Broadcasting Telecasting (Oct-Dec 1958)

GOVERNMENT continued HARRIS GROUP UNWILLING TO DIE • Legislative Oversight may live on in 86th Congress • Staff report hits Justice on FCC ex parte contacts In all probability, there will be a Legislative Oversight Subcommittee during the 86th Congress, which convenes Jan. 3. And last week, the subcommittee received a report from one of its staff members criticizing the FCC and Justice Dept. for failure to crack down against individuals who have made ex parte contacts. The report says 30 such cases have been investigated "and there are probably more." All earlier indications had been that no effort would be made to extend the controversial investigative body's life after its authorization expires Dec. 31, but developments in the past few weeks have completely changed the outlook. Rep. Oren Harris (D-Ark.) last week told Broadcasting the subcommittee's report, due by the end of the year, would recommend its renewal. All of the six other subcommittee members remaining in Congress (five Democrats, and one Republican) have urged that it be given new life. Previously, Rep. Harris had been against the subcommittee's continuance and planned to absorb its work into the parent committee. In fact, last September he sent word to the chief counsel to inform the staff the subcommittee would expire Dec. 31 and that they should make other arrangements for jobs [Closed Circuit, Sept. 29]. One source close to the House leadership predicted last week the subcommittee would not run into any major difficulties in getting renewed. He said that House Speaker Sam Rayburn (D-Tex.) would abide by the recommendations made by Rep. Harris. The committee was established in March 1957 with a $250,000 appropriation and the blessings of Speaker Rayburn, who made the original suggestion for the need of such an investigative body. A second appropriation will be necessary for its continuance and indications are that a fight may develop in this respect on the House floor. Rough Sledding • The committee's history has been a stormy one. Cries at the start arose that it would do a "hatchet job" on the FCC. This was denied by all parties, although the Commission has borne the brunt of the subcommittee's attacks and has been severely chastised in the eyes of the public. As a result of the committee's investigations, one commissioner has been forced to resign and has been indicted, a former chairman has been accused of accepting a bribe, the character and integrity of all except the newest members of the FCC have been attacked, a cloud of suspicion has been cast on a majority of the Commission's major tv grants and a dozen decisions have been returned by the courts. In addition, disclosures of the subcommittee forced the resignation of President Eisenhower's top aide. Nor was all the turmoil created outside the subcommittee. Intramural clashes were frequent and bitter in the early stages. The Page 74 • November 24, 1958 subcommittee fired its chief counsel after a name-calling fight with him in the press. The first chairman "resigned" as a result but was allowed to remain as a member of the subcommittee. Latest to go was the chief investigator who quit last summer under fire. Rep. Harris said the recommendation would not be that the subcommittee be continued on the broad scale and type of operation it pursued in the past. He would not comment on whether it would continue in its present form and personnel. He hopes the new Oversight Subcommittee can devote its time to less sensational but constructive reviews of the regulatory agencies and their activities in carrying out the law. The subcommittee's report also will include a draft of an "across-the-board" code of ethics for all agencies under its jurisdiction. In addition, it will take up the powers (probably recommending more) and tenure of the chairman of the FCC and the method of his selection (the subcommittee, it's reported, is split on whether this position should be rotated from year to year). Still another phase of the report is expected to put teeth into laws governing conflicts of interest -and ex parte contacts. Some Speculation • Talk centered on whether Rep. Harris would step down as chairman of the subcommittee. If he does. Rep. John Bell Williams (D-Miss.) is expected to become chairman. Rep. Harris refused to comment on this aspect. Members of the subcommittee often have commented that it has just "scratched the surface" of its announced and intended job. The consensus was, following informal talks the past two weeks, that Congress could ill afford to do away with its newest investigative arm. In fact, talk now is that the subcommittee will be established on a permanent basis. Several of the attorneys who appeared as panelists last week before the subcommittee urged the continuance of its work by the same group or another body (see separate story). "There is a great need for additional information, not about bribery, not about influence, but how these agencies are doing their jobs," Prof. Clark M. Byse of Harvard stated. Last week's report, submitted by staff attorney Stephen J. Angland, did not figure in the decision to recommend continuance of the subcommittee. It does, however, offer a future course for the subcommittee if Mr. Angland's charges are investigated further. "The recent publicity received by the Attorney General with respect to his position on the [Miami] ch. 10 proceedings [Government, Nov. 17] does not stand inquiry," Mr. Angland stated. He said the subcommittee has made evidence public that is "quite clearly sufficient to convict several persons" of violating the section (409 [c] [2]) of the Communications Act dealing with ex parte contacts and illegal pressures. "As an explanation for no indictments," Mr. Angland stated, "it has been indicated that Sec. 409 (c) (2) is not clear. This haziness has just developed since this subcommittee went into tv cases." Mr. Angland cited several official FCC and court documents which, he alleged, showed that there had been no "haziness" on interpretations in the past. Mr. Angland said that in his investigations of tv cases, he found indications of ex parte contacts in over 30 (only a portion of which have been made public). "It was unnecessary to develop all these cases for legislative purposes," he told the subcommittee. "However, for law enforcement, it would be necessary. I am also very certain that there are cases I did not uncover. "The obvious conclusion is that the Attorney General has evidence of a number of calculated, and in some cases, gross violations of Sec. 409 (c) (2), but that he does not want to prosecute." Mr. Angland also charged that members of the bar have been publicly involved in ex parte representations, "an additional area where the Attorney General could be helpful." EX-FCC HEAD DENIES ALL BRIBE RUMORS • Oversight can't track sources • More hints of planted rumors Former FCC Chairman George C. McConnaughey swore under oath last Monday (Nov. 17) that he did not solicit or accept a bribe for his vote in the Pittsburgh ch. 4 tv case. Previous witnesses before the House Legislative Oversight Subcommittee had testified they heard "rumors" of bribes totaling $250,000 in the case [Government, Nov. 17]. "I have definite proof that no money was paid" either while on the FCC or since, Mr. McConnaughey said. "Your committee has all the records of my bank account, Mr. [Robert] L'Heureux' and Mr. [George] Sutton's," he added, referring to his former as MR. L'HEUREUX MR. McCONNAUGHEY sociates in a law firm now dissolved. The former commissioner testified he first heard of the alleged bribes when questioned on the subject by the FBI in September 1957. The subcommittee has been unable to determine the source of reports Mr. McConnaughey was to receive $50,000 from ch. 4 applicant Tv City Inc. or $200,000 from a second applicant, Hearst-WCAE Broadcasting