New-York tribune., 1920-08-24
Phone Service
Europe Seen
In Big Merger
Radio Corporation and Bell
System Agree to License
Exchange, Resulting in
Mutual Use of Patents
U. S. Suggested the Idea
Plan Will Permit Several
Conversations Over One
Wire at the Same Time

An important contract that will
revolutionize telephone and wireless
telephone communication has been
entered into by the American Tele-
phone and Telegraph Company and the
General Electric Company, according
to a statement last night by H. B.
Thayer, president of the former cor
poration.
Back of this contract lies the posi-
blllty of telephone communication with
Europe and with ships at sea, by means
of the ordinary desk telephone in the
near future, according to radio ex-
perts.
The arrangement will also make it
possible to conduct several conversa
tons over one telephone wire stimuli
taneously, without interference. 1t
gives to the two concerns the mutual
use OF all patents and scientific de-
veiopments made by each through an
exchange Of licenses.
Recent experiments by both com
panies have been successful in trans
mitting several conversations on q
single wire simultaneously by employ
ing the different types of vacuum tubes
used IN wireless telegraphy and tele-
phony. These tubes and other appara-
tus are now placed at the disposal of
the telephone company by the terms of
the contract 1t will mean that a tre-
mendous sum will be saved annually in
the cost of construction and main
tenance OF telephone wires, as we'll as
increasing the efficiency of long dis
tance and transcontinental telephone
communication.
May Talk to Europe Soon
Other experiments have resulted in
1 the development of the apparatus
whereby the human voice can be auto
matlcally transferred from land line
telephone to wireless telephone serv-
ice at a radio exchange" This has
been made possible by the development
of the amplifying valves that increase
thousands of times the volume of sound
from the original voice. Patents held
by both companies will now be merged
1t is by means of such an exchange
that it will eventually be possible to
communicate with Europe over the
ordinary desk telephone.
In his statement Mr.. Thayer says:
I'm January of this year both COM
panies received letters from the Bureau
of Steam Engineering of the United
States Navy Department, referring to
the wireless situation, and saying the
bureau has consistently held the point
of view that interests shall be best
served by some agreement between the
several holders of pertinent patents
whereby the market can be freely sup
piled. The letter also urges the neces-
slty of some such arrangement SO that
ships at sea can get the benefit of the
latest devices, which would contribute
to their safety and the safety of their
passengers. The bureau states further
In the past the reasons for desiring
some arrangement have been largely
because of monetary considerations.
Now, the situation has become such
that it is a public necessity that such
arrangement be made without further
delay, and this letter may be consid-
cred as an appeal-for the good of the
public-for a remedy to the situation
Negotiations Begun
"Following this, negotiations were
commenced between the two companies
with a view to the exchange of licenses
oS eH@t VIC NVlicIdl I.lcClIlC company
and the Radio Corporation of America,
with which it had become interested,
would be able to further the develop
ment of the art of radio transmission
and especially of wireless telegraphy,
and the American Telephone and Tcle-
graph Company could employ in its
present nationwide system such radio
apparatus as is adaptable to wire
transmission and, further, could sup
plement its wire system with wireless
extensions where particularly adnpt-
able as between shore and ships at sea
Much has been done in radio COM
munication by all parties Of interest
which can be made fully effective in
the public service only by this coopera-
ton of the several companies.
The worldwide wireless system of
the Radio corporation and the uni
versal service of the Bell system are
thus brought into harmonious rela-
tion that will facilitate the use by
the public of the present wireless tele-
graph facilities of the Radio corpora
ton, and, as the art advances, will
enable the American Telephone and
Telegraph Company to extend it's telc-
phone service to ships at sea and to
foreign countries.
''The public interest lies in the fact
that by exchange of licenses, as sug-
gested by the government, the patents
of each company will be utilized to
greater advantage and the progress of
the art of electrical transmission and
l.