Broadcasting (July - Dec 1937)

Commissioner Payne and its sources, is as follows: 1. On or about October 15, 1936, the Magazine Broadcasting and Broadcast Advertising, owned byBroadcasting Publications, Inc., a client of the affiants, published an editorial condemning certain conduct of Commissioner Payne. 2. During the period intervening between Oct. 15, 1936, and Dec. 7, 1936, Commissioner Payne made frequent threats of an imminent suit for libel against the magazine. He caused an investigation to be made as to the stock ownership of Broadcasting Publications Inc., and during the course of such investigation ascertained that the affiant Segal was the owner of one share in Broadcasting Publications Inc., and a member of its Board of Directors. Thereafter, Commissioner Payne made threats that he would "get" the affiant Segal. 3. Thereafter and on Dec. 7, 1936, Commissioner Payne as plaintiff instituted a suit against Broadcasting Publications Inc., its editor and its publisher, claiming damages to the extent of $100,000 on account of the publication of the editorial above described. On Dec. 31, 1936, the affiant Segal in association with other counsel, filed pleas in which, among other things, it was set up that the matters of criticism published in the editorial referred to were true. 4. After the filing of this plea Commissioner Payne undertook to cause the bringing of disbarment proceedings against the affiants and to give the affiants every possible unfavorable publicity. 5. On or about Feb. 10, 1937, because of the filing of certain depositions in the matter of Richard M. Casto then pending before the FCC, the Commission issued a letter of reprimand to the affiant Smith concerning the filing of the said depositions. On the issuance of this letter of reprimand, it was the understanding among the members of the Commission that the matter of the filing of the depositions referred to was a closed incident and that no publicity would be given to the letter of reprimand other than placing the letter in the minutes of the Commission. 6. At the time of issuing the reprimand, Commissioner Payne was away in the State of Florida. On his return to Washington and at the next meeting of the Commission, namely, March 10, 1937, he made the claim to his fellow Commissioners that he had additional information "concerning the Smith case" and upon such representations Commissioner Payne was appointed Chairman of a committee with power to investigate such alleged additional information. 7. ForthvTith upon the appointment of said committee and notwithstanding the informal understanding against the issuance of publicity and being actuated by malice and bias against the affiants Commissioner Payne sent for press representatives, including representatives of the United Press, and other agencies and published to them the fact that a reprimand had been issued to the affiant Smith and specifically named Smith and gave details concerning the filing of the depositions, together with quotations from the letter of reprimand. At the same time Commissioner Payne gave to Robert Heinl of Washington, D. C, publisher of Heinl Communications Letter (a service subscribed to by broadcasting stations), for publication by the said Heinl, a statement containing certain allegations the substance whereof was thereafter published by the said Heinl as follows : PAYXE INITIATES "LOBBY" PROBE AS GONNERY GETS HEARING. Under the sponsorship of George Henry Payne, the FCC this week initiated a new inquiry that may delve into some of the ehai-ges of "radio lobbying" as the House Rules Committee opened hearings on the Connery resolution calling for a general broadcasting investigation by Congress. The FCC probe is directed at a single Washington attorney, who is alleged to have disregarded FCC rules of procedure by inserting affidavit copies in a Commission docket file. The Commission had already acted on the case, transferring an aid in the docket section and reprimanding the lawyer. George S. Smith, of Washington, when Commissioner Payne returned from a period of illness. Commissioner Payne, who has frequently assailed what he terms "the Washington radio lobby" insisted that the FCC action was not severe enough and demanded that the inquiry be reopened. The FCC then designated him Chairman of a special investigating Committee. The other members are Commissioners Irvin Stewart and Thad Brown. "While the Committee was directed to investigate the Smith case, it is not unlikely that Commissioner Payne will find a way to extend his inquiry into general practices of radio attorneys before the Commission." 8. Thereafter, and prior to any action by the Communications Commission on the question whether or not affiants had been guilty of any improprieties. Commissioner Payne gave to Drew Pearson and Robert Allen, writers of the column "Washington Merry-Go-Round" (a fea ture syndicated ir a great many American newspapers ) , inaccurate statements calculated by Commissioner Payne to bring the affiants in disrepute and to facilitate his plan to bring about, if possible, the disbarment of affiants. 9. On May 17, 1937, there was published in the "Washington Merry-go-Round" the following article, which was based on statements made by Commissioner Payne to the said Pearson and Allen, or one of them, on or prior to May 13, 1937: Watch for some fireworks within the FCC within the near future. For a long time the FCC has been one of the most haphazard and politically-minded institutions in Washington, and now some of the practices below its surface are coming to the top. One of these is the custom certain radio lawyers have of coralling a bevy of Commission stenographers to entertain their visiting clients on dull Washington evenings. Another is the substitution of papers in the Commission's files, accompanied by certain radio lawyers through the cooperation of friendly FCC stenographers. Another is the setting up of dummy companies in order to secure or oppose the granting of wavelength licenses. A group of righteous FCC Commissioners, irate at what has been going on under their own noses, are now investigating the latter practice. They will soon expose the fact that a Washington law firm set up a corporation comiiosed of three stenographers in order to file petitions with the Commission regarding radio licenses at Cheyenne, Wyo., Portland and Aroostook, Me. The reference in said article to the alleged substitution of papers in the files of the FCC by "certain radio lawyers through the cooperation of friendly FCC stenographers," was an obvious reference to affiant Smith, concerning whom Commissioner Payne had issued the publicity described in paragraph 7 hereof, and said reference was made more obvious when, on May 19, 1937, both affiants were charged in these proceedings with such interpolation. The statement that a group of righteous FCC Commissioners will soon expose the fact that a Washington law firm set up a corporation composed of three stenographers in order to file petitions with the Commission regarding radio licenses at Cheyenne, Wyo., Portand Aroostook, Me., was likewise obviously a reference to affiants, who were thereafter, on May 19, 1937, charged with improper conduct with reference to applications for permits at Cheyenne, Wyo., Portland, Me., and Lewiston, Me. On May 21, 1937, there was published in the "Washington MerryGo-Round" the following article, which was based on statements made by Commissioner Payne to the said Pearson and Allen, or one. of them, on or prior to May 17, 1937. Illustrating the phony trafiicking in radio wave-lengths sometimes put across on the FCC is the case of Richard M. Casto, who applied for a radio license at Johnson City, Tenn. When Casto was examined by the FCC. the extraordinary fact developed that never in his life had he (Tiirti to page 28) As Educators Convened in Twin Cities -Minneapolis Journal Photos TO RAISE the level of educational programs, broadcast on time donated by the station, KSTP, St. Paul, conducted the first educational broadcasting conference in the Northwest, with more than 400 representatives of civic and educational groups and institutions in attendance. Principal speakers were Judith Waller, educational director of the NBC centi'al division, Chicago; Henry A. Bellows, former vice-president of CBS and member of the original Federal Radio Commission, now an executive of General Mills Inc.; Dr. Malcolm S. MacLean, director of the University of Minnesota's general college, and Mrs. B. F. Langworthy, junior past president of the National Congress of Parents and Teachers. Round-table discussions, addresses and production demonstrations featured the oneday meeting. Above, left to right, are Thomas D. Rishworth, KSTP educational director who was in charge of the conference; Miss Waller; Mrs. Langworthy and Dr. MacLean. Below, with the help of Val Bjornson, KSTP editorial commentator, left, and Mr. Bellows, center, Mrs. George B. Palmer, right, state radio chairman of the Minnesota Congress of Parents and Teachers, learns at first-hand the meaning of the words, "This program is transcribed." Mr. Bellows was originator of the phrase "electrical transcriptions." Page 26 • November 1, 1937 BROADCASTING • Broadcast Advertising