Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-08-10
RADIO CODE CHANGE
TO INCREASE COSTS
Adoption of Cortina Report
to Add S15,000,000 to
u. S. Business.
BY MARTIN CODEL.

| Technical advisers of the American
! delegation designated To take up the
Cortina cable radio code word report
at the International Telegraph Confer
ence at Brussels September 10 met in
the State Department today in an ef-
fort 10 unity American policy respecting
proposed changes in regulation that
! may add from SIS 100000 to $40 600 900
year 10 the bill paid by American
+ citizens for international telegraph
services
All users OF cable and radio for
tranSoceanic communication, particu-
larry banking houses and foreign trade
concerns. are affected by the proposed
changes. Although not a member of
the International Telegraph Union and
Deputies. and having had no part in
framing The C0rtina report. the United
States finds itself vitality interested
because ii is the source and designa-
tlon Of SO much cable-radio traffic
The majority proposal Of the Cortina
report, SO named for the Italian town
where the committee which drew 1t met,
is that the International code word
which now has a maximum of 10 let
tiers, be reduced 10 letters Although
the length OF the word is cut in half
and 1t would seem that the rate would
Spondinglv be reduced so per cent.
the cable and radio companies propose
that the charge for the 5-letter rate
word shall be 68 per cent of the charge
now made for the l0-letter word.
One-Third Increase
This would. in effect, amount TO
SO per cent increase in rates. Shorn
Of its technical complications, the eff
AEF NF ftSA F1sH Npff sal faY
ward by Ia of the Is signatory govern
ments will be to add substantially TO
the tremendous amount paid annually
by American business for its interna-
tional word traffic. for SIS per cent of
its messages are sent in code.
Users Of the cables for code traffic
are the largest group affected. since
the cables still carry the bulk Of trans
oceanic traffic, because of their secrecy.
but the users Of radio. already a keen
competitor Of the cable, also have
great interest at stake In fact their
interest may be said to be even keener
II the belief is shared that radio some
cay will entirely displace the cables III
international communications To-day
the Radio Corporation of America
claims 10 be handling one-fifth of the
transoceanic traffic.
High operating costs by foreign
eableradio administrations, which al
most without exception are government
monopolies, are given as the primary
reason for the proposed reduction in
letter count and consequent increase
in rates. American communications
companies, all privately owned have
been inclined 10 go along with the Cor
tina majority. But they do not favor
as great an increase in rates as the
Cortina code word change would in
voIve.
American business, ON the other
hand. wants no increase al all It's
representatives agree with the minority
Cortina report, filed only by the British
delegation, recommending that the
present status as regards word count
and tariffs be maintained and modified
regulations and new restrictions be
placed on the formation OF code words.
Big Boost i'm Costs.
One of the technical advisers repre-
senting business-C O. Pancake OF the
Guarantee Trust Co, New Yosk-esti-
mated today that New York banking
houses alone. viii have So 900 900 added
to their foreign radio-cabie bills If the
increase is granted One Of the mem
beers OF the American delegation.
Charles Fl. Shedd, telegraph chief for
Swift g. Co. packers. is authority for
the estimate of Sl5.000.000 TO 10000
900 added to the American cable radio
bill each year,
AS explained by w. r. Valance. rep
resenting the State Department as one
Of the technical advisers, the whole
problem resolves itself into determi-
nation whether costs Of operating the
communications systems Of the respec-
tive countries justify the proposed rate
increases. The international confer
ence must render rate decision not
unlike the railroad rate decisions
handed down in this country by the
Interstate Commission he said
This country will sit in the Brussels
conference at a disadvantage. While
the United States Government has adj
hered TO the International Radio-Tele-
graph Convention. 1t Is not a member
OF the international Telegraph Union.
and its delegates go merely as observers
without voting powers.
Mr. Shedd was the only delegate at
today's conference. Besides Mr. VAL
lance and Mr. Pancake, all the other
technical advisers were there. They
are Harry r. Golfer OF the Nterna-
tionai Accounts Section. Department of
Commerce. Maj William Friedman OF
the Code and CIPHER Section. Army
Signal Corps, and Lieut.. Edward NJ.
Webster, communications officer. Coast
Guard They will comprise the party
sailing on The Leviathan August IS
The chairman OF the delegation Is
Leland Harrison former Assistant Sec
rotary Of state and now Minister to
Sweden, who Is in Europe The other
delegate Is John GoIdhammer. vice
president OF the Commercial Gable Co.
who is in London.
Copyright. 1923. by North American
Newspaper Alliance