The Barre daily times. (Barre, Vt.) 1897-1959, 1920-11-16
OFFICIALS SAY
MOVE is ACT OF
RETALIATION
For the Failure of the State
Department to Permit
the Landing of a Cable
at Miami, Florida-Gov-
ernment Sent Warships
to Enforce It's Stand.

Washington, D. c., Nov. l6 (By the
Associated Press The ng-standing
controversy between the state depart
ment- and the Western Union Tele-
graph company has reached the stage
of an open break, the company refus-
ing to handle any further cable mes
sages for the department except upon
prepayment of tolls.
The companys order was issued on
Nov 10. it was said to-day at the de-
pgrtment, and ostensibly was to apply
to all departments of the government.
1t was understood however, that mes
sages sent by other departments had
been excepted informally from the rul-
ing
The Western Union company is
stated to have based its action on
the delay by the department in max
ing payments on cable messages pre-
viously handled. Department officials
asserted to-day, however, that it was
in their opinion a step in retaliation
for the failure of the department to
permit the landing of cable at Miami,
Fla. connecting at Barbados with a
British cable from South America.
Several months ago Thea Western
Union applied for an executive per-
NIT to land the cable at Miami, but
the state department was said to -haxe.
demanded copy of the contract be-
tween the Western Union and the
British company owning the connect
ing South AmericaM cable line. The
copy was not forthcoming, according
to state department officers, and the
permit was withheld.
Later a British cable ship which had
been chartered to lay the cable, was
ordered to Miami. At the suggestion
of the state department, the navy de-
partment sent destroyers to the Flori-
da port to keep the British ship out
side the three mile limit. The British
embassy also took hand in the mat
ter, ordering the captain of the ves-
sci not to attempt to land the cable.
Some time after this William G.
McAdoo became counsel for the West
ern Union company and officials say
he delivered a copy of the contract TO
the department. 1t had been explained
previously that the department before
issuing the permit desired to deter
mine whether the contract between the
American and British companies would
strengthen the hold of the British COM
pany in South America.
The permit to land the cable still
was withheld. 1t being explained oiIi
cially that action was being deferred
until after the meeting of the inter
national communication conference
now in session here and which is con
sidering the whole question of world
communications.
A report reached the government
last week that the Western Union was
to make another attempt to land the
cable and Secretary Daniels ordered
the commsndant of the naval station
at Kew West to take the necessary
steps TO prevent il. The Western I'm
ion company denied at the time that
IL intended to land the line. II was
about this time that the order re-
fusing government cable messages ex-
cept upon payment of cash in advance
was issued.
In stating that its order regarding
cable messages was issued because of
the failure OF the state department 70
pay for messages. the Western Union
company was said to have pointed out
that the department had not made any
payment since August, 1919. Depart
ment officers explained to-day that
payment had been withheld because
the company began TO withhold the
government rebate of so per cent on
cable messages.
The Western Union was said TO have
explained that because Of wartime
\ congestion the international clearing
house in London was far behind in the
payment of tolls to which the company
was entitled for government messages
and that no rebate to the government
could he made until this balance had
hecu Maid bv the clearing house.