The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-01-24
FAVORS
PRIVATE
CABLES
Argues lAg ainst
Governmental
Action.
WHY MACKAY IS
PLANNING WELL
Great Saving Through His Ar
nouncenfent That Commercial
Co. Will Build Lines.
n HE following -"should the

II HE following address-"should the
Government Interfere With the
= Project of the Commercial Pa
cific Gable Company" was made
by John Foord, Secretary of the
American Asiatic Association before
the House Committee on Interstate
Commerce on Jan. 10 and-11. 1t comes
ent:
The question of laying a trans-Paciic
cable comes before this Congress In
form totally different from that In which
1t was presented to the last one. Then.
the alternative was between laying the
cable at the public expense, or granting
subsidy to a private corporation to do
so; now, the question presented to the
Congress and people OF the United States
IS whether the government shall lay
competing cable between California and
the Philippines, while another IS already
In process OF construction by a private
CORPORATION, at its own risk and cost.
1t would obviously require some very
strong arguments to justify the Inter-
ference OF the government In a work al
ready being done by private enterprise.
and no conceivable argument could JUS
tify the granting OF a subsidy TO one
<.orporatfou 10 do a piece OF work which
another has undertaken to perform with
out any subsidy or guarantee Whatever.
No argument can be adduced In favor
of government construction or racine
cable which would not be equally valid
n. n prea for government construction or
a land line between Washington and San
Francisco. Under the act of July "a,
1866. any telegraph company organized
under the laws of any State mas the
right to construct, maintain or operate
lines of telegraph over. under and across
the navigable waters or the United
States after filing It's written acceptance
OF certain conditions prescribed by the
act Among these is the condition that
at any time the government may elect,
II shall have the right to purchase the
telegraph line at an appraised value ana
the further condition that government
messages shall have priority over oIner %
messages, and be TRANSMITTED at rates
10 be fixed by the Postmaster General
The Commercial Pacific Cable Company
has already agreed to these conditlons
nv its written and formal acceptance OF
,be act of 1866 Plainly. therefore, ca
81 constructed and operated at the pub
I,c EXPENSE is not required either for the
,rotectfou of the government in case or
an emergency or for securing 1t against
the imposition of eXoroitant rates
In the absence OF any argument on the
score of public necessity. Ii Is difficult
TO see on what grounds the intervention
OF the government in SUCH Work couid
he justified on the other hand, there
n n
nIOht be urged against such interVen-
ZION Some of these were cited by the
House Committee on Interstate and For
eirr Commerce in its report TO the house
On AnrtI %. 1900. The Committee sum-
ne, iIp the disadvantages of a govern
.--e1+ cabla as follows: Il. The heavy
cost of nstruction-S15. OOO,vp. Inc
e,nuaI expense of operation. estimated
at $4,000, against PIoOapis
Incone of $4,000. 3. The inability OF
80 Iruited States government to land
.,d operate n government owned caole
.Tfber in Japan or China L. Ihe cohse-
,usnt limitation of the income OF the
shis to traffic between the United
sta+ss and the Philippine and Hawaiian
Isiands 5 The probability that three
fourths of those benefited oy the large
a,n,,aI expenditure or puoEc money
which the maintenance or soNethliielI
- incidentally interested in the de-
,,aIonnent of the commerce OF the Unit
ed States. S,;u onerative
against a government cable ana the au
,-,ntapes of a cable owned ana operateu
~, o. American company are even more
ar6ro,.nced since the Comnerciai fa-
eisc (,abie Company has, at its own risk'
,,rdertaken the work 10 eucoui dSe 'Ie
.s-'.- - which the committee was ready
uoit, W ~ /, subsidy of $4,000 year The
Sn,ft.ae was then convinced that the
,,oI-aruu1ent would secure uhoer ~, ~
sact yritr, a private company al Hnuch
ia Ia expense and without risk all posi-,
bic adyantages Of Pheifg ne TniteS HaSie states a
that ,ns sari,e much greater benefits from
wouio ue I,id than could be obtained
caoae government cable The company
has % prescribed the low Tate Of dGllfs rate
a "oro - r.,nortiou TO the distance traV-
arsed than is now cnaFseo tor ,;,.aI 60
erseu e. .-, ssapes-as the most hoeral con
@ eesson which could be desired sse Far ny Ess,
transactihs has been guaranteed all
the gtases which 1T could receive
the advan.asSa under its own auspices,