Teletype Split

Known to few was the Morkrum-Kleinschmidt Corp. of Chicago. When it changed its name to Teletype Corp. the nature of its business became clear but much more than half of its sales were made to three customers: American Telephone & Telegraph, Postal Telegraph & Cable, Western Union. Little surprise was occasioned when Teletype Corp. was bought by A. T. & T. for $31,500,000 (TIME, Sept. 29, 1930).

A teletype is a machine which can send and receive typed messages over a wire. Business houses use them to connect with branch offices; police and fire departments are big users. TIME uses such an instrument between Manhattan editorial offices and Chicago proofroom.

In the past the Teletype business has been in two parts. The Bell system has leased wires and instruments for intercommunication between individuals. The telegraph companies have installed machines to connect big customers with branch or central telegraph offices for the purpose of sending telegrams. Last week came a sharper division. Bell announced it will route messages over its regular wires, that one Teletype-user may transmit (through a central Teletype exchange) a message to another with whom he has no permanent wire connection. Rates will be based on time (limit 60 words per minute) : 20-c- for a five-minute local message, $4.60 for a New York-San Francisco communication. Price covers two-way service.

Simultaneously the telegraph companies announced a new service, similar in that teletype-users on either Postal or Western Union can obtain direct communication with each other. The telegraph system will not, however, be tied up with Bell, so that customers must choose one of the two.

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