The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-03-15

INOdu act OF congress. None OF the Cd
BILE companies owning cables between
Europe and America have accepted it.
Mr.. Mackay is laying this cable with
out any subsidy. and he is now bound
to the United States government to ac-
cept such rates for government mes
sages as the Postmaster-General may
dictate. and he Is bound likewise TO
sell the cable at any time to the gov
eminent at its appraised value, and he
has offered to accept all the terms and
conditions which have ever been i'm
posed upon a domestic cable company.
for landing a cable on the shores OF
the United States. For these reasons
we understand that Senate bill No. 81,
which was drawn by the Attorney
General of the United States. Will not
be pressed for passage. The only issue
now before Congress on this subject
is the issue OF whether the government
shall manufacture and lay at its own
expense a Pacific cable in competition
with that OF Mr.. Mackay's company.
REDUCED RATES TO THE FAR
EAST.
Prior TO the Incorporation OF the
Commercial Pacific Cable Company, inl
September, 1901. the rate for messages
from New York TO the Philippine ISL
ands was S2.35 per word: in November.
1901. this rate was reduced by the Eu-
ropean cable companies TO $1.66 per
word. The simple announcement of
the intention of the Commercial Com
pany to lay Pacific cable has thus eff
fected a saving on commercial mes
sages OF 50 cents per word. The Com
merciaI Company intends To charge but
81 per word from San Francisco TO
"a n
cisco to Manila and fifty cents from
San Francisco to Honolulu, and agrees
To reduce the latter rate within two
years 10 thirty-five cents a word. This
involves a saving OF s1.35 per word on
all messages between San Francisco
and the Philippines. 1t is great re-
duction from the former rates, and
means a substantial gain to all Amer
lean merchants doing business in the
Far East. In order to remove any
doubt as to the good faith OF this COM
pany in carrying out its promises on
this subject the company has filed with
the Secretary of State at Washington
a declaration and agreement binding
the company to make these reductions
in its rates.
GOVERNMENT CABLE.
II would seem preposterous TO think |
that any public man or business man
would for a moment favor the United |
States government laying a cable tol
compete with the cable which is being |
manufactured and laid at private ex-
pense and without n dollar OF subsidy |
or cost To the government. 1t Is strange |
that IL is even necessary to- dwell upon
these bills. The arguments against the
bills for a government cable were fore
IDLY summarized by the House Com
mittee on Interstate and Foreign Com
merce in last Congress. The committee |
summed up the disadvantages OF a gov
eminent cable as follows: l. The heavy |
cost of construction-Sl5.o0 900. ?. The
annual expense OF Observation-Disclosures |
at s.. 500. 900. against a probable annual
income OF Sl5O.OOO. 3. The inability OF
the United States government TO land
and operate a government-owned ca
BILE either in Japan or China 4. The
consequent Limitation OF the income OF
the cable to traffic between the United
States and the Philippine and Hawaii |
an Islands 5. The probability that
three-fourths OF those benefited by the
large annual expenditure OF public
money which the maintenance Of
government cable would involve. would
be foreigners only incidentally inter-
es;ed in the development OF the COM
merce OF the United States
Those arguments are unanswerable,
and since that time they have been for
tilted by the fact that a private COM
pany Is actually laying the cable. and
there Is no longer the least occasion for
any government cable whatsoever.
This is the situation. The cable COM
pany agrees to furnish all the money;
purchase and lay the cable at the
smallest cost. consistent with first
class work; utilize the most experience
ed and expert cable talent; take the
risk of breakdowns and failures of the
cable 10 work: take the risk OF the bus
mess not paying: give the government
the right to fix its own rates for gov
eminent business. and finally this ca
BILE company agrees TO reduce the pub
lie rate to Manila and China to 81 per
word.
And then. after taking all these obli-
cations upon itself. the company gives
the government the option to take over
the cable at any time at its appraised
valuation.
Was such a proposition ever before
made to any government? The COM
pany takes all the risk; the govern
ment takes none. II the cable is fail
ure, the government need not buy. If
the cable is success or II the gov
eminent needs il for any purpose. polt-
ical, governmental or commercial. the
takes it over; If the cable
is total or partial loss. the govern
ment loses nothing.
No one can doubt that the company
can construct the cable more cteaply.
more quickly and more successfully
thar. the government can. The govern
ment has never laid or owned an ocean
ic. deep-sea cable; the Commercial Ca
bic Company has laid over $4,000 miles
OF Atlantic cable. Government con-
struction would be expensive. slow and
faulty.
The Commercial Company can con-
struct this cable for about s12OOO.O 900.
Government construction would prob
ably cost s2O.000. 900. and even then the
cable might not work. on account OF