The Buffalo News from Buffalo, New York • 7

J' Buffalo Evenic News Domestic Metis 7 New Chief of Stsff Named at Mitchel Field Supreme Court Upholds FCC On Radio-Chain Regulations NBC and CBS Protest of "Drastic Turned Down Murphy and Roberts Dissent sion that the people of the United States will Insist upon a revision of the fundamental laws governing broadcasting so that the American system of broadcasting as we have known it will not be impaired have every confidence that despite the present limitations which are about to be imposed upon the broadcasting industry that ultimately either through action of the commission itself or through Congress broadcasting will continue as the greatest means of mass communication as an effective medium for the preservation of the morale of the American public in wartime and as its greatest source of entertainment in peace time" Mr Patey thus closed a message sent to CBS affiliated stations: "In view of the fact that the Supreme Court disclaimed any responsibility in the good or bod effect of the commission's regulations we are more than ever convinced that the commission's areas of authority and the broadcasters' areas of freedom should he redefined by the Congress in a new radio dozens of radio and advertising executives it was added thus would have to be obtained for each program scheduled National advertising contracts it was said customarily are made on the basis of a year and thus "optional time is as necessary for the practical operation of network broadcasting as traffic lights are for the practical flow of vehicular Mutual which Intervened before the court against NBC and CBS argued for its part that under the old regulations it had been under unfair competitive handicaps and that the regulation against exclusive option time still would give its competitors an "entirely sufficient for three hours per the broadcasting day being divided into four such segments Options the Big Issue The long-disputed rule called in the trade thus reads as to network that Is the hour at which a station has agreed to carry a national program: "Such options may not be exclusive as against other network organizations and may not prevent or hinder the station from optioning or selling any or all of the time covered by the option or other time to other network organize' The argument of NBC has been lhat this would mean a scramble for the best hours of such scope that it would be difficult to promise an advertiser and carry through with It fixed stations at fixed hours for his national programs President Niles Trammell of NBC and President William Pa ley of CBS both declared their' belief that much would depend on how the commission administered its new regulations and since nearly everything still seemed up the commission it was impossible to foretell their effect upon the radio listener Industry Deeply Stirred Mr Trammel's statement follows: "The decision of the majority of the United States Supreme Court holding that the Federal Communications Commission was within its jurisdiction in the promulgation and enforcement of tMb much-disputed network regulations is of grave concern to American broadcasters We have had an era In which networks and stations through collaboration have been able to build the finest broadcast ing service the world has ever known This has been accomplished through private enterprise with no interference on the part of the FCC with businesa relationships voluntarily entered into between networks and stations "With the present radio law given this broad interpretation by the Supreme Court the Fed' eral Communications Commission may endeavor to extend its regu la tions to cover practically every phase of the business relationship between the networks and the sta tions Has Gravs Responsibility "The commission now assumes a grave responsibility that it exercise the greatest possible wisdom in the Issuance of regulations which will enable the broadcasters of the nation to continue to render a sat' Isfactory service to the public am convinced that unless such wisdom prevails within the commis NEW EVERY DAY-NEWS WANT ADS Justice Murphy said "the commission would not only extend its authority over business activities which represent interests and in-vestmenta of a very substantial character which have not been put under its jurisdiction by the act but would greatly enlarge its control over an institution that has now become a rival of the press and pulpit as a purveyor of news and entertainment and a medium of public discussion Congressional Action Suggested "To assume a function and responsibility of such wide reach and importance in the life of the nation as a mere incident of its duty to pass on individual applications for permission to operate a radio station and use a specific wavelength is an assumption of authority to which I am not willing to lend my Neville Miller president of the National Association of Broadcasters said the decision "once more emphasizes the necessity for prompt congressional review of the radio law in the light of present development of the broadcasting Mr Miller noted that hearings on a Senate resolution to review the present Communications Act are scheduled for May 25 Decision to Mean Many Changes in Broadcasting NEW YORK May Mh A Supreme Court decision' upholding half a "dozen regulations of the Federal Communications Commission and particularly one striking at the long-established practice of obtaining exclusive options from local stations by networks to channel their programs out to the country raised before the broadcasting industry today the prospect of an essential change in many of its business relations The court's action was a victory for the commission itself and for Mutual Broadcasting System which had intervened and fought its competitors National Broadcasting Company and Columbia Broadcasting System Hopes for FCC Wisdom NBC and CBS indicated themselves hard hit In this decision one of the most Important to the networks since nationwide broadcasting began and through their top executives expressed hope that COL RICHARD NUGENT NEW YORK May CoL Richard Nugent has been appointed chief of staff of the First Air Force at Mitchel Field He learned the technique of aerial defense as an observer with the RAF during the worst night bombardments pf Britain One of his functions now is to train American fighter pilots date to the larger and more effective use of radio in the public if need be by making regulations applicable to radio stations engaged in chain Justice Frankfurter said the court's duty was ended when it ruled that the commission's regulations were based on its findings and in pursuance to authority granted by Congress Wisdom Net at Issue "It is not for us to say that the interest' will be furthered or retarded by the chain-broadcasting he added "The responsibility belongs to the Congress for the grant of valid legislative authority and to the commission for its exercise" Justice Murphy's dissent declared it was possible that full utilization of the radio "as an instrument of culture entertainment and the diffusion of ideas is (inhibited" by existing network arrangements and that some conditions imposed by the broadcasting chains "are possibly not conducive to a freer use of radio he said Tam unable to agree that it is within the present authority of the commission to prescribe the remedy for such conditions Means Drastie Changes "It is evident that a correction of these conditions in the manner proposed by the regulations will involve drastic changes in the business of radio broadcasting which the Congress has not clearly and definitely empowered the commission to Justice Murphy declared the "real of the FCC in issuing the regulations is to "regulate the business practices of the major networks thus bringing within the range of its regulatory the chain-broadcasting industry as a "By means of these regulations and Jhe enforcement program" DANCE LESSONS FOR 2 at the costfbrt WASHINGTON May 11 (ff) Regulations prohibiting exclusive broadcast contracts between a network and a radio station and otherwise restricting their relationships were upheld Monday by the Supreme Court as a valid exercise of the Federal Communication emu-mission's licensing power in the "public interest convenience or The 5-2 opinion delivered by Justice Felix Frankfurter declared that the regulations challenged by the National Broadcasting Company and the Columbia Broadcasting System were properly issued under the Communications Act of 1931 The companies had contended the regulations would cause the networks "drastic and President Niles Trammell of NBC said Monday's decision was "of grave concern to American 1 Forecasts Change in Law He expressed belief that unless the commission shows "the greatest possible the people "will insist upon a revision of the fundamental laws governing broadcasting so that the American system of broadcasting as we have known It will not be President Miller McClintock of Mutual Broadcasting System said the radio Industry is to have a practical of FCC rules and "we welcome their application without Regulations limit contracts grant-talk stations exclusive rights to networks programs in an area served by another station cut from five to two years the period for affiliation between a chain and a station restrict the networks in taking options on a station's broadcasting time bar more than one network-owned or controlled station in the same service area and give the stations greater authority to fix rates for broadcast time other than the network programs Upholds FCC Authority Not enforced pending the action the regulations will become effective ten days after the tribunal notifies the Federal District Court In New York of Its decision Justice Frankfurter asserted the avowed aim of the act was to secure the maximum benefits' of radio to all the people of the United States To that end Congress endowed the Communications Commission with comprehensive powers to promote and realise the vast potentialities of Provisions of the act governing the FCCs authority to issue regulations regarded to be in the public interest the opinion said "preclude the notion that the commission is empowered to deal only with tech nkal and aspects of the industry Nor do the regulations abridge the freedom of speech the opinion what NBC termed would be shown by the commission in administering its regulations regulations now confirmed by the court after litigation going back to October of 194L The argument of and it was joined in the court attack by had been that the proposal to knock out the present option system under which the networks arranged through long-term agreements with hun dreds of local stations to broad' cast their national programs would put the network in the position of having to try to plan its national programs and sell its advertising time on an "if as and when" basis having to negotiate individually with scores of stations until all of them had agreed upon a time that they would carry the program Business Handicap Charged The unanimous of Now In Effect at Arthur Far short tins only any couple can Iram to danca at the Arthur Murray and ssva 3 01 an rates! It's grand fun Iraming to Wain Tange Fes Trot or Ruaiba tatelhtrl Doctor racemmend thrss lessons far nfrrshing health and rshilaraling txercis become good dancers in only 6 hours while rates are 30 less ARTHUR MURRAY frocks of distinction EIGHT FORTY -FOUR RROADWAY CORNU GUILFORD NEW HOURS BSsVJtULwm 4th Floor Hotel Ststler HATS OFF To 6100000 Farmers eethey give you what counts most Murphy Denies Lsgsl Bttit Dissenting Justice Frank Murphy said that he did not question the need for such regulations or the authority of Congress to empower the FCC to Issue them But he declared that grant of power was not contained in the Communications Act of 1934 In its only other opinion of the day the court ruled that a Federal District Court doss not have authority to enjoin enforcement of the Emergency Price Control Act because Congress provided for an emergency Court of Appeals in Washington to rule on litigation arising from the act The issue was raised by a group of Northern New Jersey meat deai-era charged with violating maximum price regulations They had been denied an injunction by a Federal District Court in New Jersey which held it lacked Jurisdiction Roberts Seconds Murphy Joining with Justice Frankfurter in the majority opinion in the radio case were Chief Justice Harlan Btone and Justices Stanley Reed William Douglas and Robert Jackson Justice Owen Roberts agreed with Justice Murphy's dissent while Justices Hugo Black and Wiley Rutledge did not participate Justice Frankfurter said that "in essence" the regulations "represent particularization of tha commla-afon's conception of the sought to be safeguarded by in enacting tha Communications Act "The basic consideration of policy underlying the regulations" ha said la auccinctly stated in its report (of an investigation of chain broadcasting practices): Frankfurter Cite Report With the number of radio channels limited by natural fae-ton tha public interest demands that those who are entrusted with the available channel! shall maka the fullest and most effective use of them If a licensee enters into a contract with a network organization which limits his ability to make the best use of the radio facility assigned him he is not serving the public interest the net effect (of practices disclosed by the investigation) has bear that broadcasting service has been maintained at a level below that possible under a system of free competition Having so found we would be remiss in our statutory duty of encouraging the larger and more effective use of radio in tha public interact if we were to grant licenses to persons who persist in these Finds Fowsrs Implied "True Justice Frankfurter continued "the act does not explicitly say that tha commission shall have power to deal with network practices found lmimical to tha 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 It was given a comprehensive man- Giesterfields deliver the goods to smokers who know what they want because made from the best cigariette tobaccos blended together by an important manufacturing secret in the one Right Combination that completely Satisfies WIITE LETTERS oesitei THE CIGARETTE THAT GIVES SMOKERS WHAT THEY WANT gSkt IML beam Mnss Ti i.