Broadcasting (July - Dec 1942)

the whole newspaper inquiry but had asked that the matter be decided by Congress, Com. Craven said newspaper owned stations seem to operate very much like any other good radio stations. If Congress is to redefine and fix the qualifications of any station, Mr. Craven suggested that it do so by providing that on and after a date to be fixed, no license shall be granted for such a station except to a corporation whose charter and by-laws provide that the business of the corporation is limited to the business of broadcasting. If further limitation of control is desired, the charter of such corporations should prohibit interlocking directorates and duplication of officials in public utility legislation. Com. Craven did not believe any limitations should be placed by Congress or otherwise upon the number of broadcasting services which a network may conduct. As new services such as television, FM and facsimile are opened, first for experimental work and later on a regular basis, it develops that those who are best equipped technically and willing to make the investment are those engaged in similar types of public communication, he said. As to the number of stations of any class which may be licensed to any network organization, Mr. Craven said it is agreed that network organizations should be permitted to own stations in those cities and at those points where ownership is necessary for program origination and for proper network operation. The hitch comes in an attempt to fix those points. He believed Congress and not the Commission should impose any limitations found necessary. Com. Craven attacked the policy of encouraging too many stations in the business markets and of sacrificing Available also to agencies and advertisers. For full details, write ■ George E. Halley TEXAS RANGERS LIBRARY HOTEL PICKWICK • KANSAS CITY. MO. AIRWAYS TO SKYWAYS, George M. Cahan (right), formerly program director of WTNJ, Trenton, and prior to that an announcer for WHP, Harrisburg, and WCAU, Philadelphia, was graduated July 3 in the aviation cadet class at the Columbus, Miss., air base. Cahan made his last appearance before the mike, being interviewed by PFC Bob Becks on Air Base Items. rural coverage and equitable distribution of facilities. Reasonable Balance Should Be Struck Declaring he believed in sound competition, he said the forcing of unsound competition will nullify directions of Congress to distribute facilities fairly and equitably. Mr. Craven added he felt a reasonable balance has to be struck, with emphasis on freedom of speech rather than commercialism. The three classes of stations — • clear, regional and local — remain the best solution for the exercise of free speech with the few channels available, he claimed. He urged that all are necessary for a balanced broadcast structure, but added that care should be exercised to avoid deterioration of service provided by clear channels. Through such facilities service is provided to small towns and rural areas, and when one of these channels is permitted to disintegrate or to be used for some other purpose, "we irrevocably prejudice our position both nationally and internationally." In one sense clear channels provide a radio reserve for the future. Com. Craven said, adding that it seems wasteful to use up all that is left of this natural resource merely to multiply existing radio service in large cities. He urged full hearings with participation of all interested pai'ties before any further channels are molested. Mr. Craven said grants have been made on an experimental basis "which cannot be justified on that basis, and conditions have been imposed in truly experimental licenses which are of doubtful benefit and value if true experimentation is to be fostered and encouraged." Technical Progress Of Radio Foreseen Mr. Craven said nobody can predict either the technical course or the economics which will affect technical progress. Recent inventive activity has centered around electronic research in the microwaves, he said. This means the present spectrum will be extended considerably, making a little more space not only for some sorely needed radio channels, but also for new radio uses. Development of new circuits, electronic tubes and types of antenna has opened a "wide vista for the peacetime application of electronics to all sorts of activities, including communications and broadcasting", he said. The most interesting development was what he called "wide band transmission", which will facilitate television and electrical methods of transmitting quantities of printed matter. FM will enhance quality and extend the range of local stations and accommodate a large number of new stations, he added. "I foresee the day when not only will we have color television broadcasting stations all over the country, but also when every telephone will have its corresponding video attachment. People living in rural areas will be able not only to hear and see the radio news commentator, but also will have the newspaper itself delivered by radio." He foresaw a new era which he termed the "electronic era", and a huge new industry providing the "kind of life-blood the nation will require after the war", with new communications problems for Congress and the Commission. "Therefore, it seems essential that we do not base long-term legislation upon what may appear to be a good detailed solution of today's minor troubles in radio. I hope any new legislation will contain statements of broad policy together with such checks and balances as are deemed nesessary to insure the development of radio as a free American enterprise." Mr. Craven said on cross examination he thought affiliates should have more flexibility in exercising their licensing responsibilites. He thought contracts wth networks should be limited to three years, which would give opportunity to other outlets for network affiliation. He felt option time was absolutely necessary. Rep. Sanders asked about the letter of last September sent by Chairman Fly to the Committee relating to the Sanders Bill. Mr. Craven said it was not discussed at any Commission meeting as far as he was aware and that he did not get a copy of it "until a few weeks ago". He said he did not recall having seen the letter by circularization. Other legislative matters from time to time have been discussed at meetings but not extensively, he said. He suggested all such matters of policy be discussed by the Commission under the leadership of the chairman. He said he was not the only member who favored a two-division FCC. Asked if his five suggestions on network-affiliate affairs would correct the "evils" enumerated by some witnesses, Mr. Craven said he did not see "the same evils" and that he thought it was necessary for time clearance that networks have firm options. Asked concerning the KOB case, Mr. Craven said he was familiar with it and had voted against the experimental grant on the WJZ clear channel the last time it came up and thought there should be a hearing. On procedural provisions, Mr. Craven said he thought it was highly desirable that the man who conducts the hearings should make the report to the FCC. The presiding officer "sees and hears the witnesses", he said. He urged against mixing of "the prosecuting and judicial functions". He said he was of the firm conviction the Commission did not have any authority on newspaper ownership, that he voted against the proceeding, and wanted the issue presented to Congress. National Policy in Stahlman Case Alluding to the decision of the court of appeals in the Stahlman case, involving the right of the Commission to subpoena James G. Stahlman as a witness, Com. Craven said there is a basic national policy involved and the FCC as an agency of Congress, should ask for instructions. The clear channel-high power question was opened by Rep. Brown. Com. Craven explained that as an engineer he favored higher than 50,000 watts, but as a commissioner there were social and economic factors to be considered. Moreover, he pointed out that the Senate adopted a resolution several years ago opposing power in excess of 50,000 watts. Asked whether this was a law or simply a warning. Commissioner Craven said "it's law to me". To correct present lack of coverage in underserved areas. Com. Craven said, would require a redistribution of facilities. He agreed that higher power would tend to help this, and said he would favor increase in daytime power on local stations now, except for the critical material situation. He said there had not been a proper survey of the economic and social aspects of higher power, and until that was done he would Page 62 • July 6, 1942 BROADCASTING • Broadcast Advertising