Evening star., 1902-02-19
AN EASTERN MONOPOLY
Representative Corliss on the
Gable Situation.
ITS EXCLUSIVE RIGHTS
STATEMENT SHOWING THE COM
PANY's PROFITS.
The American Ally to a British orgapi-
zation Defies Rights Of This
Government.
ITS EXCLUSIVE RIGHTS

The cable situation in the far east was
discussed in the House today by Mr. Cor
liss, author of the Corliss bill for the con-
struction OF 4 Pacific cable by the United
States government, In recent speech in
the House Mr.. Coriss discussed the legal
aspect Of the situation. Today he turned
his attention to the peculiar monopo!istic
Geographic situation in the east.
The Eastern and Eastern Extension Ca
bic Companies. with their allied lines he
said. embrace system which aggregates
nearly seventy thousand nautical miles of
cable. covering the most extensive and
powerful cable and telegraph monopoly III
the world. Their lines reach every continent
except North America. and the purpose OF
thH union with their American ally, the Com
mercial Pacific Cable Company, is To en-
circle the globe and extend the influence
and advantage of their present monopoly IN
the Pacific ocean and the far east.
Exclusive Rights Held by This Mo-
nopoly.
IN March, 1saS the Eastern Extension
Company obtained from the government Of
China a prolongation of it's monopoly for
twenty years, ending in May. 1910. This
concession covers not only the Philippine
Islands, but Guam and other Spanish
islands in the Pacific ocean.
When we ratified the treaty of peace 1t
was expressly provided therein that all con-
tracts then existing. lawfully issued 10y
Spain. should be recognized by our country.
The Eastern Extension Company claims the
exclusive right to lay, land and operate
cables with Guam and the Philippine Is
lands under this contract. Whether such
exclusive privileges are illegally binding
upon our country WILL in due time, be de-
termined by a proper tribunal. 1t is suffi-
cient for to know, In the conSlderat on
of the construction Of "A Pacific cab.e, that
this great corporation assumes to hold these
exclusive rights, and has made a contract
with an American ally for the express pur-
pose of extending her grasp of the cable
business into the very center of civilization,
and with the hope of monopolizing the
growing commercial interests Of our people
in the Pacific ocean.
THE audacity of this octopus and the
villainous ingenuity with which it seeks to
evade the conditions imposed upon other
cable companies and extend its tentacies
over our islands in the Pacific and faSten
it's grasping clutch upon the wheels of
progress rapidly moving from our coun-
try toward the Pacific ocean are marvellous
ly ingenious and the most audacious usurper
of public rights of the present age. How
any representing the interests of the
people can sanction such a scheme by his
silence and countenance the compact be-
tween these companies is beyond my COM
prehension.
mOSL OduSeIOuS uACAuSC.
But this is not the most dangerous
menace to the future welfare of our peo-
pie and the expansion Of our trade and
commerce in the Pa cfic ocean. On various
occasions from 1882 down to the present
time China has granted to these cable
monopolists the exclusive right to estab-
lish cable commun. cation with China. The
last Of these concessions was In 1860. On
this occasion Sir Charles Dixie said: The
effect of the agreement would be that the
government were binding themselves TO
maintain for the two companies concerned
the Eastern Extension and the Great
Northern Telegraph Companies-a monop-
oily in the working of all Chinese subma-
rinc lines. 1t was the declared policy Of
the United States government to establish
direct communication with China. and the
agreement would bind the British govern
ment to resist that He contended that the
more competing telegraph lines there were,
the greater the advantage TO this country,
especially in times
The foregoing demonstrates the neces-
sity of immediate action if we are to pre-
serve the open door in China. If the Com
mercial Pacific Cable Company ic permitted,
b. the inaction of Congress, to lay its cable
across the Pacific ocean, this gigantic cable
monopoly will have the future trade and
commerce of our country within its grasp;
our naval station at Guam wifi be fefr wftn-
out cable communication, as 1t Is well
known that the intention of this company Is
to extend it's cable to the Marshall Islands,
controlled by Germany, and obtain sub
sidy she offers therefor.
'Of what Will the American naval
station be to the American navy at tie
Island of Guam with a cable held and con-
trolled by foreign cable company? 1
cna rye that the Commercial Company is In
fact the Eastern Extension monopoly; this
is shown by the fact that Mackay made his
contract with them in August last before
he applied for the privilege of extending
the cable
Mr. Corliss here read the test mony OF
Vice President Ward of the Commercial
Company before the House committee to
substantiate this assertion.
Statement Of Eastern Cable Company.
MY attention has recently been called,
he continued, Ito the semi-annual state
ment of the Eastern Gable Company, end
ing September 30 last The statement
shows after the payment OF interest on
mortgage debentureS, five per cent d1Tl-
dend for six months on ordinary stock and
$lO.0JO reserve for maintenance of ship:
81 120 900 net profit, equivalent to an annual
profit of s2,240,a00, after the payment Of all
fixed charges 10 per cent on it's common
stock and large amount set aside for re-
serve.
Talk about the trusts in the United
States They are pygmies compared with
this octopus. How can we permit the con-
struction of the cable across the Pacific by
the Commercial Company, when in view OF
the action Of our government with refer
ence to cables laid in the Atlantic. in which
express provision Is made that such cable
company, nor any cable with which 1t con-
meets, shall receive from any foreign gov
ernment exclusive privileges and that such
company shall not combine with any other
line for the purpose Of regulating rates.
In fragrant violation OF these conditions,
this American ally has established relations
with the Eastern Company and boldly de-
fies the rights Of our government.
How can we maintain peace in the Pa
c,fc and properly direct our army and navy
through foreign cable company Differed
and manned with British subjects? How
can our tradesmen compete with cable
rate twice the amount charged by the Eng
lSh government cable.