Evening star., 1934-05-16

WIRE CONTROL BILL
PASSED BY SENATE
New Board Would Regulate
Communications Sys-
TENS in u. S.

With only five hours debate, the
Senate late yesterday passed the bill
creating a five-man, bipartisan COM
mission, with power to regulate tele-
phone, telegraph, radio and cable
communications systems.
Only a voice vote was required to
approve the measure and send 1t To
the House
Conforming to the general recon-
mendations Of President Roosevelt,
the bill transfers to the new commits
sion all existing powers OF the Federal
Radio Commission over radio and the
Interstate Commerce Commission over
the telephone and telegraph busi-
nesses. including authority to license
and allocate broadcasting facilities
and to control rates charged by the
other services.
New Power Granted.
mendations in some respects as to
the granting Of new power, but Sem
ator Dill, Democrat, of Washington,
whose name appears on the bill,
thought it would be acceptable
1t also contains provisions which
are lacking in the Rayburn bill pend
ing in the House Commerce Com
mittee.
The Senate bill authorizes the new
Communications Commission to in
vestigate contractual relations be-
tween parent, subsidiary and afflli-
ated companies engaged in the tele-
phone. telegraph or cable business,
and report back to the next Congress
whether additional legislation should
be enacted to regulate such contracts
Senator Dill explained to the
Senate yesterday that when the bill
was originally introduced, it gave
the commission control over what are
known as "inter-service contracts"
between parent and subsidiary COM
panies. Since this was an entirely
new power, the committee In charge
Of the bill struck out the grant of
definite power and substituted auth
ority for the commission to examine
into the question of inter-service con-
tracts and advise the next Congress
whether power to modify such con-
tracts should be granted The Senate
debate yesterday indicated the pro-
posed inquiry would take in such
contractual relations as those exist
ing between the American Telephone
and Telegraph Co., various local tele-
phone companies and the Western
Electric Co.
Leased Wires Report.
The commission also would report
to the next Congress as to whether
legislation is needed to control leased
lines.
The bill also calls for:
Legislation to control leased wires.
ALLEGATION of fixed percentage of
broadcasting facilities for education.
religion, fraternal. labor, charitable
and other non-proflt programs.
Permitting State regulation Of sys-
citation charges.
Present Unit Abolished.
The present Radio Commission
would be abolished and members Of
the new commission would be ap-
pointed by the President for six-year
terms at an annual salary of $4,000
Under amendments adopted on the
floor, the commission would appoint
a general counsel and chief engineer
at $4,000 salary and a secretary at
not more than $500.
The commission would be divided
into two divisions-one to control
radio and the other to supervise tele-
phone and telegraph. The chairman.
to be designated by the President,
would be member Of both divisions,
but decisions Of each division would
stand as the action of the commits
sion and would not be subject to re-
view by the whole commission itself
An amendment by Senator Clark,
Democrat, Of Missouri exempting
from Federal regulation telephone
and telegraph companies doing only
an intro-State business, even though
having long distance connections, was
approved. Clark said 200 companies,
including home and farmer lines. in
his State were in this category.
Dill also obtained approval of an
amendment directing the commission
in awarding licenses to see to it that
no individual or group Of licenses
or dominated the broad
casting facilities of any community,
city, State or over the country as a
whole.