Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-01-09
GOVERNMENT Wins
FIGHT TO ABOLISH
CABLE MONOPOLY.
Revolutionary Change Seen
in Communication With
South America.
ny DAVID LAWRENCE.

the western Union leIeei aPh N"'
pany, the All-American Cable Com
pany ami the Brazilian, Peruvian anu
Ecua3orian governments which Will
mean Il revolutionary change In cable
communication between North ana
south America bringing with it UNI
uuestionably later on lower rates as
we'll AS improved service and estab-
fishing ultimately freedom from ca
bile monopolies in the western hemis-
phere.
Basis of New Agreement.
The basis of the new agreement,
which brings to an end the spectac-
ular fight between the Washington
government and the Western Union
over the landing of a cable in Miami.
Fla, is this:
First, the All-America Cable Com
pany shall surrender the monopoly
it enjoys to the landing of cables in
Peru and Ecuador while the Western
Union, which is affiliated with the
British owned Western Telegraph
Company shall surrender its monopo-
lies on the Brazilian coast and the
eastern shores of South America.
and thereafter neither company shall
have monopolieS on either coast
second. The Western Union will be
permitted to land its cable at Miami.
Fla. connecting the Island OF Bar
bados, where the Brazilian cable had
reached, with the United States.
Third. settlement is conditioned upon
the consent of the Brazilian govern
ment and the British company. the
Western Telegraph Company. to the
revocation of the original monopoly
on the Brazilian coast.
Evidence of Far-SiEhtedness.
The willingness of the Western
Union and the all-Amercan COM
ranies to surrender their respective
monopolistic privileges is an evidence
of their far-sghtedness as we'll as
their recognition of the fact that
sooner or later. when the present
monopolies did expire, the influence of
the United States government. whether
the administration be republican or
democratic. was sufficient to prevent
the renewal OF such monopolieS and
that by an agreement at this time
competitive conditions could be
brought about which would enhance
I.ot only the revenues of the cable
companies, but help to build COM
munication and commerce between
North and South America.
Trade in the western hemisphere
has been hampered by poor communi-
cation; indeed, before the An-America
Company came into the Held most OF
the cable traffic from the United
States to South America was by way
of Europe-necessitatin delay on the
one hand. and breeding a certain sus-
pion on the other that European busi-
ness men were able to outbid Amer
leans through prior knowledge OF
been denied again and again, but 1t
has been admitted that the oppor-
tunities for such tactics would be
minimiZed if the United States has
speedy communication with South
America.
Fight of Long Standing.
The fight for untrammeled COM
munications in the western hemi-
sphere began under the Wilson adj
ministration. Secretary Colby adopt
ed practically the same policy as did
Secretary Hughes-there was no
politics in it, simply a deliberate ef-
fort on the part of the American gov
eminent to see to it that cable COM
muncation with the all-important
continent to the south of US was not
controlled by foreign-owned COM
panies who might discriminate against
the citizens of the United States.
President Harding. however. has
the opportunity now to go even TAR
Their and to use the example of what
has been accomplished in the western
hemisphere as a means of securing
freedom from monopoly in other
countries with which the United
States has direct cable communica-
ton, for admittedly world peace and
extensive commerce depend largely
upon communication. The Harding
administration is saying nothing for
the present about licenses to COM
panieS landing cables from European
points, preferring to settle the South
American situation first and offer an
example of what can be done by
abolishing cable monopolies. But the
fact is that the Kellogg bill, enacted
recently into law, gives the chief
executive powers which may revolu-
tionize the whole question of cable
communication II properly exercised.
1t will be recalled that the Wilson
administration. feeling confident of
the constitutional rights OF the exec
utice in refusing to grant permits
TO companies to land cables II the
interests of the United States seemed
adversely affected, found itself in the
midst Of litigation with the Western
Union.
Power Vested in Executive.
chance to decide whether the eXecu-
tive had the power to grant or revoke
cable licenses, for in the middle of
the controversy Congress acted and
specifically vested in the chief execu
tive all the discretionary power need
ed. 1t then became matter for fur
Their negotiation between. the State
Department and the cable companies.
The Washington government made
It clear that it's views did not involve
preference in cable companies nor
was it attempting to dictate how
these concerns should handle their
business, but that. BROAD" sDea King,
communication was a matter of
policy as we'll as law and that the
United States could not agree to per-
nit the Western Union to land cable
at Miami. Fla. if that meant a con-
nection with a British company in
Brazil which, having an exclusive
monopoly on the Brazilian coast, viz
tually prevented an American cable
company. operating on the west coast
of South America. from reaching
around the continent and developing
it's lines.
The Western Union always replied
that the All-American Company had
similar monopolies in Peru and Ecua-
dor and that the Western Union
lines north of Chile on the west coast
of South America.
Diplomatic Influence Felt.
Thus the controversy dragged on,
bat it became evident to all con-
cerned that it was only a question of
<;n,a until Tho Iypifad States tbronoh