Variety radio directory (1937)

FEDERAL RADIO REGULATION— Continued There is one phase of economics which does not enter into any interpretation of public interest, convenience or necessity as applied to broadcasting. That is rate regulation. The Communications Act confers no power upon the Commission to regulate the rates of broadcast stations, and the intent of Congress was that it should not have such power. In some of the early drafts of proposed statutes to regulate communications, broadcast stations were included within the definition of common carriers, and from time to time bills have been introduced to give the Commission this power of rate-regulation. So far such proposals have all been rejected. Indications are not wanting, however, that eventually there may be legislation of this sort. The task that such legislation will impose is not enviable. It seems obvious that rate regulation cannot be predicated on valuation of physical assets without fantastic results and without making advertising by radio so cheap that all other media will be unattractive. On the other hand, the "circulation" (whether in terms of population or area covered) of broadcast stations varies between wide extremes and cannot easily be related to any one or more definitely ascertainable factors. Power is a factor but its benefits may be largely nullified by undesirable frequency, poor conductivity of the soil in the area in which the station is located and interference from other stations. A 100 watt station in parts of Texas and the Dakotas may have a larger daytime coverage than a 50 kw. station in New England. Then, too, there is the very intangible element of "popularity" depending on the public fancy and the station's program service. PROGRAM SERVICE. The Communications Act contains several provisions which are related directly or indirectly to what may be broadcast. These provisions will be rapidly surveyed in the order in which they appear in the Act, before passing to a study of the Commission's activities in this field. In their treatment of candidates for public office, broadcasters are under a sort of public utility obligation to treat competing candidates impartially. A broadcaster is under no obligation to allow the use of his station by any candidate. If, however, he permits a person who is a legally qualified candidate for any public office to use his station, he must afford equal opportunities to all other such candidates for that office in the use of his station. The Commission is directed to make rules and regulations to carry this provision into effect, but has not done so since none has proved necessary. Broadcasters generally have scrupulously adhered to the requirements of the statute. Some situations have raised interesting questions as to the proper interpretation of the statute, as in the case where the party of a candidate for president is not recognized in the State where a station is located. A really difficult problem is presented by the proviso "that such licensee shall have no power of censorship over the material broadcast under the provisions of this section." The Supreme Court of Nebraska has held that, notwithstanding this provision against censorship, the broadcaster is liable for damages to a person who may be defamed in the course of a speech by a candidate broadcast under the section! If this decision is followed elsewhere, it subjects the broadcaster to a perplexing dilemma from which he should be relieved (from which he has been relieved by statute in a few states). The Act forbids the broadcasting of any obscene, indecent, or profane language. It also forbids the broadcasting of any advertisement of, or information concerning any lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance, or any list of the prizes drawn or awarded by means of any such lottery, gift enterprise, or scheme, whether said list contains any part or all of such prizes. All matter broadcast which is directly or indirectly paid for must, at the 290