Evening star. [volume] (Washington, D.C.) 1854-1972, 1942-12-14
High Court 10 Review
Appeal From Curb on
Chain Broadcasts
FEC Upheld in Citing
Need for More Regional
And Local Service
BY the Associated Press.

BY the Associated Press.
The Supreme Court agreed today
to review decision which dis
missed suits by the National Broad
casting Co., Inc, and the Columbia
Broadcasting System, Inc. seeking
to enjoin the Federal Communica-
tons Commission from enforcing
restrictions on chain broadcasting.
A three-judge Federal court at
New York held that the commits
Sion's action was authorized by the
Federal Communications Act. En-
forcement of the order was stayed
temporarily, however, until Febru-
airy l to permit an appeal to the
Supreme Court.
Charles E. Hughes, jr, son of the
retired Chief Justice, and John
T. Cahill, New York attorneys for
the companies, have commended that
the FEC regulations barring ex-
elusive contracts with affiliated sta
tons had caused the networks
drastic damage"
Local Needs Stressed.
The commission said the regula-
tons were based on the belief that
"broadcasting stations would be
reasonably available for programs
OF local and regional, as we'll as
national interest" and that COM
munities should. as far as practic-
able, have available service from
more than one or all networks"
Joining the Supreme Court appeal
were the Woodmen of the World
Life Insurance Society, which owns
and operates station WOW ir
Omaha, and the Stromberg- Carlson
Telephone Manufacturing Co.
which owns and operates station
WHAM in Rochester, N. Y.
The Mutual Broadcasting System
Inc, interviewed in the litigation or
the side of the FEC.
Henderson Upheld.
| In another action, the court re-
fused to review the first decision
delivered by the United States
Emergency Court of Appeals, which
was in favor of Price Administrator
Leon Henderson.
The Court of Appeals held that
provisions of the 1912 Emergency
Price Control Act authorizing a
judicial review of protests against
price schedules did not apply to a
transaction completed prior to the
effective date of the act and gov
erned by a price schedule issued by
Mr. Henderson under an executive
order.
Dismissal of a protest by the Gal
ban Lobo Co., S. A. of Cuba was
ordered by the Emergency Court of
Appeals, set up under the Price Con-
troll Act to hear complaints.
Validity OF contempt of court con-
victions Of Thomas j. Pendergast,
former Democratic political leader
Of Kansas City, and two others was
at issue. meanwhile, in arguments
before the court.
The three were convicted in con-
nection with Missouri's $4,000 900
fire insurance settlement. The
ooAASAo WSiC AIOUClU " MIL
ley, former Missouri superintendent
OF insurance, and A. L. Mccormack,
st. Louis insurance agent.
The Justice Department asserted
in brief filed before the tribunal
that the contempt consisted In
fradulently foisting' on the Federal
District Court at Kansas City "a
corrupt settlement of insurance rate
litigation, procured through bribery
of the Missouri superintendent of
insurance"
Validity Challenged.
Validity Of the contempt convic-
lions was challenged on the ground
that the alleged activities did not
take place "in the presence of the
court or so near thereto as to OBJ
struct the administration Of JUS
tice."
1t also was commended that the
United States attorney had agreed
not to prosecute contempt charges
against Pendergast and O'Malley if
they pleaded guilty to income tax
evasion for alleged failure to report
the receipt of money from Street.
They said they pleaded guilty and
served sentence.