Broadcasting (July - Dec 1938)

McNinch Hints FCC Shakeup As President Reappoints Case Chairman Dispels Reports He Will Leave FCC; Plans to Draft Legislative Program REAPPOINTMENT OF former Gov. Norman S. Case of Rhode Island as a Republican member of the FCC was announced June 30 by President Roosevelt at his summer White House, Hyde Park. N. Y. The appointment, on a recess basis until the next session of Congress convenes in January, sets at rest — for the present in any event — reports of possible shifts on the FCC affecting its membership. Gov. Case, named to the original Commission in 1934, for a fouryear term, is expected to be nominated for a new term of seven years, dating back to July 1, 1938, by the President when the next Congress convenes. He is serving as chairman of the so-called "superpower" committee and has presided over the monthlong hearings which began June 6 dealing with proposed new rules and regulations preparatory to reallocating broadcasting facilities under the Havana Treaty. Coincident with the reappointment, it became increasinglv evident that FCC Chairman Frank R. McNinch has in mind important, if not sweeping changes in FCC personnel, organization and procedure. The chairman was to leave July 1 for a two-week rest and vacation. Since he assumed the FCC helm last fall, he has worked practically without respite. Ponders Legislation Constantly recurring reports that the Chairman would retire from his FCC post and perhaps return to the Federal Power Commission also have been dispelled. The chairman informed Broadcasting June 29 it was his intention to remain indefinitely with the FCC and that it was his purpose to draft legislative recommendations for the next session of Congress dealing with all phases of FCC activity and based upon inquiries into the broadcast structure now being conducted. Chairman McNinch served notice of impending changes in the FCC alignment without forewarning June 25 in an address before the Atlantic Division of the American Radio Relay League, meeting in Washington. He said it was his judgment that, in order that the Commission may function most effectively, "there are changes that should be made in procedure and the efficiency of the staff personnel as a whole increased." While the chairman asserted these matters would be attended to "in due time", it is known he has been giving much thought to the FCC's internal problems. Major criticism has been leveled against the law department of the Commission, and its examining and press departments also have been subjected to unfavorable comment. Dissension among the Commissioners, of course, has been responsible for most FCC troubles. Cha irman McNinch told his audience that many of these changes "can best be made during the approaching summer and early fall because readjustments can now be made with less interference with the Commission's business than at any other time of the year." The chairman prefaced his observations on renovation of the Commission with an attack upon those who have directed what he characterized as "a deliberate compaign of propaganda by innuendo and misrepresentation." He said he would be "neither frank nor realistic" if he did not admit that this campaign has had some effect upon the public mind. "However," he continued, "these attacks were unavailing in Washington where the facts could be known, for only 10 days ago the House of Representatives defeated a resolution promoted by those who wanted an investigation of the Commission. The overwhelming defeat of that measure was a vote of confidence by the House of Representatives of which I am justly proud. I regard that vote, however, as a vote of confidence which carried with it a solemn mandate that the Commission should proceed in the orderly, fair, impartial and COMMISSIONER CASE courageous administration of the Communications Act. I have set myself to that very task and it is going to be done and done to the satisfaction of every fair-minded person. "When President Roosevelt asked me to leave my work Payne Is Described as 'Trouble -Maker' In Statement Published by Rep. Cox BRANDING FCC Commissioner George H. Pavne a "trouble-maker" Rep. E. E. Cox (D-Ga.) in a statement published June 22 urged that the Commissioner be "separated" from the Commission in the best interests of that agency. The June 22 Congressional Record contained a statement by Rep. Cox in the nature of extension of remarks in connection with the consideration by the House of the Connery Resolution for a radio investigation, later defeated. In his remarks, Mr. Cox asserted Mr. Payne had "convicted himself as being: entirely irresponsible and wholly unfit for a place on the Commission." Together with his suggestion that Mr. Payne be "separated" from the Commission, Rep. Cox said it was his opinion, and he felt sure it was shared by other members of the Rules Committee, that FCC Chairman McNinch should be given "as free a hand as possible in the performance of their labors." With the chairman given associates who will cooperate with him, he said, "there can be no question but that the Commission will quickly overcome the injury done the Commission in the public mind by Mr. Payne * * *." Prefacing his suggestion of separation, Rep. Cox declared that Commissioner Payne, in his appearance before the Rules Committee, demonstrated he had "little, if any" conception of his duties, obligations and oath of office as a member of the FCC. "He gave the impression of being a trouble-maker and nothing but a trouble-maker, and as having no concern in protecting the reputation of the Commission or in the proper discharge of its functions," he said. In a statement issued from his office June 23, Commissioner Payne charged Rep. Cox' attack as "so obvious an attempt to befog the issue of radio reform that it deserves little notice". His typewritten statement continued : "The question of veracity I am perfectly willing to leave to those who know Cox and those who know me. He has made an invidious attempt to shake an official in his strivings to protect the public. He has built his whole case upon misinterpreting what I said. He, Cox, is trying to make out a case for monopoly and abuse in radio. I am sure he will fail." Recalls Testimony The full text of Rep. Cox's statement as published in the June 22 Conaressional Record follows: "Mr. Speaker, when the l'ule to make in order consideration of HR-62, a resolution to investigate the Federal Communications Commission, was before the House the time allotted for debate was too brief to permit of any extended discussion, for which reason the subject was not fully developed. There wrere observations that I desired to make about members of the Commission, particularly Chairman McNinch and Commissioner Payne, which I feel should be brought to the attention of the public. "WThen this resolution to authorize the setting up of a special investigating committee was before the Rules Committee for hearing both Chairman McNinch and Commissioner Payne appeared before the Committee and both testified. The members of the Committee who heard Chairman McNinch, I am sure, were virtually unanimous in their opinion that his statement before the Committee was candid, open, and most informative, and (Continued on Page 32) chairman of the Federal Power Commission for a season and become chairman of the Federal Communications Commission to assist in the work here, I dedicated myself completely to what appeared to me to be a great public service to which I had been called. I am going to carry through this job without fear or favor and with the public interest as my guiding star." Case Reappointment Gov. Case's reappointment was not unexpected, despite rumors prior to its announcement. He was appointed to the original Commission in July, 1934, by President Roosevelt, an old-time personal friend and colleague. Gov. Case was chief executive of Rhode Island when Mr. Roosevelt was Governor of New York, and they were well acquainted in gubernatorial councils. He was chairman of the executive committee of the Governor's Conference of the United States, of which Mr. Roosevelt was a member. He served originally as vicechairman of the telephone division of the FCC but was named vicechairman of the broadcast division in 1935, serving in that capacity until Chairman McNinch abolished the division form of operation late last year. as Press Falsity Measure Is Abandoned by Minton LEGISLATIVE efforts of Senator Minton (D-Ind.) to punish newspapers deliberately publishing false information will be dropped, the Senator declared June 21. Discussing the bill he introduced at the last session making it a penal offense to publish false statements, Senator Minton said he had introduced the bill only to get the "reaction of newspapers" and that it had "produced the desired results". He said the American Newspaper Publishers Association wanted "radio propaganda curbed." He added ne desired to see "how the newspapers would like the medicine they wanted to give to the radio. I see they don't like it verv well. When the newspapers raised a big howl over my bill they said in effect: 'We print lies and we want to go right on printing lies.' That was just the point I wanted to get straight. If it were not for the radio we would not know what is going on in this country." Television Stock Offer AMERICAN TELEVISION Corp., capitalized at one million shares of $1 each, has acquired the capital stock of CSI Development Corp., owner of Communicating Systems, manufacturing television receivers, and is offering 99,500 shares to the public through J. A. Sisto & Co., beginning June 30. ATC plans a demonstration of television sets in Boston department stores by midJuly, having recently given demonstrations of NBC-RCA transmission pickups in New York. The firm is also reported to be conferring with Don Lee Network executives regarding a similar tie-up in the West. KSRO. Santa Rosa. Cal.. authorized as a new 250-watt daytime station last year, on June 28 was authorized by the FCC to go to full time, using 100 watts night and 250 dav. BROADCASTING • Broadcast Advertising July 1, 1938 • Page 13