Evening star. [volume] (Washington, D.C.) 1854-1972, 1870-06-28
Reply Of the International Ocean
Telegraph Company 90 the Memo.
riaI Of the Florida Telegraph Com.


IeiegraPh Company 90 the Memo
rial Of the Florida telegraph Com.
pany.
The answer of the International Ocean Tele-
graph Company, by William F. Smith, its Pres
ident, 10 the charges made in a memorial pre-
sented 10 both Houses Of Congress by the
Florida Telegraph Company on the cath of June
instant, respectfully shows:
This clmpany was organized under the laws
OF New York, on the I'd OF December, 1865 ON
the 20 day Of January, 1s66, an act was passed
by the Legislature OF Florida authorizing the
company 10 erect maintain, and operate teIe-
graphic lines through the State of Florida, and
giving certain e, cl Isve privileges for cert ain
Geographic submarine connections with foreign
countries This act reserved no power of re-
peal or modification, and conferred rights
which became vested upon the performance of
certain conditions, which were duly performed.
On the 9th OF May, 1o66, an act of Congress was
approved, reciting that the corporators of this
company were desirous of establishing a line of
submarine Geographic communication between
the United States and the West India islands
and the Bahamas; and, in order to facilitate the
said enterprise, Ii was enacted that the company
should have the sole privilege for a period of
fourteen years to lay, maintain, and operate tel
egraphic lines or cables over the waters, reefs
islands, shores and lands over which the United
States have jurisdiction, from the shores OF
Florida TO the Island of Cuba and the b ahamas,
either or both, and other West India Islands
For this the United States reserved the fcee use
OF the cable or cables to a telegrsphic operator
ssges 10 and from its military, naval diplom at
ic, or col salar ag eats, and ''said company not
to be permitted to charge and collect for mes
ages transmitted Shrough any OF its submarine
cables MOI than at the rate OF three dollars and
hfty cents for messages of ten wcrds, provided,
that the company shall cause the line TO be laid
in working order within the period Of three
years.
Not long after this, a grant of an exclusive
Irivilege for forty years, for making and main
tanning taiI telegIsphic communication ON = between
obtained from the Government of Spain. 1t
may be asked, why, having the exclusive priyi-
lege from the Spanish Government for forty
years, this company should resist the applica-
don Of the Florida Telegraph Company Tor the
repeal OF the act approved May 5, 1896. The
memorial of that company urges the repeal of
company of violation of law or other i'm
proper conduct When the bull was pre-
sented In the Florida legislature for depriv-
ing this company of its vested rights in that
company had violated any of the conditions OF
the law under which it was working In the State.
No charge, therefore, having been made against
the character or honor Of the company, no ef-
fort was made by it to defeat the bill in the Le
gislature, feeling secure, as We did, that judicial
remedies would protect our vested rights. The
memorial, however, of the Florida Telegraph
Company, now before Congress, makes direct
charges against the conduct and honesty OF the
board of directors of the International Ocean
IelegIaph company. It Is, therefore, not to
make this answer.
We propose to put before you an incontro-
vertible statement Of facts bearing SO directly
upon these charges, az, in our opinion will force
every fair and unprejudiced mind TO the con.
clusion that unfriendly legislation against US
would involve not the reputation OF the board,
but the good faith of the United States. When
the time came for obtaining the money neces-
sary to carry out the enterprise contemplated
by the company, great difficulty was encoun-
tered i'm procuring subscriptions, and the money
was finally raised by the corporators of the com
pany and their personal friends. This money
was freely subscribed on the faith of three dis
lists, and among them some who had been for
years engaged in establishing telegraphic CON-
municaton with Europe, declined TO subscribe,
on the ground of the peculiar hazards to be en-
countered in crossing the Gulf stream, and the
small amount of business likely to arise in an
slana eRIss ahfnf 6a9srds IN the lay
ing and maintaining telegraphic communication
across the Cult stream have been shown by the
fact, THAT in laying the two cables from Key
West TO Havana, heavy and unexpected ex-
penses has been incurred, and in both cases we
have been saved from total loss of the cables by
two cables, one has been disabled since last
autumn. The cable from Key West to the main
land Of Florida, being in shallow water, has
been much inteTfered with; and during the
present year it has been found necessary to
take il up and repair il in about forty places.
These cables were OF the best quality which
could be turned out from the workshops of
England. All this has forced us to join with
other companies in the purchase and mainte-
nance Of arepair-ship, the station of which Is
The memorial of the Florida Telegraph Com
pany sets forth as reason, for the repeal of our
franchise that the French Emperor, at the re-
quest Of the United States Government, "has
abrogated the monopoly by him granted to the
French Telegraph Company, and other nations
have readily acquiesced in this suggestion of the
by the public that the French Emperor refused
to abrogate the monopoly granted by him until
request to do so Wds made By the French Telegraph
Company itself. With reference to the assertion
that other nations have readily acquiesced i'm this
suggestion of the United States, it is understood
that North Germany, Belgium and Holland have
lately granted exclusive privileges for establish
ing telegraphic connection with their coasts.
There Is no evidence to show that the Spanish
government has ever deliberated upon the idea
Of abrogating the exclusive privileges which il
has granted, and Ii was only towards the close
of last December, long after the circular letter
on this subject of the Secretary of State was is
sued, that the Spanish government granted to
the Undersigned, an exclusive privilege for forty
years, for laying and maintaining a cable,
touching two points In the island Of Cuba. Ii
has never reached the public ear that the Brit
ish Government has declared its intention OF
sbrogating the exclusive privilege granted by
Newfoundland to the New York, Newfoundland
and London Telegraph Company.
The memorial further sets forth that this COM
pany has grossly abused its privileges by i'm
proper discrimination i'm its tariffs, and subjoins
as evidence the correspondence between the
New YORK, Newfoundland and London Tele-
graph Company and this company. Ii Is will
ingiy conceded that the International Ocean
Telegraph Company might make itself so odious
by discrimination as to afford just cause for
the interference in some way of Congress to
protect the oppressed. In this case, however, L
will show, first, that the companies complaining
Of this discrimination are not entitled to claim
the protection of Congress; and secondly, that
the discrimination which is in favor of citizens
Of the United States has its origin in good and
sufficient reasons. The New York, Newfound-
land and London Company is q foreign cor
poration, deriving its receipts from the COM
merce of the United States, or telegraphic
business passing through the United States.
Its office Is in the city Of New York, its board Of
directors meet there, its dividends are declared
there, and there Is the market for its shares
Under the internal revenue act of the 18th of
July, 1Se6, il is required 10 pay monthly into
the office OF the collector Of int rnal revenue an
amount equal to three per cent Of its gross re-
ceipts. Although the line has been open for
business for nearly four years, the company has
thus far managed to evade the operation OF the
law. Its conduct In this respect would not seem
especially to entitle il to claim the protection Of
the Congress Of the United States. The Amer
ican and European tariff books Of that company
and its associate, the Anglo-American, show
that since the opening of the line o discrimina-
tion has existed against the greater part of the