Still Laying Cables

The cable ship Burnside is to continue laying cables in the Philippines connecting Manila with the islands. This decision revives interest in the protest of the Eastern Cable company against the laying of cables in the islands. This protest was considered by the state, war and justice departments of this government, and it was determined, after an opinion by the attorney general, that the reservation by the Spanish government, when it granted the eastern extension company exclusive rights in cable construction, allowed the United States government to continue its cable connection. This reservation decided that the Spanish government could lay cable for state purposes. As the cable being laid by the war department is for the use of military authorities in governing the islands, it was held that this meant "state purpose" in the Spanish concession. The concession was granted just before the Spanish-American war and runs 40 years.

It is still an open question whether the concession was covered by the Spanish treaty. The extension company claims it was. While the company makes no strenuous objections to the laying of cable for purely government purposes, it has served notice that it would protest emphatically should the cable be used for commercial purposes. The company offered to relinquish its franchise upon payment of $25,000 a year for the life of the grant. This proposition has not been received with particular favor by the United States authorities. Meanwhile cable tolls are quite high, especially upon messages sent from here to Manila, the rate being $2.25 a word on messages going to the Philippines, while the rate is $1.79% on messages from Manila to the United States.