The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-11-16
BREAKS With
WESTERN UNION
Long-Standing Controversy Of
State Department With Tele-
graph Company at Climax.
MUST PREPAY TOLLS
Order May Be Retaliatory
Step for Failure to Permit
Landing Of Gable.

| washington, NOV. lb,~-NA. F.)--Tne
long 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 de-
partment except upon prepayment Of
tolls.
The oompany'a order was issued on
Nov. 10. II was said today at the de-
partment, and ostensibly was to APP
ply to all departments OF the govern
ment II was understood, however,
that messages sent by other dopart-
ments had been excepted informally
from the ruling.
The Western Union company Is
stated TO have based Its ection on the
delay by the department In making
payments on cable messages prevl-
ously~- handled. Department officials
asserted today, however that II was,
In their opinion, a step In retaliation
for the failure of the department to
permit tho landing OF cable az Mi
ami, Fla, connecting at Barbadoes
with u British cable from South
America.
Not Paid since August, 1919.
In stating that it's order regarding
| cable messages was issued because OF
the failure OF the state department
to pay for messages the Western
Union company was said 10 have
pointed out that the department had
not made any payment since August,
| 1919,
department officers explained today
| that payment had been withheld be-
/ cause tho 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 tho international clearing
house In London was far behind In
payment OF tolls to- which the company
/ was entitled for government messages
and that no rebate TO the government
| could be made until this balance had
been paid by the clearing house.
| Questions now before tho nternn-
| tional communication conference also
| are said by officials TO be part OF the
| row between the Western Union and
| the state department, Negotiations
begun by the American government to
Obtain one OF tho former German
transatlantic cables now held BY tho
British and thus give direct cable CONF
| munlcntions between tho United States
and Germany arc said 20 have reached
| a successful termination and TO have
depended for final frultiol only upon
the willingness Of ali American cable
company TO exchange one OF It's lines
| tor the former German line which ex-
| tends from Halifax to penEanca,
| II Ia understood that the state de-
partment was negotlalng with the
Wesern Union for the exchange ~
cables. but those negotiations are said
10 hava been broken Off as " result pf
j l.other ,difrerenoes between the departs
ment and the company.
Demanded Copy Of Contract
Several months ago the Western
10 land the cahio az Miami, but the
state department was said to have dee
manded a copy OF the contract hetweon
tho Western Union and the British
company owning the connecting South
American cable line. The copy was
not Forthcoming, according TO state do-
partment officers, and tho permit was
Later British cable ship which had
| peen chartered 10 lay tho cable waH
ordered TO Miami. At the spsEeHtion
| OF the state department the navy de-
pnrtment sent destroyorH TO the Florida
port 10 keep he British ship outside
tho throc-nile limit. The British om'
bassy also took a hand In tho matter,
ordering the captain OF the vessel not
to nttempt to land the eahle,
Some time after this William q, Me.
Adoo, former secretary Of tho trens'
ury. became counsel for tho Western
union company and department OH
eers say he delivered n copy OF the
contract 10 tho department. u had
heen explained previously that the de-
partment before issuing the permit de-
sired TO determine whether the con
tract between the American and Brit
ish companies would Htrengthen the
cable monopoly held by the British
company IN South America.
| Awaited Conference.
The permit to land the cable stu
was witfheld.it being explained official,
ly that action was hoinE deferreh until
after the meeting OF the the inter-
national communications conferences
now In session here and which In con,
sidering the whole question OF world
| communications.
A report reached the government
last week that the Western Union wht
10 make another httomnt 20 land tht
cable and Secretary Daniels ordered
the commandant OF the naval stat'or
at Key West 10 take tho necessar'
stems 70 prevent u. The Wohterf
Union company denied ~ the time
that IL intended 20 land tho line. u
was about this time TINT the order re-
fusinE goyernmen cable messages eN'
cept anon payment OF cash In advance
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