Every evening, Wilmington daily commercial., 1920-11-16
U.s.. PAY IN ADvANC {,
WESTERN UNION RULES
Washington Says Demand for Pre-
payment of Gables is Retaliatory
Step Against Government.
py Associated Press 10 Every Evening

ny Associated Press 10 Every Evening
Washington. Nov l6 The long stand
ing controversy between the State De
partment md the Western Union Tele-
graph Company has reached the stage Of
an open break. the company refusing 10
handle any further cable messages for the
department except upon prepayment OF
tolla
The company's order was issued on Mo-
vember 10, il was said today, at the de
partment and ostcnalbIy was 10 apply to
NIL departments of the government. II
was understood. however, TINT messages
sent by other departments had been
excepted informally from the ruling.
The Western Union Company is stated
10 have based it's action on the delay by
the department in making payments on
cable messages previously handled Dc
partinent officials asserted today. however,
that IL was IN their opinion, a step IN re-
taliation for the failure 0f the department
to permit the landing Of cable AT Miami,
Fla connecting NJ Barhndoes with a
British cable from South America
Several months ago the Western Union
applied for nm executive permit 10 land
the cable nj Miami. but the State De
partment wns said to have demanded
copy Of the contract between the West
ern Union and the British company own
ing the connecting South American cable
line Tho copy was not forthcoming ac-
rordinR to State Department officers and
the permit was withheld
Later British rablc ship which had
been chartered to lay the cable was order
ed 10 Miami AZ the suggestion u the
State Department the Navy Department
L l. -.
keep the British ship outside the three
mile limit 1hc British embassy also
took hand IN the matter ordering the
captain q The vessel not 10 attempt 70
land the cable
Some time after tha William 6 Nc
Adno. former secretary of the treasury,
becafne counsel for the Western tnion
Company and department officers say
lle delivered copy Of the contract - the
dcpartinent II has been explained pre-
ylousy that the department before issuing
the permit desired to determine whether
The contract between the American and
British companies would strengthen the
/ cable monopoly helH hy the British com
I pnny on the Last Coast Of South Amer
/ Ica
The permit n land tho cable still was
/ withheld. IL being explained officially that
| action was beng deferred until after the
/ meeting ~ tho international commune
/ cations conference now in session here
and which IS considering the whole quea-
i tiun of world communication
report reached the government last
week that the Western mon vas +
make another attempt to land the cabIf
/ and Secretary Daniels ordered the com
/ rnandnnt of the naval station AZ Key West
/ - take the necessary steps 70 prevent Il
i The Weston F-nion Company denied Al
the time that il intended - land the line
II vas about this time that the order re
fusing government cable messages except
upon payment 81 ecash in advance vas
issued
In stating that It's order regarding
cable messages was issued because IF the
failure 81 the State Department - pay fol
messages. the Western Union Company
was said to have pointed ont that the De
partment had not made anv payment sInc'
August, 1919 Department officers ex
planned today that payment had beer
withheld because the company began Z
withhold the government rebate Of 30 pc
cent on cable messages
The Western mon vas SAID 20 have ex
planned that because of war tine conges
ton the International Clearing House Il
London was far behind in the payment 8
tolls to which the company was entities
for government messages and that no re
bate 10 the government could be mad
until tins balance had been paid to IA
company
Questions now before the Internanona
communications Conference also ar
said bv officials Is be q part of the rov
between the Western mon and the Stat
Department Negotiations begun by IN
American government to obtain one oi IN
former German transatlantic cables no1
held hv the British and thus give dlreC
cable communication between the Unite
States and Germany are SAID 70 hav
reached a successful termination and [
have depended for mai fTui1ion only apo
the Willingness # an American cabl
company to exchange one of It's lines "a
the former German line which extends froT
Halifax TO Penzance
1t is understood that the State Depart
ment was negotiating with the Nester
Union for the exchange OF cables, but thes
negotiations are said to have been broker
of as a result of other differences betwee
the department and the company