New-York tribune., 1920-11-18
u. S. May Bar
| All W estern
! Union Cables
State Department Hints
/ Government Is Consider
| ing Withdrawal of Per-
| mits Because of Dispute
ID Discrimination Is Charged
Asserted America Will Not
Pay Twice the Rate for
Messages Asked of Britain

! Fron Thc Trtn,ne's Washington Bureau
/: WASHINGTON, Nov. 17--The State
Department to-day issued statement
Regarding its differences with the West
! ern Union Telegraph Company which
$hinted that the government is consid-
/ sring TIE question of Withdrawing the
Handing permits under which the COM
pany operates its cables.
/ The .spute was brought to head
the announcement of the Western
Union company that it would not han
1 die government cable messages except
Upon prepayment OF charges or carry
/ messages originating outside of the
United States at reduced government
rates.
ut has been the uniform policy of
She government to allow the landing
of cables only on condition that the
government of the United States shall
be entitled to exercise md to enjoy the
same privileges with regard to the con-
troll and use of such lines as are exer-
cised and enjoyed by foreign govern
ment reads. 1t continues:
Discrimination Charged
"Obviously the United States could
not be expected to allow the Western
Union company, an American corpora
tion, to charge for its messages twice
the rate charged, for instance, the
2~,x teh IN
requirements that the ordinary prac-
tlce of business with respect to per- obi
cal settlement of accounts, which is
the only practical way for the govern"
ment to settle accounts of the charac-
ter in question. shall be set aside III
dealings with our government"
The statement takes up the history
of the dispute regarding payment on
cable messages. 1t says that the diff
ferences arose over the lnsistence by
the department that it be accorded
government rates, which is considered
itself entitled to.
At the last session Of Congress the
State Department had introduced bill
providing for dealing with the unau-
thorized landing of cables and for in
junction against their operation where
it was shown the companies were not
complying with the terms of the land
ing permits. The bill, however, never
went further than committee.
Regulated by the President
In regard to this, however. the state
ment says -.
.'The legal principlesT controlling the
landing and regulation OF cables IN the
United States are we'll established. In
the absence Of Congressional leglsia-
,tion these matters are regulated by
the Executive by virtue Of his author
sity with respect to the conduct of re-
latons with foreign countries. The
Executive may prevent the landing OF
a cable or permit it on conditions
which will protect the interests of the
United States; and if q landing has
been made without the consent of the
government the operation of the line
may be prevented"
The statement adds:
"The department has in a concilla-
tory spiri. made clear It's willingness
to make 1ompt payment of any funds
due to the company, on receipt Of as
surances as to a reasonably prompt
payment of the funds due by the. com
pany to the department; and it has
similarly signifed its readiness to
render all possible assistance and make
all proper concessions with a view Of
facilitating the adjustment of accounts
relating to refunds due to the depart
ment and Of minimizing the expense
incident thereto"