Broadcasting (July - Dec 1937)

made more than $1,000 a year (the maximum allowed without filing an income tax return) and yet he had $25,000 in the bank. He is now 30 years old. It developed that in 1936 his total income was $20. So a subcommittee of the FCC finally concluded that he was a subterfuge or dummy applicant for another person in order to hinder and delay other applicants from operating at Johnson City. Applications for licenses made simultaneously with an application by another party is a favorite trick for the purpose of stalling ofE a competitor. The reference in said article to alleged "phony trafficking" in radio wave-lengths was a reference to the application of Richard M. Costo, in connection with which affiants were, on May 19, 1937, charged with improper practices. Although the first rule to show cause issued herein was not issued until May 19, 1937, Commissioner Payne, on or prior to May 15, 1937, had made statements to the said Pearson and Allen, or one of them, the substance whereof was pub lished in the "Washington MerryGo-Round" on May 19, 1937, as follows : Fireworks within the FCC have come to a head with a recommendation by clean-up minded Commissioners that two radio lawyers, Paul Segal and George S. Smith, be summoned before the Commission to show reason why they should not be barred from ijractice before the FCC. 10. Further in pursuance o f Commissioner Payne's efforts to bring discredit upon the affiants, and after the publication through the efforts of Commissioner Payne, of the name of the affiant Smith in connection with the filing of the Casto depositions. Commissioner Payne, on April 30, 1936, spoke over the facilities of Blue network of the NBC before the National Lawyers' Guild then meeting in the City of New York, and in the course of his speech said: In no field is there a greater need for broad and humane consideration of the problems that confront us than in that section of the law that devotes itself to radio. The enormous future, the prospects of wonderful discoveries and developments, make this new art, industry and science the most attractive of activities. With 27,000,000 receiving sets in existence, practically covering the homes of the country, the responsibility of the men solving its law problems is unique. How much or how little time there is given among the radio lawyers to weighing this responsibility I would not venture to guess, but I do know that able men of high character, and leaders of what is known as the FCC Bar Association, have come to me to say that certain men are ruining the profession. Then they add, rather iiitifuUy, that they can't do anything about it because no one has the courage to come forward. The other day an attorney was found to have changed documents in the docket room concerning a case before the Commission through the weakness of a young employe. It was Choate who said that there are two kinds of lawyers — those who know the law and those who know the judge. Now, they say in Washington that the two kinds are those who know the law and those who know the docket clerk. The reference in said speech to an attorney alleged to have been found to have changed documents in the docket room concerning a case before the Commissioner through the weakness of a young employe, was likewise reference to the alleged interpolation of depositions by affiant Smith. 11. Carl Arnold, an Assistant General Counsel of the FCC, was assigned to the task of advising with the Special Investigation Committee, of which Commissioner Payne was Chairman, in the investigation of the "Smith matter." During the course of this investigation Carl Arnold offered the affiant Segal an opportunity to appear before such Special Investigating Committee to report to it concerning facts into which the committee was investigating. 12. The affiant Segal entered into negotiations with said Carl Arnold concerning the time of his appearance and very respectfully suggested to said Arnold that a reasonable postponement of his appearance before the Committee be arranged pending the determination whether or not Commissioner Payne would continue as Chairman of said Committee in view of the relationships existing between Commissioner Payne and the affiant Segal. Notwithstanding that these negotiations were pending. Commissioner Payne, on May 19, 1937, represented to his colleague members of the FCC at a meeting thereof, that the affiant Segal had flatly refused to appear before the Investigation Committee so long as Commissioner Payne was a member thereof, and wide publicity was given to this assertion in the trade press and radio industry. 13. In the pursuance of his efforts to cause adverse publicity against the affiants Commissioner Payne and Franklin G. Wisner, an employe of the Commission bearing the title of Chief of the Press Section, without authority from the Commission, caused in excess of 1,400 copies of the disbarment citation against the affiants to be mimeographed as a "Press Release" and circulated among the clients of the affiants, among radio stations throughout the United States, telegraph companies, telephone companies, members of Congress, press associations, individual newspapers, lawyers practicing before the FCC and wherever possible. This was done with intention to injure the affiants and contrary to the general custom of giving no publicity to the issuance of orders to show cause in disbarment proceedings. 14. Thereafter and on June 19, 1937, the affiants filed their answers to the disbarment citation and as part of such answers requested the Commission upon consideration of the facts to dismiss the citation. 15. These answers of the affiants came on for consideration before the Commission on July 13, 1937, and upon consideration of the request, the Commission denied the same and fixed hearing upon the citation for Sept. 13, 1937. There was no authorization given by the Commission for widespread publicity on this. 16. Nevertheless, upon the en (Turn to page SO) Always, at least six established programs are waiting for you at WX YZ. Each complete with proved, enthusiastic audience! When you choose one, we build another. That's the policy that has made this station the leader in Detroit major sponsor preference. For years tool One of these programs will fit your client's need. What does he want to sell to Detroit and Michigan? Write — today! WXY2 = DETROIT = Basic SMm C BtuJi NitioM SlaUcn(,Mi(M(jm^cuil(rNi^^ King-TrenillB Broadcasting Carp. 300 Madison Theolre Building • • • Detroit Wm. G. Rambeau Co. Representative Home Office: Tribune Tower, Chicago Eastern Office: 550 Chanin Building, New York Western Office: Kuss Building, San Francisco Page 28 • November 1, 1937 BROADCASTING • Broadcast Advertising