Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-20
DILL CONDEMNS
RADIO PROJECT
R. C. A. Reorganization Plan
Stirs Up Tempest in
Official Circles.

Repercussions in official Washington
to the double-barrelled reorganization
project of the Radio Corporation of
America were not long in coming.
On Capitol Hill Senator c. c. Dill,
again assuming the role of radio trust
buster" bitterly condemned the project
as an effort on the part of the General
Electric Co. to establish world wide
radio monopoly. At the Department of
Justice a new investigation of the
r. c.. A., in the light of the three-ply
arrangement by which General Electric
and Westinghouse will get unquestioned
control of the r. c. A., was instituted.
Considered the most far-reaching and
important transaction In radios in
dustrial history, the proposed plan is
the only topic of discussion in radio
circles here. Some observers believe 1t
to be a bookkeeping" arrangement,
with the two electric companies switch
ing their holdings in the radio and
entertainment enterprises of r. C. A.
from partial ownership of the subsidiary
companies to partial ownership of the
r. c. A. itself.
Dill Sees Worldwide Trust"
Senator Dill told the Senate that to
him 1t was obvious that Owen D. Young,
chairman of the board of the General
Electric and chairman of the executive
committee on r. c. A., planned world
wide radio trust through the formation
OF the new organization set-up. He
asked for immediate action by the De-
partment of Justice ito ascertain
whether or not under the law today
they have the right to form an organi-
IN WOr1A-urida
oily of radio development"
In the midst of an investigation Of
the radio patent pool of the r. G. A.,
General Electric, Westinghouse and
American Telephone and Telegraph Co.
at the behest of the Senate interstate
commerce committee, the Department
of Justice now must decide whether the
new move changes the complexion of
the situation and circumvents any pos
sible violation of the antitrust laws.
Oficial announcement that the depart
ment is deeply concerned about the
project whereby r. G. A. would acquire
the patents and other engineering and
manufacturing facilities and plants
from the two electrical companies Is
considered significant. General Electric
and Westinghouse would get control of
r. c. A. in payment for these facilities
through the acquisition of additional
shares Of the r. G. A. which are to be
issued.
Links Project With Bank.
Senator Dill linked the project with
the international bank movement, with
which, he said, Mr.. Young has been
prominently identified. Just "one more
step is needed" for the formation Of this
worldwide trust, he added.
Reports that r. C. A. plans to &C.
quire control of the Columbia GRAPHIC
phone Co. as an adjunct to its inter-
national sales and distributing agencies
also have cropped up. r. c. A., organ
lied in 1919 as a communications COM
pany only, has spread into every branch
of the radio field, both manufacturing
and entertainment, and into the motion
picture and vaudeville lines.
In yet another quarter there was
outspoken condemnation of the r. c. A.
project. Oswald F. Schultz, executive
secretary of the Radio Protective Asso-
citation, made up of independent set
and accessory manufacturers, and the
perennial foe of what he calls the ''ra-
dio octopus" released another TRADE.
(Copyrisht, 1890, by Consolidated Press)