trade liabilities) in excess of 5 percent of total outstanding debt, including name and address and amount of debt held by holders of more than 5 percent of the issue or $500,000, whichever is less.

The reports filed by officers and directors require information on stock or other interests held by them. The definition of interest includes bonds, notes, debentures and evidence of indebtedness. This information on shortterm and long-term debt of air carriers may be found in these reports.

plicity of applications requiring FCC approval and as part of various reports regularly required by the Commission. The information received by each Bureau is discussed below.

Broadcast Bureau

The Broadcast Bureau receives most of its information pertaining to ownership and control of broadcast stations in connection with applications to (1) construct or modify broadcast stations; (2) transfer ownership or control of broadcast stations; and (3) renew existing broadcast

See Comptroller General's letter on p. 197.

6. Availability and Cost of Information to the Public

All forms and reports discussed above are available to the public. CAB regulations (14 CFR 310) describe the manner in which CAB opinions, orders and records are available for public inspection and copying.

Copying_machines are available in CAB's Public Reference Room for use by the public at a cost of 15¢ per copy. Requests for information may be made directly to CAB. We were informed that CAB personnel are available to copy information for the public and the cost is 35 cents per copy. CAB performs the service pursuant to CAB regulation 14 CFR 389.

7. Proposals for New Legislation and Authority

CAB officials informed us that, with respect to information on proprietary ownership, subsidiaries, parents and other control, officers and directors, and long-term and short-term debt, no laws, rules, regulations or procedures have been recommended during the past 10 years which have not been implemented and therefore not contained in the preceding sections. Our review of CAB's Proposed Legislative Program for each of the past 10 years disclosed no proposed legislation which dealt with the subject matter of ownership or control.

We learned that on March 5, 1973, CAB's Bureau of Operating Rights made certain recommendations to the Board concerning additional reporting requirements for diversified air carriers. The recommendations were presented in the Air Carrier Reorganization Investigation which is now in process.

These recommendations would require diversified air carriers to file (1) quarterly reports containing detailed information on certain intercorporate transactions and (2) additional reports focusing on the carrier's diversification policies and procedures.

FEDERAL COMMUNICATIONS COMMISSION The Federal Communications Commission (FCC) regulates interstate and foreign communications by wire and radio. FCC is responsible for regulating the rates and services of communications common carriers and for attaining and maintaining maximum benefits for the United States from the use of the radio spectrum. Three Bureaus within FCC-Broadcast Bureau, Common Carrier Bureau and Cable Television Bureau-receive information from regulated companies regarding (1) proprietary ownership; (2) subsidiaries, parents, or other companies or firms having control over the regulated companies; (3) officers and directors of the regulated companies; and (4) the

long-term and short-term debt of the regulated companies. The information is received in connection with a multi

Section 319(a) of the Communications Act of 1934, as amended, (47 U.S.C. 319(a)) authorizes FCC to issue permits for the construction of any broadcast station, AM and FM radio and VHF and UHF television. Pursuant to this authority FCC regulations (47 CFR 1.533) require that FCC Form 301, an application for authority to construct a new commercial broadcast station or modify an existing station, be filed with the Commission. Applications to construct or modify a noncommercial educational television or radio station are made on FCC Form 340.

Section 310(b) of the act (47 U.S.C. 310(b)) states that no construction permit or station license shall be transferred, assigned or disposed of in any manner without the approval of FCC. To obtain approval of a transfer, FCC regulations (47 CFR 1.540) require the filing of FCC Form 314, an application for assignment of a television broadcast station construction permit or license or FCC Form 315, an application to transfer the control of a radio broadcast station construction permit or license.

Section 4(i) of the act (47 U.S.C. 154(i)), and section 303 (r) of the act (47 U.S.C. 303 (r)) provide that FCC may perform any and all acts, make such rules and regulations and issue such orders as may be necessary in the execution of its functions. Pursuant to this authority, FCC regulations (47 CFR 1.615) require that FCC Form 323, Ownership Report, be filed every 3 years by all AM and FM radio and VHF and UHF television stations in order to be relicensed or have a permit renewed. In addition, a supplemental Ownership Report (FCC Form 323) is required to be filed by each licensee or permittee within 30 days after any change occurs in the ownership information previously reported.

The information received on the aforementioned applications and reports is discussed below in the same sequence as the information requested in Senator Metcalf's letter of February 9, 1973, except for the evaluation of the enforcement and effectiveness of the rules and regulations which will be covered in the Comptroller General's formal response to Senator Metcalf.1

1. Information on Proprietary (Voting) Ownership

The application to construct or modify a broadcast station, FCC Form 301, requires the applicant to provide the name and residence of stockholders, number of shares of each class of stock held, and percent of ownership or percent of voting stock held. If the applicant has more than 20 stockholders, information is to be provided only for stockholders owning 3 percent or more of the stock. If the beneficial owner of the stock is a person other than the owner of record, data must be included on the name of the owner of record, the name of the beneficial owner, the conditions under which the owner of record holds any voting power, and a copy of any contract or other in

strument relating to such conditions.

1 See p. 197.

The ownership information to be provided in FCC Form 340 includes all holders of 1 percent or more ownership interest, their names and residence, citizenship, and principal profession or occupation.

Applications to transfer a broadcast station, FCC Forms 314 and 315, require the same ownership information as FCC Form 301. We were informed by officials that, while Forms 301, 314, and 315 only require information on stockholders owning 3 percent or more of the capital stock, in most cases, the Bureau requests supplemental information on all persons owning 1 percent or more of the capital stock. We were told that this was done so that the Bureau can determine whether FCC's restrictions on

the number of stations a person may own have been

violated.

The Ownership Report (FCC Form 323) requires that information on owners of record, beneficial owners and those having power to vote be filed (1) prior to any application for relicensing or (2) within 30 days after any change occurs in the ownership information previously reported on any application from or other Ownership Report.

Although no specific FCC forms must be filed, section 4(i) of the act provides authority for FCC to require, under 47 CFR 1.613, the filing of any agreement, document, or instrument affecting, directly or indirectly, the ownership or voting rights of the licensee's or permittee's stock including agreements for transfer of stock and instruments for the issuance of new stock.

2. Information on Subsidiaries, Parents, or Any Other Company or Firm Having Control Over Regulated Corporation

FCC Form 301 requires the applicant to provide information concerning the occupation and business and financial interests of each party named as a stockholder and any other party having ownership interests. If the applicant is a corporation, information must be provided as to whether the corporation is directly or indirectly controlled by another corporation or legal entity; whether 10 percent or more of the stock of the applicant is owned by another corporation or legal entity; and, if the corporation named as controlling the applicant is in turn a subsidiary, the applicant must state the name of such other parent corporation or legal entity. Information is also requested as to whether the applicant has now, or ever had, interest in, or connection with, any other broadcast station. On FCC Form 340, FCC receives subsidiary, parent and control information from noncommercial educational TV, AM and FM broadcast stations. This form requires information as to the applicant's interest in, or connection with, any other broadcast station and any documents, instruments, contracts or understandings relating to ownership, use, or control of the applicants station or facility. In addition, both FCC Form 314 and FCC Form 315 require subsidiary, parent and control information similar to that as required by FCC Form 301, discussed above.

The Ownership Report (FCC Form 323) requires broadcasters to provide the name of any corporation or other entity having a direct or indirect ownership interest in them. In addition, the broadcasters must show the interests they have in any other broadcast station including those of any of its officers, directors, stockholders or partners. Broadcast stations having more than 50 stock

holders need report this information only with respect to officers, directors, or stockholders having 1 percent or more of the voting stock in the broadcast station. Supplemental ownership reports, containing the same information, must be filed within 30 days after any change occurs in the ownership information previously reported.

ADDITIONAL INFORMATION

In addition to the subsidiary, parent and control information received by the Bureau on application forms and reports as discussed above, FCC also requires other such information pursuant to authority granted in section 319(a) of the act (47 U.S.C. 319(a)). FCC regulations (47 CFR 1.539) requires the filing of FCC Form 342, an application for renewal of a noncommercial educational broadcast station license. This form requires information as to the existence of any documents, instruments, contracts or understandings relating to the ownership, use or control of the station facilities or any rights or interests

therein.

In addition to the rules and regulations requiring the submission of ownership information, FCC also has regulations which affect ownership but do not require the submission of ownership information. The FCC's rules relating to multiple ownership of AM radio broadcast stations (47 CFR 73.35), state that no license shall be granted for a broadcast station if (a) such party directly or indirectly owns, operates, or controls, one or more AM broadcast stations and the grant of such license will result in any overlap of the existing and proposed stations; or (b) such party, or any stockholders, officers or directors of such party, directly or indirectly owns, operates, or controls, or has any interest in, or is an officer or director of any standard broadcast station, if the grant of such license would result in a concentration of control of standard broadcasting in a manner inconsistent with the public interest, convenience, or necessity. Similarly, sections 73.240 and 73.636 (47 CFR 73.240 and 73.636) of FCC's regulations govern multiple ownership of FM and television broadcast stations respectively.

3. Information on Officers and Directors

FCC Form 301 requires a schedule of the number of shares of each class of stock, and percentage of voting stock, held by all officers, directors and members of the governing board as well as their business and financial interests at the present time and during the past 5 years in any other broadcast station. FCC Form 340 requires & schedule of the applicant's officers and members of the governing board; including their names and residence, office held, citizenship, principal profession or occupation and by whom they were appointed or elected. Both FCC Form 314 and FCC Form 315 require information on officers and directors similar to that as required by FCC Form 301, discussed above.

The Ownership Report (FCC Form 323) includes a schedule of all officers and directors and the stock held by each, including the number and class of stock and the percentage of voting stock held by each. Also included is a schedule which requires the interests held in any other broadcast station by any of the officers and directors. Supplemental ownership reports must be filed within 30 days after any change occurs in the ownership information previously reported.

4. Information on Long-Term and Short-Term Debt

FCC Form 301 requires a statement setting forth the full name and address of each person who has assisted or will assist in any manner in financing the station and a copy of the agreement by which each person is so obligated, showing the amount, rate of interest and terms of repayment and security, if any. For financial institutions or equipment manufacturers who have agreed to make a loan or extend credit, a copy of the document by which the institution or manufacturer has indicated its willingness to provide such loan or credit must be submitted. Both FCC Form 314 and FCC Form 315 require financial information similar to that as required by FCC Form 301.

Financial information is also requested on FCC Form 340 on a schedule of the financial qualifications of the applicant which includes full information as to the sources of funds for the first year's operation of the proposed

station.

In addition to the forms shown above, FCC regulations (47 CFR 1.611) require FCC Form 324 entitled Annual Financial Report of Networks and Licensees of Broadcast Stations to be filed by each licensee or permittee of a commercially operated broadcast station. This report includes schedules of broadcast revenues, broadcast expenses and broadcast income.

5. Enforcement and Effectiveness of Laws, Rules, and Regulations

See Comptroller General's letter on p. 197. 6. Availability and Cost of Duplicating Information

We were informed by FCC officials that all applications and reports as described above and submitted to FCC are available to the public upon request to FCC's Office of Information. FCC provides for public use a machine for duplicating such information at a cost of 10 cents per page. If an individual is not able to personally review these records he may write to FCC requesting that such information be provided. If the request does not involve considerable time or cost, the information will be supplied by FCC at no cost to the public. If the individual cannot obtain the information himself and FCC will not copy it for him because of the time and expense involved he may

obtain the information from the Keuffel and Esser Com

pany, 1521 North Danville Street, Arlington, Virginia 22201, at a cost of 12 cents per copy or a minimum charge of $2.00. The Keuffel and Esser Company provides this service under a contract with the FCC.

and reductions in service, construction of facilities and applications to use radio in communication service. Section 219(a) of the Communications Act of 1934, as amended (47 U.S.C. 219(a)), authorizes FCC to (1) require and from persons directly or indirectly controlling or conannual reports from all carriers subject to its jurisdiction trolled by, or under direct or indirect common control with any such carrier, (2) prescribe the manner in which such reports shall be made, and (3) require from such persons specific answers to all questions upon which FCC may need information. Pursuant to this authority, FCC regulations (47 CFR 43.21 and 1.785) require that the following annual reports be filed by communications common carriers:

(1) FCC Form M-an annual report form prescribed for use by telephone companies.

(2) FCC Form R-an annual report form prescribed for use by radiotelegraph carriers.

(3) FCC Form Ŏ-an annual report form prescribed for use by wire telegraph and ocean-cable carriers. (This form is identical to FCC Form R.)

(4) FCC Form H-an annual report form prescribed for holding companies. (Securities and Exchange Commission Form 10-K may be substituted for this form pursuant to FCC regulation (47 CFR 43.21(c)) since it contains similar information.)

(5) FCC Form P-an annual report prescribed for miscellaneous microwave common carriers.

In performing its statutory responsibilities, the Bureau receives other information as follows:

(1) Section 309 of the act (47 U.S.C. 309) authorizes FCC to determine, in the case of each application for a radio station license filed with the Commission, whether the public interest, convenience and necessity will be served by the granting of such license. Pursuant to this authority, FCC regulations (47 CFR 21.14) require that FCC Form 401, an application for new or modified common carrier radio station construction permit, be filed with the Commission.

that no construction permit or station license shall be (2) Section 310(b) of the act (47 U.S.C. 310(b)) states transferred, assigned or disposed of in any manner except FCC regulations (47 CFR 21.14(h)) require that an appliupon application to FCC. Pursuant to this authority, submitted on FCC Form 702 or FCC Form 704, respeccation to transfer a common carrier's permit or license be tively.

The information received on the aforementioned applications and reports is discussed below in the same sequence as the information requested in Senator Metcalf's letter of February 9, 1973, except for the evaluation of the enforcement and effectiveness of the rules and regulations which will be covered in the Comptroller General's formal response to Senator Metcalf.1

1. Information on Proprietary (Voting) Ownership

FCC Form M requires common carriers to complete a schedule that includes information on the voting power of all stockholders and the number of shares of stock voted by proxies at the latest general stockholder meeting. FCC Form M also requires a schedule of the 30 largest stockholders of each class of stock listed in descending order of their holdings. If any of the 30 largest stockheld the beneficial interest in the securities, the name and holders was a trustee or nominee for other persons who

1 See p. 197.

address of the beneficial interest, if known, must be shown in a footnote.

We were informed by FCC officials that COMSAT, which is also under FCC jurisdiction in accordance with the provisions of the Communications Satellite Act of 1962 (47 U.S.C. 701-744), files a modified FCC Form M pursuant to authority granted in Section 219(a) of the Communications Act of 1934, as amended (47 U.S.C. 219(a)), and FCC regulations (47 CFR 43.21).

FCC Forms R and O require schedules of the 30 largest stockholders of each class of stock listed in descending order of their holdings. If any of the 30 largest stockholders was a trustee or nominee for other persons who held the beneficial interest in the securities, the name and address of the person who was the principal owner or who had the beneficial interest, if known, must be shown in a footnote. In addition, if any person was the principal owner or had the beneficial interest in the securities held by trustees or nominees under different trusts or other groupings, and the aggregate holdings of such person would place him among the 30 largest listed stockholders, the details of his holdings are required to be shown in a footnote, if known.

FCC Form H requires holding companies to provide for each of its 30 largest stockholders their name, address, number of votes held, and classification of securities held. If any of the 30 largest stockholders is a trustee or nominee for one or more persons who hold the beneficial interest in the stock, the holding company must provide, if known, the names and addresses of the individuals who are the principal owners of the stock or who have the beneficial interest. If any individual is the beneficial owner of more than one block of stock and the aggregate of such holdings makes the individual one of the thirty largest stockholders, such holdings are required to be grouped and the name and address of the individual reported.

ADDITIONAL INFORMATION

In addition to the ownership information received in the annual reports discussed above, proprietary ownership information is also obtained by the Bureau from common carriers in various applications as follows:

(1) FCC Form 401, an application for new or modified radio station construction permit, requires a schedule of the names and addresses and percentages held of all stockholders owning and/or voting 10 percent or more of the applicant's stock.

(2) FCC Form 702, an application to assign a radio. station construction permit or license, requires a schedule of names and addresses of all stockholders owning and/or voting 10 percent or more of the transferee's stock and percentage of stock held by each.

(3) FCC Form 704, an application to transfer control of a corporation holding a common carrier radio station construction permit or license, requires a schedule of the names, addresses, and percentages of stock held by all principals of the corporation seeking to obtain control and by all stockholders owning and/or voting 10 percent or more of the transferee's stock.

2. Information on Subsidiaries, Parents, or Any Other Company or Firm Having Control Over Regulated Corporation

FCC Form M requires a schedule showing who has control over the common carrier, including the form of the control, the name and address of the organization or

person who has control, the means by which the control is held, and the extent of the control. FCC also requires that, if the controlling organization or person was in turn controlled by another organization or person, the common carrier must show the chain of control leading to the organization or person having ultimate control. The common carrier must also show the extent of control exercised over each organization or person in the chain. In addition, FCC requires that, if any controlling organization or person held control as trustee, the name and address of the beneficiary for whom the trust is maintained and the purpose of the trust must be given, if known.

Another schedule in FCC Form M requires information as to the names and addresses of all companies which, during the year, came under the direct or indirect control of the common carrier and includes (1) how control was established, (2) names of other parties to a joint agreement for control, (3) the extent of control exercised by each party, and (4) any other pertinent data.

FCC Forms R and O includes two schedules requiring information on subsidiaries, parents and control of the carrier. One schedule requires information on the form of control including name and address of the controlling party, the manner in which control was established, the extent of control, and whether the control was direct or indirect. If control of the respondent was in a holding company, the carrier is required to show the chain of ownership or control to the main parent corporation, business trust, or other organization. The second schedule requires the carrier to provide the name and address of any organization controlled by the carrier and the nature of such control, including voting stock owned, whether such control is direct or indirect, and the names of other parties to joint control and/or intermediaries involved in indirect control.

CORPORATE CONTROL OF CARRIER

FCC Form H requires a schedule showing corporate control over the carrier. The schedule includes information on the form of control, the name and address of the controlling party, the manner in which control was established, the extent of control, and whether such control was direct or indirect. FCC Form H also requires a schedule showing the companies controlled directly by the carrier other than through securities. The schedule contains the name and address of the company controlled; and the character of such control. Another schedule with FCC Form H shows companies controlled by the carrier through nonreporting intermediaries. The schedule whether such control is sole or joint; the names of other shows the name and address of the company controlled; parties, if any, to a joint agreement for control; how control was established; the extent of such control and the name and address of the intermediary through which indirect control exists.

FCC Form P requests information on any equipment or facility in the carrier's microwave service that is owned, operated or maintained by person(s) other than the licensee. In addition to the information received from communication common carriers by the Bureau in the annual report forms discussed above, subsidiary, parent, and control information is also requested by FCC from common carrier radio stations on various application forms as shown below:

(1) Form 401, an application for new or modified radio station construction permit, requires information as to whether the applicant is directly or indirectly controlled