The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-17
W. U. CLASHES WITH
STATE DEPARTMENT
Telegraph Company Refuses
to Handle Cables Unless
Paid in Advance.
BILLS UNPAID SINCE 1919
Washington Hints Interior
ence With British Ocean
Line Is Real Reason.
Bp the Associated pr,ss.

WARRINGTON, NOV. lo.-lHe iphs
standing controversy between 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 Department except
upon prepayment Of tolls,
The company's order was issued on
November 10. it was said to-day at the
Department, and ostensibly was to apply
TO all departments of the Government.
II was undei stood, however, that mes
sages sent by other departments had
been excepted informally from the rul-
ing.
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. De-
partment officials asserted to day. how
ever. that II was, in their opinion, step
in retaliation for the failure of the De-
partment to permit the landing of
cable at Miami, connecting at Barbados
With British cable from South America.
Several months ago the Western Union
applied for an executive permit to land
the cable at Miami. but the State De-
partment was said to have demanded q
Copy of the contract between the West
ern/ Union and the British company
owning the connecting South American
gable line. The copy was not forthcom-
I ing, according 10 State Department Of
flcers, and the permit was withheld.
british Ship Goes to Miami.
Later a British cable ship which had
ri "a RI m
ordered to Miami. At the suggestion OF
the state Department. the Navy Depart
ment sent destroyers TO the Florida port
70 keep the British ship outside the three
mile limit The British Embassy also
took hand in the matter, ordering the
captain of the vessel not to attempt to
land the cable.
Some time after this William c. Nc
Adoo former Secretary of the Treasury.
became counsel for the Western Union
Company and department officers say he
delivered a copy Of the contract to the
Department. 1t had been explained pre-
viously that the department before s-
suing the permit desired to determine
whether the contract between the Amer
lean ana British companies would
strengthen the cable monopoly he'd by
the British company in South America.
The permit to land the cable still was
withheld, 1t being explained officially
that action was being deferred until
after the meeting of the International
communications conference. now in
session here and which is considering the
whole question Of world communica-
tons.
| A report reached the Government
last week that the Western Union was
to make another attempt TO land the
cable and Secretary Daniels ordered the
commandant of the naval station at
Key West to take the necessary steps
to prevent It. The Western Union
Company denied at the time thPt 1t in
tended 10 land the line. 1t was about
this time that the order refusing Gov
eminent cable messages except upon
payment OF cash In advance was is
sued.
Payments n Year Overdue.
In stating that It's order regarding
cable messages was issued because OF
the failure OF the State Department 10
pay for messages. the Western Union
Company was said TO have pointed out
that the Department had not made any
payment since August 1919. Department
| officers explained to-day that payment
had been withheld because the com
pany began 10 withhold the Government
rebate Of 80 per cent on cable messages.
The Western Union was said TO have
explained that because Of wartime con-
gestion the international Clearing
House in London was far behind In the
payment of tolls TO which the company
was entitled for Government messages
and that no rebate to the Govcrnn, ent
could be made until this balance had
been paid by the clearing house.
Questions now before the 1nterna-
tlonal Communications Conference also
are said by officials 10 be n part Of the
row between the Western Union and
the State Department. Negotiations be-
gun by the American Government to OBJ
tain one OF the former German trans
atlantic cables now held by the British
and thus give direct cable communica-
ton between the United states and Ger
many are said TO have reached n sue
| cessful termination and 10 have de-
/ pended for final fruiton only upon the
willingness OF an American cable com
pany 10 exchange one OF It's lines for the
/ former German line which extends from
Halifax TO Penzance.
II is understood that the State Depart
ment was negotiating with the Western
Union for the exchange or cables. bu,
these negotiations are said TO have been
broken off as a result OF other differ
ence between the department and the
company