Year: 1877




POLICY OF THE coMPANY-TuE INCREASE IN


RATEs-TuE ACTION OF THE BOARD Ap-


PROVED.


LONDON, Nov IT. 1877.


A statutory meeting of the Direct United States
Cable Company was held YESTERDAY, Mr.. John Ponder
In the chair. Tho Chairman said This meeting
being statutory one, called to comply with the
quircments Of the JOINT Stock Companies act. and
shc policy OF the Board very clearly laid down the
report, will not occupy the time Of tho meeting at
t any great length to-day by going into further de-
afs the moro SO there certain questions pcnd-
Ing which hopo will be amicably adjusted before
have the honor OF again addressing you.


POLICY THE COMPANY.


When wo began tho movement which has resulted
In the liquidation Of the old company and the forma
Zion OF the now had three main objects In view
First, to do away with tho disastrous competition
which was considered. destructive of the inter-
ssts OF tho shareholders; second to make such mr.
raneements with tho Ango-American Company US
would reduce the expenses OF working, give tho
curity required for single cable company and thus
prevent the expenditure Of q million aud upward for
another cable, which must have been obtaned at a
runous sacrifice to tho existing proprctors by tho
issue Of preference shares ut high Of interest
and thirdly carly dividend for tho sh are
holders.


TIE EFFECTS PRODUCED.


These objects, We bclieve, have faithfully carried
out The company was reconstructed In July, and we
declare to-day our nrst quarterly dividend. In tho
changes we have elected have, we believe worked
strictly within legal rights and action has been
OF benefit 10 our Shareholders and not In any way
prcjudictal either TO public or private Interests We
protested against the company being worked upon
extravagant basis aud hold In my hand atement
which will show the economics have effected,
A reduction of upward OF Ell 900 per an
mum, or equal to one and hvo-cghths par
cent on the capital Of tho company.
This is assuming wo have no interruption. Had the
Faraday repairing ship boon still in employ tho
present breakagc would have cost, at tho We
were paying Tor hor something ko 2l5 coo to repair
against about Ell, ,000


coxrASYs EARNINGS


Questions have boen put to 10 the earnings OF
tho company since tho arrangement with the Anglo
Let mo- therefore, state that for twelve months pre-
vous to the formation OF the new company, the old
company earned on the average something ike
tythree per cent for the year when arrang
was Effected and since thon the company has beon
earning about twenty-scvon per cont OF the total
traffic. which take TO be evidence that the general
public were not dissatisfied with the new state
Of things. On tho breakago OF tho cable, the
other day, the percentage fell from twenty-scyen
10 twenty per cent Although by arrangement
with land lire connections the traffic could not bo
said to DO In way interrupted the reduction was
no doubt, due 10 tho impression mado on the public
mind that our company was not In position TO trans
init messages as rapidly before; up to tho prcs-
ont time our average is about twenty 1vo per OF
tho total traffic. and that is the figure secured u.s.


MORE THAN oxK CABLE NEEDED.


am happy to be able 10 inform you that we have
this morning received the announcement that tho

munication has been resumed Were tho brcakags.
however, TO have continued for any length Of
time, and were We still dependent on our
one cable, tho falling of OF traffic would
have been serious aud the timo to regain
confidence might have still further prolonged reduced
returns The more l see Of submarine te'e-
graphs the more am satisfied that more than
cable s needed to insure that regular consecutive
communication which will alone give confidence TO
tho tccgraphing public l hope wo shall now be al
lowed TO work In peace and carry policy We
have strictly kept in vew-of increased facilities TO
the general public and fair dividends to sharcho


OPPOSED TO CHEAP RATES
Some agitation has been going on In America about
anew company to carry messages at largely reduced
rate. was offered somc months ago a concession for
about E50,0O0 but l informed tho gentleman who
wished dispose of 1t that instead Of paying any
thing Tor IL, II he offer f15O 900
would not undertake to carry out its terms
Even predecessors in this company found that tho
promise OF their original prospectus could not be
ricd so far as IL concerned low rate Therefore
they made scruple TO abandon IT, ana entered into
an arrangement with the Ango.American whereby
Ihe rMe advanced to three shiilings. Nor did
their action at that timo give rise TO any protest ut
homo or abroad. There has been much adverse crit.
cism OF our acts moro particularly in America, as to
or Tha oft.tc
uent has been that It intention 10 raise tho
rates. TO assert this was misreprcsont IL cannot
DC too clearly stated that this formed part OF our
policy. Wo had rathor give increased facities TO tho
public, and this has bcen dono already 70 largo ex
tent to the press, so that indirectly far nows s
concerned, the public 10 largely benefited.


rnx AFFAIRS OLD COMPANY.


The old company's accounts entirely In tho
hands OF the lquidators and tho Board has been
anxious TO tho liquidation quickly arranged But
Inc delay ariscs principally from u few disscniicnts
they, doubt, desire TO got the most they can for
thcir shares and have not word say about 1t.
Tho arbitrators have to deal with these dsscntenls
All can say Is that hope these gentlemen will not
throw unnecessary difficulties In the way, but the
liquidation DO pushed forward as quickly as possible
The sooner II Is settled tho sooner return Will DO
made TO the shareholders In respect Of the old CON.
yany.


THx ACTION APPROVED.


After some remarks from Lord Bury, member OF
the old Board approving the policy OF tho Board
10 which he also belongs, and further remarks by
shareholders Mr. Guesdon congratulated the share
holders on their present position us II they had
maincd as they were the cgemcnts with Somcns
were such that tho company must have eventually
fallen into their hands. " being statutory meeting
no resolution was proposed by the chairman but tho
general opinion was expressed by the shareholders
tba, their approval Of the policy Of tho Board should
be expressly affirmed. and a resolution was accord
,poly moved seconded and carried unanimously, iol-
lowed by the appointment oil auditors, the meeting
terminating with cordial vote Of thanks the chair
man and directors.