'Memorandum on the Indo-European Telegraph Department and Narrative of Events to the end of 1898' [‎2r] (3/20)

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subdivide the Persian transit rate at once, and Pcs. 8*50 was allotted to
the Teheran-Bushire section, and Pcs. 5 to the Julfa-Teheran section, or more
than the one-third promised by the Persian Government to the Company, thus
fixino- a distinct tariff for the latter section where none before existed. By the
An-lo-Persian Treaty of 1865 the Persian Government agreed to pay the
Indian Government the cost of erecting the line from Khamkm to Teheran
and Bushire in five annual instalments, and to take all receipts on the
Khanikin-Teheran-Bushire line up to
* At 2| tomans 10,000 Persian dinars, or a gold coin of that value. to the £ sterling. 30,000 tomans 10,000 Persian dinars, or a gold coin of that value. ,* out of which the debt
for materials, &c., was to be paid. The receipts however, never approached
this amount, and only a very small part of the debt was paid by 1869. In
that year the Company obtained a new concession from Persia, under which
they undertook to pay all debts due to the Indian Government, m connection
with the Telegraph line (amounting to 42,217/.), in 24 annual instalments to
be deducted from the annual royalty payable to Persia. As the Ivhani i -
Teheran section was practically given up when the Indo-European Co V J
came into the field, and the total receipts had, so far, been far shoit of 30,000
tomans 10,000 Persian dinars, or a gold coin of that value. , the Persians were very glad to accept the Company s offer of a fixed
annual royalty of 12,000 instead of the uncertain one of any amount up to
30,000 tomans 10,000 Persian dinars, or a gold coin of that value. , and for this smaller sum the Company became responsible.
13 This arrangement was ratified in the Anglo-PersianTreaty of 187 2, which
also stipulates that the receipts from the Teheran-Bushire section m excess
of 12 000 tomans 10,000 Persian dinars, or a gold coin of that value. shall “ be divided between the English Government and
“ the Indo-European Company in such manner as they themselves may
“decide.” It will thus be seen that, in order to assist the Company, the
Indian Government agreed to assign to them a share of the transit ra e
which under their concession was fixed at one-third, but which is actually
at the present time tfths *°r the Julfa-Teheran section, and, in addition to
this, to P allow them half of the Teheran-Bushire receipts after deducting the
royalty of 12,000 tomans 10,000 Persian dinars, or a gold coin of that value. . This moiety is now worth about lo,000Z. per
annum.
14 When the Anglo-Persian Treaty of 1872 was negotiated, the Persian
Government agreed to sell to this Department for 2,000 tomans 10,000 Persian dinars, or a gold coin of that value. per annum
for three years their frds of the Persian terminal rate on international
messages originating or terminating in Persia, and the Company agreed to
contribute 1,000 tomans 10,000 Persian dinars, or a gold coin of that value. and to divide the receipts equally with the
ment. There was no terminal rate at Bushire at this time, and Reuter had
^Qfahlished a c< Packing Agency An office of the East India Company and, later, of the British Raj, headed by an agent. ” there, which could, under the rates then m
force make a profit hy receiving and re-sendmg Indian messages at Bushire,
and to prevent this system the Department put on a terminal rate.
15 At the end of three years the purchase system was given up, and
Persia was credited with her frds on terminal traffic.
16 In 1871 the Companies complained of the lower rate of tariff on the
Turkish route, and objected that their lines, which were paid for and mam-
taffied bv private capital, should be undersold by a line which, supported by
State Revenues, continued to work at a loss. In consequence of this a
Sub-Conference assembled at Berne, and the Turkish tariff was increased to
4/. 10s., or the same rate as via Russia and the Red Sea.
17 In 1871 cables were laid connecting India with China, Australia, and the
Ear East, and the traffic via the Companies’ lines, of course largely increased,
especially vid the Red Sea. A new Company was also started to work a line vid
Denmark and Siberia to Wladiwostock and thence by cables to China and Japan.
Partly from fear of competition and partly with the desire of making the
rates to the Ear East less prohibitory, the Companies decided at the Berne
Sub-Conference to make considerable reductions m their rates as far as
India on all traffic with places beyond India, and this system lias been kept
up ever since.
18 At the International Telegraph Conference held at Rome m 1872 the
rate to India was reduced to 4/. for 20 words vid Russia and the Red Sea