Telephone Take-Over

Night after night vigorous, broad-shouldered President Carlos Mendieta y Montefur sat up until the wee hours, wrangling with his Cabinet last week until Secretary of Justice Mario Montero could stand it no longer. "I am tendering my resignation," he told reporters wearily in the grey dawn. "I simply cannot sit up through all night Cabinet sessions, attend to the business of the Ministry of Justice and keep my health!"

An old line politico, the President has a conservative background but of late has grown steadily more radical, playing for the support of Cuba's restive unemployed. Last week he wanted to seize the Cuban Telephone Co., in which U. S. citizens own the greater part of an investment stake of $28,000,000, planted through International Telephone & Tele- graph which owns stock control. Nervous ministers warned President Mendieta that such confiscation would be rash indeed, but he relied on President Roosevelt's "good neighbor" policy and distaste for public utility companies.

Pretext for the seizure was an ultimatum, by President Mendieta to Cuban Telephone demanding that it re-employ certain strikers, including men who had committed acts of sabotage last spring. Loyal employes were subjected to weeks of terrorist intimidation. Several had their houses bombed. Last week they manifestoed: "We will not work with strikers who have tried to murder us." But President Mendieta, convinced that he was posing as the Friend of the Masses, pushed on with his ultimatum which was flatly rejected by U. S. General Manager Henry C. Hart of Cuban Telephone.

Into Mr. Hart's office soon marched the Military Governor of Havana Province, grim Major Diaz Calderon, escorting a Cuban engineer, Eduardo Montoulieu. whom President Mendieta had appointed Government Interventor in charge of Cuban Telephone. They demanded Mr. Hart's resignation. He demanded some sort of assurance from the Cuban Government that they were not attempting outright confiscation. Doors were closed and a mighty haggle ensued.

When word leaked out that Manager Hart had resigned, female Cuban Telephone employes filled the corridors with their wailing. When Mr. Hart walked out he was cheered for five minutes. Said the loyal employes' spokesman, Secretary Pablo Martinez of the Telephone Workers Union: "Under no circumstances will the present workers agree to the return of the strikers." He then asked his followers to give Interventor Montoulieu a chance, assured them "If the Government's management proves unsatisfactory we can easily retaliate by paralyzing telephone service throughout Cuba." Said the Interventor: "I will employ common sense. This matter must be settled amicably between Cubans." Suspicious that the Government might intend to lock them out of their jobs, scores of telephone employes refused to go home at night, had their families bring them pillows, food.

In Havana leading U. S. businessmen expressed alarm at the setting of a precedent by President Mendieta which seemed to sweep away security for the U. S. control of U. S. investments in Cuba, but they congratulated ex-Manager Hart on a fat document he had obtained before resigning. In this the Cuban Government assumes liability for damages to the equipment of Cuban Telephone which may occur under its management. Telephone officials said that Interventor Montoulieu will soon find out that Cuban Telephone is not taking in enough money to meet its payroll. They added smugly that the operating deficit has thus far been met by funds which I. T. & T. has paid periodically from Manhattan, will now stop paying with alacrity. Said ex-Manager Hart for the record: "I protest most energetically against the Cuban Government's action, which despoils the company of its administration and deprives it of the legitimate enjoyment of its properties without legal basis, thus violating the constitutional laws which prohibit confiscation of property."

Said U. S. Ambassador Jefferson Caffery: "I am just an observer."

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