Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-12
CONGRESS IS ASKED
TO OPEN TRUST SUIT
Resolutions Call for New In.
quiry Into Case Dismissed
by Trade Commission.
BY MARTIN CODEL.

A mandate from Congress ordering
the reopening of the famous radio
trust" suit, dismissed about month
ago by the Federal Trade Commission,
is sought In concurrent resolution in
troduced in the House by Representative
Ewin l.. Davis of Tennessee and in the
Senate by Senator Clarence G. Dill OF
Washing .on.
The resolution instructS the Attorney
General to give immediate consideration
to the 1900 pages of sworn testimony
and exhibits gathered during the five
years of investigation of the alleged
trust and orders the Department of
Justice to take such action on the
charges of violation of the antitrust
laws of the United States as such evil
dence and information may warrant"
Chances of the enactment of the res
olution during the present short ses-
sion of Congress are problematical, in
view of the fact that it must be passed
by both Houses virtually on the eve
of the Inauguration Of a new admins
tration. Both sponsors of the measure
are Democrats whose names have been
closely associated with radio.
There Is decided question whether
Republican leaders will wish at this
time to saddle the responsibility of
another inquiry into the radio industry
upon cabinet officer as yet unnamed
and without knowing President-elect
Hoovers attitude first.
Urged by Manufacturers.
The resolution is being urged par
ticularly by the Radio Protective As
ISOLATION, group of independent man
ufacturers of radio sets, tubes and
equipment, who are banded together
to fight alleged monopolistic practices
in the industry. That it will be vigor-
ously opposed was indicated in state
ment by Col. Manton Davis. vice presi-
dent and general attorney of the Radio
Corporation of America, declaring that
the resolution is based upon IAN am
pliflcation of fact entirely erroneous"
The Dill-Davis resolution makes no
criticism of the action of the Federal
Trade Commission in diSmissing the
antitrust charges, dismissal which
was voted by four of the five trade
commissioners without opinion, but
which the authors of the resolution ap-
parently accept on the presumption
that the commission has no jurisdic-
ton over violations of the antitrust
Jaws and that the remedy for such vio-
lations must be administered by the
courts in appropriate proceedings"
This phrase of the resolution drew
the reply from Col. Davis that the pro-
ceedings before the Federal Trade Com
mission and its order of dismissal do
not support the conclusion that the
case was dismissed on jurisdictional
grounds. Chairman Myers alone an
nounced that he concurred "for the
reason that the commission was without
jurisdiction to enter an effective order"
Former Chairman Humphrey has said
informally that he supported the dis
missal because he did not regard the
trade practices disclosed as illegal.
Sustains Decision.
Col. Davis maintains that the fact
that three concurring commissioners
did not find occasion to qualify the
basis for their concurrence "conclu-
Stvely indicates that the respondents
motion to dismiss because of lack of
Sufficient proof, as well as for lack of
points out that the complaint of five
years standing was dismissed after
counsels' motion and without calling
on the corporations concerned to pro-
duce any testimony"
The trust inquiry has thrown much
light on the bitter situation that has
existed in the radio inquiry. No one
who knows the persistent character of
those pressing the charges of monopoly
against the alleged trust expected that
the Trade Commissions dismissal of thu.
charge would be the last of the case
However, previous efforts to get the
Attorney General to prosecute the
charges, preferred chiefly by the Radio
Protective Association, have been with
out avail. Some of the allegations
have been adiudicated or are pending
in the courts.
Not the least of the uncertainties in
the situation is the probable attitude
OF the incoming administration toward
the merger Of radio interests represent
ed in the giant patent pool" whose
fountain head is the Radio Corporation
Of America. The companies that we're
the subject of the Federal Trade Com
missions investigation are the General
Electric. American Telephone g. Tele-
graph, Western Electric, Westinghouse
Electric & Manufacturing Co., Interna-
tional Radio, United Fruit, Wireless
Speciality Apparatus and Radio corpor-
alton of America.
Copyright, 1929, by North American
Newspaper Alliance)