Evening star., 1941-10-12

May 2, but their efectiUe date
10aS postponed pending hearings.
The proposed rules lUere strongly
opposed BY the National Broad
casting Co. and Columbia Broad
casting System, but approved in
principle BY the Mutual Broad
casting System.
The Federal Communica tions
Commission yesterday issued its
long discussed anti-monopoly rules
for the radio industry. and Colum-
bia Broadcasting System immedi-
ately announced 1t would appeal
them in the Federal courts.
Ordered to go into effect No
vember Is, they increased the Ii
cenSe period of standard broadcast
ing stations from one to two years,
but did not include the amendment
which would have forced National
BroadcaSting Co. to dispose of one
Of its two networks.
The rules ordered an end TO net
Work-statlon contracts giving net
works exclusive program and terri
torial rights in an attempt TO fos-
ter wholesome competition and pro-
vide diversity in control of the
channels of information
The commission said separate
ownership of the Red and Blue
networks of N. B. c. is 80 generally
recognized to be desirable that we
believe a separation will soon occur
without the spur Of legal man
date"
1t added any policy requiring sale
of substantial properties should be
applied with due regard for the
preservation of fair values. and the
commission wishes to avoid the
semblance Of pressure on n. B. c.
to effect forced sale"
c. B. S. to Appeal to Courts.
The commission provided that any
subsequent order placing such a
regulation in effect should provide
a period of at least six months be-
tween the announcement and the
effective date with further extern
sions if necessary to prevent a
forced sale.
c. B. S. announced in New York
it would appeal the regulations
promptly to Federal courts.
c. B. S. said the amended rules
still failed TO avert the evils in
herent" in the commissions orig
inal action and added that the
regulations forbid arrangements
between networks and stations
which are necessary to the orderly
and successful conduct of network
broadcasting in this country
William S. Palley, c. B. S. preSi-
dent, declared in statement:
There is only one possible solu-
ton for the present unfortunate
situation: A staying of the regula-
tions and the enactment of new
radio law which will definitely
delimit the powers and duties Of
the Federal Communications Com
mission and which will embody such
changes as the Congress may want
to make in the light of modern de-
velopments in the art of broad
casting"
officials of the National Broad
casting Co. said they had no
comment on the new order, and
comment from the Mutual Broad
casting System was unavailable
Immediately.
Commission Split, 4 to 2.
The commission voted 4 to 2 to
adopt the modified regulations,
Commissioners Norman S. Case and
T. A. M. Craven joining in a sharp
dissent. In the majority were Chair
man James Fly and Commissioners
Paul S. Walker, George Henry
Payne and Ray C. Wakefield. A
formal statement by Chairman Fly
accompanied the decision.
In addition to extending the Ii
censing period, and suspending the
N. B. C. separation order, the new
rules operate as follows:
Extend the contract period be-
tween stations and the chains from
one to two years.
Permit stations to option three
hours out of each of four periods
into which the broadcast day is
divided, but on a non-eXclusive basis.
Require networks to give stations
with which they have time option
contracts 56 days notice of inten-
ton to exercise the option.
Permit stations to contract with
the chains for first call on chain
programs.
They would eliminate:
EXCLUSIVELY" under which a sta
ton affiliated with one network may
not carry a program of another.
Territorial EXCLUSIVELY" under