The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1894-12-18
Che 1aily 9 ,llstin.
TUESDAY, DEC. 10. 1894
SIR JOHN PENDER's RECORD.
The Pacific Gable will Go and Will
Benefit Montreal.


SR:-I note your editorial OF Nov. |
10, with reference to Sir John Pen
der and the Pacific cable, and feel
that you do not fairly estimate that
gentleman's position in the cable
world. While it is true, as you state,
that Sir John and his associates were
pioneers in the Atlantic cable bust
ness, aud took great risk in that en-
terprise, nevertheless they were not
there as philanthropists, and did not
neglect to seize and retain every adj
vantage they could secure in connec-
ton with this undertaking. There
are still in Montreal, and elsewhere
throughout Canada, shareholders in
the first Atlantic Gable Company,
who feel that IL the original investor
is to be classed as q philanthropist,
then they are most certainly entitled
to this distinction, for they have had
very light dividends, and did not
participate in the handsome profit
that was divided up among the in
siders at the time the Newfoundland
Company was absorbed by the
Anglo. Exclusive rights were Sc
cured in Newfoundland for a great
many years, IL being thought at that
time that the utmost length that a
submarine cable could be worked was
from Ireland to Newfoundland, and
these gentlemen thought they had
secured a monopoly of the business
for a lifetime. The history Of Sir
John Pender's connection with At
lantic telegraphy, whenever he has
met competition, has been that Of .
'despot.' He has been for years the
soul Of the Globe Telegraph and
Trust Company, which, with share
capital Of f3,6OO,OOO, purchases the
shares Of various cable companies,
assisting the cable ring to control
different cable organizations, with q
view Of maintaining or forcing har.
mony OF action. Through this and
kindred combinations Sir John Pen
der and his associates have been able
to force nearly every competitive
Atlantic cable company that has
ever been started, into his Atlantic
cable pool The FIRST was the Direct
Cable Company, which, through q
war of rates, was forced into the
pool In 1875. Then came the
French Cable Company, which,
through similar pressure, was knock
ed under in 1880. In 1881 Mr.. Jay
Gould doomed up, but Sir John did
not dare fight him, fearing not only
Mr.. Gould's great ability and wealth,
but also the Western Union Tele.
graph Company, whose land lines
he controlled, and such terms were
made with Mr.. Gould as permitted
bis turning over to the Western
Union Company, on a basis OF Sli,-
100000, two Atlantic cables that had
cost less than half that sum. The
next man who appeared on the scene
was Mr.. John Msckay, who, with
Mr.. James Gordon Bennett, was i'm
plored by Sir John not to waste
money in such q foolhardy enter.
prise, A. II would be impossible for
them, as amateurs, TO succeed, pitted
against such pioneers In the business
AZ he aud his associates. Sir John
is appealing now, in similar strain,
TO the different governments who
propose laying the Pacific cable,
with the practical reservation, how
ever, that II they are bound n
squander their money, he Is the man
TO entrust with II. In this connec-
ton the President OF the Ottawa
Colonial conference sums up his
position: Sir John Fender makes
three distinct statements, first, that
the cable cannot be built; second
that IL built II cannot pay; third
that IL IL is To be built, he wants Ia
build it, Mr.. Mackay and his as
sociates were, however, not to be In
undated, and the two cables OF the
Commercial Company were laid Ia
December, 1884, ant, a tariff OF forty
cents per word was adopted, q
against the previous rate OF fifty
cents. Sir John aud the cable poo
protested against this reduction, and
threatened that unless the rates
we're raised, and the Commercia
Company accepted its pro rata pro
portion OF q pool, such a war o
rates would ensus as would ruin al
concerned. The Commercial Com
pany, however, was obdurate, will
the result that the rates were 70
duced TO twelve cents per word an(
Messrs. Mackay aud Bennett fount
arrayed against themselves one o
the most gigantic combinations o
capital ever organized TO crush on
a competitor. For twenty sever
months the twelve-cent rate prevail
cd, aud the Anglo Company's "a
ceipts, which had been f699,O0O il
1874, when il had the entire traffic
aud f459,OO0 in 1884, when il had /,
pool with the Direct, French ant
Gould companies, dropped in 1881
under this internecine war, to flSS
600. This ended in the pool com
panies suing for peace, and the Com
mercial Company preserving its in
dependence, which il still retains
, This company's stock, owing to 1t
low capital and sound business me
thods, is now recognized as first
class Investment, paying a regula
dividend OF seven percent, and earn
ing considerably more, while tn
other Atlantic cable companies, wit
which Sir John is connected, are i
b a bad way, on account OF their ovel
capitalization. 1t is to these con
Germs that he no doubt points whe
, he says to the public that Atlanti
cable invest ments have been so uu
profitable that even government
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