The New York herald., 1877-11-20
OCEAN CABLES.
A HISTORY OF CHARTERS AND DEEP SEA TE-
LEGRAPHY-ExcLUsIvE PRIVILEGES WHICH

HINTS TO coNGREssMEN.
To THE EDITOR HERALD:-
/ send you q statement OF the transatlantic cable
question which may not be uninteresiing to your
world ~ide readers will In the FIRST place refer TO
the acts OF Congress relating thereto. The lrst act
passed by Congress was PRIOR 10 ls5s-the precise
year do not recoect-whch granted to the company
then preparing TO lay cable between ireland and
Newfsun an annual subsidy for period OF years
on certain conditions; but the subsidy never
called for received by the company. The cable
laid 1858 failed few days after 1t had been sue
cessfuy laid and had established the fact that mos
sagcs could be transmitted through 1900 miles OF
cable. The government OF Newfoundland had granted
to that company monopoly for dlty years and GER
tam grants OF lard in Newfoundland This grant from
Newfoundland was sold 10 the company organized in
London Tor Els sterling in stock Of the company.
The first cable which cost about sioO 900, was
total loss After several years, through the ndefati
gable exer,ions ot Mr.. Cyrus W. Field, capital was
raised in England lay second cable. in 1865, and
u third cable was laid IN 1865 by the samc company
known as the Ango-American Cable Company
The second act OF Congress relating to this subject
was passed in 1866 and granted permission 10 CON-
rany organized in New York, called the American
Cable Company, to land and MAINTAIN cablcs between
the United States ana Europe Tor period OF twenty
years, provided active operations should be begun
action known TO have boon takcn under this pcrmis-
son Congress sale by the grantees OF the
right lay cable between Ireland and New Hampshire
TO Direct United states Cabl. Company for large
sum OF moncy-l believe, Gao, 900 sterling This sale
made by the late Mr. Eastman, OF Now hampshire.
and his associate, Mr.. w. G. Jewstt: and this last
named person received co. 600 his share, and to
HIM the right, under that act Of Congress- to
lay cables from Cont nent OF Europe TO the Uaited
States II was represented in Europe that this act OF
Congress had upon the grantees exclusive
privilege Tor twenty years, whereas IN fact the
grant is not exclusive, is tnere any clause in IL
which can DO SO construed. Persistent Efforts have
been made for the past ten years in Europe 10 sell
rig under this grant
Under this act Congress OF 1866 the Direct United
States Cable Company landed its cable at Rye Beach,
IN New Hampshire, In 1874. IL is very evident that
tho letter of tho Secretary Of State (Mr. Evarts OF
July 23 1877 informing that company that "the
soldation OF It with the Anglo American Company
violation Of the grant under which that ca0lc WAS
laid was wr,l,on by the Secretary without referring
TO tue Congress- OF 1866 and tho United States
cannot legally Interfere with the working
OF that cable.
Tie third act of Congress passed In 1861 grant,
ing exclusive privilege to the International Ocean
Telegraph Company Tor fourteen years 70 Land and
MAINTAIN u cable between Florida and Cuba, and
limit OF 81 per message made. The cable
ia,d from Havana to Key West, and thence TO The
In august, 1876 Congress passed an act to authorize
certain persons named in the act TO land and MAINTAIN
a cable connecting the American and Aslatic coasts
On tho 14th inst company was orsant5ed Under this
act IN San Francisco with acapi.al OF DO oOo With
Leland Stanford, president; Lcdr0 Moreno and John
T. N Her. vice presidents; A. 5. Haliidei, secretary,
and Mark l. Mcdonald, treasurer. The directors are
George ;. Dodge W liam Morris, Eugene sullivan,
William simon frank pxley. n. X Martin, all OF
California, and henry Reilly Of Now York
The third section OF the act OF Congress is as ol-
limit the United States in granting to other persons or
compauies similar privileges herein contained" In
February 1877, Congress passed act granting per-
mission TO tn.oe citizens OF Baltimore, named IN the
act. land and submarine cables on the Al
lantic coast of the United States, TO connect the
American and European coasts, with tho provso tnat
at least one cable shall be iaid aud opera
ting between Europe and the United States
WITHIN three years from the approval OF tins
act, and that the tariff shall be reduced
TO shilling, British per word. and no amalgama-
union with any other cable company allowed.
The third section is similar To that IN the Pacnc cable
London noted in the cable dispatches published in
the HERALD on Saturday, lith inst, as follows:-Mr
Jonn Pender, chairman OF the New Direct Caoe Com
pany stated 10 his shareholders at meeting held
the 10Th inst, IL was offered some months ago con-
cession Tor ABOUT ESQ., 900, but informed the gentle
man who wished dispose OF it, that insload Of pay.
ing anything for II, If he was 10 oller me El5O, 600
would not un~ertake to carry out It's terms" The
terms 10 which Mr. Ponder oblected were the
limit oi the tarn 10 one Sd Hing, Brush, word as
experience has proved that with the present known
system, "a cable would transact enough business,
even II employed without intermisson during
tho hours OF the day, to sui-
ccut to pay two per cent on It's capital
/ now come to the OF a new cable company set
forth IN D introduced III the House of Repre-
sentatves to-day by Mr.. Lcrng OF Massachusetts, to
aid in the establishment vi additional tcegraphic
municaton between the United States anu Europe,
and Tor other purposes II proposes TO give liberal
charter TO the American Cable Company, III consider
alton OF the free TRANSMISSION OF government mes
and their preference IN point oil time, and re-
OF two-thirds the present rate OF tolls for
the pubic, provided that the number OF words sent
by the government shall not exceed the highest num-
Der OF words sent In any year since cables
we're introduced. The cnarer proposes to confer the
usive right land cables tue Atlantic coast. 1t
IS further provided that i've years alter said
cables shalt have been IN working order be-
tween the city OF New York and England aud France
The shalt be reduced TO twenty cents pcr word,
and at The expiration oil eight years to seventeen
cents IN twelve years to thirteen cents and after NJ
teen years 10 ten cents per word No message to Go
charged less thun ton words 1t is useless 10 make
comments Oh tins bill, Tor the simple reason that the
exclusive right proposed TO be conferred is opposed
to the policy OF the government and to It's oflcial
declarations aud previous acton IN the case OF the
French cable landed al Duxbury
In the OF the French cable President Grant
fused PERMISSION for It's being landed Oh the shores
Of the United States Tor t~o reasons One was that in
grant maze by the French government the exclusive
connect France ana the United states by cable
conferred upon tho eranter Baron Erauger,
and second because the tarT had been nxcd by tho
Frepcn government, IN both OF which cases President
Grant considered mat the French government mad
legislaied ON matters CONCERNING the United States
ana her czcns even to the controlling the shores OF
tie Uuled states respect to cables between France
and the United States Nor was the cable allowed 10
be landed uuti an assurance had been gwen ny The
government of France that the exclusive right should
be Withdrawn, whcn was done. This matter was the
subject OF u long correspondence between the two
governments. The evil effects OF special acts oil Con-
greas granting cable facilities TO special persons are
exemplihed in the history OF the acts heretofore
named. They are burden upon the cable company,
which has TO pay to the grantees large sums Of
money Tor their privileges.
| Mr.. Cyrus W. Field. than whom there can be no
better authority, said, according TO reporter for the
tribune, that the franchise whicn the Direct Cable
Company purchased from MIR. EASTMAN was worth
= nm nlllli mn A
oil II the government vi the United States should or
der its cable to be removed IRON the shores OF tho
unitcd States. should not omit TO state the fact
\ that the French Cable Company paid u large sum OF
money to several persons tor permission to land It's
cable the shores of New York, which bad been
granted 10 tnem by the Legislature OF New York; but
after paying for ibis privilege tnat company deemed
II 10 land the cable Duxbury IL ~ very evi
dent that the special acts OF Congress granting
cable privileges are great incnmbrances TO ca
blv enlcrprisos, and serve only 10 put noney
in the pockets Of tho grantees. gen
eral bill relating to telegraph communica-
hatx od tria