Evening star., 1943-05-10
Chain Broadcast
Curbs Upheld by
SupremeCourt
Murphy and Roberts
Dissent in Decision
On FEC Regulations
BY J. A. FOX.

Restrictions on chain broad
casting ordered by the Federal
co m m unic tions Commits
sion were upheld by the Supreme
Court today. The regulations
had been aSsailed by the two
major chains as constituting
a death blow to Nation wide
broadcasting" and an infringe
ment on the right of free speech.
The court divided, 5 to 2, in the
case. with Justice Frankfurter read
ing the courts opinion and Justice
Murphy writing a dissent, in which
Justice Roberts joined Justices
Black and Rutledge did not par
ticipate.
Among other things, the regula-
tlons bar exclusive contracts be-
tween radio networks and affiliated
stations which curb the distribution
of programs, and restrict the grant,
ing of options by station to a net
work for broadcasting time. They
were defended by the Government
as designed Ito encourage COMPETE
ton and prevent undue concentra-
ton of control of the radio in
dustry."
Challenged in n. Y. Court.
The National Broadcasting Co.
and the Columbia Broadcasting Sys-
tenn. Joined by station affiliates,
challenged the regulations in Fed
eral District Court in New York
and, losing there. appealed. The
Mutual Broadcasting Co. sided with
the Government.
The regulations were promulgated
in May, 194l, and the effective date
had been suspended pending de-
termination of their validity in the
Supreme Court.
The commission is able to enforce
the regulations by denying licenses
to those stations which violate them.
In outlining the history of the
case, Justice FSankfurter said that
an FEC investigation had found that
eight network abuses based on the re-
StrictiOnS were amenable to correc-
ton within the power granted to
been challenged by the broadcasting
companies
1884 Act Interpreted.
Eve would be asserting our per-
Sonal views regarding the effective
utilization of radio we're we to deny
that the commission was entitled
! to find that the large public aims
Of the Communications Act of 1884
comprehend the consideration which
moved the commission in promul-
eating the chain broadcasting regu-
lations,' Justice Frankfurter said.
True enough, the act did not ex-
plicitly say that the commission
shall have power to deal with net
work practices found inimical to the
public interest. But Congress was
| acting in a field of regulation which
was both new and dynamic.
In the context of the developing
problems to which it was directed,
the act gave the commission not
| niggardly but expansive powers. 1t
was given comprehensive mandate
to encourage the larger and more
effective use of radio in the public
interest if need be by making spe-
cial regulations applicable to radio
stations engaged in chain broad
casting"
In his dissent Justice Murphy de-
clared that the court was gratui-
tously bestoWing on the FEC power
which Congress had not granted.
The commission regulations were
promulgated after an inquiry under
taken in March, 1888, to determine
| whether certain rules should be laid
down with regard to radio stations
engaged in chain broadcasting for
public interest, convenience or
necessity
Regulations Reviewed.
The resultant regulations, Justice
Frankfurter said, were intended to
deal with individual practices which
the commission deemed detrimental
to public interest.
Taking up the first of these, the
court said the commission found
| that the network affliation agree
ment of NBC and CHS customarily
| contained a provision which pre-
vented the station being licensed
from broadcasting the program of
any other network
The effect of this provision" the
court said, was to hinder the
growth of new networks, to deprive
the listening public in many areas Of
service to which they were entitled,
and to prevent station licensees
from exercising their statutory duty
of determining which programs
(See BROADCASTING, Page AID