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(6) All classes of stations in the Public Coastal and Fixed Public Services in Alaska;

(7) All classes of stations in the Utility Radio Service.

(k) All applications for restricted radiotelephone permits for use by operators of itinerant aircraft radio stations.

(1) Applications for mobile stations (other than those rendering a common carrier service) in the Emergency Services, Miscellaneous Services, Railroad Service and Utility Radio Service, where the applicant already holds licenses or

construction permits for stations of the type applied for; provided, however, that 3 such action shall be restricted to cases ;

(1) Where there is no question as to the eligibility of the applicant;

(2) Where the applications request frequencies currently available to the particular applicant in accordance with the frequency allocation plan of the Commission.

(m) Requests for assignment of call letters to new radio stations and for changes in the call letters of existing stations.

8 1.142 Authority delegated to Secretary upon securing approval of Engineering Department.— The Secretary, or, in his absence, the Acting Secretary, is designated to act upon the following matters upon securing the approval of the Chief Engineer or his nominee, with the exception of applications for restricted radiotelephone permit for use by operators of itinerant aircraft radio stations.

(a) Formal applications for broadcast services as follows:

(1) For construction permit, modification of construction permit, and modification of license, involving only a change in equipment with an additional cost not in excess of $1,000;

(2) To install frequency control equipment;
(3) Relating to auxiliary equipment;

(4) For authority to determine operating power of broadcast stations by direct measurement of antenna power ;

(5) For construction permit or modification of license involving relocation locally of a control point or transmitter site not involving any substantial change in service area;

(6) For remote pick-up and ST broadcast stations.
(6) The following applications for commercial radio operator licenses :

(1) All applications for new licenses except where it appears that the applicant has been convicted of a crime for which the sentence imposed was more than 1 year imprisonment or a $500 fine;

(2) All applications for renewal and modified licenses except where it appears that the applicant has been convicted of a crime for which the sentence imposed is more than 1 year imprisonment or a $500 fine. This exception does not apply to those cases where the same crime or crimes have been disclosed in previous applications for operator license granted by the Commission.

(c) All applications for new or modified amateur radio operator licenses or authorizations.

(d) Applications for new ship station licenses, for modification of ship station

licenses, and for special temporary authority to operate a ship station where these The

applications request authority to operate transmitting equipment on a cable 'marker buoy pursuant to section 8.65 of the Rules.

(e) Applications for construction permit, modification of construction permit and modification of license which involve only a change in equipment, except applications involving stations in the broadcast services and except applications falling under section 1.141.

(f) All applications for new licenses, modifications of license, special temporary authorizations for a period not to exceed three months and consent to assignment of licenses for aircraft stations on board nonscheduled aircraft, except where the applications fall within the provisions of section 1.141, and where the applicant is not a corporation controlled by another corporation.

$ 1.143. Authority delegated to Secretary upon securing approval of Law Department.The Secretary, or, in his absence, the Acting Secretary, is designated to act upon the following matters upon securing the approval of the General Counsel or his nominee:

(a) Broadcast service applications for modification of licenses involving only change of the name of the licensee, where ownership or control is not affected.

(6) Requests for inspection of records under the provisions of section 1.206. (c) All requests for withdrawal of papers in accordance with section 1.768. (d) Applications filed by attorneys for admission to practice before the Commission.

(e) The execution of contracts or leases in the name of the Commission,

(f) Applications under section 212 of the Communications Act for authority to hold the position of officer or director of more than one carrier subject to the act.

(g) The extension of the time previously ordered by the Commission within which transfers of control or assignments of licenses be effectuated.

§ 1.144 Authority delegated to Secretary upon securing approval of the Laro and Engineering Departments.-The Secretary, or, in his absence, the Acting Secretary, is designated to act upon the following matters upon receiving the approval of the General Counsel and Chief Engineer or their respective nominees:

(a) Applications for the utility, railroad, aviation, emergency, ship and miscellaneous services, and for State guard stations in the war emergency radio services, except those rendering a common carrier service and those falling under sections 1.141 and 1.142.

(b) Applications for class 1 and class 3 experimental stations and all applications for class 2 experimental stations both in established services and in the proposed General Mobile Service, the proposed Rural Radio Telephone Service, and for radar na vigational aid stations, except

(1) Those falling under sections 1.121 and 1.141.
(2) Those rendering or proposing to render a common carrier service.
(C) All broadcast service applications as follows:

(1) For extensions of time within which to commence and complete construction;

(2) For authorization to rebroadcast when Commission authorization is re quired under parts 3 and 4 of the Commission's Rules and Regulations;

(3) To withdraw authorizations for equipment and service or program tests where subsequent to the issuance of the original authorizations it appears that the terms of the construction permit have not been met.

(d) Applications or requests for emergency and renewal exemptions of ships, and intitial exemptions of ships of less than 100 gross tons, pursuant to the provisions of section 352 (b) of the Communications Act and article 28 of the Safety Convention.

(e) Proposals by FM broadcast stations to deviate from time schedules.

(f) Applications and requests for waiver of Rules, Regulations, and Orders of the Commission relating to the proper time for filing of renewals of Commercial and Amateur Radio Operator Licenses.

(g) Applications for new, renewal or modified commercial radio operator licenses except those falling under sections 1.141 and 1.142.

(h) Applications or requests for temporary operation by radio station licensees with a licensed operator of lesser grade than normally required or for waiver of other terhnical requirements for operators.

§ 1.145 Authority delegated to Secretary upon securing the approval of the Law, Engineering, and Accounting Departments.—The Secretary, or, in his absence, the Acting Secretary, is designated to ac upon the following matters upon securing the approval of the General Counsel, Chief Engineer and Chief Accountant, or their respective nominees:

(a) Applications for experimental class 2 stations both in established services and in the proposed General Mobile Service, the proposed Rural Radio Telephone Service, and the proposed Short Distance Toll Service, which render or propose to render a common carrier service, except those falling under Sections 1.121 and 1.141.

(b) Applications for the aviation, ship, miscellaneous, United States and Alaskan coastal and marine relay services and Alaskan fixed public services, except those falling under sections 1.121, 1.112, 1.121, 1.141, 1.142, and 1.144.

(C) Applications for special temporary authorizations other than those falling under Sections 1.112, 1.121, 1.141, 1.142, and 1.144.

(d) Applications or requests under section 214 of the Communications Act for a certificate authorizing the construction, acquisition, operation or extension of lines, or for an authorization of temporary or emergency service, or the supple. menting of existing facilities, where the total expenditure involved is less than $257.000; and all applications or requests for modification of a certificate of avthorization issued under section 214 of the Communcations Act where such amendment or modification involves less than a total expenditure of $250,000.

(e) Applications under section 214 of the Communications Act for an authorization for temporary or emergency closures or reductions of hours of telegraph offices, and for any closure, or reduction of hours, of a telegraph office at a military establishment and informal requests for authority to discontinue, reduce, or impair service filed pursuant to the provisions of sections 63.63 through 63.68, inclusive, of the Commission's Rules and Regulations.

(f) Applications from existing licenses for instruments of authorizations for the agriculture, fixed public or fixed public press radio services, except applications involving:

(1) New points of communication not already licensed to a station of the licensee at some other location and not already authorized by an outstanding construction permit;

(2) Changes in transmitter location other than local in character;

(3) Assignment of additional frequencies not already assigned to a station of the licensee at some other location ;

(4) The establishment of a new type of service.

(9) All broadcast service applications involving only a change in equipment with an additional cost in excess of $1,000, for construction permit, modification of construction permit, and modification of license.

(h) Applications in the broadcast service for license following construction where the applicant has complied with all the terms of the construction permit.

$ 1.146 Authority Delegated to the Secretary upon Securing the Approval of the Law and Accounting Departments. The Secretary, or the Acting Secretary, is designated to act upon the following matters upon securing the approval of the General Counsel and Chief Accountant, or their respective nominees :

(a) Applications or requests for extensions of the time prescribed in Section 43.51 of the Rules and Regulations for the filing of documents specified therein.

$ 1.147 Record of actions taken.-All action taken by the Secretary in accordance with sections 1.141-1.146 shall be recorded each week in writing and filed in the official minutes of the Commission.

EXHIBIT 5

SECTION 1.321 OF THE RULES AND REGULATIONS OF THE FEDERAL COMMUNICATIONS

COMMISSION APPLICATION FOR VOLUNTARY ASSIGNMENT OR TRANSFER OF CONTROL; BROADCAST (AVCO PROCEDURE)

(a) Applications for consent to the assignment of a construction permit or license for an AM, FM, television or other broadcast station or for consent to the transfer of control of a corporation holding such a construction permit or license shall be filed with the Commission on FCC Form No. 314 (Assignment of License) or FCC Form No. 315 (Transfer of Control). Each application shall be accompanied by a copy of a proposed notice in a form prescribed by the Commission which notice the licensee or permittee shall cause to be published at least twice a week for the 3 weeks immediately following the filing of such application in a daily newspaper of general circulation published in the community in which the station is located. The notice shall state the terms and conditions of the proposed assignment or transfer, the name of the proposed assignee or transferee, and, further, that any other person desiring to purchase the facilities upon the same terms and conditions may file an application to this effect with the Federal Communications Commission within 60 days from the date of the first publication of the notice, which date shall be expressly set forth therein. Upon receipt of the application, the Commission itself will issue a similar public notice stating the terms and conditions of the proposed sale and stating that others may file competing applications for the same facilities upon the same terms and conditions.

(b) No action on any such application will be taken by the Commission for a period of 60 days from the date of first publication, during which time any person desiring to purchase the facilities upon the same terms and conditions may file a competing application. In the case of such competing application, it shall be necessary for the applicant to execute only so much of the application form as relates to the proposed assignee or transferee_F. C. C. Form No. 314, part II, and Form No. 315, part III.

(c) If no competing application is filed during this 60-day period, the Commission will consider the original application upon its merits and will grant it if it appears from an examination of the application and supporting data that public interest will be served thereby; otherwise it will be designated for hearing. If, during such 60-day period, any other application is filed, all such applications will then be considered simultaneously upon their merits, and if, upon such consideration, it appears that the proposed assignee or transferee selected lig the licensee is the best qualified and that the transfer would otherwise be in the public interest, the Commission will grant the original application without a hearing If the Commission is unable to make such a determination upon consideration of the several applications, the original application and all competing applications will be designated for hearing, to be heard in a consolidated proceeding, to determine among other things which of the applicants is best qualified to operate the station in the public interest.

(d) If, at the conclusion of such hearing, the Commission is of the opinion that the proposed assigneee or transferee selected by the licensee is the best qualified and that the transfer is otherwise in the public interest an order will be entered granting the original application. However, if the Commission is of the opinion that one of the other applicants is the best qualified and that a transfer is otherwise in the public interest, an order will be entered denying the original applica. tion and stating that the Commission's consent to an assignment of the license or construction permit or to the transfer of control of the corporate licensee or permitted to such competing applicant will be given provided the licensee or permittee and such competing applicant enter into and file with the Commission within 30 days from the date of such order a contract for the assignment of the license or construction permit, or the transfer of control of the licensee or per: mittee, to such competing applicant upon the same terms and conditions as statni in the original application or upon such other terms and conditions as the parties may agree upon and which new terms and conditions the Commission shall find to be in the public interest.

(e) The provisions of this section insofar as they apply to requirements for advertising in connection with applications for assignment or transfer of control shall not apply to the following cases :

(1) Where there is a reorganization of a corporation holding a license or construction permit which involves no substantial change in the beneficial ownership of that corporation;

(2) Where there is an assignment from an individual or individuals to a corporation owned and controlled by such individual or individuals without any substantial change in their respective interests or from a corporation to the individual stockholders controlling such corporation when there is no substantial change in their respective interests ;

(3) Where there is an assignment or transfer by way of gift or testamentary disposition of a license or construction permit or of a controlling interest in a corporate licensee or permittee; or an assignment or transfer of a license, permit or interest to effect such testamentary disposition. This section shall, however, apply to an assignment or transfer by an administrtaor or executor to persons other than the lawful heirs or legatees of the licensee or permittee or to trusties or beneficiaries other than those designated in the licensee's or permittee's will or other testamentary instrument.

(4) Where the interest being transferred, if acquired by a person other than the proposed assigneee, would not result in such person acquiring control. The Commission, however, will scrutinize carefully successive transfers to the same person or persons to determine whether such transfers are for the purpose of evading compliance with this section.

(5) In the case of any other assignments or transfers where the parties are in doubt as to whether the provisions of this section are applicable, or are of the opinion that if the section is applicable, the requirements should be waived, the application may be filed with a request for a ruling as to whether the section is applicable or with a petition for waiver of the rule. The Commission will determine on the facts of each case whether the section is applicable or whether public interest will be served by a waiver of the rule.

Exhibits submittted by Justin Miller, president, National Association of Broadcasters:

[Booklet 1]

THE BLUE BOOK?

An analysis by Justin Miller, president, National Association of Broadcasters

A REQUEST FROM REPRESENTATIVE HARRIS ELLSWORTH

Hon. JUSTIN MILLER,
President, National Association of Broadcasters,

Washington, D. C.
DEAR JUDGE MILLER: The Federal Communications Commission has lately given
each member of the Interstate and Foreign Commerce Committee a copy of the
Commission's programing study which is generally referred to as The Blue
Book. This is a very interesting publication.

It occurs to me that the National Association of Broadcasters may have made a study of this Blue Book, and may have some opinions regarding it. would be willing to do so, I would like very much to have not only a summary of NAB opinion, but would like to have your own observation regarding The Blue Book. With best wishes, Sincerely,

HARRIS ELLSWORTH.

If you

A REPLY BY JUDGE JUSTIN MILLER

Hon. HARRIS ELLSWORTH,
Member of Congress from Oregon,

House of Representatives, Washington, D. C. DEAR MR. ELLSWORTH: It is a pleasure to respond to your request for observations concerning the Blue Book issued by the Federal Communications Commission. For convenience, I shall organize my reply in systematic form as follows:

I. As the comments which follow this one will be critical of the FCC, let me say, first, that

(a) I am fully aware of the importance of the Commission's work;

(b) Within the proper scope of its authority there is a tremendous task to be done which is now being well done;

(c) Within this area of its proper authority, Chairman Denny, other Commissioners and members of the Commission staff are now working with me and with the broadcasters, generally, on a very friendly and cooperative basis;

(d) I have not the slightest desire to provoke unpleasantness or conflict with the Commission;

(e) However, as the Commissioner has not repudiated its Blue Book or withdrawn its assertions of undelegated power, it is necessary

1. To insiste that the Commission's proper duties could be better performed-at less expense if it were relieved of responsibility for performance of duties improperly assumed ;

2. To define the issues and present the case of the broadcasters, in opposiion to those assertions of power. II. In response to the suggestion that “the broadcasters approve the Blue Book":

(a) A few broadcasters with guilty consciences--and who failed to understand the implications of a default judgment—accepted the judgment of the Commission, in toto.

(6) Most of the broadcasters disapproved, very decidedly, because the Blue Book, after presenting a few instances of alleged poor performance, gave to the

1 This booklet reprints in full an exchange of letters between Harris Ellsworth, Member of Congress from Oregon, and Justin Miller, president of the National Association of Broadcasters. Mr. Miller's letter projects in detail, as requested by Representative Ellsworth, the policy of the NAB and the convictions of its president on the Blue Book. Both letters are reproduced with the permission of Representative Ellsworth who requested the information in his capacity as a member of the Committee on Interstate and Foreign Commerce of the House of Representatives. May 22, 1947.

2 The Blue Book is the popular title of a booklet issued as Public Service Responsibility of Broadcast Licensees, by the Federal Communications Commission on March 7, 1946.

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