The climax. [volume] (Richmond, Madison County, Ky.) 1887-1897, 1891-03-11
SPEECH OF HON. JAMES B. MeCRRARY
AGAINST GOVERNMENT SUBSIDIES.
Mr.. NIcCrcarv said


Mr.. Speaker-The subject which I pro-
pose to discuss is the Senate amendment
to the diplomatic and consular apprOpria-
ton bill providing for a submarine tele-
graph line from San Francisco, Cal, tc
the Hawaiian Islands, to be owned and
operated by a private corporation, but to
be paid for with money taken from the
United States Treasury.
Republican Congressman have granted
subsidies to railroad corporations by do
mating millions of acres Of the public
lands; they have granted subsidies to
manufacturers throughout the country by
a vast and comprehensive tariff system
they have granted subsidies to banks and
to trust companies, and they have dur
ing this Congress granted to the sugar
producers of the country millions of dol
lars per annum by way of bounty.
There Is pendingin the other end of the
Capitol, and soon to be brought to this
House, a bill which authorizes the Gov
eminent to indOrse the bonds of the Nj
caragua Canal Company to the amount
of SlO0,000,000, which means the pay
ment of that amount ultimately bv the
Government; and last night near the
midnight hour we finished the cOnsidera-
ton Of one of the most iniquitOus bills
that has ever been considered in the
Congress of the United States, which
sought to grant to certain ship-OWners OF
this country nearly S200,000,O0O from the
public Treasury. congratulate this
House and the country that conscientious
and patriotic members were strong
enough in their antagonism to that meas
ure TO strike down that colossal subsidy
50 that instead of S200,0O0,OOO, as the
original bill required, the amount apprO-
priated in the bill which passed viii not
exceed S18OO0,0OO.
We are asked to-day by the amend
ment which comes from the Senate, and
which has been fastened upon the diplO-
matte and consular bill, to appropriate
S3,000,O00 for the construction of a sub
marine cable line from San Francisco tc
the Hawaiian Islands. We have had
Mr.. Speaker, in the past, subsidies on
land and subsidies on the sea, and now
we are being asked to furnish subsidies
under the sea.
There are to-day nine submarine cables
connecting the United States with the
great commercial centers of the world
Not a dollar did the Government of the
United States give toward the construc-
ton Of any one of these cable lines, and
so far as l know the Government was
never asked TO give a dollar. But now
there Is a new departure. We are asked
to give 100000 to a private corporation
to construct a cable line.
Sir, I am not in favor of the Govern.
ment Of the United States embarking in
the construction of submarine cables but
if this Government is to furnish all the
money to build submarine cables, and il
it be deemed necessary to have them the
Government should own, control, and
operate them, and not a private corpora
ton.
read now the fifteenth clause of the
diplomatic and consular appropriation
bill added to the House bill in the Senate
as To enable the President TO make engage
ments with any such citizens or corporations # n,
United States as shall appear TO possess the mean.
and facilities necessary 10 that end, tor teiegraphil
communication between the United States and n,
Kingdom Of Hawaii, which engagements shall con
tain provisions sufficient, IN the judgment Of tn,
President to secure TO the Government and citizens
Of the United States early and adequate communi
cation by telegraph with said kingdom upon rea
sona5le terms for period OF not less than fourteen
years, sum not exceeding $4,000 Tor each year 10
and during which such communication shall be 81
in operation, and during which such engagements
shall be in course Of execution, not exceeding
U
authority shall not exceed 100000.
This Is a sugar-coated and carefully
! disguised proposition, but when properly
scrutinized it means a subsidy Of $1,000,
600 to the private citizens who construc
/ the submarine telegraph.
Under the reciprocity of the Mckinley
| tariff bill the President of the United
States is authorized under certain circum
] 1N1r 20 a Of :
pound upon coffee which is now free o
/ duty, and he was also authorized undCl
/ certain circumstances to impose a tax
upon tea Of 10 cents a pound, which
/ is also free, and upon hides OF j,
cents per pound, and to restore
/ the tax upon sugar. That Is call
ed reciprocity for the benefit of nations
bat under this bill, which seeks to civ,
/ $, 100000 to private corporation, 1t vii
| be reciprocity for the benefit of individ
uals, to enable them to still further pill
lage and plumber the public Treasury.
/ want tOcall the attention OF this Hous'
/ to the fact that the Senate amendment
/ contains no provisions limiting the pOwe
! of the corporation which takes charge 0
/ the money sought 10 be appropriated
! 1t does not require the affairs of the com
pany to be managed by board Of direc
/ tors, a majority of whom are to be citiZ
ems and residents of the United States
1t does not require the principal Office o
the company TO be in the United States
| It does not require that the compan,
shall annually make a report to the Sec
rotary of the Treasury, giving such de
tailed statements Of its affairs, assets, anC
liabilities as he may require, and a
| ought TO be done, considering the fac
that the Government Is to pay million
of dollars out of the Treasury toward il
1t does not provide that the compan,
shall effectively operate such lines with
sufficient staff of proper and efficient off
GERS, being citizens OF the United States
1t does not name the capital that is {
used for the construction Of the work
1t does not say in what time it shall b
completed, and it does not show the nc
cessity for the work. 1t does nc
provide that the company sha
not mortgage, assign, lease, deed, o
in any manner transfer the cable lin
without the consent Of the United Statei
1t does not provide that in case of war 0
other emergency the Government ma
take possession OF and operate the line
making compensation therefor, and
| does not provide that in case of eXtensiO
of the line beyond the Hawaiian Island
the Government shall without furthe
payment have the same rights and priv
leges with reference to the Transmission
of It's messages over such extension tina
it has over the line between San Francis
co and the Hawaiian Islands.
Mr. Ellis-What amount is to be PAL
by our Government each year to th
corporation, and how long viii the subs
dy last?
Mr. McCreary- Senate amend
ment provides that we shall pay out {
the Treasury $3.50, 900 per annum toward
the maintenance of this cable line for th
period of fourteen ycars, but not exceed
| ing S3,O00,000. In order to show how e1
orbitant this amount is / have only {
state what the United States paid las
year for cablegams. All the cablegran
sent by the Government to every part {
the world over any cable line cost las