The times., 1899-09-11
CABLE Lines TO CUBA
A Lively Contest Between Rival
Telegraph Companies.
Charges of Discrimination in Favor
of the Western Union Preferred by
the PosfnI-War Department RuI-
ings Said to Be Without Precedent
Important Question of Rates.

The controversy now in progress between
| the War Department and the Commercial
Cable Company, better known as the Postal
Telegraph Company. regarding the right
of the latter TO land its cable in Cuba, Is
exciting much comment all over the coun-
try. The facts in the case are most inter-
esting. 1t appears that shortly after peace
was declared between the United States
and Spain the Commercial Cable Company
purchased property in Cuba on which it
proposed to establish a cable station, max
/ ing it the Cuban terminus of its line APP
plication was made to the Secretary Of War
| for the privilege of laying the cable from
this country to Cuba, which was granted.
In return for the privilege the company
pledged itself to ask no assistance from
| the Government. It furthermore bound it.
self to place the cable at the service of the
! Government, allowing it to fix its own
rates, for transmission of official messages
Another clause in the contract provided
/ that the United States at any time it de-
/ sired might take the title to the cable
paying the company the appraised value of
! the line. After the Commercial Cable Com
pany had about completed arrangements
/ for commencing work on its enterprise the
1 Western Union Telegraph Company, which
for years has operated cable line between
the United States and Cuba, entered pro-
test against granting the Commercial Ca
! bic Company the same privilege. The
Western Union claimed that it had a forty
! year exclusive franchise which was grant
ed by the Spanish Government. Mr. Alger,
who was then Secretary of War. imme
diately issued an order commanding Cen
eral Brooke to prevent the Commercial
company from landing its cable in Cuba
Since that time both the Western Union
and Commercial Cable companies have been
engaged in brisk legal controversy. and
! both have presented their claims to Tie
officials having the matter in charge. The
/ Western Union urges that its forty-year
franchise from the Spanish Government is
legal, as no country can pass a law impair
\ ing the validity of contracts. 1t further
4 more alleges that the United States in
taking control of Cuba assumed it's ebli-
4 cations as far as contracts are concerned,
and that the rule has been observed in all
cases SO far. The Commercial Cable Com
pany, in reply TO this claim, make the fol-
lowing argument in a letter to the Secre-
j tary of War.
I'VE proved blythe very terms of the
/ grant itself that 1t was Illegal because it
United States Government had already
/ granted a similar forty-year monopoly
Moreover, the grant is not binding on the
Government, just as the Spanish monopo-
! listic grant Of so cents for the carriage of
/ every head of cattle that is slaughtered in
1 Havana has recently been declared not to
be binding on this Government, although
! that grant has been in existence since 1904
nearly two hundred years"
The Commercial Cable Company also
charges the Western Union with making
/ exorbitant charges in the transmission of
messages to Cuba. In this connection it
says:
THE Western Union Telegraph Company
for over thirty years past has had monop-
| oily OF cable communication between Cuba
and the United States. The rates charged
4 by that company are $3.50 for message
/ of ten words from New York TO Havana
and S. for message of ten words to GER
tain other Cuban points Prior to our ap-
! piication for a permit to lay our proposed
cable, these rates were stiH higher being
/ S4 and $S, respectively. The leading spirit
/ in this monopoly has stated in writing that
it was the most profitable cable ever laid
And no wonder. The distance from New
York 10 New Orleans is 1884 miles, and yet
1 the telegraph rate from New York to New
the $3.50 and IS above mentioned"
In its argument TO the Secretary of War
regarding the legal aspect of the case the
Commercial company says:
Turning now TO the purely legal aspects
OF the matter, We fail TO see where the
Secretary of War has lawful power to pre-
vent us laying this cable. Whatever the
power OF the Secretary of War may be in
time of war, this is time of peace, and
ffa fnNc - .rrIx1
flag floats. there law prevails, and not
arbitrary power.
'If our proposed cable were about to dis
| turb the peace, or create a monopoly or
/ interfere with trade, or obstruct naviga-
! ton, the Government might legally forbid
it, but inasmuch as this cable will destroy
/ the monopoly and will aid trade and will
facilitate commerce, we deny the legality
/ of prohibition by the Government against
4 the cable being laid. In your letter CT the
9th instant you refer to the act of Con-
4 gress which prohibits the Executive De-
partment from making grants in Cuba.
/ But that act does not prohibit a cable
/ which We propose to lay without any grant
whatsoever. That act was passed to limit
/ the power of the Secretary of War, and
not to increase ii.
We have accepted in writing the Post
Road act OF Congress of 1856 By so do
/ ing we are authorized by the terms of
the act to lay our cable under all nayi-
| gable waters OF the United States. The
act controls the United States Govern
ment everywhere. 1t binds the United
/ States Government whenever and wherever
| that Government is in control of naviga-
Bile waters II such control is temporary,
/ this act of Congress applies and continues
so long as the control continues. Waters
temporarily in American control are tenn
porarily waters of the United States. If
/ not whose waters are they, and who is
responsible for them?
! The Western Union advanced no other
argument than the one of an exclusive fran
/ chise from the Spanish Government.
! G. w. Ribble, Washington manager of
/ the Postal Telegraph Company, in speaking
! to a Times reporter yesterday, said that
! his company has not abandoned the project,
/ but will make every effort to carry il TO
successful termination. He believes that
/ the prohibitory order viii be rescinded.
WILL NOT MEET DEWEY.