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Each of the two plants* for which the Federal Telephone & Radio Corp, , Newark, N. J, , has supplied the materials, will have three separate transmitters, one of 200 kilowatts and two of 50,
Already operating is the new Pacific Ocean network of the Armed Forces Radio Service. Recently it broadcast for the first time to American soldiers on formerly Japanese-controlled land. Regular broadcasts are transcribed and flown to Honolulu from the United States,
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CONGRESS ADVICE ASKED RE HIGH PRICED RADIO STATION SALES
The Federal Communications Commission on Monday asked Congressional direction as to the policy it should follow in passing on the sale of radio stations where the sales prices are far in excess of the golng-concem and physical property values of the sta¬ tions and appear to Involve considerable compensation for the radio frequencies themselves.
In identical letters to Senate Interstate Commerce Commit¬ tee Chairman Burton K. Wheeler and to Representative Clarence Lea, Chairman of the House Interstate and Foreign Commerce Committee,
FCC Chairman James Lawrence Fly suggested the ’’tremendously high prices” which radio stations command in the present market indicates the sellers may be profiting from their lien on a radio frequency which they have been authorized to use under the Communications Act of 1934, but whose ownership under the Act is reserved to the public.
Chairman Fly*s letter follows, in part:
’’The Congress has had before it proposals to limit the amount of consideration to the value of the physical properties (of radio stations) transferred but no provision of this character has been adopted. The statute does make clear that the frequencies are not in any way the property of the licensees. The Commission has rejected and is prepared to reject any transfer which on its face involves a consideration for the frequency. The Commission, appar¬ ently consistent with Congressional policy, has approved transfers that Involve going-concern values, good will, etc. There remains, however, a serious question of policy and one on which the law is not clear, as to whether the Commission should approve a transfer wherein the amount of the consideration is over and beyond any amount which can be reasonably allocated to physical values plus going-con¬ cern and good will, even though the written record does not itself show an allocation of a sum for the frequency. Our concern in this regard is heightened by the tremendously high prices which radio stations are commanding in the present state of the market. This is illustrated by the fact that one local station was sold for a half— million dollars and some regional stations are selling for a million or more.
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