'Memorandum on the Indo-European Telegraph Department and Narrative of Events to the end of 1898' [‎5r] (9/20)

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refused to continue to share expenses, and the line has been maintained since
that time at the expense of the Government of India. No formal agree
ment was ever made, and the traffic receipts belong to the Persian Government,
who, however, contribute towards the expenses of maintenance.
42. At the International Telegraph Conference held in Berlin in 1885, the
rate between Europe and India was reduced to Ecs. 5 per word via Russia
and the Red Sea, and Ecs. 4.50 via Turkey, from 1st July 1886. Considerable
reductions were also made on the lines connecting India with the Ear
East.
43. In Eebrnary 1887 Colonel Sir John Bateman-Champain died, and was
succeeded by Colonel Sir R. M. Smith, who retired in 1888, when the
Department was placed under the charge of the Director-General of Indian
Telegraphs, Account work and Joint Purse matters being administered
by the Accountant-General and Public Works Department of the India
Office.
44. Just before his retirement Colonel Sir R. M. Smith visited Persia and
obtained a renewal of the two treaties with Persia for working the Teheran,
Bushire, and Jask land lines. They were both extended to the year 1905,
and presents to the value of about 2,129/. were made to the Shah of Persia
and some of his Ministers to secure these renewals. The Indo-European
Company also secured a renewal of their Concession from Persia to the
same date.
45. In 1891 the Indo-European Telegraph Company secured a further
extension of their Concession up to 1925, and the Anglo-Persian Treaties
of this Department were also extended to the same date.
46. At the Berlin Telegraph Conference in 1890, negotiations were opened
between the Eastern Extension Company and the Australian Colonies for
a reduction in the rate between Europe and Australasia, and in 1891
agreements were drawn up and submitted to the Cis-Indian Joint Purse, and
after some discussion approved of. Under this arrangement the rate between
Europe and Australia was reduced from 1st May 1891 to 4s. per word under
the following conditions :—
The total revenue for Australasian traffic, excluding outpayments,
derived by the Cis-Indian Administrations and the Eastern Extension
Telegraph Company during 1889 was taken as the basis, and was
fixed at 237,736/. If, during any subsequent year, the total revenue
of these Administrations (including that with Queensland and New
Zealand) should fall below that amount, the Australasian Colonies
agreed to pay to the Eastern Extension Company half the amount so
lost, which sum the Eastern Extension Company credits to the
Common Eund. The other half is borne by the Cis-Indian Admini
strations and the Eastern Extension Company in the proportions
agreed upon, except that the Department’s loss shall not exceed
1,775/. and the Indo-European Telegraph Company’s loss 2,800/. in
any one year.
The contribution of the Cis-Indian Administrations is that which each
partner draws out of the Cis-Indian Common Purse on account of
Australasian traffic. The Eastern Telegraph Company also pays in
its receipts on South African traffic.
This is then divided as follows :—
Eastern Extension Company
Eastern Telegraph Company for South African
traffic - - - -
Cis-Indian Administrations
and this 35*25 per cent, is divided as follows:—
Eastern Telegraph Company - - -
Indo-European Telegraph Company -
Indo-European Telegraph Department
64*57 per cent.
*18
35*25
80*53
12*03
7*44