The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1895-08-14


until he found a purchaser.
J. +. Hackfeld thought that a sub.
sidy from both the United States and
this country ought to be inducement
enough for the contractor. The con-
tract under consideration gives mo.
nopoly and high rates will be the re-
suit. Twenty years is long time;
he favored q shorter period if the
granting of the exclusive franchise
was inevitable. He did not like the
! clause which gives Mr.. Spalding the
right to assign the contract; he might
turn IL over at any time and then the
country would have to deal with a
foreign corporation.
| w. M. Giffard agreed with Messrs.
Lowrey and Hackfeld and thought
the time given for consideration was
not sufficient.
Senator Brown said that the esti-
mated cost of the cable would be
! S3,500,O00; the plan was TO divide the
subsidy granted by the two govern
| ments; one half to pay interest and
the other half to be placed sink
ing fund to redeem the bonds when
they mature.
Il l.. a. Thurston was allowed to ad-
4 dress the Chamber. He said that the
average life of a cable was from fif-
teen to twenty years, which virtually
means that Mr.. Spalding would
have to buy two cables before his con-
tract expires.i The speaker recited
| the advantages of the new contract
over all Others previously made. He
| said that the line would cost about
the figure stated by Senator Brown;
| the money to be borrowed. The
| lenders must be assured of both the
principal and interest and would not
advance the money unless an eX-
elusive franchise was granted. The
earnings of this end were problemati-
cal, but were estimated at 800, 900
per annum, which would mean over
that amount. The Western Union
company had refused to build the
line; John w. Mackey would not
touch it; the only possible hope for a
cable for this country is to pay sub
sidy and grant an exclusive franchise.
If the exclusive franchise is so valu-
able and it will create monopoly,
why did Judge Hartwell and
others fail to make a success? asked
the speaker. He spoke of Mr.. Flem-
ing's proposition and did not believe
he would succeed and clearly stated
that unless the exclusive franchise
was granted this country would not
get cable.
J. q. Spencer spoke in favor of the
measure and hoped it would go
through. 1t appeared to him that q
few people were afraid that Mr..
Spalding would make few dollars.
He favored both the subsidy and the
exclusive right.
Mr.. Thurston spoke again, saying
that when the cable was built, the
Government could cut off the mounted
police altogether and reduce the
military forces, saving 100000 yearly
thereby. This would more than pay
the subsidy and besides the cable
would increase the amount of ship
ping at this port. The Government,
in the past, had paid nearly $4,000 a
year to the Oceanic Steamship Com |
pany for mail service; the cable |
would be of more benefit, admitting |
the cOmpany's good service.
F. A. Schaefer favored laying the |
matter over until the regular session |
of the Legislature.
Mr.. Thurston said that the idea was !
to place the proposition before Con- |
gress in December for early considera-
tion in order to make some headWay |
before next year which will be the |
presidential one. He also stated that
Mr.. Spalding had no connection with
the Trwin-Dimond Craig company
which is really not in existence now
because no one could be found to put
up the preliminary expenses for in
cooperating the company.
P. G.. Jones spoke again. His mo-
ton was an endorsement of the action
of the President and his Cabinet who
all approved the measure. He believ-
ed in supporting the Government.
T f. Lansing said that when eX-
elusive franchises were granted in the
past, no opposition was made. He
was confident that no company would
build without that right some induce
ment must be held out. If the matter
is delayed, such delay may be fatal.
He felt that it was for the best interest
of the community to have the cable
in the hands of commercial COM
pany, rather than under the contract
of a foreign government.
Mr.. Hyman spoke in the same
strain; he favored the contract and OPP
posed delay.
G. Bolte said that no cable would be
built unless an exclusive franchise
was granted; this Government had to
grant an exclusive franchise when the
tramways charter was proposed; the
electric light company also demanded
a similar privilege, which was grant
ed. He was in accord with the Gov
Mr.. Waity said that some provision
should be made to allow any cable
that may be built to these
shores, the right TO use of the Spald-
ing line. He thought that a board of
arbitration should be provided for to
a rate that would not be pro-
libItOry,
J. 7. Waterhouse said the cable was
/ necessity aud the exclusive fran
,hi-e must be granted. He had con
idence in Mr., Spalding and the Gov
.rnment. He favored Mr.. Jones' mo-
ion.
Mr.. Swanzy offered an amendment
% the effect that a confirmation of the