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1926-27.

THE PARLIAMENT OF THE CO MMON,VEALTH OF AUSTRALIA.

REPORT OF THE

COMMISSION WIRELESS

TOGETHER WITH

APPENDICES.

P1'esented by Command; orde1·ed to be printed, 5th October, 1927.

ON

[Cost of Paper :- Preparation not given; 970 copies; approximate cost ol printing and publishing, £32 .]

Printed and P ublished for the GoVERNMENT of the CoMMONWEALTH of AusTRALIA by H. ,J. ' ·.REEN, Govern·.nen t Printer for the State of Victoria. No. 1 2 1 .-F.l2255.-PRICE I s. 3D.

156 !J

Personnel of Commission

Terms of Reference

Terms of Commission

Summary of Recommendations

Names of Witnesses

Part I;-Introduction to Report

H.-Broadcasting and Relay Stations

III.-Licences, Fees, &c.

TV.-Copyright and Performing Rights

V.-Patent Royalties VI.-Programmes ..

VII.-Scientific Research

VIII.-Education

IX.-Land an.d Coastal Stations X.- Weather Forecasts

XI.-Defence--Naval, Military, and Air XII.-Fire Prevention and Police XIII.-Lighthouses and Radio Beacons

XIV.-Ships' Installation

XV .- Present Control and Future Development

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Appendix I.-Section 19 of the British Copyright .Act 1911

H.- Sections 87, 91A, and 93 of the Patents Act 1903-1909

IlL-Section. 231 of the Navigation Act 191_ 2- 1920

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PERSONNEIJ OF COMMISSION.

-_ II· HAMM; K.Q.

Sm ,JAMEs A. M. ELDER, K.B.E. 0. E. _ Esq., M.1 .. ... 4._ .E., M.I.E ..

A. J. ·B. McMASTER, ERq.

Secr·etary; C. N'AN'CE.

TERl\iS OF REFERENCE.

To inquire into and report : . r: . : .

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(1) Wireless broadcasting within the Commonwealth in aU its aspects, making :. ·recommendatiollB as· .to ·any alte1·ations deemed de-sirable:-· in-: :the and and practices a.t present in force; . .. :. c: : _ - ' _: • ' .

(2) The development and utiliza!-.ion of wireless serVIces for public requirements within the Comnton wealth.

COMMONWEALTH OF AUSTRALIA.

GEORGE THE FIFTH, by the Grace of God, of the United Kingdqm of Grea. t Britain and Ireland and of the British Dominions beyond the Seas King, Defender of the Faith, Emperor of India.

To Our Trusty and Well-beloved:

GREETING:

JoHN HAROLD HAMMOND, Esquire, K.C., Barrister-at-law. Sm JAMES ALEXANDER MACKENZIE ELDER, K.B.E. CLAUDE EDWARD CROCKER, Esquire, M.I.Mech.E., M.I.E.E. JoHN MoMASTER, Esquire.

KNOW YE THAT We do by these Our Letters Patent, issued in Our name by Our Deputy of Our Governor-General of Our Commonwealth of Australia, acting with the advice of Our Federal Executive Council, and in pursuance of the Constitution of Our said Commonwealth, the Royal Commissions 1902-1912, 'and all powers him enabling, appoint you to be

Commissioners to inquire into and report upon-

(l) Wireless broadcasting within the Commonwealth-in all its making recommendations as to any alterations deemed desirable in the policy and practices at present in force ;

(2) The development and utilization of wireless services for public requirements within the Commonwealth.

AND WE APPOINT you, the said JOHN HARoT.D HAMMOND, Esquire, to be Chairman of the said Commissioners.

AND WE DIRECT that for the purpose of taking evidence three Commissioners shall be sufficient to constitute a quorum, and may proceed with the inquiry under these Our Letters Patent.

AND WE REQUIRE you with as little delay as possible to report to Our Governor-General of Our said Commonwealth the result of your inquiries- into the matters entrusted to you by these Our Letters Patent.

-IN TESTIMONY WHEREOF We ,have caused Our. Letters to-be made Paten:t and the Seal of Our said Commonwealth to be thereunto affixed .

WITNESS Our Right Trusty and Well-beloved ARTHUR HERBERT TENNYSON, BARON SoMERS, Knight Commander of Our Most Distinguished Order of Saint Michael and Saint George, Companion of Our Distinguished Service Order, Military Cross, Deputy of Our Governor-General and Commander-in-Chief in and over Our Commonwealth of Australia, at Melbourne, in the State of Vi ctoria, and in the Commonwealth aforesaid, this twenty-eighth day of January, in the year of our Lord, One tho\].sand nine hundred and twenty-seven, and the seventeenth year of Our Reign.

SOMERS,

By His Excellency's Comma-nd,

Deputy of the Governor-General.

EARLE PAGE, Acting Prime Minister.

Entered on Record by me, in Register of Patents, No. 25, page 490, this twenty-ninth day of January, One thousand nine hundred and twenty-seven. F.fSTRAHAN.

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COMMISSION· ON WIRELESS.

SUMMARY OF RECOMMEND.A.TIONS. BnoADCASTING AND RELAY STATioNs.

1. That the control of broadcasting stations should remain in the hands of the General as at present, subject to the administration by an Australign vVireless Committee hereinafter rec.omme.nded and to the following furtbeT recommendations.

2. That the Postmaster-General should issue no further " A " Class licences until he is satisfied that the · available revenue and the need of a satisfactory service justify such issue.

3. That the revenue derived from listeners' licence fees throughout the Commonwealth should be pooled and distributed as follows :-- ·

(a) Deduct therefron1 the Postmaster-General's proportion to cover the cost of administration and departmental research; (b) Pay to eaeh " A " Class station thereout, the amount of £5,000 towards working expenses; _

(c) Distribute the balance of the ava.ilable revenue amongst the "A" Cla::-:ls stations under and in aecordance with the present regulations.

4. That the eo-operation of the stations to effect interchange and improvement of programmes and more equitable distribution of revenue subject to strict control by the Australian Wireless Committee to secure efficient servir,e to the public should be encouraged.

5. That the Australian Wireless Committee should deal with applications for licences for relay stations on their merits and the Com1nission does not recommend any obstruction being placed in the way of such proposals and land lines should be made available at the lowest possible rental.

6. That until further research · has been made · into the relative merits of higher-power stations and relay stations, licences for the former should not be granted. That research to determine this question should be put in: hand as rapidly as possible.

7.· That a re-allocation of wave lengths be made immediately within the.present wave bands.

8. That the location of all -existing broadcasting ·stations should be reviewed before the expiration of the licences and that it be referred to the Australian Wireless Committee to determine in each State the most suitable location for present and future broadcasting stations. In determ.ining the position, the evidence of Electrical Conunander Cresswell, and of Messrs. Fisk and Beard, as to the grouping of stations, should be given serious consideration and the

Defence Department should, in every case, be consulted.

9. That the provisions of Regulation 74 (under the Wireless Telegraphy Act 1905-1914) should be rigidly adhered to and enforced.

10-. Th&t regulations should be framed restricting the advertising rights of "A" Class stations especially where "B " Class stations are operating.

11. That regulations should be framed requiring all "A" Class broadcasting stations to submit balance-sheets and accounts to the Postmaster-General for submission by him to the Auditor-General.

12. That " B " Class stations should be limited to a transmitting power that will not seriously interfere with transmission from "A" Class stations and that the Australian \Vireless Committee should immediately proceed to fix a maximum power for " B " Class stations.

13. That the number of " B " Class stations should be strictly limited in proportion to the population in the area in the vicinity of the proposed sites.

14. That all broadcasting stations should be given clearly to understand that they have no vested right to the renewal of licences at the expiration oi existing licences.

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LicENCEs-FEEs, ETc.

1. That the Postmaster-General should reduce the listener's licence fee by such amount as will give_ listener-in the full advantage of auy re_ d;u_ced royalties,_ payable_ hy Companies to Amalgamated 'Vireless (Australasia) Limited and/or to the Australasian Performing Right Association Limited .and also of any surplus in the amount collected by his department and not utilized for the purposes of administration and research.

2. That where a person satisfies the he is a blind person, a licence

to establish and maintain a. wireless receiving set. should be gri:l;nted subject to such terms and conditions and restrictions as the Postmaster-General may think :fit,-·but without payment of any fee. · · - · · · · · -- · - · ' · · ·· : -- · : : . ·

3. That it be referred tn the Australian Committee to allot defirnte wave bands to experimenters and due be· given to the request of 'the Wireless Institute of

herein. , .

4. That the regulations should be liberalized to permit greater freedom of exchange of non-commercial messages . between 5. Tha.t in cases w]lere an employer holds a dealer's listening licence, he shou.ld be entitled to, the issue to his employees of further licences at reduced fees. . _ . , ·

6. That regulations should be framed compelling radio dealers to keep -a register in which shall be entered the names and addr_ esses of all purchasing complete. sets, and the types and prices thereof and that such register sha!1 at all reasonable times · be available for inspection by the officers of the Postmaster-General's Department. ·.

COPYRIGHT AND PERFORMING RIGHTS.

1. That per"Sons broadcasting copyright musical works should be made liable . to pay royalties to the owners of the copyright.

2. That the principles of Section 19 of the B?itish Copyright Act 1911, Act 1 and 2, Geo. V., Chapter 46 as expressed in the Schedule to the Commonwealth Co_py1·ight Act 1912 (Appendix No. 1) should be extended to the broadcasting of copyright musical works by radio. ·

3. That, inasmuch as by Section 19 of the British Copyright Act 1911, the royalty allowed to be chargad (or is based upon the orflinary retail selling price of the contriYance usrd in the puhJication. and this of conr:se cannot be directly applied to broadcasting, some other ba,sis must be adopted. · ·

4. That the Commonwealth representative at the Inte:rnational Oonfere.nce should advocate: that, so far as the Oommonwealth concerned, a limitation be placed vn the royalty chargeable for broadcasting copyright musical works as follows :- - .

·· {a} In the case of broadcasting -stations receiving revenue from licence fees, five rer centum of the gross revenue of the broadcasting station, or alternatively, at the option of the owner of the copyright, fou.rp(mce per performance of each· musica.l work ; (b) In the case of broadcasting stations not receiving revenue from licence fees ,

fourpence per performance of each mur:ical work ; ·

(c) In both cases (a) and (b) no limitation should be pla.ced on the number of copyright items which the broadcasting company may broadcast: (For the purposes of sub ·clause (a) gross revenue will, in the case o£ broadcasting ;;;tations within the Commonwealth be deemed to include any proportion of licence fees otherwise due to t}Je broadca<>ting stations bnt which are for any reason withheld by the Postmaster-General.)

PATENT RoYALTIEs.

The Commission is of opinion-1. That the charges made by Amalgamated Wireless (Australasia) Limited on broadcasting companies are excessive, and that they should be reduced to a royalty of 2s. on each listener's licence, · - ,

2. That charges mq,de by Amalgamated Wireless (Australasia) Limited on radio dealers are also excessive and detrimental to the development of wireless services within the Common­ wealth, and -that they should he' reduced to a royalty of 5s. on each such royalty

to include one valve for each valve-holder. . .

· .3 .• Tha,t attitude of the Company with to claims for royalty on separate valves should be immediately defined, and the claims against traders should' be abandoned so far transactions on or previous to the date of publication of this Re:port are concerned.

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4. That tl:ie charges made· by .Amatgamatedr Wirel.ess · (Australasia) Limited on revenue earning "B " Class broadcasting stations should be limited to 10 per cent. 'of the gross revenue· of each,station.

The Commission recommends :-1. That the Commonwealth Government should request Amalgamated (Australasia) Limited to comply With the requirements cont ained in the foregoing paragraphs.

Wireless ' four (4)

· -2. That fajling compliance with the foregoing requirements, the Commonwealth should take s_teps't6 acquire the shares privately held in the Ccnnpany on just terms to t he private shareholders.

. 3. That prior to the acquisition of shares, the Company should be directed to take all steps to obtain an early decision on the validity of its patents. 4. That the recommendations of the as to royalties on patents should be given

effect to both as to future and also as to current licences as fmm the date of the publication of this PROGRAMMES.

· · · ']. That in States where there are two " A " Class broadc asting stations, regulations should be framed to ensure that both stations will not during the evening sessions hroadcast news matter, including sporting information, at the same time. and that the stations should alternate the service . d' 1 1 ' peno wa 1y. · · . _

2. That the" A" Class stations should be required to provide announcers who are proficient in the correct use and pronunciation of the English language.

SciENTIFIC RESEARCH.

L ·That a special appropriation sufficiently large to enable the present problems in radio to be thoroughly investigated should be made available to the Council for Scientific and Industrial R esearch. E DUCATION.

1. That broadcasting stations should be encouraged to include advanced educational matter in their programmes.

LAND AND CoASTAL STATIONs.

1. That all land and coastal stations should be by the Federal Government

and p laced under the control of the Postmaster-General. 2. That the consideration, if any, to be paid to Amalgamated Wireless (Australasia) Limited for such stations shall be determined in the event of dis_agreement in the same manner as on the occasion when the said stations were aequired by Amalgamated Wireless (Austral{tsia)

Limited, special regard being had to _ the fa ct that the- stations are being operated at a loss . 3. That Hobart Wireless Station (V.I.H.) should provide a continuous service, and should be utilize;d as a means of improving communication between Tasmania and the Mainland. 4. That the attention of the Northern Territory Commission and the Postmaster-General should be drawn to the represent ations made to the' Co"mmission as to the need of further wireless stations in the Northern Territory. ' ·

5. That, provided sufficient guarantees of are forthcoming, the Postmaster-General should 1'!-nd telegraph wireless for the service of the country

press and others reqmrtng such services .

WEATHER FoRECAsTs.

The Commission is of opin:ion-1. That if the Commission's recommendation as to land and coastal stations is adopted, namely, that they shall be acquired by the Commonwealth and transferred t o the Postmaster­ General's Department, the matter of securing the dissemination of weather forecasts and meteoro­ logical information will become the duty of 'that Department, and no further recommendation in this connexion is therefore necessary.

· DEFENQE---.NAV04.L, MtLITARY, Am.

1. That an Inter-Departmental Committee,: consisting of representatives of the Naval, Military, and Air Forces, the Prime Minister's Department, the Chairman of the proposed Australian Wireless Committee, and -the Wireless Services Offi.cer, should be constituted to co-ordinate the various wireless services within the Comn:1onwealth from the Defence point o-f view.

FmE PREVENTION. AND PoLICE.

The Commission is of opinion-1. That no change is necessary in the Acts and Regulations governing wireless, so far as .fire prevention and police are concerned.

LIGHTHOUSES AND RADIO BEACONS.

The Commission is of opinion-1. That in view of the rapid development that is taking place in, automatic appliances · suitable for conveying wireless warnings, and in view of the conditions generally prevailing on the Australian coast, there is at the present time no justification for n1aking any recommendation for further action that is being taken by the authorities now in control. Attention might, however,

be given to the development above mentioned in automatic appliances.

SHIP's INSTALLATIONS.

1. 'I'hat, in cases where State legislation on the subject does not exist, representations should be made to the State Governments concerned to bring vessels not trading beyond the limits of their respective States within provisions similar to those of Section 231 of the Common­ wealth Navigation Act 1912-1920.

2. That the Commonwealth Government should make representations to the owners of overseas vessels trading with Australia with a view to securing the publication on their ships of a larger proportion of Australian news. . '

PRESENT CoNTROL AND FuTURE DEVELOPMENT·.

1. That Amalgamated Wireless (Australasia) Limited should be made liable for the payment of terminal charges, and. that failing compliance with the Postmaster-General's demands in that respect, the Commonwealth should take steps to acquire the private shares held in the Company on just terms to the private shareholders.

2. That the position of the Company with regard to the establishment of further beam services should be defined.

3. That the relationship between the Postmaster-General and the Company should be more clearly defined.

4. That the provisions of the Wireless Telegraphy Act 1905-1919 should be so arrwnded as to enable the Postmaster-General's Department to more effectively enforce the Regulations as to unlicensed listeners. 5. (A) That an Australian Wireless Committee should be constituted under the control of the Minister administering the Wireless Telegraphy Act, such Committee to consist of the

Chairman, who shall be the Director of Postal Services for the time being, a Wireless Services Officer, and a Broadcasting Officer, and- ·

(i) That the duties of the Chairman shall be to supervise and co-ordinate all wireless and broadcasting activities within the Commonwealth with the exception of those · under the control of the Depart1nent of Defence ; ·

(ii) To convene meetings of the Australian Wireless Committee and of the proposed Inter-Departmental Committee for Defence purposes; (iii) To convene at least once in each year on dates to be prescribed a Conference between the Australian Wireless Committee and one representative from each

of the following bodies :-(a) "A" Class Broadcasting Stations; (b) " B " Class Broadcasting Stations ; (o) Institute of Australia;

(d) Radio Dealers and Manufacturers ; (e) Licensed Listeners-in.

(B) That the necessary regulations to give effect to the foregoing recommendations should be proclaimed. (C) That the duties of the Wireless Services Officer shall, subject to the control of the Chairman and the Postmaster-General, be the supervision of the working of all land and coastal Stations. ·

(D) That the duties of the Broadcasting Officer shall, subject to the control of the Chairman and the Postmaster-General, be the supervision of all matters relating to broadcasting.

Name.

Abbott, Thomas Kingsmill Abrahams, Louis Henry Akeroyd, Arthur Gordon Allard, Sir George Mason, K .B . Allsop, Raymond Cottam Armstrong, Thomas Bader, Henry Adolph Frederick Bain, John Leonard Baker, Charles Whiteway Balderson, John Loris . .

Bartholomew, Charles Percy Battle, Edmund Thomas Battye, James Sykes Beard, Ernest Gordon Bearup, Thomas William Bennett, Alfred Edward Bird, Leslie James Bolger, Leonard Joseph Bonnerup, Peter Madsen Bowden, Eric James Germaine

Broinowski, Leopold Thoma.s Brown, Alan Weymouth Brown, Alfred Louis Brown, Cla:rence Roy Brown, H arry Percy

Bunton, George ..

Cain, Rev. James H enry ..

Campbell, Frederick Alexander Campbell-Jones, Herbert Chandler, John Beals

Chapman, William George Cecil, Clive , .. ·

Co bcroft, William .. Collins, Arthur Collis, George Arthur ..

Colyer, Morton John Godden Condor, Walter Tasman Conley, William George

Conroy, William Henry Cook, George Alfred

Cooper, William Henry Cotton, Arthur Alfred Coxon, Walter Ernest Crawford, William Temillas Stephen . . Cresswell, Frank Gillespie . . . .

Cromie, Charles Thomas Crouch, Harold Henry Davidson, James Edward Davis, Captain John Kin,g Dibley, Walter :Pougl as, Hugh Alexander Downie, Frederick William

Edwards, Lewis David · Edwards, Sydney William Elford, Archibald Sefton Fagan, William Reginald J oseph Ferguson, Leslie George Fisk, Ernest Thomas Francis, Grosven or Arundell Fuller, John

Fynmore, Thomas .. Fysh, Ernest Samuel Fysh, Phillip Oakley Gabriel, Ernest ' ..

Gadsden, Stanley Wilkinson Gold, Edward Edwin Gray, Albert Edward .

Greenwood, Dr. Ernest Freem an Greig, Henry Grove, Harry Ernest Harkness, Bertie Clarence Harrington, Herbert William Hayman, William George Inglis Haynes, Edward John

Heinze, Bernard Thomas Hellier, Leslie John Leo Hettrick, William George Hindman, James Howard

Holmes, Marie ·

Holt, Bernard Molyneux Holtz, Alfred Christian Carlsen . Horley, Conrad Frank Hoskin, John Polkinghorn

Hosking, Charles Martin

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WITNESSES.

Designation .

Graziers' Association, Sydney Director, Victorian Radio Interests Ltd. Meteorologist, Forecasting and Statistical Divi&ion, Melbourne .. Chairman of Directors, Amalgamated Wireless (Australasia) Ltd., Sydney

Engineer, Broadcasters (Sydney) Ltd. (Station 2 BL) Radio Inspector, Postmaster-General's Department, Brisbane Chairman, Trading Committee, Wireless Development Association, Perth Associate Editor Popula.r Radio Weekly, Melbourne Listener, Bendigo Flying Officer, Technical Branch, Australian Air FOl'ce Director, Amalgamated Wireless (Australasia) Ltd. . . Listener, Tumoulin, via Cairns

Chairman of Special Committee, Western Australian Listeners' League .. Consulting Engineer, Theosophical Station (2 GB), Sydney Studio Manager, Broadcasting Co. of Australia Pty. Ltd. (3 LO) Manager, Theosophical Broadcasting Station (2 GB), Sydney Listener, Armidale Deputy Director of Navigation

P atent Attorney . Equipment Engineer, Telegraph and Telephones, Postmaster-General's Department, Hobart Associate Editor, Mercut·y, Hobart

Assistant Secretary, Listeners' League, Hobart General Manager, Central Broadcasters Ltd. (5 CL), Adelaide Manager, Sports Radio Broadcasting Co . Ltd. (5 KA), Adelaide • Direc tor of Posts and Telegraphs, and Secretary, Postmaster-General's

Department Listener, Mosman Acting Superintendent, Central Mission, Wesley Church, Melbourne Listener, South Yarra Managing Editor, Sun Newspapers Ltd., Sydney Manager, J. B. Chandler and Co., Brisbane

Officer in Charge, Applecross Wireless Station, Perth Listener, Kalgoorlie Listener, Grafton Listener, Alphington Radio Research Club, Hobart Primary Producers' Union, Sydney

General Manager, Broadcasting Co. of Australia Pty. Ltd. (3 LO) Member of Board of John Fairfax and Sons Ltd (Proprietors of S ydney Morning H erald, Joint Managers Australian Press Association) Postmaster-General's Department ..

Scientific Assistant, Council for Scientific and Industrial Research, Melbourne Listener, Albany . Wireless Institute of Australia (South Australia Division)

Manager, Broadcasting Station, Westralian Farmers Ltd. (6 WF) Chief Radio Inspector, Postmaster-General's Department, Sydney ·Electrical Commander, Royal Australian Navy and Director of Naval Communications, Melbourne

Managing Director, Oliver J. Nilsen and Co., Melbourne Graziers' Association, Sydney ·Managing Director and Editor in Chief of News Limited, Adelaide Director of Navigation, Melbourne

Managing Director, Paling and Co. , Sydney. Listener, Newcastle Senior Constable, Wireless Department, Victorian Police F orce Chief Inspector of Schools, Education Department ..

Secretary, Australasian Performing Right Association Ltd., Sydney Deputy Chairman, Australian Steamship Owners' Federation , Melbourne Graziers' Association, Sydney Listener, Sandy Bay, Hobart

Managing Director, Amalgamated Wireless (Australasia) Ltd., Sydney . . Member of Parliament, Kennedy .. Proprietor, Fullers' Theatres Ltd., Sydney .. Experimenter and Dealer, Mont Albert Listener, Surrey Hills Wireless Institute of Australia, Tasmanian Division Listener, Fisher's Creek, Brisbane • . Chairman of Council of Wireless Institute of Australia, Melbourne

"B" Class Station Licensee, Toowoomba .. Telegraphist, Department, Perth

Experimenter and Listener, Heidelberg . . . .

Business Manager, Australia Newspapers Ltd., Perth Experimenter, Canterbury .

Assi stant Under-Secretary, Department of Education, Sydney Radio Inspector, Postmaster-General's Department, Adelaide .. Lecturer in Electrical Engineering, Perth University Managing Director, 3 DB Broadcasting Co. Pty. Ltd., Druleigh Business

College, Melbourne Professor of Music, Melbourne University Listener, Wagaratta Radio Dealer, Mary borough . . . . . . • •

Manager, Electrical Supply Department, Brisbane City Council President, Housewives' Association, Sydney .. President, Wireless InstitutB, Perth Australian Newspapers Conference, Melbourne .. Public Accountant, Auditor, Broadcasters (Sydney) Ltd. (2 BL) Listener, Horsham Honorary Secretary, Listeners' League

1 57 ·

State.

New South Wales Victoria Victoria New South Wales

New South Wales Queensland Western Australia Victoria Victoria Victoria New South Wales

Queensland Western Australia New South Wales Victoria

New South Wales New South Wales Victoria w· estern .Australia Tasmania

Tasmania Tasmania South Australia South Australia Victoria

New South Wales Victoria Victoria New South Wales

Queensland W estern Australia Western Australia New South Wales

Victoria Tasmania New South Wales Victoria New South Wales

Victoria Victoria

Western Australia South Australia Western Australia New South Wales Victoria

Victoria New Soutli Wales South Australia

Victoria New South Wales New South Wales Victoria

Queensland New South Wales Victoria New South Wales Tasmania New South Wales

Queensland New South Wales Victoria Victoria

Tasmania Queensland Victoria Queensland vVestern Australia Victoria Western Australia Victoria New South Wa les

South Australia Western Australia Victoria ·

Victoria Victoria Queensland Queensland New South Wales Western Australia Victoria New South Wales Victoria Victoria

Name.

Rowarrd, Ernest Stephen Howden, Maxwell . , · Hugill, Herbert William Hume, Ernest James ..

I!ungerford, Richard Becher .. Hun:t, Walter . .

Jenkins, Joseph Bernard Jones, Frederick Cha.rles Jordan, Dorothy Joseph, Abrahams Frederick Kelsall, John Colvin Kiernan, Ron. Esmond Lawrence Knapton, Carlo Patrick John ,Tames

Kouper, Henrf Alexis .. .

Laby, Professor Thomas Howell Laird-Smith, William Latter, Louis Tranham

Laws', Sidney Frank Henry Lee, H arry Benjamin Le Plastrier, Cecil Woods Leverrier, Henri Macdonald, Donald . . Maclardy, William John Madsen, John Percival Bissing Malone, James

Marks, Frederick William McCahon, John McCann, Bernard Aloysius Medhurst, Frederick William Medhurst, Phillip Aubrey Mer field, Charles James :Middleton, Walter Guy Millett, James Henry Monkhouse, Walter Isaac Nangle, James Napier, William Rawdon Nat han, Reginald J ames O'Brien, Matthew Michael O'Dowd, Montaigne Eric Whitman Parsons, Rev. Frederick . . g_: ..

Pennington, Frederick Arthur Renshaw, Walter Phillip

Robinson, John William Ross, Alexander David

R udolph, Lynndivin R ussell, Harry Ambrose

Sander, John Henry Scott, George Archibald Senior, Evan Shakespeare, Thomas Mitchell

Smythe, Charles Spiers, George Spruson, Wilfred Joseph Stevens, Albert Edgar

Stevenson, Cecil Vincent Sutherland, George Sweeney, Walter Moss Tapp, Charles Ernest Taylor, George Augustine Taylor, George William Terry, Walter Thomas, H erbert · Thompson, John Truman, Herbert Henry Tuckey, Charles H enry Turner, John Enoch Voigt, Emil Robert .. Wallach, Bernhard W alltnan, Reginald Horton Walker·, Harold Christie

Waterhouse, Arthur Graves .• Watkins, William Trevor Wetherill, John Whitelaw, }l.iax Wilkes, Robert Williams, Thomas Reece Wilson, Stanley Eric

Wilson, Willia-m Wishaw, John Albert Young, Walter Pearson

xii

Designation.

Secretary, Wireless Listeners' League . E xperimenter, Box Hill Radio Dealer, Dubbo . . . . . .

Proprietor, "B.' ' Class station (5 DN), Adelaide Manager, Standard Telephones and Cables Co. Teacher of Elocution, State Conoorvatorium

I

Assistant, Prime Minister's Department, Experimenter, Sydney . . , . . .

Lecturer, Women's Session, Btoadcasrers (Sydney) Ltd. (2 BL) .. General Manager, Queensland Country Press Ltd., Brisbane Listener, _Ballara t · . . . . . .

Managing Director, Associated Radio Co. of Australia, Melbourne (3 AR) .. Vice-President, Wireless Developmant Association, Perth . . . .

Chairman of Directors, Brisbane Newspaper Co. Engineer, Central Broadcasters Ltd.,. Adelaide .. Technical Adviser, B.roadcasting Co. of Australia, Melbourne Wireless Ciub; Burnie . • • . · . , ..

Official· R epresentative, New South Wales Public School Teachers' Federation ·

Manager-, Tasmanian Broadcasters Pty.;Ltd, (7 ZL) Chief Officer, M-etropolitan Fire Brigade, Melbom-he Patent Attorney, Melbourne Australian General Electric Oo. Ltd., Sydney . . . .

Managing Director, Tasmanian Broadcasters Ltd., Hobart (7 ZL) Managing Director, Broadcasters (Sydney) Ltd. (2 BL) . . . .

Professor of EleGtrieal Engineering, Sydney lJniversity . . · ..

Chief Manager of Telegraphs ahd Wireless, Postmaster-General's Depart-ment Experimenter, Coogee • . Director, Victorian Radio Interests, Melb<;mrne Secretary, Musicians' Union, HobM't Experimenter, Hobart. Medhurst and Sons, Radio Dealers, Hobart . . . . . .

Chief Assistant, Government Astronomer, Observatory, Melbourne Northern Territory Pastoral Lessees . . .

Honorary Secretary, Australian Listeners' Perth

President, Queensland Division, Wirelegs Institute of Australia, Brisbane Superintendent, Technical Education . Rear Admiral, First Naval Member, Naval Boa-rd, M-elbourne Manager, Nicholson and Co., Sydn:ey President, Qtieensl8,nd Radi<;> Transmitters' League Meteorological Department, Perth .• Listener, South Melbourne Chairman, South_ Australian Radio Doo.lers' Association Honorary Secretary, Wireless Institute af Australia, New South Wales

Division Director, Queensland Radio Service, Brisbane Professor of Mathematics and Physics; Chairman of Extension Board, University of P erth ' Director, Radio Interests Ltd., Sydney

Chairman of Directors; Sun Newspapers Ltd., Acting Director, Broad-casters (Sydney) Ltd. Listener, Geraldton ..

Radio Inspector, Postmaster-Generars Department Programme Director, Station (5 DN), Secretary, Australian Provincial Press Association, and Secretary, New South W ales Country Press Association

Concert Singer, -Sydney Listener, Fremantle Patent Attorney, Sydney .. Secretary, Wireless Institute of Australia, Western Australian Division,

Perth Electrical Utilities Supply Co. (2 UE), Sydney Director, Australasian Performing Right Association Ltd., Melbourne Experimenter, Melborirne . . '

Patents Department, Amalgamated Wireless (Australasia) President, Association for Development of Wireless in Australia, Sydney The Herald, Melbourne . . . Experimenter, Camberwell . Manager, Radio Department, Harris Scade and Sandovers Ltd., Perth General Manager, Westralian Farmers Ltd., Perth '' Vice-President, Western Australian Listeners' League, Perth Radio Dealer, Sale ..

Captain, Motor Ship Kangaroo, Fremantle . . . . . . ·

Chairman, Wireless Committee of Labour Council of New South Wales Acting Director of Lighthouse Ser:vices, Jv.felbourne .. Chairman of Directors, Central Broadcasters Ltd., Adelaide General Manager, Harringtons Ltd., Sydney, and Chairman Radio Interests,

Sydney President, South Australian Diyision>' Australian Listener's League Expei:imenter, Hobart • . • . • . . .

Wireless Inspector, Postmaster-General's Department, Sydney Ross Sea Whaling Expedition, Hobart . . . . .

Secretary, Special Wireless Manager _Craig and Co. Ltd., Perth Lieutenant-Colonel, Australian Military :B:orces, Melbourne . . • : Administrative Assistant to Directors of Farmer and Co. Ltd. Sydney (2FC) Vice-President, Wireless Club, 'townsville Radio Dealer, Perth • . • . . .

Honorary Secretary, Listeners' League of New South Wales, Sydney

State.

Tasmania.· Victoria· New South W&les South Austta·lia New South Wales New Boutli Wales Victoria New South Wales New South Wales Queensland Victoria Victoria • Weste.rn Australia Queensl3nd South Aqstralia. ··Victoria

Tasmartia New South Wales

Tasmania. Victori& Victoria New South Wales­ Tasmania New South Wales New South Wales

Vi

New South Wales Victoria Tasmania Tasmanfa Tasmania Victoria New South Wales We.stern Australia Queensland New South Wales Victoria -New South Wales

Queensland Western Australia Victoria South .Australia. New: South Wales

Queensland Western Australia

New South Wales New South Waies

Western Australia Western Australia South Australia New South Wales

·New South WiLles Western Australia New South Wa1e& Western Australia

New South Wales Victoria VIctoria New South Wales New South Wales Victoria Victoria Western Australia Western Australia W @stern Austr8,lia ViCtoria Western Australia New South Wa1es Victoria South Australia New So-uth Waies

South Australia Tasmania New South Wales Tasmania Western Australia Victbria New South Wales

Queensland Western Attstralfa New South Wales

1 57

REPORT OF THE OOJ\IMISSIONERS.

PART I.- INTRODUCTION.

To His E xcellency the Right Honorable JoHN LAWRENCE, B ARON .a

member of His MaJ·esty's Most Honorab le Privy Council, Knight _ Grand Cross of the,._ Most Distinguished Orde1· of Saint J:Iichael and Saint George, Companion of the Disting'uished Service Governor-General and Comrnander·-in-Chiej in and over the Commonwealth of Australia.

MAY IT YoUR ExcELLENCY:

We, the Commissioners appointed by R oyal Letters Patent, dated the twenty-eighth day of January, 1927, to inquire into and report upon-(1) . Wireless Broadcasting within the Commonwealth in all its aspects, making recom­ mendations as to any alterations deemed desirable in the policy and practices

at present in force; (2) the development and utilization of wireless services for public requirements within the Commonwealth; · have the honour-to report as follows :-

y Commissioners assembled in l\1:elbourne on the 5th February: 1927, for the purpose of considering the necessary arrangements for the conduct of the Inquiry. The first matter to receive c?nsideration was the. scope of the investigation as defi11ed by our Commission. After the first meeting it was announced that it was proposed to investigate the following matters relating to wireless, subject to alterations and additions:- ·

Broadcasting Stations ; Funds ; Available revenue and distribution ; Licences: fees, &c. ; Copyright and patent royalties ; Programmes ; · Scientific research ;

Schemes of education; .

Land and Coastal Wireless Stations; Weather forecasts ; Country districts and relay stations.; Defence-Naval, military, and air; Police-Town and country ; Fire.,....,.. Prevention; Lighthouses, ship's installations, and radio beaeons;

Present control and future development of wireless. . Till& fu,t appeared in the press throughout Australia. In orde:r to give the widest publicity to the investigations of the Commission, and to elicit ­ the fullest, expression of informed opinion on the subject matter of the inquiry; we deCided to commence with a public sitting to receive and consider suggestions and to enable the inquiry to be conducted on systematic lines . . This meeting was held in lVfelbourne on the lOth February

last. ·

At this_ meeting the above-mentioned list of matters for investigation was read and suggestions invited. In view of the variety and magnitude of the matters to be investigated, and in response to definite requests, we decided to take evidence in each of the cities of the Commonwealth.

After an adjournment to enable interested parties to prepare evidence, the public inquiry opened in -Melb

.examined 165 wrtnesses and perused 2·29 exhrb1ts. In add1tion to the foregmn g; we took evidence in camera and perused many secret and confidential documents. Your Commissioners have, with the exception of a short interval at Easter time, been continuously in, consultation since their appointment.

The ·work of the Commission attracted a good deal of public interest and attention, and the newspapers throughout Australia gave great prominence to the evidence given before it.

2

. Witnesses were examined from all parts of the Commonwealth, and the views of country listeners were ascertained. In addition, the ('A" Class Broadcastina Companies certain of the Class. Wireless (Australasia) Limited, Australasian Performing

Right AssoCiation Limited, the Naval Board, New South Wales Government the Australian · Conference, Wireless Institute of Australia, Radio Dealers, Association for Development of Wueless, and the Listeners' League, were represented before us and assisted in the investigations. the terms of the Commission were wide enough to entitle it to investigate and report

upon technical matters, the Commission, having regard to its personnel, decided that such duty was not expected of it. The Commission has accordingly refrained from making any recom­ mendations of a strictly technical character) but has suggested. further inquiries into certain matters hereinafter mentioned. ·

In view of the fact that litigation had commenced between Amalgamated Wireless Limited and certain of the parties which were represented before the Commission,

It was precluded from taking evidence any of the matters involved in the litigation. These matters, however, did not seem to have any material bearing on our investigation. The Commission realized at an early stage in its inquiries that radio as a means of com­ munication was in process of rapid and that great care must be taken not to hamper this development or to create powerful vested interests.

The Commission realizes also the greaii advantages which the Commonwealth enjoys in the control of radio as compared with the systems that have grown up in other parts of the world. The prompt action of the Commonwealth Parliament in 1905, and again in 1919, in securing for the Postmaste-r-General control of wireless in all its phases, has done much to prevent the

creation of those problems which are causing much difficulty elsewhere. · From tb.e n:rst sitting of tbe Cormnission , it becllme obvious that the dissatisfaction with regq,rd to r:ldio :n the Con1monwea1th very brgely arose ont of the '1cts and omissious, rLal 01· imaginary, of Wireless (AustraJasin,)

Moreov!Jr, it haB throughout the inquiry been equally that the adn1inist.ration by the Postinast.er-GenPral's I?epartn1ent of the Wireless .Telegrr:_phy Act 1905-1919 and made thereunder lras been sinbrularly free from any cause for criticiem._

PART IL--·BROADOASTING A_l\{D RELAY STATIONS.

given the nwtter E?xhaustive consider\l.tion, the Commission has coine to the

conclusion that very little in the existing systen1 is advisable at the tjme. The

existing broadcasting stations ha,ve had to pioneer the de' eloprnent of radio · as applied to entertainment and the transn1ission of popElar programmeR of music and other items. In nearly every case the stations have carried on their operations at a loss, which in some instances has been large. At tl1e same tim.e generally, they haYe endea:voured to improve service being :rendered to the public. The losses· sustained by these stations are in nearly every insta.nce due to causes outside their control. In the case of Queensland Radio Service (-1QG), Broadcasters (Sydney) IJimited (2BIJ), Associated Radio Company of Australia Limited (3AR) and Central Broadcasters J..Jimited (5CL), it would seem that in the near fnture .their ope1·ations

will result in n profit, but not sufficient, except in the case of Queensland Radio Service (4QG), ·to reimburse thein the accumulated during the term of their current licences. In the case of Westralia.n Farmers Limited (6\V"F), this Station, although giving as good a service as could reasonably be expected in view of the surrounding difficulties, has sustained .

heavy losses. ·

The conditions arising fr-Om the extent o£ the State of Western Australia and its scattered population must result in either the cessation of the operations of the Company or continued losses on a large scale with inferior service to the public unless some change in the system of the allocation of the " available revenue " from licence fees is made. .

With regard to Tasmanian Broadcasters Pty. Ltd. (7ZL), the ·position from the point. of view of the listener-in has until recently been most unsatisfactory. The Station has been workmg on a permit from the Postmaster-General, who, in our opinion, has displayed wisdom in not enforcino- strict compliance with the regulations. The sparse population of the Island, the difficulty of arranging suitable programmes and .obtaining sufficient financial support, have all helped to create a difficult problem. The Station itself, until recently, was badly equipped and situated. The. fact that it was in receipt of no revenue and has already expended practically the whole of the share capital and is able to carry on only with the of go

to show that, in this case also, some change m the present system Is desrrable If Tasmania IS to have a broadcasting station.

1 579

3

Stations 2BL and 3AR are more or less in a similar position to 6WF and 7ZL. Both 2BL and 3AR are now giving a satisfactory service, and both have sustajned substantial losses in the past. In these cases, aJso, solne change in the preeent systern is necessary to preserve their continuity. Station 2FC is also being operated at a loss, but with the gradual increase in the number

of listening licences in N e-vv South· Wales, and a removal of the studio to more suitable premises and an improvement in programme management, this Station shoulll rapidly become a profit-making . undertaking. · ·

. The position of 3LO is unique amongst the broadcasting stations in Australia. It is almost universally admitted to give the most satisfactory service in the Commonwealth. The composition of the Broadcasting Company of Australia Proprietary Limited controlling 3LO is as follows :-

Shares.

(1) Farmer and Company Limited, Sydney 40,000

40,000 15,000

(2) J. C. Williamson Limited and J. and N. Tait (3) Herald and Weekly Times Ltd ... (4) Buckley and Nunn Limited 5,000

100,000

The cash capital brought into the Company was £6,250, but on the 11th March, 1927, it possessed tangible assets to the value of over £18,000. lJpon the 100,000 shares comprising the Company, and which were issued as paid up to 17s., a dividend of 1s. was declared, amounting to 26! per cent. ·per annum on the amount of cash: capital actually paid up after making liberal

payments for services rendered by and shareholders. This has all been made possible by the grant in the first instance of a licence by the Postmaster-General to Farmer and Company Limited, of Sydney. For that licence, Farmer and Company Limited received 40,000 shares paid up to 17s. (£34,000). For the right to broadcast artists under contract to J. C. Williamson Limited and J. and N. Tait, that organization also received 40,000 shares paid up to 17s. (£34,000).

'".,.hile the success of that Station has been largely due to its excellent management and to its close association with the theatrical and vaudeville enterprises, this is not the whole cause of its success, some part of which at least is due to the compact and thickly-populated State in which this Station is situated.

However, the management of the Station has largely contributed to a rapid ·increase in the number of licences in Victoria and an expanding revenue. To the Commission, the present position of Station 3LO gives it advantages which should be shared with the weaker stations in more sparsely populated States. . .

As integral parts of the whole Commonwealth, the more populous States should come to

the assistance of the more sparsely populated States. . .

. _ The Corrrmission has inspected all the " A " Class broadcasting stations, and has perused the balance-sheets and details of expenditure in each case. In the table set out hereunder will be found a summary of the working costs of the various Stations:---SuMMARY oF WORKING CosTs oF CERTAIN " A " CLAss STATIONs.

Stat ion ,

Farmer and Company Limited (2FC)

Broadcasters (Sydney) Limited Broadcasting Company of Australia Proprie­ tary Limited (3LO)

Associated Radio Company of Australia Limited (3AR) .

Queensland Radio Service ( 4QG) Central Broadcasters Limited (5CL) Westralian Farmers Limited (6WF)

N umber of Staff.

14

21 19

18

14 13 9

Cost per Week. Notes.

£ s. d.

107 18 0 Technical duties mainly performed by Amal­ gamated Wireless (Australasia) Limited em­ ployees under contract ; in addition t o the fourteen a sum of £850 per annum is charged against broadcasting by the Company for ser­ vices· of other members of its staff. This item is included in the £107 18s. 106 15 0

104 5 0 Technical duties performed ·by Amalgamated Wireless (Australasia) Limited employees under contract 77 10 0 Nine full time ; nine two-thirds time

77 10 0

69 15 0

36 4 9 Four full time ; five part time. Reduced in

October, 1926, to three full time, five part time-£31 4s. 9d. per week

4

Various schemes for the future control of broadcasting have been suggested to the Commission which we have discarded in favour of that herein recommended. These include the formation of a private company which would operate the whole of the "A" Class stations. Such company, it was said, should be placed under restrictions which would include the amount of dividend payable to its shareholders ..

The experience of the broadcasting companies to date in Australia has been· that in nearly every case for some years the shareholders received no dividends at all. It would therefore render ·it difficult to persuade investors to put their money into a venture that was not likely to yield a fair return on the capital invested. .

Another was that a corporation should be created on the lines of 'the British

Broadcasting This would really result in·the creation of a Government Department whose business it would be to provide entertainment and broadcasting programmes for the people. It may be that ultimately Australia will adopt such a mode of control, but at. the present time it does not seem wise to embark upon a system which, although only operating since the commence­

ment of this year in Great Britain, is already receiving a.dverse criticism. Another suggested scheme was that the Government should acquire the ownership of all the "A" Class broadcasting stations, and let them on lease to the highest tenderers. This scheme, apart from the objection of the Government being concerned so intimately with entertain­ ment business, is also open to practical objections.

Station Queensland Radio Service (4QG) is situated on the roof of the .Queensland State Insurance Building in Brisbane. This Station, apart from transmitting apparatus, cost over £15,000, exclusive of further sums for subsidiary apparatus and furniture amounting to over .£2,000. It does not seem desirable or practicable that the Commonwealth should acquire property

so situated. Station Westralian Farmers Limited (6WF) is situated on the roof of a large privately­ owned .building in Perth, and or less similar. objections apply in that case also.

Another suggestion was direct control of broadcasting stations by the Government.

In our opinion such a system is inadvisable, as experience already shows that when Govern­ ments are placed in charge of the means of disseminating news, they are apt to use such means for the purposes of political propaganda. Moreover, such a system would deprive the public of the benefit of the ·incentive which the pres:nt regulations give to the broadcasting stations to maintain an effective and satisfactory serviCe.

Further, whatever wisdom may be displayed in tbtl selection of Government officials for such a purpose, it is difficult to maintain that high standard of business acumen which is essential to securing the best results. There would be a grave danger lest that co-operation of the public with the broadcasting stations which has been conspicuously present in the case of Australia's most successful broadcasting station, 3LO, would cease to exist, more especially if artists, theatrical and otherwise, withdrew their services from the broadcasting stations and the stations lost the assistance of experts whose business it is to know the requirements-of the public.

There is still a further objection to such a proposal in that decentralization and local control of broadcasting stations is highly important in a country of such wide distances as Australia. All the proposed schemes fail, in the opinion of the Commission, to do justice to the excellent work that the existing broadcasting companies have already performed and wowd deprive of any chance of recouping themselves for their serious losses.

Recognizing the advantage that 3LO has enjoyed from its relation to entertainment companies, the Commission is of opinion that the whole of the existing stations should be encouraged to co-operate and come to mutual arrangements for future working, subject to 'strict control by the Postmaster-General, who has ample power under the existing regulations to secure an efficient service for the public. · ·

In view of the fact that the Commonwealth as a whole is interested in providing a broadcasting service in every part thereof and has a direc£ interest in introducing the amenities of city life to those whose occupations would otherwise deprive them of the same, the is of opinion that the revenue from listeners' licence fees should be pooled and after deductmg a

sufficient sum to cover the cost of administration and research by the Postmaster-General's Department, a sum should be provided for each "A" Class station which would enable it to provide a broadcasting service. The sum suggested for this purpose is £5,000 for each" A" Class station. ·

158 1

Tlie subj Hilfoa t 1:tbie iiiustrates hJw the p.toposea. gbit~me coiiipai·es ,vib the existhig systefu; -v,£' I ' ' ' >J l 1, "(, ' R .. ,

.IEAlt Eltf?ED .30TH JUNE, fa27.

N~, SoliHl w£ie~ V.ibtcf:tia Que'emilarn:l _ .,. S,9!:[gi .!u:S¥a)i~ __

Western Australia T V u .t, J asmama

Common wealth

·-,

St:.tio11.

·rOtdi ~ ~~~er or All Licences.

225,249

j_1 ; I f f .Jf, 'T"\

Far mer and Company Limited (2FC) . . . .

Bil:>&ElJ":t~terf (Sylhrey) L iillHta: (2BL) P. ,: 'I' l , . B'f8~Jlc~s'tilig Corffpan:f of Atlst riiuif rbprietar t l:liiit~d , (,3!:,0J :J. ,._, • - • ; \ ' "' V • • • 0

.i\~s9£i~,te_cl):~a9-io_ Cp_ J:9.p3cny ,9(.Austra'lia Limited (3AR) . . Queensl3ind Radio Service (4Qfl) , . . . . .

d'ektdr B'totd'cast'efs' L1ffiited (5ffq· . . . . Westr alia n Fil:f:m.Mt :U{mit~d { 6WFJ . . . . Ta's manian B r oadcast ers Proprietary Limited (7ZL) '

JG: if_.'.f i,l;; ·. 'fotal.,C?ll cctio11 AIJ_proxuna.tely.

!

s2,IJs i58,9 U 31 /161 21,666

~,9,97 1,843

:f,;~stnt Revenue. IJ...

(a)

,

VJ f '

5p,~ l 0 21,818

98i308 42fl3.2 ~1,1n 2i,~Q~

4'·1iJ:f 1:613'

271,757 -

f\ 1 .... ,.-> ,, _ ......

Postma.ster ~GeneraJ' :; Prop ortion.

ope,ltiiiJ AllOWl\UCe. ,J.

(b )

..

,t .. ,

~,ooq 5, 00

5,000 5,000 5,P,OP. 5,00§ ff (JO I

' ..

5;000

40,000

" £ "

9,41Ei 18;50* 3, 740 2,858

q!O 230

35,357

Ba1h~ {~; .

,,

(c)

£

43,416 18,606

83,838 35,930 23,284 21,156

4,048 1,479

231,757

~. ~. L i i, c' _ , ._I, i

Av n.ib bl c 11evt'llt l0 .

I

, £.

72,LS 14d 44~ 27 ;421 ' 24,808

4,7 f.7_ 1,613

271;757

Tobi Proposed Revenue.

(ct)

£

48,416 23,606

88,838 40,930 28,284 26,156

9,048 6,479 l.J'-\.

27 1,757

_. i... (" ~' .... , _,.t. I \ } • . ..• ·~ r, , \ • f , .- • ,• I

correct, as the exact figures woulU vary with the n umber of licences of

Th'e' systehl r~6bmrnen~ed wiII stiil :Iea"1e- to~··e?tchf stat10:ri:Iari incentive to ffd betth Bf providing such a service as will litttac t art iircl&'a~irtgmi.mlfer 8f list~-e:ri; t he rev~nue ffotn whose li cence fees will ultiihately be ctistrH:ftited :i:h· acco:ra.ante witli the present regulations . _ The evidence d1s>cl6sei tlia t a:- very large pfopo:tt:i:on of the ri'3'te~ets'-in are enjoying tb'e

a-d:varitage of wireless 1:ly :mean's of ctysta!l sets . Rnotlfe:t htrge sec't:ion utilize a c_ Heapet tytie of valve set. The range of reception in these cases is necessarily li...111ited, arid t he latger br_Qarqc~stl,IJ.g- s,tations, r ecog:hisiitg that IDf:,ny .persons . in the country. would he indl!:ced to take OU:~ lis"t el!llig.,.J liqencJis if_ the , cheape1: type of receiving set_ wdu~d enable them to enj oy the

a4v~n}~ge J of, Q.:r9_ a:9-castip.g, h-a,ve t akeri preliminary steps to.winds the establishment of relay or regiop.~l 1statj9ns iil the vi:cinity of some Df the more thickly p:o.pulated country centres . . Mu9h evjdence ,v:as given dealing with the relativ.e merits_ of _ higher-p~we:red statioi1s as ag-3:i!];St r~Jay _ ot regional stations, .but the evidence establishes that the former would not enable

country Jisteners to utiliJ;e crystal receivers. ,. '

,_ _ .. r~e Gom:rp.ii'i :;iion hl}s, therefore, come. to the conclusion that these broadcasting s~ations

t hat wish to establish refay stations , should i'l.ot be. dis coi.iraged i:ri . .their ef_ forts, and that the Postmaster-General should make available to them the necessary land lines at the lowest possible rental. "Further tHat until researc'H as h~r-~tiiaftei- r'ecom.ine.iide d has been made into' t he relativ e

rn rifar of _ hig'rre:t power and refay stations, licences for the forni~r should n~t be granted. . · A. Targe vofome 6£ e~iden'.te lilti been . g~;v,en . d:j i l~g ,vit}l fhe ri ~sons . why_ bro~dcus~i~g licences in New South Wales number only approxunate1v half as many as m Victoria. Tnc Commission is (Jf 6p1:ni6:ri tliat ,yh:i'lst the:re are a nu::in" ber of c;atises for this difference, the

g~ugraphical sitiration of Melhourne is a>co:nt:ributing factor, t ogether wi~h the location of the respective broadcasting stations in Melbourne from which ·citf · Victoria draws the greater proport,i,o_ rr of . its lic~nc~s. ·. · . · . . ... . · ·

Broadcast ing-has reached the stage t hax ,the ordinary li c-ensee is not conte~t with listening-in t~. t he}1t~t ~ o:r1., n~_ ~r~st ,to. him, 1?u~ is c~H?-tinµall3: in sear?~ of .inters~a_t_e_ rt.'. cept;1on. The number ana'. s1t uat10ns of ' A " and ·' B " broa.dcastmg stat10ns m Svdney and its suburbs render interst ate reception v'ery 61:ncult excep;t in the case of highly selective and expensive receiving

C. 12255 .- 2

6

sets. Moreover, the evidence indicates that even the Sydney " A" Class stati?ns are interfered with by the number of " B " Class stations in that city. Further, the closeness of the wave lengths of the existing broadcasting stations is a source of complaint and dissatisfaction throughout the Commonwealth. A re-allocation of the wave lengths wi-thin the present wave

bands should be undertaken at the earliest possible moment, so as to improve interstate reception and in this connexion the evidence of Mr. K G. Beard should be given serious consideration. Another cause of interference is alleged to be the location of some of the existing broadcasting stations. This involves certain technical considerations upon which the

Commission refrains from expressing an opinion, but recommends that, before the expiration of the existing licences, the Postmaster-General should take steps to determine in each State the most suitable location for broadcasting stations, and in this connexion, the Commission directs attention to the evidence of Electrical Commander Cresswell, and of Messrs. Fisk and

Beard. Moreover, in every case before determining the location of any present station or fixing that of any future station, the views of both the naval and military branches of the Defence Department should be ascertained. Representations have been made to the Commission throughout Australia by the

Associated Press that its rights in regard to the collection and dissemination of news should be preserved. It appears to the Commission that this is a reasonable request. Regulation 74, made under the ·wireless Telegraphy Act, is in the following terms:-" It shall be a condition of the granting of any broadcasting licence that the licensee

shall not--(a) transmit any work or part of a work in which copyright subsists, except with the consent of the owner of the copyright ; or (b) send out news or information of any kind published in any newspaper

or obtained, collected, collated, or co-ordinated by any newspaper, or association of newspapers or any news agency or service except with the full consent in writing, first obtained, of and upon such payment and conditions as are mutually agreed upon by the licensee and the newspaper, association of newspapers, news agency, or service." We are of the opinion that this regulation should be rigidly adhered to, and strictly enforced.

Considerable objection has been expressed to direct and indirect advertising by "A " Class broadcasting stations. As " A " Class broadcasting stations receive revenue from listeners' fees, and "B " Class stations receive no such revenue, the Commission is of opinion that all forms of advertising by " A " Class stations in States where " B " Class stations are

operating should be prohibited, and in all cases strictly regulated. In view of the Commission's recommendation that the existing " A " Class stations should be _encouraged to co-operate, the Commission also recommends that the balance-sheets and accounts of those stations should be regularly submitted to the Auditor-General of the Commonwealth.

In regard to " B " Qlass stations, the evidence points to the fact that too many of these stations exist in the city of Sydney, and that in some cases they are seriously interfering with the rece)Jtion of " A" Class stations. The Commission is of opinion that in future, the number of " B " Class stations in any State should be limited in proportion to the population of the area in the vicinit,y of the proposed site. Moreover, the Commission is of opinion that " B "

Class stations should be limited to a power which will not seriously interfere with " A " Class stations. The limit should be determined by the Postmaster-General, after he has -caused investigation to be made, but from the information in our possession, it would appear that in no case should the power allo,,ved " B " Class stations, exceed J ,000 watts.

Having given the matter ex haustive consideration your Commissioners recommend:-(1) That the control of broadcasting stations should remain in the hands of the Postmaster-General as at present--subject to the administration by an Australian ·wireless Committee, as hereinafter recommended, and to the

following further recommendations . . (2) That the Postmast er-General should issue no further " A " Class licences, until he is satisfied that ,the " available revenue, " and the need of a satisfa ctory service justify such issue. -

(3) That the revenue di3rived from listeners' licence fees , · throuahm_;_t the should be pooled and distributed as follows: - o

(a) Deduct therefrom the Postmaster-General's proportion to cover the cost of administration and departmental research;

158 3

7

(b) Pay to each "A" Class station thereout, the amount of £5,000 towards working expenses ; (c) Distribute the balance of the. " available revenue " amongst the "A " Class stations, under and in accordance with the present regulations. (4) That the co -operation of the stations t.o effect interchange and improvement of

programmes, and more suitable distribution of revenue, subject to strict control by the Australian WU:eless Committee, to secure efficient service to the public; should be encouraged. (5) That the Australian Wireless Committee should deal with applications for

licences for relay stations on their merits, and the Commission does not recommend any obstruction being placed in the way of such proposals, and land lines should be made available·at the lowest possible rental. (6) That until further research has been made into the relative merits of higher

power stations, and relay stations, licences for the former should not be granted. That research to determine this question should be put in hand as rapidly as possible. (7) That a re-aHocation of wave lengths be made immediately within the present

wave bands.

(8) That the location of all existing broadcasting stations should be reviewed before the expiration of the existing licences and that it be referred to the Australian :w"ireless Committee to determine in each State the most suitable location for present and future broadcasting stations. In determining the position,

the evidence of Electrical Commander Cresswell and of Messrs. Fisk and Beard, as to the grouping of stations, should be given serious consideration, and the Defence Department should, in every case, be consulted. (9) That the provisions of Regulation 7 4 (under the Wireless Telegraphy Act

1905-1914) should be rigidly adhered to and enforced. (10) That regulations should be framed restricting the advertising rights of "A" Class stations, especially where " B " Class station!'l are operating. (ll) That regulations should be framed requiring all " A" Class broadcasting stations

to submit balance-sheets and accounts to the Postmaster-General for submission by him to the Auditor-General. (12) That " B " Class stations should be limited to a transmitting power that will not seriously· interfere with transmission from " A " Class stations, and that the

Australian Wireless Committee should immediately proceed to fix a maximum power for " B " Class stations. .

(13) That the number of " B " Class stations should be strictly 'limited in proportion to the population in the area in the vicinity of the proposed sites. (14) That all broadcasting stations should be given clearly to understand that they have no vested right to the renewal of licences at the expiration of existing

licences.

PART III.-LICENCES-FEES, ETC.

Generally speaking, the witnesses before the Commission did not consider that the amount of the present listening licence fees is unreasonable. In. some of the States, the opinion was expressed that, provided a reasonable service was given by the broadcasting station, the present licence fees would be satisfactory. At the same time, the Commission is of opinion that where,

and whenever possible, the amount of the licence fees should be reduced. In ·of the recommendations of the Commissioners hereinafter made for reductions in copyright and patent royalties demanded from the broadcasting companies, and of our recom­ mendations for an altered method of allocating available revenue together with the fact that on last year's operations the Postmaster-General had a surplus of £10,000 remaining after the cost

of administration had been deducted, the Commission is of opinion that the Postmaster-General should, after making provision for departmental research, give the listener-in advantage of the reduced rovalties and of the surplus revenue. Indirectly, the broadcasting companies will- benefit by the increased number of licences

that will flow from the reduction of licence fees, and in a.ny event, will be no worse off than under the present system whereby the broadcasting companies are merely collectors for Ama.Igamated Wireless (Australasia) Ltd., and Australasian Performing Right Association Limited. Having regard to tl1e great · advantages that accrue to the blind from the use of wireless

as a means of entertainment and education, the Commission recommends that British legislation on the subject should be foUowed in regard to all blind persons, the Postmaster-General taking . such precautions as will prevent the abuse of the privilege. ·

8

ExJ)v'i'z:me?Uers.-The vVireles§ of .Australia: called before the Commission in every State in support of the claims of the experiw.ent!trS for consideration at the hands of the ties the )V_ ireless. and ,;Regulations. ':fheir cnain claim is that a

definite senyl§ of banqs sho\);ld for tP.e of yxperimenters. The Commission

is o(the 9.Pinion that Australian ·wireless Committee already.Jecommended to be appointed s:Qoultl t E Llte tltis rliMter into as eaf1y· Tlie liave proved

d£ .. ih the development of wite·Iess, ant+ sll<:nUci he enc6urageu tq continue their efforts. This Comlliissioh does not feel compet ent* nUtke a fe9oiillnerlaation on the advisability or otherwise of granting wave bands asKei:l for, eut co:fisi€iefs it liiglily that no

fti:Hay shotil4 take place in Cleating with the Tne request is that tHe foil6wing wave

batids sht>ulci be allowed for excluSive amateur use, viz. :-3 ·75 to 4 metres

7 ·5 to 8

" 15 to 16 " 30 to 32 H 60 to 64 , 120 to 128 , The Commission, however, cannot recommend that the request by the Wireiess Institute of Au.Sttalia: to be allowed to utilize the wave lep.gths of existing broa:deasting sti:i:tions out of broadcasting l:i:outs should b/3 granted, The broadcasting stations require te litilize their· power outside broadcasting hours for tlie purpose of til-sting and ori. their own account. amateurs have also requested t)lat the regulations should be amended so as to permit greater freedom in exchange of It is p0infetl out that on.ly non-conimercial messruges would be sent and no real loss of revehue t(;J the fo-stmitster-Gerterrel's Department would occur. · The opportunity to exchange friendly messages would eneourage a-mateur§, afid., provided they are limited to non-commEJreia} messages, canmYt do any seriohs t0 any other interest. Dealers;-At tlie e±i.d of Jurie, i927,, 2,797 petsdii§ wtlte licensed radjd dea1er's, of which 916 were in Nl:lw South 1,024 in Victoria; 344 iii QU.&en§laiid, 33§ in South Australia, 49 in Western Australia, and 129 in Tash.Htilla; Tlie ev:iHI3ii:e& Before the Com:tiiissibrt that it mimbet df these dealers have no knowledge of the technical side of rlid1:8; in at least some instances lilt-vi! Si>ld sets of inferior . . . The complains bf eoiliftetitio'h With the badky!irll The dealers as a b&dy stttte they art! not making a re'as8iiable pto:fit Cih go8ds they handle. Various suggestions have been made for preventing ihjufy to· the d&felopment of radio by reason of tHe inci:ip l:i:city and igndrii-nce of aealers. ' . Suggestions alsci beeri thltt de·alers s:&oiUCI p'ass an Ei:iaiii.ination to qualify fbt a licence, arid that shbhld ohly be pe'ih:iitt!!a to that havfe beeh stamped with the appto'val of E!ome cent-ral auihcirity. . . However, the Commission is of opinion that the more healthy conipet1Hbn and the greater freedom that is permitted in competition amongst themselves the better it will be for the public. In connexion ·with the develop·trH :hit &I rwdio• irl the c6'1nitry £he Commission is of opinion that, encouragement .should be given to radio dealers to send their representatives into the homes of the country people, where they iiiay deirienstrate tlie vaJiie of W:irei'ess sets. . Under_ the present regulations; each, dealel';S wl!:o a-em_Qnstrates a set for sale is to have a lice:q.ce,. for wh{eh the annual ,snm o_f £5 ml).st . . , , . The Commission is_ of opinil?n, that _in cases ;whepe the hiplself holds _,_a listening _licence, he should be entitled to obtain further licences foF his emplo;yees at reduced fees . . TheTe is reason to th31t in soine cif the- ther:e are persons who listen-in who a-re unlicensed. Necessarily the dnty oi polie'iirgthe Regulations is difficult_to pefferm and delinquents hard to ttaee. As a; shght but admittedly incomplete aid towards seeu:6ng information t ha;t will lead tb punishment of O.:fie:uders; tHe Comm-ission is· of opinion that dealers sHould be required t o keep a register in w·hich they should enter tHe naniesoi a-ll p ersonspttrchimi>Ifg complete radio sets and the types and prices thereof, and that sdch :register, at a:H:reasG>nBible times oe available for inspection by the officefs of the· Postnra:ster-Generl\l's-Depi:trt'friet'l't. · · · Y:0ur Cointtrissiorie±·s reco:fflnie:ricl; theftffor · (1) That the $h0uid 1 16dij.c_€· ths listerief's - ·by sikh · ··. am6ttn·t- :ts Hsterr'er-in tile fu1t aava;ittage'· of tfly' d f'O}faities By · Lnri1te

1 58 5

9

' {2) T~at whe~~ a persQ~ satisfies the F9stmaster,:.Q:e~eral that J.ie is ?, l:ilind person, a lioen @ e to -establish and mail'_!tain a · wirele§is reeeiving set should be granted s~~jec~ to such ~erms and conditions and restrictions ~s the Postmaster-Gen~r-al :Ul'.a'.f thiRk fi t , ~ut without payment of any fee.

• (S) That it be referred to the Aust-ralian Wireless Committee to allot definite wave bands ~o e~p~ri~1~µ t~!si a~<;l-du~. consid~ratipn be ~Yen to the requ~st of the 'Wfreie;s I~~~~1;1te pf 4".u~tr£1Ii~ ~ereir:. (A) T4~~ -th~ R~gq.J~tiQJ+~ 1'4.gajq b~ ]Jb~;r:11lizeq tg perrajP grellter fre~.µo:rµ q( ~XPPM,1ge

Qf lt~Jl~~omn,wmiFl:l m~~ij~g~~ b(ltwe,.e- :q ~~p,erjµi~µ t e,rt ·

(P) l1h~t i.n p~se~ wh~~~ ;1:g ~nm!oyeJ ho1€1§ a d ~!:\l~r' s lw.tm1i9g !!~~!lPE\, h~ t1l! !'Jl.§~ an,q ~\c!1f§§~~s 9f ~U P.~!:"?RJ!§ Imrphasing

ePr;rwlft ~ r~Jiliq ~et~ /H+4. t ~tt ~yPfEl ~wt ;gri9~~- t,herfp_f ~ l};t).d Hi~t such register shall at all reascm.A-Pl~ trrp.e~ 'J:>~ ay,-J:!iJ~Rle i,qr !~F~~~wn qy the officers of the Ifo§fJP~§f~r:-G~µ~rflJ' ~ :PepA,tt~ep~.

PART IV.- COPYRIGHT ANp FERFORMING ll,I(}HTS.

Iµ, (gis jny~lltigati,on wH p.~y~ cp:qfin~g. Q TIJ.' ~pt~l'.lticm ,&qleJy to th~ J;:i,w qf copyright so far a;~ it i:tfieg~ lJrp,~dl?~~pip_g by rn4i9.: ·

. Alth~1:1~h t,ge yaJ14f Py n( t:?pYrigbt Al'! l!\pplj~4 tP pro~Q.91Hl~i:µg ~~§ been questioned in evia~+H;e t t:Wl~,rnd po thi~ Qj:lij),.rnl:SS}Olf, we ql=l~:tn §lJ!?4 .qµe/:!tJO:q ~ ~mt1wk the ~CQP,fl of the terms of r~ier~R,q~ en.timsteq. to U.§ qy :ffi~ ~~rglJ~ :rwy t4e Gove)·npr~Ge:µer. 1:1,1 1 an,d h~ ye t herefore assumed it~ y;1,µqit,:y . It is ~l~o ~s:Sim@c!, f~r t.lw purrHm~§ 9.f thfs R.epor.t, th.a~ µn{:l~r the present law the owners of copyright works are entit led to payment of royalties frorp. per-~m1i:i proadcasting such copyrigh~ wprks.

' " :f}'v i de:nc~ ~&,s b~en ~tve:q. l;>y repre~ent~tives of the Austr11lasian Performing Right ~~"?~oc!atigp. 1 imit~c"!, w4ic4 Ass()

hroadc:astmg stat~?P.~ ~o t~e 4~stra.l

Austral1l,sian Associatien !'eserp.bles, more or: less cfosE_!ly, that pursued in other countries. After much dissatisfaction had been -o::expre~sed by the broadcasting companies with the demands made by the Australasian _ Perfor.miQ.g Right Association Limited for copyright royal~ies, - and aften a seri~~ of adjustments of chaFges, th~ Commonwealth Government called a conference of r epresent atives of interests concerned, which met on the 23rd July, 1926. As a

result of this conference an agreement was arrived at , the effect of which was, shortly, that the C~pyright Association should r~c~~v~ ~O per cent. of the r1wenue of the broadcasting stations in respect of the first 100,000 licences issued in Aust1ialia and 5 per cent. in r espect of any licences in ~~cr§.s of t~w 100,QOQ is[3qed in. A11s}r~],i~. Tlw ~~~est propos(}~ imbm~tt,ipg RY t}l.is ~t=>mpany is th~t tli~ p,opyr,igl+t rqyalty· i,liqµ ld be rJ,t ~h_e 11ate qf 7t p0r efnt. of t he totfl>l r~v~nue, irresp~qtiv.e

of ~l+e :iwnll:>er q~ JW,e:qces i[3[3µe d. :· ·

Fron+ th~ l~t ~~t r ~tHrIJ.!:i q,V~il ~bl~ tg th~ (}miaj~siqn tlrn a,yeri'J,ge y~~rly reyeµue of ~n tlw "A" Class broadcasting stations during the t wo years ended 30tli .J'une, '1927, Wfl,~ . ~ZQ6,~54 (9:pprgxJ : ftye pel'." ce:p.tµn1 pf tltiA ilJ1+m:rn.t :rnpr~~- ~nm £i0,S47 (a.1n:rrq~.)1 ln the 0pinio11 of the Qqm+ni~~icm tfW rey~m!e ~S l*~ly ~p QP,:p.tinu,q tq inprf:\~S~. . .

With r~g[J,rd t o " ~ ' ' q ~,~s ~t?!tirnrn tl+e pp,siijcm (lq~[3 iwt ~fem to b,~ 1?0 g_efi.uit~ . A,ppwrel}~ly '~4i · Au~t+~l~ ~i.~n f~:vf9qning :ftigJ:!-~ Ast~qci?,tiqn Lirnited h /;l,s di~crimin~t~d in its d~m.?,nci~ b,~t ~t;E\J+ t hfl ~e " :J3 " Cl~s~ ~1jati i:m~ 'Yhiol+ ?Jr~ ~eriy.j.ng r~yfnlJ.e PY mfa113 of aq.vertjsµig fj:91n thosf " ~ " CJiis~ ~v~tign~ which r ~P.@iY~ n9 sµi:i4 r~Y~Jilll3· Th~ tia,ture of the d~mJi,:qqs

qf ~Jii~ A~[3pqiFJ,~ion w~y pe inu;s.tr~t eq PY p~ffr~µq~ tp tl+- ~ f&~t tha;t ·11 th!3 cgf:ie of o+ie "E" Cl ~ss st.1tt!Qlh ¢~ +tustr~l ~!?i&P P~rforrru.ng E.ig4t AssoRi~t irm IArnited, first de~nded 3s., 6q, p~r CQ ]?yrigM it.em brµfl, ~Ga,ste~. Gra~wlUY the 0l4tni Wflfl r~duced to less Pha:q on.e,t!3nt4 of the

angi:n~l cl~im- · -

In Yi~W of ~ii t fl.13. ~~rm 1.m.~t,~:nQ1?~ the ~IP:O.lJrtt. qf th~ 4PE!I1Qe, fo~l:i wgip,h ult.iniait~lY r~~c}+es tlrn fl:gJ.lf1 S Qf t he Aw1tral~i,i1}I1 :P~:i;fp:nning liighti ft-f'!SQP,~~tjon Lirµit,e,d l i~, i11 irnr. opinion, out of mopr ::rrti9µ t o t4~ s~.Fig~ ren9:~rtig. qr .v~l1+e giv~,n by t,4e. :-l\.~1'\ 9Gia.t iQI:J., qr_ tlw f\,ntJ:+or ~hqr.q tlwy r~pi~w~11t, a,n\:1 is ~n g,~v~:p.t,~g~ thfl, t, in ~l.w $1~jqr~ty qf )If!?~~ll.9tl~ W/;l,S p.~y~r _qqµ t,emp,l~t ~d !J;fi

likely to belong to either the author or composer or the assignee of t he copyright.

10

According to the latest figures in our possession relating to the practice in England, the proportion of total revenue paid by broadcasting stations in Australia is more than double that paid in the former country. - - -

. We are of the opinion that authors and composers derive considerable benefit from the broadcasting of their works, and the publicity so given broadly counterbalances an:y loss on sales of sheet music. · . - .

Evidence has been placed before the Commission showing that in the case of spme firms which admittedly did not cater particularly for what is called "popular music," there had been a slight falling off over a series of years. We are not satisfied, however, that such falling off will be pennanent, nor that it is occasioned by broadcasting. FUrther tl?.e Commission · endeavoured to secure evidence from firms who were vendors on a large scale of " popular music," but they intimated through counsel, that there had not been any serious falling off in

their sales. Your Commissioners recommend, therefore :- , (1) That persons broadcasting copyright musical works should be made liable to pay royalties to the owners of the copyright.

(2) That the principles of section 19 of the British Copyright Act 1911, Act 1 and 2, George V., Chapter 46, as expressed in the Schedule to the Co·mmonwealth Act 1912 (Appendix No. 1) should be extended to the broadcasting

of copyright musical works by radio. ·

(3) That, inasmuch · as by section 19 of the British Copyright Act 1911, the royalty allowed to be charged (or demanded) is based upon the ordinary retailselling price of the contrivance used in the publication and this of course, cannot be directly applied to broadcasting, some other basis must be adopted. · (4) That the Commonwealth representative at the Conference should

advocate, that, so far as the Commonwealth is concerned, a limitation be placed on the royalty chargeable for broadcasting copyright musical works as follows:-(a) In the case of broadcasting stations receiving revenue from licence fees,

five per centum of the gross revenue of the broadcasting or

alternatively, at the option of the owner of the copyright, fourpence per ·performance of each work.

(b) In the case of broadca_ sting sta_ tiops not receiving revenue from licence fees, fourpence per performance of each musical work. ' -(c) In both cases (a) and (b) no limitation should be placed on .the number of items which the broadcasting company may broadcast.

(For the purposes · of sub-clause (a), gross revenue will, in the case of broadcasting stations within the Comrnonwealth, be deemed to include any proportion of licence fees, otherwise due to the broadcasting stations but which are for any reason withheld by the Postmaster-General.)

PART V.-PATENT ROYALTIES.

From the commencement of our" inquiries the demands by Amalgamated Wireless (Australasia) Limited for Patent Royalties, both on Broadcasting Stations and on Radio Traders were a constant subject of discussion. The evidence disclosed that the operations of this Company extended over every field of radio and in almost every instance have created friction and dissatisfaction. · ·

A widespread opinion prevails that because the Commonwealth owns the majority of shares in Amalgamated Wireless (Australasia) Limited, that Company should control itself and its revenues on the same lines as a Government Department providing a public service. Indeed an argument was addressed to us by a representative of the Victorian Radio Interests based upon the language of Section 51 (v) of the Commonwealth of Australia Constitution· Act and, it was suggested that unless the company carried on its operations on the same lines as the Commonwealth carried on t4e Postal Telegraphic and Telephonic Service, it was doubtful how far the Commonwealth could constitutionally be a shareholder in the company . . The Commission expresses no opinion on this constitutional question, but it is obvious from the terms of the agreement between the Commonwealth and the company that, except in the case of the matters referred to in Clause 3 .(vii) it was intended that the company should managed on ordinary commercial lines.

The evidence ·shows that . tae:,Right Hon . . W. M., Hughes, P.O. , when Prime Minister, instructed. the Government Directors on their appointment, that they were expected to assist in managing the company on commercial lines, and in view of the fact that there are 499,999 shares

1 587

11

privately held, the attitude of the Directors, as expressed by the Chairman of Directors of the company, cannot be questioned, viz., that the duty of the Directors is to conduct the management of the company on ordinary commercial lines. It seems impossible otherwise to reconcile the interests of the private shareholders with those of the Commonwealth. - . The company has become legally entitled to a large number of patents concerned with

Wireless and it has been claimed for it that no valve receivin0'-set can be manufactured without utilizing one or more of the co1npany's patents and likewise broadcasting transmitting station can be lawfully operated without a licence from the company. Under these circumstances, the company has been brought into co:nilict with the dealers throughout the Commonwealth, who are engaged in the sale of radio goods and with several of the broadcasting companies. .

At this date, the company is engaged in litigation in both New South ·wales and Victoria­ a suit for infringement of Patent Rights and an action for defamation having been commenced in Victoria, and two suits for i..Tlfringement of Rights and an action for recovery of royalties having been initiated in New South Wales. every case, the company is the plaintiff.

The demands of the company for royalties have been based upon the principle that it was entitled to demand from the public whatever it could get. The Managing Director of the company was asked whether the attitude of his -company was that it was entitled to charge whatever it considered fair without regard to any other person's estimation of what was fair, and he answered:

"Most certainly, wheri other traders want to use its property." He said that the Patents Act entitled the company to charge whatever it thought fit for the use of its patents and that he took as his guide the Patent Grant itself. The Chairman of Directors gave evidence that the company should only ask for royalties what the public should fairly pay, but the Directors of the company, at a meeting held on the 1st June, 1923, had authorized the Managing Director to fix the amount of royalty in connexion with licences for the use of the company's patents for broadcasting receivers at 12s. 6d. per valve

socket and to fix conditions of licences and amounts of royalties for using the company's patents for broadcasting transmitters, " as he considers best in the company's interest." The conduct of the Director in carrying out the powers entrusted to him has

created an atmosphere of hostility and distrust that has been manifested to the Com·mission throughout the Commonwealth. The conduct of the company with regard to patents claimed by it, has caused a bona-fide doubt in the minds of those interested as to whether the company itself regarded the patents owned by it as valid. The Commission has refrained from entering into the question of the validity of these patents and has assumed for the purpose of this Report that all patents claimed by Amalgamated Wireless (Australasia) Limited, are valid and enforceable.

Notwithstanding that traders were refusing to sign the licence form submitted by Amalgamated Wireless (Australasia) Limited and that goods were being sold in every city of Australia which were, according to the Managing Director of Amalgamated Wireless ·(Australasia) Limited, an infringement of patents held by his company, no steps were taken by the company to protect its rights until quite recently and the litigation commenced ag.s;tinst Melbourne and Sydney firms, has been allowed to proceed in a leisurely fashion.

In the meantime, the Parliament of the Dorninion of New -Zealand has passed legislation which was apparently intended to invite Amalga1nated Wireless (Australasia) Limited to a contest on the question of the validity of the patents used in broadcasting stations. Evidence has been given that radio dealers inN ew Zealand are in some instances carrying on the sale of goods employing patents of which AmalO'amated Wireless (Australasia) Limited claims to be the owner without any attempt on the of that company to protect its rights. If Amalgamated Wire}ess

(Australasia) Li!fiited were position .against residents of the

Commonwt}alth In respect of Infnngements of Its patent rights, It Is difficult to understand why it was not equally prepared to defend its rights in New Zealand. - As a result of the company's acts and omissions, the cmnpany is regarded suspicion and its business methods disapproved throughout Australia. Its own selling agent m Western

Australia said, " I k now that Amalgamat ed Wireless (Australasia) Limited is undoubtedly the worst hated firm in Australia." Not only has the company made demands radio dealers, which, the. opini?n .of the Commission, are excessive, but they have sought to nnpose terms and conditiOns In their hcences

which are unfair. . 1: , • · •

The ManaO'InO' Director of the company has descnbed t he proposals 0 1 l11s company as be1ng merely bases for and stat ed, t hat v it was open t o the proposing licensee to suggest and

negotiate for better t erms. . _ . . . .L, • •

This attitude is better appreciated when It Is reahzed vh: LICen?e Forn1 _IS a stereotyped printed document and licensee is. aware when t? s1gn It In effe?t 1f A:nalga:r:'la.ted \Vireless (Australasia) Lnn1ted cho oses 1 It can prevent lnm. iron1 carrying on h1s business.

. rvfor~ov@r, the B!'AA~d 1kellQe Fgnn i:rtcl~\:l.~s ~ lii?t of ~-bqyt l ~Q p~t~11-tt'\, tlw exi~teA.ce au,~ Vf1Jid.ity Qt ,v4iqh, th~ lic(21?,l:}(2'? is Mkt;.c_;l to hmd hiwseli µqt - ~o Qh~UeP:g~- T4e ~¥ideng~, l)~fo;re the Corn1+1i§>si9,n shmy:~ Hi;1t 8;t lea.~t twenty 9.f t hese )1{1tti1it~ h0Ye e~pi11~d. fil;J,Q. ll- 9qnsid@t~h!e IllJJP-h ~r of t hem have no relation, t 9 ,vir-ele 8s recei¥ing (,lets.

'I' lw:r1; is np c101-1bt in H1e opi11i(;J.n· Qt t,he Commiss1oµer13 t.h.1!,t. tp.e c_gnd1!C,t Qf the c9mpany i11 rell:\-ti.on tP its p&tent rights .h~~ Q!.3~:n, high-h.~ :p_q~g_ &tH} ov~rb~~ring. 1t ~~ems of £,rst irup9,rtar1,ce, tiw:r-efore , th~t th~ Qqµur~o11w~E>lth ~hot1:ld l'\e-@ thsit the yajidity of the patents claimed by Amalgi:\,ffil!t~g Wirele~~ (A@t!l~ll1&ia) :J;.i:m~ted i:n yy-lpc4 QQmp_a.!i\Y it is

t,µe ~arg(ilst ~}!arelwlger :=\hm1 lg. pe !c\St ~blished at the e~rli~§t pQ @§ib.le !l\Qme11t, · _ 1':P.i!? will not only ha;ye tlt~ tffoct of :'1lla;yip,g t.he distJ:'\Js.t which h.~~ he~:Q. C.I~~tJlil, QJ!t 1viJI afao enable an appraisement to be made of the real value of the p!:!,te1rt :righ.W QWtWIJ Q.Y t_h.,e CQ:Q:1Pi:\>l1Y• .

· 1-:'he hist.Pry of th!': 1:LQEJ.Wttitfon of t hes~ right~ by th.~ ~9.IDp~:g_y wowd ~~~m tP indi~Jit~ tluJ:t the £90,000 whicl+ it p~id in s.11;g1e& for th~s.e righti:i ip_ 1913 w1:1~ &riv~d ~t by w11.y qf k9:t:llP!1~1Ilj~e and nqt cm ~ny 011:refully 9013-_ sjd~retl bas.is of re~l v?,lu,e , Light ij i:jlp;owJ1 o~ 't~e V9h1e Qf thes.e p~teu.:ts by the ~vili~rwe 9,f the M1HlligIJ1g :Pirector, iih?!t for £J,OQO the GP!llPl'HW bought the ~ights ta the p~t~nts 9f tji~ Ge:trn:rn.l EkctriG C!:lfilP~!!Y

of Amerie.a-.,-t:\w E~di0, Oor,por!'l!tion of An1erica-µp till ~bout l95Q, ~nd siroil~r wgh~ Qt two R:r,e-µe,h Qornp?,.11i.~~. the Compf:1gn.ie_ Gtm,er~l Tel.egrnpli~u ~~tns Fil aDd the S!J\jl_igte G~A@!:fil ~!F!io El~c~riu1rn, and t}rn,t some of these :'1:re i:mpo:rta,ut pf:1teut.s -qr,,_1;d in -the. :rn~:trlJJ!:!,CW-f~-of tli~ir p,wn rndio aetfl.

Even in cases where the Amalgamated Wireless (Austr~ltH!i~) Limite.d h;;i,§ ~Ql\i ~Jld en~2t ~~ trn:i;w:mitti:pg s.t~foq:p~ tQ b:roadc.§,13tirtg 9Qm.p,anies, the cop.t:r~ct ill~if>t.e.d lJ.PQ!l by ArrrnJgamated 'Wi:r.ele~s (All§t r?il& ~ia) Limite.d h~s. inpluded ;m ohliga,timi q:n th~ pt}rt qf th~ ·t:i:ofi.P.~!1~t»!g Q<:trrill~!W _ t ~ p~y roy11lties Q J:1 patents ernpfo,Yed in the ?irticle§ sgld 1111d ~~ert~d hy A.rn~lgai:µJ~,t~d Wi:i:ele~s ,(A11s.trnlas_ i1t} J~i:mitfd, and in res.peJtt of which it ha.tl a.lr1ea,ciy reQ?ived a. h!lini;lsq_rrie_ p.r@ .fi:t , _ .

The rny-~lty d.emwnded by AmalgfJ.mated -V\TirelesJ~ (Alls.iifala.~ia,) fo.mit.~d fr,efA " A" Qi~§l.;; hroadcasting stations. is 5s, for e.v~ry listene.rs' licence ~mQnp;t,ing tq ~Q pttr !:l~nt. 9! the §.tgi.tio:n'!'I grnss 11eve1w~ fr qn1. licence fe'?s. _

ln the year 19,~fi the <1-Q i;,ui:1,l cash paid o:r dem&rnled by Amf!!lg~m.;,.tecl. 'Wir.!lJes~ (A1Wtr1~Jq~ia.) Limited in respect of this class of royalty was £38,100. 'l'lw Q ost price 9J the patent :i>ights1Rf Ap.wlgamwtecl ~Virel!:t&S C A-Y§tTI~la~i;:i} Li.mi~d ;!rf shown 111 the qqqk~ 3.s £!)3,00Q, !1:ri.d reference ha,s 11lre~dy been m~do tq the itm14 i::>f {9Q,QQQ, 9.Q.:µ~!ji~gtgig

t:be nmj,w :pMt of t hg,t total. In addition i;Q the rny~lt.ie!:l ot £q~JDQ !!~Q tivcd. f..rom hr9;1.~&l.a~rti~g st?-tiomi, nea.:rly £4,00Q W4 ~ re,Q e,iyed in that year frpni royn,ltie!i on rieceivi~g. §et§, 1-'he §m11 received from receiving sets vYg,S p:p]y <1, s.m.!111 pr op.Qr1j(w of wh~t t1w PQill-PiH!Y wonlt:l 'b.tl entiH~t;I. to, ~~~rnnipg its p~teni& fl.:f-e va,lid and tha,t rqy~lt,fos had been_ p~jQ 0-t): ~u r~~~¥!IJ.g §@t~ §lO!Q. in the

Com.mortwealth. . ·

Tl1e :re]2r!3serrt,q,tive Q f the Victoria, .. n radio ipte:rests estiwa.t.eg. t.hilit pQ,OQQ w.a~ ?.i fo.ir - ~~ti~?,t~ of t:l\e n1Jmber qf sets th<1,t wmdd be, spld in the CQn.µnonwea,lth in o:pe y~~'!', ~!1..~ QD- th,e !kV~mg~ 'the:;ie 13ets wo:qlcl co . t~in four valve soek~t holdert1i. The QQFW'l+ission fa; Qf Qpyii._o:n t4ll<~ gQ,OQQ is an excessive estimate, and prefew t.Q assume a sale .0f 2P.,000. On this.-ba.§i~ th!! QOI!l9l'J.!!Y w:qµlfl

fll.l, ve bel?n e.:i:1ctitled to royalties to the &rrwunt 0£ £.62.,500 on rnceiving ~Qt~ p(!!' fll~U-ID- ._ F11rthe:r, the comp_ any ha~ dem.i:i,nded £mm " B " C]g,s~ broFJ,ctQf1r:,§i~g ?!tl'lifilQP.-§ 1!P tij 49 per c;;ertt . of the gross :reven11e Q f tlie. &ta.tfo:ns ; but the CQmroi~siQn h(:Ls RO d!;fo1it~ ~vi.d~P.cC§ M tg the

~mo1-mt, if ~RY, received by t:4e 9ompany from. :! B " Ofo.s& ~t~tior 1f'\. l\fo:re!wer, the :roy~Jty demanded from 1' A " Cl?,ss p,rf!f1ACfl.~ti:ng ~tfl,tiQfill i~ e:p,t,ir:ely gµt 9f proportion to. the capit fl.l cost of the equipment in respect-of which it is qe_ :rp_l}n!:l~P-- Th~ ff!Jfowing t::i:ble showf'! the a.mmmts paid to Amalgamated vVirelefls (Aust.ralasil1) J..,imited fo~ plal:\t by ~o.m~ of the bro!:!,dc:wtiv.g statim1s and the rny~Jties derp.tl,nded Q'lj paid: to t.h1:1t CO!}'!P,fl.PY ill rn2~ ;- .-

TA~ LE SHOWING PuRQHAS:J!: f RICE QF T ,E,ANS:j.\UT'l'.J::tfG P ~ ANT l'i.+ ' flJ ~QY-t\VTPJ,S :P:JUM;A~:PED BY AMALG.A.MA'J,'ED \.VIRELEJS~ ·(AVST:&AL4 Sr4) LIJ'.li+TE:P IN Tfl~ Y:J!:An 1~ig.

Statipn,

Broa dcast ing Oompany of Aust r~lia P roprietary Limit ed (3LO) Farmer a°'d Company Limited (2FC) Broadcasters (Sydney) L imited (2BL) Queensl~nd ~ad_ io Servi \3e (1 QG) W estrali!J;p. :J3'~r:rp.ers J,ip:1it l')cl (6WF) Central Broadca sters Limited (5CL)

' ' ;_ '

'

Pri!'C ?t Plj1')t ~!ipplie

£

14,000 li,402 £,3f 3 11,QO:J.

8,g63 7,~40

£

rn ,,1~35 7,638 3,ffi,g! -~,974

6Q+

4,025

1589

Further-frictfon has arisen from the ~ttitl!d~ pf .A,.nia,lgl!P19ited )Yirnle~~ (A!l§t,raJ~sja) iimited with :regard t,Q royalty charges on valves a.old se,parately from sem. Qn the 28th UeG~ml'rnr, l~~~, the Managing Di:J.!eetoF stated to a. tnade:r-With r~ference to valv:es sold otherwise than witp. licensed receivens, it is not our desire to in any way restriGt the sale of_ a valve '_Vhich does not infringe our patent rights ; but, at t!i§ 1i~n;\e ~imJ:l, w~ tl:\in!f it is ij,flvi~il:_9ie t ~ jnJQ~:Efl yo\l tA\l:~, 1p ?.1.W qpptj0:q, lt js npt p,ossiplf':) tp ~e]l l} v,i,lv~ s-qit1tJ:ile fo:r pr

01! 1tnf s~c~ ma.:n1tfa,stu~e or ~ii:le will be maqe undf)r our !ice1;1ce ~o ;'?11 ; but'. of ~ours€!, if ;you import mii.nufaf tl?~, . seil or us~ a :' valve which 1s subsequently proved to be an mfrmgement of om patents, we must hol~ you responsible for such mfrmgement; unless such sale is covered by our licence." If you wish to take advantage of thia offer, we. arf':) prepared to alter the terms of your licerw!l ))y ~l(:t;I!lJ\~ting clitu§~ ~ (P} !!-1~<:>g~tger, ;i,ng. _aheri!!g ~~!l~!} ~ (?,} to read as f P.!lo~~ J-c-

,\ Nothing herein contained shall authorize the licensee to µianµfactuw or impprt t~er,wio:qiq \;'"l}lv~s ?f 1\11! ~i1tP.1 nf ,ylJi~h royalty !S f!J'.1\11p; ~CCQ!q.a:gge wit~ ~lJb-p!au~~ {J} O!daus~ ~ herf)of."

ln January, 1927', the Chairman of Directors of this company caused t o be published in various newspapers a notice, in which the following passages oeour •= Judging qy the reports appearing in the pres_s, the position has been greatly misrepresented, a,p.d the claims for royaltie§ by the :Amalgamated "\Vireliss Company have been dfato11ted and exagge1>ated. -

The Amalgamated Wireless Company is the holder _ of exclusive rights in Australasia to gI.frP:Y vjt,a) mtent~ fli)r ~ppljaµge~ or l)~inpipl~s µeces~ary. to b~ lJ.Sfld in wtr~lfl~~ ff)qeptipn by y11,Jyi-; sets anq iq all rVirei!:)~tl Qfoadcasting w;~~13ajon. T]lis gas inyqlveq expeni!it~re PY th~ !lPm:P~l'!Y ot VEjJ?J, !arge §~~; fl!l'th~!-', ~!! Pfl"l SO§t 9£ r~~e~!G~ ':"c:1F!r, orn!11.liZ.!1,tiop. 1 a!l:<'! co:µtinuing patent office fees- facts· w]lich app€a,~ t,P be overlool,:ed.

* * * * * * *

~tatements have peen made that the purchaser of a receivin& set requiri!}g to ren(;J"f the valves would again have to pay a royalty cp_arge. Such is not the case. The company has not clairil.eq, :i;0yalty; on ;valves. fJ:'here is one royalty only on a receiving set, charged upon the number of valve sockets, not upon the number of valv the !let ma.y ajtjm~ tely lJ_ !;!e. "~

Furtg~p:;~ore, iP- the colµ'se of evidence pefo!e t:µ,e Commission, t4e Managj:µg Pirector ~t~t.~~ t4?!"t tJw p.otice of lanua:ry1 l~W7, vyas only hitep.qed, to convey aµ in~ii:µatioµ, ' to the public

that lJP tq ]4-5!>~ µ:\Om~nt Amalgamated ,Vfrel~s$ (.i\.µstralasia) Litllited had nQt -chimed royalty on separate · valyes, btJ.t reserved the right to do so. Such a 91?,im could be made to extend i:etrqs:peqtively for the peri9d allo~ed by the 3tatute of Li~tations.

The Commission is of qpin~q11 tµa~ tlie uoticf3 eµp. p.pt fairly cmwey §11-gh ain jµtimation to t4~ rnihliq ,, ~:P-9- wp,s p:µsleadi11g, a:q.p. the compa,ny should forJ;h,yft4 a.l;>andon any clairr+ !or past royalties on separate valves. ' -

ll'he conditions of the p:r:inted fo:r:m Qf liQ~gg~ 9fi:§.11e9, to tJ:i~ t~a.!;l~F§ am, in, om Qpinion, too stringent.

. W ~ q.~ µo~ fe~l q1Il~~ upon to. e,xpref!S an opinion .as to t.he :pe?essity of all th~ cl11upes tp wlug};i qp,Jeetrnn was ~[!,ken. !n th~ eviq.e:qce pefore us? put we ~hmk ~hat Cl?,uses 2 (m) anq ~ (b) n.e~p. revision iP. the c11se of -t._rad~rs tµ w:irel~ss receivi:µ~ sets :- · ·

'.?, (rr,} Thf) liptinstie will nqt during t]:w sub:1~~te~-9~ qf thi~ li 'paratus. . . . , ·

3. (b) Nothing herein contained shall authorize the licensee to manufacture or impoi;t thermionic valv~s of any kip.d, 11or to sell thermionic valves except one valve with each valve holder in respect of which royalty is paid in accordance with sub-clause (j) of Clause 2 !iernof: . ·

3. The licence in Clause 2 (j) is i:q thfl follqwiPcg f9p::q :-2. (j) During the subsistence of th.iB li9@nge th!'l ltceys!:)e will IJ!;LY to t4e cgmp::J,p.y by w;:i,y p,f IOyalty th~ sum or twe!YEJ ~hillings and sixp~:µc~ in resp_ect of f3/1Cli lj,p. q ~yery Ylj,lve-hplder ~llJ.P+PY,eq. in lj,n ~PPf!-t3i~1t~ (including spare parts ~nd renewyf1Js eJitPQPc:plf/s ~ y,i,hrl3-4f?J~~f pr y,~l".~-hql~~rn) 1p-1pprt~~ qr mitn1tfactur~{l

under this licep.ce provide!f such p,pp§,ratus 1s map.~factured 1p. Australia or 11! Great Bntam. - The licensee' will pay to the comp;iny by way of royalty the sum of seventeen shilling~ and sixpence in r!lfl P!:\Ct pf !lWh !J:119: !')Very yalve. ,li.p}dei; (lµtp+o;red iA :iiJl .apIJarat1t~ (ii:iclugi itg spa~e p~r~s aµd renewals embodying q. valve-4Rldt;r or H lv(l~holders) iµipqr ~13d µnrl-er thJi:; l~~flnce. frorp. PtP.l'lf cpl!ntpe~.

This clause discriminates between apparatus manufactured in Australia and Great Britain ang. that manufactured in other countries.. We _are of opi~on that s11:ch discriminati?n is out of p~i}ce in a liqence g,greement1 however desirable 1t may be m the Commonwealth Tanff. · It 1:i?,s heen. !:!Ugg~~t ~q. t4~t tJ:le traders ;had it in their power, under Sections 87 and 91 (a) . of the Patents Act 1903- 1909·(Appendix No. 2) to test the reasonableqess of the demands made by

Auifl.lg~µig,ted W~rd~fl;l (~lJ~trala si icJ,) Limit~d and. also the v:a!iditr o,_f the pq,te~ts it: _q.uestion. Jfow~yer1 tbr m~n3ig1:qg dir~ctg:i; of t4e compa:qy himself adm1tved f-'hav the patem pos1t10n was a WPS.~ c9µip.licA>~ed Q-~ 1 tF~t Jitigatipn of_ the cha!acter ~uggested would be long and costly, and would mvolve mvestigatiQP: !_:tnq tpe talpng qf ~Vf9-ence 1:g. <;>t4er part1:1 of t4~ world .

•

14

It was natural, therefore, that no trader, however substantial his business in other departments, could be expected to embark upon -such litigation. The trading accounts of representative traders; given in evidence before the Commission in the various capital cities are sufficient indication that there is no incentive to any individual trader to undertake any substantial risk in establishing a radio department. ·

In view of the foregoing state of things, the Commission is of opinion that · a change is ·imperatively necessary in the attitude and practices of the company in relation to the licensing by it of radio traders and in relation to its demands on broadcasting stations which if satisfied are. passed on to and met by the public. ·

Various remedies have been suggested to the Commission. It was urged that the Commonwealth should acquire the patents under Sec.tion 93 of the Patents Aet (see Appendix No. 2). · . ·

Amongst other objections to this course is firstly, the fact that the validity of the patents, which under that Section would need to be valued, has not been established and it is at least doubtful whether under that Section, it would be open to the Commonwealth to question the validity of any of the patents it sought to acquire. · .

Secondly, if the Commonwealth owned these patents, the agitation at present existing because of the fact that the Commonwealth is already substantially a part owner of these patents would be magnified. Thirdly, the precede:p.t created would be extremely dangerous as it would be difficult to draw the line between patents for wireless apparatus and patents used in other public services.

Fourthly, the Amalgamated Wireless (Australasia) Limited does not own or claiin to own all the patents whieh might be necessary to make a first class receiving set and therefore either the Commonwealth would not fully control the situation or would be forced into further acquisition of patents. ·

F1jthly: . the position of the Commonwealth as owner of patents in its relation with the various inventors in other parts of the world would be doubtful. . Another remedy suggested was that the Commonwealth shoulf1 utilize the right or power referred to in Clause 21 of the Agreement of the 28th March, 1922, between the Amalgamated Wireless

(Australasia) Limited and the Commonwealth of Australia, which is in the following terms :-" Nothing in this Agreement shall be construed to prejudice or li1nit in any way any right or power to the Commonwealth to acquire on just terms compulsorily or otherwise any share or interest of any person in the company." This is a means which the Commonwealth may be ultimately driven to adopt, but should not in our opinion be availed of, except as a last resort.

Many of the objections set out in reference to the first suggestion dealt with above, apply in this case also, but there are, however, additional objections. This scheme would involve the acquisition by the Commonwealth of the whole of the assets of Amalgamated Wireless (Australasia) which would include the n1anufacturing and trading business-ships' installations, &c.:

as well as a number of patents which would be of no value to the Commonwealth. The Commission, however, has given grave consideration to the necessity of adopting this course in connexio_n with other matters arising for decision, and is of opinion that provided the course recommended is found for any reason to be impracticable the Commonwealth should acquire the private shares so far as it constitutionally can, and that the value of the shares for the purposes of compensation should be ascertained as at the date of the day before the publication of this

Report. .

Still another remedy suggested was that legislation should be introduced to limit the Royalties demandable by the Amalgamated Wireless (Australasia) Limited in respect of patents owned by it. This in our opinion, is objectionable as creating a dangerous precedent which would seriously affect Australian inventions in other parts of the world and would almost certainly react detrimentally to the people of the Commonwealth.

Having taken all these matters into consideration, the Co1nmission is of opinion-1. That the charges made by Amalgamated Wireless (Australasia) Limited on broadcasting companies are excessive, and that they should be reduced to a royalty of 2s. on each listener's licence. 2. That the ch!trges made by Amalgamated Wireless (Australasia) Limited on. radio

dealers are also excessive and detrimental to the develop1nent of Wireless services within the C<;nnmonwealth, and that they should be reduced to a royalty of 58. on each valve-holder, such royalty to include one valve for each valve-holder. .

3. That the attitude of the company with regard to c1aims for royalty on valves should be immediately defined, and that the claims against 111 respect _ thereof should be abandoned, so far as transactions on or preVIous to the date of publication of this Report are concerned.

1 591

15

That the charges made by Amalgamated Wireless (Australasia) Limited on revenue

earning "B" Class broadcasting stations should be limited to 10 per cent. of the gross revenue of each station. Your Commissioners recommend therefore-!. That the Commonwealth Government should request Amagalmated Wireless

(Australasia) Limited to comply with the requirements contained in the foregoing four ( 4) paragraphs. 2. That failing compliance with the foregoing requirements, the Commonwealth should take steps to acquire the shares privately held in the company on just

terms to the private shareholders. 3. That prior to the acquisition of shares, the company should be directed to take all steps to obtain an early decision on the validity of its patents. 4. That the recommendations of the Commission as to royalties and patents should be

given effect to both as to future and also as to current licences as from the date of the publication of this Report.

PART VI.-PROGRAMMES.

A considerable body of evidence has been tendered to the Commission in all States of the Commonwealth. dealing with the subject matter of the programmes broadcast by the various stations. In many instances, the demands by listeners have proved quite unreasonable, and

full consideration has not been given by them to the difficulties and expense which confront broadcasting stations in providing a different programme for every day in the year. No other form of entertainment provides, or is expected to provide, the variety of entertainment demanded by many listeners from broadcasting stations.

In view of the quality and variety of the programmes rendered and the artists employed, and the comparatively small sum paid by the listener for a year's entertainment, the Commission is satisfied that the public of most of the States have little to complain of in regard thereto. This is more especially the case in those States with the smaller populations where first class

artists are difficult to find and constant variety almost impossible to obtain. Nevertheless, our investigations show that listeners, in some cases, have cause for complaint. Perhaps the most pronounced cause is that, during certain hours of the day, detailed descriptions of racing and other sporting events are being broadcast from nearly all the stations at the same time.

The evidence. discloses that part of the cause of this uniformity is the desire of the station to esca-pe utilizing items upon which copyright royalties are payable. These items tend to exhaust the limit beyond which the station must pay an additional rate to the Australasian Performing Right Association· Limited. .

In view of our recommendations as to the future rights of owners of copyright, the Commission is of opinion that in States where there are two" A" Class broadcasting stations, they should be required to so arrange their programmes that during evening sessions in say one week, one station should provide a musical or sin1ilar programme during the time the other station is

broadcasting news items, including sporting information, and in the following week the stations should reverse the order. · · . .

Even though stations are compelled to use copyright items to fill in the period which would otherwise have been occupied by broadcasting sporting information, the Commission is still of opinion that the listener-in is entitled to the relief above suggested. Recognizing that every phase of the -popular taste must be catered for, and giving due weight

to the evidence which was tendered complaining of the monotony of the programmes-too much sporting information, too much jazz music, too many talks-the Commission is of opinion that the broadcasting companies have maintained fair balances, and that if the officers of the Postmaster­ General's Department keep up a constant supervision of the programmes submitted to the public,

and the co-ordination of time-tables above suggested is brought into force, no serious change is required in the regulations. . · . . . . .

In view of the far-reaching influence of wneless transmission on hsteners-In, and particularly children and youths, the Commission is of opinion that the greatest care should be taken by broadcasting companies to secure announcers who will afford an to the listener of how · English language should be pronounced and used. Just as radio may serve a. use!ul purpose In bringing knowledge and education to the home, so in the hands of unskilf"?-1 -persons, It may have an injurious effect on those who are apt to imitate one who has been specially chosen as announcer to thousands of listeners.

_ ..

Yow Commissioners racoinrnend ther-efore-(1) That in States where there are tw0 " A" Class broadcaati11:g, sta.tions regulations should be framed to ensure that both stati0ns will :net,- during the evening sessions, broadcast news matt er 2 ~npJµp.iµg Spfil"j;iµg l!l~QJgr~tj.g:p.i a~ tP.~ mv:p.e time,

~!).q that tlw ~tat,i0p.~ ~p.oulg ~lierµR'tv t~ ~~rvjP,y~ l)~l' o

PART VIL-SCIENTIFIC RESEARCH. .... ' - - .. ..., - - .... ~ "" r " J At ~}1~ Bre1?Egff~ t.i~~. scj~J!tffip !e~e~r c};i 1 §Q far ~s :pyJif::1 j~ tl}e C,9:µimixµw~~lt,h i~ concerned, is conducted })y AmaJg11niat~~ WireJ~~s (A-ust;~l&~i~) ~i14i~!39: ;" (h~ :&~41P. B;e~~arch Board of the Oo~:i:i~il tor ~cie.ntµ\p ~µd lµdµ s~ri~l Ees.~~:m4, a11!f t,he B-tFl~i;lJr,qJ+ Pep~i:t,rnep.t pi tp.e .Postmaster­ .G-imt1:ral'E! P,~p~fi@ent. fo ;:i,q.ditioIJi Syqp.~y · and +\felqqwn~ TJ:µiv fi:~itie~; ~!\~ members of the

Wireless -Institute of Australia and others, are givi:i:i.~ ~Mention t-9 t.4 ~1!Qj!;}¥t, The Radio Research Board above mentioned was recently appointed by the Council for Scientific and Industrial Research, and this Board has already met and commenced investigations into the causes of fading and the qie,aµs, py whi94 Hi,ey iµay ~~ qvercome.

Witt\ a liberal encl.owm~nt f.!:om f arJ.iament tlµs b9ay s~9uld perfor:gi work qf the greatest imporfanq~ to Aµstr11li a. , -

It was suggested before the Oommission that, in view 0i the large s1tms being e:X!pende~ on resear9h in other part s of the world, and the fact that the results of such research were available to Amalgamated ,:vireless (Au§t:r:alasia) Limiteq, the Commonwealth would not be justified in expending any appreciable ameunt on research. To the t:)ommif'l§ian this reasoning does nGt appeal, and it is of opi:r..ion tha~ the Australian experimente:v should 1Je encouraged to pur~µe. seientific investigation, either indepenq.ently or in oonjunqtion with ~cientists in othen parts of the werld .

The Commission considers that there is no necessity ;:i,t present, fo:v the ere.atio:q of a:q.y fm::ther, organization in t his OQ:rtnJ!Xie:n1. It i~ n~cogr,iiied th.~t ally dispgy.~r,ie~ ~r iµven.ticms made by Amalgamated Wiwles6. (Aus.tr.al~sial Limited ·wm natmaUy b~ ~~:glpit§d ~n & ~©'!nffitlr t3!~! basis, and it is desif~bl~ that :P1tbfo~ beille~ showd be ~JJJ;@ur,age(i t!') p_ersfnH~ ~ft, §lo th9:t t b,e JJ!l~li. '21 ~~ lt wl:\ol~, will !~15~iv~ t:P.~ 1;>.l?nf:1:H 9f ~h~ir l?:b.Al.ll'!'l:

The Radio Rese~;q ;,h ~oii,11q is, }IJ. fl, ppsiti()µ to 11t,il~~ qlJ t4e wi:rnl~s~ ~c~iv~ti~~ g£ ~4e. Q9,:µ1m~mweal~41 f+µd,. p,r0vid~d tl+ Frt :re,asqµaple, ~ µq ·rna~ \;>n ~4y PJ.'f~f:qt PQP;qitipns s4oulq 1?-~ i:li s.tu:i;p ~d. ;E[o~eyerl ~ Fl)JQ~t~iJ.ti ~i f'\111~ 9.f mornw ~:i:wuW ge :p!l1~~¢!: ~t t4f disposal of the Radio Board, if adequate results are to be obtained.

¥ gm; Cgrrm'l~ssipue.:r~ r ~gomm,~:nq tlierefor~-That a ~P~Qial f-1,Fpnqpri~tion ~ rnfµcie11t!y la,rge tq en~bl~ tJrn !>fts-fi~!lt; mol>l~!l!§ in :uadio to be thoroughly inve§ltigated should. 1:>e m.;iJie. l1Yl1.U a;blr t,o thr .C0u1.!J~ il for scientific and industrial r esearch .

FARf[I VIII.----;EDUQATION.

. , T4~ Cqnu:ws.si011, ha~ }1~~ :gl~q~d h~fore jt ~videuce. ~s tq :\:ww fa;r QW~

- l :r, yve~~en1 Ai+~trstlia tp.e v~ive:i;sity' :r:oi~t ot vifw ~as present ed, ~µq 11: New Sout~ Wales t4e Qqn~µiw~10µ, lJ;a,q. t4~ !:l,dv~nt?,ge qf hea;r-ing the Supermteµdeµt of Techmcal Edu9at10n a:µd representatives of the State Edµ9f!.tio:µ pepartri!en.,t. All opinions. agree t,hat broadqasting lessons are of li_ tt!e valqe in primary edU<;iation , ~nd no r~sponsible authority · now ~dvocates its utiJiz11tion i~1 oTdinary scho0l hou~s: The N~w Squth Wa)es Education Depar.tme:rit, fpr some t jme, utilizecl. b:i;oadcastiµg for primary soh~el purp0ses,

but it was fou:q.d unsati~f;wtory ~r;td w::i,s abandon_eq. 4-fter the p.ovelty p.ad passed, 1t \~as fo und th1:1,t the i:j.ttention of the children could nqt be h ~ld by the Instruetor at t 4e studio, o~ng to t he absence of t he personal co:qtact. However, l'!-11 are agreed ~hat !t is a V !},l~abie aid ~Q the te~ol!er , but that the methods and mode of the br oadcasting should be cap~fully supervised .

. With reg,ard t o. seconp.ary education .a~d th~ eg.u?ation 0t aauJts, br0~~0~~~in~ is gep.eFally recogmz~d ?,S mvalrrable, a119. the Comrrpss1on 1s s11t1sfj.eil th~t th~ p0Fls1bi!1ties 0f seeon~~ry ed11ca tiqn by broa(lcas~ing 4a ve not been £i1Jly t este\f, and, in the ease of country listeners ~specjally, that it will :grqve of inestimable value. ·

Yq11r Oomw.issioners :rncqmll'.\e:n(t t :tJ.~r~for~ :-That b:,;oadca~ting stations should be. ~m@ ~l!.J)1g@d 'fiEJ illdtJ.d~ J:!,,i;h r~P.9~1! fl~llQ~t!~WJ.l matter in their programmes.

1 5 9 3

17

PART IX.-LAND AND COASTAL STATIONS.

Prior to and in 1912 the Postmastet- Generails Department caused to be establish~a hl vafio~ pafts ot tile Common,vealtit certain wireless telegrapliic stations. L~ter, the Attstralian ~xpe~tienaty Forey captiliea stations in what are no\v, tlie Mahaated :.rerHt6ries , aria during t lie -War pe/io a., _ certain other statidiis w~re erec 1ied PY tlie NavaJ :bepaftment. bntii 1~15 the

aclhiinistratieh of tliese statio1-is Was carried on by ·bhe Postmister=Gei1erah Dej:5a:rirri ~i:it : . -:tletw~en t~i~ an,1 i ~2Q _ t~ey were 9ontrqtlea_ 9r, the JtaJ a.i ~epar~iJ-.ie~t .. ~~)~e fatter iea~ the Postmaster-Gen~ral s Department resumed control and ret~1ned suph, until after the making of the agreement with Amalgamated Wireless (Australasia) Limited iii 1\J2~ .

. , Origin1:1,liy th~se stat1ons were d~signed as part of the tlef~nce of the Commonwealth, ana, alt1).ough used for cominerQ iq1 services for ceimmunicating with ships at sea, they were primarilt designed for the plii-rp 0se of defence, and were carried on at an annual loss. In taking over the tmastal stations .A:uialgamated Wireless (Australasia) Limited undertook,

amongst ·other things-" to operate and re-organi.'ile the service provided by those stations in such a_ w~y ~~ t0 pr9vide a service at least equiva:lent to that now being supplied b;y the Commonwealth Radio Service." . Th.~ 8omn1onwewlth undetj;ook for a,certain period to.,reimburse t ~e compapy the difference

betw.e~n. the .in.cotne aµd expeiiili:ture oj those ,stations. The ,?,gr,eement with the company also provide(:], tp.iit if in conforming t o the policy of the Commonwea\th ~bf company should be involved iri ainy obiiga~iQp.~ or the ,doing of any _ acts n <2t specifically provided for in the agreement, it should be compensated for any loss that resulted t herefrom. _ .

,. . , Since the maltjng of that agreement, t he Commgnwealth has had occ a-si9n, to af?k that some

oj: the_ station~ sh~ mid ,~e i:rµpro y~d a~1d increa:_ sed in .effic\ency_ beyond £hat e~isting at the date of the agreement. Considerable dela,y has occurred since the occasion for ~his increase in efficiency first became manifest, ~nd, without attempting to assign the 'b larp.e fo r {his d~iay, the ,fac t remains that tlie negotiations lii:tve been prbt fact ed p:iiil have ,involvea co:l:i~im~ra:ble inter-departmental

c8hifiltlllication and li riun:ibef of coiiferenties betwi!en t he v'a ridus agpa±tnn~ i1ts concerned and the company. . . .-

Tlie :position Itas ~merged that # the Co:rn.m.b:hwealth'. fotj_iiires fuore efficient stations than t1ie e&fum@foi~l i:fitgf~sts bf :Afnalgailiat ed Wit1less (Australasia) Liriritea justify , t his increase of efficiency must be rifade ai the exp'erise of t he Cofrmibn.vvealth t6 pia'.:rit Be1ofigi iig to A ... 'llalgamated Wireless (Australasia) Limited, or by the erection of another plant exclusively for the use of the

Common wealth. These land and coastaf sta~ioris are intimately b~iiiii d up with the other communication serv:iees M the Com:rttonwealtlt:1 and; if controlled by t he Postmaster-General's Department, greater use edtil a be maitle of thew. iri tlie less-populated p·rutts of t he c.diintr:y and in the 1-Jorthern T~rrito·ryi'

They wou}d also assist in the c6mTI1urucatiorls between Tasn:i:a:tria: and the mainland.. The serviee rentlet~d by these sti:ttions tesembles in many respects t he service performed by the t elegra,phio and teie,pl:i0mc b:tanchM 0:t the Postmast er- GMeraFs D'epa;rtm:ent~ Til'.e interests of Amalgamated Wireless (Australasia) Liwited are p·riiharily cb":rthnercia: l: fb:e p <'Yliey of t htl Posimaster.:Gen:eral's Department is public se r"Q'ici at the' lowest cost ..

At the present time there is nothing to ensure that these stations are manned by BritisB. sufije0ts1

stations should be returned to Government control and linked up with the services of the Postmaste::r­ G'eiie:tal's ::Oepar'tihet1t. 'I'he Ctht1missidn is not 1tn:mindfol df the fact tliat since Ma:ici'h, 1926, the Oomnro nwer.tlth has . boo'rl relieved of tb:e a:rinttal foss sustained in tb:e workings oi mqst of these statt0ns. Froid tlie iftf °©rm~titm s~1rplied by the company ~o the Com!fi~ssi6~, i~ would appeai- that tim foss on the coastal radio stations amounts to approxrl'fl'iftely £2u,000 annually .

Furthermore, the Commission is aware that the stations were originally taken over by the company at the v~lue of £5~,500, an.~ t_ ~at it i_s ,~lai~~d ox.,the con;pany ~hat sin.ce that ti111;e it has expended approximately £20,000 1~ mcreMmg the e~crertcy o: cert.am_ stati~ns, .and t.nat ~he company is in the process of expend:mg another £14,000 m connex10n with its obhgat10n to provide feeder services. . .

N o'-tMthsMtrdini:i tliese · facts, and n6twit1fafa:n:ct iiig th:~t tdr s6'1iie yJafs--Hre c~n;±bh wealth ~usi? fact ~ l8ss cfo -tlil Wdrkifig oi thes13 sfati6ri~;_}~1 01~~s.~ ~ n &?-~~~~eri}~~ ,_if ,rs: v.~afla tli~ mterests of the Commonwealth that a Government department snoilla. resume control .it the eailiest ~ poMiVfe 6pp'6rtiili1t'y. . ·. . , _. _ -- •r . . . ~ •• _ _ . ,, . , ., _ _ . _ _ .

Tli:e- Commis'sion a6'es rlot r~COID.D.Ten'.d that tlie Navy shdula be p'laced llt control- b"I fili-ese stations. Dtitilig ti:8iei of peace tli?y would lf'e mtl-cn Meir~ 6'6:riveni:ently fildfi'. a-getl hf tEA Postmaster-General's Department, ::tnU f :I: 1 · p:fd{?isiorl Mrr ti•e m:::.. d'e fot th'eir 60:n'trof in case' of r ~t:

18

Evidence in Tasmania showed that a certain amount of inconvenience has been suffered owing to the Hobart Wireless Station not carrying on a continuous service . . view of Tasmania's isolated position and the shipping traffic in Tasmanian waters, the Commission is of opinion that the Hobart Wireless Station should provide a continuous service.

. Representations were also made to the Commission by witnesses from the Northern Territory With regard to the need for increased wireless services in that part of the Commonwealth. The Commission would draw the attention of the Northern Territory Commission and the Postmaster­ General to rep!esentations, more especially if the Commonwealth gives to the

recommendations hereinafter made. ·

Evidence was tendered in New South Wales of attempts that had been made l?Y the Country Press Association to provide a wireless news service for its members. The Commission, having given the matter consideration, sees no reason why the Postmaster-General's Department should n_ot, under adequate guarantees of revenue, undertake such a service, and would recommend the establishment of such for the serious consideration of the proposed Australian Wireless ·commission.

Your Commissioners recommend, therefore :-(1) That all land and coastal stations should be re-acquired by the Federal Government and placed under the control of the Postmaster-General; (2) That the consideration, if any, to be paid to Amalgamated Wireless (Australasia)

Limited for such stations shall be determined in the event of disagreement in the same manner as on the occasion when the said stations were acqujred by Amalgamated Wireless (Australasia) Lin1ited, special regard being had to the fact that the stations are being operated at a (3) Th3.t Hobart Wireless Station (V.I.H.) should provide a continuous service, and

sl!ould be utilized as a means of improving communication between Tasmania and the mainland ; (4) That the attention of the Northern Territory Commission and the Postmaster­ General should be drawn to the representations n1ade to the Commission as to

the need of further wireless stations i.n the Northern Territory ; (5) That, provl.ded sufficient guarantees of revenue are forthcoming, the Postmaster­ General should erect and control transmitting telegraph wireless stations for the service of the Country Press and others requiring such services.

PART X.-WEATHER FORECASTS.

At present no independent organization exists for the dissemination of weather forecasts and meteorological information. The transmission of meteorological information is undertaken as a voluntary service by coastal and broadcasting stations. SoJar as the broadcasting stations are concerned, full provisions exist under the Wireless Telegraph Regulations whereby ·the Postmaster-General may require such stations to broadcast reasonable amount of such information. No further change seen1s necessary. So far as coastal stations are concerned, this important service at present depends on voluntary service by Amalgamated vVireless (Australasia) Limited.

The importance to shipping and the agricultural coinrr1unity of such inforn1ation is manifest, and once these stations come under Government control, as recominended, no difficulty should be experienced in securing that the fullest information is made available by the land and coastal stations.

Your Commissioners are of opinion that if the Com1nission's reco1nmendation as to these stations is adopted, namely, that they shall be acquired by the Commonwealth and transferred to the Postmaster-General's Department, the matter of securing the dissemination of weather forecasts and . meteorological inforn1ation will become the duty of that department, and · no further reco1nmendation in this connexion is therefore necessary.

PART XI.-DEFENCE.

NAVAL-MILITARY-AIR.

The information placed before the Commission shows that communication by wireless is of vital importance to all arms of the Defence Forces. vVireless transmission and reception of some -kind is utilized in each arm of the Service. -In the past some slight confusion arose through want of co-ordination in certain matters. Moreover} there is no branch of the wireless activities of the Commonwealth into which the question

of defence does not enter. It is recognized as being highly important that the Defence Department should be kept in direct contact with all other bodies controlling wireless.

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The Commission has already referred in this Report to land and coastal stations so far as they relate to defence. The Beam Service and its possibilities, and the in1provements that are expected to be effected in that mode of communication, also vitally affect the defence of the Conunonwealth.

The Commission is of opinion that the necessary co-ordination can best be obtained by the appointment of an inter-departmental committee, consisting of one representati;v.e from each arm of the Defence Department, the Chairman of the proposed Australian Wireless Committee, the proposed Wireless Services Officer, and a representative of the Prime 1\iinister, whose · department is the channel of communication between the Government and Amalgamated Wireless

(Australasia) Limited. This committee should be convened by the Chairman of the proposed Australian Wireless Committee at his discretion, or at the instance of any of the members of the Committee. The representative of the Naval Board made strong representations to the Commission as to the necessity of establishing a high-power long-wave station for communicating with His Majesty's ships in every sea and with all parts of the Empire.

The evidence establishes that, in the present stages of its development, the Beam system is not as suitable for Naval services as the older Circle system. However, experiments are in progress with the object of enabling the Beam Station to be utilized for defence purposes. ·

In view of the large difference in cost between the two classes of stations, the Commission cannot recon1mend that the Commonwealth at the present time, incur the very large expenditure that a high-power long-wave station would entail. However, the Commission is of opinion that, if the Beam Station canriot be made suitable

for defence purposes, then, in the near future, the Commonwealth should consider the establishrnent at Canberra of a station capable of communicating with His Majesty's ships in all parts of the world, and also with all parts of the Empire. ·

The observations and experiments now being made should result in the early ascertainment of which system should be adopted. - Your Commissioners recommend therefore-That an inter-departmental committee, consisting of representatives of the Naval,

Military, and Air Forces, the Prime Minister's Department, the Chairman of the proposed Australian Wireless Committee, and the Wireless Services Officer should be constituted to co-ordinate the various wireless services within the Commonwealth from th_ e defence point of view.

PART XII.-FIRE PREVENTION AND POLICE. These are not Federal matters, but concern the States and their instrumentalities, except so far as the Federal Capital Territory and the Northern Territory are concerned. The representations made to the Commission show that wireless transmission and reception are great factors in the quick detection and suppression of outbreaks of fire.

The present regulations enable the accomplishment of ·-all that is necessary to allow those services to avail themselves of the advantages of wireless. With the establishn1ent of relay or regional stations in country districts, the utility of wireless as a means of detection and prevention of the spread of fire will be greatly increased.

So far as police are concerned, the present regulations have proved sufficient to enable the Police Force to utilize the advantages of wireless. Your Commissioners are therefore of opinion that no change is necessary in the Acts and Regulations governing wireless so far as fire prevention and police are concerned.

PART XIII.-LIGHTHOUSES AND RADIO BEACONS. Evidence was given to the Commission with regard to the question of the desirability of installing wireless transmitting and receiving apparatus at various points on the coast of the Commonwealth.

The science of radio is developing very rapidly in the direction of providing automatic appliances suitable for ·warning vessels at sea of dangers they are approaching and for indicating their position at any particular ti1ne. Evidence was placed before the Commission the nun1ber of hours of fog and haze at various points on the Australian coast. This would see·nl to indicate that there is not at present any justification for incurring the large that_ the installation of telegraphic or telephonic

transmitting apparatus would entail. ·, ·

The Commonwealth has already installed trans1nitting and receiving apparatus for departmental use in certain and there is no reason to believe that the department

responsible is not fully alive to the necessity that occasionally arises for means of communication between lighthouse and ship and lighthouse and land.

Similar remaifui apph, to iadio beacons. Comparativeiy £evi vesse~ t,raairig . on the Aust,ralian CO[j;St are fitted with the.appliances necessary t o enable -qse t o be maile of r~dioBeacoris, and the iieed for sii~h ~ppliaiices ar'is es so seid ~ - that it ,v.oiiid not oe :reasonable on the part of th, 9ommonwea1£~. to insisf on shtp-owne£s iiisb,itng on their ships the apparatus necessary 1i0 ava.ii t herrisel ves o f. the use or radio beacoi1s. ~ . • • ' l '. • • ~ -

' Infor:izj.atioii has oeen inven to tlie Con:1:m.issioii that eveii in the U :nitea Kmgai;rm, w .tiefe . fogs ·tt.re much more preval ent than oii ine Austraiiaii coast, only a Iev;.: ra dio teacoiis lia ve oeeii installed. , · t otir do1nmissii:>iieis are tlier~fore of opinion t1ia£ iii view of the ra"'ia aeveI9' inent

£Ji.at is takiiig. place iii aiiforriatic lip -1iai1ces suitaoie tp.r conveyiii c'; w ireless wa;rni~gs, aiid if vie,~ of tlie conditions generaJly prevailiB.o= oii tlie .A.ust raliari coast, fneie is at tli.e present t'iri.e no tu~ t-~ li '~~?t~~,~n f~~ i ~al2!1J~ _ .~Y fi~?1.11;~n~~-t ~ lt fh ·o! . }::r!:1ierb. ~c~~~1:;_ t~an } ~ b d,~~1:~ 1 . }~_!ii~.t t yb the au prn,ies ,now ~.m contro1 . . , J-1.t1.,ent10n nngnt , owever, e given t o tne eve opmen a ove tneriti dnea iii automatic appliances.

PART xrv:~SB:Ii:S; I*ST.ALL'i\:T"IO'N-S.

Tim ~via.ence given before t he commission shows t:hat t he ~ervices at pr e~ent being.performed by_the p:ffic1aJ.s of Amalgamated Wireless fAustralasia) bimited ar e satisfact ory t d the ship-owners with whom t b:e c,ompany has~contracte_ cl. · . _ .. .. . . . - .

A suggestion was made to t he Benfl.inissio:n t hat , if~po~sible; .the pro} isi01rs~ o£ sectibn\ ~31 of th~ Nam,qatiofJ, Aet 1912-20 should: He ,exteb.9,-ed t o vessels of smaller t onnage itn p: .carr¢fig fewer p?,ssengers t):i.an t herein mentioned. As t he matter invol vetl: the question of saving life and. property ~t f?ea, t he Go:r:nrnission gav~jt t he elosesif tdnside:catioilp tnd pr ocurecl evidence fr om ship-bwfiets and ot hers as t o t he desirability of this proposed change in t he law: we· are;.howeve':i:, of.opinion that if th~ ins,t aJl a;.tion of _ wireless feceivirig or t ritnsmitting a:p.par~t ns was . of any val ue in small vessels bel ow 1,600 t ons the owners would, as a measure of self:- prot ectiorl, install it. .:..<\part from this consideration, it was fo und t hat t hose accustenned fo il:avigation were not favdurab-Jel to the suggest iP?,, a~d cp~fiid~f,ed~~t o; _n,o prp;pt ical :V Jljlue. _ ,, . . . , . :

. __ , . . J!fr_ t~er t JUS,~ pr~or ~o -~hf eV1~e1;9~ bern13, ~ubnµtted, tp" ~h~ -Qo~s~1p!1,_ :a D~J>art~en~al G?~l1:1~t~~-of. t ~y .Q~~ (_)nwea1t!:r,. C OJ}S J~t \ng of the :Q~p~t y:,Dl!'._ect 9r~ cg:J'T°3iVJ.gago11 tor Victoria, ~~-~11gi~e~r {or }A~:h~~ou~e_ s,_a~q: the Chi_~£ 1VIanage~.of_ Teleg-ra:r>hs and Wireless; had also carefully considered: the matter and came t o a similar conclusion. , _ ·

I n t he case, however, of vessels over 1,600 t ons and carrying t welve passengers or more fro m and to ports within tke bQundarjes· 0>t o;rr~ ~ tat e; this- is qf_ c-our_se a- matter for the State Governments concerned, and, where St at e legislation on the subject does not already exist , the 8 6mn:Hsiiorl r'ecohrnie:l:f'di tHa:t te:tJteferltaii6ns sli& uld: be malfg -witl:t tt, view td {te'stei~ & f that description being b'f{jHgh~ wit:B.i* provi1iotis si:biilitr tt> tTI6se 6£ s~6iiori 231 of tt.--g Con1llioilweilt1f

Na~gai?ion AH (Appeitllix Nd. HI L _ _ _ , . __ .

Another matter cifrnrre6tctf witH ~hips' i:6'§t!d1~tiBrt~, id wlli'c1i'. the a tte'°nti7:)n 6£ t"li~' C6mmi&s1dn wai tlireBtgd b'y witne~sf§' v.ihd cam~ b~'fo'te it, fvtcs t:h~ i1&eAfrity fot iinpt'6Verrfent ii' tRe p'tlolic~tion of Australian news in overseas vessels. Tli'it evia~H& s'Hhws M i.at, so· fat ai con'tetiili sllips.J &'fation§ operaill:d.- by offici'!tI Af' 6f .AmMg'MpJtteff W1teie§s (Au.~hittas'i~) tiAfitecf, _ n ~ t cat&t £'6-t 9ofupiaint in this co1 ;nre'ii6p exi~ts, But d:b. tb'e httg~' i:n'.ail sMainefd wlticJi afe }16{6pe'fa'.t?d !Sy o;ffiMfs havn~g il1rect interest§ ii1 Australia th& afuouri'.t tif .AJi~tralia:h rle*s piibusli~a. is ~ery small. . Tfte n:ewspapers

of Australia have ende~ voured t o remedy t his defgct 5y s{ip:tfi:y5:'ffg claily ~ ltuug~t of p.e~s for ttitii.silissi&H, .8-ht t h€ snips' 6j_Jertttor_k, l:idv:ing little b'r no lµ:(o\~lgdge, o-f_ tlie value~ of., tne news from an Australian p&in-t of view, kegl ect to use a'.iiy appreciable pal£ 6"f wliat i.s1 suppliecl. . The remedy for t his fit at e _ of t hings is difficul~ t 9 fi nd, since it does not_seem t o be a matter on which the Comni6n.{vea1't-li should legislate, a-rrd fdr improven:rerlt the Com..~onwealth must depend~gn oqtai-n:h1g the good-wilf of tlie owners of these overseas vessels.

· Your Commissioners recommend, t herefor e-1. That , in cases where S~at e _legjslation on t he subject does not ~xist , te~feseijtaltiofis shcmld her rlrade to' t he· Sta t G'"overnmeti.ts cbffc @rh ed. to oring -veslfeT s not trading h~yorrd' th~ Jimi:ts uf their respective States' withi'11 f>'rovisiofis sfoiilar to tlfos·e

of section 231 of t he Commonweatlh Navigatifo1t Aet .1912.:.:20. . . 2: Tha:t tite Co'"Inrtrtfnw13i:tlth: G-6vern'me11t sholl.la :irutke :represe:d.tatioii.s t o t he ·m.vners . · of otet~eas veike1~ tra1d1rrg ,;vith Australia , ,vith a' view t o securiiief the pub1iciitTcin on t heir ship§ of at larger· pr dp& t1orr of Aus'tfiliarl newi.

'-i ..,t •-.>,. ,.~. J.. ~ ~·.;. ,a.,, ,.· • .,. ~.,_~·~V 1,)..1,. .,k.JL,...,1,t.;.,_~ ~ . ·.c; .. ,. A , .a-.•'->~ ..... -~ ""°<. ...... ... ,.. _.-,,-.- ___.._ -""

PA:R,T :NV - P R ESENT CONTROL AND FUTURE DEVEbOPM-ENT.

A£" filt cHi,te of tRis· Rep6:Ffr coniill.umcatlon) By Wir l'e'Js ·ill 4-u.siraiia i C Q'ri'd1ct&-d. By_ tp:e Postmaster-General's Department, t he Navy; lfrlH Ariiilg:i'tir:it-e t.t Wirefe-Jg (A'l:&t it1 sili-)-LihliMa1;

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In connexion with the service provided by that cornpany there are ships' installations which have been placed on certain vessels under contracts made by that company with various ship-owners. ·

Under the heading of Land and Coastal Stations, the Con1mission has referred to one branch of the service provided by the cmnpany. The Beam Service lately brought into-operation is the result of the agremnent rnade by the Con1monwealth with An1algan1ated \Vireless (Australasia) Lin1ited in 1922 as amended in 1924.

Arnalgarnated Vvireless (Australasja) Limited and its managing director and other officers are entitled to great credit for the establislnnen.t of this sys.tern, and, although sueh establishn1ent was not cmnpleted until long after the date upon which the company had contracted to have it operation; the Con1monvrealth has profited by the delay in that rnore recently discovered

1mproven1ents have been i.ncorpora ted in the scheme. ·

The cornpany fought against povverful opposition t9 its proposals, and it was largely due to the technical a-bility and pe1sistence of its 1nanaging director that jt ulti1nately prevailed, and that Australia to-day has the benefit of an up-to-date and extren1ely rapid means of co1n1nunication with Great Britain. In addi6on; the public has received the benefit of .reduced rates.

The install ation of the Bea1n Systen1 and the consequent expenditure of the con1pany·s funds have been concurrent with a period dnring virhich the shareholders of the con1pany have received no dividends. . The Con1mission is of opinion that the position of the private shareholders in the con1pany during the last :five yea_rs is one that should be constantly ren1embered when dealing with any proposal as to the future control of the service which promises to be a source of profit to the con1pany. .

The position is co1nplicated when the effect of a successful Bean1 Service on cable corr1n1unication is taken into consideration. Evidence before the Com1nission shows that the cable systems 1nust be preserved in the interests of Australia. In this, the Commission fully concurs. One of the problen1s vvhich faces the Comn1onwealth is how this desirable object is to be attained.

Nationalization of the Bean1 Service has been suggested. This would, if practicable, be a solution of sorne part of the problmn, but would not do justice to the persons who are jointly interested with the Cmnrnonwealth in this venture. Further, it would deprive the ·service of the initiative which pri,;ate enterprise enjoys. The Bean1 Service has only recently been established,

and there are already indications of further in1proven1ents being possible, the public should be iri a position to irnn1ediately co1nmand the use of these in1provements. The contractual relationship between Amalgamated vVireless (Australasia) Lin1ited and the great radio companies of other parts of the world render it more likely that the people of the Comn1onweaJth will get the benefit of rapid n1odernization by a continuation of the present control of the Beam Service.

Moreover, the inforn1ation before the Commission shows that· private companies are in. charge of the overseas means of con1munication in some other parts of the world, and that they are giving satisfactory service. The fact that the Conunonwealth owns the 1najority of shares in the con1pany which controls the Beam Service fro1n the Australian end should, if our recon1mendations be adopted, be a sufficient safeguard for the people.

However, the Commission is of opinion that the principle which has been adopted in other parts of the world where wireless services are in competition ·with the cable services should be rigorously followed in viz., that the Bearn should be called upon pay a similar terminal charge on messages handled by it.

In this connexion, a state of things has arisen which, in the opinion of the Co1nn1ission, should not be allowed to continue. The Postmaster-General, as the authority adn1inistering the Wireless Telegraphy Act, has called upon A1nalgamated Wireless (Australasia)- Limited to pay tern1inal charges, and this con1pany has disputed its liabjlity to make these payn1ents. Therefore,

a dispute has arisen in which the Con1n1onwealth is demanding fron1 a co1npany in which it holds · the majority of shares, and in the 1nanagen1ent of which it has a substantial part, payment of a sum of money to which it is entitled or not entitled. So far has this dispute been carried that the sums in question have been paid to a trust account pending a decision on the rnatter.

Having regard to the necessity, in the interest of Australian safe ty in tim.e of war, to have alternative n1eans of comrnunication with Great Britain and other parts of the E1npire and \Vith other countries, and the desirabjhty, generally expressed, of preserving t he cable services in ti1nes of peace, and having regard to practices obtaining in other countries, the Cornn1ission is of opinion that if An1algamated vVireless (Australasia) Lirnited continues to refuse to pay terrr1inal charges to the Postinaster-GeneTal's Departn1ent, the Comnwn,vealth should i1n1nediately take steps to acquire the private shares in the con1pany. The corr.1.pany should then be placed in liquidation and the Beam Service transferred to the Postmaster-General's Departn1ent. The Con1mission. of opinion that if the Govern1nent's control of Amalgarnated vVireless (Australasia) Lirnjt.ed at the

0.12255.-3

22

tiiJ?-B· t o bring co:rp.pan:y into line 'Yith is - i!} t_ h_ e ,i!lterests

(.lf the Oomrr).onwealt4, that cont_ rol s,hould be 1naqe .effective, and i:nas}pucp a§ a purchase of shares would create difficulties and would probably do an injustice to t4ose 'Y,ere purchased? np .other course th;:1.,n a COiflJ!.l,ete acquisition sge1ns poS,sihle.

Another matter in which the Commonvvealth is vita.lly interested in connexion :with the B.e:arn Service is whetl?-er t he An1algamated vVireless (Australasia) Limited is entitied to an exclusive right to e;r.ect .and .contrQl Bea;m services with co_untries other tban those _ mentioned in its agreement the Oonnnonwealth. · This ;right has been clain1ed by A1nalgamated Wireless (Australasia)

J..i.mited, but is disputed by the Postll).aster-Generafs DepaJrtment. In the of t,he

Con1mission, unce;rtainty on questions of this kind is highly undesirable, and the Commission that position with regard t o the rights ,of An1algarnated vV1reJess .(AvstralasiSL)

Lirnited as to other Beam services should be defined in1n1ediatelv. ·

n1atter t hat im1nediate consideration is the ren1oval of the ambiguity

and confu$ion that have arisen by reasoJ! of the apparently eon;flicting provisions of Clauses 8, 17, and 18 of .the of tpe }\;larch, l922, betvmen the C01nmonwealth and A1nalgam.ated Wireless ( Al}.Stralasia) Li1ni ted.

Those clauses are as follo w :--Clause 8. The company shall conform to the policy of the Commonwealt h as decided from time to time by the Minister administering_ the · Wireless · Telegraphy Act in respect of the operations of wirel€ss telegraphy and telephony Comrp.onwea:Ith and territori.es under the authority of the Commonwealth, and also with respect of personnel

employees !.I?- of New Guinea.

Provided that if compliance with the clause involves the comp any in any obligations or the doing of any a,ct IH?t specifically provided for in this agreement, the company shall be compensated in respect of any loss th§tt results therefroJ?. Suc'h co m pensation shaH, if necessary, be fix'ed by arbitration in the m.anner provided by Clause 20 ofthe agreement.

Clau.se 17. Any notice, com1!lunication, opinion, agreement, approval or other m atter or thing to be given, made $xpre,ssed or clone by the _ Commonwealth under these presents shall be deemed to have been 9-uly given, made, expressed or done if given, made expressed or done in writing, signed on behalf of the Common wealth by or on behalf of the PrinJ.e of the Qommonwealth and delivered to or posted by prepaid post, addressed to the company at the address

of its registered office in Australia. Clause 18. Any notice, communication, agreement, approval or other matter or thing to be given, made, expressed or clone by the company under these presents shall be deemed to have been duly given, made, expressed .or if given, made, expressed or done in writing, signed on behalf of the company by its secretary or other proper officer and to posted by prepaid pefst , to the Prime Minister at his official address at the Seat of -Government of the

Commonwealth. · ·

':rhe Postn1aster-General is the " adn1inistering the Wireless Telegraphy Act,"

and yet, owing to the Company's interpretation of Clauses 17 and 18 of the agreement, i1nportant steps towards establishing wireless services have been taken by the company without information of the same being conveyed to the Department until the final stages were

about to be completed. This seems to conflict with the provisions of Section 5 of the Wi·reless .Telr:.gt aphy Act 1905, although the agreement see1ns to contemplate the Prime Minister's Department aR the channel of The position with relation to these questions shquld also be defined soon possible.

The future control of Wireless involves a re-adjustment of the system: in Report, the ad1ninistration of the Postrnaster-General's Department, up to datB,

has g:iven general satisfaction. It is, however, realized that with the increase in business fron1 the transfer of the and . to that departn1ent, and the increase arising froin .extension of land

com1nunication by wireless, as well as the consideratjon of further nroblen1s in eonnexion with stat1ons, a separate branch should he constituted the a·epai·tme:r{t, buf

th,e control of the Postmaster-General. Moreoyer, the popular interest jn broadcasting stations necessitates that particular attention sJ:tould be given to their .111anagen1ent and control. The Commission is therefore of opinion that an Australian \Vireless Committee should be constituted, eonsisting of three of whom the chairrnan should be the Director of Postal Services for the time being.

. Another should he an offieer competent to deal with wireless eOininunication of aJJ and the third an officer with special knowledge of the problems of broadcasting statiop.s. It would be the duty of the chairman to act as ene of the representatives of the services of the Con1monwealth on the proposed inter-departJnental com1nittee, which recommended fo r appointment in connexion with the defence of the Comn1onwealth. He wo-ql<;l also cop.vene of that comn1ittee and of the proposed Wireless

and generally supervise all wireless and broadcasting activities within the Commop.wealt];l, excl\if3ive of tpose of the Departn1ent of Defence. The chairman should also, at on.ce in Y!3t:tr

1599

23

and: at specified to be -provided in the Regulations, take the necessary steps to convene ,a conference· be:t,veen tlie Australian Wireless-Committee and· one representative from each of tlie follo"'viing-bodie·s :- · ·

( ) " A '' Cl B 1 . n . a · ·ass roaacast1ng otat1ons. (b) " B '' Class Broadcasting Stations. (c) Wireless Institute of Australia. (cl) Radio Dealers and Manufacturers. (e) Licensed Listeners-in. The b¥siness of this conference should be the reception and discussion o:f suggestions for the progress and development of wireless and: generally:. to give an opportunity to the proposed A?-straJian Wireless C)ominittee to become fa1niliar the wishes and grievances of those connected w1th the use of radio.

The proposed wireless officer would, subject to the control of the chairn1an and the Postmaster-General, supervise the working of all land and coastal stations except those controlled_ by the Department of.Defence. The proposed broadcasting officer would, subject t o the control of the chainnan and the Postmaster-General, supervise all rnatters relating to broadcasting.

Another n1atter that seems to n1erit attention, in order to secure effective control in the future, is a revision and amend1nent of Sections 6 and 10 of the Hlireless T eleara11hy Act 1905. At the tim e when these sections were passed, the only means of wireless con1n1unicatlon popularly used, were telegraphic. -\Vhilst the language of Section 6 is quite apt to deseribe the operation of sending a telegram it is open to doubt whether, even with the a1nendment introduced by the

lV1:·relc.ss .Telegraphy Act 1915, the section is adequate for the purpose now intended. The doubt centres round the word " messages " and already has created smne difficulty in adn1inistration in Western Australia. Your Commissioners l ecomn1end} therefore :-

1. That Amalgamated \Vireless (Australasia) Li1nited should be n1ade liable for the payment of ter1ninal charges, and that) fai ling eompliance with the Pm;tmaster­ General's demands in that respect, the Com1nonwealth should take steps to acquire the private shares held in the company on just terms to the privatE

shareholders.

2. That the position of the company with regard to the establish1nent of further bearn services should be defined. 3. That the relationship between the Postmaster-General and the company should be n1ore clearly defined. _

4. the provisions of t he T!Vireless Teleg-raphy Act 1905-19 should be so amended as to enable the Postmaster-General's Depart1nent to more effectively enforce the Regulations as to unlicensed listeners . . 5A. That an Australian \Vireless Con1mittee should be eonstituted under the control

of the Minister administerin g the Wireless Telegraphy Act , such e01nmittee to consist of the Chairman, who shall be the Direetor of Postal Services for the time being, a \Vireless Services Officer, and a Broadcasting Officer, (i) That the duties of the 8hairman shall be to supervise and co-ordinate

all wireless and broa.deasting actjvities within the Con1n1onwealth , with the exception of those under the control of the Department of Defence. (ii) To convene n1eetings of the Australian \Vireless Committee and of the

proposed Inter-departmental Committee for defence purposes. (iii) To convene at least once in each year, on _ dates to be prescribed, a eonference between the Australian '\i\Tireless Co1n1nittee and one representative from each of the following bodies :--

(a) "A" Class Broadcasting Stations; (b) " B " Class Broadcasting Stations ; (c) Wireless Institute of Australia ; (d) Radio Dealers and Manufacturers ;

(e) Licensed Listeners-in.

B. That the necessary regulations to give effect to the fo regoing recommendations should be proc]aimed. C. That the duties of the Vvireless Services Officer shall , subject to the control of the Chairn1an and the Postmaster-General, be the supervision of the working of

all land and coastal stations. D. That the duties of the Broadcasting Officer shall, subject to the control of the Chairman and the Postmaster-General, be the supervision of all n1atters relating to broadcasting. -

24 .

. Y qur . Cornmissioners wish to place on record their high appreciatfon of the services of Nfr. R. C. Nance, who has acted as secretary to the Commission. His ability, energy, and enthusiasnl have helped to a very task. vVithout his organizing powers jts labours

would have taken much Iono·er. and have been much more arduous. The Commonwealth is ·:> ' fortunate in. having at its disposal an o.fficer of his outstanding ability.

\V e have the honour to be,

our Excellency's most obedient servants,

R. C. NANCE, Secretary, Melbourne, 14th July, 1927.

J. H. HAlVIlVIOND, Chairrnan. J. A. J.\tl. ELDER .. C. E. CROCKER.

A. J. B. ·Mol\fASTER.

APPENDIX I.

THE SCHEDULE. Copyright Act 1911.

160 1

[Cb . 411.

SEC'fiON 19. . .

. 19.-(1.). Copyright shall subsist in records, perforated rolls, and other contrivances by means of which sounds be mechamcall;y reproduced,. in like as if such contriv.ances were works, but the term of copyright

shall be fifty years from the makmg of the ongmal p1e.te from wluch the contnvance was directly or indirectly derived , a.nd the person who was the owner of such original plate at the time when such plate was made shall be deemed to be the aut!wr. oi the where such owner is a body corporate, the body corporate shall be Jeemed for the

purposes of this Act to res1de within the pa.rts of His Majesty's dominions to which this Act extends if it has established a. place of business such parts. ·

. . (2.) It shall no.t be to he an infringement of copyright in any musical work for any person to make

w1thm the of H1s :MaJesty's dominions to 'which this Act extends records, perforated rolls, or other contrivances by means of whiCh the work may be mechanically performed, if such person proves-(a) that such contrivances have previously been made by, or with the consent or of, the owner of the copyright in the work ; and

(b) that he h.as given the prescribed notice of his intention to make the contrivances, and has paid in th e prescribed manner to, or for the benefit of, the owner of the copyright in the work royalties in respect of all such contrivances sold by him, calculated at the rate hereinafter mentioned : Provided that-

(i.) nothing in this provision shall authorize any alterations in, or omissions from, the work reproduced, unless contrivances reproducing the 'Nork subject to similar alterations and omissions have been previously made by, or with the consent or acquiescence of, the o.·wner of the copyright, or unless such alterations or omissions are reasonablv necessary for the adaptation of the work to the contrivances in question; and ··

(ii.) for the purposes of this provision, a musical work shall be deemed to include any words so closely associated therewith as to form part of the same work, but shall not be deemed to include a. contrivanee by means of which sounds may be mechanically reproduced. ,

(3.) The rate at which such royalties as aforesaid are to be calculated shall-(a) in the case of contrivances sold \vithin years after the commencement of this Act by the perso11 making the same, be t\,·o and one-half per cent ; and (b) in the case of coiJtrivances so]d as aforesaoid after the expiration of that period , per cent. on the

ordinary retail selling price of the contrivance calculated in the prescribed ma.nner, so however, that the royalty payable in respect of a contrivance shall, in no case, be less than a halfpenny for eaeh separate musieal work in which copyright subsists reproduced thereon , and, where the ro yalty calculated as aforesaid includes a fraetion of a farthing, sueh fraction shall be: reckoned as a farthing :

, Provided that, if, at any time after the of seven years fro m the commencement of

this Act, it appears to the Board of Trade that such rate as aforesaid is no longer equitable, Board of Trade may, after holding a public inquiry, make an order either decreasing or inereasing that rate to such extent as under the circumstances may seem just, but any order so made shall be provisional only and shall not have any effect unless and until confirmed by Parliament ; btit, where

an order revising the rate has been so made and confirmed, no further revision shall be made befor e the expiration of fom·teen years from the date of the last revision. (4.) If any such contrivanee is made reproducing two or more different works in which copyright subsists and the owners of the copyright therein are different persons, the sum .. .;; payable by way of royalties under this section shall be apportioned amongst the several owners of the copyright in such proportions as, failing agreement, ma,y be determined by arbitration.

(5.) \Vhen any such eontrivances by means of which a musieal work may be mechanically performed have been made, then, for the purposes of this section, the owner of the eopyright in the work shall, in relation to any person who makes the prescribed inquiries, be deemed to have given his consent to the making of such contrivances if he fail s to reply to such inquiries within the prescribed time.

(6.) For the purposes of this section, the Board of Trade may make regulations prescribing anything \vhieh under this section is to be prescribEd, and prescribing the mode in which notices are to be given and the particulars to be given in such notices, and the mode, time and frequency of the payment of royalties, and any such regulations may, if the Board think fit, include regulations requiring payment in advanee or otherwise securing the payment of royalties,

(7 .) In the case of musical works published before the commencement of this Act, the foregoing provisions sha,ll have subject to the following modifications and additions :-. (a) The conditions as to the previous making by, or with the co11sent or acqui escence of, the owner of the copyright in the work and the restrictions as to alterations in or omissions from the '\vork, shall not

, apply;

. (b) 'l'he rate of two and one-ha.lf per cent. sha.ll be substituted for the rate of five per cent. as the rate at which royalties are to be calculated, but no royalties shall be payable in respect of contrivances sold before the first day of July, Nineteen hundred and thirteen, if eontriva.nces reproducing the same work had been lawfully made, or placed on sale, within the parts of His Maj esty's dominions

to whieh this Act extends before the first day of July, Nineteen hundred and t en; ·(c) Notwithstan9,ing any assignment made before the passing of this Act of in a musica:l work, any rights conferred by this.Act in respect of ma,kin.g, or the m :• kmg, contn.vances

by of which the work may be mechamcally performed belong to. the aut1wr or his legal personal and not to the assignee: and the royalties shall be. payable to 1

a.nd for the benefit of1 the of the work or h1s legal p.ersonal representative ; ,

Z6

(d) The saving contained in this Act of the rights_and interests arising from, or in connexion with, action taken before the commencement of this Act shall not be construed a.s authorizing any person who has ma:de contrivanees by means of whioh the work may be mechanically performed to sell any sueh contriv2nces, whether made before or after the passing of this Act., except on the terms and subject to the co nditions laid down in this section ; (c) Where the work is a work on which copyright is co nferred by an Order in Council relating to a foreign

country, the copyright so conferred shaJl not, except to such extent as may be provided by t he Order, include any rights with. respect to the making of records, perforated rolls, or other eontri:vances by meP.ns of which the work may be -mechanically (8.) Not•withstandlng anything in this Act, where a record, perforated roll! or other contrivance by means of whicH sounds' may be mechanically reproduced has been before t'he commencement· of this Act; copyright· shall, as from the commencement ofthis Act, subsist therein in like manner and 1for·the· Ii.ke term as if this Act. hadi. been in force at the date of th'e making of the original pl ate· from which the cont"riv·ance was directly or ·indirectly. derived ;

Provided that-(i) the person >v110, at the commencement of this.Act, is-the owner of such original plate shall be the first owner of such copyright ; and (ii) nothing in this provision shall be construed as c01iferring copyTight in any such contrivance if the making

the:reof·vvo uld :have infringed ·copyright-in some other such contrivance; if this provision· had been in force at the time of the m aking of the first-mentioned contr-ivance.

A PP IX II.

Patent Act ·] 903-190\J. SECTION 87.

(1.) Any per::;on iu terer:;ted may after the expiration of two years from the granting of the patent present a petition to the Commissioner alleging that the reasonable requirements of the public with respect to a patented invention have not been sa tisfied a.nd ·praying fo r the grant of a compulsory licence or in the alternative for the revocation of th e· p_atent.

(2.) 'l'he Commissi<:mer shall consider the petition and if· the parties do not· come to an arrangement betweeu themselves, the Commissioner, if satisfied that a prima facie case has been made out, shall refer the petition to the High Court or the Supreme Court, and, if-the Commissioner is not. so satisfied he may dismiss the petition. (3.) Where:any sn c-h .petition .is referred the Commissionerrto the High Court or the Supreme :Court, and it is proved to the satisfaction of the Court that the reasonable requirements. of . the. public with: reference to the patented invention have :q.ot been satisfied, the patentee may be ordered by rule-or order to grant licences on such terms as the said Court think's just or if the. Court is of opinion that the reasonable requirements of the public will not be satisfied

by the grant of licences the Court may order the revocation of the p,atent. Provided that IJO order of revocation shall be made before the expiration of three years from the date of the pn.tent or if the patentee gives satisfactory reasons for his default. ·

(4.) On the hearing of any petition under this section the patent ee, and any person claiming an interest in the patent ·as exclusive licensee or otherwise, shall be made parties to the proceedings, and· the Commissioner shall be entitled to appear.and be heard. * * * * • * * * * * * * * *

(6.) . For the purposes of this section the reasonable requirements of the public shall not. be deemed to have been satisfied-( a) if, by reason of the default of the (i) to manufacture to an adequa,te extent, and supply on reasonable terms, the pa.tented artic.le,

or any" parts thereof' which are ·necessary for its efficient··workrng; or (ii) to carry on the patented process to an adequate-extent, or· (iii) to· gra:nt licences on-reasonable terms; any existing trade: or industry,· or. th'e· establi'sh·nnmt of any new trade or industry, in Australia is unfairly prejudiced, or the demand for th:e -·patented

article or the article produced -by the ·patented;process is no:t reasonably _met· ; OIJ (h) .if • any trade or industry in Australia is unfairly prejudi•ced · by-the condition-s -attached 1oy-the p)l;tente.e·,· before or a-ft.er the -commencement·· of ·this-sub:-section, to-the purchase, oruse of 1the -·patented article, or to the using or working of the patented process: (7.) A rule or · order directing the grant ·of 'any licence under·this section shall,' without pre>jl;l.di'ce ·to any other method of· enforcement, operat-e as if 'it \Yere embodied ·in a deed granting a licence and 1made the- parties to

the- proce.ep in g.

SECTION' 91A.

Where any person claiming to be the patentee of an· invention, by circulars, advertisements, or otherwise, threatens any other person with a.uy legal proceedings or liability in respect of any alleged· infringement of the ·patent; anyrperson aggrieved thereby may br-ing an action against .him, and ·may obtain an· injunction against the. continuance of such threats, and may re cover such damage3 (if any) as he has sustained thereby, if th:e alleged inf:Pingement to which the threats related wa.s not in fact •an infringement of any legal rights of the per.son making such -threats.

Provided that-this section shall not apply if the person making such threats with due. diligence commences and -prosecutes ·an action for infringement of hi s patent. SECTION 93.

(1) The Go vernor-Geneml if thereto authorized by resolution of both House3 of the Parliament may direct that a.ny patent shall be acquired by the Minister from the patentee. _

(2.-) The Governor-Geneml may thereupon by notificat ion published in the Gazette declare - that the' patent has been acquiTed by the Mini.ster; and upon such notification the patent al-l rights ·o_f- the-patentee thereunder shall by-, force of this Act he transferred to a.nd vested in the-l\1inister in trust-for the (3·!) shalt pay to the patentee ·such-reasonable compensatioiYas is agreed upon or as is , in

of agreement, arbitration in the manner prescribed:

160 :

27

APPENDIX III.

THE CoMivlONWEALTR OF AusTRALiA.

The Navigat-ion Act 1912-1920. Section 231.

DIVISION 6A.-WIRELESS TELEGRAPHY ON SHIPS. (1.) Except as prescribed, every foreign-going ship, Australian -trade ship, or ship engaged in coasting trade-- ­

(a) carrying more than twelve passengers, or (b) being of sixteen hundred tons gross registered tonnage or upwards.

shall be provided \vith a wireless telegraph installation, and shall maintain a wireless telegraph ser vice, as prescribed, and shall be provided with one or more certificated operators and watchers, as required by the regulations. Penalty, on or owner: Five hundred pounds.

(2.) The Minister may exempt from the provisions of this Division any ships or classes o£ ships on which, having regard to the nature of the voyages on which the ships are engaged, or other circumstances of the case, he is of opinion that the provision of a wireless telegraph apparatus is unnecessary or unreasonable. (3.) The Governor-General may make regulations not inconsistent with this Act or the Wir-eless l'elegtaphy Act

prescribing any matters necessary or convenient to be prescribed for carrying out or giving effect to the

provisions of this Act with regard to wireless telegraph installation:; and service3 on ships, and in particulR.r in rega.rd to-( a) the nature of the wireless telegraph installation to be provided; (b) the services to be maintained; and (c) the number, grade and qualificatioas of the operators and watchers to be carried.

(4:.) A surveyor, or any person autho_rized by the lVI!nister, may, in the execution of his duties, go on board any ship a.t all reasonable times and inspect the wireless telegraph inst allation and the certificates of the operators and vvatchers required under this Act. (5.) If the surveyor, or other person· inspecting, reports to the Deputy Director that the ship is not properly

provided wi th a wireless telegraph installation and certificated operators and watchers in conformity with this Act, the Deputy Director shall give, to the master or owner, notice tn writing pointing out the deficiency, and indicating what is requisite to remedy that deficiency, and thereupon the ship shall be detained until the deficiency ha.s been made go od.

(6.) The master of a ship, required by this Act to be provided with a wireless telegraph install at io n, sha.ll not take her to sea, and the owner of the ship shall not perrnit lH3r to go to sea, unless the requirements of the Act hrtve been complied with. Penalty: Five hundred pounds.

By Authority: H. J . GREEN , G overnment Printer, Melbourne.

I