Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-09-11
ELECRAPH-RADIO COMBINATION
HELD "TRUSE-BUSTINC" STEP
Union OF Mackay and Federal Companies to Inten
sify Competition, Rather Than Create New
Monopoly, Officials Believe.

the Western Union has SO per cent
The Postal hereafter, however, with
the help of the Federal TELEGRAPH
Co.'S radio patents, proposes to com
pete with the Western Union on land
service not only by wires but by wire
less. 1t has informed the Govern
ment:
'"The Western Union, by reason OF
contracts with railroad companies, IL
enabled to reach a number of locali
ties which, for economic reasons, the
Postal has never been able to enter
AS a result of this situation, there
are many communities in the United
States which the Postal System could
serve If it had radio facilities to sup
plement it's present service. If the
present proposed program Is adopted
by the Postal System, it will mean
that many communities will enjoy q
new wireless communication service
at attractive rates.
But even this large job Of taking
on new and expanded fight with
that vigorous and veteran organiza.
ton, the Western Union. does not
satisfy the Postal in it's present mill.
tant mood. It also yearns to take
on the Radio Corporation of America
and grab off competitive part OF
ship-to-shore and shore-to.ship and
ship-to-ship radio service and also an
equally competitive part of trans.
oceanic radio service to Europe and
especially to the Orient.
The Federal Telegraph Co. Of Cali.
fornla is already competing with the
Radio Corporation of America on shin
service in the Pacific Ocean off our
western coast. 1t already has con.
Sldpr4 hIa nrnnnrtinv1 ~ ho4
In that region. The Postal proposes
to try to increase that proportion
there and elsewhere.
Monopoly in Ocean Radio.
In transoceanic radio service from
the United States to foreign coun.
tries the Radio Corporation Of Amer.
lea has no radio competition at all.
1t has maintained, frankly and con.
scientiously, that a monopoly in
transoteanic radio service is neces.
sary. It's president, Maj. Gen. James
G. Hartford, has said:
1t is both inexpedient and economi-
cally impractical to have more than
one such system for each country on
account of the limited number of
ether channels available and the large
amount of capital required"
This argument seems to have made
no impression on the Postal. The
Postal states to the Government that
1t is distressed by the present policy
of the Radio Corporation of America,
that it has been unable ito purchase
radio equipment from the Radio Cor
poration of America for commercial
use," and that now. with the patents
of the Federal Telegraph Co., it is
absolutely determined ito compete
with the Radio Corporation of America
in transoceanic radio communication I"
1t IL operating at the present time
cable from the United States to the
Orient. 1t proposes in particular to
supplement that cable by setting up
wireless stations in China and else
where for the establishment of new
competitive transpacific commercial
radio service In parallel both to its own
cable and to the Radio Corporation Of
Americas Oriental stations and con.
nections.
Thereupon, the Western Union as
serts that 1t will Immediately lay q
fresh, new cable Of its own to the