Evening star., 1920-11-16
TOLLS ON
STATE DEPARTMENT
CABLES ARE ASKED
Controversy With Western
Union Company Reaches
Open Break.
RETALIATORY MEASURE
ALLEGED BY OFFICIALS
Believe Step Is Connected With Be-
fusal to Permit Miami-South
American Line.
BY the Associated Press.

bs tbe Associated Press
The long standing controversy b.
tween the State Department and the
Western Union Telegraph Company has
reached the stage Of an open break,
the company refusing to handle any
further cable messages for the depart
ment except upon prepayment OF tolls
The company's order was issued on
November 10. it was said today at the
department. and ostensibly was to apply
to all departments of the government
sages sent by other departments had
been expected informally from the
ruling.
Retaliation Suggested.
The Western Union Company is
stated to have based its action on the
delay by the department In making
payments on cable messages previously
handled. Department officials asserted
today, however, that it was in their
opinion step in retaliation for the fail
ure of the department to permit the
landing of cable at Miami. Fla, con-
Meeting at Barbados with British
cable from South America
Several months ago the Western
Union applied for an executive permit to
land .the cable, but the State Depart.
ment was said to have demanded q
copy of the contract between the
Western Union and the British COM
pany owning the connecting Sooth
American cable line. The copy was not
forthcoming according to State De-
partment officers, and the permit was
withheld.
Later British cable ship which had
been chartered to lay the cable was
ordered to Miami. At the suggestion
of the State Department. the Navy
Department sent destroyers to the
Florida port to keep the British ship
outside the three-mile limit > The
British embassy also took a hand Ia
the matter, ordering the captain Of
the vessel not to attempt 10 land the
cable.
Delivered Copy Of Contract.
Some time after this. William G. Nc
Adoo. former Secretary of the Treas
ury, became counsel for the Western
Union company and department Of
fcers say he delivered a copy Of the
contract to the department 1t had
been explained previously that the
to the
tract between the American and Brit
] ish companies would strengthen the
| cable monopoly held BY the British
company in South America.
The permit to land the cable still
was withheld. it being explained om-
cially that action was being deferred
until after the meeting OF the inter
national communications 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 or
dered the commandant OF the naval
station at Key West to take the nec-
essary steps to prevent it. The West
ern Union Company denied at the time
that it intended to land the line. 1t
was about this time that the order
refusing government cable messages
except upon payment Oh caSn In advance
was issued.
In stating that it's order regarding
cable messages was issued because
of the failure of the State Depart
ment to pay for messages. the West
ern Union Company was said to have
pointed out that the department had
not made any payment since August,
1919. Department officers explained
today that payment had been with
held 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
the payment of tolls to which the
company was entitled for govern
ment messages and that no rebate
to the government could be made
until this balance had been paid by
the clearing house at London
Questions now before the interna-
tional communications conference also
are said by officials to be part of the
row between the Western Union and
the State Department. Negotiations
begun by one of the former German
transatlantic cables. now held by the
British, and thus give direct cable
communications between the United
States and Germany, are said to have
reached a successful termination, and
to have depended for final fruitiou
only upon the willingness Of an Amer
loan cable company to exchange one
of it's lines for the former German
line which extends from Halifax to
Penzance.
It is understood that the State De-
partment was negotiating with the
Western Union for the exchange of
cables, but these negotiations are said
to have been broken of as a result of
other differences between the depart