The sun., 1918-12-18
RADIO CHIEFS SEE
DANGER IN SEIZURE
Griggs and Nally, Marconi Of
ficials, Call Proposal
Paternalistic.
SEE CENSORSHIP MENACE
German Control of Mexican
Wireless Stations Ex-
planned.
SEE CENSORSHIP MENACE
Special Despatch to THE Sun.

WASHINGTON, Dec. 17.-Opposition
to the ADMINISTRATOR plan to take
over the radio systems was voiced to-
day by John W. Griggs, former Attor-
ney General and president and general
counsel Of the Marconi Telegraph and
Gable Company, and Edward J. Nally.
vice-president and general manager OF
, that concern and president of the Pan
American Wireless Telegraph and
Telephone Company
Both were heard by the House Mer-
chant Marine and Fisheries Commit
tee. which has before 1t the Admins
tration bill providing for the Govern
ment purchase OF these utilities.
Mr.. Griggs told the committee he
opposed the measure because 1t did not
provide adequate compensation for the
companies; was confisCatory, unneces-
sary and merely another move in the
general drift of the Administration
toward paternalism and Government
ownership.
| Even after the arlnistice was signed
the Marconi company was forced to
sell its ship to shore stations. he
told the committee. This fact and the
| taking over OF the cables after the
signing OF the armistice indicated
clearly the drift of the present Ad-
ministration, he pointed out.
| "Continuous Censorship"
1.-THE censorship has been in effect
eighteen months" Mr.. Griggs said.
This bill means there will be a con-
/ al
and news business, so much of 1t as is
conducted by radio. 1t means, too,
that II the navy has control of the
radio stations navy business will go
ahead Of everything else"
| Mr.. Griggs recited the curious fact
that 1t was due to a protest from the
former German Emperor that the
Marconi Company had to remove its
station from the Scotland Lightship
The station refused to answer a call
from a German ship equipped with
wireless of another system and the
complaint followed from Berlin result
ing In the removal of the Marconi
OUTFIT.
| Mr.. Nally said an official of the
Navy Department suggested forming
an entirely separate company to ex-
plot long distance radio communica-
ton with South America. With the
consent of the Navy and State Depart
ments he said such an, organization
was formed and on the strength Of the
assurances given him he went to sew
eral South American countries to OBJ
Main concessions.
| Upon returning to the United States
I oil 10 hn "
OF the Navy had changed front, and
then favored Government ownership.
II called upon Secretary Daniels who
confirmed what 1 had heard" said Mr..
Nally. He positively stated he wouti
not favor erection OF wireless stations
by the Pan-American Company and in
fact disclaimed all knowledge OF his
department having passed favorably
on the proposition"
Daniels's Request Refused.
Secretary Daniels then asked the
Pan American Company to go ahead
with construction of a high power
radio station in Argentina which re-
quest was refused in view OF his
change of attitude.
Interesting light on the radio situa-
ton in Mexico was given by Mr.. Nally
lin his testimony. The situation there,
he said, shows how badly off the
limited States Is with respect to the
commercial wireless agencies Of other
countries and the handicap under
which American manufacturer and
Operators of wireless apparatus work.
When an agent investigated in Mex
81 oto ha
stations there in control OF Germans
and sought to break this control.
The Mexican constitution formed in
1915 provided for Government owner
ship of radio systems. 1t was pointed
out but the Carranza Government had
no money and little credit
therefore 1t was natural that the
Carranza Government should fall an
easy victim to the wiles of the Ger
mar Telefunken Company when 1t Of
fered 10 repair the old stations and 10
finance and man them with competent
German operators" Mr. Nally explained
1T is only fair TO keep in mind in
this connection that at the time this
deal was made both Mexico and the
United States were neutral.
, although the Mexican Government,
claims title to all these stations. the
, apparatus is strictly German. There
have been German operators in every
one of the twenty odd stations. More
over, there have sprung up Govern
lnent electrical ships with German
supern. endents and the whole system
has been supervised by German radio
experts who were formerly employed
nd
man ships"
Mr.. Nally said that II the Pan.
American Company could go forward
, freely with its plans for Central ant
, South America American business
, would receive ian advantage beyond
calculation."