Certificates of the board of audit - - 4,770,558.45

- -

***

State of the Union Address

Ulysses S. Grant

December 7, 1875

To the Senate and House of Representatives:

In submitting my seventh annual message to Congress, in this centennial

year of our national existence as a free and independent people, it affords

me great pleasure to recur to the advancement that has been made from the

time of the colonies, one hundred years ago. We were then a people

numbering only 3,000,000. Now we number more than 40,000,000. Then

industries were confined almost exclusively to the tillage of the soil. Now

manufactories absorb much of the labor of the country.

Our liberties remain unimpaired; the bondmen have been freed from slavery;

we have become possessed of the respect, if not the friendship, of all

civilized nations. Our progress has been great in all the arts--in science,

agriculture, commerce, navigation, mining, mechanics, law, medicine, etc.;

and in general education the progress is likewise encouraging. Our thirteen

States have become thirty-eight, including Colorado (which has taken the

initiatory steps to become a State), and eight Territories, including the

Indian Territory and Alaska, and excluding Colorado, making a territory

extending from the Atlantic to the Pacific. On the south we have extended

to the Gulf of Mexico, and in the west from the Mississippi to the

Pacific.

One hundred years ago the cotton gin, the steamship, the railroad, the

telegraph, the reaping, sewing, and modern printing machines, and numerous

other inventions of scarcely less value to our business and happiness were

entirely unknown.

In 1776 manufactories scarcely existed even in name in all this vast

territory. In 1870 more than 2,000,000 persons were employed in

manufactories, producing more than $2,100,000,000 of products in amount

annually, nearly equal to our national debt. From nearly the whole of the

population of 1776 being engaged in the one occupation of agriculture, in

1870 so numerous and diversified had become the occupation of our people

that less than 6,000,000 out of more than 40,000,000 were so engaged. The

extraordinary effect produced in our country by a resort to diversified

occupations has built a market for the products of fertile lands distant

from the seaboard and the markets of the world.

The American system of locating various and extensive manufactories next to

the plow and the pasture, and adding connecting railroads and steamboats,

has produced in our distant interior country a result noticeable by the

intelligent portions of all commercial nations. The ingenuity and skill of

American mechanics have been demonstrated at home and abroad in a manner

most flattering to their pride. But for the extraordinary genius and

ability of our mechanics, the achievements of our agriculturists,

manufacturers, and transporters throughout the country would have been

impossible of attainment.

The progress of the miner has also been great. Of coal our production has

small; now many millions of tons are mined annually. So with iron, which

formed scarcely an appreciable part of our products half a century ago, we

now produce more than the world consumed at the beginning of our national

existence. Lead, zinc, and copper, from being articles of import, we may

expect to be large exporters of in the near future. The development of gold

and silver mines in the United States and Territories has not only been

remarkable, but has had a large influence upon the business of all

commercial nations. Our merchants in the last hundred years have had a

success and have established a reputation for enterprise, sagacity,

progress, and integrity unsurpassed by peoples of older nationalities. This

"good name" is not confined to their homes, but goes out upon every sea and

into every port where commerce enters. With equal pride we can point to our

progress in all of the learned professions.

As we are now about to enter upon our second centennial--commenting our

manhood as a nation--it is well to look back upon the past and study what

will be best to preserve and advance our future greatness From the fall of

Adam for his transgression to the present day no nation has ever been free

from threatened danger to its prosperity and happiness. We should look to

the dangers threatening us, and remedy them so far as lies in our power. We

are a republic whereof one man is as good as another before the law. Under

such a form of government it is of the greatest importance that all should

be possessed of education and intelligence enough to cast a vote with a

right understanding of its meaning. A large association of ignorant men can

not for any considerable period oppose a successful resistance to tyranny

and oppression from the educated few, but will inevitably sink into

acquiescence to the will of intelligence, whether directed by the demagogue

or by priestcraft. Hence the education of the masses becomes of the first

necessity for the preservation of our institutions. They are worth

preserving, because they have secured the greatest good to the greatest

proportion of the population of any form of government yet devised. All

other forms of government approach it just in proportion to the general

diffusion of education and independence of thought and action. As the

primary step, therefore, to our advancement in all that has marked our

progress in the past century, I suggest for your earnest consideration, and

most earnestly recommend it, that a constitutional amendment be submitted

to the legislatures of the several States for ratification, making it the

duty of each of the several States to establish and forever maintain free

public schools adequate to the education of all the children in the

rudimentary branches within their respective limits, irrespective of sex,

color, birthplace, or religions; forbidding the teaching in said schools of

religious, atheistic, or pagan tenets; and prohibiting the granting of any

school funds or school taxes, or any part thereof, either by legislative,

municipal, or other authority, for the benefit or in aid, directly or

indirectly, of any religious sect or denomination, or in aid or for the

benefit of any other object of any nature or kind whatever.

In connection with this important question I would also call your attention

to the importance of correcting an evil that, if permitted to continue,

will probably lead to great trouble in our land before the close of the

nineteenth century. It is the accumulation of vast amounts of untaxed

church property.

In 1850, I believe, the church property of the United States which paid no

tax, municipal or State, amounted to about $83,000,000. In 1860 the amount

had doubled; in 1875 it is about $1,000,000,000. By 1900, without check, it

is safe to say this property will reach a sum exceeding $3,000,000,000. So

vast a sum, receiving all the protection and benefits of Government without

bearing its proportion of the burdens and expenses of the same, will not be

looked upon acquiescently by those who have to pay the taxes. In a growing

country, where real estate enhances so rapidly with time as in the United

States, there is scarcely a limit to the wealth that may be acquired by

corporations, religious or otherwise, if allowed to retain real estate

without taxation. The contemplation of so vast a property as here alluded

to, without taxation, may lead to sequestration without constitutional

authority and through blood.

I would suggest the taxation of all property equally, whether church or

corporation, exempting only the last resting place of the dead and

possibly, with proper restrictions, church edifices.

Our relations with most of the foreign powers continue on a satisfactory

and friendly footing.

Increased intercourse, the extension of commerce, and the cultivation of

mutual interests have steadily improved our relations with the large

majority of the powers of the world, rendering practicable the peaceful

solution of questions which from time to time necessarily arise, leaving

few which demand extended or particular notice.

The correspondence of the Department of State with our diplomatic

representatives abroad is transmitted herewith.

I am happy to announce the passage of an act by the General Cortes of

Portugal, proclaimed since the adjournment of Congress, for the abolition

of servitude in the Portuguese colonies. It is to be hoped that such

legislation may be another step toward the great consummation to be

reached, when no man shall be permitted, directly or indirectly, under any

guise, excuse, or form of law, to hold his fellow-man in bondage. I am of

opinion also that it is the duty of the United States, as contributing

toward that end, and required by the spirit of the age in which we live, to

provide by suitable legislation that no citizen of the United States shall

hold slaves as property in any other country or be interested therein.

Chile has made reparation in the case of the whale ship Good Return, seized

without sufficient cause upward of forty years ago. Though she had hitherto

denied her accountability, the denial was never acquiesced in by this

Government, and the justice of the claim has been so earnestly contended

for that it has been gratifying that she should have at last acknowledged

it.

The arbitrator in the case of the United States steamer Montijo, for the

seizure and detention of which the Government of the United States of

Colombia was held accountable, has decided in favor of the claim. This

decision has settled a question which had been pending for several years,

and which, while it continued open, might more or less disturb the good

understanding which it is desirable should be maintained between the two

Republics.

A reciprocity treaty with the King of the Hawaiian Islands was concluded

some months since. As it contains a stipulation that it shall not take

effect until Congress shall enact the proper legislation for that purpose,

copies of the instrument are herewith submitted, in order that, if such

should be the pleasure of Congress, the necessary legislation upon the

subject may be adopted.

In March last an arrangement was made, through Mr. Cushing, our minister in

Madrid, with the Spanish Government for the payment by the latter to the

United States of the sum of $80,000 in coin, for the purpose of the relief

of the families or persons of the ship's company and certain passengers of

the Virginius. This sum was to have been paid in three installments at two

months each. It is due to the Spanish Government that I should state that

the payments were fully and spontaneously anticipated by that Government,

and that the whole amount was paid within but a few days more than two

months from the date of the agreement, a copy of which is herewith

transmitted. In pursuance of the terms of the adjustment, I have directed

the distribution of the amount among the parties entitled thereto,

including the ship's company and such of the passengers as were American

citizens. Payments are made accordingly, on the application by the parties

entitled thereto.

The past year has furnished no evidence of an approaching termination of

the ruinous conflict which has been raging for seven years in the

neighboring island of Cuba. The same disregard of the laws of civilized

warfare and of the just demands of humanity which has heretofore called

forth expressions of condemnation from the nations of Christendom has

continued to blacken the sad scene. Desolation, ruin, and pillage are

pervading the rich fields of one of the most fertile and productive regions

of the earth, and the incendiary's torch, firing plantations and valuable

factories and buildings, is the agent marking the alternate advance or

retreat of contending parties.

The protracted continuance of this strife seriously affects the interests

of all commercial nations, but those of the United States more than others,

by reason of close proximity, its larger trade and intercourse with Cuba,

and the frequent and intimate personal and social relations which have

grown up between its citizens and those of the island. Moreover, the

property of our citizens in Cuba is large, and is rendered insecure and

depreciated in value and in capacity of production by the continuance of

the strife and the unnatural mode of its conduct. The same is true,

differing only in degree, with respect to the interests and people of other

nations; and the absence of any reasonable assurance of a near termination

of the conflict must of necessity soon compel the States thus suffering to

consider what the interests of their own people and their duty toward

themselves may demand.

I have hoped that Spain would be enabled to establish peace in her colony,

to afford security to the property and the interests of our citizens, and

allow legitimate scope to trade and commerce and the natural productions of

the island. Because of this hope, and from an extreme reluctance to

interfere in the most remote manner in the affairs of another and a

friendly nation, especially of one whose sympathy and friendship in the

struggling infancy of our own existence must ever be remembered with

gratitude, I have patiently and anxiously waited the progress of events.

Our own civil conflict is too recent for us not to consider the

difficulties which surround a government distracted by a dynastic rebellion

at home at the same time that it has to cope with a separate insurrection

in a distant colony. But whatever causes may have produced the situation

which so grievously affects our interests, it exists, with all its

attendant evils operating directly upon this country and its people. Thus

far all the efforts of Spain have proved abortive, and time has marked no

improvement in the situation. The armed bands of either side now occupy

nearly the same ground as in the past, with the difference, from time to

time, of more lives sacrificed, more property destroyed, and wider extents

of fertile and productive fields and more and more of valuable property

constantly wantonly sacrificed to the incendiary's torch.

In contests of this nature, where a considerable body of people who have

attempted to free themselves of the control of the superior government have

reached such point in occupation of territory, in power, and in general

organization as to constitute in fact a body politic; having a government

in substance as well as in name; possessed of the elements of stability and

equipped with the machinery for the administration of internal policy and

the execution of its laws; prepared and able to administer justice at home,

as well as in its dealings with other powers, it is within the province of

those other powers to recognize its existence as a new and independent

nation. In such cases other nations simply deal with an actually existing

condition of things, and recognize as one of the powers of the earth that

body politic which, possessing the necessary elements, has in fact become a

new power. In a word, the creation of a new state is a fact.

To establish the condition of things essential to the recognition of this

fact there must be a people occupying a known territory, united under some

known and defined form of government, acknowledged by those subject

thereto, in which the functions of government are administered by usual

methods, competent to mete out justice to citizens and strangers, to afford

remedies for public and for private wrongs, and able to assume the

correlative international obligations and capable of performing the

corresponding international duties resulting from its acquisition of the

rights of sovereignty. A power should exist complete in its organization,

ready to take and able to maintain its place among the nations of the

earth.

While conscious that the insurrection in Cuba has shown a strength and

endurance which make it at least doubtful whether it be in the power of

Spain to subdue it, it seems unquestionable that no such civil organization

exists which may be recognized as an independent government capable of

performing its international obligations and entitled to be treated as one

of the powers of the earth. A recognition under such circumstances would be

inconsistent with the facts, and would compel the power granting it soon to

support by force the government to which it had really given its only claim

of existence. In my judgment the United States should adhere to the policy

and the principles which have heretofore been its sure and safe guides in

like contests between revolted colonies and their mother country, and,

acting only upon the clearest evidence, should avoid any possibility of

suspicion or of imputation.

A recognition of the independence of Cuba being, in my opinion,

impracticable and indefensible, the question which next presents itself is

that of the recognition of belligerent rights in the parties to the

contest.

In a former message to Congress I had occasion to consider this question,

and reached the conclusion that the conflict in Cuba, dreadful and

devastating as were its incidents, did not rise to the fearful dignity of

war. Regarding it now, after this lapse of time, I am unable to see that

any notable success or any marked or real advance on the part of the

insurgents has essentially changed the character of the contest. It has

acquired greater age, but not greater or more formidable proportions. It is

possible that the acts of foreign powers, and even acts of Spain herself,

of this very nature, might be pointed to in defense of such recognition.

But now, as in its past history, the United States should carefully avoid

the false lights which might lead it into the mazes of doubtful law and of

questionable propriety, and adhere rigidly and sternly to the rule, which

has been its guide, of doing only that which is right and honest and of

good report. The question of according or of withholding rights of

belligerency must be judged in every case in view of the particular

attending facts. Unless justified by necessity, it is always, and justly,

regarded as an unfriendly act and a gratuitous demonstration of moral

support to the rebellion. It is necessary, and it is required, when the

interests and rights of another government or of its people are so far

affected by a pending civil conflict as to require a definition of its

relations to the parties thereto. But this conflict must be one which will

be recognized in the sense of international law as war. Belligerence, too,

is a fact. The mere existence of contending armed bodies and their

occasional conflicts do not constitute war in the sense referred to.

Applying to the existing condition of affairs in Cuba the tests recognized

by publicists and writers on international law, and which have been

observed by nations of dignity, honesty, and power when free from sensitive

or selfish and unworthy motives, I fail to find in the insurrection the

existence of such a substantial political organization, real, palpable, and

manifest to the world, having the forms and capable of the ordinary

functions of government toward its own people and to other states, with

courts for the administration of justice, with a local habitation,

possessing such organization of force, such material, such occupation of

territory, as to take the contest out of the category of a mere rebellious

insurrection or occasional skirmishes and place it on the terrible footing

of war, to which a recognition of belligerency would aim to elevate it. The

contest, moreover, is solely on land; the insurrection has not possessed

itself of a single seaport whence it may send forth its flag, nor has it

any means of communication with foreign powers except through the military

lines of its adversaries. No apprehension of any of those sudden and

difficult complications which a war upon the ocean is apt to precipitate

upon the vessels, both commercial and national, and upon the consular

officers of other powers calls for the definition of their relations to the

parties to the contest. Considered as a question of expediency, I regard

the accordance of belligerent rights still to be as unwise and premature as

I regard it to be, at present, indefensible as a measure of right. Such

recognition entails upon the country according the rights which flow from

it difficult and complicated duties, and requires the exaction from the

contending parties of the strict observance of their rights and

obligations; it confers the right of search upon the high seas by vessels

of both parties; it would subject the carrying of arms and munitions of

war, which now may be transported freely and without interruption in the

vessels of the United States, to detention and to possible seizure; it

would give rise to countless vexatious questions, would release the parent

Government from responsibility for acts done by the insurgents, and would

invest Spain with the right to exercise the supervision recognized by our

treaty of 1795 over our commerce on the high seas, a very large part of

which, in its traffic between the Atlantic and the Gulf States and between

all of them and the States on the Pacific, passes through the waters which

wash the shores of Cuba. The exercise of this supervision could scarce fail

to lead, if not to abuses, certainly to collisions perilous to the peaceful

relations of the two States. There can be little doubt to what result such

supervision would before long draw this nation. It would be unworthy of the

United States to inaugurate the possibilities of such result by measures of

questionable right or expediency or by any indirection. Apart from any

question of theoretical right, I am satisfied that while the accordance of

belligerent rights to the insurgents in Cuba might give them a hope and an

inducement to protract the struggle, it would be but a delusive hope, and

would not remove the evils which this Government and its people are

experiencing, but would draw the United States into complications which it

has waited long and already suffered much to avoid. The recognition of

independence or of belligerency being thus, in my judgment, equally

inadmissible, it remains to consider what course shall be adopted should

the conflict not soon be brought to an end by acts of the parties

themselves, and should the evils which result therefrom, affecting all

nations, and particularly the United States, continue. In such event I am

of opinion that other nations will be compelled to assume the

responsibility which devolves upon them, and to seriously consider the only

remaining measures possible--mediation and intervention, Owing, perhaps, to

the large expanse of water separating the island from the peninsula, the

want of harmony and of personal sympathy between the inhabitants of the

colony and those sent thither to rule them, and want of adaptation of the

ancient colonial system of Europe to the present times and to the ideas

which the events of the past century have developed, the contending parties

appear to have within themselves no depository of common confidence to

suggest wisdom when passion and excitement have their sway and to assume

the part of peacemaker. In this view in the earlier days of the contest the

good offices of the United States as a mediator were tendered in good

faith, without any selfish purpose, in the interest of humanity and in

sincere friendship for both parties, but were at the time declined by

Spain, with the declaration, nevertheless, that at a future time they would

be indispensable. No intimation has been received that in the opinion of

Spain that time has been reached. And yet the strife continues, with all

its dread horrors and all its injuries to the interests of the United

States and of other nations. Each party seems quite capable of working

great injury and damage to the other, as well as to all the relations and

interests dependent on the existence of peace in the island; but they seem

incapable of reaching any adjustment, and both have thus far failed of

achieving any success whereby one party shall possess and control the

island to the exclusion of the other. Under these circumstances the agency

of others, either by mediation or by intervention, seems to be the only

alternative which must, sooner or later, be invoked for the termination of

the strife. At the same time, while thus impressed I do not at this time

recommend the adoption of any measure of intervention. I shall be ready at

all times, and as the equal friend of both parties, to respond to a

suggestion that the good offices of the United States will be acceptable to

aid in bringing about a peace honorable to both. It is due to Spain, so far

as this Government is concerned, that the agency of a third power, to which

I have adverted, shall be adopted only as a last expedient. Had it been the

desire of the United States to interfere in the affairs of Cuba, repeated

opportunities for so doing have been presented within the last few years;

but we have remained passive, and have performed our whole duty and all

international obligations to Spain with friendship, fairness, and fidelity,

and with a spirit of patience and forbearance which negatives every

possible suggestion of desire to interfere or to add to the difficulties

with which she has been surrounded.

The Government of Spain has recently submitted to our minister at Madrid

certain proposals which it is hoped may be found to be the basis, if not

the actual submission, of terms to meet the requirements of the particular

griefs of which this Government has felt itself entitled to complain. These

proposals have not yet reached me in their full text. On their arrival they

will be taken into careful examination, and may, I hope, lead to a

satisfactory adjustment of the questions to which they refer and remove the

possibility of future occurrences such as have given rise to our just

complaints.

It is understood also that renewed efforts are being made to introduce

reforms in the internal administration of the island. Persuaded, however,

that a proper regard for the interests of the United States and of its

citizens entitles it to relief from the strain to which it has been

subjected by the difficulties of the questions and the wrongs and losses

which arise from the contest in Cuba, and that the interests of humanity

itself demand the cessation of the strife before the whole island shall be

laid waste and larger sacrifices of life be made, I shall feel it my duty,

should my hopes of a satisfactory adjustment and of the early restoration

of peace and the removal of future causes of complaint be, unhappily,

disappointed, to make a further communication to Congress at some period

not far remote, and during the present session, recommending what may then

seem to me to be necessary.

The free zone, so called, several years since established by the Mexican

Government in certain of the States of that Republic adjacent to our

frontier, remains in full operation. It has always been materially

injurious to honest traffic, for it operates as an incentive to traders in

Mexico to supply without customs charges the wants of inhabitants on this

side of the line, and prevents the same wants from being supplied by

merchants of the United States, thereby to a considerable extent defrauding

our revenue and checking honest commercial enterprise.

Depredations by armed bands from Mexico on the people of Texas near the

frontier continue. Though the main object of these incursions is robbery,

they frequently result in the murder of unarmed and peaceably disposed

persons, and in some instances even the United States post-offices and mail

communications have been attacked. Renewed remonstrances upon this subject

have been addressed to the Mexican Government, but without much apparent

effect. The military force of this Government disposable for service in

that quarter is quite inadequate to effectually guard the line, even at

those points where the incursions are usually made. An experiment of an

armed vessel on the Rio Grande for that purpose is on trial, and it is

hoped that, if not thwarted by the shallowness of the river and other

natural obstacles, it may materially contribute to the protection of the

herdsmen of Texas.

The proceedings of the joint commission under the convention between the

United States and Mexico of the 4th of July, 1868, on the subject of

claims, will soon be brought to a close. The result of those proceedings

will then be communicated to Congress.

I am happy to announce that the Government of Venezuela has, upon further

consideration, practically abandoned its objection to pay to the United

States that share of its revenue which some years since it allotted toward

the extinguishment of the claims of foreigners generally. In thus

reconsidering its determination that Government has shown a just sense of

self-respect which can not fail to reflect credit upon it in the eyes of

all disinterested persons elsewhere. It is to be regretted, however, that

its payments on account of claims of citizens of the United States are

still so meager in amount, and that the stipulations of the treaty in

regard to the sums to be paid and the periods when those payments were to

take place should have been so signally disregarded.

Since my last annual message the exchange has been made of the ratification

of a treaty of commerce and navigation with Belgium, and of conventions

with the Mexican Republic for the further extension of the joint commission

respecting claims; with the Hawaiian Islands for commercial reciprocity,

and with the Ottoman Empire for extradition; all of which have been duly

proclaimed.

The Court of Commissioners of Alabama Claims has prosecuted its important

duties very assiduously and very satisfactorily. It convened and was

organized on the 22d day of July, 1874, and by the terms of the act under

which it was created was to exist for one year from that date. The act

provided, however, that should it be found impracticable to complete the

work of the court before the expiration of the year the President might by

proclamation extend the time of its duration to a period not more than six

months beyond the expiration of the one year.

Having received satisfactory evidence that it would be impracticable to

complete the work within the time originally fixed, I issued a proclamation

(a copy of which is presented herewith) extending the time of duration of

the court for a period of six months from and after the 22d day of July

last.

A report made through the clerk of the court (communicated herewith) shows

the condition of the calendar on the 1st of November last and the large

amount of work which has been accomplished. One thousand three hundred and

eighty-two claims have been presented, of which 682 had been disposed of at

the date of the report. I am informed that 170 cases were decided during

the month of November. Arguments are being made and decisions given in the

remaining cases with all the dispatch consistent with the proper

consideration of the questions submitted. Many of these claims are in

behalf of mariners, or depend on the evidence of mariners, whose absence

has delayed the taking or the return of the necessary evidence.

It is represented to me that it will be impracticable for the court to

finally dispose of all the cases before it within the present limit of its

duration. Justice to the parties claimant, who have been at large expense

in preparing their claims and obtaining the evidence in their support,

suggests a short extension, to enable the court to dispose of all of the

claims which have been presented.

I recommend the legislation which may be deemed proper to enable the court

to complete the work before it.

I recommend that some suitable provision be made, by the creation of a

special court or by conferring the necessary jurisdiction upon some

appropriate tribunal, for the consideration and determination of the claims

of aliens against the Government of the United States which have arisen

within some reasonable limitation of time, or which may hereafter arise,

excluding all claims barred by treaty provisions or otherwise. It has been

found impossible to give proper consideration to these claims by the

Executive Departments of the Government. Such a tribunal would afford an

opportunity to aliens other than British subjects to present their claims

on account of acts committed against their persons or property during the

rebellion, as also to those subjects of Great Britain whose claims, having

arisen subsequent to the 9th day of April, 1865, could not be presented to

the late commission organized pursuant to the provisions of the treaty of

Washington.

The electric telegraph has become an essential and indispensable agent in

the transmission of business and social messages. Its operation on land,

and within the limit of particular states, is necessarily under the control

of the jurisdiction within which it operates. The lines on the high seas,

however, are not subject to the particular control of any one government.

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. At that time there was a telegraphic connection between the United

States and the continent of Europe (through the possessions of Great

Britain at either end of the line), under the control of an association

which had, at large outlay of capital and at great risk, demonstrated the

practicability of maintaining such means of communication. The cost of

correspondence by this agency was great, possibly not too large at the time

for a proper remuneration for so hazardous and so costly an enterprise. It

was, however, a heavy charge upon a means of communication which the

progress in the social and commercial intercourse of the world found to be

a necessity, and the obtaining of this French concession showed that other

capital than that already invested was ready to enter into competition,

with assurance of adequate return for their outlay. Impressed with the

conviction that the interests, not only of the people of the United States,

but of the world at large, demanded, or would demand, the multiplication of

such means of communication between separated continents, I was desirous

that the proposed connection should be made; but certain provisions of this

concession were deemed by me to be objectionable, particularly one which

gave for a long term of years the exclusive right of telegraphic

communication by submarine cable between the shores of France and the

United States. I could not concede that any power should claim the right to

land a cable on the shores of the United States and at the same time deny

to the United States, or to its citizens or grantees, an equal fight to

land a cable on its shores. The right to control the conditions for the

laying of a cable within the jurisdictional waters of the United States, to

connect our shores with those of any foreign state, pertains exclusively to

the Government of the United States, under such limitations and conditions

as Congress may impose. In the absence of legislation by Congress I was

unwilling, on the one hand, to yield to a foreign state the right to say

that its grantees might land on our shores while it denied a similar right

to our people to land on its shores, and, on the other hand, I was

reluctant to deny to the great interests of the world and of civilization

the facilities of such communication as were proposed. I therefore withheld

any resistance to the landing of the cable on condition that the offensive

monopoly feature of the concession be abandoned, and that the right of any

cable which may be established by authority of this Government to land upon

French territory and to connect with French land lines and enjoy all the

necessary facilities or privileges incident to the use thereof upon as

favorable terms as any other company be conceded. As the result thereof the

company in question renounced the exclusive privilege, and the

representative of France was informed that, understanding this

relinquishment to be construed as granting the entire reciprocity and equal

facilities which had been demanded, the opposition to the landing of the

cable was withdrawn. The cable, under this French concession, was landed in

the month of July, 1869, and has been an efficient and valuable agent of

communication between this country and the other continent. It soon passed

under the control, however, of those who had the management of the cable

connecting Great Britain with this continent, and thus whatever benefit to

the public might have ensued from competition between the two lines was

lost, leaving only the greater facilities of an additional line and the

additional security in case of accident to one of them. But these increased

facilities and this additional security, together with the control of the

combined capital of the two companies, gave also greater power to prevent

the future construction of other lines and to limit the control of

telegraphic communication between the two continents to those possessing

the lines already laid. Within a few months past a cable has been laid,

known as the United States Direct Cable Company, connecting the United

States directly with Great Britain. As soon as this cable was reported to

be laid and in working order the rates of the then existing consolidated

companies were greatly reduced. Soon, however, a break was announced in

this new cable, and immediately the rates of the other line, which had been

reduced, were again raised. This cable being now repaired, the rates appear

not to be reduced by either line from those formerly charged by the

consolidated companies.

There is reason to believe that large amounts of capital, both at home and

abroad, are ready to seek profitable investment in the advancement of this

useful and most civilizing means of intercourse and correspondence. They

await, however, the assurance of the means and conditions on which they may

safely be made tributary to the general good.

As these cable telegraph lines connect separate states, there are questions

as to their organization and control which probably can be best, if not

solely, settled by conventions between the respective states. In the

absence, however, of international conventions on the subject, municipal

legislation may secure many points which appear to me important, if not

indispensable for the protection of the public against the extortions which

may result from a monopoly of the right of operating cable telegrams or

from a combination between several lines:

I. No line should be allowed to land on the shores of the United States

under the concession from another power which does not admit the right of

any other line or lines, formed in the United States, to land and freely

connect with and operate through its land lines.

II. No line should be allowed to land on the shores of the United States

which is not, by treaty stipulation with the government from whose shores

it proceeds, or by prohibition in its charter, or otherwise to the

satisfaction of this Government, prohibited from consolidating or

amalgamating with any other cable telegraph line, or combining therewith

for the purpose of regulating and maintaining the cost of telegraphing.

III. All lines should be bound to give precedence in the transmission of

the official messages of the governments of the two countries between which

it may be laid.

IV. A power should be reserved to the two governments, either conjointly or

to each, as regards the messages dispatched from its shores, to fix a limit

to the charges to be demanded for the transmission of messages.

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