The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1930-01-31
GOVERNMENT LAYS
DOWN BEFORE THE
RADIO MAMMOTH

Washington, d. C.-FP- Atty.
Gen. Mitchell and the Federal Ra-
dio Commission were pictured as
utterly lacking in backbine when
facing the lawlessness of the Ra-
dio Corporation of America and
its allies, in testimony given Jan.
81 before the senate interstate
commerce committee by Oswald
F. Schuette of Chicago, executive
secretary of the Radio Protective
Association, a defense corps of
some 80 independent manufacture
ers of radio receiving sets. The
witness explained that, owing to
failure of the government to come
to their aid in enforcing the anti
monopoly clause in the radio act
and the antitrust laws, many
other independent makers of sets
have surrendered to the trust, or
have failed or quit business dur
ing the past 21a years of his bat
tie against the private monopoly.
How Trust Works
An illustratiin of how the raG'o
trust operates in defiance of fed
eral laws and of the public well
, fare, Chairman Couzens read into
the record a telegram from De-
! troit, showing that the trust had
t forced the Detroit Fire Depart
ment to suspend work on radio
T sending and receiving stations foi
+. its own signaling system. The Re-
2 dio Corporation had refused tC
I sell to the city the necessary ra'
dio tubes because the RCA equip
:, ment was not used. Sets had beer
j installed on the new fireboat Ken
dali and at the central fire tele
e graph bureau, when the trus
: stopped the development. claiming
that its own make of equipmen
f must be used with its tubes, an
e that certain patents were infring
n ed by the makers of the independ
ent apparatus.
Schuette read to the committe
circular letter of warning to re
tail dealers in New York, issue
by a law firm as counsel to tn
trust, citing a number of patent
which it claimed were infringe
by makers of Independent radi
~ tubes. This letter threatened tn
4 dealers with prosecution for tn
= sale of goods infringing its pa
ents.
er TerrOrizing Retail Dealers
~ What the trust was doing, til
at witness said, was not issuing a
ne ordinary notice of alleged infrinl
n ment; it was terrorizing every or
t. of these small retail dealers wit
Id possible suit backed by a FLY
IN billion dollar business Goliath.
ru To determine one patent ca
costs 100000 or more. To figl
an trust which claims ownership
!, $500 patents and has unlimit'
~ funds for legal battles, spells ru
en- for any ordinary business CO
le, Germ. The radio trust brushes
We small competitors in spite of la
III by sheer weight, and hence t
federal government is the on
/. refuge of the small or indepen
10 ent manufacturer who seeks
Y furnish goods TO the consumer
ne a low price.
80 Yet former Attorney Genel
'n' Daugherty gave to one of t
trusts lawyers, James r. Sh'
field, letter of immunity for
patent pool. When the indeper
ex- ents appealed to former Atton
he'll General Sargent they were pass
alb along to Asst. Atty. Gen. Dol
OF van, who did nothing. Then ca
the Atty. General Mitchell, promise
30 antitrust activity. Yet in
2s months he and his assistant. Jc
Lord O'Brien, have not lifted
finger to defend the law. WI
called upon to prosecute the tr
IN for crushing out competition
C lawless methods, they reply t
- the situation is Complicated"