Evening star., 1942-02-22
Radio NefworksLose
Suit 10 Halt Ban on
Chain broadcastinq
Three-Judee Court
Divided on Jurisdiction
To Pass on F.C.C. Rule
By the Associated Press.

NEW YORK, Feb. 21.-A three
judge Federal Statutory Court, in
an opinion filed in Federal Court
today, dismissed actions brought by
the National Broadcasting Co., Inc,
and the Columbia Broadcasting Sys-
tenn, Inc, to enjoin the Federal Com
munications Commission from en-
forcing its regulations restricting
chain broadcasting.
The complaints were dismissed "for
lack of jurisdiction
Relief sought under section 402 of
the Communications Act of 1884,
the court suggested, is by appeal to
the Court of Appeals of the District
of Columbia, and is to be heard
upon the record made at the hear
ing of the application by the COM
mission.
The opinion was written by United
States Circuit Court of Appeals
Judge Learned Hand, with Federal
Judge Henry w. Goddard concur
ring, and Federal Judge John Bright
dissenting.
Regulations Opposed.
The actions were brought by the
networks to enjoin and set aside
regulations originally made by the
commission on May 2, 1941. amended
October IL, and further added to on
october 81, l941.
The dismisSals were on motions of
the Government and the Communi-
cations Commission.
Herbert Akerberg, c. B. S. vice
president in charge of station rela-
tions. Immediately notified the net
works affiliated stations that I'VE
will take an appeal to the Supreme
Court of the United States"
He advised the stations that the
decision dealt only with the juris-
diction of the court in this pro-
ceeding and that the court passed
no judgment whatsoever on the
merits of the case. A vigorous dis
senting opinion was delivered by
Judge Bright"
The F. c. c. orders would bar ex-
clusively in network affiliate station
| contracts and would prohibit N B
! G. from owning two networks. N. B
G. recently sold its Blue Network
retaining the Red Network.
Joined as plaintiffs in the N. B. C
action were the Woodmen of the
World Life Insurance Society of Ne
braska, and the Stromberg- Carlson
Telephone Manufacturing Co. The
Mutual Broadcasting System, Inc
intervened in the suit, as it did ir
the C. B. S. action.
The opinion declared that the
commissions orders were mo more
than the declarations Of the condi-
tions upon which the commission
will in the future issue licenses tc
stations"
| Announcement of Policy.
The Government and the commits
sion asked for the dismissal on the
ground that the regulations were not
orders" within a statute meaning
and that therefore the court was
without jurisdiction.
The commission further pointed
out, according to the opinion, that
it had not issued orders" but merely
announcements of the course il
would take on application by afil-
late stations for new licenses or fol
renewals.
The networks, however, held that
the regulations had an immediate
effect upon them: that the COM
mission had "adjudicated the in
validity" of the contracts between
the networks and their affiliates, and
that the networks already had sus-
tained serious losses because num-
Der of affiliates had said they would
be obliged to break their contracts
A further contention was that the
networks would find it impossible to
accept large and valuable advertis-
ing contracts.
The prevailing opinion pointed
out that the court was not making
any findings of facts" on the in
junction applications of the net
works, emphasizing that the court
was not refusing" any injunction
Once the complaints are dismissed
for lack of jurisdiction, the opinion
stated, the motions become moot
land we shall not pass upon them
at all"
Threat by Commission.
eve have seen, however, that the
regulations are nothing more than
declaration-or if one choose, a
threat-by the commission that il
will enforce these conditions upon
any renewal of license in the
future" the opinion stated.
mo change is made in the status
of the 'afiliates' meanwhile; their
existing contracts with the net
works remain enforceable; nor has
the commission given any evidence
of an intention to use them as the
basis for a revocation of existing