The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-09-27
HOOVER BENIGNLY Y.
ASSISTS TRUST.
TO GRAB RADIO
25s More Independents
Forced to Surrender

WASHINGTON, (FP) Sept. 3D.
Twenty-Five of the most important Of
the Independent manufacturers of
radio equipment in the United States
have bowed the knee and paid tribute
to the radio trust, according to latest
returns from the field. This means
that the threat of ruin issued by the
Radio Corporation Of America, based
on its possession Of many hundreds of
patents and its winning of several
suits for infringement, has caused
these independent concerns to agree
to pay minimum of 100000 each,
per year, for the privilege of stay
ing in business.
Sen. Nye of North Dakota and
other men in Congress who have had
the experience Of being virtually eX-
Guided from the air during their
campaigns, are going to back q de-
mand for senatorial investigation OF
the radio trust They will try to keep
this inquiry separate from the probe
of the General Electric power trust,
which is parent to the Radio Corpora
ton What they see in the radio sit
uation is vast machinery for sitting
progressive opinion and discussion in
this country, and at the same time
sitting technical development and
better and cheaper production of
radio service.
Independents Unite.
/ During August there was organized
at Chicago, the Radio Protective
Assn, comprising Independent manu-
facturers who refuse to be killed off
by the weight Of the trusts eXactions.
AS outlined by the Association in a
statement made to the public, the
trust requires that all Independent
manufacturers who wish to remain in
business shall:
/ /. Pay ~ per cent of their whole
sale receipts to the Radio Corpora
ton for the '1icense" to avoid suits
for infringement Of patents. The
minimum annual royalty is 100000.
2. Buy all tubes from the trust,
thereby binding themselves to build
their sets around the trust type of
tubes.
3. Carry label on all products,
indicating obedience to trust require
ments.
Dealers Writhe.
Oswald F. Schuette, executive
secretary Of the association, states
that retail dealers who have been
warned against selling any goods that
do not bear the trust label are show
| ing active sympathy with the revolt.
4 He anticipates a series Of startling
disclosures when the Federal Trade
Commissions inquiry into the radio
trust, suspended for the summer, is
| resumed next month. Dealers and
manufacturers who have feared
punishment at the hands of the
Radio Corporation if they made any
complaint at the crushing tactics of
the monopoly, are getting ready to
speak.
Discussion of the case from the
standpoint of the Independents has
been excluded from one of the chief
trade journals, under pretext that it
is "not constructive"
Hoover For Trust.
In its appeal to Congress and the
public, the Protective Association
says: $50 far as the listening public
/ is concerned the contamination of this
monopoly will mean higher prices for
sets. Under the cry of sterilization
there will be stagnation in the de-
velopment of the radio industry; I'M
der the pretense of the patent laws
there will be stifled art; in defiance
of the antitrust laws, there will be
the destruction of competition.
"The future of radio is still I'M
touched. Before US there opens a
broad vista Of partially explored
fields of radio science-television
wireless telephony, photography,
broadcasting of power, the breaking
down and building up of electrons in
food, the transmission of the lifegiv-
ing ultra violet rays, and the many
ramifications that lead from these
Yet in all of these there is to be no
commercial basis for independent or
competitive development"
Secretary Hoover has always looked
bcrevolently upon the Radio Corpora
ton. He is the apostle of "stabiliza-
ton and he will probably get into
this fight.