Evening star., 1928-11-24
BRITAIN TO UNITY
CABLE AND RADIO
Wire and Wireless Systems
Placed Under Control of
One British Syndicate.
BY MARTIN CODEL.

BY MARTIN CODEL.
Great Britain's decision to unity its
cable and radio systems and place them
in the hands of a great private holding
and operating company under govern
ment supervision created considerable
interest among American Government
officials dealing with communications
problems. A counter movement in this
country for the purpose of competing
with the British merger for interna-
tional traffic has many times been dis
cussed, and there have been intima-
tions that the subject might be brought
before Congress.
The cable-radio merger of the British
Empire is said to have been forced by
the competition that cables were suf-
fering from the Government-owned beam
radio system for transmitting messages
directionally over great spans. When
the cable interests threatened to scrap
some of their Strategically valuable
lines an imperial wireless and cable
board was set up to study the situation
and to recommend remedy.
The vote of the British House OF
Commons, approving the merger over
strenuous opposition from the Labor
party, was the direct result of recon-
mendationS of the board. Since the
system will embrace practically all of
the wireless facilities of the whole Brit
ish Empire, the approval Of Canada,
South Africa, Irish Free State, Aus
tralia, New Zealand and India must
yet be obtained. It is clear that these
governments will ratify, inasmuch as
they were represented on the board and
concurred in its proposal to form the
great private company.
Lease Radio System.
The communications company, as the
merger will be known, will lease the
beam system from the governments
radio service that has consistently been
taking traffic from the cables and vir-
tually impoveriShing them. 1t will pur-
chase the Pacific cables, the West In
dian cable and the British post Offices
Atlantic cables. The whole British En-
pire, already linked by a worldwide
directional radio system, whose eff
cheney can be judged from reports that
its beam tranSmiSSionS consistently ride
through disturbances like the Indian
monSoons, Is made a communication
chain of vast magnitude and perhaps
leading Importance in the world.
Informed Government officials, mind
full of the antitrust laws making
unification of wire and wireless interests
illegal for this country, and pointing to
the specific terms of the radio act pro-
hibiting mergers of cable and radio,
were not willing to say that the British
merger means that the United States
ought to sanction a similar merger.
Statements Of leaders in the radio field
were recalled, however, indicating that
such project may be laid before Con-
greSS by communications companies
seeking amendment of the existing
laws.
The real effect of the British merger
is that it places in commercial hands all
communications exterior to Great Brit
ain, enabling them to compete at an
advantage with the non-unifled Amer
ican cable and radio groups. These
must ''go it alone" not only for message
traffic but for exclusive landing" con-
cessionS in places like South America.
Conceivably, the British might keep
American radio stations out of many
countries by simply pointing to their
superior strength in both cable and
radio fields throughout the world.
Requires Gable Maintenance.
There Is, however, q proviso in the
British agreement which requires main
tenance of the cables. This is very
costly, and will serve to hold rates up.
But II a rate warfare does ensue the
lowering of American rates will inevi-
tably hurt American cable business
The cable people so far have disclaimed
any i'll effects from radio competition,
even though radio has cut rates some
35 per cent In recent years. The radio
interests themselves say that they SIM
ply are taking up a share of nor
mally increased burden of traffic.
There was only slight disposition
here to link with the British develop
ment Canada'S demands for so per cent
of the continental short waves that
were to bedevided at the forthcoming
conference at Ottawa. 1t is possible
that Canada wants these circuits partly
for a transcontinental beam link in
the beam circuits clearing through
London for relay across Canada to Aus
tralia and New Zealand. On the other
hand, the Canadians made their de-
mand several days ago before the House
OF Commons voted, and Canadian off,
cials visiting Washington have repeat
edly said that they proposed to use the
short waves for communicating with
their frontier outpoStS and not where
land wire facilities are available.
At this time it appears as though the
Canadian and American governments
have reached a deadlock on the short
wave ALLEGATION project, and that the
conferences planned at Ottawa late this
month or early in December will not be
called. Canada, perhaps in reprisal
for the meager allotment of exclusive
wave lengths it has obtained for broad
casting under the much-protested gen.
tlemens agreement with the United
States, has refused to confer unless it
receives assurances beforehand that the
Dominion will get half the high-fre-
quency channels that will be available
for allotment.
Copyright, 1928, by North American,
Newspaper Alliance.)