The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-07-23
CABLE TARIFFS.
THE RECENT HEAVY CUT In THE
RATES.
Report TO the Shareholders OF the
AnglO.Amerioan and AssOci-
ated Companies.

LONDON, July22.-The Directors Of
the Anglo American Telegraph Com,
pany have issued arepoit to the 81 are
hotdels which tont3ins the following
The reduction Of the tariff from
shillings to l shilling pence per word
introduced by the Commercial Cable
Company on December "a, 1884, re-
suited in large decrease in the gross
revenue produced by Atlantic cable
traffic. Nevertheless it wss deter.
mined by the associated cable COM
panies 10 give the reduced tariff q
fair trial in order to avoid war of
rates, and to determine as early as
possible whether the reduction would
result in any remunerative increase of
traffic. Alter more han years trial
it was found that the very contrary
was the case, and ssthe rival company
resorted to means TO obtain greater
share OF the traffic than the posi- g on
OF two cables fairly entitled them to,
the directors Of toe associated COM
panies came to the conclusion that it
was necessary in the interests of their
proprietois to adopt low rate. Ac-
cordingly on the 9TH OF May, 1886, the
rate YVES reduced by the associated
cable companies to 6 pence per word,
end by specia arrangement with the
Western UDion Telegraph Com
psny of America tn 8 tariff was
made TO extend to ali
the principal cities and towns in the
United States and Caf ada. For press
news a special rate OF pence per
word between London and New York
was also adopted. Ga the same dats
the tariff of the Macksy- Bennett cables
was reduced to one shilling per wcrd.
The effect OF this important reduction
of rates by the associated companies
has been very considerable augmen-
tation OF the traffic, much larger, in
deed, than was anticipated as a first
result, amounting 10 over 1l0per can't,
and although the toial receipts have
been greatly decrease d the company is
earning sufficient to pay its working
expenses and 10 place such
sum to the credit of the rel ewal fund
up 10 el,000,0Io, the limit fixed by the
at the last half yearly
meeting. The unexpected increase in
the volume of traffic Immediately
upon the intro duction OF the sixpennv
tariff has induced the directors to con.
slider the expectancy Of adopting per-
system of low r4tes. The
associated companies possess between
them no less than eight
cables across the Atlantic
having carrying capacity, which, for
practical purposes, is unlimited. With
such extensive system 1t is obviously
heir interest to encourage a very large
at low rates, and by 50 doing,
prevent a further multiple alton OF
cables. By the recent
'eduction of rates, cable customers
ind the public have the opportunity
If answering the question upon which
he future rate between Europe and
America will have to be decided,
namely, whether there Is suffic ent in.
lerent development in the cable
iaffic to and from America to war
ant low charge being permanently
If there be such devel-
'pment, and the public refpond 10
he desire Of the associated companies
o continue working at low rates, it
viii be to the interests of the com.
anies to do 80, az they only desiIe to
arm a reasonable return upon the cap
tai invested and prevent further
waste ful competition. The directors
would remind the proprietors thst the |
ompany has now bsen 10 existence
Or over twenty years, and Rthat al
hough high rates were, in the first |
ears of the undertaking, an absolute |
ecessity and were not at the time OBJ
acted 10 by any important C ass of |
he community, it hiss since been
1und thst whenever adopted the re-
ult was continuous competition, use
ess multiplication of cables and loss
money to all the companies inter-
sted. The directors believe that
Ooner or later the low tariff will be
necessity, and that by taking time
y the TO clock" and making an, earn
st effort now to establish it, they will
ecure the cordial approval and Co
peration OF their customers and the
ublic, without which SO important
sp could never be successfully
lopted.