Broadcasting Telecasting (Oct-Dec 1961)

the letter he sent to Rep. Alford noted this introduction of the pay-tv question into the proceedings, and added, "We would be more than willing to present the people's side of the story." Along with the letter, Mr. Harling sent copies of the TOA briefs filed in the U. S. Court of Appeals opposing the FCC grant which authorized the RKO-Phonevision pay-tv test in Hartford, Conn. Right to agency review debated at conference Does an applicant have the right to a full review by a federal administrative agency of an initial decision, or is this right a discretionary one? This was the liveliest topic debated at the second full meeting of the Administrative Conference of the U. S., in Washington. The fracas originated when one of the conference committees reported that it is prepared to support S-1734, a bill introduced in the last Congress by Sen. John A. Carroll (D-Colo.). One provision of the bill would give all administrative agencies the right to accept or deny, without reasons, requests for review of a hearing examiner's initial decision. This discretion is already vested in the FCC; it was incorporated in the reorganization legislation passed by Congress last summer. The conference committee, headed by David Ferber, assistant general counsel of the Securities & Exchange Commission, was asked to give further considereration to the proposal after vigorous opposition developed on the floor. The objectors included Donald C. Beelar, Washington communications lawyer, and J. D. Bond, an Atomic Energy Commission hearing examiner formerly with the FCC. The conference heard Chief Justice Earl Warren and Presidential Assistant Myer (Mike) Feldman. It was first established by President Eisenhower and continued by President Kennedy to work out methods to cut down delay and red tape at federal agencies. District of Columbia Circuit Judge E. Barrett Prettyman is chairman of the conference; Max D. Paglin, FCC general counsel, is vice chariman. Court upholds FCC right to return applications The FCC has the right to return an application when the facility which is being sought is already occupied, the U. S." Court of Appeals for the District of Columbia unanimously agreed last week. The three-judge panel upheld the FCC's 1960 action when it refused to accept a contingent application for ch. 10 in Terre Haute, Ind., submitted by FCBA to hear Taishoff Sol Taishoff, editor and publisher of Broadcasting and Television magazines, will be the luncheon speaker at the December meeting of the Federal Communications Bar Assn. The title of Mr. Taishoff 's talk: "The Answer: A New Communications Law." The meeting is tomorrow (Dec. 19) at the Washington Hotel, Washington, D. C. Fort Harrison Telecasting Corp. WTHI-TV Terre Haute occupied ch. 10, but had asked the FCC to permit it to change to ch. 2. Fort Harrison asked that its application be accepted, pending the commission's approval of this change. The FCC said it could not; that when and if the channel switch was made, Fort Harrison could reapply. The court agreed that Fort Harrison was not aggrieved or adversely affected. The court comprised retired Supreme Court Justice Stanley Forman Reed, Circuit Judges Wilbur K. Miller and David L. Bazelon. Minnesota Mining indicted by U.S. The Minnesota Mining & Manufacturing Co., owner of the Mutual Broadcasting System, has been indicted by a federal grand jury on charges of price fixing and monopoly in the field of magnetic recording tapes, pressure sensitive cellophane tapes and lithographic plates. The indictment was handed down by a federal grand jury in Danville, 111., and charged criminal violations of the Sherman Antitrust Act. The maximum fine under the nine -count indictment is $450,000. Nine other firms were listed as co-conspirators but not as defendants. Officials of MM&M declined to comment on the indictment until they have studied the full text. Minnesota Mining bought MBS in April 1960, paying over $1 million for the radio network. The company's 1960 sales reached almost $550 million. The grand jury charged that MM&M compelled or attempted to compel competitors to accept restricted patent licensing agreements. These, the grand jury found, enabled Minnesota Mining to determine minimum prices. According to the indictment, MM&M persuaded Armour Research Foundation, a non-profit corporation associated with the Illinois Institute of Technology, to eliminate existing rights of others to operate under MM&M patents on magnetic tape. The grand jury found, also, that Minnesota Mining induced Armour to deny technical information and knowledge on magnetic recording tapes to all but Minnesota Mining. Out of $40 million total magnetic tape sales in 1960, the indictment read, MM&M accounted for $25 million. Two hearing examiners appointed by commission Chester F. Naumowicz and Arthur A. Gladstone, both veterans of the FCC staff, have been appointed new hearing examiners, the commission announced last week. They will assume their new posts Jan. 8 and March 1, respectively, bringing the commission's complement of hearing examiners to 17. Mr. Naumowicz, 36, has been an attorney in the Office of Opinions & Reviews for the past five years. Prior to that he practiced law in Silver Spring, Md., and was associate general counsel for the Washington Suburban Sanitary Commission. He holds an LL.B. degree from Maryland U. Mr. Gladstone, 50, has been with the commission since 1941 and has worked in virtually all of its various divisions, including the general counsel's office, and for many years was chief of the Domestic Radio Facilities Div. of the Common Carrier Bureau. He left that post earlier this year to become legal assistant to Commissioner Robert E. Lee. Mr. Gladstone received an LL.B. from Columbia U. in 1934. New FCC plan to give patents more scrutiny With a view to assuring that the availability of broadcast equipment meeting FCC performance standards will not be prejudiced by unreasonable royalty or licensing policies on the part of patent holders, the commission last week announced plans to revise its procedures concerning patents. The new plan, the commission said, involves mainly the enlargement of its patent staff in order better to keep abreast of current developments. In addition to its present practice of obtaining specific patent information relevant to a particular proceeding, the FCC says its augmented staff will continuingly study new technical developments, compiling information of interest for commission files. In this manner, the commission said, it hopes to be able to give early consideration and take "appropriate action" when it appears that a patent structure may obstruct service to be provided under FCC technical standards. 72 (GOVERNMENT) BROADCASTING, December 18, 1961