The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-01-19
lsToN DAILY POST. THURSDAY MoRNINe JANUARY 1890

| the bill. reviewed the contest over the
Pacific cable. The committee, after long
| Investigation, he said. has decided thai the
strongest company should construct this
much needed cable. The Pacific Cable com
pany was Incorporated under the laws OF
New York with capital stock OF $40, ooo.-
ooo, Tho men who We're behind 1t con-
| trolled tho Mexicon cable and other cable
lines. They had built 1900 miles Of cables.
asked who the directors OF the company
were he replied they were the president
OF the Mexican Cable company, Mr. Scrym-
ser, Edward l.. Bailey, J. Pierpont Morgan,
| j. X Tod and George $. Baldwin, He did
not know the names OF the stockholders.
MIR. Bailey asked IL this company was
not seeking subsidy for the company
| from Japan.
MIR. Bennett replied that II was, but he
denied the statement or Mr. Bailey that
| the subsidies would pay the interest on
enough money to construct the cable. Its
| cost, he said would be Slo,00000o
In reply TO questions Mr., Bennett said
| that neither the postmaster general, the
secretary OF the navy nor the president had
| been consulted about this bill
lit seems 10 be a legislative contract
with few wealthy New York gentlemen"
interrupted Mr. pockery tDem,, MOI, ITO
give them monopoly Of the Pacific cable
business"
Mr., Shafroth Pop, Colo.) asked why
bids were not advertised for and the con
tract given to the lowest bidder,
Mr.. Bennett replied that the committee
| thought best to give The contract TO re-
! sponsibe company and had decided upon
| the Pacific Gable company.
| MIR. Corliss tRcp.. Mhrh) who was n
| member OF the committee that reported
! the hill. opposed II vigorously. He charged
that the subsidy granted by the govern
mcnt In this hill, Sso0o.0o0 in total
| amount, would construct the cable Presi-
dent Scrymscr was now at work trying to
get n subsidy from Japan, The company
was gigantic monopoly, II had been seek
ing subsidies from congress for fifteen
years. He believed in governmcnt cable
One OF the chief clements OF England's
strength, he said, was the fact that sho
pushed her own lines of communication
around the world.
The government had already gone into
the business. Under the direction of tho
war department we were now engaged In
laying 200 miles OF cable In the Philippines
He produced contract which he said WAS
made between the Hawaiian republic July
>, 1898. u month before Hawaii was an
nexed. and President Scrymscr, giving the
Pacific Cable company an absolute monop-
oily of landing cables In that island for
twenty years, Scrymser, he said had
slipped over and obtained this contract
just before sovereignty was transferred.
But President Dole, he said, had insisted
upon a provision 10 tho eject that this
contract should not be binding II the
American state department should within
six months express its dlsapproval OF the
contract. Mr.. Corliss said he had person
ally seen the secretary of state about the
matter and he announced that prior TO
January ,, 1899. Secretary Hay had de-
clared his disapprovhl and the contract
was therefore void. tApplause,)
Speaking OF the necessity OF the cable
communication in time Of war, he spoke
of the fact that Dewey had been Obliged rs
II military act to cut the Manila cable. II
was cut for months
How much do you suppose we will have
10 pay for interrupting cable communica
tom" he asked.
Il dare not tell you, the sum is SO large.
but | Will say that we were paying during
the war $4,000 day in cable tolls"
Mr., Corliss said he would offer q sub
stitute measure for the construction of a
government cable to Hawaii and the Phil
ippines.
Without action the committee rose and
the house adjourned.