The Story of the Atlantic Telegraph

The contractors, partaking the general confidence, came forward promptly with a new offer even more liberal than that made before. They proposed to construct a new line, and to lay it across the Atlantic for half a million sterling, which was estimated to be the actual cost to them, reserving all compensation to themselves to depend on success. If successful, they were to receive twenty per cent. on the cost, or one hundred thousand pounds, to be paid in shares of the Company. They would engage, also, to go to sea fully prepared to raise the broken end of the cable now in mid-ocean, and with a sufficient length, including that on board the Great Eastern, to complete the line to Newfoundland. Thus the company would have two cables instead of one. In this offer the contractors assumed a very large risk. They now went a step further, and in the contingency of the capital not being raised otherwise, they offered to take it all themselves--to lay the line at their own risk, and to be paid only in the stock of the Company, which, of course, must depend for its value on the success of the next expedition. It was finally resolved to raise six hundred thousand pounds of new capital by the issue of a hundred and twenty thousand shares of five pounds each, which should be preferential shares, entitled to a dividend of twelve per cent. before the eight per cent. dividend to be paid on the former preference shares, and the four per cent. on the ordinary stock. This was offering a substantial inducement to the public to take part in the enterprise, and it was thought with reason that this fresh issue of stock, though it increased the capital of the Company, yet as it was all to be employed in forwarding the great work, would not only create new property, but give value to the old. The proposal of the manufacturers was therefore at once accepted by the Directors, and the work was instantly begun. Thus hopeful was the state of affairs when Mr. Field returned to America in September.