Evening star., 1941-06-02
Fly Backs New F. T.,
Rules for Radio as
Senate Quiz Opens
Proposals Would ObIiee
N. B. G.. to Abandon
One of Its Networks
BY J. A. O'LEARY.

One of Its Networks
BY J. A. OLEARY.
The new chain broadcasting rules
of the Federal Communications
Commission, curbing Nationwide
networks in their contract arrange
ments with afiliated stations. were
defended by Chairman James l.. Fly
before the Senate Interstate Com
merce Committee today.
He was the first witness in a
preliminary inquiry to decide wheth-
er the committee should pass the
White resolution for a more COM
plete investigation into the question
of whether the commission exceeded
its authority in the new rules.
Among other things. the new rules
would require the N. B. G. to give
up one of it's two networks, prohibit
chain from operating more than
one station in the same area and
sharply regulate aff1liate contracts
between networks and local stations.
Mr. Fly charged there has been a
continuing Capitalization of power"
in the two major systems, N. B. C..
and Columbia.
The controversial rules were
adopted by vote Of 5-to-2 in the
F. C. c. and the White resolution
seeks to have the Senate determine
If the commission exceeded the law.
Opponents of the rules contend the
commission has undertaken super
visory control of the management of
the radio industry and programs.
When Mr.. Fly read from the law
section giving F. C. C. specific
authority to make special regula-
tions governing chain broadcasting,
Senator White interrupted to OBJ
serve:
mo one has heard from me that
the F. c. c. did not have power to
make special chain rules, but it
doesn't follow that all the rules you
make are in the public interest"
Draws Distinction.
Indications of sentiment in the
committee for general investigation
of the commission and the industry
came the moment the hearing got
under way.
Chairman Wheeler was one of the
first to say, "If we are going into it
at all, we ought to 60 into 1t gen.
orally covering both the commission
and the industry"
Apparently he drew a distinction
between a broad inquiry of the
whole field of radio operation and
a congressional review of the new
chain broadcasting rules Of May 2,
which precepitated the contro-
versey.
Senator White. Republican, of
Maine, author of the resolution ask
ing for the specific investigation of
the May 2 rules, said he, too, has
long favored general study and
recalled he had tried without sue
cess to obtain such an inquiry from
the Senate in 1887.
Senator White said it never oc-
CURED to him any one would oppose
his pending request for a review of
the May rules 80
Il was somewhat surprised and
shocked" he continued, TO find
the commission opposing it. I've
been. on this committee . long time
and this is the first time a regula-
tory body of the Governments
creature of the Congress-has chal-
lenged the wisdom of Congress in
reviewing its acts. I resent that
attitude because there is in it q sug-
gestion that the creature has at
least become as great, If not greater,
than the Congress which created it."
Chairman Wheeler broke in to say
he thought the question before the
committee today is whether the
commission exceeded its authority
in the May rules, because if it
has not, I don't think Congress,
after setting up commission, ought
to review every order it issues"
Taking the stand, Chairman Fly
stated that despite indications to
the contrary, I'm happy at the op-
portunity to come here and explore"
the facts relating to the chain
broadcasting rules.
He expressed willingness to CO.
operate in laying the commissions s
facts before the committee, but
added that, in his opinion, it lis
another question whether the judg-
ment Of the commission" should be
delayed by extended hearings and
long debate on new legislation that
might follow.
Presumably he had reference to
the provision in the White resolu-
tion calling on the commission to
delay the enforcement Of the new
rules until so days after the inter-
state Commerce Committee makes q
report to the Senate.
Defending the commissions ac-
ton in issuing the new rules, Mr..
Fly asserted the motivating force
for the study of monopolies in radio
came largely from Congress itself
and was not born in the commits
sion. He added that some of it
came from the distinguished gen.
tleman from Maine" referring to
Senator White.
Chairman Wheeler interrupted to
say his recollection was that both
the industry and the commission
opposed the investigation several
years ago.
Commission "Too Blamed Slow"
Following speeches in the House,
Chairman Wheeler said he was in
formed If the Senate did not pass
a resolution the commission would
make the inquiry.
Mr.. Fly said If there was any basis
for criticism Of the commission
procedure in the subsequent monop-
oily inquiry it is that the commits
sion was too blamed SLOW"
The commission, he said, ordered
the INQUIRY in 1888. DENYING the