NAB reports (Jan-Dec 1944)

1760 N STREET, N. W. WASHINGTON 6, D. C. Vol. 12, No. 14, April 7, 1944 Selective Service Supplements Nos. 19 and 20 to the NAB Selective Service Handbook are being mailed to all member stations with this issue of the REPORTS and to all non¬ member stations separately. Station managers may find it advantageous to attach a copy of No. 19 to any applications for deferment or they may desire to file a copy of this Supplement as an additional exhibit to deferment request now pending. Extra copies will be supplied upon request. FCC REVISES MULTIPLE OWNERSHIP COMPLIANCE PROCEDURE Under the new procedure for compliance with Rule 3.35 adopted by the Commission last Tuesday (4) Licensees must comply by May 31, 1944, or secure by petition exten¬ sion of time for compliance due to good cause shown, or be designated for hearing. The order follows: ORDER NO. 84-B “At a meeting of the Commission held on April 4, 1944, the Commission gave consideration to the petitions pending before it for a suspension of Regulation 3.35, or for a post¬ ponement of the effective date of that Regulation. “The Commission thereupon adopted the following Order: “I. Except as provided below the effective date of Regu¬ lation 3.35 is hereby suspended. “II. On or before May 31, 1944, all licensees to whom Regulation 3.35 is or may be applicable will be re¬ quired to: 1. File an application which will effect compliance with Regulation 3.35; or 2. Submit a petition for extension of license for such period as may be necessary to complete negotia¬ tions for an orderly disposition or otherwise to comply with the terms of the Regulation, provided such petition sets forth: a. The determination of the licensee to proceed in good faith as expeditiously as may be to effectu¬ ate compliance with the Regulation; and b. A statement of the steps which petitioner pro¬ poses to take in order to effect his compliance with the Regulation, and the specific facts estab¬ lishing due diligence in the effort to effect a com¬ pliance with the terms of the Regulation and the licensee’s inability to comply therewith; or 3. Submit a petition for a hearing to determine the applicability of Regulation 3.35 to the petitioner, in which case the petition and the license renewal will be set for hearing. “HI. The license renewals of all affected licensees, who do not take one of the foregoing steps or who are unsuc¬ cessful in obtaining an extension of time under subparagraph 2 above, will be designated for hearing. “IV. The Commission will insist upon a speedy determi¬ nation of any proceeding hereunder and will require an expeditious compliance with its final order thereon within such reasonable time as may be fixed in such final order. “V. Upon compliance with Regulation 3.35 the Commis¬ sion will issue appropriate certificates pursuant to the provisions of Section 123 of the Revenue Act of 1943.” In connection with “V” above, the Commission announced that upon the granting of applications for consent to as¬ signment of licenses, or for consent to transfer of control of licensee corporations, filed for the purpose of effecting compliance with the Commission policy established in the multiple ownership rule (Section 3.35), the Commission will issue appropriate certificates pui'suant to the provi¬ sions of Section 123 of the Revenue Act of 1943 relating to gain from sale or exchange of property necessary or appro¬ priate to effectuate the policies of the Commission with re¬ spect to the ownership and control of radio broadcasting stations. The provisions of the Revenue Act of 1943 referred to are as follows : Revenue Act of 1943 SEC. 123. GAIN FROM SALE OR EXCHANGE OF PROPERTY PURSUANT TO ORDERS OF FEDERAL COMMUNICATIONS COMMISSION. (a) In General. — Section 112 is amended by adding at the end thereof a new subsection as follows: “ (m) . Gain from Sale or Exchange to Effectuate Policies of Federal Communications Commission. — If the sale or exchange of property (including stock in a corporation) is certified by the Federal Communications Commission to be necessary or appropriate to effectuate the policies of the Commission with respect to the ownership and control of radio broadcasting stations, such sale or exchange shall, if (Continued on page 102) April 7, 1944— 101