And that simply points up to this: It is said that the Chairman is to be the spokesman of the Commission. Well, what is he to do? I think really it is an unrealistic approach to have a member of a body that does not have a vote on the body except on over-all matters like allocations.

I am now at the bottom of page 6 of my statement.

Furthermore, we see no reason in the nature of things why a mandatory division is more necessary in the case of the Commission than with respect to the other administrative agencies. We have examined the statutes which govern other Federal agencies with regulatory functions akin to those of the Commission, such as the Federal Power Commission, Securities and Exchange Commission, Civil Aeronautics Board, Interstate Commerce Commission. None of these agencies is required to divide itself into divisions. Moreover, with the exception of the Interstate Commerce Commission, none of the agencies do in fact utilize the division system. It should be pointed out that in the case of the Interstate Commerce Commission, there are 11 Commissioners and each Commissioner is permitted to sit on more than one division and the Chairman is likewise permitted to participate in the work of the divisions.

The Commission's opposition to the mandatory division system proposed in section 5 is not based in any measure on the desire of the Commissioners to handle everything themselves. On the contrary, there is much greater delegation of authority today than ever existed under the old division system which the Commission had in effect between 1934 and 1937. I have prepared exhibit 3, which shows in detail a history of growth of delegation of authority by the Commission.

As you will note from this exhibit, up to 1937 all of the work of the Commission was done either by the full Commission or by Commissioners in the divisions. No delegation of authority to others existed. Beginning in 1937 with the abolition of the divisions, the Commission instituted a system of handling its work by delegating authority to individual Commissioners and to the staff with respect to many

matters.

The steady growth of this delegation is shown in exhibit 3. The full extent of that delegation today is shown in exhibit 4, which consists of the Commission's present rules and regulations containing delegations of authority.

As a result of this delegation of authority most of the routine work which was formerly acted upon by Commissioners is now acted upon. by the staff. This leaves the Commissioners much freer to handle questions of policy without being concerned with the details of dayto-day operation.

While, for the reasons just enumerated, the Commission is opposed to the type of mandatory divisions which are prescribed by section 5 of the proposed bill, we do believe that there is one very important consideration which operates in favor of some kind of a division of the Commission.

The point is simply this:

We feel that our work in each of the three major fields of activity could perhaps be further improved if the Commission itself were organized somewhat along the same lines that the three departments are organized so that there would be definite and formalized leadership at

the Commission level in each of these fields. Moreover, the burden of the Commission's work in all fields has increased at an amazing rate and it is becoming more and more difficult for all seven Commissioners to devote the necessary time to a detailed study of every problem in each of the three major fields. This again in our view points to the desirability of some type of specialization.

At the present time the Commission has under study the question of whether it would be desirable to establish divisions on a voluntary basis pursuant to the provisions of the present statute which permit, but do not require, the Commission to organize itself into not more than three divisions if it finds that it is desirable to do so. One plan-and this is cited for purposes of illustration only-that we have under study at the present time contemplates three divisions, each to be composed or four members: a Broadcast Division, a Common Carrier Division, and a Safety and Special Services Division. Each division would have a chairman, who would serve on that division only.

In that way, you would have on each of those divisions one man who would be completely free of all other work, and who would be able to devote his entire time to supplying leadership in that particular field of activity. All other Commissioners would serve on two divisions. And it has been suggested that the Chairman of the Commission might serve on all three fields of Commission activity.

Where a division is evenly divided-2 to 2-the matter automatically would be referred to the entire Commission. Such a system would insure executive leadership in each field and at the same time would preserve the advantage of securing the judgment of the full Commission on all important questions of policy.

Of course, it is not possible to put any division plan into effect before the end of the summer since at the present time three Commissioners are devoting practically full time to their work in Atlantic City in connection with the three International Telecommunications Conferences which are taking place there. This leaves only four Commissioners who are regularly in Washington. As soon as these conferences are over and there is a full Commission in Washington, the Commission will further consider the division system I have outlined. In passing it should be observed that the very fact that it is necessary for three Commissioners to be in attendance at these international conferences is in itself a persuasive argument against a mandatory division system as proposed in section 5.

In short, we think division operation has merit but we oppose the mandatory provisions of section 5. We favor the retention of the authority contained in the present bill which permits but does not require the use of the division system and we fully agree that the voluntary division system should be given a new trial and we plan to do this in the fall.

The CHAIRMAN. May I interrupt you right there?

Have you studied this program you have in mind sufficiently to get it in draft form, so that it can be made available to this committee? Mr. DENNY. It could easily be reduced to draft form, yes.

The CHAIRMAN. I know that I would like very much to see it. I would like to see it on paper, and I am sure the other members of the committee would join me in that desire.

Mr. DENNY. I will ask the Law Department to draft up a form of order which could be adopted by the Commission, putting such a divi

sion system into effect, and I will supply it to the committee for the record.

The CHAIRMAN. I would very much appreciate having it.

Mr. DENNY. I would be very glad to do that.

The CHAIRMAN. I feel sure the other members of the committee would.

Mr. DENNY. Could we have week to supply that, sir?

The CHAIRMAN. Oh, yes.

Mr. DENNY. Thank you, sir.

(The draft referred to is as follows:)

Before the Federal Communications Commission, Washington 25, D. C.

IN THE MATTER OF AMENDMENTS OF PART I OF THE RULES AND REGULATIONS OF THE

COMMISSION

ORDER (DRAFT ONLY)

The Commission having under consideration a proposal to reorganize the Commission along divisional lines as authorized in Section 5 of the Communications Act of 1934, as amended; and

It Appearing, That such reorganization will serve the public interest, convenience and necessity; and

It Further Appearing, That the proposed changes are organizational and procedural and that the provisions of Section 4 of the Administrative Procedure Act are not applicable thereto;

It is Ordered, That Part I of the Commission's Rules and Regulations Be Amended in the following respects, effective 1947:

(1) The heading of Section 1.2 is revised to read as follows: "Composition of Commission."

(2) Section 1.2 (c) is deleted and new Section 1.2 (c) is adopted to read as follows:

"(c) The Commission is organized into three Divisions, namely, the Broadcast Division, the Common Carrier Division, and the Safety and Special Services Division. Each Division is composed of four members of the Commission who choose their own chairman. A member chosen as the chairman of a Division may not serve as a member of any other Division. The Chairman of the Commission is a member of each Division while the remaining Commissioners individually serve on two of the three Divisions. In case of a vacancy in any Division, or of absence or inability to serve thereon of any Commissioner, the Chairman of the Commission may designate a Commissioner to serve temporarily on said Division until the Commission orders otherwise. Three members of a Division constitute a quorum and the decision of a majority prevails. Where a Division is evenly divided (2-2) as to any matter before it, such matter is referred to the entire Commission for determination."

(3) The heading of Section 1.4 is revised to read as follows: "General description of Commission's staff organization."

(4) Add new Sections 1.6, 1.7 and 1.8 to read as follows:

"DIVISIONS OF THE COMMISSION

"§ 1.6 Broadcast Division, which performs those functions relating to broadcasting and delegated to the Division by the Commission in Section 1.105 of those Rules and Regulations.

"§ 1.7 Common Carrier Division, which performs those functions relating to common carrier communication by wire and radio and delegated to the Division by the Commission in Section 1.106 of these Rules and regulations.

"§ 1.8 Safety and Special Services Division, which performs those functions relating to specialized communications services and industrial uses of radio and delegated to the Division by the Commission in Section 1.107 of these Rules and Regulations."

(5) Section 1.11 is amended to read as follows:

"$ 1.11 SECRETARY.-The Secretary of the Commission is the custodian of its official records and of the records of the respective Divisions. He is responsible

for the preparation of the minutes which are the official records of action taken by the Commission and the Divisions, the processing of the correspondence and official papers, the administrative examination of applications, and certain functions relating to the internal management of the Commission and the Divisions. All orders, permits, licenses, or other instruments of authorization made, issued, or granted by the Commission or the Divisions are signed by the Secretary in the name of the Commission or the respective Divisions and authenticated by the seal of the Commission which is also the seal of the Divisions, unless otherwise specifically directed by the Commission. In the Office of the Secretary are the following units:

"(a) License Division.

"(b) Service Division.
"(c) Records Division.
"(d) Minute Section.

"(e) Library Section."

(6) Sections 1.101 to 1.107, inclusive are deleted and new Sections 1.101 to 1.110 inclusive are adopted to read as follows:

"§ 1.101. AUTHORITY FOR DELEGATION.—(a) Under the authority of Section 5 of the Communications Act of 1934, that portion of the work, business or functions of the Federal Communications Commission hereinafter specified is delegated, assigned and referred to the respective Divisions of the Commission, individual Commissioners, and employees of the Commission, hereinafter designated, for action thereon in accordance with the Communications Act of 1934, as amended, and the Rules and Regulations, Orders and established policies of the Commission. "(b) Any Division of the Commission, Commissioner, or individuals to whom authority is delegated shall have power and authority to consider and determine, order, certify, report, or otherwise act as to any of said work, business or functions so delegated, assigned or referred to it, and in respect thereof shall have all the jurisdiction and power conferred by law upon the Commission, and be subject to the same duties and obligations. Any order, decision, or report made or other action taken in respect to any matters delegated, assigned or referred shall have the same force and effect, and may be made, evidenced and enforced in the same manner as if made or taken by the Commission.

"(c) The entire Commission shall have and exercise jurisdiction over all matters with respect to which authority is not conferred by specific delegations in these Rules and Regulations.

"(d) Wherever, in these Rules and Regulations, reference is made to the Commission and to the exercise of Commission authority, such reference shall include the respective Divisions of the Commission with respect to any matter delegated to the Divisions by the Commission.

"§ 1.102. RECONSIDERATION WITH REGARD TO ACTION TAKEN UNDER DELEGATION OF AUTHORITY.—(a) Any person affected by an order, decision, or report or other action taken or made under any delegation of authority made herein may file a petition for reconsideration within 20 days after public notice is given of the action complained of, and every such petition shall be passed upon by the Commission. Appeals from action of the Motions Commissioner must be taken within 2 days in accordance with section 1.745 of the Rules and Regulations.

"(b) Within 20 days after public notice has been given of any action taken or made under a delegation of authority, the Commission or the authorized Division, Commissioner or individuals making or taking such action may set such action aside on its or his own motion; or the Commission, on its own motion may set aside any action taken or made by a Commissioner or the individuals so authorized.

§ 1.105 DELEGATION TO BROADCAST DIVISION.-The Broadcast Division shall have and exercise jurisdiction over applications relating to broadcasting (the dissemination of radio communications intended to be received by the public directly or by the intermediary of relay broadcast stations). This delegation of authority shall include jurisdiction over the following:

"Amplitude Modulation (AM, or standard).

"Frequency Modulation (FM).

"Television (TV).

"Non-commercial educational FM.

"International, Facsimile, Developmental and Auxiliary radio services (studio link and remote pickup).

§ 1.106 DELEGATION TO COMMON CARRIER DIVISION.-The Common Carrier Division shall have and exercise the authority vested in the Commission with respect to the regulation of common carriers of communication by wire or radio relating to the rates, services, facilities, accounts and records of such common carriers, and applications with respect to mergers and consolidations, interlocking directorates, radio station authorizations and cable landing licenses.

"§ 1.107 DELEGATION TO SAFETY AND SPECIAL SERVICES DIVISION.-The Safety and Special Services Division shall have and exercise jurisdiction over applications relating to or connected with communications for safety purposes, and the specialized uses of radio by industry, state and local government, and the general public. This delegation of authority shall include jurisdiction over such services as:

"Aeronautical Service.

"Marine Service.

"Railroad Service.

"Amateur Service.

"Industrial, Scientific and Medical Service.

"Highway Mobile Service.

"Urban Mobile Service.

"Utility Service.

"Police Service.

"Fire Service.

"Press Service.

"Forestry Service.

"Geophysical Service.

"Geological Service.

"Motion Picture Service.
"Provisional Service.

"Special Emergency Service.

§ 1.108 RESERVATION OF AUTHORITY-The entire Commission shall have and exercise jurisdiction over all matters not herein otherwise specifically delegated to a Division; over the adoption and amendment of its Rules and Regulations, including rules for the Divisions of the Commission; over the assignment of bands of frequencies to the various radio services; over the appointment and tenure of all officers and other employees of the Commission and the Divisions thereof; over applications for reconsideration of actions taken under a delegation of authority; and over all matters which fall within the jurisdiction of two or more of the Divisions established by these Rules and Regulations

§ 1.109 CONFLICTS OF AUTHORITY.-In any case where a conflict arises as to the jurisdiction of any Division or where jurisdiction of any matter or service is not allocated to a Division, the Commission shall determine whether the entire Commission or a Division thereof shall have and exercise jurisdiction, and if a Division, the one which shall have and exercise such jurisdiction.

"S 1.110 RECORD OF ACTIONS OF THE DIVISIONS.-All actions taken by the Divisions of the Commission shall be recorded each week in writing and filed in the minutes of the respective Divisions."

It is Further Ordered, That this Order shall remain in full force and effect to and including March 31, 1948, after which all amendments made herein shall expire and the rules and regulations herein revised and deleted shall be reinstated in their present form and content, unless otherwise ordered by the Commission. FEDERAL COMMUNICATIONS COMMISSION, T. J. SLOWIE, Secretary.

Mr. DENNY. Now, let me complete my first point here, and then I will depart from my statement a little bit.

I pointed out that nothing could be done while Commissioners Jett and Webster and myself are engaged in these three telecommunications conferences, because that would only leave four men in Washington, and four men are not quite enough to divide up.

But that very fact, Senator White, that it is necessary for three Commissioners to be away at these conferences, I think is a powerful argument against a mandatory division system, where you would take the seven Commissioners and put three on one division and three