The paper describes the development of a two-way radio-telephone system and its use in extending the Bell Telephone System to connect with ships at sea. The electrical considerations and the experimental work involved in determining the system-design of the radio link are discussed. Two land stations were established, one of them a permanent three-channel station on the New Jersey coast. Two coastal vessels and finally one trans-Atlantic liner were equipped. These installations are briefly described in the paper. The operation of the combined radio and wire system is explained, particularly in respect to the transmission characteristics of the over-all system and the effect thereupon of the movement of the vessel and of variations in atmospheric conditions. Measurements of the variations in the field strength received from field vessels at sea show why it is possible to receive over very long distances at favorable times at night and not during the day. The method of establishing combined radio-telephone-wire circuits to ships is described and representative results are given of the considerable telephone traffic which was handled over the system experimentally during a period of trial operation. Tests of multi-channel telephone operation to several ships thru the Deal Beach shore station, and also tests of simultaneous telegraph and telephone operation from the same vessel are described.