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FEDERAL RADIO REGULATION— Continued
of network ownership of stations. The record evidences a definite trend toward concentration of ownership of radio stations. * * To the extent that the ownership and control of radiobroadcast stations falls into fewer and fewer hands, whether they be network organizations or other private interests, the free dissemination of ideas and information, upon which our democracy depends, is threatened."
The Report points out that, as of the end of 1939, there were 660 commercial standard broadcast stations, of which 283 were owned by 87 multiple-owners and 377 were owned by single-owners ; that the 87 multipleowners received 58% of the total business with average net time sales of $487,773, and the 377 single-owners received the remaining 42%, with average net time sales of only $82,669. These figures are further broken down into various categories, by degrees of multiple ownership and geographical subdivisions, but their significance is complicated by other important factors such as network ownership and size of market.
As earlier stated, "the ownership of more than one station by an individual or corporation" is one of the problems to which the Committee specifically directs the Commission's attention, and there is a clear implication that the problem should be dealt with under the Commission's "new licensing policy."
NEWSPAPER OWNERSHIP OF BROADCAST STATIONSLOCAL MONOPOLY. During the past year the matter of newspaper ownership of broadcast stations continued to be theoretically important but, with one exception, remained practically a dead issue. As of July 1, 1939, 246 broadcast stations were owned in whole or in part by publishers.* By January 15, 1940, the number had increased to 269 and, as of July 1, 1940, it stands at almost 300. The increases have been due in part to the granting of applications for new stations by newspaper interests, and in part to Commission approval of sales of existing stations and transfers of their licenses of control to such interests. In both cases the Commission has not deemed a hearing necessary in most instances, and in many instances the actions have been taken with record-breaking speed.
The exception above-noted revolves about the situation where Commission action would result in ownership of the sole newspaper and of the sole broadcast station by a single individual or company in a given community. There are many communities scattered over the country where this situation already obtains, due to past actions of the Commission. The issue was raised in the Allentown case, reviewed in last year's article,f in which, after considerable vacillation between opposing theories, the Commission gave its approval to the unified ownership without hearing. During the spring of 1940 the issue bobbed up again. On April 15, 1940, a majority of the Commission granted an application for a new station by a
* This figure represents an increase of somewhat over 100 during the life of the Federal Communications Commission, beginning July 11, 1934. On January 1, 1938, the number was 211, and, on January 1, 1939, it was 239.
t Variety Radio Directory, III, p. "931.
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