'Memorandum on the Indo-European Telegraph Department and Narrative of Events to the end of 1898' [‎4v] (8/20)

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of rates over the same transit which were originally fixed when the rates
to places beyond India were excessive, and it was necessary to reduce them
to a non-prohibitive figure. This reason cannot now be urged, however, when
the through rate to Australia is almost as cheap as that to India, and
it might be possible to induce the Companies to reduce the Cis-
Indian transit rate to the same amount as that for places beyond.
There can he no practical reason why a message destined for India
should not be carried over the lines for the same rate as a message destined
for Persia, hut the higher rate on Indian and Far East messages was imposed
at the International Sub-Commission on Tariffs, which sat at Berne in 1871
to revise the Indian rates after the formation of the Indo-European and Eastern
Telegraph Companies. Up to 1870, messages had been carried by the Govern
ment lines, and there was only one transit rate for all kinds of messages passing
over the same section, but when the Indo-European Company came into
existence it was necessary to provide revenue for it, and so the various transit
rates were increased for Indian traffic, and the difference between those rates
and the ordinary Government transit rates constituted the Company’s earnings.
This system has been kept up ever since at each succeeding Conference, and it
is practically the reason for the high rates which have been maintained on
Indian traffic. If the Indo-European Company did not exist, and messages
were carried by the German and Russian Government lines the rate would
no doubt he considerably reduced. The rate via the Indo-European Company
was the one originally fixed, and the rate via the Eastern was based on the
same figure. The rate via Turkey was fixed at the same amount in order
to prevent, in accordance with International rules, a competitive route to the
same place.
36. It will he seen that the difficulties in the way of bringing about a
reduction in the tariffs to India and beyond are very great. Without the
consent of the Companies it is almost impossible to do so, and the only way
that remains, therefore, is to bring sufficient pressure upon them to make
them agree.
37. The most effectual pressure would, of course, be to acquire the Turkish
line from Constantinople to Fao, if possible, for ourselves, even at a heavy
outlay, or, if this couid not be done, to assist the German Government in
their scheme, and with their assistance and support induce the various
Governments, parties to the International Convention, to agree to a reduction
in the rates via Turkey. This would compel the Companies to reduce also.
38. The next incident of any importance after the establishment of the
Joint Purse Agreement occurred in 1879, when it was found that the old
telegraph steamer “ Amberwitch ” required such extensive and costly repairs
that it was considered advisable to replace her by a new ship. Accordingly,
the present vessel, the “ Patrick Stewart,” named after the first Director-in-
Chief of the Department, was bought and fitted out as a cable ship in
England.
39. At the International Telegraph Conference held in London in 1879, the
Indian Department asked for and obtained an increase of 10 centimes in
their terminal rate, so the through rate to India had to be raised to Fes. 5.60
per word from the 1st April 1880. v
40. In 1885 a new cable was laid from Jask to Bushire to replace the old
gutta-percha cable of 1864, which had been found to be quite worn out.
41. Owing to the difficulties experienced by the Afghan Boundary Com
mission in communicating with Teheran, this Department was asked ‘to take
over and work the line from Teheran to Meshed, and the consent of the
Persian Government having been obtained, the line was handed over to the
Department on the 14th December 1885. At first, all the expenses were borne
by the Boundary Commission, but in June 1886 the Government decided to
retain the line at an annual cost not exceeding Rs. 20,000, to be divided
between the Imperial and Indian Governments. In 1892 the Treasury