Testimony of-Continued Page 221 Pengra, Marshall, manager, radio station KRNR, Roseburg, Oreg Petty, Don, general counsel, National Association of Broadcasters, 561 336 Pirincin, Joseph, representing the Socialist Labor Party of America, Richards, Robert K., director of public relations, National Associa- tion of Broadcasters, 1771 N Street, Washington, D. C... Roberson, Frank, chairman, legislative committee, Federal Com- Smart, Elizabeth A., representing the National Woman's Christian 74 476 Trammell, Niles, president, National Broadcasting Co., 30 Rocke- 390 Willard, A. D., Jr., executive vice president, National Association Woods, Mark, president, American Broadcasting Co., 30 Rockefeller Caldwell, Louis G., Kirkland, Fleming, Green, Morton & Ellis, Na- tional Press Building, Washington, D. C....... Carson, John, representing The Cooperative League, U. S. A., and National Cooperatives, Inc., 726 Jackson Place, Washington, D. C. Dunford, Edward B., attorney for The Antisaloon League of America, 131 B Street SE., Washington 3, D. C... Finch, William G. H., Finch Telecommunications, Inc., 10 East 196 Hayward, Frederick, manager, radio station KWSC, Pullman, Wash Kiroack, Howard, executive vice chairman, Laymen's National Com- Johnson, Henry M., president, National Temperance and Prohibition Council, 704 Louisville Trust Building, Louisville, Ky... Leonard, Richard T., vice president, UAW-CIO, 1707 Seward Ave- Lounsberry, I. R., president, WGR Broadcasting Corp., chairman, Columbia Affiliates Advisory Board, Rand Building, Buffalo 3, N. Y. Lutheran Hour, The, Eugene R. Berterman, director of radio, 3558 TO AMEND THE COMMUNICATIONS ACT OF 1934 TUESDAY, JUNE 17, 1947 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON The subcommittee met at 10 a. m., pursuant to call, in room 318, Senate Office Building, Senator Wallace H. White, Jr. (chairman) presiding. Present: Senators White, Moore, Capehart, Johnson of Colorado, and Magnuson. Present also: Senator McMahon. The CHAIRMAN. The committee will please come to order. This meeting is called for the beginning of hearings on Senate 1333. I think it appropriate that I should offer first for the record a copy of the bill itself, and I ask that that be incorporated in the record. (S. 1333 is as follows:) [S. 1333, 80th Cong., 1st sess.] A BILL To amend the Communications Act of 1934, as amended, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as "Communications Act Amendments, 1947”. SEC. 2. Subsections (o) and (p) of section 3 of the Communications Act of 1934, as amended, are amended to read as follows: "(o) 'Broadcasting' means the dissemination of radio communications intended to be received directly by the public. "(p) Network broadcasting' or 'chain broadcasting' means the simultaneous or delayed broadcasting of identical programs by two or more stations however connected." SEC. 3. Section 3 of such Act is further amended by adding after subsection (aa) the following: "(bb) The term 'license', 'station license', or 'radio station license' means that instrument of authorization required by this Act or the rules and regulations of the Commission made pursuant to this Act, for the use or operation of apparatus for transmission of energy, or communications, or signals by radio, by whatever name the instrument may be designated by the Commission. "(cc) The term 'broadcast station', 'broadcasting station', or 'radio broadcast station' means a radio station equipped to engage in broadcasting as herein defined. "(dd) Network organization' means any person who sells or clears time, or who has any contract, agreement, understanding, or arrangement, either express or implied, with any broadcast station under which such person undertakes to sell or clear time, for the presentation of programs, produced either by itself or others, to be broadcast simultaneously over more than one broadcast station irrespective of the means employed, or to be broadcast simultaneously over more than one broadcast station by means of recordings; but shall not include advertising agencies or persons who contract directly with the licensee or broadcast station for broadcast time for their own use. "(ee) The term 'hours' or 'broadcast hours' means clock hours. 1 "(ff) The term 'construction permit' or 'permit for construction' means that instrument of authorization required by this Act or the rules and regulations of the Commission made pursuant to this Act for the installation of apparatus for the transmission of energy, or communications, or signals by radio, by whatever name the instrument may be designated by the Commission. "(gg) The term 'single broadcast band' means that group of channels assigned for broadcasting by means of amplitude modulation, international shortwave amplitude modulation, frequency modulation, facsimile, television, or any other type of broadcast service subsequently developed, respectively." SEC. 4. (a) Subsection (a) of section 4 of such Act, as amended, is amended by striking out ", one of whom the President shall designate as chairman". SEC. 5. Section 5 of such Act, as amended, is amended to read as follows: "CHAIRMAN AND DIVISIONS OF THE COMMISSION "SEC. 5. (a) Within thirty days after the enactment of this Act, and annually thereafter, the Commission (1) shall select one of its members to be Chairman of the Commission for the ensuing year, and (2) shall organize its members, other than the Chairman, into two divisions of three members each, said division to be known and designated as the 'Common Carrier Division' and the 'Broadcast Division'. Except as hereinafter provided, no member designated to serve on one division shall, while so serving, have or exercise any duty or authority with respect to the work or functions of the other division. "(b) The Broadcast Division shall have jurisdiction over all questions of substance and procedure arising under the provisions of this Act and the rules and regulations of the Commission enacted pursuant to this Act relating to wire and radio communications intended to be received by the public directly, and shall make all adjudications involving the interpretation and application of those provisions of the Act and of the Commission's regulations. "(c) The Common Carrier Division shall have jurisdiction over all questions of substance or procedure arising under the provisions of this Act and the rules and regulations of the Commission enacted pursuant to this Act relating to wire and radio communications by a common carrier or carriers, or which are intended to be received by a designated addressee or addressees, and shall make all adjudications involving the interpretation and application of those provisions of the Act and of the Commission's regulations. "(d) The whole Commission shall have and exercise jurisdiction over the adoption and promulgation of all rules and regulations of general application authorized by this Act, including procedural rules and regulations for the Commission and the Divisions thereof; over the assignment of bands of frequencies to the various radio services; over all signals and communications of an emergency nature, including those by ships at sea and those relating to fire control and police activities; over all signals and communications by and between amateur stations; over the qualification and licensing of all radio operators; over the selection and appointment of all officers and other employees of the Commission and the Divisions thereof; and generally over all other matters with respect to which authority is not otherwise specifically conferred by the other provisions of this Act. In any case where a conflict arises as to the jurisdiction of the Commission or any Division thereof, such question of jurisdiction shall be determined by the whole Commission. "(e) The Chairman of the Commission shall be the chief executive officer of the Commission. It shall be his duty to preside at all meetings and sessions of the whole Commission, to represent the Commission in all matters relating to legislation and legislative reports, to represent the Commission or any Division thereof in all matters requiring conferences or communications with representatives of the public or other governmental officers, departments, or agencies, and generally to coordinate and organize the work of the Commission and each Division thereof in such manner as to promote prompt and efficient handling of all matters within the jurisdiction of the Commission. The Chairman of the Commission shall not be a member or serve upon either of said Divisions, except in the case of a vacancy or the absence or inability of a Commissioner appointed to serve thereon, the Chairman may temporarily serve on either of said Divisions with full power as a member thereof until the cause or circumstance requiring said service shall be eliminated or corrected. "(f) Each Division of the Commission shall choose its own chairman, and, in conformity with and subject to the foregoing provisions of this section, shall organize its membership and the personnel assigned to it in such manner as will best serve the prompt and orderly conduct of its business. Each Division shall have power and authority by a majority thereof to hear and determine, order, certify, report, or otherwise act as to any of said work, business, or functions over which it has jurisdiction. Any order, decision, report made, or other action taken by either of said Divisions with respect to any matter within its jurisdiction, shall be final and conclusive, except as otherwise provided. The secretary and seal of the Commission shall be the secretary and seal of each Division thereof. "(g) In the case of a vacancy in the office of the Chairman of the Commission or the absence or inability of the Chairman to serve, the Commission may temporarily designate and appoint one of its members to act as Chairman of the Commission until the cause or circumstance requiring said service shall have been eliminated or corrected. During the temporary service of any such Commissioner as Chairman of the Commission, he shall continue to exercise the other duties and responsibilities which are conferred upon him by this Act. "(h) The term 'Commission' as used in this Act shall be taken to mean the whole Commission or a division thereof as required by the context and the subject matter dealt with. The term 'adjudications' means the final disposition of particular cases, controversies, applications, complaints, or proceedings involving named persons or a named res. "(i) The Commission or either Division thereof is hereby authorized by its order to assign or refer any portion of its work, business, or functions to an individual Commissioner, or to a board composed of an employee or employees of the Commission, to be designated by such order for action thereon, and by its further order at any time to amend, modify, or rescind any such order or reference: Provided, That this authority shall not extend to duties specifically imposed upon the Commission, either Division thereof, or the Chairman of the Commission, by this or any other Act of Congress. Any order, decision, or report made or other action taken by any such individual Commissioner or board in respect of any matter so assigned or referred shall have the same force and effect and may be made, evidenced, and enforced as if made by the Commission or the appropriate Division thereof: Provided, however, That any person aggrieved by any such order, decision, or report may file a petition for review by the Commissioner or the appropriate Division thereof, and every such petition shall be passed upon by the Commission or that Division. "(j) Notwithstanding any other provision of this section, the Commission may, by specific order to that effect, continue any member in the performance of particular duties undertaken and commenced while serving as Chairman of the Commission or as a member of a particular Division, irrespective of the fact that such a member has been assigned to and has assumed the performance of other duties; but such an assignment shall be made only when necessary to the efficient and proper functioning of the Commission or of either Division thereof, or when the failure to make such an assignment would or might result in hardship or unnecessary delay to parties having business before the Commission. During the temporary service of any Commissioner pursuant to any such assignment, such Commissioner shall continue to exercise the other duties and responsibilities which are conferred upon him by or pursuant to this Act." SEC. 6. Subsection (k) of section 4 of such Act is amended to read as follows: "(k) The Commission shall make an annual report to Congress, copies of which shall be distributed as are other reports transmitted to Congress. Such reports shall contain "(1) such information and data collected by the Commission as may be considered of value in the determination of questions connected with the regulation of interstate and foreign wire and radio communication and radio transmission of energy; "(2) such information and data concerning the functioning of the Commission as will be of value to Congress in appraising the amount and character of the work and accomplishments of the Commission and the adequacy of its staff and equipment; "(3) information with respect to all persons taken into the employment of the Commission during the year covered by the report, including names, pertinent biographical data and experience, Commission positions held and compensation paid, together with the names of those persons who have left the employ of the Commission during such year: Provided, That the first annual report following the date of enactment of Communications Act Amendments, 1947, shall contain such information with respect to all persons in the employ of the Commission at the close of the year for which the report is made; "(4) an itemized statement of all funds expended during the preceding year by the Commission, of the sources of such funds, and of the authority in this Act or elsewhere under which such expenditures were made; and "(5) specific recommendations to Congress as to additional legislation which the Commission deems necessary or desirable." SEC. 7. Subsection (i) of section 303 of such Act is amended to read as follows: "(i) Have authority to make such special regulations applicable to the technical apparatus and the technical operation of stations engaged in chain broadcasting as it may deem necessary to prevent interference between stations." SEC. 8. Subsection (j) of section 303 of such Act is amended to read as follows: "(j) Have authority to make general rules and regulations requiring stations to keep such records of programs, transmissions of energy, communications, or signals as it may deem desirable; and to prescribe uniform systems of financial reports which may be required from the licensee of each radio station rendering a particular type of broadcast service, which reports shall disclose the financial statements of any such radio station regardless of the corporate organization or other control of such radio station by a licensee. All such reports so filed shall be kept confidential by the Commission, except that they shall be available, upon request, for the information of any committee of the Congress, or for use upon order of the Commission, or either Division thereof, in any proceeding before the Commission." SEC. 9. Subsection (b) of section 307 of such Act, as amended, is amended to read as follows: "(b) In considering applications for licenses, and modifications thereof, the Commission shall make such distribution of licenses, frequencies, hours of operation, and of power among the several States and communities as to provide a fair, efficient, and equitable distribution of radio service to each of the same, giving effect in each such instance to the needs and requirements thereof.” SEC. 10. Subsection (d) of section 307 of such Act is amended by striking out from said subsection the following language appearing in the last sentence thereof: ", but action of the Commission with reference to the granting of such application for the renewal of a license shall be limited to and governed by the same considerations and practice which affect the granting of original applications."; by inserting a period after the word "licenses" preceding such language, and by inserting the following sentence at the end of said subsection: "When application is made for renewal of license which cannot be disposed of by the Commission under the provisions of section 309 (a) hereof, the Commission shall employ the procedure specified in section 309 (b) hereof and pending hearing and final decision pursuant thereto shall continue such license in effect." SEC. 11. (a) So much of subsection (a) of section 308 of such Act as precedes the proviso is amended to read as follows: "The Commission may grant instruments of authorization entitling the holders thereof to construct or operate apparatus for the transmission of energy, or communications, or signals by radio or modifications or renewals thereof, only upon written application therefor received by it: Provided, That (1) in cases of emergency found by the Commission involving danger to life or property or due to damage to equipment, or (2) during the continuance of any war in which the United States is engaged and when such action is necessary for the national defense or security or otherwise in furtherance of the war effort, the Commission may grant and issue authority to construct or operate apparatus for the transmission of energy or communications or signals by radio during the emergency so found by the Commission or during the continuance of any such war, in such manner and upon such terms and conditions as the Commission shall be regulation prescribe, and without the filing of a formal application, but no such authority shall be granted for a period beyond the period of the emergency requiring it nor remain effective beyond such period :". (b) Section 308 of such Act is further amended by adding a new subsection (d) as follows: "(d) No license granted and issued under the authority of this Act for the operation of any radio station shall be modified by the Commission, except in the manner provided in section 312 (b) hereof, and no such license may be revoked, terminated, or otherwise invalidated, by the Commission, except in the manner and for the reasons provided in section 312 (a) hereof. No proceeding for authority to transfer a station license or to transfer stock in a licensee corporation under section 310 (b) of this Act shall be utilized by the Commission for |