Broadcasting Telecasting (Apr-Jun 1958)

BUBCOH MITTEK ON LW.ISLATIVB OVERSIGHT IMI.KIM KV IDKV I 1>»1MIMC4T1U,N» iu\lMI*(IUN THE INTERIM REPORT The House Oversight Subcommittee last Friday sharply criticized the behavior of some FCC Commissioners and recommended stiffening the law under which they operate. Here, slightly condensed, are the principal comments and conclusions. CONDUCT OF FCC COMMISSIONERS (a) Relationship with industry The extensive hearings held by the subcommittee on the conduct of the members of the FCC have revealed that over the years a pattern has developed of questionable conduct on the part of some members of the Commission and on the part of some industry organizations and members of industry who are subject to Commission regulation. The questionable propriety of some of this conduct, in the opinion of the subcommittee, has seriously undermined public confidence in the FCC, thus affecting adversely the administration of law by the Commission. Some members of the industry, as the record shows, have followed a practice of providing excessive entertainment for the members of the FCC and the Commission staff. The subcommittee feels that such entertainment does not lend itself to the establishment of a proper relationship between the independent regulatory commissions and those who are subject to regulation by such commissions. To the extent that members of the FCC find it necessary, in the course of the performance of their official duties, to attend meetings sponsored by industry organizations, the subcommittee feels very strongly that such attendance should be at government expense. The subcommittee is not at all certain that the benefits to be derived from the wholesale attendance by members of the Commission at industry meetings and the participation of individual members in promotional events are commensurate with the time and effort devoted to these affairs. The Commission has followed the practice of attending these meetings for many years, but the important industry problems which have been pending before the Commission for many years, such as clear channels, daytime broadcasting, the possible modification of frequency allocations for television stations, and network regulations, to name only a few, still remain on the Commission's agenda. This leads the subcommittee to suggest an increase in the amount of time spent on the solution of these industry problems would bring greater benefits to the public and the industry than the continuing fruitless debate of these problems at industry meetings. In this connection, the hearings have revealed the unsavory practice engaged in by representatives of some industrial concerns of charging business expenses and using the names of members of the FCC as justification for such expenses, while actually such entertainment did not occur. These practices, the subcommittee feels, are utterly indefensible. They blacken the names of members of independent regulatory agencies who have no way of defending themselves against such practices. (b) Per diem The record in the hearings shows that several members of the FCC have engaged in the practice of accepting per diem in spite of the fact that industry organizations or members of the industry actually paid hotel expenses and other expenses of some of these commissioners. Such practices undermine public confidence in the commissioners and must be avoided. The question of the propriety and legality of such conduct is of concern not only to members of the FCC but to members and the staffs of other independent regulatory commissions and executive agencies. The rulings and testimony of the Comptroller General given this subcommittee are ambiguous and in conflict. The subcommittee feels very strongly that there is an urgent need for clarification by the Comptroller General. (c) Delays and pressures The hearings held by the subcommittee on ch. 10 in Miami, Fla., have revealed the pressures brought on some members of the Commission. Pressures of this kind cannot be tolerated. It is the purpose of the subcommittee, through the views and recommendations contained in this interim report, to relieve the FCC from pressures of an improper character. The subcommittee is concerned about the long delays which have occurred in rendering final decisions in adjudicatory proceedings and in important rulemaking proceedings. Such delays have contributed to an increase in pressure of the kind referred to above. It will be the purpose of this subcommittee to submit additional legislative recommendations aiming at eliminating some of these serious delays. The subcommittee has in mind, for further study and consideration, provisions of the Communications Act of 1934, as amended, which enable competitors to delay the grant of licenses and other provisions of the act which prevent the Commission from utilizing effectively the services of members of the Commission staff. ( d ) Furnishing of equipment Over the years there has grown up in the industry the practice of making available to members of the FCC radios, color and black-and-white television sets, and other equipment which have been installed and serviced in the homes of individual Commissioners at the expense of industrial concerns which are subject to regulation by the Commission. While members of the Commission, particularly during development stages of new uses of radio and tv. may well need to have easy access to such equipment, the subcommittee believes that the present practices with respect to furnishing such facilities are undesirable. Furthermore, the subcommittee has serious doubt whether some of the equipment which has been so made available would meet the test of being needed by the members of the Commission, in the public interest, in order to enable them to follow new technical developments. Finally, the subcommittee feels that the furnishing of some of these facilities to the Commissioners was not in the public interest but in the interest of promoting the business of the industrial concerns which furnished the equipment. The subcommittee believes that the Commission itself should examine into this subject, applying the most stringent standards of propriety, and take such action as will remedy a situation which has brought on much public criticism and provide an orderly and well-publicized method of obtaining such equipment. LEGISLATIVE RECOMMENDATIONS While the hearings with respect to the FCC have not been completed as yet, the hearing record contains enough information with respect to some phases of its operations to warrant certain legislative recommendations. Specifically, the subcommittee recommends that changes in the Communications Act of 1934. as amended, are desirable with respect to the matters listed below, and amendments have been prepared for this purpose. ( 1 ) Code of ethics The hearings have dealt at great length with the conduct of individual Commissioners, including ex parte contacts with in