The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-03-08
Who Owns the Air?

In overrulng the Federal Radio commission IN the
matter Of station WGY the court OF appeals OF the
District of Columbia delivered an opinion that should
have careful consideration, for it is the beginning OF
legislation by courts as well by congress that
finally will determine who shall control the air. In
it is involved the possibility of monopoly OF the air
by private interests for private profit
Station WGY is one of the few stations that have
more than a purely commercial significance 1t be-
longs to the General Electric company, and, aside
from programs broadcast for public entertainment
has been an important research and developmenf
radio laboratory, and hence make convincing
argument in favor of being classed as serving public
convenience interest and necessity.
In appealing to the court against the ruling Of
the radio commission deprving the station OF full
time rights and dividing time with station KGO OF
Oakland Cal, the General Electric company made
two clairns-one that the commissions action would
deprive it of property rights and the other that public
convenience interest and necessity would be served
by renewal of its former fllll-tme license.
In its opinion the court recognizes the right of
congress- under the commerce clause of the constitu-
tion to provide for reasonable regulation of the
and operation of radio stations and to establish
agencies such as the Federal Radio commission. That
word reasonable however means that whatever
congress may do by way of regulation the courts are
going to have the last word to what is reasonable
real danger lies in establishment of property
right in the air On this point, reference was made
to decision by District Judge Wilkerson of Chicago
in effect that the constitution of plant AMI its
operation under license obtained prior to the act
of Feb 49, 1927 did not create property rights which
may be asserted against the regulatory power of the
United States, eff that power is properly restricted"
81 That MEANS of course, that the courts will deter
mine what is proper restriction.
While the Court referred to the investment of
s15oOOOO in station wGY. its opinion was based xpon
the unreasonablenesS of the restriction, saying:
In view of the service to the art hitherto rendered
by station WGY and still continued by it, with the
resulting advantage to the public and in view of the
public convenience interest and necessity of SO great
constituency for full-tme operation of the station
it appears that the restriction complained of is not
reasonable and should not be enforced"
In this particular case there will be little COM
plant by the public, because of the Importance of
WGY. The radio commission probably will claim
that it chaos in the air. But the industry is
that both congress and the courts should legs
late carefully to guard against monopoly of the air
controlled by private interests.
It is easy enough to allocate channels to corpora
tons operating stations but once property
rights established and the courts have established
reasonable restrictions in manner satisfactory to
those who seek control of the industry and the air.
established stations will have great money value
and gradually will be gathered into the hands of one
big corporation.
1t is interesting to note that the General Electric
company also station KGO, hence the battle in
the courts was between friendly enemies
the air is to remain under public control con-
gress must do all in its power to keep regulation of
the radio out of the hands of the courts