NAB reports (Jan-Dec 1945)

^NATION All 1 760 N STREET, N. W. WASHINGTON 6, D. C BROADCASTERS Vol. 13, No. 26, June 29, 1945 NAB CODE PROVISION JEOPARDIZED A decision of far-reaching importance to the broadcast industry was handed down by the Federal Communica¬ tions Commission on Tuesday (26). The Decision and Order in the United Broadcasting Company (WHKC) case, which we print in full, jeopardizes the provisions of the NAB Code dealing with Controversial Public Issues and Membership Solicitation. The specific language of the Commission is: “The Commission, however, is of the opinion that the operation of any station under the extreme principles that no time shall be sold for the discussion of controversial public issues and that only charitable organ¬ izations and certain commercial interests may solicit mem¬ berships is inconsistent with the concept of public interest established by the Communications Act as the criterion of radio regulation.” This decision of the FCC may well undermine the effec¬ tiveness of the industry’s attempt to institute a program of self-regulation, in so far as it relates to public issues of a controversial nature and membership solicitation. The Commission observes that it is the duty of each station licensee to make sufficient time available “on a non-discriminatory basis” for full discussion of problems of public concern. This view is consistent with and in no sense contrary to that embodied in the Code since that document imposes upon each individual broadcaster the obligation of making time available without charge — which is clearly “on a non-discriminatory basis” — for the discussion of issues of a controversial character-. The Commission’s opinion “that the operation of any station under the extreme principles that no time shall be sold for the discussion of controversial public issues and that only charitable organizations and certain commercial interests may solicit membership is inconsistent with the concept of public interest * * *” appears to take issue with the Code recommendation. This development poses a problem of deep importance to every person in the industry. The full text of the Decision and Order follows: Before the FEDERAL COMMUNICATIONS COMMISSION Washington 25, D. C. Docket No. 6631 In re United Broadcasting Company (WHKC), Columbus, Ohio DECISION AND ORDER By the Commission: 1. The Commission has before it a joint motion filed by the International Union, United Automobile, Aircraft and Agricultural Implement Workers of America, affiliated with the Congress of Industrial Organizations and Local 927, UAW-CIO, Columbus, Ohio (herein called the “UAWCIO” or the petitioner), and the United Broadcasting Company, licensee of Station WHKC (herein called the licensee), requesting the Commission to adopt a Statement of Policy which has been agreed upon by the parties, and to enter an order dismissing the proceedings. 2. The background of this matter may be set forth as follows: On June 2, 1944, the UAW-CIO filed a petition directed against the Commission’s action granting the application of the licensee for renewal of license for oper¬ ation of Station WHKC. The petition alleged that the licensee was throttling free speech and was therefore not operating in the public interest for the following reasons : (a) The station had a policy not to permit the sale of time for programs which solicit memberships, discuss controversial subjects, race, religion, and politics. (b) The station did not apply this practice uniformly, but on the contrary applied that policy “strictly to those with whom the management of Station WHKC disagrees, including petitioners, and loosely or not at all with respect to others.” (c) The station unfairly censored scripts submitted by petitioners. Upon consideration of this petition and an opposition thereto filed by the licensee, the Commission designated the petition for hearing, and pursuant to the provisions of Sections 308(b) and 312(a) of the Communications Act of 1934, as amended, directed the station licensee to file with the Commission on or before the 5th day of August, 1944, a Statement of Fact concerning the operation of WHKC with particular reference to the allegations of the petition and as to whether the station had been operated in the public interest. The Commission further directed the licensee to be prepared at said hearing to offer evi¬ dence in support of its Statement of Fact. Pursuant to the Commission’s action, the licensee filed its Statement of Fact and a hearing was held before a member of the Commission from August 16 through August 24, 1944. 3. The evidence adduced at the hearing showed that the station’s policy upon which the petition was predicated was governed by the provisions of the Code of the National Association of Broadcasters. The Code is a voluntary one without legal effect upon the members of the National Association of Broadcasters. The purpose of the Code as stated in its foreword is “to formulate basic standards” for the guidance of broadcasters. At pages 3 and 4 it provides that no time shall be sold for the presentation of public controversial issues, with the exception of political broadcasts and the public forum type of programs; and that solicitation of memberships in organizations, whether on paid or free time, should not be permitted except for charitable organizations, such as the American Red Cross and “except where such memberships are incidental to the rendering of commercial services, such as an insurance plan either in respect to casualty, to life, or to property.” 4. On October 20, 1944, the petitioner and the licensee filed the instant joint motion which contained the following agreed statement: “The record of the hearing discloses that Station WHKC in the past had pursued a policy which it be¬ lieved to be in the best interests of the public and at no time did the station believe that the application of this policy was contrary to the interests of labor. The record testimony further discloses that at the time of the hearing the station enunciated a revised policy which it had adopted prior to the hearing and which it intends to follow in the future. This policy is as follows: (Continued on next page) June 29, 1945-255