Morning Oregonian., November 17, 1920, Page 3, Image 3

the MORxiyd" oregoxiax. Wednesday, xotember 17 r 1 920
GABLE FIRM ASKS
0. S. TO PHY CASH
Establishment of German
Line Announced.
STATE DEPARTMENT HIT
Government Discusses Possible Re
course in Dealing "With West
ern Union Company.
WASHINGTON, Nov. 16. Charges
made in New York today by Newcomb
Carlton, president of the Western
Union Telegraph company, that the
etate department had acted arbitrar
ily in dealing with bills for cable
service rendered it, served to throw
the triangular controversy between
the company and the department into
the open for the first time. It did not,
however, evoke any formal reply from
government officials, although there
were indications that the department
was preparing to issue, possibly to
morrow, a formal statement.
Carlton's statement was the first
to be made by either party. It ex
plained the refusal of . his company
to handle any but prepaid messages
for the state department, as notice
that the state department shall not
"arbitrarily decide what it shall pay
and when it shall pay for the use of
the company's facilities."
This order was issued November 10,
it was said, at the department, and
ostensibly was applicable to all de
partments, but It is understood to
have been enforced only against the
state department. Officials of that de
partment regard it as retaliation for
refusal to grant the company permiS'
sion to land a cable at Miami,' Fla.
Under-Secretary Davis and solic
itor ce'hferred today and are under
stood to have considered legal pro
cesses to which the department might
have " recourse against the company.
Controversy Started In 1910.
The controversy dates back to Au
gust, 1919, when the department
stopped payment to the western
Union for all cable messages. Offi
cials explained today that payment
had been withheld because the com
pany was withholding the government
rebate of 50 per cent on messages
from abroad.
In correspondence with the state
department, the Western Union com
panq, according to officials, has never
accepted the right of the government
to a rebate but has claimed it was
granted voluntarily. Before resuming
payment on messages, the department
desires to have the right of rebate
fixed as a principle governing future
business with' the company.
Announcement today by the West
ern Union in New York of arrange
ments with the German Telegraph ad
ministration for handling of cable
traffic between Germany and the
United States, was explained tonight
by officials as in conformity with
plans of the state department for re
establishment of such communication.
Whether the present dispute with the
Western Union would interfere with
previous uegotiations for the ex
change of a trans-Atlantic cable com
pany for the German cable now held
by Great Britain, officials decline to
say.
Negotiations at Standstill.
It was stated that for the prese"nt
negotiations with the company on
this project were at a standstill.
In order to facilitate the large
amount of traffic which is expected to
develop it is understood that plans
were made for the laying of a direct
cable between the United States and
Germany.
Plans for the new cable to Germany
aim to "restore in part the facilities
enjoyed" before the European war,
Newcomb Carlton, president of the
Western Union, explained.
By arrangements being completed
the Western Union will act' as col
lecting and distributing agents for
the new service in this country and
the German telegraph administration
will act as collecting and distributing
agents for it in Europe.
Before the war there were two
cable lines to Emden, Germany, by
way of the Azores. These were cut
between the Azores and the continent
early in 1914 and France is utilizing
one and England the other, Mr. Carl
ton said.
Eraden la Clearing; Honse.
Emden, proposed landing place for
the new line, is a natural clearing
house for telegraphic business be
tween middle Europe -nd America,
Mr. Carlton eaid. The Azores prob
ably will be a way station.
Several months ago the Western
Union applied for an executive permit
to land the cable at Miami, but the
etate department was said to have de
manded a copy of the contract be
tween the Western Union and the
British company owning the connect
ing South American cable line.
Later a British cable ship chartered
to lay the cable was ordered to Miami,
but American destroyers were sent to
keep - the British chip outside the
three-mile limit.
A report reached the government
last week that-the Western Union
was to make another attempt to land
the cable and Secretary Daniels or
dered the commandant of the naval
station at Key West to prevent it.
The Western Union denied at the time
that it intended to land the line It
was about this time that the order re
fusing government cable messages
except upon payment of cash in ad
vance was issued.
COMPAXX ISSUES STATEMENT
Dispute Between Firm and State
Department of Ixm- Standing.
NEW YORK, Nov. 16. Newcomb
Carlton, president of the Western
tnion Telegraph company, today is
sued the following statement with
regard to the company's refusal to
handle any but prepaid cable mes
sages for the state department:
"The dispute with the state de
partment on the payment of cable
tolls is of long standing, and the
Western Union company has been
forced to require that department
to prepay its tolls on cable messages
because of the arbitrary policy
adopted by the department in deal
ing with the company's bills.
"To the company there seems no
reason why the business fairness and
Justice that prevail in commercial life
should not prevail in the state de
partment, and it is not the company's
intention that the etate department
shall arbitrarily decide what it shall
pay and when it shall pay for the
use of the company's facilities."
Telegraph Employes Recalled.
MIAMI, Fla, Nov. 16. The West
ern Union Telegraph company has
recalled to New York its employes
who rd been here since September
waiting landing of the Miami
Barbttdoea cable. The employes eaid
they understood the company now
planned to land the cable at Havana,
Cuba.
30 RESCUED FROM SHIP
Continued From First Page.) v
seas were running constantly and
rain fell in torrents.
"As a matter of precaution I went
on deck at 8 o'clock, the time we
should have been nearing the Rogue
river reef, to see if anything might
be wrong or if we were off the course,
but there was nothing to be seen, and
to further safety set the compass off
shore another point.
"Worrying some about the storms
and dangers of the vicinity, I again
went on deck at 9:10 to make sure, if
possible, that we were steering cor
rectly and had passed the Rogue river
district, but there was no guide for
observation. A minute or so later I
saw breakers almost directly ahead.
"Then I concluded we had lost our
course and were about to strike the
beach. I ordered the quartermaster
to throw her over a-port, but we
struck the reef before we could
change our course and the rocks got
us just beneath the engine room. I
then ordered full steam astern, but
glancing back, saw a line-of breakers
-directly behind us, and therefore
knew we could not get off in that
direction. We then put on full steam
ahead and slowly crept off the reef.
S. O. S. Call Answered.
"On finding the Joan released we
thought we were safe, but after stand
ing off to sea- a while or so, reports
came from below that the vessel was
filling fast and the fires would soon
be out. We thereupon sent out an
S. O. S. call and were answered soon
by the .City of Topeka, which was
passing north en route to Coos Bay
and Portland. She came up to us by
11:30 and since we were not off shore
very many mile,s, the captain was
not disposed to spend any time wait
ing on a chance that we could put a
line on board his vessel and be towed
into Coos Bay.
"We then started preparations for
taking off the women and crew and
it was done in record time.
"My opinion of the cause, well, it
was one of two things: either our
compass was out of order or we were
victims of an unusual current, set
ting in along that course where the
coast line makes in three or four
miles between Port Orford and Rogue
river. I believe, the current was the
cause, for I noticed that we had lost
five miles in our log in a distance of
18 miles steaming. We should have
been south of the reef several miles
at the time we struck, had we been
on our course.
Vessel's Loss Deplored.
"I hated to lose my vessel, and
prevailed upon the captain of the
Topeka to stay about until morning
in the hope that we might get her
towed to safety, but in the morning
we could not find her because of a
low misty condition, and so came on
to Coos Bay. During the seven
hours the Topeka was waiting for
daylight she drifted south for about
15 miles, showing there was a strong,
current running there last night. I
figured the current that carried us
onto the rocks was at least a four
mile one.
"I may be criticised for abandon
ing the vessel, but, with 30 lives on
board I saw nothing else to do, as
we were within a few miles of shose
and out of the path of any vessels
that might be passing along. Besides
there was the Topeka ready to rescue
us, and if we had not taken her as
sistance we might all have been on
the beach in the breakers all night."
Mrs. Mickelsen said she had often
gone to sea with the captain and
never before had experienced any
thrills. "Last night, though," she
said, "there were plenty, and it
seemed to me impossible to save all
those people with the extremely high
wind and the high waves that were
running. I don't know much about
lifesaving in such a pinch, but every
body of experience said it was Bplen
did work on everybody's part. I
have some valuables and clothinng
on the stranded craft which I hope
to save."
Valuables Left Aboard.
Mrs. Mickelsen carried the only
thing saved from, the Joan, a small
compass, brought 'off by one of the
officers. The sailors and officers all
have valuables on board the steamer
which about daylight this morning
grounded stern first on the Port Or
ford beach about 600 yards from Bat
tle Rock. It has a list toward the
sea and the breakers all day poured
over her, without, however, any signs
of breaking up as yet. She lies on a
sand beach, which is underlaid with
rock, and after a day or two of wash
ing she will settle to the rocks and
probably be unsalvable. Port Or
ford residents this evening said there
was no chance that the Joan could
be pulled off the beach. The lumber
cargo, which other than about 100,
000 feet was below decks, was not
greatly disturbed today, although a
few sticks were washed ashore.
The Joan is the property of the
Rolph company and was built two
years ago at the Rolph yard in Eu
reka. She is 255 feet In length and
valued at SSOO.OOO. Her cargo of lum
ber was estimated by Captain Mickel
sen as worth $40,000 when making his
report to Customs Officer Clark of
this city.
Tug Ready for Service.
Captain Mickelsen is discharging
his crew here and the men will return
to San Francisco, most of them to
morrow. Some, having possessions
and papers on the Joan, intend to re
main and reclaim them if possible.
Captain Mickelsen will probably re
turn down the coast tomorrow to
visit the wreck and report to the
owners, who have the tug Storm King
ready to put into service providing
there is hope of saving the steamer,
BTJOY MAX BE' EST AB LIS HED
Scene of Wreck Long Known to Be
Dangerous Point.
The wreck of the steamer Joan of
Arc on the Rogue river reef will prob
ably lead to the establishment of a
buoy on that reef; according to Rob
ert Warrack, superintendent of light
houses for this district. 'Mr. Warrack
said that the placing of a as and
whistling buoy there has been recom
mended and practically decided upon
by the lighthouse bureau, but no such
action has been taken because of lack
of funds.
At present the nearest aid to navi-
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gation to the dangers- rocks off the
mouth of the Rogue river, upon which
the Joan of Arc struck. Is the gas
and whistling buoy at . Orford reef.
Numerous vessels have' touched these
rocks on their voyages up and. down
the coast, but so far as is known here
the Joan of Arc is the first actually
to be wrecked there.
Some navigators, during the sum
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ter of the Joan of Arc, that he struck
upon Northwest rock, it is evident
that he was attempting to clear the
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