Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-17
PLAN TO CURB SALE
OF RADIO LICENSES
Federal Commission to Give
Close Attention to Future
Transfers of Ownership.

campaign against traficking in
licenses of broadcasting stations has
been begun by the Federal Radio Com
mission.
With stations originally licensed for
educational or altruistic purposes rap
idly being converted to commercial pur-
suits, the commission has decided to
give close attention to future proposals
for transfers of ownership Radio IL
cenSes are valuable, but the commission
wishes to make clear that a franchise
to the ether cannot be bought for money
but must be warranted in the public
interest"
Consequently, all requests for assign
nnent Of station licenses are being closely
scrutinized by the commissions legal
division. This new system has a three
fold purpose. The first is to ascertain
the financial responsibility of the pro-
posed new operator of a particular sta
ton, and the second to determine his
standing in the community, and the
necessity, If any, of continuing the
station.
Sees Congestion Relief.
But the commission sees in this de-
luge of applications for ownership
change a possible means of relieving
some of the congestion in the damned
broadcast band by eliminating stations
altogether. That is the third and prin-
cipal reason for the new campaign.
so many applications for change Of
ownership of stations have been filed
recently that it appears tratficking in
radio licenses is a new form of specu-
lation developing in this country" the
commission announces.
These applications for the most part
are from stations which originally were
assigned licenses for short period
broadcasts daily. for schools, churches
and the link. They seek assignment of
their licenses to commercial corpora
tions, and in practically every instance
are accompanied by requests for more
time on the air, increased power or i'm
proved wave lengths. A few stations
licensed to conduct charitable and al
trusistic work have been commercialized
and now are insisting on more time 10
take care of advertisers of commercial
programs, it is shown in commission
records.
To Determine Necessity.
Hereafter, under the new procedure,
before any applications for transfer of
licenses are authorized the commission
must determine that "a real necessity"
for a commercial station exists in the
particular community. And it is not
unlikely that the commission will find
in many of the cases that it will be
advisable to cancel licenses, rather than
grant the requests for transfers and in
creased facilities.
1T would be fine patriotic service
for these licensees to retire voluntarily
from the field if there is no longer any
need of radio in their service, thus aid
ing the commission in relieving some Of
the congestion in the air. it suggests
but admittedly with no hope that 1t will
be taken seriously by any licensed sta
ton.
The radio act provides that no sta
ton license shall be transferred or as
signed, either voluntarily or involun-
tariiy. without the consent in writing
of the commission. Heretofore, how
ever, such transfers have been virtu-
ally automatic But the commission
now is in a serious mood about ether
conditions.
(Copyright, 1880. by the Consolidated Press)