New-York tribune., 1920-11-17
Wires Sealed
Colby Does
Not Pay Tolls
Western Union Breaks With
State Department i'll an
Ultimatum as Result of
Differences Over Cables
Retaliation Is Charged
Refusal to Permit Landing
of Line in Florida and
Rebate Dispute Are Cited

WASHINGTON, Nov. 16 (By The AS
sociated Press.) - The long-standing
controversy between the State Depart
ment and the Western Union Telegraph
Company has reached the stage of an
open break, the company refusing to
handle any further cable messages for
tie department except upon prepay
ment Of tolls.
The companys order was issued on
November 10, it was said to-day at the
department, and ostensbly was to apply
to all departments of the government.
!, was understood, however, that mes
sages sent by other departments had
heen excepted informally from the
ruling.
The telegraph company is said to
have based its action on the delay by
the department in making payments on
cable messages previously handled.
Department officials asserted to-day.
however, that it was, in their opinion,
{, step in retaliation fer the failure of
the department to re5rlit the landing
of cable at Miami, Fla, connecting at
South America.
Trouble Over Gable Landing
Several months ago the company ap
piled for an executive permit to land
the cable at Miami. but the State De-
partment demanded copy of the con-
tract between the Western Union and
Meeting South American cable line. The
copy was not forthcoming and the per
NIT was withheld
Later a British cable ship which had
been chartered TO lay the cable was or
dered to Miami. At the suggestion Of
the State Department the Navy Depart
ment sent destroyers to the Florida
port to keep the British ship outside
the threemile limit. The British En-
bassy also took hand in the matter
ordering the captain of the vessel not
to attempt to land the cable.
William G. McAdoo, formerly Secre-
tary of the Treasury, became counsel
for the company, and department Off
GERS said he delivered d copy of the
contract to the department. 1t had
been explained previously that the de-
partmcnt, before issuing the permit
desired to determine whether the con-
tract between the American and Brit
ish companies would strengthen the
CHDlc IuOuOpOly utlu DV cnc DflllSn
company on the east coast Of South
America.
The permit to land the cable still was
withheld, it being explained officially
that action was being deferred until
after the meeting of the international
communications conference now in ses-
sion here, and which is considering the
whole question of world communca-
tions.
report reached the government last
week that the Western Union was to
make another attempt to land the cable,
and Secretary Daniels ordered the com
r1&ndant of The naval station at Key
West to take the necessary steps to
prevent it. The company denied at the
time that it intended to land the line
It was about this time that the order
refusing government cable messages
except upcn payment Of cash in ad
vance was issued.
Charges made in New York to-day by
NewcOmb Carlton, president of the tele-
graph company, that the State Depart
ment had acted arbitrarily in dealing
with bills for cable service rendered il
served TO throw he controversy be-
}ween the company and the department
into the open for the first time. 1t did
not, however, evoke any formal reply
from government officials, although
there were indications that the depart
ment was preparing to issue, possibly
to- morrow, a formal statement Of its
attitude.
Mr. Cartons sta, ,ment was the first
to be made by either party. 1t eX-
plained the refusal of his company to
handle any but prepaid messages for the
! State Department as notice that the
State Department chall not arbitrarily
decide what it shall pay and wncn 1t
shall pay for the use of the company s
facilities.
Under Secretary Davis and the solc-
itor of the department conferred to-
day and considered legal processes TO
which the department might have re-
course against the company.
The controversy dates back to Au-
gust, 1919, when the department stop
ped payment to the Western Union for
cable messages. Officials explained
to-day that payment had been withhold
because the company was withholding
the government rebate of so per cent or
cable messages transmitted from
abroad.
In spondence with the State De