page_title: RCA
section_title: Establishment by General Electric
hierarchical_section_title: RCA / Establishment by General Electric
caption_attribution_description: English: "Worldwide Wireless" logo for the Radio Corporation of America.
context_page_description: The RCA Corporation was a major American electronics company, which was founded as the Radio Corporation of America in 1919. It was initially a patent trust owned by General Electric, Westinghouse, AT&T Corporation and United Fruit Company. In 1932, RCA became an independent company after the partners were required to divest their ownership as part of the settlement of a government antitrust suit.
  An innovative and progressive company, RCA was the dominant electronics and communications firm in the United States for over five decades. RCA was at the forefront of the mushrooming radio industry in the early 1920s, as a major manufacturer of radio receivers, and the exclusive manufacturer of the first superheterodyne models. RCA also created the first nationwide American radio network, the National Broadcasting Company. The company was also a pioneer in the introduction and development of television, both black and white and especially, color television. During this period, RCA was closely identified with the leadership of David Sarnoff. He was general manager at the company's founding, became president in 1930, and remained active, as chairman of the board, until the end of 1969.
context_section_description: RCA originated as a reorganization of the Marconi Wireless Telegraph Company of America (commonly called "American Marconi"). In 1897, the Wireless Telegraph and Signal Company, Limited, was founded in London to promote the radio (then known as "wireless telegraphy") inventions of Guglielmo Marconi. As part of worldwide expansion, in 1899 American Marconi was organized as a subsidiary company, holding the rights to use the Marconi patents in the United States and Cuba. In 1912 it took over the assets of the bankrupt United Wireless Telegraph Company, and from that point forward it had been the dominant radio communications company in the United States.
  With the entry of the United States into World War One in April 1917, the government took over most civilian radio stations, to use them for the war effort. Although the overall U.S. government plan was to restore civilian ownership of the seized radio stations once the war ended, many Navy officials hoped to retain a monopoly on radio communication even after the war. Defying instructions to the contrary, the Navy began purchasing large numbers of stations outright. With the conclusion of the conflict, Congress turned down the Navy's efforts to have peacetime control of the radio industry, and instructed the Navy to make plans to return the commercial stations it controlled, including the ones it had improperly purchased, to the original owners.
  Due to national security considerations, the Navy was particularly concerned about returning the high-powered international stations to American Marconi, since a majority of its stock was in foreign hands, and the British already largely controlled the international undersea cables. This concern was increased by the announcement in late 1918 of the formation of the Pan-American Wireless Telegraph and Telephone Company, a joint venture between American Marconi and the Federal Telegraph Company, with plans to set up service between the United States and South America.
  The Navy had installed a high-powered Alexanderson alternator, built by General Electric (GE), at the American Marconi transmitter site in New Brunswick, New Jersey. It proved to be superior for transatlantic transmissions to the spark transmitters that had been traditionally used by the Marconi companies. Marconi officials were so impressed by the capabilities of the Alexanderson alternators that they began making preparations to adopt them as their standard transmitters for international communication. A tentative plan made with General Electric proposed that over a two-year period the Marconi companies would purchase most of GE's alternator production. However, this proposal was met with disapproval, on national security grounds, by the U.S. Navy, which was concerned that this would guarantee British domination of international radio communication.
  The Navy, claiming it was acting with the support of President Wilson, looked for an alternative that would result in an "all-American" company taking over the American Marconi assets. In April 1919 two naval officers, Admiral H. G. Bullard and Commander S. C. Hooper, met with GE's president, Owen D. Young, asking that he suspend the pending alternator sales to the Marconi companies. This move would leave General Electric without a buyer for its transmitters, so the officers proposed that GE purchase American Marconi, and use the assets to form its own radio communications subsidiary. Young consented to this proposal, which, effective November 20, 1919, transformed American Marconi into the Radio Corporation of America. The new company was promoted as being a patriotic gesture. RCA's incorporation papers required that its officers needed to be U.S. citizens, with a majority of its stock held by Americans.
  RCA retained most of the American Marconi staff, although Owen Young became the new company's head as the chairman of the board. Former American Marconi vice president and general manager E. J. Nally become RCA's first president. Nally's term ended on December 31, 1922, and he was succeeded the next day by Major General 
caption: Company logo in 1921 stressed its leadership in international communication.[2]
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