Communications: Mother Bell in Orbit

The U.S. Government often uses its vast powers to restrain big companies and give the smaller fellows a lift. But last week, as the federally sponsored Communications Satellite Corp. sold its first 5,000,000 shares (at $20 apiece) to U.S. communications companies, executives of American Telephone & Telegraph Co. were pleasantly surprised by the size of their allotment: 2,895,750 shares. That will give A.T. & T. by far the largest stake—a dominant 29% ownership—in the space company, which will transmit television programs, telephone calls and telegraph messages.

Though A.T. & T.'s $58 million, holding is only two-thirds of what it bid...