Document: 381 U.S. 279 85 S.Ct. 1459 14 L.Ed.2d 383 FEDERAL COMMUNICATIONS COMMISSION, Petitioner,v.Taft B. SCHREIBER et al. No. 482. Argued April 27, 1965. Decided May 24, [Syllabus from pages 279-280 intentionally omitted] John W. Douglas, Washington, D.C., for petitioner. Allen E. Susman, Beverly Hills, Cal., respondents. Mr. Chief Justice WARREN delivered the opinion of Court. 1 At issue in this case are extent Federal Communications Commission's authority to promulgate procedural standards determining whether testimony taken and documents produced during an investigatory proceeding should be accorded confidential treatment, scope judicial review determinations made pursuant such standards. 2 This had its origin a subpoena various orders issued course conducted by Commission § 403 Act 1934, as amended, 48 Stat. 1094, 47 U.S.C. (1958 ed.).1 The proceeding, financed specific congressional appropriation,2 was initiated on February 26, 1959, objective gathering 3 'comprehensive information concerning respective roles played networks, advertisers, agencies, talent, film producers distributors, other major elements television industry.'3 4 As initial step investigation, ordered that 5 'inquiry determine policies practices pursued networks others acquisition, ownership, production, distribution, selection, sale licensing programs exhibition, reasons necessity public interest said * *.'4 6 authorized chief hearing examiner conduct investigation. He empowered, inter alia, witnesses, compel their attendance, require production any records or deemed relevant inquiry.5 7 'said shall except presiding officer may order non-public sessions where interest, proper dispatch business ends justice will served thereby.'6 8 In October 1960, were held Los Angeles, California, at which time evidence received functions, companies, talent agencies representatives, program 'packagers,'7 sales others. On 17, Presiding Officer duces tecum respondent Schreiber, Vice President Music Corporation America, Inc. (MCA)—one largest packagers network programs,8 directing him appear produce certain described annexes subpoena. Respondent Schreiber appeared material specified Annex A.9 refused, however, submit without qualification called B,10 included list packaged MCA. stated he would subpoenaed materials only 'if take assure us it confidence, not published, available people, than those Commission, serve Commission.' grounds asserted sought might disclose trade secrets data, outside hearing. also objected generally procedures governing ground they 'public disclosure data my company aid many competitors highly competitive industry.' found 'no doubt' relevance rejected, 'without merit,' claim confidence. 9 Respondents then petitioned review. January 25, 1961, affirmed respondents appear, testify reconvened stressed importance publicizing gathered investigation11 reaffirmed resolve permit camera extraordinary situations: 10 '(W)e determined proceedings rule herein, used instances irreparably damage private, interests could outweigh paramount full disclosure.' 11 noted counsel 'every effort avoid detailed internal financial contractual arrangements fact harm private sufficient compensating benefit public,' departed standard rejecting respondents' likely which, held, was, 'totally unsupported pleadings contrary record.' Accordingly, 'to regarding all matters Officer,' required 'such directed Officer.' remand, broader confidentiality They requested documentary elicited them nonpublic sessions, disclosed if court, subsequent litigation, authorize disclosure. contention rejected Officer, but persisted his refusal comply with orders.12 12 thereupon United States District Court Southern California enforcement orders. investigation statutorily authorized, B inquiry, disobeyed valid subpoena.13 However, protect 'respondents' rights preclude advantage,' given confidence.14 court's further provided that, after been completed, move court order, 'should good cause exist therefor,' permitting public. 201 F.Supp. 421. 13 appeal, divided Appeals Ninth Circuit portion Court's pertains questions now before Court.15 abused discretion conditioning treatment sought. 329 F.2d 517. dissent, Judge Browning rule, requiring hearings unless justified whom sought, well within power. It Browning's view application consequent accord arbitrary abuse discretion. Id., 528 534. Because presents important performed federal courts administration we granted certiorari. 379 927, 325, 340. We hold rule—requiring proponents request have demonstrated business, sessions—was statutory authority. find did applying rule. modify decision below insofar affirms imposition conditions upon Commission. I. 15 Section 4(j) 1068, 154(j) ed.), empowers 'conduct manner best conduce justice.' has interpreted provision 'explicitly implication' delegating power 'subordinate procedure (such as) applications heard contemporaneously successively, parties allowed intervene one another's proceedings, similar questions.' Comm'n v. Potsville Broadcasting Co., 309 134, 138, 60 437, 439, 84 L.Ed. 656. statute does merely confer rules applicable cf. WJR, Goodwill Station 337 265, 282, 69 1097, 1106, 93 1353; delegates broad prescribe investigations, Norwegian Nitrogen Products Co. States, 288 294, 321—322, 53 350, 360—361, 77 796, make ad hoc rulings instances, Pottsville supra. Congress 'left largely judgment determination conducting most fairly reasonably accommodate' justice. Station, supra.16 16 case, stressed, upholding delegation authority, established principle administrative free fashion own pursue methods inquiry capable discharge multitudinous duties.' U.s., 143, S.Ct., 441. principle, upheld variety applications,17 is outgrowth administrators familiar industries regulate better position itself design adapted peculiarities industry tasks agency involved. Thus, underlying rule-making 'recognition rapidly fluctuating factors characteristic evolution broadcasting corresponding requirement process possess flexibility adjust these factors.' supra, 439. 17 To district establish de novo would, course, render nugatory Congress' insure designed regulatory problems providing rule-making, empowered substitute agency. Instead, limited responsibility insuring consistency statutes demands Constitution. Oklahoma Press Pub. Walling, 327 186, 214—218, 66 494, 508—510; U.S., 144—145, 442; Radio Nelson Bros. 289 266, 276—277, 627, 632, 1166. 18 apparent respect distribution promulgated Yet, neither nor inquired into validity exercise rulemaking devised followed basis conception how involved served. reviewing determination, discretion, 'but, contrary, fair just whereby proceed being unduly disrupted, obstructed prolonged, same afford (respondents) protection against improvident possible valuable secrets.' F.2d, 524. so doing, erred. question permissible limits, Judge's substituted reasonable. 19 evident shown Grants comparable information,18 receipt confidence,19 balancing That enough empower publicly 350. There, pointed out grant authority—s 315(c) Tariff 1922, 42 941, 942—943—which authorizes adopt reasonable procedure, rules, regulations deem necessary,' 20 shape limits promptings policy fairness. kept even though refrained publication anything, either agents witnesses. public, exposed everything when result hardship injustice.' 360—361. 21 delegated power, exercised arbitrarily, impeached because minds differ wisdom thereof. 215—218, Isbrandtsen-Moller 300 139, 146, 57 407, 411; apparent, present rule' exceptions 'only disclosure' establishing presumption favor accords general favoring proceedings.20 Moreover, advanced support norm place burden justifying amply demonstrate powers successfully attacked capricious. investigative secure functions. subject matter 'complex unknown' involving 'manysided transaction(s)' among 'networks, advertising producers, packagers, agencies' Therefore, determined, obtain rounded picture transactions, desirable facts, information, supplied group individual known groups individuals involved, verify, refute, explain, amplify supplement record diverse points view.' observed addition stimulating flow inform segments primarily affected agency's legislative action factual ultimately taken—a practical inducement acceptance results investigation.21 Also implicit discourse recognition publicity tends stimulate preferences significantly influence views character prospective action. necessary execution duty under 4(k) 1068 154(k) annual reports Congress. Significantly, specifically 'draw facts obtained.'22 22 hold, therefore, adoption placing demonstrating need authorized. II. 23 Remaining rejection requests unreasonable warrant orders.23 24 Upon remand moved them—not B—should camera. light announced 'regarding relevant' MCA activities,' disclosure, demanded, necessarily include secrets. No showing made; there argument. 25 accepted argument, finding 'well-grounded (the) fears trade-secrets, advantage.' F.Supp., 425. adduced doing rerred, clear blanket nondisclosure. 26 know what actually asked. Indeed, speculate seek elicit MCA's competitors, work harm. ascertain likelihood irreparable interests, discern outweighed If demanded injure competitively, ample opportunity denied. Cf. Reisman Caplin, 375 440, 508, 459. denying no disclosed. affords justification proposition. 27 assumption consistently compelled secrecy. There runs entitled—that act properly according law. 28 Nor can saved direct deferred entitled until completed. directs orders, therefor.' Not seem shift proof justify publication, despite permits submitting 'long settled relief supposed threatened injury prescribed remedy exhausted.' Myers Bethlehem Shipbuilding Corp., 303 41, 50—51, 58 459, 463, 82 638; forbids completion secrecy justified. During period Congress, denied stimulated And benefits inevitably lond. first 21, resolution issues raised caused delay more four one-half years. 29 do forceful discriminatory allegations finds little record; moreover, reference factor findings fact. Respondents' assertions 'the deep' 'concentration unique,' true, lend credence unchallenged industry, failure explore fully 'would seriously impair, nugatory, attempt part understand delineate policies, activities creation, filmed programs.' Furthermore, adequately protected imprevident unfairly competitively disastrous exist, overreaching remains future. 30 conclude, nondisclosure accordingly erred ordering 31 'packager' interest. testified relationships clients, 'might detrimentally,' possibly advantageous our competitors.' 32 affirmance Officer's session clearly proper. Certainly agreements between clients client's consent affect duties. See Wigmore, Evidence 2286 (McNaughton rev. 1961). naked assertion declining treatment. nothing opinion, conclusions law indicates likelihood, possibility, information. engaged businesses furnished type objection. distinguish (subpoenaed A) introduced objection Schreiber. file affidavits position. But, conceded some impact, concluding sustained 33 One point discussed. oral argument suggested prejudiced efforts contained restrictions imposed participation then-prevailing rules.24 persuasive. filed petition, prepared signed counsel, seeking request. Subsequently, second motion afforded argue orally motion. then-existing restricting prejudice regard B,25 hence occasion additional objections 34 iis modified strike paragraph remanded directions enforce qualification. 35 ordered. 36 Judgment directions. provides: 'The institute motion, thing complaint made, Act, arise provisions relating Act. instituted appealed petition including had, excepting payment money.' Independent Offices Appropriations 1956, 199, 201—202. Statement Chairman McConnaughey; Hearings Subcommittee Senate Committee, 84th Cong., 1st Sess., p. 293. McConnaughey '(o)nly affecting expansion outlets identified evaluated, appropriate recommendations solution.' 294. House pp. 663—664. purpose set forth Feb. 1959. Fed.Reg. 1605. Nov. 10, entered supplemental '(t)hat Order 1959 (FCC 59 166), hereby amended enlarged practices, mechanics surveillance carried station licensees connection radio exhibition presentation supervision broadcast *.' 9275, 9276. (1) complete Act; (2) 'what, any, regulations, legislation actions with' programming; (3) lies granting construction permits, licenses, modifications renewals; (4) enable report relation regulation broadcasting. 1605, 9275. Ibid. 'Packagers' develop assemble scripts particular programs. A 'producer' charge preparing package showing. was: 'that MCA, Inc., (a) represents large share both acting creative, (b) produces programs; (c) packages and/or sells (d) maintains leases facilities engages, scale, facets production. date establishes programming R. 16. '(A) name title series programs, special otherwise, exhibited through facilties operated NBC, CBS, ABC since September 1, 1958, Revue Productions, proprietary receive percentage profits compensation fees remuneration representation agent natural persons talent.' '(B) ABC, predecessor affiliate subsidiary acted packager and/or, agreement cost selling price compensation, packaging, program, otherwise post, 293—294. although dealing merits evidence, interlocutory nature, themselves 'aggrieve' person, not, right, appealable holding precluded order. challenge findings. Paragraph 'It Further Ordered interrogation session, excluded therefrom, maintained confidence duly served, conclusion therefor, retain right oppose made.' Under witness client, exception to, clarification of, object question, initiate consultation client. Counsel consult client approved Officer. 6(a) Administrative Procedure 240, assistance following respects: state interference agents. disagreed, violative constitutional provisions. Sept. 2, 1964, Part I Rules Regulations, person advise initiative record, briefly objections.' 12774 12775. Finding amendment 'in legal matter,' ruling below. Given change express legality prior witness' counsel. similarly broad. 1.1 General Practice provides 'be proceeding.' CFR (1965). Civil Aeronautics Board Hermann, 353 322, 804, 852; 90 614; Wallace Corp. National Labor Relations Board, 323 248, 65 238, 89 216; Endicott Johnson Perkins, 317 501, 63 339, 87 424; Utah Fuel Bituminous Coal Comm'n, 306 56, 409, 83 483; 81 562; American Sumatra Tobacco Securities & Exchange 71 App.D.C. 259, 110 117 (1940); Griffiths Hughes, Trade 61 386, 362 (1933). 3(c) 1002(c) 'Save statute, official accordance published directly concerned found.' apply 'formal Attorney General's Manual (1947). construing 3(c), Columbia stated: 'Of open places plaintiffs show confidence.' Graber Mfg. Dixon, 223 1020, 1022 (D.C.D.C.1963). Davis, Law 8.09 (1958). Rourke, Enforcement Through Publicity, U.Chi.L.Rev. 225 (1957); Note, 72 Yale L.J. 1227 (1963). Senator Magnuson, 101 Cong.Rec. 7629. contend denial abridgment right. note 15, addition, effect prepare written documents.

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