Broadcasting Telecasting (Oct-Dec 1957)

tions of the existing rules. In any case where the Commission is authorized, pursuant to § 312(a)(b) to revoke a license, or to revoke a permit, or to issue a cease and desist order, the Commission, after the hearing required by subsection 312(c), or waiver thereof, in lieu of revoking a license, or revoking a permit, or issuing a cease and desist order, or in addition to issuing a cease and desist order, should be authorized to order the licensee or permittee to forfeit to the United States a specified sum for each day during which the Commission finds that any offense set forth in the order to show cause issued pursuant to subsection 312(c) occurred. Since the magnitude and importance of the rule infractions are likely to vary from case to case, the Commission should be permitted some latitude, within prescribed limits, in relating the amount of each forfeiture to the nature of the infraction and the particular circumstances involved. Such a system of forfeiture would give the Commission more flexibility in applying its rules to varied and changing situations. The Network Study Staff therefore recommends that the Commission request Congressional legislation that would impower it to adopt a system of forfeitures in the case of demonstrated infractions of Commission rules. This procedure for handling alleged violation of Commission rules is preferable to considering such complaints in the license renewal context. In the past, the main thrust of Commission activity in the broadcasting area has necessarily been in the assignment of frequencies for the development of radio and television broadcasting and in licensing of stations to operate on the assigned frequencies. These were clearly the most urgent of the Commission's tasks and, with the limitations of budget and staff, required a heavy concentration of Commission personnel. Now that the Commission has succeeded in getting a substantial number of television stations on the air, and has issued licenses for virtually all commercial assignments in the vhf portion of the spectrum, it is possible for the Commission to devote more of its resources to some of the other problems before it. With respect to a number of practices which it has examined, the Network Study Staff has discovered apparent violations of existing Commission rules. The mutuality of interest between stations and networks in many areas, and the overriding importance to stations of affiliation with a network, may make it unlikely that some stations will inform the Commission in cases where the network has been seeking to influence station behavior in ways that may be contrary to the Commission's rules. For these reasons, the Network Study Staff concludes that continued and close surveillance by the Commission of such practices is essential, including field investigations, where appropriate, in connection with alleged violations. Television is a dynamic industry, and its structure and practices will undoubtedly undergo numerous changes with the passage of time. The Network Study Staff therefore recommends that the Commission take such administrative steps as it considers necessary in order to insure an adequate staff organization both for the effective enforcement of the existing and proposed rules and for a continued re-examination of the rules in the light of their impact on the industry and of other developments. Only in this way can the Commission insure a broadcasting system that is serving the public interest through effective competition. [V. Conclusion The Report on Network Broadcasting recognizes the great contribution of the networks to television. It was the nationwide, interconnected network system of broadcasting, providing free program service through national advertiser support, which made possible the phenomenal growth of television. In this way, national program service was brought to virtually all our people in a brief span of years. Through this system, public service programming as well as popular entertainment is provided and simultaneous broadcast to a nationwide audience of events of national interest is made possible. The network system also provides a vital means of linking together our people in the event of national emergency. In these and other respects, network activities are consistent with, or help to promote the public interest and to effectuate Commission policy. On the other hand, there are respects in v/hich the networks' concentration of con trol, and the practices in which they engage, have been found incompatible with the public interest. An important Commission policy impinged upon by network structure and practices is that of making the station licensee responsible for broadcasting in the public interest. As has been seen, stations are highly dependent on the network program service, and the network affiliate carries a large schedule of network programs. The networks, through their use of the contractual right of option time, and other practices, have persuaded affiliated stations to accept a larger schedule of network programs than they would otherwise be disposed to carry. In this way, network practices have, to some extent, restricted ths programming responsibility of the station licensee and limited the licensee's opportunities to program according to the specific needs of his local community. They have also curtailed the availability of alternative program sources to the station and thus to the public which it serves. Another statutory and Commission policy directly affected by networking is that of preserving effective competition in broadcasting. Networks have a high concentration of control over important facets of the telecasting industry. The principal factors accounting for the high concentration of control by networks are the shortage of competitive station facilities in the vhf spectrum and the economic advantages, to One Call for all You Need in LIGHTING EQUIPMENT RENTALS LIGHTING Complete M. R. Incandescent Equipment, M.R. High Intensity Arc Equipment, Dimmer Equipment 250 W — 10,000 W, Diffusion, Scoops, Reflectors, Bullboards, Cable. PORTABLE POWER EQUIPMENT AC and DC Generators 15 Amps to 1500 Amps (Truck or Castermounted). Portable Transformers — Dry and Oil, Portable Substations. DOLLIES Fearless and Raby Panoram Dollies, Crab and Western Dollies. 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