Evening star., 1902-02-17

construction and the best type of cable in
existence capable of transmitting In pay
ing code words of eight letters eacn, en- al az
lowing 30 per cent for waste, 11,SoO.cOo
words per annum.
THE cost Of maintenance. repair and
Operation per annum has been carefully eS-
timated and with the government construc,
ton, not allowing for interest on capltai
invested amounts to $o2o,oOo.
The Minority's Views.
The views of the minority of the House
committee on Interstate and foreign COM
merce on the Corless Pacific cable bill are
short and to the point. After stating that
in their opinion the bill should not pass, IT
SAYS:
1--WE dissent from the majority report.
In our Judgment the government should not
undertake to construct cable to the Ha-
waiian Islands and the Philippines. A prl-
yate corporation, the Commercial racine
Company, has given assurance that con
tract has been let by 1t for the manulac-
ture and laying of cable from San fran
cisco to the Hawaiian Islands, and that
that cable will be in operation by Novem-
ber / of this year. That company mas ue M
clared that it intends to complete caple
to Manila within two years tnerea,,e[, obt Me IN
believe that the government can OBTAIN
all the advantages of governmental owner
shin and avoid the risks and disadvantages
Of governmental ownership by ailoWlhS a a
private corporation to lay ana opera,e .I,l
cahle. Moreover, we do not think 1t rlght
for the government to lay this cable a1ter
a nriyate corporation has started to lay
such a cable. ., D.
s.It appears also that this Commercial "a
cifc Gable Company, having filed with the
postmaster General it's acceptance OF GER
tain act OF Congress of July "a, 1865, is
now under obligation to sell It's caple anu
property to the government at any o,,,e me
ut it's appraised value, and also that the
Postmaster General has the right annually
to fix the rates to be charged FOR govern
mental cablegrams transmitted Dy TINS
cable and also that governmental MESSAGES
shall have precedence over other messages
in transmission If at any future tlme
the government should decide to embark
in the business Of owning and operating
Pacific cable 1T may do so ny taxing osea
this cable at It's appraised value. and hence
we do not see any object In the governmene
now constructing a cable. Finally: II @ Woudo oa
probably cost the government $looV,Vo
to construct this cable and the annuaI eA
penses of operation would probably be
81 500 COO as against probable income OF
only $15O.0OO.
siTor the above reasons, and especially
for the broad reason tina. I've we ao 10 ooverp- nov rp
mental ownership, we recommend tnat the
bill be not passed"
Contract Filed.
There is added to the minority report this
contract which has recently been filed with
the Attorney General by the Commercial
Pacific Cable Company. By this contract
the cable company replies to the allega-
tions of the opponents of a private cable
This contract, which has been presented to
the Attorney General, makes as "a basis
of consideration" by having the govern
nent lease to the cable company an once
in the general post Office building at Homo
in,,, The general counsel Of the company,
William w. Cook of New York. points out
in an accompanying letter. also printed
with the report. that the rentlns oi onles 4sS
form Of obligation upon which the govern
ment can base a contract to bind the COM
pany: that such office space Is frequently
rented in post ONCE buildings: tnat tne
contract may be terminated by the gov
ernment. but cannot be terminated by the
cable company.
Bv the contract the cable company binds
itself to charge the public so cents word
between California and Honolulu for the
first two wears, with a reduction to 35 cents
a word thereaf fter; to charge not exceeding
81 a word between California and Manila
or China; to accept such rates 1or govern,
ment messages as the Postmaster General
shall annually fix: to give priority to gov
ernment messages; to sell the cable to the
government at an appraised value II ever
the government should desire to own the
cable: to submit to government censorship
whenever the government tninks eucn ... cem.
sorship necessary-and, in short to carry
ont ali the requirements desired
n is further pointed out that the govern
rnent NAV enforce all OF these obligations
by summary action or the army anu navy
comnetent court or by suit for DAMAGES,
"a the government may deem best. The
contract IL approved by the board or ol-
recfors and signed by George y. Ward, vice
president and general manager OF the COM