“In the matter of Mr. Young’s views on international communications, with all respect, of course. I put them in the class with any advice he might feel moved to give to nursing mothers.”
So, last week, spoke smartly-tailored Newcomb Carlton, head of Western Union Telegraph Co., to the Interstate Commerce Committee of the U. S. Senate sitting to ponder national policy on communications, nerve of trade, nerve of war. Last month Owen D. Young of Radio Corp. had told the same Senate Committee that a merger of Radio Corp.’s wireless, Western Union’s cables and International Telephone & Telegraph’s wireless & cables was essential (TIME, Dec. 23). Argued Mr. Young: only by such a monopoly could U. S. communications compete with such monopolistic foreign communication systems as Britain’s Cables & Wireless, Ltd. Mr. Young also suggested the consolidation of Western Union and Postal Telegraph (I. T. & T. subsidiary) into one all-inclusive telegraph system for the U. S.
It was Mr. Young’s argument concerning threatened British control of world-communication to which Mr. Carlton took most pointed exception. “There is no menace,” said he. “It [the menace] is one of the most fantastic bogies dressed up in my experience.” He described British Cables & Wireless, Ltd. as a “creaking, awkward, ponderous set-up.” He said he could wish a business competitor no worse luck, than to be hooked up in such a system, maintained that his com pany and Radio Corp. “hold the British merger in the hollow of their hand.”
Mr. Carlton further testified that he had no objection to a merger between Radio Corp. and I. T. ” T. (Radio has long wished to sell I. T. & T. its communications business) and admitted that his own company had discussed a similar merger with Radio Corp. But Mr. Carlton did not like Mr. Young’s terms. “At no time and in no way,” said he, “has the genius of Owen D. Young found more eloquent expression than in the framing of the terms he wanted us to agree to. The only trouble was, we were awake.’ Mr. Young’s terms, Mr. Carlton complained, would have put Radio Corp. “virtually in control of Western Union.”
According to figures by which Mr. Carlton substantiated his scorn toward the “British menace,” Western Union handles 44% of the 51,000 messages sent daily across theAtlantic. Commercial Telegraph (I. T. & T.) 29 1/2%.
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