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7/1/38
A. T. & T. DEFENSE TO BE STUDIED BY FCC
Before submitting its final report to Congress on the $1,500,000 telephone rate inquiry, the Federal Communications Commission will give "appropriate study and consideration" to the replies of the American Telephone & Telegraph Co. , Chairman Frank R. McNinch announced this week.
An order, offered by Mr. McNinch and seconded by Commissioner T.A. M. Craven, was adopted unanimously by the Com¬ mission. It read:
"It is hereby ordered that the responses filed by the American Telephone and Telegraph Company with the Commission in answer to specific exhibits and testimony introduced during the telephone investigation be given appropriate study and con¬ sideration in the preparation of the final report of the Commis¬ sion to the Congress on the telephone investigation. "
The Commission’s action followed protest by the company against the refusal of Commissioner Walker, who conducted the inquiry, to permit it to cross-examine witnesses at the public hearings or to offer testimony in rebuttal to exhibits entered on behalf of the Commission.
"The inquiry, which ran almost a year, resulted in the submission to Congress on April 1st of a "proposed report" the highlight of which was an assertion that telephone rates might be reduced as much as 25 percent under certain conditions without interrupting the existing net revenues.
Mr. McNinch emphasized at that time that the report was only a "proposed" one to be submitted to the full Commission for its study with a view to determining as early as possible the form and content of the actual report requested by Congress.
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NEW STATION AUTHORIZED; ANOTHER RECOMMENDED
The Federal Communications Commission this week granted a construction permit to Harry Schwartz, Tulsa, Okla. , for a new broadcasting station to operate on 1310 kc. with 250 watts power daytime.
At the same time Examiner Tyler Berry recommended that the Garden Island Publishing Co. , Ltd. , of Lihue, Hawaii, be granted a permit to build and operate a station using 1500 kc. , with 100-250 watts power.
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