The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1902-08-15
TERMS UNDER WHICH IT is TO
BE LAID.
Postmaster General Will Fix the Rates
To Be Charged-Authorities Take
Line During War.

OYSTER BAY, New York;, August 8
-Ihe conference this afternoon be-
tween the President and Attorney Gem
eral Knox developed into one of the
most important held at Sagamore Hill.
Several months ago the Pacific Com
merclal Gable Company sought permis-
sion from the executive branch of the
Government to lay a cable running from
San Francisco via Honolulu and Guam
to China, there to connect with the
British cable to the Philippines. The
| proposition of the company was to as
sumo all expense of laying and operat-
ing the cable. For the concessions of
the landings at San Francisco, Honolulu
and Guam the company proposed to
grant to the United States Government
special rates, and in certain conditions
of war practically absolute control of
the cable, The conditions, as presented
by the company to the President, were
naturally such as any corporation might
make. They had been drawn for the
protection of the company's interests.
Mr.. Roosevelt referred the whole sub
ject to Attorney-General Knox, with a
request that he go carefully over the
proposed conditions. eliminating such
as he might regard as impraCtiCable
and adding such others as he might
| believe would observe the interests of
I the Government. The results of his
| Investigations and conclusions Knox
presented to Roosevelt i'm verbal form,
the papers in the matter previously
having been laid before the President.
President Roosevelt approved of the
amended conditions, and so far as the
executive branch of the Government is
concerned, the company now may pro-
ceed with the work of laying the cable.
1t is regarded as essential, however,
that the conditions be ratified by act of
Congress, as some doubt exists of the
right of the executive branch of the
Government alone to grant such priVi-
leges as are included in the Pacific
Commercial Gable COmpanys PROPOSE
tion.
The conditions as approved by Mr..
Roosevelt are regarded as particularly
favorable to the Government, and it is
believed that, with the cordial indorse-
ment of the President, which he will
give the proposition in his message
next December, Congress will ratify
| the conditions without serious delay,
Attorney General Knox added sew
eral important conditions to those pro-
posed by the company, including these:
That the United States Government
at all times shall have priority of SER
| vice.
| That the Government, through the
| Postmaster General, as is customary
to fix the rates to be charged by the
company.
That in time of war the Government
shall have the right absolutely to con-
! troll the cable.
That in order to protect not only the
! Government, but also individual pri-
vate customers of the company, the
! Pacific Commercial Gable Company is
required to lay a distinct line of cable
from China to Manila, so that it will
not be necessary to depend upon the
British company which now controls
! the only cable from Hongkong to Ma
! nila.
And finally, that the United States,
at any time after the completion of the
line, may purchase the line at an ap-
praised valuation to be fixed by arbi-
traitors selected in the usual manner
! by the two parties to the transaction.
| Attorney General Knox is inclined to
| the opinion that the company will inn
mediately proceed to construct it's line.
| Considerable time will be required for
the preliminary arrangements before
| the actual laying of the cable begins,
but it is regarded now as certain that
an American owned and operated ca
| Bile line to the Orient is in sight.