David Sarnoff, general manager of the Radio Corporation of America, addressed the Business School yesterday at 4 o'clock on "The Development of the Radio Art and Radio Industry Since 1920."

According to Sarnoff it was the War that put radio on its feet, because influential men began to invest huge sums in the Marconi Radio Company. This was made necessary because the German submarines cut all the transatlantic cables. From 1920 on, the radio has advanced by leaps and bounds. From a business point of view, this new invention was sure to be a success because it accomplished the apparently impossible. The radio has saved approximately $30,000,000 for America, said Sarnoff, for it has greatly cut down the expense of transcontinental communication.

Millions Paid for Patents

Although its development appears to have been simple, Sarnoff said he had to pay millions for patents. When his company, the Radio Corporation, had bought all the available patents, it required that all competitors who wished to use these patents should secure licenses. The introduction of licenses tended to stabilize the business.

The next step in radio development was the organization of broadcasting companies. The broadcasting stations connected by a net work of telephone lines, are supported by advertising. Dodge Brothers Automobile Company used a great deal of radio advertising to introduce its new car. Although it costs $60,000 an hour to advertise over the air, Sarnoff went on to prove that the cost is reasonable compared with the cost of magazine advertising.

Statistics Show Increase

Statistics may help to show the phenomenal increase in the business. In 1920 there were about 100,000 radio "lans", while in 1927 there were 25,000,000. Radio is so efficient that the phonograph companies use radio tubes in the process of making records. Moreover, radio receiving apparatus is now used to record cable messages.

The Radio Corporation is now working to develop television. When perfected, it will be of great help to business firms as they will be able to send photographs of bonds and checks across the country and across the ocean. Looking into the future, Mr. Sarnoff saw a time when mail would be sent by television. Another field of experiment is the talking moving picture. Sarnoff concluded his lecture by stressing the fact that the radio is essential to modern business.