Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-05-10
Broudcustino
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would best serve the need of the
community"
The regulation dealing with this
provides for denial OF license to
any standard broadcasting station
having a contract with a network
which prevents or ilinders another
station serving Substantially the
same area from DroadcaSting the
network programs not taken by the
former station, or which prevents or
hinders another station serving a
substantially different area from
broadcasting any program of the
network.
Two-Year Contract Upheld.
"A licensee station does not OPP
crate in the public interest when it
enters into exclusive arrangements
which prevent it from giving the
public the best service of which it is
capable, and which, by closing the
door of opportunity in the network
field, adversely affect the program
structure of the entire industry"
said the court, quoting from the re-
pC1U VI llle COlllIIllSSlOll.
Another regulation upheld limits
contractural terms to two years in
stead of five
The court also agreed with the
commission conclusion that national
network time options have re-
stricted the freedom of station
licensees and hampered their efforts
to broadcast local commercial pro-
grams, the programs of other ma
tlonal networks, and national spot
transcriptions. This was another
point the broadcastlng companies
regarded as vital.
In summing up, the court under
took to answer the broadcasting
companies contention that the reg
ulations are arbitrary and caprici-
Gus"
Contention Answered.
II this contention means that the
regulations are unWise," the court
said, that they are not likely to
succeed in accomplishing what the
commission intended, we can only
say that the appellants have selected
the wrong forum for such a plea
Our duty is at an end when we
find that the action of the commits
sion was based upon findings sup
ported by evidence, and was made
pursuant to authority granted by
Congress. 1t is not for us to say
that the public interest will be
furthered or retarded by the chain
broadcasting regulation. The re-
sponsibility belongs to Congress for
the grant of valid legislative au-
thority and to the commission for it's
exercise"
Justice Murphy in dissenting said
that the power to control network
contracts and affiliations by means
of the commissions licensing power
cannot be derived from implication
out of the standard of public con-
venience, interest or necessity" He
added that the commission is given
no supervisory control of the pro-
grams, of business management or
Of policy.
Justice Murphy said that the real
objective" of the commission lis to
regulate the business practices of
the major networks, thus bringing
within the range of its regulatory
power the chain broadcasting indus
try as a whole
by means of these regulations
and enforcement program, the COM
mission would not only extend it's
authority over business activities
which represent interests and in
vestments of very substantial
character, which has not been put
under its jurisdiction by the act,
but would greatly enlarge its control
over an institution that has now be-
come a rival of the press and pulpit
as a purveyor of news and enter
tainment and a medium of public
discussion"