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By 1868, Werner was engaged in construction of a stateof- the-art Indo-European telegraph line from London to Calcutta, completed in 1870. In the meantime, S and H faced its first serious setback in 1864, only a year after establishing the first Siemens cable factory in Woolwich, England. The firm lost half its capital when it failed to complete a contract with the French government to lay a cable (using its own materials) from the coast of Spain to Algeria. This setback played a role in Halske’s decision to end his participation in the English subsidiary of the company, which was restructured under the name Siemens Brothers. Halske retired from the internal direction of S and H in 1867. During the 1870’s, the Siemens company would rank among the top contractors involved in laying longdistance underwater telegraph cables. The zenith of its accomplishments in this field came in 1875, when the transatlantic cable linking Ireland to the United States was inaugurated.