The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1895-08-13

Following is the gist of the cable
contract between the Government
and Colonel z. S. Spalding, sub
mitted to the Legislature yesterday
by President Dole:
This agreement made this 18th day
of August, A. d. 1895, by and between
Sanford Ballard Dole, President of the
Republic of Hawaii, for himself and
his successors in Office, and in behalf
| of the Hawaiian Government, and by
and with the consent of the Cabinet,
party of the first part, hereinafter
called the "Government," and Zepha-
niah Swift Spalding, of Honolulu,
Hawaiian Islands, party of the second
part, hereinafter called the "Contrac-
tOr," witnesseth:
AGREEMENTS BY THE GOVERNMENT.
Grant of Exclusive Franchise.-Th
Government grants to the Contractor
the sole and exclusive privilege and
franchise for and during the full term
of twenty years from the first day of
November, A. ID 1895, to construct or
land upon the shores of the Hawaiian
group, a Submarine Electric Tele-
graph Cable or cables to or from any
point or points on the North American
Continent or any island or islands
contiguous thereto.
Cable to Terminate at San Francisco
and be Maintained for Twenty Years.
Provided, however, that the first
cable which may be constructed under
this franchise, and for the mainten-
ance of which a subsidy is herein
agreed to be paid, shall have its East
Qrn tQrnoinus of nr nQar Gan EranniGan
and its Western terminus at or near
Honolulu, and shall be maintained in
working order in conformity with the
specificatiOns, conditions and agree
ments hereinafter contained for twenty
years.
Exclusive Grant not to Conflict with
Treaty Rights of Foreign Governments.
This grant shall not prevent any
foreign government having existing
treaty rights with the Republic of Ha-
waii allowing any such government
so to do, to land a cable upon the Ha-
waiian group for other than CONNER
cial purposes, from any point on the
North American Continent.
GRANT OF SUBSIDY.
Amount and term of subsidy
The Government agrees to pay The
Contractor an annual subsidy of forty
twenty years from the date of the
establishment of telegraphic cOmmu-
nicatiOn between Honolulu and point
at or near San Francisco and between
Honolulu and the islands of Hawaii,
Maui, MolOkai and Kauai.
Time and place of payment of sub
sidy.-Such subsidy shall be paid in
equal quarterly instalments of ten
thousand dollars ($10,000), each, sub
to
collation. upon the terms and condi-
tions herinafter set forth.
Grant conditioned upon beginning
and completion of cable upon specified
dates and performance of other agree
ments-PrOvided, however, and this
agreement is upon these further ex-
press conditions, viz: (a.) That the
Contractor shall not be entitled to
such exclusive franchise, nor to the
payment of such subsidy unless the
construction of such cables shall
begin on or before the first day of May,
1897, and such telegraphic communi-
cation be established not later than
the first day of November, A. d.
1898. (b.) And further, that the
Government of the United States
shall join in this undertaking by the
grant of substantial assistance to the
Contractor; and provided, further,
tnaG upon the failure to obtain the
assistance of the United States Gov
ernment or upon the breach by or
failure of the Contractor to perform
or observe all or any of the terms,
or conditions herein con-
tanned, the Government may cancel
and terminate this agreement by
the Contractor by deliver
ing a written notice thereof at the
banking house of Bishop & Company,
in Honolulu, not less than sixty days
before such cancellation shall take
place. But the rights of the Contractor
under this agreement shall not
be terminated unless and until
the Government shall in writ
ing notify him or them that it
has cancelled this agreement
by reason of breach or failure, by
delivering written notice at the bank
ing house of Bishop & Company not
less than sixty days before the date
upon which such cancellation are to
take effect.
Suspension of Subsidy during tenn
porary failure of Cable.-(c) In case
of failure or interruption of Efficient
electrical connection and communal
eating power over the said cable or
ca tiles for a period Of more than
ninety 900 consecutive days, from
any cause other than Governmental
restraint or illegal obstruction, the
may deduct from the