The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-11-28

prOfltaDle business cOndltl0nS
losing money in recent years.
The seven men to whom
the job has been assigned
constitute the federal COM
municationS commission, di-
rected by the last congress to
study rates, business methods
and the financial status of
telegraph, telephone and radio
companies.
They must answer four
major questions:
1. Is Government-regulated monopoly of
telegraph operations the solution to the
problem?
3 Would complete government owner
ship be feasible?
8. Should a policy of unrestricted COM
petition be continued?
4. Would consolidation of the Western
Union and Postal Telegraph companies be
in the public interest?
Hearings Start Dec. 3
The commission starts hearings
Dec. 3 on proposals to consolidate
the major telegraph companies, and
will study rates and other phases
of the communications question.
For years the average American
has accepted telephones, kilograms
and the radio casually. His annual
expenditure for kilograms was eSti-
mated two years ago at SO cents.
His monthly telephone bill was less
than 10 cents.
Interest in the communications
industry spread rapidly when Presl-
dent Roosevelt indicated desire to
peek into the bookkeeping of major
companies. One most important
question before the commission in
wolves unifcation of radio and cable
operations Some contend cOnsOl1-
dationS are necessary to win lead
ership in foreign fields. Congress
has refused repeatedly to revise the
1927 radio act prohibiting such &C
ton.
Arguments Cited
American executives are prepar-
ing to lombard the commission with
these arguments:
1. Radio and cable are supplemental
to each other and should be operated
under one management as in Great
Britain.
2. Cable lines provide faster and more
accurate service at present than the radio
which often is subject to adverse at
mospheric conditions.
8. Radio is necessary service for
smaller centers and inland points not
directly served by cable.
4. In wartime radio does not afford the
secrecy provided by cables.
5. Bitter competition between radio and
cable companies is resulting loss of bust
ness to foreigners.
Competition between major tele-
graph companies is another prob
lem. Postal Telegraph and West
ern Union are spending millions an
nually in bitter fight over exclusive
contracts, rates and special services.
The battle has been made more
tense with the invasion of the tele-
graph field by the powerful Ameri-
can Telephone and Telegraph Com
pany.
The communications experts are
devoting close study to arguments
for mergers of principal telegraph
companies. One high Official said:
I'VE would not want to upset the
Presidents recovery program by APP
proving anything that might throw
men out of work. Our job is to
see that the United States has the
best communications system in the
world. The question is, will con-
solidation accomplish that result?'"
Will Weigh Mergers
The commission also wants to as
certain if mergers would benefit
persons living in sparsely populated
areas now without telegraph facili-
ties. Some company executives con-
tend that with expensive COMPETE
UlOll ~ 10 ltllkSOOoAO4C " OASNAAN 1870
into small communities.
Mr.. Roosevelt's interdepartmental
committee appointed last year to
study the communications problem
reported that although the United
States docs not have fully ade-
quate telegraph service, it must be
remembered that competitive pri-
vate enterprise has made our already
extensive telegraph service possible"
A majority of the committee con-
Guided that unrestrained compet1-
ton resulted in higher rates, and
said that under unified service, rates
might be lowered and facilities ex-
tended