New-York tribune., 1920-12-16
Western Union
To Defy Colby;
Connect Cable
Carlton to Link Wires in
Cuba, After Warships
Prevent Move at Miami:
Charges Monopoly Plot
International Fight Is On
Elihu Root Jr. Says Govern
ment Backs All-America
Company Against British


II. Carlton, president of the Western
Union Telegraph Company, declared
to-day that his company would circum-
vent the plans of the State Depart
nent to preserve a United States
South American cable monopoly in fa-
vor Of another company and would
connect its cable from Barbados with
the United States by way OF Cuba, de-
spite the opposition Of the State De-.
partment. He made his assertion be-
fore a subcommittee of the Senate In
terstate Commerce Committee, which
is holding hearings on the Kellogg bill,
which would give the State Depart
ment control of the landing Of cables
in the United States. Senator Kellogg
is chairman of the subcommittee.
Mr.. Carlton said his company was
going ahead with its arrangements for
making the connection desp pite the re-
suits of what he called the "battle of
Miami" when naval forces preve nted
the landing Of the cable at Miami.
At to-day's session there was gen.
eral airing of the international cable
situation, other witnesses besides Mr..
Carlton being Acting Secretary of
State Davis, Walter S. Rogers, Amer
lean delegate to the International Com
munications Conference; Fl'hu Root
ir. counsel for the All-Amer rica Cables.
Inc. and John Il. Goidhammer, of tho
Commercial Cable Company OF New
York.
Rivals Fight for Business
Details of TIE fight between the Brit
ish Western Telegraph Company and
the Western Union and A.l-America
Cables Company, Inc, for South Amer
lean business were given
Mr.. Rogers told of tentative agree
lnent reached at the communlcatlonss
conference that no censorship should
be imposed upon messages merely pass
ing through re ay points.
Mr.. Davis indorsed legislation to give
the President, who would act in con-
junction with the State Department,
full power over cable landings He
said the United States had right to
direct connections with Germany, the
same as before the war. He went over
the history of the former German
cables and said that the nations that
obtained control of them contended
that they were prizes OF war, view
controverted b. the United States. At
the communicable conference, Mr..
Davis said, an agreement was reached
Unat Germany should cede the cables
to the Allied Powers. offsetting their
value against the reparation to be ex
acted, and their future status left for
later determination.
Says McAdoo Suggested Move
Mr.. Carton said that in 1915 Secre-
tary McAdoo urged the Western Union
!,
America 1t was in an effort to dc this
that the Western Union made an agree
.nent with the British Western COM
pany with relation to business in South
America, and the o an was entered into
to lay a cable from Barbados to Miami,
Mr. Carlton said.
According to Mr.. Carlton. the State
Department was notified Of the inten
ton to lay the cable at Miami. and four
months later. no reply having been re-
ceived, the attempt was made. This
w:s pgev nted by the appearance Of
United States naval vessels.
This was the first definite assur-
ance that the government, which had
initiated the cable, was now opposed
to it" Mr.. Carlton said.
Insisting that the need for the cable
was urgent, Mr.. Carlton mirimized the
argumont of the State Depa rtme MT that
BY the Miami cable pretc rental posi-
ton held by the British company would
be perpe .uated He opposed policy
Of duplication of cable or te'egra ph
facilities He held the Interstate Com
merce Commission. not the President
or State Department. should control
cable landings.
Root Supports Kellogg Bill
Mr.. Root supported the Kellogg bill
and presented from the standpoint 0
\ his company the controversy with tt
and the Western Union with relation
20 South American business. Opposln,
the landing Of the proposed cable t.
Miami, Mr.. Root put into the record
copy Of memorandum laid before tn
international Communications Confer
ence entitled "A memorandum on TIL
British cable monopoly in Brazil an
the proposed landing at Miami, Fla, o
a cable by the Western Union Tele
graph Company to connect the BIRTHS
Brazilian system with the Unite
States"
The memorandum supported tn
proposition that the British Wester
Telegraph Company should not be pei
rnitted either directly or through a
American owned line to connect wit
the United States until it has surrer
dered the cable monopoly in Brazi
Further, it upheld the position of tn
State Department. in the Miami affair
5ir. Root went into detail as to tn
rivalries of the British and Al
America Gables Company in Lati
America. In brief, 1t appeared tha
the British company. strongly backe
By It's government. had entered Sout
America from the Eas. and was work
ing over to the west coast. while tn
American company from the west coas
had worked to the east coast. Thu
each was enterin territory Of tn
othef.
Aided by Governments
The British government, accordin
TO Mr Root. was aiding the Britis
company In efforts to monopol!ze Sout
A"eracan business. while the Stat
Drfxrtment actively assisted the Al
America Cables Company. Lately, tn
american company, going round Vi
the west coast and thence to Buenc
Ayres. had entered Santos and Rio d
Juneiro Brazil
As Ar. Root described IL. Il was
counter attack by the F-it sh compar
70 TIE attempts Of the American con
pany to get into Brszil that led 10 ti
agreement OF the British COMPANY an
the Western Union. Under this agre,
rnent the West.rn Union was to me,
tne British company st psrbadoes. an
y vas In pursuance Of the agrecrne e,
tnat the Western Union had sought
az the line from fskrbadocs u Miam
Before the Barbadoes- lani ne W,
attempted. however, the American con