The Washington herald., 1920-11-17
Western Union Demand
Cash IN Advance From
Government. *
MAY BREAK CONTRACT
Company Claims Nation Has
Arbitrary Policy in
Paying Bills.

Refusal Of the Western Union 20
give to the United States the same
preferential rate that--ft grants 20
other foreign governments since this
government interfered with the
landing of a cable from South
America on the Florida coast has
brought about q situation between
the telegraph company and the
State Department whereby the wes-
tern Union is demanding that the
government pay cash In advance for
cables received from abroad
The position Of the state De-
partment is. it was learned yester-
day. that mot only IA the western
Union refusing to give TO the
United States a rate granted 10 al
other governments for their ofbcial
business. but IL is acting In viola
tion of this contract which ft has
with the government
Qsetes Point .t I.sse.
ofhcials Of the State Department
refused yesterday to say that ft was
the refusal Of landing rights that
caused the break. but it is known
that since such permission was re-
fused and war ships were sent 20
see that the connection was not
made. the Western Union Increased
its efforts to deprive the govern
ment Of its contractural rights. The
cable from South America was not
an American cable. but British
owned. the Western Union entering
into the deal in the construction
of the link from Bermuda to Florida
The exact point at issue. ofhciais
4 said. was that the Western Union
was refusing to recognize the right
Of this government TO a refund on
business which originates on us
cables II is customary for our.
diplomatic representatives abroad 10
efse8 TIE fcfi r~<< n rslx x-ndef
ex1eting confrzcts that the Western
tapyien bias with the various eoyeru-'
ments business is, supposed 70 be
carried over the cables at half rates
Since the altercstIon a. to the
placing of the Bermuda cable on
American soil the Western Union
has advanced the contention that
this government is not entitied TO
the 50 per cent refund for the busi-
ness not filed originally on IT'S
! cables.
q. Denasds Cash In Advz.ee-
The resultant discussion has
finally reached the point where the
4 Western Union has made a demand
that cash In advance be paid by the
State Department for messages from
! its representatives abroad
One of the arguments advanced
] by the Western UnioH-which Of late
has been represented in legal matters
! by William G. McAdoo. the Presi-
dents son-in-law. is that payments
made hy the International Clearing
House In London, which settles for
much OF the government business.
have been too slow TO enable the
company to extend further credit
| State Department oficisls said
that the United States was not a
never paid its bills in this way.
Company I.sses st.s~.e.t.
NEW YORK, Nov. ls.-Newcornb
Carlton. president Of the Western
Union. today issued the following
statement regarding the companyrs
refusal TO transmit State Depart
ment cables unless prepaid.
The dispute with the State De-
partment over the payment OF cables
is OF long standing. The wetsern
j Union Company has been forced 70
compel that department TO prepay
tolls on cable message because Of
the arbitrary policy adopted by the
department In dealing with the COM
pany's bills.
To the company there seems TO
be no reason why the business fair
ness and justice that prevail in COM
mercial life should not prevail in
the State Department. II is not the
company's intention that the State
Department shall arbitrarily decide
what II shall pay and when Il shall
u pay for the use Of the compsnys
u facilities.