Ireland, and for rental of land-lines leased to the companies. The Canadian land-line rate is about 2d. per word, and thus 9½d. is left as the amount actually received by the Cable Companies out of the total Is. rate.
Cable tariffs, like other things, have their history and evolution. Although the permanent connection with Canada was established in 1866, it was not till 1872 that the system of charging so much per word was introduced. The tariff then fixed was 4s. per word. From 1872 up to 1888 the changes in the tariff were most bewildering; in those sixteen years there were no less than thirteen changes of tariff. But at last, in 1888, it was fixed at 1s., and there it has remained ever since.
The cause of these frequent fluctuations has been the more or less fierce struggle waged in the Atlantic, with some intermissions, since 1868, when the French entered the field in rivalry with the British. In 1881 American rivalry began under the auspices of Mr. Jay Gould, and became formidable in 1884, when the Commercial Cable Company, also of America, began operations. Finally, in 1896, the first really serious State competition was inaugurated by the German Government, though the German cable was not opened until 1900. Under stress of competition the rate fell to 6d. in 1886 until 1888. But this was found to be ruinous, and the rate was raised to Is. in the latter year. Moreover, to mitigate the undue competition a 'pool' was formed, and still exists, between the two English companies and one of the American companies.
On the whole subject of our connection by cable with Canada there seems no reason for disputing the conclusion of the Inter-Departmental Committee on Cable Communications, which sat in 1902 under the presidency of Lord Balfour of Burleigh. 'The Atlantic companies,' it stated, 'have received no subsidies; they provide, under the influence of competition, an efficient service at a low rate, which they have attempted.
