No. 611.
Mr. Merrill to Mr. Bayard.

[Extract]
No. 160.]

Sir: I have the honor to inclose herewith copy of a bill, entitled “An act to authorize the Hawaiian Government to contract for the construction of international and interisland submarine telegraph cables,” which has passed the legislature and received the approval of His Majesty the King.

The printed text is the original bill and the interlineations, in red ink,* represent the amendments adopted.

The original bill was in the interest of Mr. Audley Coote and the Canadian Pacific Railway, but it being” suggested that it might be desirable to have a cable reach these islands from some point on the coast of the United States, the exclusive right and privilege to land a cable reaching to or from any foreign nation was stricken out and confined to British territory, which, with other amendments adopted, it is now stated by the friends of the original bill render it valueless to Mr. Coote, and it is probable he will not care to enter into a contract with the Hawaiian Government under the provisions of this bill.

There is a strong popular feeling here in favor of connecting these islands with the North American continent by cable and of rendering financial aid in the work.

My observations convince me that a telegraph cable, under the control of American citizens, connecting these islands and America, with a terminus on the coast of the United States, would be of great value to this country and our interests here, by reason of its influence in quieting the unrest natural to a segregated, ocean-bound community, confined to a limited area, and by bringing the people in daily contact with affairs in the United States and the world at large.

I have, etc.,

Geo. W. Merrill.
[Page 848]
[Inclosure in No. 160.]

AN ACT to authorize the [Hawaiian Government] to contract for the construction of international and interisiand submarine electric telegraph cables.

Whereas it is desirable to establish, as soon as practicable, telegraphic communication between this Kingdom and the North American continent, and the Australasian colonies of Great Britain, and between the different islands of this Kingdom;

And whereas [certain persons are] now engaged in the perfecting of plans for the construction and maintenance of a telepraphic cable or cables from some point on the North American continent, through the Pacific Ocean, to certain of the Australasian colonies of Great Britain;

And whereas it seems necessary to the speedy establishment of such communication with foreign shores that the parties establishing the same shall be granted certain exclusive rights as to the landing of telegraphic cables on our shores: Now, therefore,

Be it enacted by the King and the legislature of the Hawaiian Kingdom, Sec. 1. The minister of finance, [with the concurrence of all the members of the cabinet,] is hereby authorized to enter into a contract with the honorable Audley Coote, of Tasmania, his associates and assigns, [or with any other persons or corporations,] for the construction and laying of a submarine electric cable, from and between some point on the North American continent and some point upon one of the islands of this Kingdom, and for the construction and laying of a like cable or cables between the different islands of this Kingdom, in substance as hereinafter provided.

Sec 2. Such contract may by its terms provide for the grant, concession, and confirmation by the Hawaiian Government, to the honorable Audley Coote, his associates and assigns, [or any other persons or corporations] (hereinafter named and referred to as said constructors), of the sole and exclusive right and privilege to construct or land a submarine telegraph cable or cables which shall reach to or from any [British possession or colony] upon the shores of any island of the Hawaiian group for or during a period not exceeding three years from the first day of [January, 1888.]

Provided, however, That if the said minister of finance, at any time after the first day of August, 1889, shall [require] assurances from such constructors that such cable shall be completed from some point on the North American continent to some island of the Hawaiian group, not later than the first day of August, 1890, and the said constructors, upon such request being made, shall fail to give such assurances in that behalf as shall be satisfactory to the Hawaiian Government, then the exclusive right and privilege, the grant of which is hereinbefore authorized, shall, at the option of the said [cabinet,] at once, or at any time thereafter, lapse and become void, upon notice to that effect being given to the said constructors.

And further provided, That the concession and grant hereinbefore authorized shall not be so construed as to disable, prevent, or preclude the Hawaiian Government from consenting to the laying or landing through its waters, or upon its shores, of any submarine telegraph or other electric cable or cables which, during the period of three years hereinbefore mentioned, shall be constructed or laid, or sought to be constructed or laid, or landed upon Hawaiian shores, by or on behalf of any foreign nation or power.

Sec. 3. Such contract may further provide for the payment by the Hawaiian Government to said constructors of an annualsubsidy not to exceed twenty thousand dollars in legal tender of the Hawaiian Kingdom, for and during a period not to exceed fifteen years from the date of the establishment, over such cable, of telegraphic communication between the city of Honolulu and some point on the North American continent: Provided, That such communication shall be established not later than the first day of [January, 1891.]

Sec. 4. The grant of any of the rights or privileges and the payment of any subsidy hereinbefore authorized shall be conditioned upon the covenants of said constructors, to be expressed in such contract, [that is to say]—

(1)
That during such period after the establishment of telegraphic communication by and over such cable between Honolulu and the North American continent as the minister of finance shall pay such subsidy as is hereinbefore authorized, the messages of or for the Hawaiian Government shall be received and transmitted and delivered by and over such cable free of charge: Provided, however, That if the expense of so receiving, transmitting, and delivering sue messages, when computed at [half] the rate at which, when such messages shall be transmitted, ordinary press messages shall be transmitted over such cable, shall exceed the amount of the annual subsidy paid or contracted to be paid as hereinbefore authorized for any year, then the excess of such expense shall be paid by the said minister of finance to said constructors.
(2)
That said constructors shall not make or form or permit any combination, pool, or other agreement with any other person, body, company, or syndicate who or which shall hereafter own or operate any cable or cables through or across either the Indian [Page 849] or Pacific Ocean to or from the Australasian; colonies of Great Britain, or to or from the Hawaiian Kingdom, the effect or purpose of which combination, pool, or other agreement shall be to advance or increase the rates of telegraphy to of from the Hawaiian Islands, by or over any cable which shall be laid or constructed to or from the Hawaiian Islands by the said constructors.
(3)
That the rates for the transmission of messages to and from the Hawaiian Islands by and over any cable which shall be laid or constructed by said constructors shall not exceed the following-described limit, that is to say:
(4)
For all messages other than Hawaiian Government and press messages, to or fro between the point of such cable’s connection with the American telegraph system and Honolulu, not more than forty per cent, of the rates which shall be charged for like messages over such cable to or fro between said American point and any point in New Zealand or Australia.
(5)
For like messages to or fro between Honolulu and the point or points of such cable’s connection with either the New Zealand or the Australian telegraph systems not more than sixty per cent, of the rate which shall be charged for like message, over such cable to or fro between either said New Zealand point or said Australian point and said American point.
(6)
The rates for ordinary messages or items of news to any newspaper or news bureau of the Hawaiian Kingdom (commonly known as press messages) [shall not exceed one-half the rate which shall be charged for other messages, excepting] messages to or from the Hawaiian Government or any [officer] thereof, in his official capacity.
(7)
All messages other than Hawaiian Government and press messages shall be transmitted at and for one and the same rate.
(8)
In no case or instance shall any message over such cable, to or fro between the Hawaiian Islands and any foreign port or point, be charged for at a greater or higher rate than shall prevail in the case of a like message over such cable to or from any other point equally or more remote from Honolulu.

Sec. 5. Such contract shall further provide and contain, as a part of the consideration for the grants and subsidy hereinbefore authorized, a covenant on the part of said constructors to furnish, and within six months after the completion of said cable [and the] establishment of telegraphic communication thereover to any American or Australasian point or port, at their own proper charge and expense to lay and construct a cable or series of cables to connect the islands of the Hawaiian group from Hawaii to Kauai, as follows, to wit: From Hawaii to Maui, from Maui to Oahu with a landing on Molokai, and from Oahu to Kauai.

Sec. 6. Such interisland cable or cables shall be landed upon such islands, in such reasonable manner, and at such points as shall be designated by the cabinet and when so laid, constructed, and landed, shall be delivered to the minister of the interior for and to the use of the Hawaiian Government, at a price not to exceed the actual cost of such cable or cables delivered on board ship at the place of its or their manufacture.

Sec. 7. Said constructors shall be entitled to the use, at a rate not to exceed the usual local rates, of any such interisland cable or cables, together with any and all shore-lines connecting the same, for transmission of messages to and fro between Honolulu and the point or points of the landing of their international cable or cables.

Sec. 8. Upon the construction and delivery to the minister of [the interior] of such interisland cable or cables as provided by sections 5 and 6 of this act, and the establishment of telegraphic communication thereover, the minister [of finance] shall be authorized to pay said contractors the actual cost price thereof, to be computed as provided in section 6 of this act.

  1. Indicated by brackets.