Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-15

transportation by automobiles. Sixteen
miIlions have telephones, which by
means of radio enable them not only
to talk to all of North America but TO
most of Europe. Twenty-Five millions
60 to movies every day and 20,OOO.0O0
of them are talkies, too. They read
80 900, 900 daily newspapers and 50,OOO,-
600 of them are able to listen to the
same speeches, songs or music by raolo,
Use Of Radio Just Starting.
There has never been anything like
1t in the history of mankind, and we
are only started In the use of radio.
Radio Is still in its infancy. No other
infant ever grew so rapidly. It grew
from 10 stations to 700 stations In I'VE
years. It does nearly billion dollars
business annually. All other means Of
communication have been private, secfet
and limited. Radio Is q one-way mass
communication that cannot be kept
private, but is necessarily open to all
It Is fast becoming the greatest molder
Of public opinion in America.
Here In the United States we have
been able to keep radio free from tax
of any kind. 1t Is making US feel to-
gether, think together and act together
and live together as never before. Single
personalities become world forces by
the aid of electricity transmitting their
voices and thoughts all over the earth
But IN radio as in every other bust
ness In America, except in farming, big
money is trying to monopolize the art
for private ends. And just as 1t was
the duty OF Government in the savage
condition OF society to protect the
physically weak from the physically
strong, SO 1t has already become neces-
sary for the Government to protect the
financially weak from the financially
strong in the development and use Of
radio.
Other governments have been afraid
to permit the private ownership and
private development of radio. But here
in America we have encouraged private
ownership and private development.
With that have come the dangers Of
monopoly.
In 1927 Congress passed the radio
law. This created Radio Commission
and gave it power to prevent monopo-
listic control of radio. If the commits
sion does not protect the people, 1t is
not the fault of Congress, but the fault
of the members of the commission, and
they should be removed from office by
the President and new members ap-
pointed who will protect the peoples
rights. BY granting licenses for ex-
tremely high-powered stations of 50.-
600 watts or more, and by granting
cleared channels all over the broad
casting land to stations in q monopo-
listic organization, and by strict limi-
tations upon Independent broadcasting
stations, the Radio Commission can
independent. free Use Of radio in the
United States. On the other hand, 1t
has full power to break up any at
tempts to monopolize the air. 1t is SIM
plv a question of whether or not 1t has
the will and fearlessness to do its duty
TO the radio listeners, for whom. after
all. the radio regulation should be de-
signed. y
Steps Toward Merger.
Just now the international Telegraph
& Telephone Co. is asking Congress to
repeal section II of the radio law
Why? So 1t can buy the interoceanic
radio telephone stations of the Radio
Corporation of America. Section II
prohibits the merger of wire companies
with wireless companies. The actual
value of the property to be bought Is
$25 600, 900. The price to be paid is
900 is to pay for contractural rights
with foreign governments and alleged
values of patents in use.
The market value of the stock is
more than 100000, 000., In other words,
the purchasers of the stock will be pay
ing $75,000,000 which is watered value.
Rates for telephone and cable messages
must then be high enough to pay divi-
dends not only on the $40, 600 900 worth
of stock, but upon the more than $780,
000, 900 of watered values. That is the
economic reason for preventing such
mergers. The other reason Is to prevent
| the wire companies from sitting the de.