No 2, Crown Court
                     
                  
                     Threadneedle Street, E.C.
                     
                  
               30 July 1863
               
               My Lord Duke,
               
                
            
            
            
            
            May it please Your Grace.
            
            
               I have the honor to address Your Grace, on a subject in which, I am
               sure Your Grace, must be deeply interested; viz. Telegraphic
               communication throughout the Colonies of 
Vancouver Island and 
British
                  Columbia; and, ultimately by the proposed new roads through the 
Red
                  River Settlement to Canada; by the Aleutian Islands to China; and by
               the Indian Archipelago to Australia.
               
               It is intended to establish "The 
British Columbia Telegraph Company,
               Limited," and at present, in order, to meet the immediate and pressing
               requirements of the Colonies, of
British British Columbia
 British Columbia and 
Vancouver Island,
               It is proposed to plan the Inland towns of the former, as far North, as,
               
Alexandria or 
Richfield, in communication with 
New Westminster; and the
               towns of the latter, with 
Victoria; joining, the Two Colonies by
               submarine Cable, from 
Point Grey, 
B.C. to 
Nanaimo V.I. and, to place,
               the whole, in communication with 
San Francisco; the United States, and
               Canada; by a junction with the American lines at 
Whatcomb, in 
Washington
                  Territory.
               
               Already, has, this matter been laid before His Excellency 
Governor
                  Douglas, and the scheme received his countenance and support.  The
               different members of the Governments, and the Colonists at large,
               support the undertaking, knowing, as they do, the many advantages that
               would accrue therefrom to themselves.
               
               The importance of such an undertaking in a Political point of view,
               I need not mention to Your Grace.  On a commercial point of view, the
               advantages to the Colonists, and to all who are connected with the
               Settlements of 
Vancouver Island and 
British Columbia must be enormous.
               
 
            
            
               For the due completion of this undertaking, it is necessary, that an
               "Act of Assembly" should be passed in 
Vancouver Island, and a
               "Proclamation" be issued in 
British Columbia, granting the necessary
               powers for passing over pre-empted, and other lands.
               
               The Projectors have already had interviews with 
Mr Carey, who is
               the Attorney General for both Colonies, and, he has promised, on behalf
               of the Colonial Governments, to support such "Act," and to grant such
               "Proclamation" as the Company may require.
               
               I have now the honor to ask Your Grace that Your Grace will take the
               matter into Your Grace's favourable consideration, and give it
               countenance and support,
               
 and,
               
Firstly, That Your Grace will so recommend it to the notice of
               H.E. The Governor, that the Company may have no difficulty in obtaining
               the powers they require.
               
            
            Secondly, That, as, the proposed capital of the Company at
               present, is £100,000, Your Grace will be pleased to recommend to the
               British Government to grant to the Company
a
 a subsidy.
               
               
               
               
               The projectors
               propose to grant to the Government the free use of their lines in both
               Colonies, for ever.  In consideration whereof they respectfully ask the
               British Government to guarantee a dividend of Five per Centum, on the
               £100,000, to the Shareholders, for the first Three years the line is in
               operation, provided that trade of the Colonies is not sufficient to pay
               such dividend.
               
               
               
                  
                     Asks for a guarantee of 5o on 100,000 for 3 years in case the
                     scheme does not pay.
                     
                
               
               There is little doubt that the Government, would never
               be called upon for an farthing of the subsidy.
               
 
            
            Thirdly, That Your Grace will recommend to the Colonial
               Government to grant in perpetuity to the Company such town lots, and
               Sections of land in the roads, as they may require, for the erection of
               Stations.
               
               
               
                  
                     Want grants of Land on the Line.
                     
                
               
               Such sections &c to be chosen by the Engineer of
               the Company and an Officer appointed by Government.
               
 
            
            Fourthly, That Your Grace will be pleased to recommend that
               all wire and all necessary materials for the construction of the lines
               be admitted, into, and through both Colonies, free of Customs,
and
 and other
               duties.
               
               
               
                  
                     Materials to be free of duty.
                     
                
               
                
            
            Fifthly, That the Company should have what assistance, could be
               rendered by Her Majesty's Vessels stationed at 
Esquimalt, in laying the
               submarine Cable across the Gulf of Georgia from 
Point Grey, 
B.C. to
               
Nanaimo, 
V.I. and across the 
Fraser River at 
New Westminster.
               
               
               
                  
                     Use of H.M. ships in laying the Submarine Cable.
                     
                
               
                
            
            
               I have the honor to be,
               My Lord Duke,
               Your Grace's Most Obedient & Very Humble Servant
               
George Scarby
               
               Minutes by CO staff
               
                
                  
                  
                     Mr Elliot
                     This Office is already pledged to give any encouragement in its power to
                     
Mr Baring's scheme for establishing a passenger traffic and
                     telegraphic communication across the continent of B.N.A. to our Colonies
                     on the Pacific.  Such a scheme comprizes part of the design described in
                     this Letter & may, in time embrace telegraphic routes in the
                     interior as well as across 
B. Columbia.  For many years to come one
                     telegraphic line will suffice for 
B.C. and though it may expose this
                     Office to the imputation of supporting a monopoly the circes
                     of the case 
wd justify it, in my opinion, in declining to encourage,
                     at present, a second project of the same sort.  Besides this scheme
                     takes it rise in a United States line.  A quarrel with the U.S.
                     will at once stop the main operations of this line, & confine its
                     utility solely to 
B.C. & 
V.C. Isld, where, it may easily be
                     conceived, there will not be much demand for telegraphy for a long
                     while.  Then the demands of these projectors seem to me
                     preposterous—they want a subsidy—and a dividend 5
o per cent on
                     £100,000 for 3 years, if the trade of the Colonies (a most vague
                     expression) will not enable a dividend to be paid.
                     
 
                  
                  
                  
                  
                  
                     The object I suppose is to elicit such an answer from a Government
                     office as will serve to run up their shares.  Some of the specific
                     requests appear to me very
                     
cool: such as that for the subsidy, and for the guarantee, for
                     materials free of duty, and for the use of the Queen's Ships in
                     laying their cable.  As to the request for land on each side of the
                     line, they might plead the precedent of the Company already approved by
                     the Duke, and it is a well established encouragement to a good project.
                     I do not know the name of the gentleman who signs the letter.  Even if
                     the enterprize were to be encouraged, it would be no more than right to
                     know that the projected Company had some
                     
bonâ fide existence.  It is easy enough to get a large sheet of
                     paper and write at the top offices of such and such a Company, but
                     persons entitled to attention ought to furnish a list of well known men
                     who are willing to share in the undertaking.  In this case I see no such

                     list at all.  The writer of the letter may be very respectable, but
                     one must always feel anxious to have some assurances that an answer
                     extracted from a Government Office should not be meant merely to promote
                     a bubble project.
                     
                     If therefore the scheme were to be entertained, I think that we
                     should first of all demand some more information as to the names and
                     quality of the persons by whom it is proposed.  But on the other hand if
                     nothing more is known of them than appears from this letter, it is
                     possible, that for the reasons mentioned by 
Mr Blackwood, the Duke
                     might think that there are grounds enough to say that for an enterprize
                     of so much difficulty as a telegraphic communication across the
                     Continent of North America, His Grace is not prepared to hold out the
                     expectation of assistance from the 
Govt to two Companies at the
                     same time?
                     
                     It is, however, a question that requires care.
                     
                  
                  
                   
               
               
                  
                  
                     Duke of Newcastle
                     The answer might be that in any case it 
wd be necessary that you
                     should be furnished with much more information respecting the promoters
                     of this enterprize than is contained in the present communication before
                     such an application as that of 
Mr Scarby's could be taken into
                     consideration.  But that he would learn from Papers laid before
                     Parl
mt that Y.G. has already promised such amount

 of support as
                     H.M. 
Govt would
                     be justified in affording to other parties who had in contemplation
                     the construction of a line of telegraph between Canada & 
B. Columbia.
                     
 
                  
                  
                   
               
               
                  
                  
                     This answer will be safe & proper. I have little doubt that 
Mr
                        "George Scarby" is the Company.
                     
 
                
            
            
               Documents enclosed with the main document (not transcribed)
               
                
                  
                  Prospectus of the 
British Columbia Telegraph Company, Limited, proposing to form a joint stock company.
 
            
            
            
               Other documents included in the file
               
                
                  
                  
                     Elliot to 
Scarby, 
12 August 1863, requesting more information on the proposed telegraphic line.
                     
 
                   
            
            
            
               Documents enclosed with the main document (not transcribed)
               
               
               
                
                  
                  
                     W.A.G. Young, Colonial Secretary, to 
D. Huddell, 
16 June 1863,
                     advising that the colonial government would view with satisfaction
                     any proposal for the establishment of telegraphic links between
                     various points in the two colonies.