The Hawaiian gazette., 1896-11-17

and Australia
tFrom Mondays Daily0
The matter Of the cable franchise,
which has been laid before the Ex-
ecutive several times by Hon. John W.
Foster during the past week. was
brought 70 4 focus on Saturday, when
il vas discussed in the President :
room By 3 number OF influential citi-
Zens
Those who responded to the call
we're l. A Thurston. B. F. DiIling
ham. T. II. Lansing. DR.. c. B. Wood
Hon. John W Foster, F. A. Schaefer,
ator McCandless, ]. A Kennedy, Cecil
Brown. c. BOIte, F. A SwanZy, Chief
Justice Judd, ". C. Irwin. Alexander
Young. Senator H. W. Schmidt, Sen
ator W. H Rice, Mr.. Kane. C. L
Wight. John Phillips, Mark Robin
son. C. NJ Cooke. Paul Isenberg. H.
Hackfeld. Senator Henry Waterhouse
General HarJwell, and a number OF
other business and professional men
were invited. but were not present
President Dole and Ministers Smith
and Damon represented the Executive.
The meeting was called TO order by
President Dole. who stated that new
arrangement had been proposed by
Col. Spalding and his colleagues, and
before taking definite action the Gov
eminent had deemed it advisable 10
consult with the business men of the
city At the Presidents suggestion,
Attorney General Smith read the out
line Of the new contract proposed by
the Pacific Gable Company, which or
ganiZation includes such prominent
and wealthy men as D. o. Mills, ex-
Mayor Hewitt of New York. and Mr.
Hall OF the Northern Pacific Railway.
This company propose that q con-
tract be made with them by which
they are 70 have two years after the
signing OF the contract in which 10
obtain concessions from the japanese
Government and from the Govern
ments OF the Australian Colonies, rela-
tive TO laying cables from Hawaii TO
japan and from Hawaii to Australia.
The company offers 10 purchase S375,-
00o OF the new 4 per cent Government
hOnds-presumably at par-and 10 for
felt S125, 600 in case the inter-island ca
bic is not laid within the year If the
desired concessions from either or
both Japan and Australia are obtained
within the TWO years, the company
will forfeit S125. 600 in each case if IL
fails 10 construct the cable within three
years thereafter. On these lines they
ask a 20-year exclusive franchise. The
principal points were elaborated upon
as Minister Smith read: then followed
q few questions answered by Mr.. Fos-
ter and Mr.. Smith.
Mr.. Foster stated that Col Spalding
had. through his arduous work in Con-
gress. done z great deal in advancing
the prospects of early success, and he
promised 10 transfer his present con-
cession 10 the Pacific Cable Company.
Mr.. Foster. further stated that they
hoped 10 be able TO obtain from the
japanese Government a guarantee Of
$3.50 600 which supplemented BY the
SO 900 OF Hawaii would be $500 600
TO be paid on the completion Of the
line from San Francisco TO Japan. via
Honolulu They also hope 10 get $780,
ueo from the Australian Colonies 10 as
sisr that line Mr. Foster suggested
that the men undertaking this busi-
ness were handling no small affair. as
the line TO Japan would cost not less
than ST 500 900. and it would be un-
reasonable 70 expect men TO assume
the task with some show OF returns TO
guarantee such great outlay OF capi-
tai No proposition had been made
with regard to the extension of the
present Spalding contract, because it
was hoped something could be done in
the next six months.
Mr.. ThurstOn then presented a
strong argument for the scheme. lay
ing great stress on the advantage
gained to Hawaii by the purchase of
the Government bonds, thereby giving
a start to the bond scheme and giving
Hawaiian bonds an immediate place
and an established credit in the mar
kets Of the world The Government
could web afford TO give something for
that alone; capitalists would not make
the immense outlay without an ex-
elusive franchise He also called al
tenri0n To the cable rates. and to the
fact that the contract would fx the
maximum charge for rates not in ex-
cess of ST. a word TO Australia and
Japan and other eumpanies would
guarantee TO give them the same rates
As charged On their own lines to other
parties The rates 10 San Francisco
would not be over 40 per cent Of this
ng1re. and the press rates not over
one-quarteT- The opposition from the
Atlantic cable companies was tremen-
dous. and il would be impossible TO get
men to 60 ahead with the cable with