New-York tribune., 1900-01-08
PACIFIC CABLE QUESTIONS.
AN ARGUMENT IN FAVOR OF PRIVATE
OWNERSHIP.
REASONS ADVANCED BY EDMUND L. BAYLIEs-
HEARING ON THE SUBJECT IN WASH
INGTON on TUESDAY


INGToN ON TUESDAY
The Committee on Interstate and Foreign Com
merce Of the House Of Representatives will give
hearing at Washington Tuesday on the subject
of a Pacific cable. Edmund L. Baylies. vice-presi-
dent Of the Pacific Cable Company Of New-York
said TO reporter yesterday IL relation this
question:
present session of Congress looking to the build
ing OF a transpacihc cable These bills divide
that introduced by Nj. Corss in the House Oh. r.
provides for the estabIishment of a Pacific Cable
commission, TO consist of five members which
when built il is remain under the control Of
provides: the acfs 9Inropra l1S so o % @
and authorize the Pacific Gable Commission TO
after appropriated; Another bill looking toward
bne - tb9 Of IN ne sable by the government
provides for the construction of cable under
propriates the sum Of $iioo66 for the the WORK ahd 4
propioes that when the cable is built the operation
ano control thereof shall be transferred 10 the
tion of the cable by private enterprise Without risk
or or expense TO The Geyernment These are the bills
$3.50 and by Senator Lodge in the Senate Is I4795
making of contract by the United States Govern
ment with private corporation, to be ascertained
months which corporation under proper guarantees
cable touching al Honolulu GuaTn and Naniia
with a branch from Guam TO Japan. the said act
for the establishment Of this iine2i not over Ser
100000 a year for twenty yearsIis during such
period carry Government messages free over the
said system, and also to Hong Kong and Shanghai
twenty years, Government messages shall forever
tn & nb he carried s at & &one1ha the rate charged
establishment Of a duplicate line of cable between
duplicate service by means of trafic agreements
With existing lines. having the same effect as
ment-i e, not 10 exceed 100000 per year-is be
only for repairs a9 renewals NO part to to be be used
foT gGenas f M and annual sworn tel Of the
Government The rates are 20 be s. cents to Homo;
Shanghai. e.. less than half the existing rates.
CLEAR ISSUE.
The question which Congress must decide is
which OF these two plans TO adopt-a Government
United States Government or to obtain the same
or better service. from private corporation with
Assuming that the service. whether by Govern
good (Which is net he faeq the rSf question viii
enumerated among the disadvantages of Govern
FirstEThe increased cost of making and laying
such a cable over the amount for which it could
ey s of ntenanca of
Third-The cos, of duplicate cable: which the
Fourth-In order to land its cable on the Philip
pines the Government would be obliged to buy
%oud g n mea g an e5 expense ene % Of at least and
would not include any rights to operate a cable be-
FIfth-The United States Government cable
would not be permitted to land on the coast of
which could be controlled by the local govern
rnent, would be s permitted TO land
Sixth-It is probable that Government cable
could not give low a rate to China and Japan
as the proposed private cable could, i e. 81 per
seTenth-For the United States to go into the bust
ness Of laying deep sea ocean cables. would YOU Pe q
expert knowledge and experience are of the high
est Importance. and where the Government mas at
tzed to undertake the maintaining and handling OF
such line even if established
FOREIGN PRECEDENTs,
Considering the experience of other foreign gov
ernments we see that no foreign government has
ever owned anything more than short ends of
suits are supposed to fow from private owner
Sxed sum and takes no risk Both England and
france, the only countries which have assisted
purposes. have preferred to have the work done
n6 the aI k b taca efed O Of s in the Gables laid
to distant British possessions FRANCE i9 also ms ms
marine cables rather than undertake the work at
risk fao and exPsns sr as o Is M
and in the case Of the last transatlantc caoe
Toward the close Of the last Congress. when
President Mckinley had sent in special message az
the matter vigorously debated in both Senate
IN favor of a goveTnment-owned cable. but the
House, rather than enter upon such scheme OF
legislation by decisive of 1o2 to a. There Is
subiect being different in the present Congress
from what II was in the last
borhood Of $400OOO is reasonable amount for e the
Government to pay ii may be stated tn1 1ouI ySs
States departments to the Far East were @ IN b fee
cable dispatches were from the War DeparJen,
shown in MIR Roots report. is spending for cable
esssses al the rate of 1925 year to the Philip
-9gnes onlv while there is, of course large amount
of cabling from the Navy Denartnent ana from oe
20 thai II seems reasonable to assume that at the
present time the Government is spendlng az ieSst
for ling fO he
having American cable. +. 49,.
There has been recently large increase in the
cost Of cable material /. e., gutta percha, hemp,
copper wire and wire. At the present time TO
establish duplicate eaoIe system 70 Aalila anna ft
fsoyernuaent and the annual expense of main
fenance allowing per cent interest cost, would
be over 81 800 OJO The Government would assume all
the risks of repairs, and il Is well known tnat a
single repair in the case OF break IN one OF tLe
afjanttc cables cost $4,000 while If a contract is
made with a private corporation the Government
will receive all that IL requires in the way OF cabIe
service will financial responsibility and
the service.
Mr. Bayles also gave to the reporter the follow
ing memorandum OF the cost and maintenance Of
a duplicate Pacific cable system:
COST
szs5 knots cable including per S11 5SS 03o
cable ships $500 each)............... 100000
sets cable gear. @@So'090 @-,0'0SS
Duplex Instruments, battery, etc......... 5000 %S0000
TTsyellng expenses fseieht etc.......... 10000
Total ....................... .Sl8, ,42e 80
Contingent working capital 259 090 o9o
Duplicate cable II'oe''O""
Total cost t..........................S2 SIS, $50
ANNUAL EXPENSE.
Interest at per cent on SO 80 $40 S59a 69a 9a
>SaratI-e sn5 frayeine expenses ..... IT5.O0O
Repair and renewal fund nd-...--.'..-..-..- 100000