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COURT RULING REVERSES COMMISSION'S DECISION
The deletion of two broadcasting stations in an over¬ quota State to assign their frequencies to a station in an underquota State when those two stations were rendering meritorious service "furnished no substantial justification for the decision" of the Federal Radio Commission. So held the Court of Appeals of the District of Columbia in reversing and remanding a Com¬ mission decision calling for the elimination of Stations WIBO and WPCC, Chicago, in favor of Station WJKS, Gary, Ind.
Had the Court upheld the Federal Radio Commission it is quite likely there would have been a scramble for better facili¬ ties by many stations in the under-quota Sta.tes of the various zones. Certainly the Commission, by this action, would have encouraged all the under-quota States to attempt to secure the facilities they desired from the over-quota States.
The cases were brought before the Court of Appeals of the District of Columbia by Nelson Brothers Bond and Mortgage Co. (Station WIBO) and North Shore Church (Station WPCC) on ap¬ peal from a decision of the Radio Commission granting the appli¬ cation of the Johnson-Kennedy Radio Corporation (Station WJKS) Gary, Ind., that it be assigned the 560 kilocycle frequency shared by them in Chicago. In reaching the decision, which was written by Associate Justice Robb, the court concluded:
"Station WIBO had been broadcasting for more than two years, and Station WPCC more than three years, when Station WJKS entered the field. The only apparent reason for granting the application of Station WJKS and destroying the other two sta¬ tions is that Indiana is underquota, which in the circumstances furnishes no substantial justification for the decision of the Commission. As already observed, the evidence discloses that Stations WIBO and W?CC have been and are ’serving public interest, convenience and necessity’ certainly to as great an extent as the applicant station. In our view, the conclusively established and admitted facts furnish no legal basis for the decision of the Commission. In other words, the decision is in a legal sense arbitrary and capricious."
With regard to the Davis amendment, Justice Robb de¬ clares:
"It will be observed that the statute directs the li¬ censing authority to establish and maintain 'as nearly as possible equality of broadcasting service to each of the severa.l zones, and to 'make a fair and equitable allocation of licenses', etc., to each of the States within those zones. The requirement that there shall be an equal allocation to each of the zones, accord¬ ing to population is significant. The fourth zone, in which the stations directly involved in this controversy are located, comprises the States of Indiana, Illinois, Wisconsin, Minnesota,
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