Evening star., 1924-04-10
COMBINE is DENIED
BY RADIO CONCERNS
Six of Eight Companies Accused
Dispute Validity of Trade
Commission Complaints.
SAY U. S. BACKS PACTS
Admit Certain Agreements in De-
veleping Industry.

There is no combine in the radio
business which is detrimental TO the
public interest or in violation Of laws
TO the extent that the Federal Trade
Commission has the Jurisdiction which
it alleges in its complaint against
eight companies dealing in radio
equipment manufacturing and selling.
This is set out In answers to the
complaint, six. of which were filed
today with the commission.
The respondents named in the COM
plant were the General Electric
Company, Westinghouse Electric and
Manufacturing Company, the Inter
national Radio Telegraph Company.
United Fruit Company, Wireless Spe-
cialty Apparatus Company and Radio
Corporation Of America, which filed
their answers early today, and the
American Telephone and telegram
Company and the Western Electric
Company, Inc, which are to be heard
from before the close of business 10.
day.
Admit Certain Agreements.
While denying the existence or
combination against the public IN.
terest. several of the respondents
nevertheless admit certain agreements
between them separately and sever
ally. However, both the Radio Cor
poration of America and the Genera
Electric Company. in substantially
the same language, say that the de-
velopment of radio communication.
under the agreements named in the
complaint. and admitted except as to
specific terms, was brought about
through the sanction and at the in
stance Of officials of the United States
Says the Radio Corporation Of
America in its answer:
Respondent alleges that IL was
created in order to carry out the ex-
pressed desires and wishes, and a
the instigation of officials. officers and
respondent was created primarily
with motive of carrying on. and il
has since carried on, patriotic sery-
ice of making a worldwide communi-
cation system Of radio in which the
most importantly in the complaint
United States of America and with
American citizens: that certain of the
acts and arrangements (and those the
most importantly in the complaint.
complained of were taken under su-
wants OF the United States: that the
acts and arrangements which are in
the complaint complained Of have
been in the public interest and TO the
public benefit, and have been entirely
reasonable and have greatly contrib
uted to the rapid growth OF the art
of radio.
Through them and because of this
respondent (the Radio Corporation OF
America) the modern art Of radio
TpTnrninatinn exists
Have InterIocking Personals.
There are admissions in several. Of
the answers that the directors OF one
corporation were officials in the other.
While admitting certain agreement
between the several corporations and
several letters mentioned III the orig
inal complaint, the answers almost
as a whole say that the terms men
toned in the complaint are too vague
and indefinite to permit them TO make
an affirmation or denial. They. how
ever, ask to be permitted to present
the originals for proof.
All object to the complaint on the
ground that it does not state facts
sufficient to constitute a violation OF
the federal trade act. and that 1t /"
too indefinite and uncertain 10 inform
the respondents of the nature of the
charges All request the dismissal
of the complaint on the ground that
the commission has no Jurisdiction,
The United Fruit Company denies
that the Wireless Specially Apparatus
Company is a subsidiary. 1t says that
n did have an agreeme Mt with this com
pany which permitted it to get wire
less sets, and that in 1917 1t gave
such financial support to the latter
company as to enable it 10 meet its
war contracts, and thus acquired =
controlling interest When the
Radio Corporation of America was
formed it sold one-half its interest to
the General Electric Company Since
1921 it has not held a controlling in
terest in this company.
Says wireless Is Incidental.
This company goes into the detail
of it's fruit business, and says that
the wireless is merely incidental, ar
there is not enough business in the
pany. It says that about March II,
1921, it acquired 100000 shares Of
preferred stock and 100000 shares of
common stock in the Radio Corpora
tion of America, paying s1,ooo.O00 for
it, and that on December 81, 1922. 1t
owned 100000 shares of preferred
and 10000 shares OF common stock
of the Radio Corporation of America.
1t admits that George S. Davis, gen
eraI manager of the radio department
of its company, is a member OF the
board of directors of the Radio Cor
poration of America.