Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-08-27
have the inside track in Pacific cable mat

tiers.
There has been of late very active move
ment in Pacific cable projects. So far these
have all been for connection with Austria
lasia. Four such projects have been before
the public during the past year, none of
them. however. SO far matured and fortified
by capital as to give assurance of early
naturalization. They serve to indicate
pending movement. 1t is probable that the
completion of a cable as far as Honolulu
would be speedily followed by an extension
to Japan, whose connection with Atlantic
ports is distant and expensive. OF course,
every additional line connecting Honolulu
with continental ports would vastly en-
nance the profit of the first link uniting
Honolulu with San Francisco. That first
link could not be speedily self-supporting
so long as communication terminated at
Honolulu. Existing business here cannot
support a cable Government subsidies
would be necessary to its existence. But
instantly upon extension to either Aus
tralian or Asiatic ports, enormous profits
would pile in, as they are now enriching
British cables to Australia in the Indian
ocean.
A possible, and not improbable draw
back to this fiattering outlook for profits
would be a disposition on the part Of the
old cables from the westward to cut rates,
so as to cramp and distress the new trans
Pacific cables. The great British company
now conducting Geographic communication
with Australia has accumulated reserve
fund Of several millions with which to
crush out possible rivals. The active in
fluence of this company has had much to
do in hitherto discouraging cable construo-
ton in the Pacific, which would diminish
their profits.
SpaldiI g's Cable Project.
Our community has been much interest
edit might be said, agitated-for ten days
rast by the arrival of a new and verv
promising competitor in the Pacific cable
enterprise. Col G. S. Spalding arrived here
August 1, at once employed Mr.. L. A.
Thurston his attorney and, on the I'd,
presented to the government specifications
of cable contract, which he asked them
to make with himself. He is one of our
millionaire planters, able at his own eN-
pense to conduct all preliminary inVeStiga-
tons and negotiations His plans and
specifications are all complete. with cost of
cable, ship and all appurtenanceS. He has
obtained full and satisfactory assurances
in England of the needed supply of capital,
in case the required conditions are complied
with. He row begins to seek in Hawaii
part of the needed guarantees and subsi-
dies, intending to seek the remainder at
Washington.
Col Spalding has received from the gov
eminent most hospitable entertainment
of his propositions. and they have already
concluded with him a contract The only
material change in it from what he pro-
posed was a reduction of the twenty years
subsidy from $4,000 down to $4,000, s10,-
600 of which applies to an interisland cable
of one hundred and seventy-five miles in
sections, with an equal length of over
land wires. They have conceded his de-
mand for twenty years exclusive fran
chise, giving his company the sole right
to land any cable on Hawaiian soil from
the coast of North America for the period
named. This does not exclude any govern
ment cable not for commercial uses. They
also grant exemption from duties on all
materials used. and from taxation and har-
Dor dues on cabie-ship. together with use
of and right of way over all government
needed. These concessions
substantially like those which have here
tofore been promised to applicants for
cable franchises. none of which have come
to anything. The subsidy promised Is
somewhat larger than has been offered
hitherto.
Col Spalding on his part deposits as
guaranty s2500O in Hawaiian government
bonds. undertaking to begin the maaufac-
ture of the cables in eighteen months from
November 81 next. and to have them in
complete operation in eighteen months
more or by November 81, 1898 This, how
ever, is made dependent upon the very i'm
pcrtant condition that he shall be able
during its coming session to secure from
Congress a subsidy for twenty years of a
satisfactory amount. AS high as 500, GOO
year has been named. Failing sucn aid,
the contract ends, and the bonds are to be
returned.
There is no question that this PROPOSE
ticn of Spaldings is vastly more definite
and tangible one than any hitherto pre-
scented. AS such, 1t has been hailed with
and bv the government. 1t appears to offer
a genuine prospect of early cable communi-
cation with the outside world AS stated
above. the government promptly became
satisfied of the desirableness; Of closing
with Standings proposals, and made a
contract with him several DAYS ago This
contract however, was not so put into
finished shane as to be presented to the
legislature for ratification until two days
ago. AS was natural, a very serious cp-
position arose in the community to the
heavy concessions of subsidy and exclusive
franchise. Similar opposition found ex-
preston in both houses although ma
jority evidently favored the contract The
Senate appointed a committee of five to
confer with the chamber of commerce and
obtain a full expression of the views Of
business men.
u,,
That conference was held yesterday MORN
Ing between and IL o'clock, about twenty
FIVE merchants being present. Able discus
eio,, .ne,,ad on bo+b siaas Tbnrsto, made
..t ,.,,;a,s
vigorous ana luclo Statement, WHICH
served to dispel many doubts. 1t was
made clear that without an exclusive fran
chise it was hopeless to ask any capitalists
to advance money; also that large subsidies
ol,,l,,