The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1901-07-17
Menepoliss in Our Dependencies.
Nice Point of Law for Attorney
General TO Decide Relative to
Exclusive Franchises.

Washington. July 9.--Since Attor-
ney General Griggs has left the Cabi-
net, the Republicans may well feel that
It is fortunate that the clause Of the
Constitution which says that no State
shall pass any Jaw invaidating con-
tracts did not extend a similar prohi-
bition to the Federal government. AS
long as Griggs was in office, ne could
be depended upon to render an opinion
in which he would get around any fine
point of the law that the Adminlstra-
ton might wish. Now, however, the
United States is up against a PROPOSE
ton of great Importance where it must
either invalidate contracts, lnJure It's
own interests materially, or else
dodge. Whether Attorney General
Knox is as good dodger as Mr..
Griggs remains to be seen.
The question at issue is the petition
of the Western Union Telegraph Com
pany to Secretary Root to prohibit the
Government telegraph lines in Cuba
from transmitting the messages sent
to that island by the Postal Telegrph
Company over the wires Of the. French
cable from Cape Raytien.
The controversy is due to the Pos
tails efforts TO lay direct cable to
Cuba. SO as to enter into competition
on even terms with the Western Union
for Cuban business. For this purpose
it organized a subsidiary corporation
the Commercial Cable Company, OF
Cuba, February 15, 1899, ordered
cable made, and made preparationsato
land the Cuban end of the cable on prl-
vate property it had purchased near
Havana.
Soon afterwards further work on the
new cable was stopped by an order
issued By Secretary Alger to the Uni
ted States troops occupying Cuba, d.
recting them TO prevent any new cable
from being landed on the island. This
order was isseud at the request OF the
Western Union Company, which con-
tended that to grant the right to lay
new cable would be in violation of the
Foraker act forbidding United States
officials to grant any franchises in
Cuba: and that the International
Ocean Telegraph Company, managed by
the Western Union. held the exclu-
sive right and privilege to land in
Cuba and operate cable between
Cuba and the United States for 40
years under a royal decree of Spain in
1866. Secretary Alger issued the order
as matter Of general policy and not
a final decree. Now the Western Union
has forced the fighting by seeking to
shut out the Postal Company from its
indirect access also. The main point
at issue is, of course, the validity of
the franchise from Spain: indirectly,
this calls into question other franchises
held in the Philippines. If, in the
case of the Western Union, the War De-
partment holds that the monopoly
granted by Spain survives the Spanish
sovereignty in Cuba, the acceptance
of this as principle may block the
way of American enterprise in the
DEVELOPMENT of the Philippines in
fields where exclusive franchises have
been granted for long terms by Spain.
Under q this practice vanquished
nation might deprive the victor of the
valuable spoils of conquest by granting
perpetual franchises to its own sub
jects or those of friendly nation for
all commercial. TRANSPORTATION, tele-
graph, timber, mining and other priv
ileges in the ceded territory.
The question raised by the Western
Union, therefore, presents a conflict OF
interest and lack of harmony between
what may be policy and what is es-.
tablished practice. Mr.. Griggs had
no difficulty in settling the canteen
question. the slaughter house monop-
oily in Havana and two important
cases that had come up in the Phil
ipplnes. In those islands British
company holds franchise from Spain
for the exclusive privilege Of telegraph
service. This company questioned the
right of the United States to estab
lish lines Of military telegraph in the
Philippines, and, lines having been
established as military necessity su-
perior to all civil franchises, the
company still contends that the Gov
ernment wires must be restricted to
military use and that their use for
commercial purposes is an infringe
ment of the rights Of the company.
Analogous claims of exclusive franchise
privileges are made by the Manila and
Daeupan railroad in the Philippines,
which had from Spain a guarantee
equivalent to a subsidy.
In both cases. the Attorney General
rendered an opinion that the road had
no legal claim against the United
States. though it might possibly have
a claim in equity against the revenues
of the islands. Mr.. Grigg reached
this decision by some hair splitting
arguments too long to rehearse
Whether Mr.. Knox will do as well-or
as badlv-remains to be seen.