'Memorandum on the Indo-European Telegraph Department and Narrative of Events to the end of 1898' [‎3v] (6/20)

6
any modification which would create a competitive rate and would be stron-ly
opposed by the Companies. The fact of belonging to the Joint Purse does
no m any way prevent the Government of India from bringing pressure to
bear on the Companies to reduce the tariff. 61
28 * In ^ ddi ! iio ? to.the above-mentioned facts, there was another important
consideration in joining the Joint Purse Agreement. The Eastern Teleffranh
Company had not so many cables as they have now and their lines, and those
ot the Indo-European Company, were frequently interrupted—sometimes for
long periods, at a time. The insurance system was then a matter of
considerable importance, as during a long interruption, the route on which
it occurred could earn nothing, and it was often a considerable time before
customers could be brought back when the lines were repaired.
rmt p & nal ' Io “ t , rurse A!?1 ; eem, ‘ nt provided that the percentages drawn
out of the Purse could be revised at the end of any period of seven years
from the commencement of the term ; but it was soon found that the Eastern
Company were still continuing their endeavours to attract traffic, and it
seemed very probable that at the end of seven years they would claim
an increased percentage on account of the larger share of traffic carried by
them Under these circumstances a supplemental article was agreed to,
which excluded these percentages from revision. °
30. Since that time, however, the situation has changed considerablv in
many ways. The interruptions on both routes are few and far between
especially on those of the Eastern Company, who have now so many more cables
and land lines to rely upon than formerly. The result is that the increased
percentages are scarcely ever applied, but it sometimes happens that when
there is a large amount of traffic with Egypt or South Africa, the Eastern
ompany s cables m the Tied Sea and Mediterranean cannot carry that as
well as the Indian and Trans-Indian traffic, and a large amount of extra
woik is thrown upon this Department and the Indo-European Teleo-ranh
Pume 3117 Wlth ° Ut their receiTin S an y increase in the amount from the
w b ™" ° f * In* fact, and of the very largely increased traffic with the
il ai East, there can be little doubt that from an insurance point of view
the same necessity no longer exists as formerly for this Department and the
Indo-European C ompany remaining in partnership with the Eastern Company
but two very important questions arise in considering whether the Depart
ment could or should withdraw. Eirst. The Agreement seems to have been
entered into for an indefinite time, as Art. XXL provides as follows
“ T1 , le Agreement to be_ in force until 31st December 1895, or for anv
longer period to which the Indo-European Company’s concessions
may, whilst the Agreement remains in force, bo extended: but
subject to the Agreement being sooner determined as provided by
*This Clause refers to a route being per- Clause XVII.,* and subject also
manently interrupted for a period exceeding to revision of anv of its nrovisions
- a t any time, by mutual agreement,
and at the end of any period of seven years from the commencement
oi the term by arbitration in case of difference, on either Adminis-
tration giving six months’ notice to the others that such a revision is
required, and specifying the alterations proposed and the grounds for
requiring the same.”
+ b!L In t; Eur °P ean Com P an y’ s Persian concession has now been extended
+ if- 1 tI T1 ; el . 1 ; ^ ussian concession expires in 1905, but the Company seems
tothmk that it is sure to be renewed, and the German Government have
promised the Company an extension of their concession, which also expires
in j-90o, provided that the Russian one is renewed. Under these circumstances
it seems very doubtful whether this Department could withdraw from the
Joint I urse Agreement, even if it desired to do so.