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February 16, 192^
RADIO DIGEST — Illustrated
FEDERAL COMPLAINT AGAINST R.C.A.
Full Report of Trade Commission Gives Facts Vital to Industry
Tells How R.C.A. Started
How Corporations Charged with
Illegal Monopolistic Efforts
(Believing that Radiophans in general are interested in 'the recent complaint against the Radio Corporation of America filed by the Federal Trade Commission, Radio Digest has undertaken the complete reprinting of the material contained in the report of the commission. While the complaint is in true legal form and is not easily read by Radiophans other than lawyers, the direct reprint is undertaken because it is believed no other publication will give the information in so complete a form. — Editor's Note.)
"United States of America — Before Federal Trade Commission; in the matter of: General Electric Company, American Telephone & Telegraph Company: Western Electric Company, Inc., Westlnghouse Electric & Manufacturing Company, The International Eadlo Telegraph Company, United Fruit Company, Wireless Specialty Apparatus Company, and Badio Corporation of America.
Docket No. 1115 Complaint
ACTING in the public interest pursuant to the provisions of an Act of Congress, approved September 26, 1814, entitled, "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," the Federal Trade Commission charges that the various persons, corporate and Individual, mentioned in the caption hereof and more particularly hereinafter described and hereinafter referred to as respondents, have been and are using unfair methods of competition in commerce in violation of the provisions of Section 5 of said Act, and states Its charges in that respect as follows:
General Electric Company PABAGRAPH ONE: The General Electric Company la (and was at all times hereinafter named) a corporation organized and doing business under the laws of the State of New York. Its principal place of business Is in Schenectady, New York. It is engaged in the manufacture and sale in interstate and foreign commerce of apparatus intended for the generation and application of electric current to various purposes, including communication by Badio or wireless waves. Prior to October, 1919, and subsequently it has employed a large staff of electrical experts in research and experiment with a view to developing new inventions, discoveries and devices applicable to any of the various uses of electricity, includng apparatus for Badio communication, both transmitting and receiving. It was the owner of many patents and licenses or rights under patents for the manufacture, use and sale
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of the articles above described and certain applications for patents covering Important Inventions for us* In vacuum tubes, used In Badio communications. The General Electric Company is the largest manufacturer of electrical apparatus, including devices used in Badio communication. In the United States.
American Telephone & Telegraph Co. PABAGBAPH TWO: The American Tolophone & Telegraph Company Is a corporation organized and doing business under the laws of the State of New York. It has its principal place of business in New York City, State of New York. It is engaged principally In the transmission of telephone messages by wire from point to point In the United States. The Western Electrio Company la a corporation organized and doing business under the laws or the State of New York. It has its principal office and place of business in Cleveland, Ohio. It is engaged principally In the manufacture and sals in Interstate commerce and with foreign countries of apparatus and devices used In wire telephony and in ether applications of electricity. A large majority of the stock of the Western Electric Company was and is owned by the American Telephone & Telegraph Company. Prior to October, 1919, and subsequently, the said American Telephone & Telegraph Company and the Western Electric Company maintained a large staff of experts In research and experiment with a view to developing new Inventions, discoveries and devices applicable to any of the various uses of electricity. Including Badio communication. Each of them was the owner of many patents and licenses or rights under patents, relating to such inventions and devices, and particularly of Important patents relating to vacuum tubes as used in Badio communication. The Western Electric Company manufactured and sold in Interstate commerce various articles under the patents of the American Telephone & Telegraph Company and Its own patents, including the aforesaid vacuum tube patents. The Western Electric Company is one of the largest manufacturers of electrical apparatus, including apparatus used in Badio communications In the United States.
Weatingnouae Electric ft Mfg. Co.
PABAGBAPH TIIBEE: Tho Weatlnghouse Electric & Manufacturing Company Is a corporation organized and doing business under the laws of the State of Pennsylvania. It has Its principal place of business In Pittsburgh, State of Pennsylvania. It Is engaged principally in the business of the manufacture and sale In Interstate commerce and with foreign countries, of electrical apparatus for the generation of electric current and its application to various purposes. Prior to October, 1919, and at all times hereinafter named. It maintained a large staff of experts in research and experiment with a view to developing new inventions, discoveries and devices applicable to any of the various uses of electricity. Including Badio communication. It Is the owner of many patents and licenses and rights under patents relating to such inventions and devices, and particularly certain important patents covering Inventions and devices known as the Armstrong "regenerator" and the Fessenden heterodyne patents, of primary Importance In Badio communication. The Westlnghouse Electric & Manufacturing Company U the second largest manufacturer of electrical apparatus, including apparatus used in Badio communication. In the United States.
International Radio Telegraph Co.
PABAGBAPH FOUB: The International Badio Telegraph Company is a corporation organized and doing business under the laws of the State of Delaware. It is the successor of the International Badio Telegraph Company, having been organized under an agreement of May 22, 1920. between the latter and the Westinghouse Electrio & Manufacturing Company. The earlier company had been engaged in the business of transmitting and receiving wireless messages in a limited field prior to the war, and of manufacturing under patents and selling Badio apparatus in interstate commerce. The new company. The International Badio Telegraph Company, continued the business of Badio communication.
United Fruit Company PABAGRAPH FIVE: The United Fruit Compa l» a corporation organized and doing business undtr the laws) of the State of New Jersey. It has Its prit ipal place of business In New York City. It Is engat I in the growing of fruit and the transportation thereof from Central and South America to the United t-'tatet and the sale thereof, and In connection thti v. lth operates a fleet of steamships. Prior to October, I'll 9, and subsequently, it had In connection with lis ness, through its subsidiary, the Tropical Badio Telegraph Company, owned and operat«d stations for th» sending and receiving of wireless communications between the United States and various points In the territory where it produced and shipped Its products and was equipped with the necessary apparatus for such purposes. These stations were also open to the public for the receiving and transmission of wireless messages. Prior to October, 1919, the United Company and the Wireless Specialty Apparatus pany, another of Its subsidiaries, had acquired and were the owners of various patents and licenses and rights under patents, for the use, manufacture and sale of various important device* and apparatus In Badio communication, especially broad patents corerlng the use of crystal receiving apparatus. It and its said subsidiary, the Wireless Specialty Apparatus Company, employed staffs of experts In research and experiment with a view to developing new lnvu discoveries and devices applicable especially to Jtadlo communication.
Badio Corporation of America
PABAGBAPH SIX: The Badio Corporation of America Is a corporation organized and doing business under the laws of tho State of Delaware, having been Incorporated on or about October 17, 1919, its principal place of business is in New York City. Its capitalization was 5,000,000 shares preferred stock, par value $5.00, and 5,000,000 shares of common stock, no par value. It is engaged In conducting a public Badio communication service between points in different (Continued on page 8)
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