Evening star., 1939-11-20
F. {. {. Decision Hits
Chain Broadcasfino,
MayRevise Radio Map
Precedent-Moking
Ruling Allowing Local
Station Also Reveals Split
BY WILLIAM ]. WHEATLEY.

An attack on chain broadcaSting
through precedent-making de-
cision of the Federal Communica-
tions Commission has brought into
the open definite split within that
body over matters of policy, which,
1t is held, may necessitate a COM
plete realignment of the broadcast
ALLEGATION map under the present
law.
The commission, by 4-to-2 de-
cision, one commissioner not par
tlcipating, allowed new local sta
ton in Denver, Colo, among other
reasons, because the existing four
stations, all affiliated with chains,
"do not devote the most effective
hours of radio time to programs of
. local character"
The decision was believed by some
familiar with the trend to indicate
the kind of recommendations that
may be expected on use of evening
hours by chains when the Monopoly
Committee makes its report to the
commission within the next few
months.
The split does not indicate dis
sension. The commission is reported
TO be conducting its closed meet
ings harmoniously but it does indi-
cate wide difference of opinion
on the ALLEGATION of radio facilities.
The Denver case, which resulted in
the development of the new policy,
was that of F. W. Meyer, whose ap-
plication was turned down last May
by a unanimous vote, with the then
chairman. Frank R. McNinch. not
participating
The commission at that time found
that the network affiliated stations
devoted a considerable portion of
their time to programs of a local
nature. 1t also held that the fact
that there are number of business
firms which could not afford to pay
the rates of the existing stations and
would use the facilities of the new
stations would not justify the grant
Ing OF the increased facilities.
Changed Viewpoint.
In its later decision granting the
application on a motion for a re-
hearing, the commission found that
the chain afflliates do not devote
the most effective hours of radio
time to programs of a local char
acter"
This time the commission pointed
out that the facts showed that
number of business firms, unable
to pay the rates of the existing sta
tions for advertising, would buv
time over the projected station at
the lower rates proposed This, the
commission said, tended to show that
financial backing for the proposed
station was not lacking.
In the earlier decision, Commits
sioners Norman S. Case, T. A. M.
Craven, Paul Walker, Frederick I,
Thompson, Thad H. Brown and
George Henry Payne voted unani-
mously. Since that time Chairman
James Lawrence Fly has joined the
commission, and with Commissioners
Payne, Thompson and Walker de-
clded to reverse the earlier action.
commissioner Brown did not par
tlclpate, but Commissioners Case
and Craven dissented, although they
did not write formal dissenting opin-
ions.
This later opinion reflects the
growing belief in certain sections of
the commission that stations af-
flllated with chains are not pro-
vlding facilities for service of their
communities. There is even the con-
tentlon that with the exclusive con-
tracts between the chains and the
stations that the latter have by in
direction assigned their licenses to
the chain broadcasting companies.
although they were originally
granted for the specific purpose of
serving their respective areas.
The Other Side.
On the other hand, it is contended
that the precedent of providing
another local station license because
the others are under chain con-
tracts means a gradual expansion
lending toward the chaos that
brought adoption of the original
radio act. 1t was asserted, to carry
out the picture further, when a
local facility is granted to provide
outlets not provided by the chain
stations, then if the local outlet in
turn becomes affiliated with a chain.
still another local facility must be
authorized.
Others see in this as a precedent
q gradual lowering of program quail
ity, pointing out that as the radio
income is spread out there will be
less and less to spend for the tvpe
OF programs being broadcast bv the
chains. In the case of the proposed
Denver station the applicant pro-
poses to use two-thirds of his 1O1
hours week for transcriptions.
The District and nearby Arlington
even now face the possibility of
coming within the new ruling. There
are four stations here now, all
affiliated with chains. There are
pending before the commission two
applications, one for a new local
station in Arlington County and
another for a new local station here,
both of which are seeking author
1ty to provide stations for strictly
local programs.