Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-14
R. c. A. ASSA|LED
IN RADIO HEARING
Head of Press Wireless, Inc,
Charges Monopoly Seeks
- f
to Control Air.
BY MARTIN CODEL.

With six radio-telegraph stations ir
actual operation and five more pro-
jected. Press Wireless, Inc, the news
paper corporation formed to handle do
nestle and international press dis
patches via radio channels allotted by
the Federal Radio Commission, has
come 10 grips with the Radio Corpora
ton of America and its affiliated com
panies.
The story of the tangled Press Wire
less situation was told to the Senate
committee on interstate commerce here
yesterday, when Joseph Pierson. man.
ager of the press radio group, charged
that dilatory tactics on the part OF the
Radio Corporation of America in the
delivery of equipment were designated
to balk the Press wireless from proceed
ing with it's ambitious radio project.
Charges Patent Rights Abused.
Mr., Pierson asserted that patent
rights were being abused and exorbitant
prices charged for equipment, and de-
scribed in detail how the Radio Cor
poration of Americas proposed patent
licensing and traffic carrying contract
seems to be for the purpose OF pre-
venting competition In the held OF WIRE
less communication"
Charging monopoly, he alluded to the
Radio Corporation of America and the
combination of General Electric, West
ern Electric and other patents it holds
as e secret radio commission" which
is seeking by its grip upon patents to
prevent the Press Wireless from ut1liz-
ing the radio channels granted 1t by
the Government.
So stringent have been license re-
cuirements regarding the purchase and
nee IF ont,ippannt Said Mr. PiarSOn that
consequently some of my directors say
they can regard this license agreement
only as specially designed to make OF
the American press a colony OF the
electric power empire which seems to
be grasping after complete control of
the water and the air OF the United
States"
Aside from the delay in delivering
equipment, Press Wireless, Inc, is being
required to pay down for each trans
mitter and receiver the price charged
by the General Electric Co., which man
fractures them, plus a As per cent
profit to the Radio Corporation of
America, Mr.. Pierson told the commit
tee. BY contracts with foreign manu-
facturers the Radio Corporation of
America also effectually blocks the pur-
chase from abroad Of such equipment.
he added.
Mr.. Pierson presented a synopsis of
the license agreement proposed by the
Radio Corporation of America. 1t re-
quires, among other things. that the
Press wireless use channels between
points within continental United States
only, although the Federal Radio Com
mission has licensed it to use interna-
tional wave lengths also.
Picture Transmission Barred.
1t also provides that apparatus will
be rented but not sold to Press Wire
less. Inc, which shall use its radio sys-
tenn for press messages only, and shall
pay a royalty or rental of 5 per cent
of its gross receipts to the Radio Cor
poration of America. Granting nom
transferable right to the Press Wireless
to use its patents, the Radio Corpora
ton of America requires Press Wireless,
Inc to surrender to the Radio Cor
poration of America, without any charge
whatsoever, all patents or patent rights
1t now has or will ever have, and must
give the Radio Corporation of America
total and exclusive right to lease. trans
fer or assign rights of said patents"
In addition. the Radio Corporation of
America stipulates that the apparatus
shall be used for Geographic code work
only, and not for transmission or re-
ception of facsimile pictures and the
like"
This license agreement" said Mr.
Pierson, docs not appear to US to be
for the purpose of recouping for the
radio corporation combine the costs of
its wireless development and research
plus fair profit. 1t seems to be for
the purpose of preventing competition
and fencing in the field of wireless COM
munications. In the broadcast field,
covering virtually identical patents. the
wireless combine has not imposed these
confiscatory license agreements. nor has