Document: 338 U.S. 586 70 S.Ct. 370 94 L.Ed. 363 REGENTS OF UNIVERSITY SYSTEM GEORGIAv.CARROLL et al. No. 83. Argued Dec. 9, 1949. Decided Feb. 6, 1950. Mr. Hamilton Lokey, Atlanta, Ga., for petitioner. James A. Branch, respondents. Max Goldman, Washington, D.C., the Federal Communications Commission, as amicus curiae, by Special leave of Court. Justice REED delivered opinion 1 The Commission renewed a radio license only after applicant, Board Regents, carried out required repudiation contract with other persons, respondents here. had determined that unless were given 'no further effect' renewal would not in public interest. This was based on findings seriously jeopardized applicant's financial position and it allowed persons to profit from situation created previous applicant held illegal. May state now enforce repudiated against although this have practical effect nullifying Commission? That is federal question presented proceeding. 2 arises way. Georgia School Technology received station WGST 1923 gift. Petitioner1 operated until January 1930, when made Southern Broadcasting Company operation station. run ten-year period, company receive all earnings except percentage gross receipts. percentage, which varied up 10%, be paid Regents. Stations, Inc., are former stockholders, succeeded rights company. extended period end On execution both original extenstion filed Commission. 10 F.C.C. 110, 114. 3 Various renewals petitioner's during but petitioner applied 1940, ordered hearing determine whether arrangement constituted violation Act serve interest, convenience necessity. permitted intervene 4 found provided its should release licensee right duty maintain general control over station, actually exercised nominal authority. itself stipulated arrange programs attend program details. In operations under purchased additional equipment apparatus without consulting petitioner, since 1930 nothing been spent purchase or maintenance equipment. contracted own name buyers broadcasting time network service. 5 From these facts Southern's violated Commission's rule must responsible may transfer any person responsibility written consent. It also 1934, 47 U.S.C.A. § 151 seq., violated.2 6 issued proposed fact conclusions law March 23, 1943. decision refused application license. said, however, 'The will consider issuance assurance prepared assume discharge full responsibilities licensee.' at 121. temporary continued operation. proposal adopted 8, No appeal taken order. See U.S.C. 402, 402. 7 order obviate objection April 15, 1943, entered into here issue. Under shares stock Southern, and, consideration, agreed pay each month sum equal 15% net billings3 Petitioner proceeded liquidate assets, consisting equipment, contracts sundries, trust Technology. Since July has managed, directed controlled affairs 8 another While actual knowledge second proceeding, they never parties intervention otherwise. After hearings, necessity served grant application. Estimating new paying 70% ability conduct interest jeopardized. concerned especially because thought use so much income obligations lessen station's enter fields FM television. represented an effort give earlier managerial arrangements, violative regulations. price stock—estimated $300,000—was excessive estimated value $50,000. title questionable, no 'legal interest' did undertake pass upon validity matter law, concluded (11 71, 76): 'A circumstances where party contravention continue such would, effect, condone illegality thwart efforts requirements act.' September 19, 1945, again denied application, make affirmatively show 'that agreements' between One agreements involved present litigation. 9 Thereupon, Regents October 11, resolution repudiating contract, added copy pending license.4 By statement attached informed notified announced settlement approval.5 Respondents do deny notice repudiation. 7, 1946, requested license, ending 1, Thus able operate interruption throughout years. Until repudiation, payments contract. payments, nor time, far record indicates, offer return property intangible assets acquired through cannot restore their position. proceeding review brought accounting Superior Court Fulton County, Georgia, June, 1947, sums accruing August, 1945. 11 defended action ground permit recovery interference power broadcasting. contended requirement disaffirmance impossible performance.6 case submitted stipulation documentary evidence, there conflict facts. trial court judgment amounts due some $145,000. jurisdiction nullify, change anywise modify duties 1943.' decided requiring 'does constitute valid defense bar plaintiffs provisions said rendered performance part defendant impossible.' 12 Appeals accepted court's determinations affirmed.7 important relation administrative judicial involved, we granted certiorari. 846, 86. 13 We summarily dispose impossibility performance. law. Georgia. operating entry judgment, remained liable 14 Whatever affect rests 1934 amendments. sections pertinent determination appear margin.8 15 To lay bare controlling issue case, can remove several matters discussion significant our decision. There challenge ruling 310(b) regulations licensee's consent Commission.9 soundness. Similarly accept contemplated financially unacceptable licensee,10 conclusion might promised them prior invalid arrangement.11 inquiry narrowed point light Supremacy Clause Constitution, Art. cl. 2, grants very justified refusal license.12 16 Our decisions interpretative furnish basis examining question. As body, find powers within compass authority Congress.13 When assert undoubted regulate channels,14 Congress set prescribed licensing method regulation. 307, 307. licenses, guided what called 'touchstone' 'public convenience, necessity.'15 receives channel beyond term competitor even though results economic injury existing station.16 Although business regulated, qualifications character broadcasts weighed determining v. Sanders Bros. Radio Station, 309 470, 475, 642, 60 693, 697, 84 869, 1037; National Co., United States, 319 190, 218, 227, 63 997, 1010, 1014, 87 1344. These cases clear regulatory center around licenses. They contain reference sanctions, than revocation apply decisions.17 17 Station WOW, Johnson, 326 120, 65 1475, 89 2092, examination respective courts particularly applicable case. owner licensed WOW leased facilities years secured approval lessee. aside lease fraud retransfer physical lessor. essential holding, relates problem, lies words, page 131, 1481: 'We doubt Nebraska adjudicate, conclusively, claim Society finding direct reconveyance Society. And this, consists chooses it, refuses retransfer. result well termination station.' passed fraud, if adjudication justify affected independently fraud. 18 come arguments put forward orders effective recovery. suggestion specific statutory 303(r), permits prescribe 'conditions' 'necessary carry provisions' Act. think sound. enabled channels power. connection 303(r) interpreted. impose conditions meet before imposition directly third dealing applicant. 19 urges Act.18 does specifically empower adjudicate contractual liability declare unenforceable courts, depend implications 20 argument issues assured cancellation like one suit, choose two undersirable alternatives. either rules forsake insure licensees, deprive advantage management 21 indeed hard choice. For ten continued. Suddenly, favorable management, became conscious superseded insisted could suitable latter effect.' reason, explained us, satisfied unilateral disaffirmance, necessary require agree 22 choice Considerations unknown us dictated procedure. Before issuing similar cases, successfully obtained unequivocal assent cancellation.19 Indeed, refuse demonstrated freed obnoxious contract.20 23 But placed dilemma escape, inevitable scheme licensing. indicated embarrassed inability cease desist orders, disposal cumbersome weapons criminal penalties revocation.21 But, aware, request go asking licensee. sought party. statute, scope power, i.e., insist act bankruptcy all, available channels, extent particular license.22 frequently controversies licensees others outside ambit powers.23 read others. 24 Finally, irrelevant denying Even decision, failure destroy more prevent challenging reasons Commission.24 assumed correctness hold most extraordinary pain suffering binding lawfully imposed parties. 25 Affirmed. 26 BALCK DOUGLAS took consideration importance turns details title, hereafter refer treat owner, Contracts Trustees legislation University System Thereafter handled School. applications licenses 120. interpretation Rules & Regulations 1.364 (Part I, Revised 1945), §§ 301, 308, 310 (47 U.S.C.), 307—310. attention form renewals, questions which, 11c, asked: 'Does absolute broadcast?' I.e., sales less commissions disbursements 'Resolved, having stockholders Inc. legally performance, board hereby approves Committee directing complied with. prejudice fair adjustment whatever have, subject Commission.' agreement cancelled meeting A true correct hereto Exhibit J. orally Docket 6534 20, negotiate first obtain agreement.' allegations answer summarized filing resulted license; final alleged knew depended bear plead estoppel Neither treated 78 Ga.App. 292, 50 S.E.2d 808, certiorari Sup.Ct. denied, 898. U.S.C., 151. 'For purpose regulating interstate foreign commerce communication wire (it) available, possible, people States * commission known 'Federal Commission' *.' 154. '(i) perform acts, regulations, inconsistent chapter, functions.' 301. 'It among things, transmission; provide ownership thereof, limited periods authority, shall construed create right, terms, conditions, transmission energy communications signals *, accordance chapter behalf chapter.' 303. 'Except otherwise requires, shall— '(r) Make restrictions '(a) thereby, limitations therefor '(d) granting governed same considerations practice applications.' 308. '(b) All forth regulation citizenship, character, financial, technical, station; 309. If modification authorize issuance, renewal, thereof finding. *' 310. frequencies authorized used licensee, therein transferred, assigned, manner voluntarily involuntarily disposed of, indirectly corporation holding person, shall, securing information, decide writing.' 312. Any revoked false statements section 308 revealed warrant refusing substantially observe treaty ratified States: 405. 'After order, thereto rehearing same, therein, lawful discretion sufficient reason appear: 120; 76. 71 75; see 308(b), note 8. 1037. similarly conceived issue: agency Government, empowered stations, view subserving best possible service; gives private those protection transactions 809. stations engage practices contrary comes exercise ultimate instance subserved element affecting render practicable service community reached his broadcasts. applicants technical broadcast programs, properly constructed adequately manned interfere responsible, morally financially. Id., 298 299, 812, 813. '* Matters concern, rights, conferred commission's stations. 300, language (78 302, 814) inferred adversely above tenor opinion, contract's bottomed lack legal American Magnetic Healing McAnnulty, 187 94, 33, 39, 90; Helvering Sabine Transp. 318 306, 311, 569, 572, 773; Addison Holly Hill Fruit Products, 322 607, 617—618, 64 1215, 1221, 88 1488, 153 A.L.R. 1007; Ashbacker Corp. F.C.C., 327, 333, dissent, 335, 66 148, 151, 152, 90 108, Cf. 9(a) Administrative Procedure Act, Stat. 242, 1008(a): 'Sec. 9. authority— General.—No sanction substantive delegated law.' Nelson Bond Mortgage 289 266, 279, 53 627, 633, 77 1166, 406; 210, 1006, Comm. Pottsville 134, 138, 437, 439, 656; States. 216, 1009, 1344, 307(a), 307(a). 473, 476, 696, 698, provision appears Labor Relations 10(c), 49 454, 29 160(c), authorizing affirmative who violate Yet left free contracts. Licorice Co. Board, 350, 365, 577, 799. Matter Westinghouse Electric Manufacturing 195; re Cornell (WHCU), 5820 (Order, Oct. 1940). City Camden (WCAM), Pike Fischer 344, 384. Hearings Subcommittee Interstate Foreign Commerce S. 1333, 80th Cong., 1st Sess. 14, 51. supra, pages 215—216, Petition Fannie I. Leese, al., 364; Hearst Radio, 295; Assignment License WMCA, 241, 242. Red River Comm., 69 App.D.C. 98 F.2d 282.

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