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2d Session.

No. 51.

MESSAGE

FROM THE

PRESIDENT OF THE UNITED STATES,

TRANSMITTING,

In response to Senate resolution of May 2, 1884, a report of the Secretary of State in relation to the landing of foreign telegraph cables on the shores of the United States.

JANUARY 28, 1885.-Read and ordered to be printed, and, with the accompanying papers, referred to the Committee on Printing.

To the Senate of the United States:

I transmit herewith a report of the Secretary of State and accompanying papers, furnished in response to a resolution of the Senate of May 2, 1884, calling for information relative to the landing of foreign telegraphic cables upon the shores of the United States.

EXECUTIVE MANSION,

Washington, January 27, 1885.

CHESTER A. ARTHUR

DEPARTMENT OF STATE,

Washington, January 27, 1885.

To the President:

In answer to the resolution of the Senate dated May 2, 1884, requesting that that body be furnished with "copies of all agreements heretofore made with any companies, by which cables from foreign countries. have been landed upon the shores of the United States," and inquiring "whether any company is now negotiating for the privilege of landing any cables; and, if so, upon what terms," I have the honor to submit the following report, with accompanying copies of correspondence on file in the Department of State pertaining to the subject.

The first cable from a foreign country landed upon the shores of the United States, according to information available in this Department, was one connecting the island of Cuba with the State of Florida. This cable was laid in 1867, in accordance, it is believed, with an act of Congress approved May 5, 1866, grauting to the International Ocean Telegraph Company the sole privilege, under certain conditions, of laying, maintaining, and operating an ocean telegraphic cable for fourteen years, from the coast of Florida to the West India or Bahama Islands. In 1869 a concession was granted by the French Government to a company which proposed to lay a cable from the shores of France to the United States. One of the provisions of this concession gave to

the company for a long term of years the exclusive right of telegraphic communication by submarine cable between the shores of France and the United States. President Grant resisted the landing of the cable in the United States unless this offensive monopoly feature of the concession should be abandoned, and unless the right should be conceded that any cable which might be established by authority of this Government to land upon French territory and to connect with French land Jines should enjoy all the facilities incident to the use thereof upon as ⚫ favorable terms as any other company. The French company then renounced the exclusive privilege, and the President's opposition was withdrawn. The company landed its cable in July, 1869.

By act of Congress of March 29, 1869, the American Atlantic Cable Telegraph Company was privileged to land a cable or cables upon any of the shores of the United States except the coast of Florida. The promoters of this company experienced considerable difficulty in secur ing sufficient capital to carry out the enterprise, and it was not until 1874-75 that the company, under the new title of The Direct United States Cable Company, completed its line from Ballinskelligs Bay, Ireland, to Rye, N. II., by way of Torbay, Nova Scotia. The articles of association of the company precluded any monopoly features, or the amalgamation of the company with another company, or any arrange ment which would tend to a combination for the advance of rates on the cost of telegraphing.

The correspondence transmitted herewith will show the course adopted by the President, in the absence of legislation by Congress on the subject, with reference to the landing of the French Cable in 1879, and the Mackay-Bennett Commercial Cable of 1884, the conditions to which the companies were required to assent being substantially those embodied in President Grant's annual message of December, 1875, an extract from which is given in Document No. 7 of the accompanying papers.

The only negotiations now pending to land a cable on United States territory, so far as this Department is aware, are those for the connec tion of the Canadian Government telegraph system near Victoria, Vancouver Island, with Point Angelos, Washington Territory, by way of the straits of San Juan de Fuca. The correspondence with the British minister in Washington, in relation to this project, is given in the accompanying papers.

There has been some question as to whether certain cable companies have adhered strictly to the terms upon which they secured the right to land on United States territory. A message from the President to the House of Representatives, dated February 23, 1883, transmitted a report of the Secretary of State and accompanying correspondence relating to modifications of the stipulations made with the French Cable Company by this Government. It was printed as House Ex. Doc. 46, Parts 1 and 2, Forty-seventh Congress, second session.

Respectfully submitted.

FRED'K T. FRELINGHUYSEN.

LIST OF ACCOMPANYING PAPERS.

FIRST FRENCH CABLE.

No. 1. Mr. Fish to Count de Taverney, July 10, 1869, with an accompaniment, No. 2. Count de Taverney to Mr. Fish, July 16, 1869.

No. 3. Mr. Berthemy to Mr. Fish, April 8, 1870, with accompaniments.

No. 4. Mr. Fish to Mr. Berthemy, April 14, 1870.

No. 5. Mr. Berthemy to Mr. Fish, June 15, 1870.

No. 6. Mr. Fish to Mr. Berthemy, June 18, 1870.

PRESIDENT GRANT'S VIEWS CONCERNING CABLES.

No. 7. Extract from President's annual message of December, 1875.

SECOND FRENCH CABLE.

No. 8. Mr. Outrey to Mr. Evarts, October 24, 1879, with an accompaniment.
No. 9. Mr. Evarts to Mr. Outrey, October 27, 1879, with an accompaniment.
No. 10. Mr. Outrey to Mr. Evarts. November 7, 1879, with an accompaniment.
No. 11. Mr. Evarts to Mr. Outrey, November 10, 1879.

No. 12. Mr. Outrey to Mr. Evarts, November 15, 1879.

No. 13.

Same to same, January 9, 1880, with accompaniments.
No. 14. Mr. Evarts to Mr. Outrey, January 23, 1880.

No. 15. Mr. Outrey to Mr. Evarts, February 20, 1880, with an accompaniment.
No. 16. Mr. Evarts to Mr. Outrey, March 1, 1880.

COMMERCIAL CABLE.

No. 17. Messrs. Mackay, Bennett, and associates, to Mr. Frelinghuysen, December 4, 1883.

No. 18. Mr. Frelinghuysen to Messrs. Mackay, Bennett, and associates, December 5, 1883.

UNITED STATES AND BRITISH COLUMBIA CABLE.

No. 19. Mr. West to Mr. Frelinghuysen, June 29, 1883, with an accompaniment.
No. 20. Mr. Frelinghuysen to Mr. West, September 28, 1883, with an accompani-

ment.

No. 21. Mr. West to Mr. Frelinghuysen, January 2, 1884, with an accompaniment. No. 22. Mr. Frelinghuysen to Mr. West, January 10, 1884.

No. 23. Same to same, February 13, 1884.

No. 24. Same to same, February 16, 1884.

No. 25. Mr. West to Mr. Frelinghuysen, June 25, 1884, with an accompaniment. No. 26. Mr. Frelinghuysen to Mr. West, August 18, 1884.

CORRESPONDENCE.

FIRST FRENCH CABLE.

No. 1.

Mr. Fish to Count de Taverney.*

DEPARTMENT OF STATE,

Washington, July 10, 1869.

SIR: I have the honor to ask your attention to the subject of the transatlantic telegraphic connection which it is understood is expected to be made between the Empire of France and the shores of the United States by means of a cable to be laid, under the auspices and in the proprietorship of a British private corporation, and under authority of a concession from the Government of France. The project of this enterprise embraces a connection direct from the coast of France to the island of St. Pierre, and thence to a point on the Atlantic coast of the United States. It is only, of course, in respect to this last division of the projected cable connection between the territory of France and of the United States that I have occasion to ask your attention to the views of this Government as to its authority and duty in the premises.

It is not doubted by this Government that the complete control of the whole subject, both of the permission and the regulation of this mode of foreign intercourse, is with the Government of the United States, and that, however suitable certain legislation on the part of a State of the Union may become, in respect of its proprietary rights, in aid of such enterprises, the entire question of the allowance or prohibition of such means of foreign intercourse, commercial and political, and of the terms and conditions of its allowance, is under the control of the Government of the United States.

As the projectors of the enterprise now in progress have not received or awaited the permission of this Government, either to the establishment of this telegraphic connection or to its use for such intercourse with the coast of France, I have thought it proper to call the attention of the diplomatic representatives of the two powers under whose authority the private rights involved have been acquired, to the position and authority of this Government on the subject.

In thus distinctly notifying you that in the absence of the assent to or concurrence in the proposed telegraphic connection of the Government of the United States, the proceedings of the parties interested must be taken in submission to the authority of this Government in the premises, I am actuated as well by a desire that these private interests should not suffer unnecessary disappointment, as by the purpose to place before you the authority of the United States on the general subject in its proper light.

A note identical with this was sent to Sir Edward Thornton, the British minister, the same date.

The policy of this Government in respect to the allowance and regulation of foreign telegraphic intercourse received very deliberate consideration from Congress during its session of the last winter, and a bill covering the whole subject was sustained and passed in the Senate, but at so late a day of the session as to have failed to be reached in the House of Representatives. It is quite probable that this bill announces the policy and purpose of Congress, and the propriety of its provisions can hardly fail to secure asseut. I therefore beg to call your attention to the inclosed copy of the bill as probable evidence of what conditions of permission and of regulation of foreign telegraphic intercourse are to be insisted upon by the United States.

I have, &c.,

HAMILTON FISH.

[Inclosure.-Senate bill 863, 1869.]

(Fortieth Congress, third session. In the Senate of the United States, February 2,

1869.)

Mr. SUMNER, from the Committee on Foreign Relations, reported the following bill; which was read and passed to a second reading:

A BILL relating to telegraphic communication between the United States and foreign countries. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That whenever communication shall hereafter be established between the United States and any foreign country by means of telegraphic or magnetic lines or cables laid in any part thereof, in and over the waters, reefs, islands, shores, and lands within the jurisdiction of the United States, the same shall be subject to the following conditions, stipulations, and reservations, to wit:

First. The Government of the United States shall be entitled to exercise and enjoy the same or similar privileges, with regard to the control and use of any such line or cable and the lines or cables connected therewith, that may by law, agreement, or otherwise be exercised and enjoyed by any foreign Government whatever.

Second. The United States Government shall at all times be entitled to the use of any such line or cable, and the lines or cables connected therewith. by a telegraphic operator of its own selection, to transmit any messages to and from its military, naval, diplomatic, and consular agents, and such messages shall be entitled to take precedence of all other messages.

Third. The rates to be paid for the transmission of any such message or messages, when not otherwise fixed by agreement, shall be established by the PostmasterGeneral of the United States.

Fourth. The lines of any such lines or cables shall be kept open to the public for the transmission for daily publication of market and commercial reports and intelligence, and all messages, dispatches, and communications shall be forwarded in the order in which they are received, except as hereinbefore provided.

Fifth. It shall be at all times within the power of Congress to determine the rates to be charged for the transmission of messages and communications over any such line or cable, and to fix and establish such rules and regulations in relation thereto as it may judge necessary.

Sixth. Before extending and establishing any such line or cable in or over any waters, reefs, islands, shores, and lands within the jurisdiction of the United States, a written acceptance of the terms and conditions imposed by this act shall be filed in the office of the Secretary of State by the company, corporation, or party proposing to establish telegraphic communication.

SEC. 2. And be it further enacted, That subject to the foregoing conditions, stipulations, and reservations, the consent of Congress is hereby given to the laying and maintaining of telegraphic or magnetic lines or cables between the United States and foreign countries, in and over the waters, reefs, islands, shores, and lands within the jurisdiction of the United States, subject, however, to any and all rights of property and State jurisdiction in and over the same: Provided, That the privileges conferred by this act shall not be enjoyed by any company or persons whose line or cable, by its connections or otherwise, terminates in or extends to any foreign country in and by which similar privileges are not conferred upon companies incorporated by the authority of the United States or of any State of this Union.

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