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MORTGAGE STATION CONTROL HIT; LICENSE REVOKED
The Federal Communications Commission this week struck a blow at mortgage control of broadcasting stations as it revok¬ ed the license of a Maryland station and set for hearing the renewals of two other stations.
The license of Station WSAL, Salisbury, Md. , wa.s revok¬ ed by the FCC and hearings were scheduled on renewal of licenses of two other stations on the ground that they were controlled by a Washington radio engineer, Glenn D. Gillett, in violation of the Communications Act.
Mr. Gillett was said to have obtained control of the stations by purchasing mortgages on them. He failed, however, to have the stations transferred legally to him by FCC approval of the deals.
Simultaneous with the revocation of the WSAL license, Frank M. Stearns, its operator, filed an application to assign the permit to the Eastern Shore Broadcasting Co.
The two other stations said by the FCC to be controlled by Mr. Gillett through mortgage holdings are WEAK, Wilkes Barre, Penna. , and WQDM, St. Albans, Vt. Both were granted temporary license renewals pending hearings.
Mr. Stearns wa.s said by the FCC "to have made false and fraudulent statements" with regard to the station's financing, equipment and ownership.
The WSAL license revocation is effective November 13, unless the licensee applies for a hearing, in which case it will stand suspended until decision of the Commission following such hearing.
On January 13, 1938, Frank M. Stearns was licensed to operate station WSAL, daytime hours on 1200 kc., with 250 watts, the FCC stated.
"He is held to have made false and fraudulent statements and failed to make full disclosure to the Commission concerning the financing of station construction, equipment used, and owner¬ ship, management, and control, facts which would have warranted refusal to grant construction permit and sta.tion license had they been known to the Commission", it added. "It further appears that the rights granted under the terms of the license have, without the Commission's written consent, been transferred.
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