The Daily News SATURDAY, SEPTEMBER 28, 1929. IMPERIAL COMMUNICATIONS

Taranaki Daily News, 28 September 1929, Page 8

The Daily News SATURDAY, SEPTEMBER 28, 1929. IMPERIAL COMMUNICATIONS

To-morrow the working of the Imperial cables and beam wireless services to the Dominions and India, now operated by the British Post Office, are to be transferred to the Imperial and International Communications Company. This marks the completion of a stage in the ultimate transfer of all Empire wireless and cable services to the new company, and is interesting as denoting the changed attitude in Great Britain in regard to the control of public utilities. At one time it was political heresy to suggest that in such matters as a telegraph or telephone service private enterprise might be able to give a more effective and cheaper service than the State. When Americans visiting' England, for example, complained of the archaic telephone system and the regulation-ruled telegraph service of the British Post Office, and claimed that similar services run by private enterprise in the United States were bettei’ and relatively cheaper, they were met with the assurance that Government control of such utilities was a fixed belief in British public life. In the cable services more latitude was admitted, even in British circles, mainly because of the far-seeing and progressive policy adopted by the cable companies. Extensions and services were developed in a manner which kept Britain in the forefront in regard to cable communications. It was true that while cable services were efficient they were at the same time extremely costly. The outlay had been heavy, but when provision had been made for this the cost of cabling was still maintained at a high figure- The next phase arose out of the quickened appreciation of the Empire as an entity, for which the late Joseph Chamberlain will always be remembered. With that came the inspiration for an all-Empire cable service, partly for security in war time, and partly to foster closer communication between the various portions of the Empire. The establishment of the Pacific cable was the outcome, and in this New Zealand took an active part. The success of the new cable service was undoubted. If it did not reduce transmission rates as much as was hoped it did at least bring about some reduction, and the wisdom of public control of cable services seemed to have been unmistakably demonstrated. Through the years of the Great War the British cable services were subjected to an enormous test, and stood up to it in a manner that was the admiration of all who had occasion to use them. At the close of the war there seemed nothing more firmly fixed in the life of the community than the -cable services, public and private. But the advent of wireless telephony introduced a new element of competition. The reliability of the “beam wireless” became almost equal to that of the cable, and rapid improvement was made in regard to the secrecy of messages transmitted. The wireless services required a fraction of the capital outlay required by the cables services; they were owned and controlled by private companies, which had shown considerable enterprise in research work, and had achieved remarkable results. It became a question whether there should be rivalry between cable and wireless services or coordination. After, full consideration by all parties interested, including New Zealand as one of the partners in the Pacific Cable, an amalgamation of interests was decided upon, and the Imperial and International Communications Company came into being. Though its direction and policy are left to private enterprise there are certain safeguards in the public interest and to protect it from exploitation. The substitution of private for public control in Empire communication services is an experiment on a large scale. It commences as a happy issue out of a conflict of interests that might have meant waste of effort and money- If it can prove that better and cheaper service is possible the devotees of the theory that only the State should function in such matters will have another nut to crack.