New-York tribune., 1918-12-18
Germany Controlled
Mexican Wireless
Throughout the War
Nally, Marconi Company
Official, Tells House Conn
mittee Private Ownership
Does Not Mean Monopoly

WASHINGTON, Dec 17.--More than
twenty-five wireless stations in Mexico
were under German control during the
war, Edward Naly, vice-president of
the Marconi Wireless Company of
America, told the House Merchant Ma
rine Committee to-day, testifying in
opposition to the bill proposing govern
ment monopoly of radio stations in the
United States.
"The Germans were in full control
of the wireless stations in Mexico" said
Mr.. Nally, telling of an investigation
made last year of the Mexican wireless
situation by an agent Of his company.
"Although the Mexican government
claims title to all the wireless sta
tions," he continued, "the apparatus is
strictly German and there have been
German operators in every one of the
twenty odd stations. Moreover, there
shops, with German superintendents,
and the whole system has been super
vised by German radio experts, who
were formerly employed at Sayvlle
and Tuckerton, and on the German
liners which were interncd in this
country at the beginning of the war"
Mr.. Nally explained the German con-
troll of Mexican wireless by saying that
the Mexican constitution Of 1916 pro-
vlded for government ownership, and
he added:
"Carranza had little money and less
credit when he started to make i'm
provements, and it was therefore the
most natural thing in the world that
the Carranza government should fall
an easy victim to the wiles of the Ger
man Telefunken Company when it Of
fered to repair the old stations and to
finance and man them with competent
operators"
Mr.. Nally argued that trans-o oceanic
and trans-continental stations should
be operated by private interests and
told the committee that most nations
had left the development of high
power wireless to such interests He
conceded that ship-to-shore wireless
could be operated best as a govern
ment monopoly.
There is no reason why the govern
ment cannot regulate rates and prac-
tlces of wireless companies. Mr.. Nally
said, and he contended that private
ownership does not necessarily mean
monopoly.
The Marcon sale of SO shore sta
tions and 800 ship sets to the Nayv
Department "was not very voluntary.
Mr.. Nally said He added that the
company's correspondence with the
navy on this subject would be given
to the committee later.
MI. Nally, who also is president of
the PanAmerican Wireless Teleqranh
and Telephone Company, said he WENT
80 South America to arrange for wire
less service between that continent and
the United States. When he departed
he declared his plan was indorsed bv
government departments, including the
navy, but upon his return last April
after getting concession for building
a station IN Argentina he found Secre
tary Daniels then favored government
ownership.
Upon my return from Argentina
said Mr.. Nally, Il called on Secretary
Daniels. who positively stated he would
not favor the erection of wireless sta
tlons by the PanAmerican Wireless
Telegraph and Telephone Company, and
IN fact disclaimed all knowledge of his
department having passed on the prop
osltlon and having approved it, saying
that he did not do so personally"
p A. S. Franklin, until recently
chairman of the government ship con-
troll committee, in telegram to the
committee urged passage of the bill.
Government ownership Of the sta
tons was characterized by John w.
Griggs, president of the Marconi Com
pany, as unjust, confiscatory and a
menace to the country" as it would
mean, he said, that not single private,
business or press message could be
sent without its passing through gov
crnment hands, thereby setting up an
arbitrary censorship.
The committee was asked to revise the
olll SO If passed it would provide for
an arbitration board to decide upon
the amount to be paid the Marconi
Company AS now framed, he said. the
bill takes no consideration Of the
money spent during the past twenty
years by the company to make wire
less communication practicable nor of
the protils the company might make in
the future.