heretofore sold and delivered to dealers and individuals were sold, and hence are "now or at any time" impressed with patent restrictions as to their use. It was also pointed out that the sets made by the Radio Corporation and embracing patented improvements owned and controlled by others, could not, under the terms of existing patent licenses, be produced and sold to the public or to dealers without impressing upon the purchasers patent restrictions falling within the limitations to which the Radio Corporation is itself subjected.

Under the circumstances the Radio Corporation asked in its memorandum that the committee offer an amendment to the section providing for the insertion of the one word "unlawfully" in the final clause, so that it would prevent the impressing and subjecting of such restrictions and limitations alone as would unlawfully "prohibit or restrict the parties by whom or the purposes for which said tubes and apparatus may be used."

In other words, we asked the privilege of being allowed to im press upon patented radio apparatus at least such restrictions and limitations as to use, etc., as under existing laws of the United States are permissible as to other patented apparatus.

The members of the committee with whom we discussed the matter almost without exception professed to be favorable or at least sympathetic to our request.

Notwithstanding our request was merely for a committee amendment inserting one word, as above described, a majority of the members evidently recognizing the injustice and wrong that would be worked by the provisions of section 4 upon not only the Radio Corporation but also upon dealers, set owners, the radio industry and as well the public at large, took action resulting in passage by the House of the White radio bill (H. R. 9971), with the entire section missing. They thus relied upon existing laws, which the Radio Corporation neither desires nor will attempt to violate, to guard against price control and patent abuses in the field of radio, as well as in other fields.

Numerous charges have been either directly or by innuendo aimed at the Radio Corporation in these hearings, to which I have not attempted to specifically reply. However, I think if the details of the Radio Corporation's activities, practice, and policies, as set forth in this statement, are carefully considered and borne in mind, the members of the committee will find all such charges adequately answered and should accordingly exonerate the company from them. One remark, however, Mr. Burkan should not go unchallenged. I refer to his statement that it costs only 23 cents to produce a radio vacuum tube. Some tubes, no doubt, can be produced at such a figure, but not a tube embracing the workmanship, material, research, and development outlay, patent investments, inspection, and possibly other like overhead items which necessarily enter into the production cost of the Radio Corporation tube. As quantity production of this tube has ben developed and manufacturing facilities have been systematized and perfected, the company has from time to time and as frequently as possibe reduced the price of its standard tubes until they are now selling at $2.25 retail and about $1.10 93693--26- -30

wholesale. These reductions have in all instances been wholly voluntary, and, contrary to usual experience, in the face of a steadily growing demand. They have also been as substantial as possible within the bounds of ordinary business prudence.

The committee will be interested, I believe, in a few of the company's tube statistics for the year 1925, as folows:

Total produced.

Total used in new RCA sets.

Total sold to manufacturers for use in competiting sets_.
Total sold for replacements and use in miscellaneous sets----

16, 000, 000

1, 620, 000

1, 360, 000

13, 000, 000

As will be noted, the company sold in 1925 to manufacturers of competing radio sets almost as many tubes as it used to equip its own sets. It also sells its tubes to ships for use on board vessels in direct competition with it own ship supply and service operations and its marine traffic.

It may also be added that every tube sold by the Radio Corporation bears that company's guaranty as to its workmanship, quality of material, and serviceability, with provision for replacements if not perfect. The same can not be said for most tubes now on the market in competition with ours.

Senator METCALF. If there is no one else who desires to be heard, the committees will adjourn to meet at the call of the chair.

(Thereupon, at 11.45 o'clock a. m., the committees adjourned to meet at the call of the chair.)