Monday, Mar. 17, 1924
Radio Monopoly?
The new radio industry has developed overnight, and no laws for its control have been adequately formulated. Recently (TIME, Feb. 4), the Federal Trade Commission arraigned the Radio Corporation of America as a monopoly, along with its large corporate owners, but nothing much resulted from it.
Last week the American Telephone & Telegraph Co. declared its intention to bring suit to protect its patents ; the A. T. & T. operates the station WEAF, in Manhattan, and brought suit against station WHN, operated by Loew's State Theatre.
Grover A. Whalen, Commissioner of Plant and Structures in New York, was prompt to address a letter to the Federal Trade Commission in Washington, attacking the A. T. & T. Co. as a monopoly against the "common people" in the approved Hylan manner. His letter has opened up again the whole question as to the future status of the control of radio broadcasting, and whether it shall or not be allowed to drift into exclusive control of the A. T. & T. Co.
President Thayer of the A. T. & T., in announcing its intention of suing violators of its patents, took the atti tude that the radio broadcasting is at present in a chaotic state and needs to be stabilized through centralized con trol. The propriety of leaving it to Congress to determine the future status of radio entertainment of the public was admitted. The A. T. & T. felt, however, that it is in the transmission business and vitally concerned in the radio and its commercial future. It claimed that present broadcasters are interested in the industry only as a means of selling receiving sets to the public, that their activities are "bound to die out," and pointed out that if A. T. & T. does not prosecute infringe ments of its patents, these will lapse-- an outcome which the Company has no intention of witnessing. Accordingly, President Thayer declared: "The questoin presented by this suit is a very plain and narrow one. We have brought it because we believe that the defendants are violating our rights."
Others see the question differently. To Mr. Whalen it is : "Are the common people in danger?" to the Federal Trade Commission it is : "Has a violation of the Sherman anti-trust act been committed?" Congress, immersed in Teapot Dome and its byproducts, ignored the question.