San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-09
BY MALCOM ELLIS.

New York, March S.-The Ameri-
can Telephone and Telegraph COM
pany hold patents to practically all
the important component parts of n
radio broadcasting set, it will be re-
vealed at the trial of a suit filed here
this week by the corporation against
fringements Of patents.
The suit has caused somewhat of a
hysteria among radio fans, because
it affects each of the $50 broadcasting
stations in the United States, and if
successful prosecuted may mean that
all except 40, already licensed by the
telephone company either will have to
be dismantled or pay tribute TO the
corporation.
Through the patents the telephone
company holds, it is generally admit
ted here in radio circles, radio broad
casting from American stations is a
| closed corporation under the legal and
| complete control of the one company
The suit against station WIN is q
test case and names only eight of the
many patents the company holds.
Must Use These Patents.
Most important among these, how
ever, are five patents covering mOdula-
ton, the most important principle of
radio, the conversion of the tones Of
the human voice into electric cur
rents. W. II. BragdOn, the first
radio editor in America, is authority
for the statement that no successful
set can be built that does not include
the American Telephone and Tele-
graph company's patents on modula-
ton methods. The company controls
also the Armstrong back feed" pa
tent, which is a method of refusing
energy.
Lee DeForrest, radios Edison. has
sold his patents to the company.
He has beeL given credit for hav-
ing done most for the Improvements of
radio. Arnolds multiple Iarallel,
Lowenstein's negative grid, Hoisings
meditation, and COlhirs reissue. pa
tents covering the vital points in radio
broadcasting, are all held by the one
company.
A Surprise Suit.
The suit has taken authorities on
radio by surprise. The American
Telephone and Telegraph company
sat tight and allowed the construc-
ton of stations all over the country
before forcing the issue. The conten-
ton of the company is that under its
patents, which run for seventeen years
no broadcasting station can be built
or operated with-ut being licensed by
the company. In the strict construc-
ton of the radio patents, any school
boy who builds receiving set, even
though the telephone company is not
concerned with them is infringing
upon a patent. Radio broadcasting
sets are sold by the Western Electric
company, which is q subsidiary of the
telephone company, for an average
price of $4,000. These are manu-
featured at the factory and installed
by Western Electric engineers. -Four
! hundred and eighty-seven broadcasting
stations were not so built and the
| telephone company contends that even
the assembling of parts is an infringe
ment of patents.
The company holds too. that its
control extends to the point where il
may prescribe just how much power
shall be used in the transmission from
a station. By this control, the tele-
phone company may limit the range Of
any land station it desires. IL the
suit is successful, as those well in
formed predict it will be the result
will be a monopoly by the telephone
company on the manufacture and
supervision Of radio stations.
A Federal Investigation.
The Federal Trade Commission will
start shortly an investigation of thu
Sadlo monopoly charge against th'
big four of the business-the Ameri
can Telephone and Telegraph com
pany, the Radio Corporation of Amer
lea, the Westinghouse Company anC
the General Electric company.
In the early stages of radio tn,
government granted patents for re
ceiving and broadcasting sets tina
over-lapped the principal holders be
ing the American Telephone and Tele
graph company. on the one hand. anC
the General Electric and Wrestling
house companies on the other. Non,
OF them cOulu manufacture becausl
Of the overlapping. The A. II. & T
took over the manufacture of broad
casting sets as its part in the agree
ment while General Electric anC
Westinghouse took over the manufac
ture OF receiving sets. The Radi,
Corporation Of America markets tn
receiving sets. The control OF radi
therefore, is invested in the big -four
The attitude Of the company was ex
. : pressed in a statement today by II. i