When was it published?

June 6, 1930 in The Butler County Press

Story June 6, 1930

The Butler County Press

Q: What sub-type of article is it?

Historical Event, Deception Fraud

Q: What entities or persons were involved?

C. C. Colby, Earnest R. Reichmann, American Telephone And Telegraph Company, Radio Corporation Of America

Q: What themes does it cover?

Deception, Justice, Crime Punishment

Q: What keywords are associated?

Antitrust Suit, Radio Monopoly, Sound Equipment Overcharge, Senate Committee Testimony, Public Deception

Hamilton, Butler County, Ohio

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What is this article about?

Senate committee in Washington hears accusations against AT&T for overcharging film theatre owners $25M on sound equipment and forcing $50M in future service fees; RCA criticized for misleading public on government ties amid antitrust suit.

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RADIO TRUST Gouges Millions From Film Theatre Owners

Washington.--The American Telephone and Telegraph Company has charged motion picture theatre owners $25,000,000 more than they would have to pay independent manufacturers for the installation of sound equipment, C. C. Colby, of the Audio Research Foundation, told a senate committee.

The witness said the company forced these theatre owners to agree to pay an additional $50,000,000 for "service" during the next 10 years.

Earnest R. Reichmann, general counsel for the Radio Protective Association, and other independent radio interests, told the committee that the Radio Corporation of America and its affiliates have for years tried to create the impression that in some way or other they have received the sanction of the government.

"Now that this propaganda has been disproven by the government's anti-trust suit, the radio monopoly would create the impression that the suit is merely a technical test of some abstruse legal proposition that has no relation to the public interest. This is a further attempt to mislead the trade and the public."

What sub-type of article is it?

Historical Event Deception Fraud

What themes does it cover?

Deception Justice Crime Punishment

What keywords are associated?

Antitrust Suit Radio Monopoly Sound Equipment Overcharge Senate Committee Testimony Public Deception

What entities or persons were involved?

C. C. Colby Earnest R. Reichmann American Telephone And Telegraph Company Radio Corporation Of America

Where did it happen?

Washington

Story Details

Key Persons

C. C. Colby Earnest R. Reichmann American Telephone And Telegraph Company Radio Corporation Of America

Location

Washington

Story Details

C. C. Colby testified to a senate committee that AT&T charged motion picture theatre owners $25,000,000 more than independent prices for sound equipment and forced agreements for $50,000,000 in service over 10 years. Earnest R. Reichmann accused RCA and affiliates of creating false impressions of government sanction, now disproven by antitrust suit, and misleading the public on its significance.