This would be a great misfortune to all concerned, because the prosperity of the Russian lines will be so intimately connected with ours that both must be affected from like causes, and a failure to secure the Chinese business would be a very serious mistake on the part of all concerned. I have the honor to be your excellency's most obedient servant, The undersigned has the honor to call the attention of his excellency Prince Gortchacow, vice-chancellor and minister of foreign affairs, to the extract from the London Times of December 12, 1864. It would seem so important does England deem the telegraphie communication with China, that a journal has been established called the London and China telegraph. That journal has taken advantage of an incautions statement in the St. Petersburg Journal, to say that no concession has yet been made to Mr. Collins by the Russian government, evidently with a view to encourage the friends of the English line to persevere in their China line; which if made in advance of the Russian line, into that rich and populous country, will forever, perhaps, divert the telegraphic communication with western Europe from this empire to the south of Europe, to the loss of millions of rubles to his Imperial Majesty's government, to say nothing of the political influence which England may thus gain, to react again upon the vast countries yet to be opened up in a land where, for ages, the wealth of all the world has accumulated. The merchants of the United States, whose interests are reciprocally identified with those of Russia for all time in this joint line, are fully awake to the importance of early and ethcient action in this matter, to which the American minister would most respectfully urge the immediate attention of the foreign department. The undersigned begs leave to reassure his excellency Prince Gortchacow of his most distinguished consideration. CCC. Mr. Clay to Prince Gortchacow. C. M. CLAY. No. 61.] LEGATION OF THE UNITED STATES, St. Petersburg, Russia, December 19-31, 1864. The undersigned has the honor to enclose to his excellency Prince Gortchacow, vice-chancellor and minister of foreign affairs, &c., copies of despatch No. 108 A, from the Washington government, and No. 99 B, to the Hon. Anson Burlingame, the American minister at Pekin. From these his excellency will see that the State Department fully indorses his previous suggestions to the Russian government in respect to the Chinese telegraph. The American minister reassures Prince Gortchacow of his most distinguished consideration. ССС. Mr. Clay to Prince Gortchacow. C. M. CLAY, No. 63.] LEGATION OF THE UNITED STATES OF AMERICA, The undersigned, minister plenipotentiary, &c., of the United States of America, begs leave to present to his excellency Prince Gortchacow, vice-chancellor and minister of foreign affairs to his Imperial Majesty, &c., the memorandum of the suggestions made in conversation to-day with his excellency in regard to the Russian American telegraph grant, and which his excellency Prince Gortchacow was kind enough to request the undersigned to reduce to writing for the use of the council of ministers. This grant was made to Perry McD. Collins by the Siberian committee, and confirmed by his Imperial Majesty on the 15-27th day of May, 1863, and was made conditional upon the following stipulations: "Finally, the Russian government will not begin the construction of the intermediate line before you (Collins) will have presented an act of final formation of your company for the establishment of your projected telegraph, and likewise have proved as to the emission and sale of its shares at least one-half of the minimum cost of your projected telegraph, and the production of a plan of the direction of the line finally selected and approved by your company." Mr. Collins has produced the proofs required by this clause; which proofs are acknowledged by the imperial telegraphic department to be ample and satisfactory. Here, it would seem to the undersigned, this whole transaction should have at once been closed by a single declaration of the imperial government that the conditions of the grant had been complied with, and by a simple reduction, on the part of the government, of the original grant to the usual legal formulas. But Messrs. Collins & Sibley have been detained here three months, awaiting the action of the telegraphic department. In the mean time, the said department has submitted to Messrs. Collins and Sibley, the one a director, the other the president of the company, organized under the grant above named, a paper termed "Project of agreement" for the construction of telegraphic communication between Russia and America, dated December 7-19, 1864, in which twenty-six propositions have been introduced. Some of these are new. Some limit, and none of them enlarge, the franchises of the original grant. But the representatives of the company, in a liberal spirit, have acceded to all of these conditions, except the one in reference to the forfeiture of privileges, and except the propositions involved in the following clause of the aforesaid imperial grant: "For the encouragement of the company, the government will allow a deduction (rebate) of forty per centum upon the net profits of despatches transmitted along the Russian telegraph lines solely to America and back." Under this clause the telegraphic department insists that the expenses of the administration of the whole telegraphic system of Russia shall be taken into account, in order to ascertain "the net profits of the despatches transmitted along the Russian telegraph lines solely to America and back." This mode of reckoning would deprive the company of any "encouragement" whatever, and is utterly subversive of the language and spirit of the original grant, upon the faithful performance of which by his Majesty's government, only, could capitalists have been induced to risk their means upon this new and hazardous project. To avoid, then, further loss of time and useless discussion, Messrs. Collins and Sibley ask that the original clause of the imperial grant above named shall be inserted verbatim into the present "project of agreement" submitted by the department. The American minister is fully persuaded that it is neither the desire of his Imperial Majesty nor his Imperial Majesty's ministers to depart from the liberal spirit which has governed them in initiating this great work, in which the United States of America and Great Britain have co-operated so cordially, and which, though world-wide in its beneficence, must yet especially redound to the interests of Russia. H. Sibley is the president and director of almost the whole of the American telegraphic system, and his services are urgently needed elsewhere, and Perry McD. Collins is a director in the new company-has four vessels, men, and materials already on their way to the Pacific ocean to lay down the telegraphic line, and his services are all-important in the direction of the projected work. The American minister, therefore, feels that he can with propriety urge upon his Imperial Majesty's ministers in council speedy action for the benefit of all parties concerned. The minister of the United States avails himself of this occasion to express to his excellency Prince Gortchacow his sentiments of the highest consideration. ССС. Mr. Clay to Prince Gortchacow. C. M. CLAY. No. 64.] LEGATION OF THE UNITED STATES, St. Petersburg, Russia, March 1-13, 1865. The undersigned, minister of the United States of America, would respectfully inform his excellency Prince Gortchacow, vice-chancellor, &c., that by the act of Congress approved July 1, 1864, based upon the Russian grant (No. 820) to P. McD. Collins, esq., & Co., to build a line of telegraph connecting Russia and the United States, and confirmed by his Imperial Majesty May 15-27, 1863, the Secretary of the Navy was required to furnish to said company a suitable vessel to aid in the construction of said line. By reference to a telegram this day received by Hiram Sibley, esq., (a true copy of which is hereunto attached, marked B B,) his excellency will see that the Secretary of the Navy, being satisfied that said Collins & Co. have furnished the necessary evidence to the Russian government of the fulfilment on their part of the obligations imposed upon them by the said grant of the 15-27th May, 1863, (No. 820,) has ordered a steamer in the Pacific ocean to be put at the disposition of said company, in order to carry out, on the part of the United States, the stipulations of said act of Congress. The American plenipotentiary, therefore, begs his excellency Prince Gortchacow to give an order by telegraph to the Russian minister at Washington, or to some other suitable person, for the free and friendly admission of the said vessel, and all other ships, men, and materials used by said company for the construction of said line into Sitka and other Russian ports upon the Pacific ocean. The American minister seizes the present occasion to renew to his excellency Prince Gortchacow assurances of his most distinguished consideration. C. M. CLAY. Prince Gortchacow to Mr. Clay. ST. PETERSBURG, March 5, 1865. The undersigned makes it a duty to inform Mr. Clay, envoy extraordinary and minister plenipotentiary of the United States of America, that he hastened to transmit the note which he did him the honor to address to him on the 1-13th March, 1865, to the director in chief of the administration of posts and telegraphs. The acting privy councillor, Tolstoy, has just informed him that the American undertakers of the establishment of the Russo-American telegraph have not yet signed the convention relative to that enterprise. Therefore, the undersigned is not able to answer at this moment to the wish expressed by the minister of the United States of America, and to ask for the despatch to the Russian authorities of the orders necessary for the reception of the vessels and American materials sent to Sitka. He seizes this occasion to renew to Mr. Clay the assurance of his very distinguished sentiments. GORTCHACOW. Mr. Clay to Mr. Seward. No. 73.] LEGATION OF THE UNITED STATES, St. Petersburg, Russia, April 2, 1865. SIR: I have the honor to acknowledge the receipt of your despatches to 132, inclusive. The "convention" between Messrs. Sibley and Collins and the Russian government has been signed and confirmed by the Emperor, and orders given for the admission of men and material of the company into the Russian possessions; of all of which I have been officially notified. I will write you further on that subject in a few days. I am, sir, your obedient servant, Hon. WILLIAM H. SEWARD, Secretary of State, Washington, D. C. C. M. CLAY. Mr. Clay to Mr. Seward. No. 74] · LEGATION OF THE UNITED STATES, St. Petersburg, Russia, April 5, 1865. SIR: I have the honor to enclose to you (A A) the protest of Messrs. Sibley and Collins in reference to the telegraphic grant of the Russian government, together with my note (B) to Prince Gortchacow. The two papers will explain the issues made. I must say, however, that whilst I know the construction given to the original grant of May 15, 1863, O. S., by the Russian government, will not give the company as much money as the real import of the section 17 would warrant, yet I believe the charter a good and practical one, and therefore I do not share in the despondency of H. Sibley, esq. Believing, however, that I contend for his just rights, I shall steadily pursue all proper means to cause them to be respected. Your obedient servant, Hon. WILLIAM H. SEWARD, Secretary of State, Washington, D. C. C. M. CLAY. (A A.) Messrs. Sibley & Collins to Prince Gortchacow. ST. PETERSBURG, March 9-21, 1865. The respectful and dutiful protest of Hiram Sibley and P. McD. Collins against the decision of the Russian government and the imperial telegraph department of Russia, in regard to the remarks added to the 17th section of conditions of agreement, signed and done in convention at St. Petersburg on the 9-21st March, A. D. 1865, between the director-in-chief of the department of imperial telegraphs, his excellency J. Tolstoy, on the part of the imperial government, and the undersigned, on the part of the Western Union Telegraph Company, of Rochester, in the State of New York, United States of America, under an act of the Siberian committee, sanctioned by his Imperial Majesty on the 15th day of May, A. D. 1863, No. 820. This protest most respectfully and dutifully showeth, that by the original grant, No. 820, cited above, Major P. McD. Collins, a citizen of the United States of America, was authorized to form a company for the construction of a telegraph from the mouth of the Amoor river, in Asiatic Russia, to the frontiers of Russian America. In this original grant certain inducements were held out, in order to encourage and effect the formation of a company for the construction of said telegraph, one of which was that, "for the encouragement of the undertaking of the company, the Russian government will allow a deduction of 40 per cent. upon the net profits of despatches transmitted along the Russian telegraph lines, solely to and from America." This promised aid formed the leading inducement in the formation of the company and the subscriptions to and sale of its shares. The words of the grant No. 820, as well as the true intent and meaning of the passage cited above, now section 17, incorporated in the convention signed on the 9-21st March, A. D. 1865, bound the imperial government, as the company and the undersigned believed, in good faith, that the "net profits on despatches to and from America' were to be ascertained solely in reference to American despatches passing over Russian government telegraph lines. Now, however, the imperial telegraph department has interpreted the meaning of this clause, as we consider, quite differently. The department of telegraphs contend, in order to reckon the net profits of American despatches, that the whole system of Russian telegraphs must be brought into account, and that the expenses of the whole administration of government telegraphs must be paid before the net profits on American despatches can be allowed to the company. To this mode of reckoning we cannot agree. We contend that the cost and charges upon despatches to and from America should only be reckoned, and not the gross sum of all government telegraphs. The company was formed and the capital raised upon the original promise of the imperial government; England and the United States granted co-operative charters upon the basis of the original Russian grant, No. 820; the company purchased vessels and freighted them with materials; engineers and exploring parties were sent forward, and the government of the United States, under the act of Congress, furnished a steamer in aid of the undertaking of the company, We came to St. Petersburg in October, A. D. 1864, and laid before the director-in-chief of ways of public communications, General Melnikoff, the proofs required in the original grant, No. 820; these proofs were acknowledged to be satisfactory by the department, and we awaited an early response. But after several months of ineffectual entreaty and correspondence with the imperial department of telegraphs, we were compelled to assent to its views, as we believe, subversive of the original grant, No. 820, in regard to the allowance of the 40 per cent. upon American despatches. Our ships were upon the sea, our capital invested, the enterprise happily on foot, when we found the undertaking must be abandoned, or submit to the views of the department of imperial telegraphs. Our views, and the correspondence upon this question of 40 per cent. encouragement as promised in the original grant, No. 820, are at great length before the department, and consequently it is not deemed requisite to repeat them here. We appealed in vain against the decision of the imperial department of telegraphs as to the remarks to section 17. We were told by his excellency J. Tolstoy, director-in-chief of imperial telegraphs, that if we did not sign the conditions with the objectionable remarks added to section 17, the obligations of Russia would not guarantee to us the construction of our telegraph under the grant No. 820, and that all our rights under that giant would be forfeited, and that our capital and the money already invested must be lost, and the construction of the telegraph would be given over to another company. This we consider unjust, but, pressed by the vast interests involved, we were obliged to submit to his excellency's decision. We had gone on in good faith, as we believed, under the original grant, No. 820. Our capital was invested, and to abandon the undertaking under the decision of the imperial department of telegraphs would be the absolute destruction of the company and loss of all the capital invested. Therefore, in order to save the company from great loss, and the abandonment of the construction of the telegraph, we were forced to sign the convention, as insisted upon by his excellency the chief of imperial telegraphs, and resort to this protest for our protection and the rights of the company under the original grant, No. 820. Now, therefore, we, the undersigned, P. McD. Collins, the original grantee under the act No. 820, and Hiram Sibley, the president of the Western Union Telegraph Company, in our own names, and as the agents and representatives of said Western Union Telegraph Company, do hereby most respectfully, and as in duty bound, protest against the actions, doings, and decisions of the Russian government, and the imperial department of Russian telegraphs; claiming for ourselves and the company, or to whomsoever the rights and obligations of the original grant No. 820 may appertain, the full force, meaning, and intent of said original grant. His Excellency PRINCE GORTCHACOW, HIRAM SIBLEY. Vice-Chancellor and Minister of Foreign Affairs, &c., &c., &c. B. Mr. Clay to Prince Gortchacow. LEGATION OF THE UNITED STATES OF AMERICA, St. Petersburg, Russia, March 27–April 8, 1865. The undersigned has the honor to transmit to his excellency Prince Gortchacow, vicechancellor and minister of foreign affairs to his Imperial Majesty, &c., the protest of Hiram Sibley and Perry McD. Collins, esqs., American citizens, against the construction of the grant of his Imperial Majesty, of the 15th day of May, 1863, now put upon it by the Russian authorities. The American minister has the honor to renew to his excellency Prince Gortchacow assurances of his most distinguished consideration. Mr. Hunter to Mr. Clay. C. M. CLAY. No. 143.] DEPARTMENT OF STATE, Washington, April 20, 1865. SIR: I have to acknowledge the receipt of your despatch of the 22d of March, No. 72,which is accompanied by a copy of the correspondence between your legation and the Russian government concerning the intercontinental telegraph. You also inform this department that the charter to P. McD. Collins and company has been substantially agreed to by the representatives of the company and by the government of Russia, as originally approved by the Emperor Alexander in 1863. Your proceedings in relation thereto are fully approved. I am, sir, your obedient servant, W. HUNTER, Acting Secretary. CASSIUS M. CLAY, Esq., Sc., &c., &c., Russia. |