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This works out at £8 15s. per mile. The actual cost of the most recent British cable laid across the Atlantic from Ireland to Newfoundland was £450,000, which works out at a cost of £220 per mile. The point, then, which merits attention here is that of the sixteen North Atlantic cables only five are British, and that these British cables have to encounter a severe competition from American, French, and German enterprise, aided in the two latter instances by the funds of the State. Partly through an increased volume of business, partly under the pressure of competition, the companies controlling the cable communication with the East and Australasia have lowered their rates to one-half of what they formerly were, or even less. Moreover, to mitigate the undue competition a 'pool' was formed, and still exists, between the two English companies and one of the American companies. Five are owned by two British companies, and the remaining seven by two American companies.

That is a somewhat high figure, since it makes provision for two ships, when perhaps only one may be sufficient. To give, however, a general figure, the cost of maintaining and repairing a deep-sea cable was put by the Pacific Cable Committee at £70,000 a year for a cable 8,000 miles long. Stated mathematically, if a cable of 500 miles gives a speed of 120 letters a minute, the same cable prolonged to 1,000 miles would only give a speed of 80 letters a minute. I give them merely as warning to those who forget what a vast expense is incurred in laying and maintaining cables, and what enormous risks have to be run by private persons who embark on that business. Besides the initial cost of a cable, there is the cost of its maintenance, repair, and replacement We have to consider not only the natural causes of decay, but also damage from external causes.

No doubt the causes of faults and breakages, as well as the cost of repairs and maintenance, vary in every sea and with every cable. The seas through which the cables pass from England to India are, on the whole, fairly well adapted to cables. As the icebergs pass Newfoundland they sail into warmer waters and melt, so that for hundreds of miles a new Ireland is being formed down below. For, though the bed of that ocean is usually of a nature favourable to cables, yet there is a danger arising from banks, due to the deposit of great blocks of rock brought down from Greenland into the North Atlantic by the icebergs. Our five British cables, though landing in Canada instead of the United States, only do so because the speed of a cable varies inversely as the square of its length. In other words, the Governments of France and Germany have heavily subsidized these cables, in order to provide that their communications with the United States shall be independent of any landing-place within the British Empire. Everyone agrees that the telegraphic communications of the Empire should be as cheap as the circumstances of the case allow, should be efficient in point of speed and accuracy, and should be controlled by ourselves.

The answer is threefold: (a) American cables landing on British shores fall, ipso facto, under British control in case of war, and therefore can only add to our strategic resources. In the second place, as in terms the act empowered telegraph companies to establish reasonable rates, subject to the control which the act to regulate commerce exerted, it follows that the power thus given, limited of course by such control, carried with it the primary authority to provide a rate for unrepeated telegrams and the right to fix a reasonable limitation of responsibility where such rate was charged, since as pointed out in the Primrose Case the right to contract on such subject was embraced within the grant of the primary rate-making power. There are twenty British cable companies. Though Ebert belongs to the majority Socialists, who until recently supported the Government in all its proceedings, there is evidence elsewhere that minority Socialists such as Haase and Ledebour at Hamburg are themselves co-operating to restore order.

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