Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-04
HARTFORD RELATES
VIEWS ON Merger
Radio Head Objects to Fed.
eraI Body Overseeing
Communications.
BIZ MARTIN coDEL.

The apparently inevitable trend to-
ward the establishment of O.. Federal
commission to regulate all forms OF
radio and wire communications, possibly
as the successor of the present Federal
Radio Commission, will undoubtedly be
resisted vigorously by the large wire
and wireless interests affected.
This impression is gained from the
conversations had here this week with
officials of radio and wire telegraph
companies. It is strengthened by state
ments made by Gen. James G. Harbord,
president of the Radio Corporation OF
America, in an interview yesterday.
Gen. Harbord had just returned from
a conference with President Hoover on
the proposal of the International Tele-
phone g. Telegraph Co., which was re-
Gently merged with the various Mackay
telegraph and cable systems, to acquire
the transoceanic and ship radio sys-
TENS of the Radio Corporation OF
America for a $100,000,000 to $780, 00,-
900 stock consideration.
His expression of disapproval OF a
governmental commission control over
communications, particularly in its In
ternational phases, is the first to have
been made openly by the large private
interests since the prospect began to
loom of the creation of Federal COM
munications commission. This prospect
will bulk larger as the date for the
virtual demise of the Federal Radio
Commission as the direct control agency
over radio approaches.
Objects to Commission.
That date is December 81, 1929, un-
der the act recently passed by Con-
greSs. Then the commission ceases to
be an administrative body and assumes
appellate functions.
The proposed huge interlocking of
wire and wireless biography, their
growing competitive status, the prevail
ing dissatisfaction with the Federal
Radio Commission, and the fact that
the Interstate Commerce Commission
has seldom invoked its powers over
telephones and telegraphs have all lent
impetus to the legislative movement
toward consolidating all such control in
the hands of one agency-a movement
which will probably gain considerably
more momentum in the next Congress.
Gen. Harbords objections to the pro-
posed commission for communications
were tWofold. First, he saw great diff
Guilty in having national commission
dealing with international subjects,
since an American company usually
can own only this end of circuit
Secondly. he objected to the "notori-
ously slow" and dead hand" of Gov
eminent commissions over an "emer-
gency business" like the telegraph.
The example of the British, who have
combined all state-owned cable and ra-
dio systems into unified private hold
ing and operating company, was cited
Unification of the systems of Germany,
France and Italy was also pointed out
as a need for like American unity.
Own Only One End.
'"There are few cases." said Gen
Harbord, where cable companies own
both ends of their circuits-the Ameri-
can end and the foreign end. There
are few. If any, cases in which radio
companies own the home end Of the
circuit and the foreign end. In Japan
China (under the new government
Norway, Sweden, Turkey, Venezuela
and possibly some other countries, the
end of the circuit which communicates
with American radio is owned by the
government.
How practicable it will be for a
national American commission to i'm.
pose its views on circuits so composed
seems to be a doubtful question. The
natural tendency win be for other coun-
trieS-and the smaller and less impor-
tant the country the more apt it is to
do ito set up similar attempts al
control in foreign countries of the
American end of such international CIR
cults.
by the very nature of things" Gen
Harbord continued, turning to the EN-
cheney aspect, the telegraph business
is an emergency business. Few people
telegraph unless they desire to avoid
oelay. 1t IS essentially an emergency
form of communication.
1.-The action of Government commits
sioners is VIGOROUSLY slow. To subject
an emergency business, operating un-
der the keeneSt form of competition, to
the dead hand of a Government COM
mission would, to say the very least
not be conducive to telegraphic speed. >
Hope to Consolidate.
What the evolution Of the world ra-
dio-cable situation will be the general
said he was unprepared to predict. II
was the hope, he said, Of the Interna-
tional Telephone & Telegraph Co. to
absorb the Radio Corporation of Amer
lea system to prevent world commune
cations leadership from passing into
the hands of Great Britain. To effect
such a combination 1t is necessary to
amend the prohibiting clause of the
radio law, and 1t was regarding tl1is
obstacle that Gen. Harbord and Sos.
themes Behn, head of the international
Telephone & Telegraph Co., conyerset
with President Hoover and q member
Of the cabinet this week.
With respect to the growth Of thu
Radio Corporation Of America, whose
common stock fluctuations have pre-.
sented one Of the amazing phenomena
of the speculative world, Gen. Marlboro
concurred in the view that the Radio
Corporation of America is fast de.
veloping into a holding company o.
operating subsidiaries In such fields a.
radio and photograph production ant
distribution, ship-to-shore, interna.
tional and domestic communications
talking motion picture production
theater ownership and other industrie.
that are developing around the radit
art.
In fact, the parent company toda,
actually operates directly only its Sc
and tube businesses, all others beinl
distinct though corporate entities. 1t 4
not improbable that even this business
will soon be separately Incorporates
into what may become known as Radio
Victor, Inc, in view of the recent mer
ger with the Victor monograph Co.
tcopyright, 1929. by North American News
paper Aiiiance.)
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