Broadcasting (July - Dec 1942)

vision. Most broadcasting problem o grow out of the shortage of frequencies, he said. He criticized, without indulging in personalities, many practices of the FCC and asked specific instructions from Congress on policy questions. In view of recent controversies, he said it seemed desirable that Congress should specify more clearly to what extent it desires the Commission to regulate broadcasting. If it wants business practices of licensees to be regulated, it should say so or clearly specify the reverse. He asked Congress to decide if the Commission has power to take into account alleged violation of laws, other than the Communications Act, which affect the conduct of licensees, referring specifically to purported violation of the antitrust laws by the networks in the chain-monopoly proceedings. He believed such alleged violations should be taken into account by the FCC only after conviction in other jurisdictions. Favors Two Separate Divisions for FCC \ Com. Craven approved provision of the Sanders Bill to set up the FCC into two autonomous divisions. Chairman Fly previously had vigorously opposed this provision. The administrative and judicial work of the Commission can be divided along natural lines, he said. In urging separation of the FCC's functions, Mr. Craven thought experience had shown the dissimilarity of problems in various fields and the danger of attempting to deal with them with the same personnel. Under cross-examination, Mr. Craven declared such a reorganization would not disturb the FCC's war work. He said it could be done practically overnight, facilitating the FCC's work and relieving the chairman of arduous duties. He felt that in some instances a full and fair hearing has not been given to all parties with a legitimate interest in FCC proceedings. Moreover, he said the manner in arriving at judicial decisions seems, in some instances, to be at variance with recognized practice and fair play. Instructions from Congress "When I hear my master's copy on WFDF Flint Michigan, I get quite a bang out of it." would be tremendously helpful to parties having business before the Commission and the Commission itself, he added. Attempts to safeguard public interest by expediting procedural matters "cannot be carried to the point of entirely abolishing private rights," he said. Favoring the judicial review provisions in the Sanders Bill, Com. Craven said that while this would be helpful, he could not regard it as "an adequate substitute for efficient administration by competent and reasonable commissioners." He said he was concerned over the long delays involved in litigation. NAB proposals to the Committee have merit, he said, favoring particularly the proposal for declaratory rulings. The Commission's recent experiences with the chain broadcasting rules might have been avoided, he said, had it been able to render a declaratory ruling and had that ruling appealed to the courts before the rules became operative. The NAB proposal relating to unauthorized penalties and sanctions is worthy of consideration, he said. The third NAB proposal, he declared, would do no more than place in statutory form the law as already stated by the Supreme Court in the Sanders case. Should Ask Directions From Congress Favoring Section 6 of the Sanders Bill, Com. Craven said the Commission would not be expected to concern itself with the price paid for any station except insofar as that price might disqualify the purchaser to operate in the ljublic interest. Coming to the controversial Section 7, which would require the Commission to study and report on virtually all of the current issues, Com. Craven said that either now or later the Commission should make a report and recommendations on the subjects and request directions from Congress. Mr. Craven said he felt Congress had not seen fit to confer upon the Commission the power to regulate business practices or policies of stations. He said he could see no reason why such power should be conferred when stations are considered in the aggregate as networks. Asserting networks are essential and that they operate efficiently and well, Mr. Craven said if legislation is considered necessary, Congress itself should outline specific practices. Urging freedom of action both from the economic and practical standpoints, consistent with provisions of law, Mr. Craven suggested it might be helpful for Congress to enact certain provisions to serve as guideposts for the industry but which do not directly or indirectly control its economic or program development. In this respect, he suggested as the maximum five possible restraints upon networks over the Signs Comedy Team R. J. REYNOLDS TOBACCO Co., Winston-Salem (Camels) on Oct. 10 will start a new weekly CBS variety series built around Lou Abbott and Bud Costello. Although details were not available, deal was signed with Wm. Esty & Co., through Music Corp. of America, for the comedy team to head a package show to start in fall. Besides augmenting the half-hour bi-oadcast with guest talent and a featured vocalist, it is understood MCA may rotate name bands in the Hollywood area. ability of a licensee to exercise his responsibility, which might be covered in the law. He enumerated these as: (1) Where the station is prevented from broadcasting public service programs of any other network organization, with all programs broadcast by any public officer or on behalf of any government either local, state or national; (2) which prevents the station from rejecting or refusing network programs reasonably believed to be unsatisfactory, unsuitable or contrary to public interest, or from substituting therefor a program of outstanding local or national importance; (3) which prevents another station serving a substantially different area from broadcasting any network program or programs ; (4) which provides by original term, provisions for renewal or otherwise that the station will broadcast the programs of the network organization for a period longer an three years; (5) which gives the network organization an option upon periods of the station's time which are unspecified, or which can be exercised upon notice to the station within less than a reasonable time, such as 28 days. With these safeguards. Com. Craven said he believed the overall result will be far superior to the adoption of any plan whereby both networks and licensees are subjected to the ever-changing economic views of an ever-changing licensing agency. Opposing licensing of networks, Mr. Craven said this would inevitably limit rather than encourage competition between networks. Networks are program production and sales agencies, he said, and if required to apply to the FCC for a license, the Commission will inevitably become both their economic mentor and the judge of the propriety of their program material. "This is censorship in its worst form and it is difficult to see where such action would end if once commenced." Suggests Policy for Newspaper Stations Agreeing that Congress might be justified in providing special qualifications for station licensees, Mr. Craven said he did not believe it should be based on the occupation or other business interests of the owner of the station, as suggested in the newspaper field. Pointing out he had voted against The Twin Port Cities of DULUTH SUPERIOR BUY 23.7% MORE FOOD than the whole State of NEVADA ! KDAL Duluth, Minnesota FOR THE Worlds Best Coverage of file Worlds 'est News u n I T E D PRESS BROADCASTING • Broadcast Advertising July 6, 1942 • Page 61