Evening star., 1934-05-17
WIRE CODE FOUGHT.
BY R. c. A. OFFICIAL
Counsel Holds That New
Regulation Methods Are
"UnthinkabIe."
BY the Associated Press.

BY the Associated Press.
A Radio Corporation of America
official told the N. r. A. today 1t
was almost impossible to think the
Government of the United States
would provide new methods of regula-
ton" for the telegraph industry.
Manton Davis, general counsel, testi-
fled at a hearing in opposition to the
proposed telegraph code.
Opposition to imposition of code
also was voiced by the American
Telephone & Telegraph Co., but it
agreed to cooperate with the admin
istration.
Earlier Western Union had threat
ened to challenge fundamentals OF
the national recovery act" in the
courts if code is forced on the indus
try.
Questions Code Right.
c. P. Cooper, vice president of
American Telephone g. Telegraph,
questioned directly the right Of N.
r. A. to impose such a code, but
offered suggestions for changes lin
the hope that if the administrator
adheres to what We take 1t Is his
tentative conclusion and imposes q
code on an expanded telegraph indus
try he may be fully informed as to
the facts which have a bearing on
the matters here relevant"
Davis said his company did not
consider the communications field SUBJ
ject to a code because of regulation
provided now by the Interstate Com
merce Commission and proposed by
the communications bill now before
Congress.
Davis, however. approved in one
respect N. r. AS code draft. He
said he understood the language OF
one section to mean that it would
not attempt to regulate foreign radio
communication contracts. He Sug-
gested that If the code were adopted
further clarifying language should be
added.
The Radio Corporations concern
over the code involves r. c. A. Com
munications, Inc. the subsidiary
handling transatlantic and trans
Pacific messages in competition with
the cable companies.
Fights Exclusive Contracts.
Postal Telegraph and its subsidi-
aries, seeking code, have demanded
that N. r. A. put an end to exclusive
contracts held by r. G.. A. with for
eign governments.
In objecting to double regulation
Davis pointed out it was conceivable
that one group. the proposed code
authority. would find certain rates
unreasonable, and the other regula-
tory group might approve them
creating what he called an impos-
sible situation.
Cooper said A. T. & T., had nc
objection whatever to public regula-
tion of its telegraphic services. and
in fact, I'VE believe that it is IN the
public interest"
He added that his company con-
sidered the Interstate Commerce Com
mission and not N. r. A. had juris-
diction over trade practices.
1T seems to u.s." he added, 1.-THE
inevitable effect of the proposals Sug.
gested by that (PostaD telegraph
company would be the raising Of rates
to our customers, which under present
conditions we think would oe against
the public interest, and we think tht
proposals made would adversely
affect our employees and their well
fare"
Postal has favored the code and
has accused Western Union of unfair
propaganda against the regulations.
Threatens Legal Contest"
Francis r. Stark, general solicitor
of Western Union. said that If the
code were pressed, the company woult
have on alternative but Ito wage 9
legal contest along all fronts. neces.
sarily challenging some of the funda.
mentals of the national recovery act.
Il do not believe that there is any
fear. should this proposed code OF