Evening star., 1934-05-08
|. c. c. ADVOCATES
BODY TO REGULATE
WIRES AND RADIO
Declares Consolidation Un.
der Commission Would Be
"Sound Policy"
SHOWDOWN ON N. R. A.
| POWERS is DESTINED
Johnson Declares He May Have
to Impose Code on Communi-
cations Industry.
By the Associated Press.


Creation of a Federal Communica-
tions Commission to regulate tele-
phone, telegraph, radio, wireless and
cable systems was advocated today by
the Interstate Commerce Commission.
Meanwhile Hugh S. Johnson, N. r. A.
chief, said that while he may have to
impose a code on the communications
industry, Il don't want to impose any
code if l can get out of it."
The N. r. A. yesterday made public
a code drafted for the unwilling tele-
graph industry. 1t was the first time
such step had been taken.
Johnson said the code would be
given a hearing May 16 and would go
through the regular administrative
procedure.
Prefers Agreement.
I'D rather have an agreement than
to impose a CODE" he told reporters
There is a good deal of talk about
imposing a communications code. 1
may have to, but 1 have never failed
to negotiate an agreement yet and I
don't expect to-"
The position Of the Interstate Com
merce Commission was given by Frank
McManamy a commissioner. in tes-
tifying to the House Interstate Com
merce Committee on the Rayburn
bill He said:
The Interstate Commerce Com
mission believes it to be sound public
policy and in the interest of effective
and economical regulation to con-
solidate under a single regulatory
commission such closely related &C
tivitieS.'
Amendments Proposed.
Maj. Arthur B. Cotton told the
House Committee the War Depart
ment was heartily" in favor of the
principles of the legislation. but pro-
posed amendments to insure use of
the different forms of communlca-
tions by the Government in the event
of war.
Henry A. Bellows of this city, chair
man OF the Legislative Committee of
the National Association of Broad
casters. Endorsed the idea behind the
Rayburn bill. but protested against
ANY proposal for the repeal of the
radio act of 1927, as amended
If changes in it are desirable" he
said. I'VE believe they should be made.
as the President indicates. only after
investigation and study by the new
commission"
Due to its action of yesterday, the
N. r. A. is headed for a showdown
on the legality and practically of
its most drastic power
BY unveiling the code for the un-
willing telegraph industry. N. R. A.
officials deliberately pitted their power
against the will of the communica-
ton companies. Involved also was a
test against host of industrial cor
porations now receiving preferential
treatment. which the telegraph code
would cut down or take away.
Ends Long JOckeying.
The action was taken only after
efforts to obtain voluntary code had
been exhausted. 1t marked the end
of a long period of jockeying during
which Gen. johnson and his aides
have deliberately avoided testing with
any industry the more dictatorial
powers of the national recovery act.
Imposition of a code is regarded
to all intents the same as writing
law for the industry affected. equal
in scope to the authorization for Ii
censing industry. Nothing like it has
been resorted to so far.
Every so-called crack down" ac-
ton of the last 10 months has been
either perSuaSion-sometim fairly
forcible-on an industry to accept
something voluntarily, or else imposi-
ton of one or two terms as a condi-
ton to approval of a volunteered
code.
In the telegraph case. with all but
one group fatty opposed to any code,
N. R. A is proposing to change long
standing conditions and alter the in
ternal economy of the industry on
the ground that existing conditions
burden commerce and reduce employ
ment.
At the hearing a week from tomor-
row. N r. A will record everything
interested parties want to say, and
after that it will ask the President
to act.
A significant feature of the planned
code is that if adopted it will strip
extensive and powerful interests of
financial advantages running into
millions of dollars.
N. R. A. carefully announced a con-
clusion by the officials involved that
these advantages are not fairly held.
Among the things it would abolish
are: Exclusive rights of Western Un-
ion to something like $4,000, 900
worth of business annually; use by
many corporations of private wire
circuits leased at figures allegedly out
of line with regular charges for the
same volume of business; free use
of these circuits by clients of the
lesSeeS to the tune of millions of
dollars worth of words each year.
The department spokesman said it
n1