Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-15
YOUNG ASKS RADIO
SUIT Be PRESSED
Company Official Is Anxious
to Have Issue Settled
in Courts.
BY JOHN F. SINCLAIR.
Special Dispatch to The Star.

BY JOHN r. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, May 15.--Fine! Let's
settle 1t now-once for all.
That's substantially the comment of
Owen d. Young Of the Radio Corpora
ton of America AFTER the Department of
Justice had filed suit against his corpo-
| ration, the Westinghouse Electric and
General Electric and several other affili-
| ates, to determine whether these corpo-
| rations were violating the Sherman anti
trust laws in pooling their patents and
operations in the field of radio equip
ment manufacture.
The Young contention is that the
Radio Corporation was established pri-
| marily as a holding company to group
| together enough patents owned by vari-
ou5 corporations into one concern and
to permit the radio industry to manu-
facture receiving sets and sending mes
sages without infringement.
So organized, the Radio Corporation
licensed different companies-14 for the
| manufacture of radio tubes and 81 for
! radio sets-and the industry took on
new life and vigor.
Whether there has been technical
violation of the Federal law will be de-
termined soon. The Radio Corporation
is in powerful position at the
moment-the dominating position in the
industry.
But there are others-like the De
Forest Radio Corporation-which owns
many basic radio patents. The patent
situation in the industry is still a long
ways from being cleared up.
Monopoly charges have been made
against the Radio Corporation repeated
ly in the last few years. This present
Government action is healthy, and
should help clear the whole atmosphere.
Unless, perhaps, by opening it up, 1t
brings in it's wake series of basic pat
ent suits which will put the industry in
an unsettled position for years.
With Watson Washburn, Assistant
United States Attorney General, delving
into the spectacular decline in two New
York stocks last week comes the report
that the individual who asked for
receiyership against the Celotex Co
was not a stakeholder Of record and
only had the stock two days before
filing the suit.
The Stock Exchange, too, has started
its own investigation. 1t expects 10
have a report shortly on all recent
operations in this stockton both the
bear" and the bull" sides.
How can such a problem be met?
The Celotex stock sold at $43ss share
on May 7. Suit for receivership was
filed May 8 at Wilmington, Del, and the
stock dropped from SAYS to $40 In two
hours, recovering points later. closing
at $26.
B. G. Dahlberg, the president of
Celotex, when asked about the situa-
ton, said to this writer:
1.-THE game played on us was sharp
game and should be made as unlawful
as the beer racket or any OF the other
Chicago rackets. II people are allowed
to conduct business on or through the
exchange in this manner, no company
and no securities will be safe from at
tack"
Why not have Federal Incorporation
Of all corporations doing an interstate
business, with a provision that no one
who has not been a stakeholder of
record for at least so days can file a
suit for receivership? This at least
would minimize the danger.
II Federal Incorporation is not prob
able, why can't such a provision be In
corporated into the laws OF New York
and other States?
The charges made here by the presi-
dent Of the Celotex are worthy OF very
thorough investigation, not only by the
government, Out Dy IIle OIICihlS Ol Lklc
Stock Exchange itself.
The large pile of gold which has
come into the United States since the
first of the year-$133, 000, 000-exceeds
the amount which came in for the cor
responding period of last year, when
money rates were high and the ten
oency was all in the direction of gold
import.
BE r,,.n.. -. ~n.t - ,o1S Most
of 1t came from Latin America and the
Far East.
New York has received from South
America net gain of $62 ,463,000 since
the first of the year. San Francisco
has received $106.000, 900 of gold from
the Orient, of which 500 000,000 came
from Japan and 100000 from China.
So the gold export and import move
ment is not exactly clear. When the
stock market dropped last Fall, and
rates went down, most economists be-
lieved that gold would flow out of the
United States In large amounts. 1t
did--for 80 days. But 1t soon stopped,
and since January its been coming in
in greater and greater volume. At the
moment, gold import from Europe is eX-
pected, British sterling being very weak
and almost at the gold export point.
What's the answer? Probably that
france ana England ana Quiet EulO-
pean countries, which have surplus
money to invest, instead of taking 1t
away after the crash, have left 1t in the
United States.
The situation-s most peculiar one
will occasion plenty Of economic discus
sion.
While April's output of motor cars
estimated at 60000-was an increase
over March, production is not yet back
to normal.
OF course, to compare the industry
this year with the corresponding period
of last year when things were booming
is not quite fair.
It is in the medium and high priced
cars where production is off. In the
lov-priced field the output is fairly sat
isfactory.
In about six weeks the British car
the Austin--is to be placed on display
in many parts of the United states, &C
cording to Arthur j. Bryant. the presl-
dent of the American company. 1t Is
low-priced car and is expected TO give
real competition in this field.
Business cannot return to normal I'M
til the steel and automobile industries
begin to move forward again. Until
then business will just whistle to keep
up its courage.
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