Evening star., 1940-08-07
Full Investigation
OF Radio Is Asked
AT Senate Hearing
White Seeks to End Probe
On Thod Brown; Witness
Rebels at Testifyine
BY WILLIAM ]. WHEATLEY.

Complete investigation of the
radio industry, and particularly
r. C. A., by committee of the Sem
ate was suggested to the Senate
Committee on Interstate Commerce
today by Senator White of Maine.
He sought to end the present in
quiry which is in connection with
the confirmation of Thad H. Brown
to succeed himself as F.. C. c. COM
missioner Both Senator White and
Chairman Wheeler said they thought
the present inquiry had gone far
atield of its original purpose.
Robert D. O'Callaghan, former
R. c. A. counsel in the antitrust
suit of 1882, rebelled at testifying,
first standing on his lawyer-client
confidential status, but when r. c. A.
waived this right, he stood on his
self-incrimination rights, but was
ordered by the chairman to testify.
David Sarnoff, president, and Col.
Morton Davis, counsel for r. C. A.,
were on the stand during the morn
ing. Mr.. Sarnof testified that Mr..
O'Callaghan told him that E. o.
Keller, whose affidavit in the al
legged r. C. A. case, presented yes
terday, which is the basis for the
inquiry, had pressed him several
times for money.
Mr.. Keller was described as a
contact man" in Washington for
r. c. A.
"A Very Unusual Procedure
Mr.. Sarnoff resumed the stand
when the committee resumed its ses-
sions today. Senator Tobey asked
Mr.. Sarnoff if he didn't consider it
unethical to seek a continuance of
the r. c. A. antitrust suit without
going to court. The witness said he
saw nothing wrong in asking help
from former Senator George H.
Moses, who was not lawyer.
Senator Wheeler wanted to know
what he expected Mr.. Moses to do.
Mr.. Sarnoff said he didn't know.
Senator Wheeler said it was "a
very unusual procedure, to say the
least" Senator Wheeler added that
the lawyer who urged the pro-
cedure gave him poor advice, be-
cause it was on case pending in
United States court.
He said that Mr. Keller suggested
Roger Whitford, local attorney, be
called into the case, to see Mr..
Moses.
Mr.. Sarnoff denied that the con-
ference was for the purpose of using
influence on the Government side.
He said it was to bring r. C. A.,
General Electric and Westinghouse,
the three parties involved in the
same side of the suit, together.
r. c. A. Might Have Been Destroyed.
Mr.. Sarnoff said the case involved
each of the organizations going over
contracts to see how plan could
be worked out to preserve R. c. A.
when the three companies were di-
vorced under the antitrust decree of
1892.
He said that if the trial were
forced in the face of negotiations,
the r. c. A. might have been de-
stroyed. The objective was to get
time to bring about the result the
Government was seeking in the
suit. Even after r. C. A. received
its continuance, the Government
itself obtained continuance. Other
parties in the case we're presenting
their sides to Senators, he testi-
fed.
Mr.. Sarnoff said it was in the
Governments interest to have a
continuance. He went to Mr. Moses,
he said, to acquaint him with the
Governments interest in the case
because of the national defense
problems involved
Result of the conference with
Mr.. Moses was the latter's advise
to employ the law firm of former
Senator Hastings of Delaware, to
seek a continuance of the suit.
Denies Lobby.
Going into the matter of a radio
lobby in the Senate and House, Mr..
Sarnoff said that so far as R. C. A.
is concerned, there is no lobby.
Senator Tobey read a series of
statements of Representatives in the
House and F. C. C. Commissioner
George Henry Payne, charging that
radio broadcasting was being con-
trolled by powerful lobby.
Mr.. Sarnoff said he was not al
ways in agreement with Commits
sioner Payne.
The name of Thomas Corcoran,
presidential adviser, was injected
into the hearing by Senator Tobey,
who wanted to know if Mr.. Corcoran
consulted Mr.. Sarnoff on radio mat
ters. The latter said that he had
talked with Mr. Corcoran but denied
that he was consulted by him about
the appointment of James Lawrence
Fly as chairman of the F. C. C.
Mr.. Sarnoff expressed regret that
the name of President Roosevelt
was brought into this political dis
cussion." He branded as libel on
himself and President Roosevelt the
allegation in the Keller affidavit put
into the record yesterday that Mr.
Sarnof had told Mr. Keller he and
the President were close friends.
Judge Morton Davis, general
counsel for r. C. A., took the stand
and was questioned concerning suits
against r. C. A. which were settled.
He said that he was now of the
opinion that such cases should not
be settled but fought out in the
courts.