Broadcasting (Oct 1931-Dec 1932)

Construction Permits for High Power Stations Set Forth Rigid Restrictions Appeals Now in Order by Aggrieved Applicants; Licenses of WLS, WENR and WGN Restored CONSTRUCTION permits based on the terms of the decisions reached in the high power case were sent Nov. 17 to the 16 stations which were granted power increases to 50 kw. and 25 kw. by the Federal Radio Commission. Appeals may be taken by aggrieved applicants within 20 days from that date. Thought is being given to a consolidated appeal by practically all of the aggrieved stations, attacking the validity of General Order 42, as amended. Supplementing its statement of facts and grounds for decision, made public Nov. 13, the Commission in the permits imposed rigid conditions on the successful applicants. The awards of 50 kw. grants to nine stations and 25 kw. permits to seven stations are enumerated together with specific orders of denial covering the rejected applications. Simultaneously, the Commission authorized the issuance of regular licenses to supersede the temporary licenses previously issued to WLS, WENR and WGN, Chicago, because other stations had attached their assignments and were directly involved in the high power case. The applications of WTMJ, Milwaukee, which attacked WLS and WENR, and of WCFL, Chicago, which sought the facilities of WGN — were denied outright by the Commission. The terms and conditions placed on the successful applicants are as follows : "1. The period for which this construction permit shall be valid and remain in force is six months, upon the expiration of which time all construction herein authorized shall be completed. "2. The construction period shall commence thirty (30) days from the date hereof, but such provision shall not prevent the commencement of construction herein authorized anytime before said date and after the issuance of this permit. "3. All permittees shall submit to the Commission within 30 days after commencement of the construction period, data for approval showinar the proposed site of the transmitter. "4. All permittees shall submit for approval within 30 days after commencement of the period a description of the equipment to be installed. "5. Within 60 days from the commencement of the construction period satisfactory evidence shall be furnished the Commission that order has been placed for the transmitter, equipment, or parts, whatever the case may be, and the date on which delivery is to be made. "6. Within four months from the commencement of the construction period, verified statement shall be filed showing1 the progress of the installation to date. "And it is further ordered that the Secretary be, and he is hereby, authorized and instructed to insert in each construction permit to be issued in accordance with the decision of the Commission, in the above-entitled matters, the following express condition which is hereby made a part of the authorization to be so issued: "The failure to comply with any of the above conditions with respect to reports on progress of construction or the submission of data with respect thereto within the time limited, or such extension thereof as the Commission may grant upon proper showing, shall result in an automatic forfeiture of this permit." Appeals Mark Set As Courts Differ Legal Snarl Created as WCHI Obtains Stay in Chicago CLIMAXED by an apparent conflict between Federal appellate courts in Washington and Chicago, appeals from orders of the Federal Radio Commission during the last two weeks established a record in numbers if not in importance. WCHI, Chicago, of the People's Pulpit Association, ordered deleted by the Commission along with WJAZ, Chicago, to make way on the 1490 kc. channel for WCKY, Covington, Ky., obtained a temporary injunction from the Circuit Court of Appeals in Chicago after the District of Columbia Court of Appeals had denied it a stay order. Although doubt exists as to the jurisdiction of the Chicago Court, this legal snarl remains to be ironed out. As things now stand, the Covington station holds a license for full-time operation on 1490 kc, while WCHI is authorized to broadcast on the same channel under court injunction. The view is held in some legal quarters that the Chicago court has utterly no authority in the case, and that it must vacate its order. The Commission has not been officially served with the papers, and all concerned seem at this writing to be at a loss as to how the case actually stands. All told, four stations were doomed to go off the air Nov. 21, but two of them succeeded in obtaining court stays. In addition to WCHI, Station WMBA. Newport, R. I., obtained an eleventh hour stay order from the Court of Appeals of the District of Columbia after it had been ordered off the air by the Commission for violation of regulations. WJAZ, of the Zenith Radio Corporation, and WIBR, Steubenville. O., however, did not seek nor obtain court relief, and were stricken from the lists. The Rev. Robert P. Shuler, owner of KGEF, Los Angeles, plans to appeal from the Commission's decision deleting that station for failure to serve the public interest. A stay order probably will be sought to restrain the Commission from making its decision operative during the pendency of Fame Came Easily THE ROAD to fame for "Ginger Boys" of KOIL, Council Bluffs, was an easy one. Hardly out of their 'teens, the boys wandered into the studio a few weeks ago and apologetically asked for an audition. According to Helen Berry, musical director, they uncorked a brand of "hot" vocal trio arrangement, the like of whcih seldom has been heard on the air, and immediately thev began attracting fan mail and telephone calls. They are Bob Farley, Harry Geil and Lester Wiederman. the litigation, although the station has been off the air since Nov. 13. Raising the issue of free speech on the air, the Shuler case has stirred up considerable controversy. Counsel for the station have been in Washington perfecting plans for an appeal. Mr. Shuler himself, through Los Angeles newspapers, has bitterly criticized the Commission, as well as the Court of Appeals, which he threatened to have "investigated." Some expect to see the case eventually reach the Supreme Court. The Court of Appeals, ruling on the case of the Rev. John W. Sproul, former operator of WMBJ, Pittsburgh, a 100 watt station on 1500 kc, sustained the Commission's decision deleting the station for failure to serve public interest. (Court of Appeals No. 5349). While counsel for WMBJ raised constitutional questions concerning commission procedure, the court decided the case on the facts. The court brought out in the opinion, signed by Chief Justice George E. Martin, that Mr. Sproul since 1929 had been "hopelessly insolvent" and that this resulted in the loss of the transmitter in April, 1930. The court added: "It was not an abuse of discretion in this case for the Commission, acting under its General Order No. 93, to consider and pass upon the application without hearing oral argument thereon. Therefore, notwithstanding the various exceptions taken by counsel below, it is manifest that appellant was not entitled to a renewal license, and it would be idle for this court to reverse the ruling to that effect." The same court denied the motion of Norman Baker, who formerly operated KTNT, Muscatine, la., for an extension of time in which to pay costs for printing of the record in his appeal. Payment must be made early in December, and if this obligation is not met a motion to dismiss the appeal will be in order. KTNT was deleted by the Commission on the ground that the station was used as a "private mouthpiece" by Baker rather than in the public interest. The Commission charged also that indecent and obscene laneruae-e was used and that some matter broadcast endangered public health. Motions by the Commission to set aside stay orders granted to WNJ, Newark, and WKBO, Jersey City, ordered deleted by the Commission so their time on 1450 kc. would be assigned to WHOM, Jersey City, were denied by the court. Authority of I. C. C. Challenged hy NBC Reply to Sta-Shine Says Act Does Not Govern Radio PREPARATORY to presenting oral arguments at a formal hearing next month, the National Broadcasting Company on Nov. 20 filed with the Interstate Commerce Commission its reply to the complaint of the Sta-Shine Products Co., New York City, denying categorically charges of violation of the Interstate Commerce Act and challenging the Commission's jurisdiction to regulate broadcast advertising rates in any manner. (Docket No. 24738). The complaint, filed Oct. 1, was also lodged against WGBB, Freeport, N. Y. Raising for the first time the question of the Commission's authority to rgeulate broadcast advertising rates and to evaluate broadcasting properties as the basis for such rates, the case will be the subject of a hearing in New York City on Dec. 14. Admitting that it has not published tariffs and filed them with the Commission, as the plaintiff contended it was required to do by law, NBC holds that its failure to do so was not a violation of the Interstate Commerce Act. The law, it argued, does not apply to broadcasting, and the NBC is not a common carrier and is not engaged in the transmission of communications by wire or wireless or in any other business subject to the terms of the act. The reply was signed by Frederick H. Wood, of the firm of Cravath, De Gersdorff, Swaine & Wood, NBC counsel. The complainant charged that the NBC and the Freeport station had levied exorbitant rates and that their practices were discriminatory. It alleged that NBC had declined to give the company the use of its facilities. Ernie Adamson, of New York, j counsel for the Sta-Shine Com I pany, conferred with Commissioner Joseph B. Eastman on Nov. I 20, in connection with the case. : Examiner Cheseldine has been des1 ignated by the Commission to take ; testimony at the hearing. KGMB and Government Cooperate in Honolulu KGMB, Honolulu, Hawaii, and the United States military and naval reservation have worked out a cooperative system of exchangine broadcast programs. The Federal J government installed a wired broad I cast system and studio on the res j ervation, which is 30 miles from f Honolulu, to sei-ve its various de j partments. The Honolulu Broadcasting Com I pany leased a phantom circuit 1 from the telephone company to con1 nect its studio with the reserva1 tion. Consequently from 10 a. m.I until midnight the two systems are f in joint operation. The reserva1 tion provides KGMB with much entertainment such as band concerts, golf tournaments and boxing matches. Page 14 BROADCASTING • December 1, 1931