An Act was also passed incorporating the Newfoundland Telegraph Company with an exclusive right of way for thirty years, including amongst other privileges valuable concessions of public lands. Having thus laid the groundwork of his scheme Gisborne immediately left for New York to raise capital; in this he was successful. Horace B. Tebbets and D. H. Holbrook were among the more prominent to join him, and a company was organized under the charter which had been granted. Soon after the formation of the Company Mr. Gisborne left for England, to purchase a submarine cable to connect Cape Ray and Cape Breton.
In 1852 thirty miles of the land line had been completed, and Mr. Gisborne had skilfully and successfully laid the first submarine cable of any considerable length in America between Cape Ray and Cape Breton and Cape Tormentine and Cape Traverse in Northumberland Straits.
In 1853, however, the cable gave out, about the same time the New York stockholders withheld their support; this caused the work to be suspended and the Company became bankrupt. Mr. Gisborne, finding himself unable to proceed, gave up all he possessed to pay the accrued debts, and for a time abandoned the enterprise.
Under such circumstances and with renewed courage Mr. Gisborne in 1854 returned to New York, to try, if possible, to resuscitate interest in his work. Among others to whom he now found access was Mr. Matthew D. Field, a New York Engineer, to whom he communicated his position and plans. Mr. Field, however, declined to interest himself, but politely offered to introduce him to his brother, Cyrus W. Field, at that time retired from active business. This led to several interviews, which had the effect of exciting a general interest in telegraph affairs in Mr. Field’s mind. Standing one evening over a large globe after one of these interviews with Mr. Gisborne, and tracing the lines overland to St. John’s, Nfld., an idea dawned on his mind which gradually strengthened its hold upon his imagination and soon absorbed his whole heart and life.
While following with his finger the track of the inland lines to the ocean, it was natural to traverse also the course of the steamships across the Northern Atlantic. It was but a step further to plant his finger on London and to feel that to reach the centre of English commercial life by telegraph, were this practicable, would be an achievement worth striving for.
Mr. Field, thus aroused to a comprehension of a possible opportunity to embark in a grand enterprise worthy of the age, began to make enquiry respecting the project of laying a cable on the bed of the Atlantic. He found that a recent survey of the Northern Atlantic, under the direction of Lieutenant Maury, had been made, and a plateau extending from Newfoundland to Ireland had been discovered, forming a safe and easy pathway for a submarine wire.
Professor Morse also assured Mr. Field that the project was entirely feasible, and warmly encouraged him in it, and asserted the certainty of its ultimate accomplishment.
Being now thoroughly convinced Mr. Field communicated with some of his intimate friends, amongst whom were Peter Cooper, Moses Taylor, Marshall O. Roberts and Chandler White, names familiar in the history of American enterprise. The scheme met with earnest attention and ready response. Mutual consultations resulted soon after in the organization of a company with a capital of one million and a half dollars to carry out the project and the immediate purchase of the Gisborne charter, it resulted also in the generous enlargement of the franchises granted by the colony of Newfoundland, the exclusive right to land ocean cables during fifty years, £50,000 to aid the work and fifty square miles of land when the cable was successfully laid was granted.
The Government of Prince Edward Island also made liberal grants of money and land. With these important arrangements completed on May 6, 1854, a company was formally organized under the corporate name of the New York, Newfoundland and London Electric Telegraph Company.
Peter Cooper was elected President.