Evening star., 1934-02-04
IS GIVEN
VIEWS ON MERGER.
Communications Companies
Take Stand on Plans
for Unification.

Definite views of communications
companies Of the country on the pro-
posal Of the Interdepartmental Com
mittee. urging unifications in the
various fields OF wire and radio COM
municatloS under rigid Government
control, have been submitted con-
hdentially to congressional leaders
called upon to draft new communi-
cations legislation, II ls learned on
highest authority.
Counsel for the American Tele-
phone g. Telegraph Co., Western
Union, International Telephone &
Telegraph and Radio Corporation of
America, 1t is known, have submitted
to Congress a proposed amendment
to the existing radio act Of 1927
which, in their opinion, would allow
the kind Of mergers contemplated by
the 1nterdepartmental Committee. In
addition several of the companies in
diVidually have submitted letters eX-
pressing in detail their views on legis-
lation which would eliminate barriers
" COIlSOlIOdtlOIlS anu ultimately re-
suit in reduction of rates for wire,
cable and radio communications.
Will Call Farley.
Thus far, public announcement has
been made only Of reports of the
Interdepartmental Committee, which
recommended, among other things,
creation of a Federal Commission on
Communications to absorb the func-
tons of the Radio Commission and
other agencies having control over
communications. Asked about these
supplemental reports and data. SEN
ator Dill of Washington, chairman Of
the Senate Interstate Commerce
Committee. said he did not propose
to make them public until a tentative
bill is completed and hearings are
called-possibly about month.
Whether legislation along the lines
proposed by the Interdepartmental
Committee will be enacted at the
current session is prob,ematical. In
submitting the report to Congress last
week. together with minority report
by Capt. S. c. Hooper. director
Of naval communications, President
Roosevelt indicated he will call men,
bers of the Senate and House Inter
state Commerce Committees for a
conference on the whole subject.
Should he urge legislation at the
current session. it is more than likely
that steps will be taken for i'm
mediate action. Otherwise, congress
sional leaders are disposed to leave
the matter for future consideration
in view Of the welter of relief legis-
lation awaiting consideration at the
current session.
Chairman Dill and Chairman Sam
Rayburn of the House Interstate
Commerce Committee are now CO.
operatiyely drafting a communica-
tons bill It is their plan TO call
hearings soon after the draft is CON-
pleted No one will say when the
measure will be ready for introduce
ton. Senator Dill is inclined to limit
it to proposal for a CO.nrlunica-
tions Commission. quasi-iudicial in
character, and to develop merger and
regulatory provisions following the
hearings. at which the heads Of all
communications companies will be
called upon to testify together with
Federal officials interested in COM
munications.
Mergers Are Favored.
Except possibly for A. T. & T.
which has been a monopoly in the
domestic telephone field for years.
all the major companies are under
stood to favor mergers under which
duplication. overlapping and i'll
equitable competitive and economic
conditions exist. Tney are inclined
to favor the view Of the Interdepart-
mental Committee for fusions in the
fields of external communications.
both radio and cable, and in internal
communications, both wire and radio
They have in mind, for example,
a fusion of Western Union and Postal.
both of which compete in domestic
telegraphy. and often duplicate each
others services in external commune
cations: they foreSee a logical ANAL
gamation Of the globe -girdIing radio
circuits cf r. c. A. with the radio
and cable facilities of I. T. {, T.
which. in addition to Postal, operates
Mackay Radio, All-America Gables
and telephone and telegraph con-
cessions in Spain and numerous
South American countries
All things considered, competent
observers feel that many months will
pass before anything tangible along
the lines Of the Interdepartmental
Committees recommendations takes