Radio Monopoly?

A recent investigation of the radio industry by the Federal Trade Commission has resulted in the issuance of a complaint by that body, that a monopoly in radio apparatus has been formed, to perpetuate control of the industry beyond the life of existing patents. The companies named as composing the monopoly are the Radio Corporation of America, General Electric Company, American Telephone & Telegraph Company, Western Electric Company, Inc., Westinghouse Electric and Manufacturing Company, International Radio Telegraph Company, United Fruit Company, Wireless Specialty Apparatus Company.

The action is mainly directed against the Radio Corporation of America, in whose hands control of existing patents is largely centered. As an instance of this company's monopoly in the sale of essential radio apparatus, it is stated that in the first nine months of 1923 it sold 5,509,487 vacuum tubes, as against 94,100 tubes sold by the only o her concern having the right to make and sell them. The Radio Corporation is also declared to enjoy a practical monopoly in transatlantic service, through ownership of high-powered stations and exclusive agreements with foreign nations or foreign monopolies.

The Radio Corporation was organized in 1919 under the supervision of the General Electric, which supplied capital and enabled the new company to acquire the American Marconi Company. On Dec. 31, 1922, the holdings of the various respondents in Radio Corporation capital stock, which totaled $33,440,033.56, were as follows: General Electric, 620,800 preferred and 1,876,000 common; Westinghouse Electric, 1,000,000 preferred and 1,000,000 common; A. T. & T., 400,000 preferred, no common; and United Fruit, 200,000 preferred and 160,000 common.

The Radio Corporation, it is charged, has made exclusive contracts with these corporate stockholders. It must buy about 60% of all radio devices from General Electric and 40% from Westinghouse. Traffic relations were set up with American Telephone. In 1921 an exchange of traffic facilities was provided for with the United Fruit Co. and its subsidiary, the Wireless Specialty Apparatus Co.

The companies named in the Trade Commission's complaint have 30 days to answer the charge of violating the antimonopoly law.