Evening star., 1926-09-01
NEW YORK-LONDON
PHONE LINE NEARER
A. T. & T. and Radio Cor
popation Agreement Seen
as Big Step in Plan.
BY DAVID LAWRENCE.

The way is being prepared for the
opening of long-distance telephone
service between Great Britain and the
United States.
This is the true meaning of the re-
cent readjustment of the relations be
tween the American Telephone and
Telegraph Co. and the Radio Corpora
ton of America. Instead of an allo-
cation of effort between these COM
panies for monopoly purposes, what
has taken place is a redistribution of
patent rights essential to each of the
two concerns in the further develop
ment of their respective specialtieS.
The subject has become pertinent be-
cause it has been reported that the
Fedora! Trade Commission soon would
begin an inquiry into what was term
ed monopolistic agreement in con-
nection with sale of the radio station
WEAF to the Radio Corporation Of
America, to be operated with WIZ.
Understanding Reached.
Every patent gives its author
certain monopoly and in the electrical
communication business almost every
thing depends on patent rights. When,
shortly after the close of the war, the
Government observed that rival
groups had possession of vital patents
and that scientific progress might be
impeded by infringement suits an
agreement was urged and finally un-
dertaken by the various companies
holding important patents. 1t was
give and take" agreement and had
the full sanction of the Government
authorities. in Washington. It's OBJ
Ject was not to restrain trade, for it
involved no interference in the retail
merchandising Of products, but simply
q definite understanding as to the use
OF patents.
Now, as time has shown the Ameri-
can Telephone and Telegraph Co. the
wisdom Of concentrating on the tele-
phone business and as the Radio
Corporation of America has seen fit
to develop its speciality of spark
transmission of messages, a revision.
Of the original patent agreement has
been made
In effect this has made it possible
for the Radio Corporation to go ahead
with its plans for the development of
radio both inside and outside the
United States without struggling by
law to get hold of patents necessary
for expansion of radio broadcasting
or message communication. AS for
the ship-to-shore business, the. rates
prevailing now are relatively so cheap
that the American Telephone and
Telegraph Co. cannot see it's way
clear to the establishment of such
a service for voice communication eX-
cept at a prohibitive cost, though
there is nothing to prevent such a
step later on If the ships at sea can
be equipped at sufficiently low ex-
pense to connect with land stations
Of the Bell system.
Business Never Better.
The message business across the
Atlantic never was In better con-
dition from the viewpoint of compe-
titlon, for there are not only the mul-
tiple cables of the Postal Telegraph
and Commercial Cable Co. and the
Western Union and Allied Cable lines,
but the almost limitless air circuits
Of the Radio Corporation of America
operating directly or BY relay with
virtually every country in the world.
But il is recognized that there are
some phases Of business relations
which can better be conducted in con-
versation and that the sound of the
voice is q factor, and to this end the
transoceanic telephone service is di-
reCted. To date it has cost huge
sums in experimentation, with moth
ing in the way OF revenue coming in.
After many delays and q good deal
Of red tape. a big station finally has
been erected in Great Britain which
can work with the stations on this
side of the American Telephone and