NAB reports (Mar-Dec 1933)

The National Association of Broadcasters NATIONAL PRESS BUILDING ★ ★ * * ★ WASHINGTON, D. C. PHILIP G. LOUCKS, Managing Director NAB REPORTS * * * * * Copyright, 1933, The National Association of Broadcasters Vol. 1 No. 6 APRIL 15, 1933 SUPREME COURT HEARS WIBO CASE The Supreme Court of the United States on Tuesday heard argu¬ ment in the appeals of the Federal Radio Commission from the decision of the Court of Appeals of the District of Columbia over¬ ruling the Commission’s grant to Station WJKS, Gary, Ind., of the facilities of Stations WIBO and WPCC, Chicago, Ill. The Commission, overruling the examiner, granted to the Gary station the frequency of 560 kc. which had been assigned to the Chicago stations and the Court of Appeals reversed the Commis¬ sion’s decision. Station WJKS now operates on a frequency of 1360 kc. Subsequently the Government appealed to the Supreme Court for a review of the lower court’s opinion. The case for the Commission was argued by Solicitor General Thatcher who stated that the Supreme Court had jurisdiction over the case in the light of the amendment to Section 16 of the Radio Act and that the lower court erred in overruling the Commission. It was urged upon the court that in view of the fact that Illinois was over quota and Indiana over quota that the Commission was correct in granting the Indiana application. Mrs. Mabel Walker Willebrant argued for Station WJKS, con¬ fining her remarks largely to a review of the present radio law and the regulations promulgated thereunder. The case for Stations WIBO and WPCC was argued by Repre¬ sentative James M. Beck, former solicitor general. He argued first that the court was without jurisdiction to review the lower court’s decision inasmuch as the lower court in passing upon radio appeals was acting in an administrative capacity. Congress is without power to confer upon a constitutional court jurisdiction in such cases, he said. The Commission is an agent of the Congress in granting “administrative favors,” he argued, and the rights conferred through radio licenses were not “justiciable” rights. Congress might have adopted any policy with respect to the use of broadcasting frequencies but chose to grant the licenses to private individuals and corporations. Having thus declared this to be the policy of the Government, these private individuals and corporations have ex¬ pended large sums of money to exercise the rights conferred and there was at least a presumptive right that stations, once erected and in operation, should continue in operation subject only to the right of revocation for cause set forth in the law7. Even though there might be no rights as between a licensee and the sovereign power of the government, there were definite rights between two rival claimants for a facility. The Davis Amendment allocated facilities to states but that amendment did not confer upon an individual station the right to set up that Amendment as against another licensee. Mr. Beck also questioned the procedure of the Commission in reversing the examiner. He pointed out that the Commission had not heard oral argument prior to its decision and that this failure constituted a violation of due process guaranteed to his clients under the law. The court wall likely render a decision in the case early next month. REORGANIZATION PLANS NOT ANNOUNCED While many rumors are current, no official announcement relative to President Roosevelt’s plan to reorganize Government bureaus and commissions has as yet been announced. It is understood that a suggested plan for reorganization prepared by Secretary of Com¬ merce Roper and his unofficial committee is now at the White House but it is not known definitely whether the Radio Commission is involved in the plan. HEARINGS SCHEDULED ON RADIO BILLS The House Merchant Marine. Radio and Fisheries Committee held a meeting on Thursday and decided to hold hearings on April 27 on two bills (H. R. 1558 and H. R. 1559) introduced by Repre¬ sentative Louis Ludlow of Indiana, relating to the operation of short wave receiving sets. The Committee did not act on any of the other radio measures before it for the reason, perhaps, that the President’s reorganization plans and the North American Confer¬ ence are in the offing. It is doubtful if the House leaders will pro¬ vide for the consideration of any radio bills during the present special session which is devoting its time entirely to the Roosevelt economy program. WOULD REGULATE DRUG ADVERTISING The Department of Agriculture is giving consideration to a revi¬ sion of the Food and Drugs Act of 1906 which would give to the Government control over advertising of foods and drugs shipped in interstate commerce. While details of the proposed revision of the law are being closely guarded it has been learned that it is planned to give the Department control over advertising, setting up a licensing system, extending not only to all foods and drugs, but also to corollary articles, such as healing devices, appliances, belts, lamps and similar mechanical apparatus. Similar provisions have been proposed by the Department in the past but Congress has not seen fit to act upon such proposals. It is doubtful if the proposal to revise the food and drugs act will receive consideration during the present session although there is a possibility that the Department may submit its recommendations before adjournment of the session. The advertising proposal, it is understood, would affect radio, newspapers, magazines and other media alike. RECOMMENDS DENIAL OF KWKH LICENSE In a report proposed to the Commission April 8 (Report No. 470), Chief Examiner Yost recommended the refusal to Station KWKH, Hello World Broadcasting Corporation, of a renewal of its license to operate on 850 kc., a cleared channel, and urged the granting of full time to Station WWL, Loyola University, New Orleans, La., on that channel. The stations have been sharing time. The same report recommends that the application of the Interna¬ tional Broadcasting Corporation for a construction permit for a new station at Shreveport be denied; that the National Union In¬ demnity Association of Shreveport be permitted to withdraw its application for a new station at Shreveport; and that the applica¬ tion of Station WSPA, Virgil V. Evans, Spartanburg, S. C., to change its frequency from 1420 to 850 kc. and increase its power from 100 to 5000 watts be denied. In his conclusions, the Chief Examiner said that “there is a greater public need at New Orleans for the radio broadcasting facili¬ ties now assigned to Station KWKH than there is for the use of these facilities at Shreveport” and that “the granting of the aDplication of Lovola University and the deletion of Station KWKH would not affect the present quota status of the State of Louisiana or of the Third Zone.” The Chief Examiner found also that the Loyola University was “legally, financially, technically and otherwise qualified to operate Station WWL in the public interest, convenience and necessity.’’ “The financial qualifications, the public service heretofore ren¬ dered and the public service proposed to be hereafter rendered by Hello World Broadcasting Corporation on its clear channel assign¬ ment at Shreveport do not warrant a finding that the continued operation of Station KWKH would serve public interest, con¬ venience or necessity,” the Chief Examiner found. LOUISIANA STATION DENIED PERMIT Examiner R. H. Hyde was partially sustained by the Radio Com¬ mission in his Report No. 447 bv denying to W. H. Allen, Eugene Lew and S. B. Pearce permission to erect a new broadcasting station at Alexandria, La. The Commission denied Station KWEA, > Page 23 •