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5/21/43
FCC WOULD REDUCE SOUTH AMERICAN MESSAGE TOLLS
The Federal Communications Commission this week released its Proposed Report in Docket No. 6046, in which it was concluded that a substantial reduction should be made in the rates for tele¬ graph messages between the United States, on the one hand, and the countries of South America, Central America, and the West Indies, on the other. The reductions proposed will mean a saving to the users in excess of $1,300,000 annually.
With respect to the rates for telegrams between the United States gateways and the other countries of the Americas, the Propos¬ ed Report treats primarily with the rates of All America Cables and Radio, Inc. , which is by far the principal United States carrier handling such messages. It is concluded in the Proposed Report that All America’s present rates are excessive, in view of the company’s high rate of earnings, and that its rates should be reduced on an annual basis in the amount of at least $1,320,000 below those in effect during the year 1941.
Three general principles for the disposition by All America of the amount of the reduction are set forth in the Proposed Report. These principles are as follows:
(1) Uniformity of rates to countries within the same geo¬ graphical region, or the establishment of the same charges for tele¬ graph service between New York City and all points in South America, between New York City and all points in Central America, and between New York City and all points in the West Indies,
(2) Equalization of rates for northbound and southbound mes¬ sages, or the establishment of the same rates in terms of United States currency for telegraph messages in either direction between the United States and the other countries of the Americas.
(3) Unification of the rates for ordinary and code messages, or the elimination of the present differential of forty per cent between the two classes of messages, rates for ordinary and Govern¬ ment code messages presently being sixty per cent of the rates for ordinary and Government plain language messages, respectively.
It is also concluded in the Proposed Report that the existing differential in landline factors for interAmerican tele¬ graph traffic be eliminated and it is suggested that a flat land¬ line factor of 4<^ be applied to all points in the United States beyond the communication gateways, in lieu of the existing variety of landline factors which are fixed by various landline zones. If the carriers are not prepared to adopt such a flat landline factor at this time, the Proposed Report provides that the present land¬ line factors be revised so that they will approximate charges for comparable domestic messages which receive similar handling within the United States.
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