Evening star., 1939-03-15
Radio Hearing Is Hit
As Step 10 Revision
OF Basic Principles
Commissioner Craven Asks
IF. c. c. Is Challenging
Newspaper Ownership
BY WILLIAM ]. WHEATLEY.

BY WILLIAM ]. WHEATLEY.
An order of the Federal Commu-
nications Commission for a hearing
on application for merger of two
radio broadcast stations at Allen
town, Pa. is interpreted by Com
missioner T. A. M. Craven, who with
Commissioner Norman o. Case,
voted against the order, as designed
to establish commission policy on
newspaper owned or controlled sta
tions.
One of the Allentown stations is
owned by company. subsidiary to
q newspaper. The merged station
would be controlled by the news
paper.
Commissioner Craven has filed a
lengthy report with the commission
giving the reasons for his opposi-
ton to the hearings. The applica-
ton for merger is of the sort, which,
under the commissions recent prac-
tice, would be granted without a
hearing, he says.
McNinch Sees No Objection.
Chairman Frank r. McNinch of
the F. F. c. said he planned to issue
no statement on this case. His only
comment was:
What objection can there be to
allowing the people directly affected
by proposed local monopoly of
communications to say what they
want in an open hearing? All the
commission has done is to set this
case for hearing at Allentown"
"If these applications are to be
set for hearing on this issue" Com
missioner Craven said in his state
ment, "it can only be because a ma
jority of the commission have al
ready adopted in their own minds
or contemplate adopting as a result
Of these proceedings, a principle
that ownership of broadcast stations
by newspaper publishers, or by GER
tain kinds or classes thereof, is con-
trary to public interest, convenience
and necessity, and justifies or re-
quires the denial of any application
involving such ownership.
The adoption of such a policy
represents radical change in
policy which has been uniformly and
consistently followed by the Gov
ernment of the United States since
the earliest days of broadcasting.
Prominent among those who
pioneered in broadcasting in 1921
and 1922 were newspaper publishers,
and, as group, second perhaps only
to manufacturers of electrical equip
ment. they have contributed ever
since to the establishment and ad-
vance of our broadcasting system"
Policy Must Be Uniform.
Commissioner Craven told his as
sociates that under the Communi-
cations Act the commissions action
on application for renewal of licenses
shall be limited to, and be gov
erned by. the same considerations
and practice which affect the grant,
ing of the original applications"
ManifeStly, he added, if the COM
mission is to adopt principle by
which newspaper ownership becomes
a disqualification for license it must
be prepared to extend it to all cases,
existing and future. He said that
1t must be prepared to refuse to
renew the licenses of some 240
broadcast stations and to destroy
or hand over to others the invest
ments which their owners have in
those stations.
In the most vigorous manner
at my command" Commissioner
Craven told the commission, Il de-
sire to record my vote against the
adoption TO such policy and to
state my reasons for SO voting. In
my opinion Cd The Commission has
no power under the Communications
Act of 1894 to adopt such a policy;
(2) even assuming that the COM
mission has discretion in the matter,
such policy would be contrary to
public interest, convenience and
necessity; 90 hearing on par
ticular applications is not a proper
or fair method of determining
whether such policy would be
adopted"
Mr.. Craven said that when Con-
gress desired to bar any class of
persons from eligibility to license,
placed in the law. There is moth
ing in the law concerning newspaper
ownership, he said. He also pointed
out that at the time the legislation
was under consideration there were
a substantial number of stations
owned and operated by newspapers.
Based on 18 Years Experience.
THE question directly affects some
240 licensees of existing stations
scattered over the length and
breadth of this country" Commis-
sioner Craven said 1T involves
evidence to be drawn from some
18 years of experience with news
paper-owned stations. from prac-
tically every State in the Union,
and from wide variety of witnesses.
1t involves considerations drawn
from the regulation of other indus
tries, and of complicated social and
economic factors. The parties af-
fected are entitled to notice that
the commission contemplates so i'm
portant change in principle and
to adequate opportunity to be heard
1t might develop-although I
doubt it-that newspaper publishers