Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-08-09
GOVERNMENT TO FIX RATES CHARGED
In Time Of War Unisod States Is to Have
Absolute Control
ExTINO IRON SAN FRANCISCO 10 CHINA
'OOmmsrCial Company Must Not Depend on
British Lins from Manila.
CONSTRUCTION MKY SOON coMMENcI
Attorney General of the Belief that
Company VIII Practically Pro-
ceed Immediately 10
=Snd Line.


OYSTER BAY. n. Y. Aug. Sat a con-
ference between President Roosevelt and
Attorney General Knox today. the con-
ditions under which the Commercial Cable
company may lay It's Pacific cable to the
Philippines were agreed upon. AS decided
the conditions practically give the govern
ment control Of the cable.
During the afternoon the conference be-
tween the president and Attorney General
Knox developed into one Of the most Inn
portent that has been held at eagamore
Hill.
Several months ago the Pacific CONNER
oiai Cable company sought permission
from the executive branch of the govern
ment TO lay Pacific cable running from
San Francisco via Honolulu and Guam to
China. there 20 connect with the British
cable 70 the Philippines. The proposition
Of the company was to assume all expense
Of laying and operating the cable. For the
concessions OF landings at San Francisco.
Honolulu and Guam the company proposed
70 grant the United States government
special rates, and In certain conditions Of
war practically absolute control. The con-
ditions AZ 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 subject
to Attorney General Knox with a request
that he so carefully over the proposed
conditions. eliminating such as he might
regard as impracticabie and adding such
others AZ he might believe would subserve
the interests OF the government. The re-
suits Of his investigation and his con-
illusions Mr. Knox presented to President
Roosevelt today in verbal form. the papers
=. - s....,sss .,,,ss:S s :s.s..
before the president.
Approves Amended Conditions.
President Roosevelt approved Of the
amended conditions and so far as the
executive branch Of the government Is con-
cerped. the company now may proceed
with the work Of laying the cable. 1t Ii
regarded as essential. however, that the
conditions Be ratified hy act Al coneress, a.
soma doubt exlofn Of tha rights. Of fhe
bHecutiFe branch 81 the government alone
to grant such privileges ns are included
IN she paeinc Commercial Cable compeny's >
proposition.
The conditions a. approved by Mr. Roose-
velt are regarded as particularly favorable
90 the government. and II Is believed that
with the cordial indorse1aent OF the presi-
dent. which he Will give the proposition In
his message next December. congress Will
xasify the conditions without serious delay.
Attorney General Knox added several i'm
portant conditions to those proposed BY
the company. including these:
That the United States government at all
times shau have priority OF service.
That the government, through the post
master general as Is customary in such
contracte. shall have the right 20 fx the
rates 70 be. charged BY the company
have the right absolutely to control the
cable. That IN order TO protect not only
the governmsnt. but also lhdividpai pEivase
customers Of the company the Pacific
Commercial Cable company As required 70
lay q distinct line Of cable from China "a
depend upon the British company which
now controls the only cable from Hons
Kong % Manila. and, nnalIy, chat the
pistion Of the cable. may purchase the line
At an appraised valuation 10 be fixed BY
Arbitrators selected In the usual manner
BY the two parties to the transaction.
Praetfcally BE Government Line.
BY those who have studied the subjec,
u is believed that cable laid under the
condition proposed win be. to all intentl
and purposes, government cable line
with few n any OF the disadvantages at
fendant upon government construction and
maintenance.
Under the United States treaty with
China the Chinese government. having
granted to British company the right e
maintain and operate a cable line within
lts domain. will be obliged TO grant to the
Hacinc Commercial Cable company, ar
American corporation. the same rights
This will enable the company not only e
land Its San Francisco line IN China, bui
will also enable II TO obtain a Chimes,
terminus for sts line 20 Manila In ths
Saying Of tts cable lines the company hai
been accorded the right 70 use the Unitet
States government soundings
Attorney General Knox is inclined to IN,
oplnion that the company will practically
proceed immediately to construct its llnes
Considerable time viii be required for th'
preliminary arrangements before the aetua
laying Of the cable begins. but Il IL 10
gardad now a. certain that An American.
oNned and operated cable line 10 the OFien
q IN sight
Attorney General and Mrs. Knox left lat
this afternoon for Atlantic City.
H. Q. Mccullough. a prominent railway
oflcial OF Chicago. and his daughter wer,
guests OF the president at luncheon.