Presto

July, 1930
P R E S T O-T I M E S
R A D I O
B. J. GRIGSBY FIGHTING
WHAT HE TERMS MONOPOLY
Declares Real Intention of Combination of Cer-
tain Companies Is Absolute Monopolistic
Control.
Grigsby-Grunow Co., of Chicago, largest indepen-
dent manufacturers of complete radio sets in the
world, filed suit on June 26 in the United States Dis-
trict Court in Kansas City, Mo., to recover triple
damages amounting to $30,000,000 from the Radio
Corp. of America, General Electric Co., Westing-
house Electric & Manufacturing Co., and others. Suit
also charges these companies with violating the Sher-
man Anti-Trust Law.
Among the charges filed by the Grigsby-Grunow
Co. are that the defendants illegally created a vast
pool of patents and thus illegally compelled the pay-
ment of royalties in the sum of almost $6,000,000 from
the Grigsby-Grunow Co.
B. J. Grigsby, chairman of the Board of Grigsby-
Grunow Co., in commenting on the suit filed by the
department of justice under the Sherman Act against
the Radio Corp., General Electric, Westinghouse,
American Telephone & Telegraph, and six other cor-
porations, said:
"The independent radio industry is extremely grati-
fied with the sweeping action taken by the depart-
ment of justice in attacking the validity not only of
the basis of the combination on which the Radio Corp.
of America was originally built but the new and even
more flagrant combination recently approved by its
stockholders.
"The allegation of the Radio Corp. that its organi-
zation had in effect governmental sanction is entirely
unsupported in fact; in any event it would be impos-
sible to approve such a combination if it were shown
to be illegal under the anti-trust statutes. The allega-
tion that this combination was essentially to promote
competition in the radio art because of conflicting
patents held by the different members of the group
was only a cloak and an excuse to create a monopoly
in an art the future of which the public have not
appreciated. A senator has recently stated that
'control of the radio industry in the future would
make its owners mightier than the government or any
absolute monarch.'
"The effect of the agreement between the asso-
ciated companies making up the Radio Corp. group
was to wipe out all competition in the radio field
between the members of that group. While it has
been stated that the bringing of this suit is a friendly
test case, it is obvious from the government's allega-
tions that there never has been an illegal combination
in industrial history so far reaching in its scope and
effect as that of the companies complained of. The
real intention of the combination is to employ patents
to control the entire electrical art. Nothing like it
has ever been attempted."
RCA President's Statement.
David Sarnoff, president of the Radio Corp. of
America made the following statement:
"The Radio Corp. of America has filed its answer
in the suit which the government has brought against
it and others, in Delaware, for alleged violation of
the Sherman Act. In that answer the Radio Corp.
denies that it has, during the more than ten years of
its existence, done anything of which the government
should complain but that, on the contrary, what was
done in obtaining rights under the patents of others
was necessary for and has resulted in the establish-
ment of modern radio which could not otherwise have
lawfully been established nor brought to its present
efficient condition. The development of radio was
freed, not restrained. Further, the Radio Corp. has
not attempted to monopolize these developments and
patent rights, but has granted many licenses to others,
with no price restrictions, thus enabling them to enter
into direct competition with Radio Corp. and its sub-
sidiaries in sales of tubes and broadcast receivers to
the public."
RADIO PRODUCTS WIDELY PURCHASED.
Eighty-one foreign countries now are buying Amer-
ican radio products in varying quantities. Canada still
is the principal foreign purchaser of American radio
products, whose exports have increased greatly dur-
ing the past year. An export questionnaire sent re-
cently to the RMA membership developed that
twenty-four companies maintain export departments,
while ninety-seven use combination export managers,
sales factors, and similar export sales agencies. Many
requests regarding American radio products are re-
ceived by the Foreign Trade Committee which re-
cently has been reorganized to become more efficient
in developing export trade for RMA members.
ZENITH PRODUCING FEWER MODELS.
The Zenith Radio Corp., Chicago, is maintaining a
good working capital position. The corporation is
one of the leading manufacturers in the industry and
holds licenses granted by the Radio Corp., General
Electric, Westinghouse and American Telephone and
Telegraph. Its principal product is the Zenith set
which is distributed through fifty-four wholesalers,
and approximately 6,000 dealers. The new line of
sets recently introduced by the company is more
limited in extent than formerly and permits a more
economical production as a result of the concentration
on fewer models. These new sets incorporate a new
type of radio furniture design.
A NEW GREBE RECEIVER.
A new Grebe receiver is making its appearance this
year to meet the demand for a moderate priced set,
according to an announcement from the factory in
Richmond Hill, N. Y., which also stipulates that the
famous SK4 line, with many refinements and develop-
ments, will be continued. It was stated on behalf of
the company that certain of these improvements are
so far-reaching in their importance that a detailed
explanation will not be available for a few days; the
only reference at this time is the statement that the
innovations are now the basis of patent applications.
ARGENTINA HAS 26 RADIO STATIONS.
Argentina now has two broadcasting stations rang-
ing in power from 500 to 30,000 watts which send out
regular programs. There are also twenty-four smaller
stations.
Have you sold a piano this week?
If not, why?
17
RADIO RECEIVING SETS
RADIO PARTS
RADIO—PHONOGRAPHS
N E W RADIO PLANT FOR DAYTON.
The Dayton Scientific Corp. has recently been in-
corporated in the State of Ohio. Offices and plant
will be located in Dayton. Manufacturing of radio
and electrical devices and also research in these lines
will be the functions of this company. The officers
are Oscar H. Hulberg, president; H. L. Burns, vice-
president and treasurer, and George Holland, secre-
tary. Of these Messrs. Burns and Hulberg are well
known to the radio trade. One of the first products
of this corporation will be a short-wave receiver suit-
able for the use of the non-technical trade and will
be sold through distributors. Thirty-three distribu-
tors in the United States and South America have
been appointed up to July 1. About seventy will be
appointed in this country, according to present plans.
RADIO NOTES
Zenith radio products are now being controlled in
Chicago and adjacent territory by the new Zenith
Distributing Corp., with headquarters at 2800 South
Parkway, Chicago. Walter O'Halloran has been ap-
pointed sales manager and Fred Johnston is in charge
of credits and finances.
B. J. Grigsby is now chairman and W. C. Grunow
is president of the Majestic Household Utilities Co.,
Chicago. J. T. Bristol is assistant secretary "and as-
sistant treasurer.
Eldridge R. Johnson of Philadelphia, founder of the
Victor Talking Machine Co., has given $250,000 to
the Benjamin Franklin Memorial and Franklin Insti-
tute. Museum.
An extension to Sept. 16 has been granted by the
protective committee for common stock of Kolster
Radio Corp. in the time within which common stock-
holders may make deposit with the National City
Bank of New York.
A branch of the Conron-Williams Corp., Philco
radio equipment distributors, has been opened at 328
Gale street, Aurora, 111., under the management of
Carl J. Scharfenberg, who was transferred there from
Streator, 111.
C. J. Hopkins, manager of the Crosley Radio Cor-
poration foreign department, states that his company's
exports for the first four months of 1930 have shown
a 30 per cent increase over the same period for last
year.
KEPT A SECRET.
"Daddy, when I marry, may I take the piano with
me?"
"Certainly.
But don't tell your fiance so."—
Esquella, Barcelona.
MUSIC TALK.
Pianist—"Hello, Max, how are your feeling?
Violinist—"Fine andante."
When the balance of an account has been shaved
to the bone and presented for collection, why try to
counterbalance it by asking that a part of the bone be
shaved off too?
An interesting tripod: The customer, the piano, the
sale.
New Edition for 1930 Now Ready
PRESTO BUYERS' GUIDE
Contains Full Lists with Concise Classification and Description of all
American Pianos, Players and Reproducing Pianos, with Sketches of
Manufacturers. Essential to All Salesmen. Price 50 cents, post paid.
NO PIANO DEALER OR PROSPECT CAN AFFORD TO BE WITHOUT IT.
PRESTO PUBLISHING CO.,
417 S. Dearborn St., CHICAGO
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