The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-08-09
At which the Matter Was Disposed of,
Subject to the Ratification of
Congress.
GOVERNMENT WILL CONTROL
1T MAY VIRTUALLY TAKE POSSES
SION IN TINE OF WAR,
And Its Messages Shall at All Times
Have PriOrity-CabIe Company to
Use Government Soundings.

ULSTER BAY, N L., Aug S.-At con-
ference between President Roosevelt and
Attorney General Knox to-day the condi-
tons under which the Commercial Cable
Company may lay it's Pacific cable to the
Philippines agreed upon. AS decided
the conditions practically give the govern
ment control of the cable. The conference
was one of the most important that has
been held at Sycamore Hill.
Several months ago the Pacific CONNER
cial Cable Company sought permission from
the executive branch of the government to
lay Pacific cable running from San Fran
cisco via Honolulu and Guam to China,
there TO connect with the British cable to
the Philippines. The proposition of the
company was to assume all expense of lay
ing and operating the cable. For the con-
cessions of landings al 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 ca
BILE. The conditions as presented by the
company to the President were naturally
such any corporation might make. They
had been drawn for the protection of the
companys interests.
to Attorney General Knox with a request
that he go carefully over the proposed
conditions, eliminating such as he might
regard as simpracticable and adding such
others as he might believe would subserve
the interest of the government. The re-
suits of his investigation and the conclu-
sions Mr.. Knox presented to President
Roosevelt to-day in verbal form. the papers
in the matter previously having been laid
before the President
APPROVED BY THE PRESIDENT.
President Roosevelt approved of the
amended conditions, and far the
executive branch of the government is con-
cerned the company now may proceed with
the work of laying the cable. 1t is re-
garded as essential, however. that the con-
ditions be ratified by act Of Congress. as
some doubt exists of the right of the
executive branch of the government alone
to grant such privileges as are included in
the proposition. The conditions as ap-
proved by Mr.. Roosevelt are regarded as
particularly favorable to the government,
and it is believed that with the cordial in
dorsement of the President, which he will
give the proposition in his message next
December, Congress will ratify the condi-
tions 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 shall have priority of service.
That the government, through the post
master general as is customary in such
contracts, shall have the right TO fix the
rates TO be charged by the company.
That in time of war the government shall
~frl,r 1c41r nlx 20 rnl q kA
cable.
That in order to protect not only the
government, but also individual private
merciaI Gable Company is required to lay
a distinct line of cable from China TO
Manila. that il will not be necessary
to depend upon the British company which
now controls the only cable from Hong
Kong TO Manila
And, finally, that the United States at any
time after the completion of the cable may
purchase the line at an appraised valua-
ton to be fixed by arbitrators selected in
the usual manner by the two parties to
the transaction.
By those who have studied the subject
it is believed that a cable laid under the
conditions proposed will be, to all intents
and purposes. 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 main
tain and operate a cable line within its
domain, will be obliged to grant to the
Pacific Commercial Cable Company, 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 ii TO obtain 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 practically
proceed Immediately TO construct its line.
Considerable time will be required for the
preliminary arrangements before the actual
laying of the cable begins. but il is regarded
now as certain that an American owned and
operated cable line TO the Orient is in
sight. The attorney general and Mrs. Knox
left late to-day for Atlantic City.
II. c. Mccullough a prominent railway
official of Chicago, and his daughter were
guests of the President at luncheon.