The San Francisco call., 1896-11-25
SPALD|NG'S CABLE
SCHEME PRESENTED
Dole Confers With Honolulu
Business Men on the
Project.
An Extension of Time That the
Regime Is Not Inclined
to Grant.
Liberal Subsidies Asked by tine Pro.
moters of the Project and Some
Inducements offered.

HONOLULU, Hawaii, Nov. 1S.-A num-
Der of preventative citizens were called
to meet the Executive in the Presidents
room on The morning OF the 14th, in order
to obtain an expression of opinion upon
the expediency of enlarging and extend
ing the terms of the cable franchise which
was granted last year TO Colonel u. ).
Spalding, and by him transferred to the
Pacific Cable Company OF New Jersey, OF
which Spalding is president, and which
organization embraces such prominent
capitalists as D. o. Mills, Abram
Hewitt and Mr.. Hall of the Northern Pa
cifc Railway.
The meeting was called to order by
President Dole, who stated that a new
arrangement had been proposed by Colonel
Spalding and his colleagues, and before
taking definite action, the Government
had deemed it advisable to consult with
the business men of the city. There were
present most of the members of the Coun-
Gil of State, Senators Brown. Schmidt,
Lansing, McCandless, Rice and Water
house, also Messrs. Irwin, Cooke, -Ather-
ton, Swanzy, Schaefer, the Chief Justice,
Alex Young, Professor W. d. Alexander,
B. f. Dillingham;, DR.. c. B. Wood and
others.
Attorney General Smith read the out
line of the new contract proposed by the
Pacific Gable Company. Mr.. Spalding's
present exclusive franchise for laying
cable from North America to these
islands does not expire until May next
FOR the completion of the financial ar
rangements. He asks Tor no extension of
that time But he wants new contract
for an exclusive privilege To land cables il
Hawaii, connecting with Japan and Aus
traIia. He wants an extension of two
years in which to obtain a subsidy of $780,
coo year each from the Government of
Japan and from the Government of Aus
tralia. He also wants three years addi-
tional time in which 10 lay the proposed
cables.
AS an inducement for granting these
franchises Colonel Spalding will take up
S375, 900 of Hawaiian Government bonds at
per cent of the proposed new issue for
refunding the Government debt. He will
make one-third of that amount guar
antee for each of three things-a cable to
Japan, cable TO Australia and an inter-
island cable-in return for an exclusive
franchise of twenty years for operating
.
inter-island cable within one year. He
asks no Subsidy from Hawaii, but expects
exemption from taxation, navigation and
landing fees, etc., as IN the present fran
chise.
John w. Foster spoke as the representa-
tive of the Pacific Cable Company, in
whose interest he was visiting Honolulu.
Colonel Spalding, through his arduous
work in Congress, had done great deal
in advancing the prospect of early succe ss.
The line to Japan would cost not less than
81, 500, 900, and it would be unreasonable
10 expect men to assume the task without
some show of returns TO guarantee such
a great outlay OF capital.
Z. a. Thurston, as attorney for Spald-
ing, then argued for the scheme, laying
stress on the advantage gained to Hawaii
by the purchase OF Govern ment bonds,
thereby giving start TO the bond scheme.
Again, capitalists would not make the i'm
mense outlay without an exclusive fran
chise. He called attention to the fact that
the contract would fix the maximum
charge for rates at 81 word to Australia
and Japan. The rates to San francisco
would not be over 40 per cent OF that fig-
ure.
After expressing their views and answer
ing questions Messrs. Foster and Thurs
ton withdrew.
general discussion then followed, par
ticipated in by Messrs. Lansing Dlling-
ham, Wood, Schaefer, Young Alexander,
McCandless, Swanzy, Irwin, PhilIips
Isen berg, judd, Waterhouse and Hack
field. The opinions of most OF the speak
ers were strongly adverse to granting the
exclusive franchise asked for.
Mr.. Swanzy pointed out the immense
increase in the commerce of the Pacific
which was close a hand The necessities
of this in crease by development of Japan
and Russia could hardly now be measured.
The geographical position of Hawaii is of
the most commanding nature. 1t would
be great national and commercial error
for Hawaii 10 tie Itself up 10 one concern
by an exclusive franchise.
w. G. Irwin felt sure that the islands
would get the cable hen the demands of
business required it. The time would
soon come when Hawaii would get cables
without making concessions and without
expense to the Government. He also
though it improbable that Japan would
grant large powers TO foreign company.
The Attorney General and Dr. Wood.
wis had lately visited Japan on official
business, both spoke of having learned
from an authoritative source while in
Japan that the Japanese Government, in
its present mood and am bilious spirit
might itself very soon lay cable. AT any
rate it would notlook with favor or grant
concessions to foreign corporation. 1t
must be a Japanese company with Japan
ese capital
Professor Alexander thought there were
excellent reasons for hoping to gain ia
pans cooperation in laying cable That
country was am bilious for commercial
distinction and was growing very rich.
The Chief Justice thoug ht no concession
would have any validity without the con-
sent of the Legislature.
After session of two hours President
Dole thanked the gentlemen for their at
tendance and intimated that he might
again call them together.
Mr.. Foster was notified yesterday that
the Government was unable to comply
with Colonel Spalaing' request, but hoped
for his success In building the line orisi-
nally proposed 10 Hawaii.
News OF McKinley's election came last
night by the Peking. General satisfaction
was expressed, Republican success being
more likely to be favorable to Hawaii.
Mr.. Foster sailed for home to-day by
the City of Peking.
The Planters Association met yester-
day. They report a crop OF DDS, 900 tons CT
sugar. The increase of Aslatics during
the year has been AGO.