Monopolies Wanted

Last week Chairman Owen D. Young of Radio Corp. of America appeared as a witness before the Senate Interstate Commerce Committee. In one word he approved a bill by Senator Couzens to create a Federal Communications Commission comparable to the Interstate Commerce Commission; in many words he pleaded for two great monopolies in the communications field:

External Monopoly: A merger of Radio's wireless, International Telephone & Telegraph's wireless and cable. Western Union's cable. (Radio would sell its wireless to I. T. & T. now if the U. S. radio law did not forbid.) Advantages:

1) Ability to meet world-wide competition of consolidated foreign units like Britain's Cables & Wireless Ltd.

2) Better sending and delivery facilities for all.

Internal Monopoly: Merger of Western Union and Postal (I. T. & T. subsidiary) into one telegraph company for the U. S.

Advantages: 1) Elimination of wasteful duplication of equipment and service. 2) Stimulation of research to improve present methods. 3) Better, cheaper service for the public.

Both monopolies Mr. Young would put under strict government regulation. He recommended that, if private enterprise were not to be trusted, then, as an alternative, the U. S. government itself should undertake the external communications monopoly. Existing laws make such mergers illegal; Mr. Young would have them quickly changed.

General James Guthrie Harbord, President of Radio Corp., opposed a Federal Communications Commission, suggested instead a Cabinet Department of Communications.

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