Radio's Defence

The complaint filed by the Federal Trade Commission against the Radio Corporation of America, alleging a monopoly in the radio business (TIME, Feb. 4), was answered in a preliminary way by General James G. Harbord, President of the Radio Corporation. He declared that not only was his company ready to open its books for a complete review of its status and activities, but that it had already done so to representatives of the Federal Trade Commission.

General Harbord stated that the Radio Corporation was the result of the "request of responsible officers of the Navy Department in Washington that there be established a strong, purely American company to engage in the business of international wireless communication, and effectively compete with foreign-owned or controlled companies in that field." By mobilizing the electric patents of the leading American concerns, the Radio Corporation, he claimed, has ended selfish and obstructive rivalry, and greatly furthered the development of wireless communication. Radio Corporation acquired the American Marconi Co. from control of the British Marconi Co., and thus saved the General Electric patents and apparatus from being sold to foreign firms. In this way, General Harbord maintained, the public interest has been served by his company.

President H. B. Thayer, of the American Telephone & Telegraph Co., speaking of the contract with the Radio Corporation, declared of the latter enterprise: "The effect has not been to restrain trade, but to expand it."