The Birmingham age-herald., 1902-08-09
Attorney General Knox Pre- sents President Roosevelt Changed Conditions for Granting of the Franchise.
Government at All Times Shall Have Priority of Service, Fix Rates, Control Line and Af- terWards Purchase Same.

Oyster Bay. N. Y. August s.-Attorney General and Mrs. Knox, who arrived here from New York about noon, will be the guests of the President and Mrs. Roosevelt until tomorrow It is under stood that Attorney General Knox will shortly sail for Europe. where, in France, he will devote some personal attention to the Panama canal question. It Is quite probable now that the proceedings looking to a determination of the ability of the new Panama Canal company to pass clear title of the property to the United States will be conducted in the French courts.
 While the administration is anxious to have the matter passed upon as soon as practicable, the question of time will be secondary to that of certainty that the United States will have no ttrouble with the stockholders of the old Panama Canal company if the property and rights of the new company should beA acquired by this country under the spooner act The President, upon whom the responsibility rests. will take no chances upon the results of extended liti- gation in which the United States might become involved if the property of the new Panama Canal company were purch- ased before 1t had been determined judi ciously that the company possessed the absolute right to convey a clear title to this country.
 During the afternoon the conference between the President and attorney gen. eral developed into one of the most im- portant that has been held at Sagamore Hill
 New Cable Line.
 Several months ago the Pacific Com mercial Cable Company sought permts- sion from the executive branch of the government to lay Pacific cable run ming 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- sume all expense of laying and operat- Ing the cable For the concessions of landing 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 com ] pany to the President were naturally such as any corporation might make l They had been drawn for the protection of the company's interests. MT. Roosevelt referred the whole sub ! l request that he go carefully over the pro- | posed conditions. eliminating such as he might regard as impraoticable and add ing such others as he might believe would l subserve the interests of the government ] The results of his investigation and his conclusions, MT. Knox presented to Pres ident Roosevelt today In verbal form, the papers in the matter previously hav- | ing been laid before the President.
 Work Is Approved. l President Roosevelt approved of the amended conditions and so far as the executive branch of the government Is concerned the company now may pro- l ceed with the work of laying the cable. | It is regarded as essential, however that the conditions Der atifed by act of con gress, as some doubt exists of the rights of the executive branch of the govern ment alone to grant such privileges as are included in the proposition. The con- ditions as approved by President Roose- welt are regarded as particularly favor- | able to the government and 1t is believed that with the cordial endorsement of the President, which he will give the proposition in his message next Decem- Der, congress will ratify the conditions without serious objection. Attorney General Knox added several 1 important conditions to those proposed by the company, including these:
 That the United States government at | all times shall have priority of service.
 That the government through the postmaster general as is customary in | such contracts, shall have the right to | fix the rates to be charged by the com pany.
 ''That in time of war the government shall have the right absolutely to con- trol the cable.
 That in order to protect not only the l government but individual private cus- toners of the company. the Pacific Com mercial Cable company is required to lay a distinct line of cable from Chna to Manila so that 1t will not be neces- sary to depend upon the British com pany, which now controls the only cable from Hong Kong to Manila.
 Government May Purchase.
 And finally. that the United States at any time after the completion of the ca ble may purchase the line at appraised valuation to be fixed by arbitrators to l be selected in the usual manner by tho two parties to the translation. By those who have studied the subject, 1t Is be- lived that a cable laid under the condi- tions proposed will be, to all intents and purposes a government cable line with | few, If any of the disadvantages attend ant upon government construction and maintenance"
 Under the United States treaty with | China the Chinese government, having granted to a British company the right to maintain and operate cable line with | in its domain, will be obliged to grant ! of the Pacific Commercial Cable com pany, an American corporation. the same rights. This will enable the company not only to land its San Francisco line in | China. but also will enable 1t to obtain a Chinese terminus for it's line to Manila In the laying of its cable lines the com pany has been accorded the right to use the United States government soundings.
 Attorney General Knox Is inclined to the opinion that the company will prac- tically proceed immediately to construct l It's line. Considerable time will be re- auired for the preliminary arrangements before the actual laying of the cable be- gins.