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July 3, 1942
FLY VIGOROUSLY DEFENDS FCC ANTI-MONOPOLY RULES
Taking full advantage of his day in court or as it has worked out many days Chairman James L. Fly, appearing before the House Interstate Commerce Committee now considering the Sanders Bill which contemplates changes in the Communications Act, continu¬ ed to put up a spirited defense for the FCC anti-monopoly Chain Broadcasting Regulations.
Mr. Fly divided his discussion of the rules into the following parts: Exclusivity of affiliation, territorial exclusiv¬ ity, duration of affiliation contracts, station rejection of net¬ work programs, network ownershlo of stations, network control of station rates and freedom of speech and the chain broadcasting regu¬ lations. Each of these he discussed under three headings "The Abuse", "Illustrations", and the "Cure", which was always the much discussed anti-monopoly FCC regulations. The FCC Chairman also took up the licensing of networks, newspaper ownership of radio stations and clear channel investigations.
In connection with the newspaper ownership, Mr. Fly said that "we have formed no conclusions as to whether the Commis¬ sion has authority to refuse a license to a newspaper". The Chair¬ man said the Commission would reach a decision on this soon (later he spoke of several months) and that he had "no objection" to Congress expressing Itself on the subject of newspaper ownership of radio stations and added that the Commission mi^t decide to throw the entire problem into the lap of Congress,
On the other hand, he said, the Commission may have the power "under the public interest concept to make a decision".
The Chairman steadfastly declined to say whether he had formed his own opinion on the newspaperradio point.
"I don't know what my own personal Judgment will be", he
said.
"Congress Sanders has asked several previous witnesses why newspapers should be put in a proscribed class. He has asked why they should be treated differently from churches, schools and moving picture companies, et cetera. My answer is that if in the future there should arise a marked tendency for the ownership of radio stations to gravitate into the hands of churches, schools or motion picture companies that would be a matter which the Commission should properly look into". Chairman Fly testified.