Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-01-19
NO CONCLUSION REACHED
Proposed Subsidy for Gable to the
Hawaiian Islands.
Spirited Debate in the House of Rep
rcsentatives Mr.. BENNETT
Champions the Measure

In the House of Representatives yester-
day afternoon, under the special rule giving
the day to the committee on interstate and
foreign commerce, tnes bill to grant the Pa
cific Gable Company d subsidy of $780, 900 a
year for twenty years for the construction
and operation of a cable to Honolulu was
called up and very spirited debate which
consumed the remainder of the day, fol-
lowed. The opposition was headed by Mr.
Corlss (Mich.), who advocated the con-
struction of a government cable. No con-
clusion was reached at the hour of adjourn
ment, and as the special order under which
/ the House was operating expired with the
adjournment, and as objection was made
to fixing another day for its consideration
1t goes over indefinitely until the commits e
can get another day or until special order
is adopted.
Mr., Bennett On. V, in support of the bill,
reviewed the contest over the Pacific cable.
The committee, after long investigation, he
said, had decided that the strongest COM
pany should construct this much needed
cable. The Pacific Gable Company was in
corporated under the laws of New York
with a capital stock of $4,000, 900 The
| men who were behind it controlled the Mex
lean cable and other cable lines. They had
built 14,000 miles of cable. Asked who the
directors of the company were. he replied
they were the president of the Mexican Ca
BILE Company, Mr.. Scrymser; Edw. L. Bail
ey, ]. Pierpont Morgan. J. K. Todd and
SeO .. baldwin,. he UlQ not Know the
names of the stockholders.
Mr.. Bailey asked if this company was not
seeking a subsidy for the company from
Japan.
Mr. Bennett replied that it was, but he de-
MED the statement of Mr.. Bailey that the
subsidies would pay the interest on enough
money to construct the cable Its cost, he
said, would be s10.000,000.
In reply to questions Mr.. Bennett said that
neither the Postmaster General, the Secre-
tary of the Treasury. the President nor the
Secretary of the Navy had been consulted
about this bill.
at seems to be a Legislative contract with
q few wealthy New York gentlemen in
terrupted Mr.. Dockery Mo). ito give them
monopoly of the Pacific cable business"
Mr.. Bennett gave notice that at the prop
er time he intended to offer amendments to
provide that the cable should touch the La
drones and the Philippine Islands.
Mr.. Lewis (Wash) asked if it was true
that this company had contracted with the
Great Northern Extension Company to
build the cable and to have a controlling
interest in it condition this company
pass this bill.
NJ NJ. Rep = replied that it was not.
Gen. Swayne is responsible for that
statement" said Mr.. Lewis. .'
Gen. Swayne has opposed this company"
replied Mr.. Bennett. "Hc is more preiu-
diced against this company that I am
against any company he is interested in. |
want to see the cable built and operated by
an American company"
Mr. Bennett said that the cost of the ca
BILE to Honolulu would be about 81, 100000
the annua, cost of maintenance, so 600 but
provision must be made out of the surplus
earnings for repairs and renewals. the av-
erage life of cable being about twenty
years. The cost beyond Honolulu would be
about 81 900 d mile for construction.
Mr.. Shafroth CCoID asked why bids were
not advertised for and the contract given
to the lowest bidder.
Mr.. Bennett replied that the committee
thought best to give the contract to
sponsible company, and had decided upon
the Pacific Gable Company.
Representative Hepburn, In support of the
bill, said the theory upon which it
framed was to enlist American capital in
this cable enterprise. All the money the
government was now expanding went to for
eign companies. To and from Manila
were now paying 81 s.. word to one COM
pany and I,1O to another.
Representative Shafroth wanted to know
what objection there would be to allowing
competition.
Representative Hepburn said there was no
other American company which would ac-
cept the terms of this bill. He did not
think the government itself should embark
on this enterprise. There only one
project in which he believed there should be
government ownership - the Nicaragua
canal. That was gigantic enterprise, be-
yond the power of private enterprise.
Representative Corlfss Opposed
Representative Corliss of Michigan, who
ported the bill. opposed it vigorously. He
charged that the subsidy granted by the
government in this bill. 50 000,O0O in total
amount, would construct the cable. Presi-
dent Scrymser was now at work trying to
get Il subsidy from Japan. The company
was gigantic monopoly. 1t had been seek
ing subsidies from Congress for fifteen
years. He believed in government cable
One of the chief elements of England 5
strength, he said, was the fact that she
pushed her own lines of communication
around the world
The government had already gone into
the business. Under the direction of the
war Department we were now engaged in
laying 200 miles of cable in the Philippines
lie produced contract, which, he said.
was made between the Hawaiian republic
July =, 1888, month before Hawaii was
annexed, and President Scrymser giving the
PACING Gable Company an absolute monop
Oily OF landing cables in that island for
twenty years Scrymser. he said, had Slip
ped over and obtained this contract just be-
fore sovereignty was transferred. But
President Dole, he said had insisted upon
"A provision to the effect that this contract
should not be binding If the American State
Department should within six months ex-
press its disapproval of the contract. Mr..
Corl1ss said he had personally seen the
Secretary of State about the matter. and he
announced that prior to January =, 1899
Secretary Hay had declared his disapproval
and the contract was therefore void. CAP
plause.)
Speaking of the necessity of cable COM
munication in time of war he spoke of the
TACT that Dewey had been obliged, as a
military act, to cut the Manila cable. 1t
was cut for months. How much do YOU
suppose we will have to pay for interrupt
ing cable communica tian?'' ne asked. II
dare not tell you. the sum is so large but
L will say that we were paying during the
war 5000 day in cable tolls" Mr. Cor
llss said he would Offer "a substitute meas
ure for the construction of government
cable to Hawaii and the Philippines.
ACTED AS SPIES FOR SPAIN