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...situation was unusual, so is the firm that Johnson spoke of. It has little money, only 53 employees, and an ivy-covered mansion in Washington for its headquarters-where its president's office is the master bedroom. Comsat is unique in more important respects: it is a privately owned, Governmentsheltered monopoly that hopes to become a billion-dollar corporation. Its aim: to girdle the world with communications satellites capable of relaying telephone, telegraph, TV and facsimile signals between practically any two points on earth...

Author: /time Magazine | Title: Communications: Launching the Satellite Business | 2/21/1964 | See Source »

Tortured Compromise. Ever since Congress approved Comsat's formation in 1962, after a bitter battle between the champions of Government ownership and private-business control, the corporation has spent most of its time laying the groundwork for action. Last week that action began on several fronts...

Author: /time Magazine | Title: Communications: Launching the Satellite Business | 2/21/1964 | See Source »

...Washington, six big U.S. firms submitted proposals for four possible satellite designs for Comsat to choose from. The six: A.T. & T. and RCA acting jointly, I.T. & T. and Thompson Ramo Wooldridge, Hughes Aircraft, and Ford's Philco subsidiary. In Rome at a meeting with top Comsat officers, skeptical European officials were finally convinced that the company was moving ahead so rapidly that they should work along with it-or see the U.S. monopolize space communications. In about two months, Comsat will put $200 million worth of its stock on sale; with the capital it raises, it will start experiments...

Author: /time Magazine | Title: Communications: Launching the Satellite Business | 2/21/1964 | See Source »

...Comsat is a somewhat tortured compromise between private and Government interests. Half of its stock, which will start out at $100 per share, will be sold to "common carriers," varying from giant A.T. & T. to the Rochester Telephone Co., the rest to the public. The 15-man board will consist of six members from the communications companies, six from the public, and three named by the President. Comsat will be run by its $125,000-a-year chairman and chief executive officer, Leo D. Welch, 65, former Jersey Standard chairman, and its $80,000-a-year president, Dr. Joseph...

Author: /time Magazine | Title: Communications: Launching the Satellite Business | 2/21/1964 | See Source »

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