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Office of MORSE & CO., No. 24 William St.,
NEW YORK, March
21
st
, 1863.
Being one of a committee of ten gentlemen, appointed by the New York Stock Exchange, to aid in getting subscriptions to the Atlantic Telegraph, I respectfully submit the following facts, setting forth, in my opinion, that the enterprise, aside from any patriotic considerations, will pay the subscribers an enormous profit. The rate, as established by the British Government, is to be 2s. 6d. sterling per word. The minimum business will be twelve words per minute, and, in consequence of the difference in longitude, the line, of course, will be worked night and day, giving 525,600 words—at 2s. 6d.—£657,000 or $3,285,000 annual income. Many of the best electricians estimate that the cable proposed can easily transmit eighteen words per minute, which would yield a gross income of over $4,000,000. Thus it will be seen, that, with one cable successfully laid, it will be able to pay very large dividends to the stockholders. [The telegraph across the plains to California earned the whole cost of the line the first year.] But the Directors of the Company propose to pay only eighteen per cent. on the stock, reserving the surplus for the laying of extra cables, which, it is estimated, will be enough to lay
One in 1866,
One in 1867,
One in 1868,
Two in 1869,
Three in 1870,
Making, in 1870, nine cables, without increasing the capital of the Company. I leave my friends to estimate the probable business that will be transacted on nine distinct lines between the New and Old Worlds, working night and day. My idea of the price of the stock for 1870, or even 1866, is too fabulous to be stated. The British Government guarantee eight per cent. per annum on the new capital of £600,000, as soon as the line is in working order.
Now for the success of the enterprise. I enclose herewith a letter from Messrs.
Glass, Elliot & Co.,
(one of the wealthiest and most reliable firms of England), showing that they have laid successfully thirty cables since 1854, one of which (from Malta to Alexandria, a distance of 1535 miles) is nearly as long as the Atlantic cable, (which is 1640 nautical miles from Newfoundland to Ireland), and also showing that they have agreed to take 1–24th of the capital of the Atlantic Co., lay the cable and take for their profit the stock of the Company as the line works successfully. I think no once can doubt that Messrs.
Glass, Elliot & Co.
's knowledge and experience in cables are such that a judgment may be formed from them as to the success of this enterprise. Many argue that the stock would be worth par should this cable be lost, as the Company have the exclusive privilege of laying submarine cables on the coasts of Newfoundland, Labrador, and Prince Edward's Island, for fifty years, and the same from the State of Maine for twenty-five years. Several of our distinguished citizens have contributed largely, among whom is
Peter Cooper,
Esq., who has invested a very large amount, and feels the utmost confidence in the success of the enterprise. I now recommend my friend to subscribes liberally. The enterprise will certainly be carried out, and it will be an honor to aid in an undertaking that will do so much toward keeping our country at peace with Great Britain and other countries. The shares are £5 each, payable in sterling, or its equivalent in gold; one pound to be paid on allotment, and the further calls as made by the Company. It is hoped that the whole capital will not be required for the first cable. Parties wishing to subscribe can send their subscriptions to me.
Respectfully,
ANTHONY W. MORSE.
P. S.—Messrs.
Glass, Elliot & Co.
propose to make and lay the cable in the summer of 1864.
10
Cannon Street, E. C.,
London, October
20
th
, 1862.
CYRUS W. FIELD,
Esq.,
Atlantic Telegraph Company.
Dear Sir,
In reply to your enquiries we beg to state—
That we are perfectly confident that a good and durable Submarine Cable can be laid direct from Ireland to Newfoundland, and are willing to undertake the contract upon the following conditions:—
First.—That we shall be paid each week our actual disbursements for labor and material.Second.—That when the Cable is laid and in working order we shall receive for our time, services, and profit, 20 per cent. on the actual cost of the line, in shares of the Company, deliverable to us in twelve equal monthly instalments, at the end of each successive month whereat the Cable shall be found in working order.
We are so confident that this enterprise can be successfully carried out, that we will make a cash subscription for a sum of £25,000 sterling, in the ordinary capital of the Company, and pay the calls on the same when made by the Company.
Annexed we beg to haud you, for your guidance, a list of all the Submarine Telegraph Cables manufactured and laid by our firm since we commenced this branch of our business, the whole mileage of which, with the exception of the short one between Liverpool and Holyhead, which has been taken up, is at this time in perfect and successful working order. The Cable that we had the honor to contract for, and lay down for the French Government, connecting France with Algeria, is submerged in water of nearly equal depths to any we should have to encounter between Ireland and Newfoundland.
You will permit us to suggest that the shore ends of the Atlantic should be composed of very heavy wires, as from our experience the only accidents that have arisen to any of the Cables that we have laid have been caused by Ships' Anchors, and none of those laid out of anchorage ground have ever cost one shilling for repairs.
The Cable that we should suggest for the Atlantic will be an improvement on all those yet manufactured, and we firmly believe will be imperishable when once laid.
We remain,
Sir,
Yours faithfully,
GLASS, ELLIOT & CO.
List of all the Submarine Telegraph Cables Manufactured and laid down by GLASS, ELLIOT & CO., London.
* In laying this Cable it became necessary on two occasions to recover or pick up in the deepest water several miles of Cable which had been submerged. On one occasion, when about 30 miles off Cape St. Sebastian, in a depth of 1250 fathoms and very rocky bottom, sixteen miles of Cable were recovered, a fault cut out, and the Cable relaid with perfect success.
** The end of this Cable was lost in 450 fathoms, off the Island of Fano, near Corfu. It was grappled for and recovered, and the line completed.
Every Cable manufactured and laid by us is working successfully, except the short line laid in shallow water along the shore between Liverpool and Holyhead, which was broken by the anchor of the Royal Charter, in the gale of wind just before she was wrecked, and which has since been recovered. None of the cables laid by us out of anchorage ground have ever cost one shilling for repairs. Cables can be perfectly protected from anchors or injury in shallow water by having the outer wires made sufficiently strong.
GLASS, ELLIOT & CO.,
London, October, 1862.