NAB reports (Jan-Dec 1935)

for telephone charges in the various States or in interstate com¬ merce; and the probable savings to telephone operating companies and the public by purchasing equipment under a system of com¬ petitive bidding. “(c) The reasons for the failure generally to reduce telephone rates and charges during the years of declining prices; and the extent, if any, to which local subscribers or the users of toll service have borne the cost of the research developments for telephone equipment and appliances, radio, motion picture, and other inven¬ tions, including the maintenance and support of Bell Telephone Laboratories, Incorporated. “(d) The effect of monopolistic control upon the reasonableness of telephone rates and charges, upon the methods of competition with independent telephone companies, and upon the character of services rendered, and the alleged unfair or discriminatory practices with respect to such companies, and with respect to radio broad¬ casting or public speaker ‘hook-ups.’ “(e) The effect of mergers, consolidations, and acquisitions of control by telephone companies, including the determination of whether there has been any ‘write-up’ in the purchase price of prop¬ erty, equipment or intangibles, the fairness of the terms and con¬ ditions of any merger, consolidation, or acquisition, and the public interest therein, and the effect thereof upon rates or service. “(f) The accounting methods of the companies, particularly with reference to depreciation accounting, apportionment of investment, revenues and expenses between State and interstate operations, employee pension funds, and valuation of properties for both rate and tax purposes. “(g) The methods of competition with other companies or in¬ dustries, including the determination of whether or not there has been any sale or refusal to buy from or sell to competing companies, or suppression of patents, and the expansion of the companies into fields other than telephone communication, including teletype serv¬ ice, telephoto service, telegraph service, broadcasting, motion and sound picture production and distribution, and the maufacture of electrical equipment, so far as such expansion may relate to or affect communications. “(h) Whether or not the companies have sought through propa¬ ganda or the expenditure of money or the control of channels of publicity to influence or control public opinion, legislative or ad¬ ministrative action, or elections. “Sec. 3. As used in the resolution the term ‘company’ shall include all subsidiary, affiliated, associated, and holding companies or cor¬ porations and all companies directly or indirectly associated or connected with telephone companies, either by direct or indirect stock ownership, interlocking directorates, voting trusts, holding or investment companies, or any other direct or indirect means. “Sec. 4. The inquiry into certain practices of telephone carriers subject to the Communications Act of 1934, recently instituted by the Federal Communications Commission pursuant to its Telephone Division Order Numbered 11 and Statement of November 14, 1934, may be consolidated with the investigation required by this joint resolution in the manner and to the extent deemed desirable by the Commission. “Sec. S. For the purposes of this resolution the Federal Com¬ munications Commission is hereby authorized to hold hearings; to ctmtract for stenographic reporting service; to utilize its regular personnel, facilities, jurisdiction, and powers insofar as practicable; and to employ for the purposes of this investigation such additional experts, including engineering, accounting, legal, and other assistants as may be found necessary, without regard to the provisions of other laws applicable to the employment and compensation of officers and employees of the United States, and to make such other expenditures, including necessary travel expenses, and ex¬ penditures for printing and binding, as it deems necessary. The Commission is also hereby authorized to have access to, upon de¬ mand, for the purposes of examination, and the right to copy, any books, papers, correspondence, memoranda, and other records of any person, partnership, company, or other organization being investigated, whether such books, papers, correspondence, mem¬ oranda, or records are in the possession of the company under investigation or are in the possession of other persons, firms, or corporations; to require by subpena the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, and other records which the Commission deems rele¬ vant or material to the inquiry, at any designated place of hearing within the United States; to administer oaths and affirmations, to require persons, partnerships, companies, or other organizations to submit to the Commission in writing reports and answers to specific questions, furnishing such information as the Commission may re • Page quire relative to the inquiry. Such reports and answers shall be made under oath or otherwise as the Commission may prescribe and shall be filed with the Commission within such reasonable period as the Commission may prescribe, unless additional time be granted in any case by the Commission. In case of contumacy or the refusal to obey any subpena or other order issued hereunder, the Commission may invoke the aid of any court of the United States, within the jurisdiction of which such inquiry is carried on, or where such party guilty of contumacy or refusal to obey resides or has his place of business, in requiring obedience to such subpena or other order and any such court of the United States shall have jurisdiction to issue its order enforcing such subpena or other order of the Commission in whole or in part; and any failure to obey such order of the court may be punished by such court as a con¬ tempt thereof. All process in such cases may be served wherever the defendant may be found. “Sec. 6. There is hereby appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $750,000, to be made immedaitely available to the Federal Communications Com¬ mission for the purposes of the investigation and report herein authorized and directed, and the Commission shall make special reports to Congress on its progress and its findings in this in¬ vestigation.” BILL TO CLARIFY FTC ACT A bill to clarify the Federal Trade Commission Act, introduced by Chairman Wheeler of the Senate Interstate Commerce Com¬ mittee (S. 944), was reported favorably to the Senate Tuesday. The bill would amend Section 5 of the Federal Trade Commission Act of 1914 by substituting for the first two paragraphs of Section 5 the following language: “Unfair methods of competition in or affecting commerce and unfair or deceptive acts and practices in or affecting commerce are declared unlawful. “The Commission is empowered and directed to prevent persons, partnerships, or corporations, except banks and common carriers subject to the Acts to regulate commerce, from using unfair meth¬ ods of competition in or affecting commerce and unfair or deceptive acts and practices in or affecting commerce.” RADIO LISTENERS ABOVE AVERAGE Results of an educational self-test broadcast recently on the weekly radio program of the U. S. Office of Education reveal a more-than-average intelligence on the part of radio listeners. The test broadcast by the Office of Education was conducted in the field of mathematics and was one of a series of similar tests which that branch of the government plans to broadcast in response to popular demand. The tests were so designed that a normal group of adults would give correct answers to S of the 10 questions. The average of the radio listeners, however, was 7 out of 10. In commenting upon the results of the test. Commissioner of Education John W. Studebaker stated that “Information gathered by the Federal Office of Education convinces us that those who provide public entertainment are overly pessimistic about the quality of American audiences. They have swallowed the myth that we are a nation of 12 -yearolds.” COMMISSION GETS DEFICIENCY The President has signed an omnibus bill which contains a de¬ ficiency appropriation of $480,000 for the Communications Com¬ mission. This amount of money is available from now until the end of the fiscal year, June 30, next. It is believed by members of the Commission that this will allow the Commission to go ahead with its many activities in the meantime. RECOMMENDS NEW STATION Abraham Shapiro applied to the Federal Communications Com¬ mission for a construction permit for the erection of a new broad¬ casting station at Astoria, Ore., to use 1370 kilocycles, 100 watts power, and 7 a. m. to 8 p. m. time on the air. Ralph L. Walker (e), in Report No. 1-20, recommended that the application be. granted as to daytime hours but be denied in so far as it requests hours after local sunset. The Examiner found that the applicant is qualified to construct and operate the proposed station and that there is no consistently satisfactory broadcast reception in the area the applicant proposes 722 •