The times., 1898-12-31
THE HAWAIIAN CABLE,
The scrymser Concession to he Dis
aDurOyed.

The Scrymser COncession to he Dis
approved.
The most important action taken at the
Cabinet meeting yesterday was the express
sion Of practically unanimous feeling that
ought to be disapproved. When the sub
ject was dropped it was with the under
standing that Secretary Hay would formal
ly disapprove it. Members of the Cabinet
refused to discuss the subject yesterday
afternoon, and 1t is believed that the Sec
retary will take action today after the
stock market is closed, so as to allow it
two full days to quiet down and prevent
speculation in the cable company's shares.
There are two corporations striving for
permission to construct cable between
San Francisco, Guam, Wake Island and the
Philippines. One Is the Pacific Cable Com
pany of New York, the other the Pacific
Cable Company of New Jersey. The first
owns the Scrymser concession. which Is to
be disapproved. Its capital stock Is Si0,
100000. and its chief stockholders are ].
Pierpont Morgan, J. S. Bowdoin, j. Ken
nedy Tod, ]. A. Scrymser, II. S. Leroy and
Charles D. Wetmore.
Spalding, who lives in Hawaii and has
fortune Of S., 100000. Associated with him
are A. S. Hewitt, d. o. Mills. Gen. G. NJ.
Dodge, Gen. Fred Grant, Gen. Wager
Swayne, j. ]. HILL J. H. Browning and NJ.
W. Tyler.
Last Spring Mr.. Scrymser. seeing that
annexation was inevitable, went to Hawaii
and procured from the Legislature there
concession granting him exclusive rights
fCr tyrnn da1 hat a
tary of State of the United States did not
disapprove within six months from the date
of the concession. These six months ex
pire on January 2.
| Each company has bill pending In Con-
gress. The Scrymser Company has one in
the House favorably reported by the Com
merce Committee OF that body, while the
| Spalding Company had one favorably re-
| ported to the Senate in the last Congress.
and has duplicate under consideration in
] the Foreign Relations Committee of this
one The House bill grants an annual sub
sidy of s1Oo 900. 1t is opposed by TWO mem-
bers of the committee in minority report,
which claims that the subsidy is excessive
and that the monopoly is very objection
/ able. The bill will be called up in the
House on January is by Representative
Bennett of New York.
At the Cabinet meeting yesterday Sec
retary Hay stated to his colleagues that
| the Hawaiian Commission had some time
! before sent him formal letter, declaring
that in their opinion the control of the
| Hawaiian cable should remain in the
| hands of the United States, even if not
| built by ii, as the commission would
| recommend. and that no private company
| should have a monopoly in the matter
| This, of course was only another way Of
| advising the Secretary to disapprove the
| Scrymser concession. On the other hand
| it was urged that the United States would
| still possess the right TO control the cable
| even under the concession, because it
would have to grant rights of landing on
| our own shores, though it was admitted
| that IL would have no control II the
| Scrymser Company wished to lay lines
| from Japan to Vancouver by way of Ha-
wall Postmaster General Smith suggest
| ed that it would do not harm to disap-
prove the concession until Congress had
| reached some decision in regard to it. He
| thought that it was not the custom of
| the United States to gran. monopoly priv
ileges to anyone. and it would always be
in the power Of Congress 10 grant practi-
cally equivalent rights &c the company
at any time. Practically the entire Cab
| met conceded in this view.
For some time there has been some
doubt whether all concessions in future
from the Hawaiian government did not
lapse by the Mere fact of annexation to
the United States. just as all the treaties
| of Hawaii became null and void by the
act. But IL has been decided that this is
not the case.
The effect OF the disapproval of the con-
cession on the company will be great.
Instead OF being able TO reuse to per-
init the cable to be built except Oh its
own terms. the whole matter will be
thrown open to competition and the United
States Government can itself build the ca
Bile and manage it if it see fit, which it
could not do if Secretary Hay did not
take the contemplated action.
Probably the straw that turned the scale
against the company was the letter from
the Hawaiian Commission practically ad-
yising that ii be disapproyed This was
sent to Secretary Hay shortly after the
return of the commission from Hawaii.
No other business OF general importance
was transacted by the Cabinet, although
that body remained in session for nearly
three hours, making yesterdays the long
est meeting since war times. Its duration
excited much interest outside the Cabinet
room, because of the belief that Cuban
matters were under discussion. This was
not the case. however except as regarded
the tariff, internal revenue and postofiice
affairs of the island.
The situation in Havana was only incl
dentally referred to, no one even suggest
ing any action 10 overrule General Brooke's
orders in regard 10 the New Year celsbra-
ton there. After the meeting one membsI
said 6hat the commanding generals had
full authority to act under all circum-
stances, and that no one in Washington
would presume to be wiser than they mol
to manage things hundreds of miles away
1t was believed that General Brooke
would SO enforce his order as to satisfy al
the better classes of Cubans, when they
had had time to think, of its necessity ant
justice. but in any case he will not be in
terfered with.
Similar non-a action was decided upon il
regard TO the Philippines, the Administra
tion putting full trust in General Otis A
cable from the latter was laid before the
meeting, but 1t only stated that he was
still awaiting Information as to the situa-
tion in Iloilo.
Nearly all the discussion was over tbs
internal and revenue affairs of Cuba TIL.
need of secretary of colonies to managt
the affairs of the four Islands. or sets o.
islands, now under the American flag i:
strongly felt. and Congress may be asked
to provide such an office. The adyisability
of this was debated at length but no de-
cision was reached.
The civil service order was also brief,
discussed, but no action was taken upor
it. 1t will probably be a long time befor,
any is taken.
Former Congressman Guenther, of Wis
consin, who has been appointed consul a
Frankfort on the Main. Germany, called a
the White House yesterday to take leav
before starting for his post. He will sal
on January on the steamship Kaiser vii
helm der Crosse, which he says that h