Heinl radio business letter (Jan-June 1940)

Record Details:

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5/S8/40 The Commission's order went on to say*. "As soon as the engineering opinion of the industry is prepared to approve any one of the competing systems of broad¬ casting as the standard system the Commission will consider the authorization of full commercialization. " The FCC took another pot shot at David Samoff, Presi¬ dent of the Radio Coi-poration of America, whose newspaper adver¬ tisements caused the Commission to withdraw its former order granting limited commercialization of television September 1 and to hold a second hearing last April. "It is obvious", the FCC commented, "that the industry as a whole does not share the RCA view of forging ahead regard¬ less of the untested possibility of improvements on the horizon. "It further appears that the industry was not prepared to accept Sarnoff's premise of 'We live on obsolescense’ as a basis for justifying a heavy public investment at current levels of efficiency. " The FCC in its decision blew hot and cold at times. In one place it stated that monopoly must be guarded against; yet it insisted that a single system of television transmission is essential. It stated in one portion of the report that "standards of transmission should not now be set", and yet a little later it invited the industry to confer with the FCC at once with the idea of solving the problems blocking commercialization. The conclusion of the Commission's report follows: "The rules adopted by the Commission on February 29, 1940, were intended to provide for a more rapid development of television by permitting progra.mming experiments concurrently with necessary technical research leading to establishment of trans¬ mission standards by the Commission. Subsequent events, however, have demonstrated that commercial television broadcasting without the complete cooperation of the manufacturing industry, is irreconciliable with the necessary objectives of further technical research and experimentation. "The positions of the different companies on this whole problem cannot be viewed with total disregard of the patent inter¬ ests of competing manufacturers which find expression in a desire to lock the scientific levels of the art down to a single uniform system based in whole or in part upon such patents. The functions of this Commission are not to be usurped and utilized as a means of monopolizing this important industry either through this or other devices. "It is essential to the program of television that there be not a mere semblance of competition, but that there be a genuine and healthy competition within an unfettered industry. 3