Broadcasting (Apr - June 1950)

'UNIFORM POLICY' Opposition Presented In Oral Argument INDUSTRY attorneys, standing by their earlier recommendations, last Monday told FCC it should consider on a case-to-case basis only the applications of those who have violated non-radio laws. Their views were expressed during oral argument on the Commission's proposal looking to a ''uniform policy" for handling of * such applications [Broadcasting, April 17]. Nearly all held that law violations— whether anti-trust or others — should not be considered by FCC unless they clearly pertain to the "character" of the applicant and raise a question as to whether the station would be operated in the public interest. They contended most all violations, except those specifically cited in the Communications Act, per se, should not be cause for denial, but properly may be considered along with other factors. FCC indicated considerable concern over the anti-trust question, particularly with relation to the movie industry and its entrance into television in view of recent anti-trust litigation in the movie field. Held Legislative Action William A. Porter, counsel for Loew's Inc., parent firm of WMGM-AM-FM New York and KMGM (FM) Los Angeles, held FCC's attempt to set any uniform policy would constitute legislative action or an effort to broaden the scope of the Communications Act. He indicated only Congress could do this and FCC would be exceeding its authority as well as avoiding its discretionary responsibility as charged by Congress. Mr. Porter explained anti-trust decisions are merely charts for future economic action and do not necessarily reflect on character. He said such suits are remedial and not punative actions as a rule. Don Petty, NAB general counsel, argued FCC has no authority to "alter or amend" the Communications Act as it would in effect through a uniform policy. He held the Commission also would in effect be legislating criminal law since violation of FCC policy is punishable and subject to fine under the Act. Paul A. Porter, past FCC chairman and counsel for Paramount Pictures Corp. and Paramount Television Productions Inc. (KTLA (TV) Los Angeles), told the Commission it now has power to limit monopoly or dominance in its network and other rules and hence no additional procedural rules were necessary. He reminded FCC that to exclude the movie group from TV would be excluding a "dynamic competitive factor" in the progress of that medium. Mr. Porter explained the 1938 movie suit was a civil, not criminal, action and that the Justice Dept. in initiating it had commented on the cooperation of the film industry in seeking to have the anti-trust situation clarified. He said the court, in accepting the film industry's consent decree to BROADCASTING • Telecasting certain violations in 1949, could have ruled to have FCC revoke certain movie film radio licenses. Yet FCC itself did not consider the case pertinent since it did not participate, he indicated. Bernard Koteen, counsel for WPTR Albany, chiefly owned by Schine Chain Theatres Inc., related FCC in its brief filed with the District Court in the network rules case declared consideration of antitrust actions is discretionary since the actions may not relate to radio. He said the Commission in its newspaper ownership case also concluded it could not fairly adopt any general policy on procedure. Mr. Koteen further pointed out numerous cases in which the Commission has preferred an applicant in a competitive proceeding in spite of various law violations. Kenneth C. Royal, former Secretary of the Army and counsel for Twentieth Century-Fox Film Corp., expanded earlier statements concerning the wide and changing scope of anti-trust proceedings and illustrated how courts now are ruling as violations the very things they previously ruled were legal. He indicated the whole gamut of legal action cannot be covered by any general rules. Duke M. Patrick, representing United Paramount Pictures Inc. (WBKB (TV) Chicago), new exhibiting firm formed in the split of Paramount as a result of the movie litigation, warned that the violation itself cannot be fairly considered, but rather each factual situation surrounding any violation must be taken into account. Turner's Stand George Turner, appearing for Westinghouse Radio Stations Inc., held that what an applicant does after an anti-trust decision is more indicative than what he did before. He affirmed the controlling factor should be an applicant's record in the field concerned, rather than unrelated action in another field. Pleas for case-to-case consideration also were made by John P. Southmayd, representing Warner Bros.' KFWB Los Angeles; W. Theodore Pierson, in behalf of Yankee Network, WKY Oklahoma City, KOB Albuquerque, KGLO Mason City, Iowa, and WTAD Quincy, 111.; William A. Roberts, Allen B. DuMont Labs., and James H. Neu, CBS. Mr. Pierson observed a single violation does not determine character and FCC would not do its duty if it ruled violators out automatically. Mr. Roberts noted violators are treated on a case-to-case basis, with all facts weighed, by other similar agencies such as the Interstate Commerce Commission and Civil Aeronautics Administration. FOR SALE TRANSMITTING EQUIPMENT OF FORMER STATIONS WTMJ-FM 03.3 mo) anil WSAU'FM <95 5«> 50 kw RCA transmitter with control console G. E. modulation and frequency monitor 550 foot Blaw-Knox tower, Type H-40 complete with Type A-4 lighting 8 element Federal square loop antenna with de-icers 1340 feet Andrew Company 52 ohm 3!4 inch transmission line with flange couplers. Also 6 expansion joints and 4 each 45° and 90° elbows. Tubes used for varying number of hours: 8 type 5592 power tubes, 8 type 7C24 intermediate power tubes, 12 type 857B rectifier tubes 10 kw REL transmitter with control console and modulation and frequency monitor 500 feet Andrew Company 52 ohm 3V8 inch transmission line with flange couplers. Also 2 each 45° and 90° elbows. Johnson iso-coupler and standing wave indicator 8 type 4-1000 used Eimac power tubes Offers for all or part of the above equipment will be considered. For further information communicate with Walter J. Damm Vice President and General Manager of Radio THE JOURNAL COMPANY MILWAUKEE WISCONSIN May 1, 1950 • Page 45