The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-18
us. MAY REVOKE
WESTERN UNION
CABLE PERMITS
Hints COmpany's Attitude
Is Resentment Over Miami
Situation.
TO INVOKE WAR POWER
Government Action Would
Follow Holding Up Of Non
Prepaid kilograms.
CLASH OVER REFUNDS
State Department Explains
Matter of Rates Is at
Issue.
CLASH OVER REFUNDS
Special Despatch to THE New York HHsALb.
New York Herald Bureau,

Special Despatch to THE New York HERALD.
New York Herald Bureau,
Washington, ID. c., Nov. IL.
The State Department to-day init
mated that resentment over failure to
land a cable at Miami, which was to
connect with British cable, Is re-
sponsible for the Western Union Tele-
graph Company's attempt to hold up
Government messages until 1t can
make a financial settlement satisfac-
tory to itself.
Department officials only smiled
when the statement issued by New
comb Carlton, president of the COM
pany. concerning State Department
officials and referring to them as col
lege boys, was called to their attention.
There is no doubt, however, that the
Government looks upon the contro-
versy as serious, and any attempt on
the part Of the Western Union Com
pany to hold up Government messages
unless prepaid will be met with
prompt attention.
It was reported In Washington to-day
voking landing permits under which the
conipany's cables are being operated. 1t
Is argued that the war powers OF the
Government still exist, and that attempts
TO stop the transmission of State De-
partment messages would be regarded
as interference with the processes OF
Government.
A statement issued to-day by the State
Department outlined the differences be-
ND tI,o yny-y,vv mt
and then, without apparent reference 10
anything else. injected these paragraphs
relative to the Miami cable incident:
The legal principles controlling the
landing and regulation of cables in the
United States are well established. In
the absence of Congressional legislation.
these matters are regulated by the Ex-
ecutive by virtue of his authority with
respect to the conduct of relations with
foreign countries. The Executive may
prevent the landing of a cable or permit
1t on conditions which will protect the
interests Of the United States. and If a
landing has been made without the con-
sent of the Government the operation of
the line may be prevented.
1T has been the uniform policy of the
Government to allow the landing Of
cables only on condition that the Gov
eminent of the United States shall be
same or similar privileges with regard
to the control and use OF SUCH lines as
are exercised and enjoyed by any for
eign Government Obviously the law
and the policy must be the same whether
telegraph connection with foreign
country is by land line or by a subma-
rine cable"
The State Department further asserts
that In the matter of rates charged
by the Western Union. the United States
Government Is being asked to pay twice
as much for its messages as is charged
the British Government
The difference between the State De-
partment and the Western Union, Il Is
understood. arises over n question of
refund and does not amount to more
than 100000. In explaining the con-
troversy the State Department called
attention to the fact that no difficulties
had arisen with the Western Union
Company until recently with respect to
kilograms sent from the United States
TO "a foreign country" on which the
Government claims a rate about half as
much as the commercial rate. 1t had
been arranged that the full rate paid for
messages sent to the department from
foreign countries should be taken care
of by a refund to the Government.
Tho Western Union Company, IL Is
stated. has INDUCED In apparent un-
warranted delay In making refunds
due under that arrangement. The COM
pany was Informed that the department
could not be expected to continue to
pay It's current bills for telegraph
charges unless the company should ex-
pedite payment of funds due to the
department.
The company now has notified the
department that It will not carry at the
reduced government rates messages
originating outside OF the United States
and that IL will receive no Government
messages which are not paid for In cash
at the time of delivery to the company.
The incident OF a private communion
tons company insisting ON holding up
the international communications of the
government OF the United States Is with
out precedent.