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November 26, 1940
INDUSTRY PREPARES FOR MONOPOLY BATTLE
Following a barrage of brickbats hurled at the 1800 page Federal Communications Commission Committee’s chain broadcasting report, oral arguments will be heard Monday, December 2, subsequent to the filing of the final briefs. Among the Committee's conclu¬ sions tardily submitted last June when it was openly charged by Congress that it was stalling, were that networks be licensed, that exclusive network affiliate contracts be banned and that the FCC, in effect, supervise the dealings of the stations and networks. It was largely because of the displeasure of Congress in the way that the FCC handled this report that the Senate refused to confirm Col. Thad Brown, one of the signers of the report, for reappointment to the Commission.
Vigorous objections to the report were voiced by all the networks except Mutual but the one that really got the Commission's goat was submitted by Paul Segal on behalf of the Independent Radio Network Affiliates. Chairman James L. Fly apparently went into a tantrum on this and ordered T. J. Slowie, Secretary, to wire each of the IRNA members as to whether Segal's brief was authorized by them and whether it reflected the position of their station.
In response to this, Mark Ethridge, of Station WHAS, Louisville, and former President of the National Association of Broadcasters, banged back with the hottest telegram anybody ever sent to Chairman Fly. In further defiance, Mr. Ethridge added that he was sending a carbon of the telegram to President Roosevelt. It read:
"Dear Mr. Fly:
"I have sent the following wire to Mr. Slowie, in response to his wire of yesterday:
"'WHAS was represented at the San Francisco Convention, which instructed the officers and directors of IRNA to file a brief setting out the attitude of stations toward the Monopoly Committee's report. The brief was subnitted to us for approval and we approve. '
"I do want to protest to you, however, as Chairman of the Commission, what I consider to be intimidation. Whether the wire had that purpose, its wording and its preemptory nature will cer¬ tainly have that effect. I do not know any reason why the stations affiliated with the networks should not make their position known to the full Commission, particularly when a report of a committee of the Commission charges, in effect, that the stations are not ful¬ filling their public duty.
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