Motion Picture Herald (Mar-Apr 1940)

April 6, 1940 MOTION PICTURE HERALD 15 SENATE, RETAILERS, BUSINESS HIT FCC FOR ITS STAND ON TELEVISION FCC To Study Anew Policy on Television; Channel Dispute Over FM Broadcasting; Commission Ends Hearings The Federal Communication Commission's order rescinding its grant for limited commercialization beginning September 1st, and ordering another television hearing, has occasioned vigorous protests which include a move in the United States Senate for an investigation into the Commission's action, a protest by the Chamber of Commerce of the State of New York and by the dealer's section of the Electrical and Gas Association of New York. Other groups also have objected to the order and newspaper criticized the FCC decision. A few of RCA's competitors privately have applauded the action. FCC Chief in Defense James L. Fly, chairman of the FCC, defended the Commission's position on television Tuesday night over a national Mutual and NBC-Red radio hook-up. The Commissioner explained that all action taken was to foster 'the young art' of television and ' to protect the public's interest. The FCC head said, "Let me make it clear that we neither have nor desire any regulatory power over the sale of receivers or over advertising. But any action we take under our duty to license experimental operations and to encourage advances in radio, i must of course be taken in the light of actualities." Hints at "Extravagant Promotion" "Our course can be influenced, for example, by the rare case where a licensee might engage in extravagant promotion of sales to people of modest incomes while failing to inform the public of the limited and ' ; experimental character of the service now I | available, and of the mobility of the service, I where it appears that such activities threaten to make his system dominant among ; both transmitting stations and the public," ! Mr. Fly added. In conclusion Mr. Fly praised the re' I search activities of television inventors and encouraged the public who lived in areas , where television is available and could af. | ford receivers to buy sets and enjoy the it ;; new form of entertainment. First of all, he said, the Commission wanted the public ri '. to know all the facts before making any ! purchases. Introduced by Lundeen The resolution calling for the investigation of the FCCs action on television was introduced in 5' | the Senate on Monday by Senator Ernest Lundeen, Farmer-Laborite of Minnesota. If the : ■ measure were adopted the Senate Interstate Commerce Committee would determine whether ■ the Commission had exceeded its authority and , "whether it had interfered with the freedom of n r public and private enterprise." On March 23d the Commission cancelled the television regulations and ordered the new hearing. Dissatisfaction with the RCA marketing campaign was given as the reason for the action. RCA published an advertisement in two New York newspapers and in radio and motion picture business publications announcing its television plans. Authority Questioned Senator Lundeen, in introducing his resolution asking for an investigation, said, "I am not at all sure that the FCC was ever delegated such authority as it is attempting to exercise in connection with television, and for that reason I believe that the Senate Interstate Commerce Committee should place the facts before the United States Senate." The resolution was referred to that committee. The Senator also said, "I have read where an official of the Radio Corporation of America stated publicly that his company has spent about $10,000,000 in developing television and in trying to create a new art and a new industry. Unquestionably other interests have likewise spent tremendous sums and I, for one, do not believe that such development should be arbitrarily retarded by some bureau here in Washington." New York Chamber Acts On the same day the FCC action on television was criticized by Senator Lundeen, the Chamber of Commerce of the State of New York attacked the FCC action as did many other groups. The executive committee of the Chamber, in a report to be acted on Thursday by the whole organization, condemned the action of the Commission as "a demonstration of the lengths to which government bureaucracy can go in interfering with the legitimate functions of the American system of free enterprise." 200 Dealers in Sets Protest Some 200 television-set dealers in the New York area, represented in the dealers section of the Electrical and Gas Association of New York, protested the action. The FCC television move occasioned by an attempt to sell more television receivers was said to have done "irreparable harm to public confidence in television." Mortimer H. Fogel, chairman of the section, wrote to the FCC urging that the Commission restore limited commercial operation of television. Mr. Fogel estimated that the premature end of the campaign to sell television sets cost at least 5,000 potential jobs in factories, shops and offices. Manufacturer Protests One manufacturer, Robert Robins, head of the Catho-Ray Television Corporation, which was visited as well as the large laboratories on the recent FCC tour, threatened to sue the Commission for the harm done to his business. He asserted that the FCC had no authority to regulate the sale of receiving sets. Mr. Robins said, "That commission — it's a regular flying circus." Dealers pointed out that the public seemed willing to purchase television sets at the present state of the art and further that the commission has no power to regulate merchandising. Liberty Music Shops, a retailer of radio and television equipment, addressed a letter to the Commission. The letter said in part, "We believe . . . the Commission is attempting to put its protective wings over the public to a degree which the public itself does not ask for nor desire. . . . We are convinced that the public does not wish to wait until a perfect receiving set is created." The letter went on to point out that the public believes that standards will improve and has the right to buy sets now and not wait until the final stage of development. FCC Target of Senate Attack for Delaying Commercialization; Chamber and Radio Dealers Protest The eight-day hearing on Frequency Modulation before the Federal Communications Commission in Washington ended last Thursday with the whole radio industry indorsing the new broadcasting system. The Radio Corporation of America, expected to oppose FM, surprised the industry by completely indorsing the FM method of transmission and pleading for immediate commercialization. A total of 109 applications for FM licenses has been received by the Commission and only the problem of allocation of channels for FM has not been settled. FM supporters have asked for one of the channels used by television. Part in Spectrum Unsettled The hearings brought out that even the fundamental question of what part of the radio spectrum television is to operate is not yet settled. W2XBS, NBC's television station in New York and probably the most active in the country, operates on the channel which FM wants. It was said that television could operate as successfully, or more so, in a higher band. RCANBC, opposing a complete change, suggested that the No. 1 television channel be left for television in New York, Chicago and Los Angeles but elsewhere be given to FM. The compromise would permit only 5 FM stations in New York. There are four now and more than twice that number have applied. Elmer W. Engstrom, director of general research for RCA Manufacturing Company, told the FCC it would cost the company $100,000 if the television channel was given over entirely to FM. It also was said that the NBC station in New York, W2XBS, would be off the air several months if it had to change its wave length. Frank W. Wozencraft, general solicitor for RCA, told the Commission, "We believe the public interest will best be served by the Commission action giving frequency modulation a green light." He also said that RCA believed that "ultra-high frequency broadcasting is ready for commercial use" and concluded that "ultrahigh frequency broadcasting, when sound alone is broadcast, should use frequency modulation because of technical advantages." W. C. Lent, assistant director of development and research for RCA, presented an allocation plan for FM. Wr. Wozencraft said television will not use FM, although Major Armstrong, FM inventor, has expressed the opinion that FM would be better than the regular AM for television. Mr. Lent explained that 11 FM channels would be needed to give one station each to 64 Eastern metropolitan areas and 22 would be needed for complete national allocation. Educational organizations and others also asked the FCC to refrain from interference with the 41-42 m.c. band, now assigned to non-commercial broadcasting. Although the RCA representatives backed FM, they did not agree with Major Armstrong that FM would rapidly replace regular broadcasting. Thirteen FM stations are now licensed and in operation. Nine construction permits have been granted and 87 additional applications received. Twenty-two television stations have been licensed and 27 applications are pending.