Evening star., 1928-03-20
WIRE MERGER AID
TO TRADE ABROAD
Big Help to U. S.-Latin
America Business Seen in
|. T. & T. and Mackay Plan.

Special Dispatch to The Star.

Nne0a Dispatch to TIE star.
NEW YORK. March 2o.-The foreign
trade of the United states, especially
that with Latin America, undoubtedly
will be affected II the merger of the
International Telephone & Telegraph
Co and the Msckay companies now
under consideration. goes through.
International trade experts have de-
clsred repeatedly that prompt and easy
communication was a prime eSSentlai
70 the stimulation of commerce. This
merger would aid in providing Such
communication and Il II is approved,
American manufacturers can tell short
iy rust whether they want TO know for
eign customers more closely or not
The International Telephone & Tele-
graph Co. operates through its SubSid-
l2rieS telegraph and telephone systems
in Spain. Mexico. Cuba. Porto Rico,
Chile. Uruguay and Brazil. II also acts
as Q distributor OF household electric
products and equipment for the General
Electric Co in many foreign countries.
II has system Of cable and land iele-
graph lines which connect the United
States With Central and South America.
Has Prominent Place.
Although It has been in business only
seven years. il has attained a prominent
place in the foreign communications
field In 1927 il had a net income o.
Sl44i34 495, The Mackay Companies is
s holding company tor the Postal Tele-
graph system and the Commercial
Gables The company co-oTdnates
communication by telegraph. cable and
radio and speclali2eS in facsimile and
pacto-electrlc transmission. The finan-
cial position az the Mackay Companies
subsidiaries is very strong.
Telephone calls are now being made
a. the rate Of IS .0nn. 900 a day in the
United States. The rate is not SO high
II Latin America, but II only a mod
crate number Of conversations are
transmitted under the new hook-up. il
should enable business men Of the vari-
GUS countries TO come 10 closer under
standing
American business men have over
SIS 900. 600. 600 invested in the countries
which will be connected.
We have got to make it easier for
foreign nations 20 buy our goods in
every way we can" declared J. D.
Mooney. president Of the General Mo-
tors Export Co. today. Improvements
Fl means ot communication and trans
portation have brought nations closer
together until today there is only slight
difference between the mechanics OF
domestic and export business. The long
distance telephone. the airplane. the
radio and the motor car have changed
things materially.
Facilitates Branch Operation
~Our ofices In Brazil. Argentine and
Uruguay keep Up constant communica-
1ion with one another by wireless Many
use airplaneS TO transmit mail. Great
corporations are able 10 operate
branches all over the world because OF
the improvements made IN communica-
tion and transportation"
Americas trade with the nations
which viii be connected by the newly
projected arrangements now Is in a
fairly satisfactory state. That is. II
shows = moderate balance OF trade IN
favor OF the United States. This needs
expansion. since the competition. espe-
ciaIy from Great Britain. Germany,
Italy and France. is becoming more in
tenxsve daily All Of these nations have
an advantage IN ships and shipping
facilities as compared with the United
States. The distance goods must be
carried fsvors this country in most in
stances
II behooves the United States. there
fore. 70 make the most Of the a6van-
tages % communication which now are
undoubtedly possessed In the 1uctua-
ticrs Of foreign exchange alone such
advantage Is OF invaluable benefit.