Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-10-16
By JOHN A. GILES

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The Air Forces multi-billion
dollar semi-automatic air de-
Tense system tSAGE) has hit yet
another Governmental snag but
Uficials expressed confidence
yesterday that the matter could
be cleared up promptly.
The Federal Communications
Commission has notified the
American Telephone & Tele-
graph Co. that its application for
Q license to construct facilities
for the vitality important air.
craft warning netwoI which
extends into the ArctIe wastes,
contained insufficient iustifica-
ton. 1851
SAGE burst into the headlines
September 20 when It vas re-
yealed that the General Account
ing Once had turned thumbs
down on Air Force financial arr
raneements with the company
providing high speed communi-
cations. The deal involves an
estimated outlay Of $2.4 billion
over ten years. Additional BIZ
lions are being spent for sites
and construction work.
The FEC said the sole justin
cation cited by the company was
its contract with the Air Force.
It then took notice of GAGS
question as to the authority Of
the Air Force TO enter into such
Q contract without specific con-
gressional action.
Work Set for FAN
Actual work by the telephone
company Is set for late this fall.
The FEC action. II not reversed,
would postpone construction Of
The system which is designed TO
give the Air Defense Commands
Nike guided missile batteries and
lighter aircraft hours Of warning
0f the approach Of enemy atomic
bombing planes. The GAO ac-
ton did not stop the plans for
the system.
Ofiicials Of the AT6sT and
more particularly the Air Force,
now must 60 before the Conn
mission and Justify SAGE In
terms Of public interest. This
Is the justification Of all appii-
cants for licenses before the
FEC.
Since House Democratic
Leader Mccormack Of Massa-
chusetts first disclosed the GAO
action. Secretary Of Defense
Wilson has taken an active part
IN the efforts to clear up the
difficulties so that SAGE can be
expedited.
He wrote six-page letter to
Controller General Joseph Camp
bell setting forth the legal basis
for the Air Force contract with
AT&T. He then paid q per-
sonal call on Mr.. Campbell TO
urge reconsideration.
When the FEC action became
known in the Pentagon late last
week there were hurried top
level conferences. Mr.. Wilson.
who had returned only a few
hours earlier from Paris. again
hoped into the breach.
It was said that he got assur-
ances that the door for further
consideration by the Commits
sion was wide open and that the
agency would be glad to consider
new arguments.
It was the second time during
the week that SAGE had come
into the news. On Wednesday,
the same day FEC sent its letter
to President Cleo Craig of AT&T,
Western Union protested rate
cuts by the firm for the multiple
service to the Air Force.
In asking FEC to block the
rate Of reductions involved In the
agreement, Western Union said
they are designed to eliminate
It from the private wire field.
AT&T proposes to offer both
Government and commercial pa
irons a progressive discount
when the customer uses more
than three communication chan
nels. SAGE would use upwards
Of IS channels.
While the method Of financing
eAoE has been In dispute. the