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12/15/33
RADIO-WIRE MERGER BELIEVED FEASIBLE BUT MAY TAKE TIME
Despite opposition voiced against the proposal that the communication services radio, telegraph and cable be merged, one of the three recommendations made to President Roose¬ velt by the Committee headed by Secretary Roper and Gen. Charles McK. Saltzman, former Chairman of the Federal Radio Commission, it seemed to be the impression that some such a consolidation under governmental regulation is inevitable. As to when this might t ■•ke place no one seemed to be able to definitely forecast. It might be years if the experience of consolidating the railroads is an example to go by. There will very likely be some sort of bill drafted and introduced but with the time required for hear¬ ings and all, there seems to be small likelihood of any such legislation being enacted this session.
Some seemed to regard it simply as a "trial balloon" sent up by the White House to try out public opinion, but others considered the work of the Committee much more seriously.
"It wasn’t practical to have a lot of telephone com¬ panies", a communications expert remarked, "and the formation of the A.T.&T. was the logical result. There is a duplication of service of the Western Union and the Postal. One or the other companies could handle all of the business. There are twice too many employees, and releasing them at this time would further add to the unemployment problem. Nevertheless, the duplication and economic loss exists in telegraph and cable communication just as it does in a duplication of radio service. I believe such a merger as suggested is entirely practicable and some day will be brought about,-"
Senator William E. Borah declared Government ownership would be preferable, while Senator James Couzens (Republican), Michigan, said he would fight any attempt to bring about a single monopoly.
In the House * Speaker Henry T. Rainey said the whole matter "should be deferred until we get out of the depression."
Two alternative recommendations were made in the inter¬ departmental committee’s report monopolies in each communica¬ tions field under Government control, or Government ownership of the communications industry.
"When monopolies are created to be run by a commission, the monopolies will soon run the commission", Senator Borah com¬ mented.
"If that is the alternative to Government ownership, I would favor Government ownership and control,"
Senator Couzens said he would not object to monopolies in the various fields of communications, providing there was
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