| John Watkins Brett (Projector). | Charles Tilston Bright (Projector and Engineer). | Cyrus West Field (Projector). |
Let us see now what the united efforts of these three “projectors” had before them. The ground had already been to some extent cleared by their individual exertions when working independently, as well as in other ways. Bright, and also Whitehouse, had already proved the possibility of signaling through such a length of insulated wire as that involved by an Atlantic line. The soundings that had been recently taken showed that the depth was only unfavorable in the sense of being something far—but uniformly—greater than that in which any cable had previously been submerged. Finally, the favorable nature of the landing rights secured by Field on the other side went a long way toward insuring against competition, apart from the actual permission. There yet remained, then, the necessity of obtaining (a) Government recognition, and, if possible, Government subsidies; (b) the confidence and pecuniary support of the moneyed mercantile class; besides which a suitable form of cable had to be designed and manufactured, as well as all the necessary apparatus for the laying of the same.
As a result of considerable discussion, the two governments concerned eventually came to recognize the importance and feasibility of this undertaking for linking together the two great English-speaking nations, and the benefits it would confer upon humanity. Both the British and United States Governments gave a subsidy, in return for free transmission of their messages, with priority over others.[11] This, however, only{40} jointly amounted to 8 per cent of the capital, and was payable only while the cable worked.[12]
The Atlantic Telegraph Company was registered on October 20, 1856, and the £350,000 decided on as the necessary capital for the work was then sought and obtained in an absolutely unprecedented fashion. There was no promotion money, no prospectus was published, no advertisements, no brokers, and no commissions, neither was there at that time any board of directors or executive officers. The election of a board was reserved for a meeting of shareholders, to be held after allotment by the provisional committee, consisting of the subscribers to the Memorandum of Association. Any remuneration to the projectors was left wholly dependent on, and subsequent to, the shareholders’ profits being over 10 per cent per annum, after which the projectors were to divide the surplus.
The campaign was opened in Liverpool, the headquarters of the “Magnetic” Company, the greater proportion of whose shareholders were business men—merchants and shipowners—mainly hailing from Liverpool, Manchester, Glasgow, and London, who appreciated the value of America being connected telegraphically with Great Britain and Europe through their Irish lines.
The first meeting of the “Atlantic” Company was convened for November 12, 1856, at the underwriters’ rooms in the Liverpool Exchange. This was called together by means of a small circular{41} on a half-sheet of note-paper, issued by Mr. E. B. Bright, manager of the “Magnetic” Company. The result was a crowded gathering composed of the wealth, enterprise, and influence of Liverpool and other important business and manufacturing centers. Similar meetings were also held in Manchester and Glasgow, and a public subscription list was opened at the “Magnetic” Company’s office of each town. In the course of a few days the entire capital was raised, by the issue of 350 shares of £1,000 each, chiefly taken up by the shareholders of the “Magnetic” Company. Mr. Cyrus Field had reserved £75,000 for American subscription, for which he signed, but his confidence in his compatriots turned out to be greatly misplaced. The result has been thus recounted by his brother: “He (Cyrus Field) thought that one-fourth of the stock should be held in this country (the United States), and he did not doubt from the eagerness with which three-fourths had been taken in England, that the remainder would be at once subscribed in America.” In point of fact, it was only after much trouble that subscribers were obtained in the States for a total of twenty-seven shares, or less than one-twelfth of the total capital. Thus, notwithstanding their professed enthusiasm, the faith of the Americans in the project proved to be strictly limited. At any rate, they did not rise to the occasion. Indeed, the undertaking was very much an affair of the Magnetic Telegraph Company, the officers of which led the shareholders to take a lively interest from the first in the Atlantic project as forming the nucleus of a great extension of business.{42}
The first meeting of shareholders took place on December 9, 1856, when a board of directors was elected. This included the late George Peabody, Samuel Gurney, T. H. Brooking, T. A. Hankey, C. M. (afterward Sir Curtis) Lampson, and Sir William Brown, of Liverpool, no less than nine (representing the interests of different towns) being also directors of the “Magnetic” Company, including Mr. J. W. Brett. The first chairman was Sir William Brown, subsequently succeeded by the Right Hon. James Stuart-Wortley, M.P. Two names may be further specially referred to as destined, in different ways, to have the greatest possible influence in the subsequent development of submarine telegraphy. Mr. (afterward Sir John) Pender, who was then a “Magnetic” director, afterward took a leading part in the vast extensions that have followed to the Mediterranean, India, China, Australasia, the Cape, and Brazil, besides several of the subsequent Atlantic lines. Up to the time of his death he was chairman of something like a dozen, more or less allied, cable companies, representing some £30,000,000 of capital, and mainly organized through his foresight and business ability. Then, again, Prof. William Thomson, of Glasgow University, was a tower of scientific strength on the Board. He had been from the outset an ardent believer in the Atlantic line. His acquisition as a director was destined to prove of vast importance in influencing the development of transoceanic communication, for his subsequent experiments on the cable during 1857-’58 led up to his invention of the mirror galvanometer and signaling instrument, whereby{43} the most attenuated currents of electricity, which are incapable of producing visible signals on other telegraphic apparatus, are so magnified by the use of a reflected beam of light as to afford signals readily legible. (A full description of this invention will be found in its proper place—farther on.)