New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-02-25
TETFCRtpH SJyESJDIIS

4 telegraph subsidy bill has been introduced
by Senator Howe, to which we invite partcu-
lar attention. 1t authorizes the formation of
two cOmpanies-One 10 lay submarine cable
from the Atlantic coast to some part of the
European Continent by way of the Bermudas
and the Azores, the other to construct n line
from the Pacific coast to China and Japan.
Practically. almost the whole cost is TO be de-
frayed by the United States. In the first place
the Secretary of the Navy is "to furnish the
"same facilities and aid for surveys, explora-
"tiOns, and laying of the cables of these COM
"panies, as were furnished by the Navy De-
"partment in the surveys, explorations, and
"laying the first Atlantic cable" That is To
say, the route is to be surveyed at Govern
ment expense and ships furnished to lay the
cables. We did this for Mr.. Cyrus Fields first
experiments but we should not think of doing
it again. The capital stock of the Atlantic
company may DO Ss,0O0,OO0, and of the Pacific
company $l2.000,000. 1t is only necessary,
however, that One-fOurth of these amounts
shall be subscribed and per cent paid up;
that is to say, with cash capitals of 100000
and $4,000 respectively, the companies can
organize and issue bonds TO the amount of
S4000,OO0 and S6,0O0,00O, having 30 years to
run, and bearing interest at the rate of per
cent, principal and interest both payable in
gold. The Postmaster General is to guarantee
this Understanding to half million
year-and to make q contract with the com
panes Ito do the entire telegraphic official
business of the Government of the United
Estates with foreign Governments, or with
United States agents abroad, or officers of
" the United States stationed abroad.n at rates
not exceeding IS for ten words on the Atlantic
line and $l5 for ten words on the Pacific.
The sums receivable under this contract are
to be set off against the interest on the bonds.
Five years after beginning business the COM
panies are to set apart portion Of their earn
ings for the creation of a sinking fund, in
such amounts that the entire principal of the
bonds may be covered at maturity. If any
default is made in this condition, the Post
master-G General may seize and operate the
lines, applying the proceeds first to the sink
ing fund and next TO the satisfaction of any
debt due from the Company to the United
States after which the lines revert to the
stockholders.
The serious objections to this scheme are
evident. Ocean teegraphy il no longer in its
infancy, and does not need Government help
There are capitalists enough ready to lay cables
wherever commerce calls for them. Private
enterprise has given us telegraphic commune
cation with the Old World already and will
give us more as we need it. The bill now be-
fore us proposes to take away the valuable
Government custom from companies which
have run, or may hereafter run the risk of
laying cables at their own cost, and give it
all, for an indefinite period-if not forever
to companies which are to do the work
largely at tho cost of the United States. We
say companies" but apparently the Atlantic
and Pacific lines are both to be controlled by
the Same men. organized under different titles.
Tho charge for private dispatches would no
doubt DO roduOed by competition below Tho