Broadcasting (Jan - June 1941)

ator Smith's first thrust with the observation that the networks have contended the Commission has no power to require stations to carry any program. Senator Smith observed that it seemed the Commission operated on the basis, that "if we can't get you one way we'll get you another". Chairman Fly said he thought that there might be regulations to require the industry to render a "public service" and carry all important special events. Senator Smith thought that since the Commission has the power to revoke licenses and grant them, it seemed to him the Commission could say "you carry these important events like the World Series — not matters which Congress may discuss". THE HOT SPOT 740 between NBC's Red and Blue KQW San Jose, Calif. San Francisco Studios 1470 Pine Street Reps. : Reynolds-Fitzgerald, Inc. Fly Points to Debate And Court Statements Chairman Fly rejoined that if the Commission should recommend such a legislative step, unquestionably the networks would "demand a Congressional investigation". Senator White observed there was no objection to the Commission making recommendations to Congress. Resuming his discussion of the jurisdictional phase, Chairman Fly reviewed provisions of the Act which, he contended, give the FCC authority to maintain competition and which he regarded as a definite Congressional mandate that monopoly should be regulated. He again reviewed the Congressional debates on the 1927 and 1934 acts, quoting former Senator Dill in detail. He also quoted from the Supreme Court decisions in both the Pottsville and Sanders cases to buttress his arguments, claiming that the very language which gives the FCC this authority is "heavily relied upon by the networks to contest our jurisdiction". Chairman Wheeler observed that in his view there could be no question that the Commission has the right to refuse a station a license if "it is going to create a monopoly". If both licenses in a community were in the hands of one company, Chairman Wheeler said, there could be no question about that constituting a monopoly and about the Com r ^ I TRIED TO COVER THE TEXAS GULF COAST WITHOUT THETWfNS: I940 /g^i Ik SALES CMAJ7r Trying to sell the Texas Gulf Coast without KXYZ-KRIS is like trying to paint v/ithout a brush. There are millions in sales to be made in this richest, fastest-growing section of the Southwest and the TWIN stations offer the key to this important market. Before planning your sales campaign, write for surveys and sales information. National Representatives: THE BRANHAM COMPANY DOUBLE A through our COMBINATION RATES # . . . and BONUS POINT ADVERTISING KXVZfKRIS HOUSTON 7 CORPUS CHRIST! NBC liUe. / NBC Red aU^ lioiU SUmh^ mutual W lone star chain xi^lfdicUei, TERMINAL INTERVIEWS sponsored by the Coca Cola Bottling Co. are presented daily from the New York Central R. R. station on WIZE, Springfield, 0. Here Bill Spencer, conductor of the Between Trains program, presents an interviewed traveler with a miniature carton of Coca Colas with Pat Williams, WIZE account executive, looking on. Springfield is the only location in the country where the miniatures are distributed. Chester C. Mcreland, Cincinnati, is agency. mission having the right to go back and correct the situation. Says FCC Tries to Carry Out Mandate Returning to his prepared manuscript, Chairman Fly said he did not wish to imply that the Commission should step in the shoes of the Department of Justice or the Federal Trade Commission in pursuing its regulatory functions. Similarly, he said, the Commission does not have and has not sought to exercise the powers of the courts. But the Act, the Congressional debates and the decisions of the Supreme Court "make clear beyond any doubt that the Commission is bound to exercise its licensing powers so as to preserve competition and prevent the development of monopoly". "The regulations adopted by the FCC," Chairman Fly insisted, "are designed to carry out the will of Congress with respect to competition and monopoly." He said he had not gone far into Section 303 (i), which specifically gives the Commission the power to make special regulations applicable to stations engaged in chain broadcasting. He contended the language used by Congress is broad and unquali WDRC CONNECTICUT'S PIONEER BROADCASTER No \laGaiion There v.<" "° spenaing. T ^^^^ ^^^.^,^,3 ^including yo „. 'Vler boom. ,a9e of Rummer J.C CBS -neccu. tied and leaves no doubt that Congress intended the Commission to give special attention to the problems created by chain broadcasting. Responding to questions, Chairman Fly said there are strong arguments why the networks should be drawn within the scope of the Communications Act. Chairman Wheeler joined him in this view. Asked by Senator Johnson (D-Col.) how many networks there should be. Chairman Fly said it was his guess that within a year or so, after the regulations were invoked, there would be "a fifth network". [Earlier, he had testified that he thought a half-dozen networks would suffice.] He said he thought the industry could support a fifth network profitably, but emphasized that this was all purely conjecture. White Recalls Net Control Plans FM, Chairman Fly said, is "an improved form of broadcasting that is going to move out and give us a more diversified service". He said one FM network already is being formed on a cooperative basis (The American Network). Then, he declared, television will "sweep across a broad field in the course of a few years". Senator White delved back into the legislative history of Section 303 (i), pointing out that it was the intent there should be special regulations applicable to chain broadcasting. But he and Senator Dill had in mind, he said, the physical aspects so as to present interference between stations, to specify location of stations, and to assure the "purity and sharpness of emissions", to govern areas to be served, and the like. Originally, there was to have been a sub-paragraph (j), he said, which would have authorized the Commission to determine power and wavelength to be used and to effect an equitable distribution of broadcast service. Senator Dill, Senator White recalled, had in mind that the power given the FCC might have authorized it to make special regulations as to the wattage to be used by stations on the networks. Senator Wheeler joined in that he could not see why 50,000-watt stations should be on the chains and the Maine legislator said the FCC, under the authorization, might order lessened power for stations on networks. After Senator White's dissertation. Chairman Fly said he could not help but observe that the particular provision alluded to by Senator White was "scrapped" and therefore not in the law. He also disputed Senator White's interpretations of Senator Dill's views, declaring that he felt Senator Dill's "quotations on the floor" had to be viewed as decisive. Again picking up his prepared statement. Chairman Fly said the Commission is following the basic philosophy of competition and prevention of monopoly in other related fields. In the FM regulations, he Page 24 • June 16, 1941 BROADCASTING • Broadcast Advertising