tor Pacific cable and
fifteen from New York to SIN Francisco,
and tho time would not exceed two hours. The time
required 10 send message, from London to China
aud back, via America, would allow messages sent
before eleven a. NJ to be delivered in China and
swcr received the same day before three z. NJ.
whereas by the European route, SIX hours at least
beng required, the an weTs could be received
before five r. M - tial