Evening star., 1941-05-05
Regulating Radio

NSSuiutiIS NuuIV
Serious legal issues, as we'll as
questions affecting sound business
practice, are raised by the new radio
regulations which have been ap-
proved by the Federal Communica-
tions Commission.
In promulgating the new rules, five
members of the commission, with
two dissenting, assert what is in
effect an almost unlimited authority
to regulate the radio industry. But
the Federal Communications Act,
from which the commission derives
its powers, contains no specific au-
thority for doing any OF the things
which the commission seeks to &C
compliSh throughs the issuance of
the regulations. Some color of iusti-
fication may be found in the So
called public interest" clause of the
act, but if, under the vague authori-
cation, the commission, by bringing
its licensing powers into play, can
impose its will on the radio industry
to the extent envisioned<by the new
rules, then it would seem that 1t Is
subject to no real restraint under
the statute.
If the commission, for example,
can forbid the making of radio con-
tracts for more than one year on the
assumption that this is in the public
interest, and can enforce this decree
by refusing to issue licenses to nom
complying stations, where does it's
power end? Taking an extreme
hypothetical situation for purposes
of illustration, what is there to pre-
vent a majority of the commission
from concluding that it is in the pub
lie interest to ban political speeches
from the air and enforcing a regula-
ton to that end by the threat to
withhold licenses?
From the standpoint of sound
business practice, the new rules also
seem to be of dubious validity, al
though this is a matter concerning
which hasty judgments are apt to be
worthless But, having due regard
for this consideration, there seems
to be no doubt that the commissions
action is designed to replace a syS-
tenn of national broadcasting which
has given good service with vaguely
defined new Setup which may or may
not prove more desirable. The COM
mission obviously is motivated by the
belief that greater competition in the
radio industry is to be desired, but
it may be wondered whether it has
given adequate consideration to the
possibly destructive effects of the
kind of competitive activities which
would be fostered by the new regula-
tionS.
If the present system is broken
down, what assurance is there that
the good programs will not gravitate
to the better stations to the obvious
disadvantage of their smaller COM
petitors? If a broadened field of
competition is it's objective, how does
the commission propose to insure
that the less desirable stations, from
an advertising standpoint, will get
enough business to keep going? And,
having the public interest in mind,
what is to happen to the excellent
sustaining programs which have been
built up under the existing system?
These, with other questions raised
by the new regulations, 60 to the
very heart of the discussion which
has revolved around the proper func-
ton of administrative agencies. De-
cisions of the present majority of the
Supreme Court on the whole have
tended to widen the field and broaden
the powers Of these agencies, and If
it is shown that the resultant extern
sion of their activities is more harm
full than beneficial, 1t seems obvious
that the remedy lies with the Con-
gress, which created them.