The Birmingham age-herald., 1921-04-04
WESTERN UNION IS REGISTERING HUGE
 BUSINESS GROWTH
Gross Operating Revenues for Year Total 120 Million, or IT Per Cent IncreaSe-FIor-
 ida Fuss Reviewed
By Associated Press

ny ASSOclatcQ Press
 New York, April 3.-(Special )-Gross operating revenues for the year amount. ed to s119,991, 1925, an increase of IT per cent Dividends and interest received were A,4S1,S60, which, added to revenues, made gross income of S121, ,473,685 Oper- ating expenses, including repairs, depre- citation, taxes and employees share of in- come participat ton, were S1O6, ,S38, ,713, an increase of 90 per cent over 1919. After paying. interest on bonds and reserving $cl7, 400 against depreciation of securities, ret income of $127S5,722 was transferred to surplus. Dividends at the usual rate of per cent, amounting to s6. sS2, ,53S, were paid during the year, Surplus at Decem- Der 3l, 1920, amounted to $40,6S5 210 an in crease over that of 1919 of $5,696,74
 Net increase in the value of property account. including construction in pro- gress, was s13,3S5, 223 There are 24,8l operated offices, 214,2S3 miles of pole lines. 791, ,530 miles of iron wire, 627, ,475 miles of copper wire, 2,7OS miles of lard line cables and 25,392 nautical miles of ocean Cables
 Current assets were reduced by s12.- 2o3,2l2, including marketable securities of $1O,O63,5 522 sold to acquire working cash These funds together with the accretion Of S,559, 134 in surplus and reserves and funds arising from other sources, were
 
 ments to the property referred to, the purchase of additional supplies of 8, ,799, 6o4 and the entire liquidation of notes payable of Ts50O00
 FEDERAL QUARREL
 plan was adopted at the beginning of 1920 for employees income participation and the sum of $3,303, 123 was paid to qualifying employees. The total distribu- tion was 94 per cent of the monthly wal 1of,t tA h>,, cent of the annual wage rates. Disburse- nents for pensions, accidents sickness, etc. to the employees amounted to $1- 2226l4. an increase of $207, ,253. Each dol lar of revenue taken in by the company was disposed of as follows: 65 per cent, salaries, wages etc; 16.5 per cent, other operating expenses; per cent fixed charges and taxes, leaving 10.5 per cent for net ilconS before paying dividends
 At the instance of William c. McAdoo, while Secretary of the Treasury and chairman of the United States section of the international high commission. the Western Union Telegraph company .n 1916 undertook to increase the cable fa- cilities between North and South Amer ica. The best and quickest way of con meeting the two. continents was to lay . cable from the United States to Barba- dos, there connecting with cable of the Western Telegraph company, Brit ish corporation, and utilizing that com- pany's complete and comprehensive sys- tenn of terminals in South America contract between the two companies was concluded on July 15, 1919, and an order was placed for the cable from Miami to Barbados at a cost of $3,0O0 00O
 The arrangement provided for direct service between the United States and Brazil, instead of the indirect and relat- lively slow transmission via London, and a rate of 50 cents a word against the rate then prevailing of S5 cents a word
 In 1920 the Western Union applied to the United States government for per mission to lay the cable through the ter ritorial waters off Miami, Fla Never had a1 cable landing been denied to an American company No opposition was heard, from the state department. When the cable 1,s30 miles in length, was near. ing completion the Western Union drew the attention of the state department to the fact that it could not be stored when and that the programme could not be changed after the ship was load ed. No word was received in answer to this''
 IDEA IS ABSURD"
 Early in August the cable ship reached the United States reported at the Gus tom house att Newport News, and dis ch arged the United States shore end. The ship was now ready to begin laying the cable.
 On the way to the starting point, out side the three-mile limit off Miami the ship was met by squadron of United 1 States ships of war to prevent the lay ing of the cable, and this was the first definite assurance that the admnistra- ton which had initiated the cable proj- ect was now opposed to it.
 A reason given for refusing the permit la bn oSfo nj cable would connect with the system of ] British company This argument fails when it is understood that under existing conditions all of the principal Brazilian Rio de Janeiro, Santos and Sac Paulo--can be reached only throug, he system of the Western company.
 In this connection much publicity has been given-to the statement. not true in | 'act, that the messages of American cab CTS are subject to British espionage. The | itsurdty of such charge Is manifest.
 0uako Rauicfnred