Evening star., 1932-01-12
RADIO BOARD PLEA
REFUSED BY COURT
Declines to DeIve Further Into
Affairs of R. c. A. and
Mackay Company.

Apparently weary Of the quibbling
and tndecision that have attended the
ALLEGATION of continental short wave
channels for use in the creation of
radiotelegraph services competitive with
the established wire lines, the Court of
Appeals of the District of Columbia has
indicated that 1t will not grant the
Federal Radio Commissions request to
delve deeper into the corporate organ
izations Of r. c. A. Communications,
Inc. and the Mackay Radio & Tele-
graph Co.
During the presentation of oral argu-
ments Monday, members of this court,
which sits as the super radio commits
sion" interjected remarks rejecting the
view that they desired action rather
than words. The commission had asked
for the hearing, claiming 1t had dis
covered that both Mackay and r. c. A.
have violated provisions of the radio
act and that they should not be grant
ed the facilities for which they have
clamored for nearly four years.
Board Is Criticized.
Charles Evans Hughes, jr., and for
mer Judge j. Harry Covington, coun-
sci for Mackay, and Swagar Sherley,
former Congressman from Kentucky
@SP@S< S<SA4eAAS ASSflsy NLlbASlLCO UlIt COlu-
mission for attempting to Side-step
the instructions of the court command
ing the commission to grant the ap-
plications OF the companies for facili-
ties with which to establish rediotele-
graph networks to serve the public
like the Western Union and Postal.
Duke M. Patrick assistant general
counsel, defended the commission ac-
tton and argued for authority to per-
init the commission to reopen hearings
and report back to the court on the
new evidence obtained.
In November the commission notified
the court of its desires. The case
grew out of the award to the now de-
funct Universal Wireless Communica-
tions Co., Inc, of the lions share of
the then available continental channels
20 the virtual exclusion of both Mackay
and r. @. A. After many months of
wrangltng, however, the court a year
ago ruled that these latter companies
were entitled to facilities, particularly
In view of the fact that Universal had
failed, and instructed the commission
10 make new ALLEGATION and report
back for approval. 1t had been esti-
mated that each Of the communica-
tion channels, of which S8 we're avail
able, had value Of sl,o00,000.
Violation Charged.
The commission claimed that by a
recent pickup and delivery arrange
ment with Western Union r. C. A.
violated section IT of the radio act,
which prohibits the joint operation or
merging of wire and wireless COM
panies, but specifies that competition
exist. It pointed out that r. C. A. re-
lied almost entirely upon the fact that
1t was without feeders" for its trans
oceanic service in seeking the conti-
mental short-wave channels in the band
between 500 and 5000 kilocycles. Mr.
Sherley argued this was only make
shift" arrangement, and that the con-
tract expires next October
The commission charged also that
the status Of Mackay was questionable
under the same law provision. since
that company is a subsidiary OF Inter
national Telephone & Telegraph Cor
poration, which controls Postal, ALL
America Gables, and radio, telephone
and telegraph concessions in certain
foreign countries.
Ccopyright, 1922