Broadcasting Telecasting (Apr-Jun 1958)

HARRIS COMMITTEE continued members of independent regulatory commissions." "Unanimous" approval of the interim report came following a lengthy Tuesday executive meeting and two Thursday meetings interspersed before and after public hearings. Rep. Morgan Moulder (D-Mo.), who resigned as chairman of the subcommittee after Bernard Schwartz was fired as chief counsel [Lead Story, Feb. 17], did not participate in any of the discussions on the report. Rep. Moulder has been absent from practically all the hearings for the past six weeks. Other members of the subcommittee of the House Interstate & Foreign Commerce Committee are Democrats Oren Harris (Ark.), who succeeded Rep. Moulder as chairman and who also is chairman of the parent committee; John Bell Williams (Miss.); Peter F. Mack Jr. (111.); John J. Flynt Jr. (Ga.), and John Moss (Calif.) and Republicans Joseph P. O'Hara (Minn.); Robert Hale (Me.); John W. Heselton (Mass.); John B. Bennett (Mich.), and Charles A. Wolverton (N. J.). Meanwhile, public hearings continued for three days last week with a parade of present and former commissioners testifying on official misconduct charges lodged by Dr. Schwartz. Thursday's testimony by former Comr. Frieda B. Hennock ended the current phase of hearings. Rep. Harris announced. Also testifying last week were Comrs. Robert E. Lee, T. A. M. Craven, John C. Doerfer, Frederick W. Ford and former Comrs. George C. McConnaughey and E. M. Webster. As each of the present commissioners were excused, Rep. Harris served them with notice they probably would be called to testify again on other phases of the investiga tions. The subcommittee was established last spring with a $250,000 appropriation to determine if the regulatory agencies are "administering the laws as Congress intended." The hearings thus far have caused the resignation under fire of former FCC Comr. Richard A. Mack for the role he played in the Miami ch. 10 grant. They also have resulted in sensational, nationwide headlines on charges of wrongdoing at the FCC. The subcommittee's first chief counsel was fired and replaced by Robert W. Lishman, who has participated in the last 10 days of hearings. From the start, the cry was raised in some circles that the subcommittee was out to do a "hatchet job" on the FCC. Later charges of "whitewash," especially by Dr. Schwartz, were raised against the subcommittee. Rep. Harris and other members of the subcommittee have repeatedly denied both counts and just as often promised an "all-out, impartial" investigation. While a definite future course still is undecided. Rep. Harris said Thursday the staff is "seeking light" on other comparative tv cases. A memorandum has been prepared giving the subcommittee members what information on these cases the staff now has and possible future hearings will be determined later. Some of these other cases are known to be the grants of ch. 5 Boston (WHDH-TVHerald Traveler), ch. 13 Indianapolis (Crosley Broadcasting Co.), ch. 4 Pittsburgh (merged applicants WCAE [Hearst] and Television City Inc.), ch. 10 Rochester, New York (see Hennock testimony), ch, 12 Jacksonville, Fla. (WFGA-TV), ch 12 Fresno, Calif. (KFRE-TV), ch. 7 Seattle (KIRO-TV). ch. 7 Miami (WCKT [TV]) and ch. 4 New Orleans (WWL-TV). Rep. Harris stressed that the subcommit tee does not plan hearings in all the cases under scrutiny. "It's a question of what will be necessary to complete the committee's task," he said. At least three members of the subcommittee have stated privately, however, that they will take a long look at the Boston and Indianapolis decisions. During last week's testimony, Mr. Lishman entered into the record a lengthy letter from NBC Vice President Thomas E. Ervin relating to that network's contacts with commissioners and FCC personnel. In addition to color tv sets, Mr. Ervin said commissioners had been provided with transistor radios and in two instances — Comrs. Lee and Mack — hi-fi sets. Also, the network presented 51 Christmas presents to FCC personnel in 1956. The subcommittee had asked for records dating back to 1949 and Mr. Ervin pointed out 2,000 persons at NBC are eligible to file expense accounts and there were "several hundred thousand items" related to the period involved. The subcommittee has compiled some known instances of ex-parte contacts with the FCC and its staff by the three tv networks over a period dating back to 1948. The list shows ABC with 54 contacts, CBS 81 and NBC 115. The network "contacts" include such items as a picture of Mamie Eisenhower for Mrs. McConnaughey; introduction to tv personality Garry Moore for Mrs. McConnaughey; a sapphire-tipped needle for long playing records for former FCC Chairman Wayne Coy; the loan of a truck and driver; service as a travel agency; delivery of packages, and several other more or less conventional "services" such as tickets to tv shows and Broadway plays, candy, phonograph albums, flowers, lunches and cocktails. Last Thursday, Sen. Spessard L. Holland Code of ethics docketed for FCC action The FCC has been considering a code of ethics — and something may be forthcoming in another week or two. The Securities and Exchange Commission has drafted a list of integrities for its members — and has circulated it among other federal regulatory agencies with the avowed hope that all organizations might adopt a common standard of conduct. A bill to amend the Administrative Procedures Act, to bar discussion of a case with officials of an agency handling the case once it has been set for hearing, has been introduced in Congress by Sen. John Marshall Butler (R-Md.) and Rep. DeWitt S. Hyde (R-Md.). The proposed legislation (S 3521 and HR 11624) prohibits litigants from discussing or communicating with agency officials about their cases. Still pending in the Congress are three bills to legislate integrity on government officials. They are S 3306, by Sen. Wil liam Proxmire (D-Wis.), S 3346, by Sen. Wayne Morse (D-Ore.), and HR 11022 by Rep. Charles A. Wolverton (R-NJ.). The FCC's proposal has actually been roughed in and has been discussed at several Commission meetings in the last few weeks. One of its main items is the provision that all communications to Commissioners on adjudicatory cases be placed in the public files. There is some disagreement among the commissioners as to whether ethics can be imposed. There is also some question among the commissioners as to whether this is the proper time for the Commission, or any other agency, to establish a code of ethics. This is in light of the recent unpleasantness on Capitol Hill and the feeling that the adoption of a code of ethics might be construed as acknowledging wrongdoing. All the FCC members have stoutly maintained before the House Oversight Committee that they did nothing improper. There is also a feeling that it might be better to wait because of pending legislation in Congress. And, some commissioners are strongly of the opinion that no matter how many ethical guideposts might be adopted and published, they would not deter a miscreant. "I've got to sleep with myself," one FCC commissioner said last week, "and no rules of conduct, our own or any imposed on us, is going to change my responsibility to my own conscience." The proposed SEC canons of ethics were circulated among other federal regulatory agencies not only for possible use as. a single standard for all agencies, SEC Chairman Edward N. Gadsby said last week, but also for any comments or suggestions by commissioners in other agencies. Thus far no comments have been received, Mr. Gadsby acknowledged, but he added that none were expected so soon. The proposed SEC rules, which Page 28 April 7, 1958 Broadcasting