Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-05-13
MACKAY CHARGES
R. CA. MONOPOLY
Accuses Communications
Board Of Sanctioning Con-
troll in Suit Filed Here.

| Charging that the Federal Com
munications Commission is sanctioning
monopolistic control by r. c. A. Com
municationS. Inc, of radiotelegraph
service to Europe. the Mackay Radio
e. Telegraph Co. Inc, today petitioned
the United States Court Of Appeals for
relief"
A long notice OF appeal filed on be-
half of the company by Donald Rich
berg and associates requested the court
to reverse the commissions recent de-
cision denying Mackay Radio a direct
radiotelegraph circuit between this
country and Norway
The fundamental issue" the court
was told. lis whether there shall be
a monopoly as against competition in
public service radiotelegraph CON-
munication."
| The commissions denial of . license
for the Norway service, the petition
asserted, leaves the Radio Corporation
Of Americas subsidiary in sole control
Of radiotelegraph communication with
Norway and continues and sanctions
a monopoly"
| Seen Contrary to Congress.
THE denial is contrary to the policy
OF the Congress directed against
monopolies and restraints of trade
and commerce" the petition stated
The denial flouts the specific prohi-
bition set forth by the Congress in
the antitrust laws and repeated and
emphasized in the communications
act of 1884"
Coincident with the filing of the
petition, Clarence H. Mackay, presi-
dent OF the company, issued through
Rlchberg a statement declaring ipten-
ton of Mackay Radio to carry this
case to the highest courts"
1T is utterly inexplicable to me how
the F. c. c. could take such action"
Mackay said. The Radio Corporation
OF America, which has the only direct
commercial radio circuit to Norway,
opposed the granting of Mackay
Radios application, while the Fedora
ton OF Labor and certain commercial
interests supported the application.
The commission itself was not
unanimous on the question, for two of
the commissioners supported the posi-
ton OF Mackay Radio, dissenting from
the decision.
Cites Sherman Act.
Congress in the Sherman act of
1890 condemned monopolies in re-
straint of trade in interstate and
1orelgn commerce. The Clayton act
fortified this prohibition. BY the radio
act OF 1927 and the communications
act OF 1884 Congress accentuated this
policy against monopoly and made it
expressly applicable to communica-
tons by radio
Yet in spite of the affirmative &C
ton by Congress in prohibiting monop-
ollee in international communication
in spite of the unwillingness of Con-
gress to take any steps to change this
sltuatlon-though the change was
recommended by the F. c. c.; in spite
OF the fact that consent decree
exists against the Radio Corp BE-.
cause of action by the Department OF
Justice, and in spite of the precedent
set by the old Federal Radio Commits
sion, recognizing the need for com
petition-to all intents and purposes
the Federal Communications Commits
sion in denying the Mackay Radio q
circuit to Oslo, Norway, is helping tc
establish a monopoly in internationa.
radio
of course Mackay Radio has just
begun to fight. We went into the
international radio field with ths
realization that We were bucking q
practical monopoly. We have estao.
lshed radio circuits to ships at sea
to the Orient and to South America
We have made an excellent start or
competitive service to Europe.
The last thing We expected was tina,
an agency of the United States Gov.
eminent, and particularly of this ad.
ministration, which has stood against
monopoly, would deny the right of fail
competition to an American COM
munication company
Listed as associate counsel in the
court action were Richberg's law firm
of which Ambassador to Russia Joseph
E. Davies is member; Raymond N
Beebe of the same firm, Howard l.
Kern, John H. Wharton and Adrien
F. Busick.
F. c. C. Findings Held Arbitrary.
The attorneys listed "a specific rea.
sons for appealing from the commits.
sion's order of April "a denying Mac.
kay Radios application. They charged
that the findings were arbitrary anc
capricious' on many grounds.
The petition pointed out that thu
telegraph division of the commission
first denied the application on June
Of last year, and that Mackay Radio
appealed to the full commission JUNE
Is for rehearing, which was granted
but which was limited to oral argu
ments.
The two members of the commission
. who dissented from the majority rul
ing of April "a are George Henri,
Payne, vice chairman of the telegraph
; division, and Paul A. Walker, chair
} man of the telephone division.
, Mackay Radios petition claims it i
"the only carrier which has made an.
! progress toward providing any rea
radiotelegraph competition against tn
Radio Corp. system in this field"
1.-THE history of appellant" the peti
5 ton stated, "is record Of strug
gle against the monopolistic positio,
of Radio Corp. of America in the fiels
| of foreign communication.
ION the one side was the Radi'
5 Corp. with its licensing paten
monopoly and its exclusive contrac
tual monopoly of radiotelegraph com
munications with foreign govern
ments, administrations and corpora
tions, and on the other side was ap
pellant, engaging in ship-to-shor
and domestic radiotelegraph, and at
tempting to secure footing in sucl
l foreign fields as were still left opel
and free from exclusive arrange
| % IS