During the formation of the radio industry in the 1920s, there were numerous factors that contributed to the industry's growth, including government intervention. Government intervention has been a ubiquitous factor in American society since the dawning of the twentieth century. As national industries began to merge together, the government feared that small businesses and consumers would suffer, and therefore enacted government intervention. Then in 1890, Congress initiated the Sherman Act, which permitted the government to intervene and break up monopolies. A fine of five thousand dollars or a year in prison were the most sever consequences for breaking this act. Over ten years later, Theodore Roosevelt became the first president to use the newfound law.
During the forming of the RCA, WW1 had just ended, and the navy wanted the radio under government control. The United States government soon forced British interests out of US radio and mandated ownership. Soon after, American Marconi was purchased by GE, AT&T and Westinghouse. Later, NBC was officially formed in September of 1926 by the RCA and its partners GE and Westinghouse. However, AT&T had already established a monopoly over radio transmissions, and thus was forced to sell its business to RCA. Clearly, the regulation and government intervention caused the shaping of the radio industry and controlled what stations would remain or perish. These governmental actions laid the groundwork for the roaring age of radio that would emerge in 50s, where rock and roll dominated the air waves.
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