WORLD’S TELEPHONES

Greymouth Evening Star, 2 September 1927, Page 9

WORLD’S TELEPHONES

FIGHT FOR CONTROL.

The thought of telephone wires linking up the far corners of the five continents, girdling the whole earth, is romantic enough in an obvious way, but the wire-pulling of the telephone magnates that goes on quietly in the world’s big capitals is a romance* l of commerce that deserves to be better known. There is a war going on, in a commercial sense, for the world’s telephones (says a London writer). It requires almost a mental effort for an Englishman to conceive that anyone should fight to supply or mend a telephone. Such a thing is not done in this country.

We regard the telephone here as a drab convenience or nuisance, which no one ever wants to repair if it gets out of z order. No G.P.O. official ever waits upon the backstairs to influence the mistress or bribe the servants to get the telephone installed.

But in other climates, other manners. The big international telephone companies are fighting each other for new business.

The fact is there is a lot of money to be made out of telephones—manufacturing the equipment , installing the instruments and lines, and maintaining the service. There are still oceans of space for more telephone wires, whilst automatic telephone exchanges are still in their infancy. A survey of the distribution of the world’s telephones last year found 61 per cent, in the United States, with 106,000,000 inhabitants; 27 per cent, in Europe with a population of 475,000,000; and 12 per cent, in other countries.

For every hundred people in the United States there are about fifteen telephones, in Europe about one and three-quarters, and in Central and South America about three-quarters. The average European town of 10,000 population is at present served by 140 telephones, while a town of the same size in the United States is served by 1420.

Hence the scope for telephone development outside the U.S., and hence the fight for the business. The two chief international competitors are the International Telephone and Telegraph Corporation, with its offices in New York, and the International Automatic Telephone Company with its offices in London. The former is 100 per cent. American, and closely allied with the great American Telephone and Telegraph Company, popularly known as the Bell Company. “International,” in fact, was formed to get the world’s business in telephones outside America for Americans. Its president, Colonel Sosthenes Behn, is determined to get It. Sir Alexander Roger is chairman of International Automatic. Unfortunately, it is not possible to maintain that the company is 100 per cent. British. It was formed in 1920 to develop in particular the Strowger . system of automatic telephones, invented and made by the Automatic Electric Company of Chicago. The bulk of the machines are made in Chicago.

The fight between these two companies is becoming tense. “International” is firmly established in Central and South America and in Spain, where it has the monopoly. Six months ago its Spanish subsidiary, Compania Telefonica Nacional de Espana, completed a long distance telephone system connecting the four distant corners of Spain, and opened automatic telephone exchanges at Santander and Madrid. Thanks to “International,” Spain is ahead of England in telephone efficiency. The next ambition of Colonel Behn is to operate a long distance telephone service between London and Madrid.

He recently acquired control of AllAmerican Cables, for the purpose, not so much of dominating the cable system between Central and South America as for consolidating his telephone interests in certain South American countries. He followed this acquisition with a purchase for cash of a controlling interest in the Monte Video Telephone* Company. He has hopes of extending a new telephone system from Monte Video throughout Uruguay. More recently he has purchased control of the Chile Telephone Company. But the International Automatic is carrying the war to the frontiers of the other “International” territory. Sir Alexander Roger has been appointed to the Board of Anglo-Portuguese Telephone, which presumably the International Automatic is absorbing. Sir Alexander also claims that he has secured control of British Columbia/ Telephone Company and two other telephone companies in South America, whose names have not yet been disclosed.

The same fight goes on in the manufacture of telephone equipment. The International Automatic controls the Automatic Telephone Manufacturing Company, which is carrying out some big contracts in Tokio, Sydney and Canberra, and for the G.P.O. in this country. The “International” of Colonel Behn manufactures through the International Standard Electric Corporation, which has manufacturing plants in six countries and is building a big new plant at Wembley. The combined sales of International Standard last year amounted to nearly £8,000,000. Where ever there is a chance of automatic telephone systems being installed, Sir Alexander Roger is found bidding against Colonel Behn.