New-York tribune., 1922-08-18
Cable Monopoly
OF British Gives
u. S. a 7 Problem
Institute of Politics Hears
More of Strangle Hold
That England and Dem.
mark Have ON Sysfen1
speoiaf pispdtoh to The rrsoune

spectdf Dfspetch to The Tribune
WlLiIAMSTOWN, Mass, Aug. IT,
Ihe controversy stirred up by Walter
s. Rogers's statements at the Institute
Of Politlcs that America had no COM
prehensive cable policy and was merely
acting as feeding system for the
strong independent network Of cables
owned by Great Britain, came un be-
fore the. round table on international
communications again to-day. Mr.
rogers turned to the Pacific and iiius-
trated the methods used by Great
Britain and Denmark IN their success
tul monopoly of Chinese communiea-
tions.
The British and Danish interests
operating as the Eastern extension and
the Great Northern Cable companies,
he said, wore 90 strong in China that
America could not secure a landing
place for an American cable in Chins.
Even to-day American business was
being injured, he added, because Amer
leans were paving higher rates to the
China than European merchants, and
It was actually cheaper to cable to
London and to the East than to do so
directly from this country
The British and Danish telegraph
systegls owned their monopoly in China
In violation of the declared epen door
policy OF Secretary of State John Hay,
| to whose open door notes both Britain
and Denmark fully subscribed. And
yet at the time OF agreeing to the
policy of the open door" Great Britain
and Denmark had secret agreements
with China, Mr., Rogers said, obtained
In times Of trouble and presumably
under pressure, by which these inter
ests mad a monopoly violating the John
Hay program.
Whom the importance OF laying IN
American cable to China was Being
stressed under tho Presidency of Me-
Rantey, ar American company hur-
riediy offered to lay trans Pacific
cable without government aid. 1t was
TO be operated as an Independent COM
pany and only number of years later
it became known that this company
was owned by the British to the extent
of half the stock, while 25 per cent was
IN Danish hands. Thus Great Britain
and the Danish cable company were
lin China.
When asked what he had to say
about Mr.. Cartoons criticism regard
ing the delays caused by the State De-
! pGrtment in the issuance of cable land
ING Licences, and also as to statenent
that Mr., Hughes would take exception
to his statement that the government
had no cable policy, MIR. Rogers said:
Il am not an employee CT THE State
Department and cannot speak for that
department. | quite agree with Mr..
Carlton as to the desirability Of The
PROMPT granting of cable licenses, but
Atr. Carlton has overlooked the fact in
his interview that the recent delay has
been due to the efforts of the State De-
partmcnt to break down cable monop-
olies In foreign countries. While this
has resulted in certain delays, the
policy Of Mr.. Hughes, il successful,
VIII create q situation permitting a
much wider development of American
cable systems in the future,
AS to the government lacking con-
structive program, what said was that
the government lacked a comprehensive
program for furtherins the dayelon~
ment of American communications with
| other countries. What Mr., Hughes is
doing is part of such q program and
a very valuable part. What is needed.
however, If the United States is to have
q system Of communications ADEQUATE
to meet American political, military
| and commercial needs, is comprchen-
sive. we'll rounded constructive pro-
cram.
out!i q program involves not aiene
satisfactory situation as to landing IL
censes, but the definite encouragement
of American cable enterprise and of
american business to undertake the
manufacture in this country of cable
and cable apparatus, the development
by sae government either directly or
Indirectly of such needed electrical
communication services as American
private enterprise cannot or will not
deyelop, the Improvements Of the gov
eminent owned services to and in
Alaska, the development OF system,
OF national and international regula-
ton that will be fair to the cable and
radio companies and will at the same
time protect the public from possibfe
exploitation, and the full utilization Of
the radio system operated by the navy
in sach ways as not unduly to inter-
fere with American private cable and
radio interests
Tho government might we'll adj
dress itself TO the working out of
comprehensive communication program.
ascertalnlng what the companies are
willing and able TO do and what the
needs Of tee government, Of the press
and of American business for addi-
tional facilities and Improved service.
The government is also confronted with
She necessity of deciding to what ex-
tent it is wiling 10 cooperate with
the other governments sf the vtarld
in international agreements regarding
telegraph, cables and radio