Exploring the Unknown - NASA's History Office

EXPLORING THE UNKNOWN 71
any system of ownership to meet. We believe that if careful thought is given to how or,
indeed, whether, these tests can be met, not only will the public interest be served, but the
rapid development of this new gift of science will mo[v]e ahead unhindered by a premature
struggle over its fruits.
Sincerely yours,
Hubert H. Humphrey Leonard Farbstein Joseph M. Montoya
Estes Kefauver Kenneth J. Gray John E. Moss
Wayne Morse Chet Holifield Abraham J. Multer
Elmer J. Holland M. Blaine Peterson
Joseph P. Addabbo Lester Holtzman Henry S. Reuss
Thomas L. Ashley Robert W. Kastenmeier Ralph J. Rivers
Edward P. Boland Eugene J. Keogh James Roosevelt
James A. Burke Frank Kowalski William Fitts Ryan
James A. Byrne Thomas J. Lane John F. Shelley
Emanuel Celler Richard E. Lankford B. F. Sisk
Merwin Coad Roland V. Libonati Herman Toll
Jeffery Cohelan Clem Miller Al Ullman
Document I-15
Document title: Frederick G. Dutton, Assistant to the President, Memorandum for the
President, November 13, 1961.
Source: NASA Historical Reference Collection, History Office, NASA Headquarters,
Washington, D.C.
In October 1961, the FCC Ad Hoc Carrier (or Industry) Committee Report proposed that a nonprofit
corporation be established to develop and operate the communications satellite system. This corporation
would lease circuits to authorized carriers, which would own the satellites as well as their
ground stations. The corporation would be run by a board of directors, including representatives of
AT&T, ITT, RCA, and Western Union and three public directors appointed by the president. The
committee’s report resulted in immediate controversy, as noted in Frederick Dutton’s memorandum to
President Kennedy. ITT, RCA, and Western Union all expressed concern that AT&T would dominate
such a corporation, while representatives of other aerospace and electronic manufacturers were
unhappy that they would be excluded from participating in such a revolutionary field. Some members
of Congress expressed concern that such a corporation involving all of the international carriers would
constitute a monopoly. The issue was not settled until the passage of the Communications Satellite Act
on August 31, 1962.
November 13, 1961
Memorandum for the President
As a matter of information, you should be aware that the proper kind of entity to own
and operate communication satellites is becoming an increasing source of controversy. I
have brought together a Task Force of representatives from the interested Federal agencies
with the Chairman, Ed Welsh, as Executive Director of the Space Council, to prepare
recommendations consistent with your policy statement in this field. The Executive agen-