New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-26

High Official Says
Britain Approves
Control of Gables
Asserts US. Plans No Mer...
orFinanciaI Sbake-Up:Fv
plains Postwar Busins..
NecesSitaied Burleson A.,

A government officer close f. D..
master General Burleson declared ~
terday that before the United g.. 's'-
government decided 30 take over ' ..
troll Of the cable systems and W. W.
them under the Postmaster c.~ I've
the plan was submitted for ann
to the British government and ~,
the British authorities gave their o
sent only after they had been a,sn-,
that Mr.. Burleson would rot attep,n. 49,. :.
exercise control over the transm,ss;.s
of cable messages to and from c,..,
Britain. They further demanded ~
received an assurance that the Ar.s:
can control would be only tennor..
as an after-the-war measure. and ts..
it was not intended to build W <,
government cable system to comma.
with the British-owned cables
The officer added that the nevos,
tons were carried on through =.
British Embassy at Washington T..
several weeks before Mr. Burleso.
seized tho cables, and that the re,ul.
was "cmincntly satisfactory to bo,,
the British and American autbOrtis.
"The crippled condition of some =,
the cables, due TO the inability 10 c,,,.
on repair work during the war. mad.
necessary to exercise some strict co-
liol over 1he wires if business betwesr
this country and Europe was IN !.
handled c@peditiousiv," he said 1Ws
realized that food Of business r.l.
tive TO reconstruction work would ba,.
to be provided for. The Cosmerr;.l
Cable Company has live cables. Fam
OF tho eight cables controlled BY The
western Union were, and still are on.
Of commission. 1t was evident tbes
that the business over these lines had
to be proportional, and the only wa
to do It was by government control.
Merely Executive Control
The control. By the way. is merev
executive. Il is not intended to rne,rs
che company into the other or to shaSs
up the financial management of either
COMPANY '"''
When tae Plan was proposed 70 ths
British government naturally il wantnd
TO know how British interests woul5
be affected. The whole plan was snb.
mitted through the British Embassv
and assurances were given that tla
British ends of the cables would No,
be lnterfered with The British gor.
eminent then gave its approval on cer.
tain conditions. One Of these conf.
lions was that government messages h
sent as routed, and that there be no
interference with censorship arrange.
ments. Another condition. was that the
PLAZA involved no question Of direct or
indirect control Of one company nv the
other by d person acting on behalf o.
the United States government. The
latter stimulation means simply VIVA.
it says-tfat if the cable controller in
this country happens TO be an Official
Of one Of the companies he shall not
permit his company to control the
other company"
William J. Deegan, secretary of the
Mackay companies, which control the
Commercial cables, Yesterday repeated
his charge that the Western Union is
attempting TO control the Commercis.
He pointed to the fact that Newconh
Carlton, president of the Western III
ION. also is Federal Director Of Gables,
and insisted that as an official Of the
Western Union he necessarily, as Fed.
oral director, would exercise control
over the Commercial, which. said M
Dcegan, would be a violation of the
promise given 10 the British govern.
ment.
VIII Ignore Burleson
ct was this very condition which
prompted our London Office to cable Us
that we must ignore any instructions
from Mr.. Burleson or his represents
tivcs, in so far as the operation Of the
cables landing in Great Britain IS con
ccrned,' said Mr.. Deegan. we have
agreed to assist ia the handling o.
messages from Great Britain, because
four Of tho Western Unions cables are
cut Of repair; but we certainly shall
obey the Instructions from our Londol
office 10 ignore Mr. Burlesons contro.
ever here.
Mr.. Carlton yesterday declined to dis.
cuss the situation. except to say that
Mr. Burles0n's control Of tho cables
was perfectly UNDERSTOOD By Crest
Hr-tain and that 10 would exercls,,
control over both companies, as ordered
By the Postmaster General