South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-04-09
WESTERN UNION
SAYS U S. TRADE
DEMANDS CABLE
Annual Report Explains Com
pany ; Attitude on Landing
America Frowns Upon.

AOkks April I,-DeClar-
lns the landing OF the south Amer
lean cable, which has been barred
oy the American government. Is es-
sential 10 the development OF inter-
hauonal commerce Of the United
states tho annual report OF the
western Union Telegraph Co. gives
az SIDE OF the controversy.
ne statement denies that mes
Sases or American cablers are sub
Jected 20 British espionag &c. In part
the report says.
Al the instance Of Hon. william
4 McAdoo. while secretary OF the
treasury and chairman OF the L. S.
section of the International High
ON mission. the Western Union
telegraph Co. in 1916 undertook 20
<crease the cable facilities between
North and South America. The best
and quickest way of connecting the
Two continents was % lay a cable
from the United States 10 Barbados.
there connecting with a cable OF
the Western Telegraph Co. a Brit
ish corporation. and utilizing that
company's complete and compre-
hensive system Of terminals IN South
America. A contract between the
Two companies was concluded on
July Is. 1912. and an order was
placed for the cable from Miami to
Barbados az a cost OF $4,000. 900
The Arrangement provided for
direct Service between the United
States and Brazil. instead or the
Indirect and relatively slow trans
Nj
90 cents a word against the rate
then prevailing of SIS cents a word
I'm 1920 the Western Union ap-
piled 20 the United States govern
ment for permission 10 lay the
cable through the territorial waters
OF Miami, Fla Never had a cable
landing been denied to an American
company. No opposition was heard
from the state department When
the cable. 1880 miles In length.
was nearing completion, The West,
ern Union drew the attention OF the
state department TO the fact that
u could not be stored when finished.
and that the program could not he
changed after the ship was loaded
No word was received in answer 10
this.
Early In August. the bic ship
ached the United States. reported
the custom house 20 Newport
News. and discharged the United
states shore end. The ship was
now ready 10 begin laying the cable
Calls Espionage Absurd
con the way 70 the starting point,
outside the three-niIe limit Off
ga 10
squadron Of United States ships Of |
war TO prevent the laying Of the I
cable and this was the FIRST definite /
assurance that the administration I
which had initiated the cable pro- |
ject. was now opposed to IT,
"A reason given for refusing the I
permit was that the proposed West
ern Union cable would connect with \
the system Of a British company.
This argument fails when IL IS un-
derstood that under existing cOndi-
tons all OF the principal Brazilian
points-save Rio de Janeiro. Santos
and Sac Paulo-can be reached only
through the system Of the Western
Co.
I'm this connection much pub
liSity has been given 20 the state
>fnent. not true in fact. that the
messages Of American CALLERS are
subject 20 British espionage. The
absurdity Of such a charge Is man
fest.
During the war 30 was necessary
for military purposes TO censor all
communications by cable with the
termination OF the war this censor
ship was dropped and the free use
of code language was permitted I
To censor the large volume OF cable
correspondence now conducted I'm
complicated codes would require an
enormous organization and obvious
" could not be undertaken.
For 30 years over IS per cent or
the cable messages between the
United States and Europe have been
transmitted over the lines OF the
British postoffce. and there never
has been an authenticated case or
British espionage. except for mill
tary purposes
Cites Admission Of French.
cit is folly 20 think that an Amer
lean company such as the Western
Union. would advocate an associa-
tion with a foreign company whose
policy would deliberately work
harm 20 American trade.
Hitherto the United states has
denied % no American enterprise. or
10 any other nation. however mono