ly 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.

I present this subject to th