Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-08-11
i. S. CABLE-RAD|O
MERGER IS SOUGHT
Representative White Pre-
pairing Bill Which Will Off,
set British Competition.
BY MARTIN CODEL.

Repeated rumorS Oh capie-EdCdo
merger in this country are given added
credence by the fact that Represents
tive Wallace White. chairman OF the
House committee on marine and nsn-
cries and one Of the authors of the
radio law. is preparing 10 write a bill
containing new provisions which Con-
gress will be asked to incorporate into
the radio act
While Representative White was re-
luctant to discuss the subject during n
hurried visit to the capital before re-
turning to Maine, where a political
campaign faces him. an inkling of his
legislative intentions was cleaned when
he said he was more concerned now
with the long and short wave situation
than with broadcasting.
He said he thought the broadeastlng
problem was purely administrative In
character and properly within the pur~
view Of the newly created radio au-
ministrative agency. the Federal Radio
Commission He was not YET concerned.
he said With proposals to repeat the
Davis equalization amendment or
whether the Radio Commission should
be continued or discontinued, although
these are matters that will come up
shortly after the short session Of Con-
gress convenes, next December.
Representative White saw the great
est problem of radio in the long waves,
which are now used with giant power
for transoceanic communication, and
in the short waves. which can span
great distances with low powers and
are now being used in beam radio
circuits that already engirdle the globe.
Merger Is Rumored.
White would not state whether he
had discussed the merger subject with
the great cable and radio interests,
whose anxiety to combine has become
increasingly apparent since the Impe-
rial Wireless and Cable Conference pro-
posed the merger Of all of the British
Empires cable and radio facilities
whether privately or government owned
From Whites attitude, however. and
from public utterances of leaders in
the American communications field 1t is
evident that the issue which will be
raised before Congress during the
forthcoming and succeeding sessions
will be the fusion of American cable
radio facilities In order 10 meet the
competition OF the new giant British
unit
Section II of the radio act Of 1927,
known as the White law expressly Tor
bids such consultations in this eoun-
try Neither cable or radio companies
may acquire each others properties
under this section, III the purpose or
effect Is to lessen competition or re-
strain commerce
Competition would inevitably be re-
luced If. as has been proposed the
giant International Telephone q Tele-
graph Co should absorb the Radio
Corporation of America, 1t would be
reduced If Western Union and the
Radio Corporation of America should
combine These are now the great
competing American units.
Wall Street Agreeable,
The International Telephone & Teie-
graph, already owning cable. telegraph
and telephone systems throughout the
United States and Europe, recently
Joined with the Postal Telegraph Com
merCial Gables and other Maekay in~
terests iii $500, 900 900 consolidation
Western Union has extensive cable lines
across the Atlantic and leases others
The Radio Corporation Is at present
the only public service tranSoceanic
system of any size iii this country. but
the Mackays recently obtained author
ity TO enter this field ON competitive
basis
Any one OF the merger projects is
within the realm OF possibility, and
there have been public statements 10
The effect that Wall street wants all
three merged into single great
American communication company that
will squarely meet the British compe-
tition for world wide business
The British today lead In cable facil-
itiss. They have 100000 miles and