First Annual Report of the
Federal
Communications Commission
To the Congress of the United States
For the Fiscal Year 1935
Herbert L. Pettey, Secretary
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1936
For sale by the Superintendent of Documents, Washington, D. C. • Price 15 Cents
FIRST ANNUAL REPORT OF THE FEDERAL
COMMUNICATIONS COMMISSION
FEDERAL COMMUNICATIONS COMMISSION,
Washington, D.O., January 6, 1936.
To the Senate and House of Representatives of the United States of
Amerioa in Oongress assembled:
Herewith is submitted the First Annual Report of the Federal
Communications Commission covering the fiscal year ended June
30,1935.
The Federal Communications Commission was established by an
act entitled" Public, No. 416 ", Seventy-third Congress, approved
June 19, 1934, for the purpose of regulating interstate and foreign
commerce in communication by wire and radio so as to make avail 
able so far as possible, to all people of the United States, a rapid,
efficient, Nation-wide, and world-wide wire and radio communication
Eervice with adequate facilities at reasonable charges, for the purpose
of the national defense, and for the purpose of securing a more
effective execution of this policy by centralizing authority heretofore
granted by law to several agencies and by granting additional
authority with respect to interstate and foreign commerce in wire
and radio communication.
This act further provided for the transfer to the Communications
Commission of all officers and employees of the Federal Radio Com 
mission (except the members thereof whose offices it abolished)
whose services were deemed necessary to the efficient operation of the
new Commission. It also provided for the transfer of all records
and property formerly under the jurisdiction of the Federal Radio
Commission and all records under the jurisdiction of the Interstate
Commerce Commission and of the Postmaster General relating to the
duties, powers, and functions imposed upon and vested in the Com 
mission by the Communications Act.
On July 11, 1934, the following persons, having been appointed
by the President, took the oath of office as Commissioners, thus estab 
lishing the Federal Communications Commission:
Eugene O. Sykes, appointed for a term of 7 years.
Thad H. Brown, appointed for a term of 6 years.
Paul A. Walker, appointed for a term of 5 years.
Norman S. Case. appointed for a term of 4 years.
Irvin Stewart, appointed for a term of 3 years.
George Henry Payne, appointed for a term of 2 years.
Hampson Gary, appointed for a term of 1 year.
Commissioner Hampson Gary resigned as a member of the Com 
mission on January 1, 1935. To fill his unexpired term, the Presi-
1
2 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSIOK
dent appointed Mr. .A.nning S. Prall, and Mr. Prall was later
reappointed for a term of 7 years beginning July 1, 1935.
On July 11, 1934, there were 121 employees at the seat of govern 
ment and 112 employees in the field service.
On July 17, 1934, the Federal Communications Commission or 
ganized its divisions in keeping with the Communications Act.
Three Divisions (i. e. Broadcast, Telegraph, and Telephone), com 
posed of two members each, were created with the Chairman of the
-Commission serving ex offico as a member of each Division.
At the close of business on June 30, 1935, the Commission's staff
was composed of 329 employees at the seat of government and 113
€mployees in the field service.
ANNING S.. PRALL, Ohairman.
REPORT OF THE SECRETARY
HERBERT L. PETrEY
For the fiscal year ending June 30, 1935, there was appropriated
$1,146,885. This sum is accounted for as follows:
BALABIES AND EXPENSES
01 Personal services _
02 Supplies and materials _
0236 Gasoline and oIL _
04 Storage and care of vehicles _
05 Communication service _
06 Travel expeoses _
0610 Car fare _
07 Transportation of things _
082 Stenographic reporting _
10 Heat, Ught, power, and water _
11 Ilents _
12 Repairs and alterations _
13 Special and miscellaneous _
30~ulplnent--------------------------------------
$893,571
34,684
928
2,005
9,980
28,928
1,621
462
2,033
3,692
5,065
10,509
956
131,165
'rotal 1,125,599
PRINTING AND BINDING
10,676
2,842
13,518
3
02 Printed fOrIns and letterheads _
08 Printing and blndlng _
---
~otal~-----------_
[ page 4 in the original document ;s intentionally blank]
ANNUAL REPORT
LICENSE AND RECORDS SECTION
,Vy. P. l\IASSING, Ohief of Section
The Federal Communications Commission continued the licensing
of radio operators and stations in accordance with applicable provi 
sions of treaty, law, and regulations.
In the reorganization that followed the Communications Act of
1934, this section remained intact and in accordance with the provi 
sions of section 214 of the act the section was charged with the
additional duties of examining applications for the construction and
the issuance of authorizations of new telegraph, telephone, and cable
lines and/or' the extension of existing lines.
To comply with the Commission's Order No.1, six radio services
were transferred from the Commercial Unit to the Broadcast Unit.
Collaborating with the Engineering and Law Departments, a com 
plete revision of the Commission's application and authorization
forms was effected.
The following is a detailed report, arranged according to service,
showing the number of new st"tions authorized, number of stations
deleted and the total number of authorized radio stations as of June
30, 1935:
Nature of serV"ice aud class of station
1~a~~~AJ~:t~·~i~~~~~~~~~_-.~::===:::::::::::::::::::::::
Aviation:
AeronauticaL~_
1r:::t~:I~~_~~~~~:~.~~i.~:::::::::::::::::::::::::::::::::::::
Aircraft _
Marker beacon • _
Broadcast: Broadcast. • _
Emergency:
MarIne fire _
~~l~~:m~r~~~~~~~~::::=:=:=:=====:=:=:::=:::::::::::::::::::::
Special emergency ._••• _
Experimental:
~~~1~lle;~~~~~I~-_~~:::::::::::::::::::::::::::::::::::::::
Experimental relay broadcasting _
Experimental visual broadcasting •••__
Experimental broadcast _
Fixed public:
Point·to·point telegraph • _
Point-to-point telephone , ••••••__
Fixed public press: Point·to,point telegraph •
4
_
~~fg:;~~;:'tfu~i~~S~~~y::::::::::::::::::::::::::::::::::::::::
Mobile press: Mobile press • •
N,w
stations
authorized
o
7,416
62
43
13
136
,
39
o
41
32
7
616
61
o
1
o
38
16
o
22
•
1
Total num 
Stations ber of 8t8 
deleted tiona June
30, 1935
0
,
8,245 45,561
19 193
0 96
12 27
21' '59
0 3
9 623
0 2
0 194
1 ..
1 44
231
84'
52 126
0
"6 21
0
•
38
'77
10 III
1 77
6 131
1
••
0
•
5
6 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
Nature of service and class of station
New
statiobS
authorized
Stations
deleted
Total num 
ber of sta. 
tions June
30, 1935
110
•
37
,
•
1,961
34
1
51,074
•
1
8
•
o
404
6
o
•• 280
4
1
I'
o
o
347
4
o
8,807
:Public coastal:
gE~:bTir~~b~:::=:=::::::::::::::::::::::::::::::::::::::::
Private coastal:
g=~lte~~~~~_-.:::::::::::::::::::::::::::::::::::::::::::::
~~i:~~i~~~~:~~:~~~~;;;;;;;;;;;;:;;;:;;;;;;;;;::;;;;;;:;::
1---'-1---1--,,--
TOt81. __~•• ._. ••_. •••• ••_••_. __
AMATEUR
In the Amateur Unit is concentrated the work of licensing amateur
radio operators and stations, applying the provisions of law and
regulations governing such issues. Due to the numbers of applicants,
this work involves a great deal of detail in grading examinations
for the operator licenses, scrutiny of applications, signature and is 
suance of license for those approved, assignment of call signals, and
maintaining the related records and correspondence.
The work is planned to handle volume. Suitable form letters are
frequently prepared; of 16,881 letters emanating from the Unit dur 
ing the year; 15,248 were form letters and 1,633 drawn specially.
The amateur s operator and station licenses are issued on opposite
sides of pocket-size form, designed as part of a printed assembll
that includes also seven card records of both for the Commission s
offices in Washington and the field. Applications are also made on
a joint form, usable in applying for both operator and station
licenses. Counting as one, each such application whether made for
both licenses or for only one of the two, the total handled during
the fiscal year is given by the following fignres :
AMATEUR RADIO APPLICATIONS
Receipts:
Pending July 1. 1934_____________________________________________ 156
]Received during the fiscal year 31,275
Total 31,431
Disposals:
Approved 19.182
lleturned to appIicants 5,353
lleferred to other Federal agencies, etc___________________________ 385
Failed requirerl examinatlons_____________________________________ 5,002
~ot.l29,952
Pending close of June 30, 1935__________________________________ 1,479
The return of applications without approval occurred for various
reasons precluding license, such as lack of citizenship by the appli 
cant or by the person in control of the station premISes, or miscon 
ception of the proper use of an amateur station, while many more
had only formal defects, curable by amendment of the applications.
Thus a substantial number of those returned to applicants were re-
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 7
ceived and counted a second time. The same is true of those referred
to other offices, commonly due to proposed use of Federal premises.
In another sense the foregoing figures include some duplication, in
that often an applicant failing an examination, applies again and is
reexamined after a lapse of 90 days required by regulation.
The majority of approved applications were for both operator and
station licenses, including reissues for the purpose of .bringing co 
terminous on the joint card form the amateur's operator and station
licenses formerly issued as separate documents at different times and
for different periods. All issues exceeded 100 per day, as follows:
AMATEUR RADIO AUTHORIZATIONS
Station licenses:
~eV{7,416
Itenevvals 2,725
Modifications and reissues ... 7.597
Total 17.738
===
Operator licenses 17,532
Operator license endorsements_______________________________________ 904
Duplicates of lost or destroYed licenses_______________________________ 351
Tota!. 18,787
===
Grand total L 36,525
During the past fiscal year the licenses of 29 amateur operators
were suspended or withheld, in nearly all cases fur a period of 6
months, while 94 others who had not qualified were debarred from
examination, usually for like period. One license was ordered sus 
pended for 2 years and another obtained by fraud was ordered can 
ce
ed.Only five amateur station licenses were revoked.
TOTAL NUMBER OF AMATEUR STATION LICENSES
Valid of record July 1, 1934 46,390
Issued dUring fiscal year, new_______________________________________ 7,416
Total 53,806
Less:
Cancellations____________________________________________________ 2,551
Other deletions__________________________________________________ 839
Expirations (renewal yet possible) approximately 4,850
Ftevocations_____________________________________________________ 5
Total~8,245
=
Net close of June 30, 1935 45,561
This Unit also maintains the one complete record of licenses of
various professional classes required to qualify radio operators for
service at any of the numerous kinds of transmitting stations main 
tained by commercial interests. To permit quick service in connec 
tion with sea, air, and land stations, the licensing in such cases is
decentralized, with 22 offices of issue. Examinations, failures, license
issues, renewals, endorsements, etc.: are reported for posting ('u the
Commission's central record. Durmg the fiscal year 7,466 such re-
8 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
ports were received for record. A large number of the licenses were
of radiotelephone third class, for operation of police transmitters,
for which the requirements are relatively simple.
Due to improper acts in connection with the operation of a broad 
cast station, the Commission suspended the licenses of three opera-
tors during the year. .
BROADCAST
The consolidation of the old records of the Radio Division of the
Department of Commerce with those of the Commission for the
purpose of maintaining a complete record of each broadcast station
from the beginning of control of broadcast stations by the Federal
Government was continued.
The records pertaining to the following classes of radio stations
that were transferred from the Commercial Unit were revised:
Experimental relay broadcasting.
Experimental visual broadcasting.
Experimental broadcasting.
Broadcast pick-up.
General experimentaU
Special experimental.'
A complete set of records was devised and installed to comply
with the provisions of the Communications Act of 1934 requiring
that applicants l?rocure authority to transfer the control of corpo 
rations and obtaIn permits to locate, maintain, or use studio or ap 
paratus for the production of programs to be transmitted or delivered
to foreign radio stations.
The work of·the Unit may best be summarized by the following
tables:
TABLE I.-OompariBem. of GppUCatlom received and authorizations issued dur 
ing the fiscal gears 1981, 1932, 1939, 1934, and 1935
'''''
1932 1933
10"
1935
----------1----------
Applications recelved • ••_._ 3,784
Authorizations issued••• 3,2.13
2,519
2,534
2,193
2,446
2,690
~""
3,652
3,434
Applications received and instruments of authority issued com 
prised construction permits, licenses, modifications of construction
permits and licenses, consent to voluntary or involuntary assignments
of construction permits and licenses, extension 0:£ licenses, installation
of automatic frequency-control equipment, special authorizations,
emergeucy authorizations, consent to transfer control of corporations,
and permits to locate, maintain, or use studio or apparatus for pro 
duction of pFograms to be transmitted or delivered to foreign radio
stations.
In addition to the applications shown in table I, there were
received in the Unit 1,487 informal applications, which consisted of
requests for (1) extension of equipment and program test periods,
1 All matters relating to or connected with this cIass of station concerning the develop 
ment of apparatus for any service assigned to the Bl'oadcast Division.
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION~
(2) to operate for a limited period of time in a manner not set forth
in a regular license or authorized by regulations, (3) to depart from
hours of operation as authorized, and (4) to partially or wholly
suspend operation of a station. There were also issued 442 informal
authorizations consisting of letters, telegrams, and deviations from
time-sharing agreements.
TABLE II.-N611) stations autho1'ized (total 39)
250 Daytime.
Call letters
KABR _
KADA _
KALB _
KAST _
KELD _
KFRO.~
KFUH _
KHSL _
KINY_..__ .
K!UJ.._..__
KIUL.__~.__
KIUN~_
KIUP••••.•_
KPLC. __ . __
KRLC..._._
KROC•.••._
KVOL..._._
KVSO __ . __ .
KWBG.. _
WAIM ._
WOML_.__
WFMD.. _
WI80 ••__
WMFD _
WMFF. _
WMFG _
WMFH _
WMFL ._
WMFJ _
WMFN .
WMFO. _
WMl"R-__ ._
WNBC _
WNRI.._.__
WPAR__ . __
WPRP. _
WTAL •
WTMV" ..
WWPA _
Applicant and location
Aberdeen Broadcasting Co., Aberdeen, 8. Dak _
C. C. Morris, Ada, OkIlL _
Alexam:lrla Broadcasting Co., Inc., Alexandria, La _
Abraham Shapiro, Astoria, Oreg .. _
T. H. Barton, EI Dorado, Ark _
Voice of Longview, Longview, Tex _
Richard Field Lewis, Del Monw, CaliL. _
Wm. Schield, Sydney R. Lewi'!, and Harold Smithson,
trustees Oolden Empire Broadcasting Co., Ltd.,
Chico, Calif.
Edwin A. Kraft, dfb as Northwest Radio Advertising
Co., Juneau, Alaska.
J. H. Speck, Santa Fe, N. Mex _
Garden City Broadcasting Co., Homer A. Ellison and
Frank D. Conard, Oarden City, Kans.
Jack W. Hawkins and Barney H. Hubbs, Pecos, Tex_
Le Roy Haley, Durango, 0010 _
T. B. Langford, R. M. Dean, and L. M. Sepaugh,
Calcasieu Broadcasting Co.,J~akeCharles, La.
H. E. Studebaker, Lewiston, Idaho . _
Southern Minnesota Broadcasting Co., Rochester,
Minn.
000. H. Thomas, Robert M. Dean, L. M. Sepaugh,
and T. B. Lanford, dfb as Evangeline Broadcasting
Co., Lafayette, La.
The Ardmoreite Pubilshinll: Co., Inc., Ardmore, Okla__
W. B. Oreenwald, Hutchison, Kans _
Wilton E. Hall, Anderson, 8. C _
The Ashland Broadcasting Co., Ashland, Ry _
The Monocacy Broadc!lrsting Co., Frederick, Md _
Milwaukee Broadcasting Co., Milwaukee, Wis _
Richard Austin Dunl('a, Wilmington, N. C _
Plattsburg Broadcasting Corporation, Plattsburg,
N. Y.
Head of the Lakes Broadcnst.ing Co., Hibbing, Minn._
Joseph M. Kirby, Boston, Mass .. .. _
Patrick J. Goode, New Haven, Conu . __ .. ._
W. Wright Esch, Daytona Beach, Fla . ._._.. _
Attalanroadeastin~Corporation, Clarksdale,Miss.~_
James R. Doss, Jr., Deeatur, Ala__ . __ . __ _._. __
Hart & Nelson (J. A. Hart and W!l3-"ne M. Nelson),
HIgh Point, N. C.
William J. Sanders, New Britain, Conn__ ...__ ._.. _
S~George Webb, Newport, R. L.~__ ._"
Ohio Valley Broadcasting Corporation, Parkersburg,
W. Va.
Julio M. COllesa, Ponce, Puerto Rico.~._._._
Florida Capitol Broadcasters, Ine., Tallahassee, Fla..
Mississippi Vaney Broadcasting Co., Inc., Ea.'!t St.
Louis, m.
Clarion Broadcasting Co., Inc., Clarion, Pa..__ ._. _
F",·
quaney
Kilocvclea
1,420
1,200
1,420
1.370
1,370
1,370
1,210
900
1,310
1,310
1,210
1,420
1,370
1,500
1,420
1,310
1,310
1,210
1,420
1.200
1,310
900
1,310
1,370
1,310
1.210
1,120
000
1.420
1, 210
1,370
1,200
1,330
1,200
1,420
1,420
1,310
1,500
850
Power
Watta
100
100
100
100
100
100
100
250
100
100
100
100
100
100
100
100
100
100
100
100
100
'00
100
100
100
100
500
500
100
100
100
100
2.'iO
100
25O--L8
100
100
25o--r.S
100
100
Hours of
operation
Daytime.
Do,
Do,
Do.
Unlimited.
Daytime.
Unlimited.
Daytime.
Unlimited.
Do.
Do.
Do,
Do.
Do.
Do.
Do.
Do.
Daytime.
Unlimited.
Do.
Do.
Daytime.
Do.
Do.
Do.
Unlimited.
Daytime.
Do.
Unlimited.
Do.
Daytime.
Do,
Do.
I.Tnlimited~
Do,
Specifled~
Unlimlted~
Do.
Of the 39 new broadcast stations authorized during the year, 31
were authorized under the provisions of section 307 of the Communi 
cations Act and were not charged to quota.
10 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
TABLEIII.-Station.~consolidated (totd 2)
Date of con·
Oall letters and locatIon of
Call letters Grantee and location
soUdatlon
station with which consol-
Idated
WLIT_____ ._
WFILBroadCQstl~Co., Philadelphia, Pa. Feb. 12,1935 WFIL, Philadelphia, Po..
WDAO._____
Plain!! Radio Bra ca.';tlng Co., Amarillo, June 4,1935 KONe, Amarillo, Tex.
T"",
TABLE IV.-Stations deleted (total 7')
Call letters
KGIX•• _
KWFV. .
WAMC•.......
WJEM ._._••
WKFL._...•.•
WNBO _
WWPA _
Grantee snd location
J. M. Heaton, Las Vegas, Nev. (0. P. only). Construction permit ex 
pired Apr. 26, 1935; construction not completed within required time.
The HUoBroadC8stln~Co., Ltd., Hilo, HawaU (0. P. only). Construc 
tion permit expired Sept. I, 1934. No application for extensIon of time
filed.
Raymond C. Hammett, Anniston, Ala. (C. P. only). Construction
permit expired Jan. 10, 1935. AppUoation for modification construc 
tion permit returned and no further application received.
Britt A. Rogers, Jr., Tupelo, Miss. (C. P. only). Construction permit
expired Auj:\'. 1, 1934. No appl1('atlon for extension of time nor appU.
cation for license flIed.
J. Pat Scully, Greenville Miss. License expired. No application for
renewal ot license filed.
John Brownlee Spriggs, Silver Haven, Pa. Licensee voluntarily sur·
rendered license.
Clarion Broadcastine Co., Inc., Clarion, Pa. (C. P. only). Construc 
tion permit exptred. Jan. 11, 19305. Commission denied appUcation
for modification ot construction permit Mar. 26, 1935.
Date of
decIsion
May 14,1935
Apr. 16,1935
May 14,1935
Oct. 2,1934
Oct. 3,1934
Mar. 15,1935
Apr. 15,1935
Three complete lists of radio broadcast stations authorized by the
Federal Communications Commission, arranged (1) al.l.'habetically by
call signal, (2) alphabetically by State and city, and (3) numerically
by frequency, were compiled and prepared for distribution. Monthly
supplements to these lists have been prepared for distribution to the
general public. ,
There was also published a list of the visual broadcast stations and
relay broadcast stations.
COMMERCIAL
There were received in the Unit a total of 8,221 applications as
compared with 8,139 during the previous fiscal year. There were
issued 7,722 instruments of authority as compared with 7,336 for last
year.
Of the applications received, 256 were returned because they were
improperly executed, contained insufficient information, or were other 
wise defective. In each case a letter was written informing the
applicant of the defect.
TABLE V.-QomparlBon of applicatiOfl8 received and aut1wrization.g iS8'Uea during
the fiscal vear8 19tH, 1932, 1933, 1934:, aM 1985
1931 1932 193' 1934 193,
Appllca.tioDS recaived•..._. _. __ • __ •_______
6,246 5,515 6,837 8,139 8,231
AuthorIzations issued..•........•.•_______
5,395 6,053 6,617 7,336 7,722
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 11
Applications and authorizations shown in the above table com 
prised construction permits, modifications of construction permits,
licenses, modification of licenses, renewal of licenses, and assignments
of construction permits and licenses.
The CommisslOn on January 11, 1935, authorized a new class of
station in the aviation service, i. e., airway obstruction ffia-rker bea 
con. Three stations of this type were authorized during the year.
The Commission granted 3 telephone and 3 telegraph applica 
tions authorizing additional wire line facilities.
During the fiScal year there were received 2,969 applications for
ship radIO station licenses including modifications and renewals, and
2,920 authorizations were issued including telegraphic communica 
tions authorizing emergency operation.
On June 30, 1935, there were 1,961 ship stations licensed aboard
vessels of United States registry, including 195 vessels operating on
the Great Lakes. Approximately 275 ships are compulsorily
equipped with radio telegraph apparatus and the remainder are
voluntarily equipped.
Approxunately 1,846 vessels have been authorized for regnlar
maritime service, communicating with other ships and coastal tele 
graph stations. Twenty-six have been authorized to communicate
on a designated frequency with specified coastal harbor telephone
stations and 27 have been granted authority to operate on the gen 
eral frequency 2,738 kilocycles for communication between ship har 
bor stations, either telephone or telegraph.
There are three municipal fire boats authorized to operate on a
specified frequency and 58 vessels operating on specific frequencies
allocated for Alaskan waters.
Fifteen vessels, yachts operating outside of general traffic lanes,
and vessels on special scientific expeditions, have been granted spe 
cial permission to communicate with amateurs for periods of from 1
to 12 months.
The system of assigning call signals for all radio stations
l
ex 
cepting amateur, was revised during the past year. This reVIsion
required the preparation of some 40,000 cal cards with the necessary
information for identification for the calls already assigned.
Eleven hundred seventy-eight call signals were assigned during
the past fiscal year.
The Radio Service Bulletin containing in tabular form a complete
record of all new assignments, changes and deletions relative to
all classes of radio stations, commercial and Government, in the
United States and its possessions was issued semimonthly.
REPORT OF THE EXAMINING DEPARTMENT
DAVIS G. ARNOLD, CMef Examiner
Upon its organization on July 11, 1935, the Federal Communica"
tions CommiSSIOn continued the employment of the examiners of the
Federal Radio Commission, two in number, at first upon a tempo 
rary basis aud later by permanent appointments. The Examining
Section was included in the Law Department for the purpose of
organization only. Thereafter, a Chief Examiner was appointed and
the administrative duties of the Examining Department were defiued
by the Commission as follows:
EXAMIXIXG DEE'ARL\tEX'l'
"l'he functions of the Department are to conduct hearings, formal and in
4
j
l
ormal, on applications, petitions, and complaints filed with the Commission,
'w11.oo the Commission so directs; and conduct hearings and investigations
instituted by the Commission on its own motion concerning rates, rules, regula 
tions,services, and practices of carriers sUbject to the Communications Act
<of 1934, as directed by the Commission.
THE EXAMINERS
The Chief Examiner will administer the work of the Department and will
also Pl1cside at hearings. Examiners will preside at hearings, propose reports
containing findings of fact and law with recommendations based on these
.findings; ,conduct investigations and hearings under Commission's orders and
report thereon and perform such other duties under the functions of the
Department as directed by the Chief Examiner.
Additional appointments of examiners were made from time to
time so that at the close of the fiscal year the staff consisted of the
Chief Examiner and six examiners.
The following tabulation discloses the volume of work handled by
tile Department during the fiscal year:
Cases heard and unreported as of July 1, 1934______________ 10
Cases heard during fiscal year 199
209
Cases,dlsnUssed~thoutreport_____________________________ 13
196
Cases report.oo during fiscal year 129
oCases unreported as of June 30, 1935__________________ 67
12
REPORT OF THE LAW DEPARTMENT
PAUL D. P. SPEARMAN, General Counsel
The Commission approved the organization of the Law Department
into three divisions, each of which was separated into appropriate
sections as follows: (1) Research and Advisory Division, with a Re 
search Section and a Liaison Section; (2) Telephone and Telegraph
Division, with an Applications and Complaint Section, Operating
Control Section, Investigation Section, and Litigation Section; and
(3) Radio Division, with an Applications Section, Radio Trial and
Hearing Section, and Appeals and Decisions Section.'
The activities of each division and section will be reported sepa 
rately.
I. RESEARCH AND ADVISORY DIVISION
CARL F. ARNOT.D, Assistant General Oounsel
This Division had a vast number of problems of first impression
presented because of the new jurisdiction of.the Commission. There
is outlined below a very brief summary of the nature of the problems
with which this Division has been confronted:
(1) RESEARCH SECTION
The Research Section has had primary responsibility for the draft 
ing of proposed bills appended to the Commission's special report of
February 1, 1935, construing the legal effects of the various sections
of the act, advising the Commission on the legal aspects of adminis 
trative problems, preparing extensive summaries of State commis..r;;;ion
and State and Federal court decisions on accounting, depreciation
valuation, and rate-regulatory problems, and analyses of financial and
operating reports made by communications carriers to the Commis 
sion pursuant to its orders. The Section has also been primarily
responsible for the preparation of a proposed draft of rules of prac 
tice for the Commission and the preparation of rules and regulations
concerning the filing of tariffs and other administrative practices.
It has also been called upon to analyze the history of congressional
legislation over communications carriers from the first regulatory act
and the history of American post-office legislation.
(2) LIAISON SECTION
The Liaison Section has been primarily concerned with the activi 
ties heretofore vested in various departments of the Government
and with relation to the various State regulatory commissions having
1. Since the peYiod covered in this report the Law Department has been reorganized into
sections which conform to the divisions established by the Commission pursuant to the
Communications Act of 1934, viz Telephone, Telegraph, and Broadcast.
13
14 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
comparable jurisdiction. Some of the chief problems have been an
analysis of Pacific cable contracts transferred from the Department
of State; a digest of N. R. A. hearings on codes of fair l?ractice and
competition in the telegraph and telephone commumcations in 
dustries; a study of the early post roads acts; consideration of the
legal phases of American participation in international conferences;
a .digest of the court history .and citations of outstanding public
utIlIty cases of State commlSSlons and State and Federal courts;
digest of decisions of the Interstate Commerce Commission with re 
spect to telephone and telegraph accounting, rate regulation, and
valuation; cooperation with the State regulatory commissions in
matters of annual and monthly report forms and accounting orders;
cooperation with the Securities and Exchange Commission m draft 
ing legislation for proposed regulation of security issues; comment
on various bills affecting communications introduced in the Congress
and in the various State legislatures; report on the Weather Bureau's
relation to the telegraph companies in their extensive wire and radio
communication of weather forecasts; opinions rendered to the Secre 
tary of the Treasury, the Attorney General, the Bureau of Internal
Revenue, the Post Office Department, the Bureau of Investigation
of the Department of Justice, and other Government agencies 'with
respect to communications problems; and opinions rendered to mem 
bers of Congress requesting information and data concerning the
activities of the Commission.
II. TELEPHONE AND TELEGRAPH DIVISION
FRANK RoBERSON, AssiStant general counseZ
This Division had primary responsibility for legal matters arising
within these two divisions, respectively, of the Commission. The re 
ports for the four different sections of this division are set forth
below:
(1) APPLICATIONS AND COMPLAINT SECTION
This section has made an examination of the returns to 7,000
questionnaires which it addressed to the various communicatlOns
carriers for the purpose of determining to what extent they are sub 
ject to the jurisdiction of the Commission. It has acted on a vast
number of these advising the carriers to what extent they are sub 
ject to the act, and is holding the remainder in abeyance ,Pending the
decision of the Commission on the jurisdictional questlOn. It has
conducted extensive correspondence with these carriers regarding the
questionnaires and further information necessary to a determination
of jurisdiction. It has created card-index records of the various
carriers. Other problems include complaints concerning franks and
free service, consolidation of telephone companies, employees' pen 
sion plan, limitation of liability by telegraph companies for trans 
mittal of messages, wire-tapping cases and patent-infringement
cases. Ithas also received and considered 332 applications for inter 
locking directorates. These applications seek authority to hold from
2 to 50 interlocking directorates. The section has also prepared a
953-pagediges~of the 9,OOO-page record in the telegraph rate hearing
and a 28-page mdex of the same.
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 15
(2) OPERATING CONTROL SECTION
This section has considered application for certificates of public
convenience and necessity for the extension of lines, applications for
consolidation and merger of telephone companies, applications for
physical connection with telephone companies, proposed rules govern 
ing franks and services at reduced charges, exclusive contracts be 
tween railroads and telegraph companies, order fixing rates of pay
for Government communication by telegraph, and has Rrepared va 
rious memoranda on law and policy with respect to the Commission's
regulation of the operations of communications carriers.
(3) INVESTIGATION SECTION
This section has made investigations of various complaints, such
as one filed by the American Association for the Protection of the
Motion Picture Theatre regarding the operations of the American
Telephone & Telegraph Co. and the effect of such operations on tele 
phone rates; the jurisdiction of the Commission to require informa 
tion from telephone companies regarding bucket-shop operations;
jurisdiction of the Commission over the destruction of telephone and
telegraph records; the jurisdiction of the Commission over wire tap 
ping; the jurisdiction of the Commission over mergers of telephone
companies under State laws without the approval of this Commis 
sion; an investigation of Pacific Telephone & Telegraph Co.'s eve 
ning toll-rate charges; complaints against employee insurance assess 
ments; new point-to-point telegraph service; the transmittal and
handlinll" of messages addres.'ed to Members of Congress with respect
to pendIng legislation; the investigation of various miscellaneous
complaints against communications carriers; and personnel matters
within the Commission.
(4) LITIGATION SECTION
The Litigation Section has represented the Commission in the con 
duct of cases involving telegraph rates, regulations, and practices.
Complaints against the communications companies, applications for
certificates of public convenience and neceSSIty to install a new ex 
perimental coaxial cable, hearing on proposed revised uniform system
of accounts for telephone companies, hearings on jurisdiction of the
Commission over connecting carriers, private wire contracts, questions
on radiotelephone circuits between the United States and France, and
on rates of pay for telegraph communications.
III. RADIO DIVISION
GEORGE B. PORTER, Ass""tant General Counsel
Section 307 (b) of the Communications Act of 1934, which provides
for the grant by the Commission of applications for license for sta 
tions not exceeding 100 watts power without regard to quota, if the
Commission finds that such operation will not interfere with the fair
and efficient radio service of existing stations, and that the granting
will serve public interest, convenience, and necessity, has resulted in
a large increase in the number of applications received by the Broad-
28008-36-2
16 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
cast Division of the Commission, and has also proportionately in 
creased the work of this Division and particularly the Applications
Section of this Division. There has also been a substantial increase
generally in applications filed during the period covered in this report
over the number filed during the previous fiscal year. During the
period covered by this report this DIvision had primary responsibility
for legal matters arising in the Broadcast Division. A concise report
of its sections is set forth below.
(1) APPLICATIONS SECTION
This section is charged with the duty of preparation of the legal
forms covering all types of radio cases; collaboration with technicians
in drafting of regulations governing radio; the handling of legal
questions involved in formal and informal radio cases prior to sub 
mission to the Commission; the preparation of bills of particulars in
cases recommended for hearing; the conduct of such Investigations
concerning the regulation of radio stations as are ordered by the Com 
mission from time to time, and particularly investigations and in 
quiries into the violation of the Communications Act of 1934, interna 
tional conventions, Conunission regulations, or the operation of
licensed stations contrary to the public interest. This section also
passes upon the legality of contracts and other legal instrU111ents, pre 
pares opinions upon legal problems such as may be referred by the
Commission or the General Counsel under title III of the Communi 
cations Act of 1934.
The number of formal and informal applications handled by this
section during the past year, including legal review, examinatIOn of
the facts and the law, preparation of opmions, and, in some cases
(594), the preparation of bills of particulars, aggregated 7,500. In
connection with many of these applications it was necessary to con 
sider upon and recommend disposition of petitions, motions, and other
pleadings filed by applicants or other parties in interest. The number
of applications for permits for new stations as well as applications
for permits and modification of permits for existing stations increased
to 988 in comparison with 374 of such cases handled the year prior.
Likewise, applications for licenses and modification of licenses in 
creased to 578 from 258 in the fiscal year preceding. The applications
for special authorizations of an emergency or experimental character,
including those of an informal nature, rose to 815, while applications
for renewal of existing licenses during the year totaled approximately
1,300, leaving: 3,854 miscellaneous applications covering various serv 
ices not speCIfically enumerated above.
In the past fiscal year there has been a notable increase in com 
plaints to the Commission of stations broadcasting objectionable pro
grams, and the Commission has made an extensive inquiry into these
complaints under the provisions of the Communications Act of 1934
and its rulE)s and regulations promulgated pursuant thereto. Formal
action was taken with regard to 226 separate objectionable programs
broadcast over 152 stations. Some action was taken with regard to
a much larger additional number of complaints involving several
more stations, but these were adjusted informally. The broadcasting
of false, fraudulent, and misleading advertising in various guises
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 17
has been the chief source of complaint. In many instances the Fed 
eral Trade Commission, the Post Office Department, and the Food
and Drug Administration had taken action to curtail the objection 
able activities of medical advertisers in printed form, the result being
that these advertisers resorted to broadcasting in order to dissemin 
ate their misleading and often fraudulent sales propaganda. This
section handles all matters of inquiry and enforcement from their
initial stages to final Commission action.
(2) RADIO HEARING AND TRIAL SECTION
This section is responsible for the preparation and trial of radio
cases and formal radio licensing hearings before the Commission and
its examiners. It prepares all nccessarv orders and pleadings inci 
dent to such hearings on behalf of the Commission, and passes upon
and advises thc Commission as to the legal sufficiency thereof with
recommendations and rulings on all pleadings filed in hearings by
counsel.
It passes on petitions for reconsideration, petitions for rehearing
and review of Commission action, consolidations, continuances, orders
for taking depositions, and submits recommendations to the Com 
mission as to what action should be taken thereon.
It also reviews examiners' reports and exceptions filed thereto,
passes upon questions of law and evidenec presented in the hearings
and prepares legal opinions for the Commissiou on such matters.
It also prepares correspondence and conducts interviews involving
all matters relating to hearings.
This section also passes upon petitions involving legal questions
for grant of licenses withont a hearing.
It handles matters pertaining to the unlawful operation of unli 
·censed amateur radio stations, or the operation of amateur stations
by unlicensed operators, and all conespondence relative to such
matters. It is responsible for the drafting of orders of the Com 
mission for the revocation of amateur station licenses, the suspen 
sion of operators' licenses, the drawing of orders for disbarment of
persons from taking examinations for operators' licenses because of
misconduct, and conducts the hearings on all matters involving the
revocation of licenses by the Commission. It cooperates with other
Governmental agencies, particularly the Department of Justice, in
connection with the prosecution of parties for the operation of
stations withont station licenses or persons operating stations with 
,out operators' licenses. During the past fiscal year there have been
10 persons indicted and convicted in United States courts for viola 
tions of the Radio Act of 1927 and the Communications Act of 1934
There was one person arrested and released upon his promise not to
engage further in unlicensed activity. There have been 20 unlicensed
stations reported and closed without prosecution with the promise
of the operators not to engage further in unlicensed activities. There
is now one case pending awaiting the meeting of the grand jury
before which it will be presented and indictment requested. There
are now six investigations being carried on, but in these Cases there
is not sufficient evidence yet in hand to warrant prosecution.
During the instant fiscal year this section participated in 261 hear 
ings before the Commission and its examiners j 23 oral arguments
18 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
before tbe Commission; wrote 535 memoranda concerning pleadings
in cases pendinll before the Commission; wrote 113 legal opinions
upon examiners reports; prepared 117 orders and/or memoranda
concerning the taking of depositions; and wrote interoffice legal
opinions and correspondence, 519 in number.
In connection with the operation of unlicensed amateur radio sta 
tions, the Commission's agents have apprehended nnmerous cases in
the past year, and operators of these stations have been barred from
examination for radio operators' privileges. For violations of the
radio laws and rnles of the Commission, the Commission has sns 
pended or withheld 29 amateur operators' licenses and has revoked
5 station licenses. .
It cooperates with the Research and Advisory Division in the
prel?aration of legal opinions for the Commission and the Radio
DiVIsion on matters arising under the Communications Act of 1934
and the rules and regulations of the Commission.
Pursuant to section 307 (c) of the Communications Act of 1934
the Broadcast Division held a public hearing October 1 to 20, inclu 
sive, and November 7 to 12, inclusive, 1934, which was the basis for
the Commission's subsequent recommendations to Congress with re 
spect to the allocation of fixed percentages of radio broadcasting
facilities to particular types or kinds of nonprofit radio programs, or
to persons Identified with particular types or kinds of nonprofit
actIvities. The hearings covered more than 13,000 pages of type 
written transcript, and more than 100 witnesses appeared and
testified. The Law Department made the arrangements for this hear 
ing, sent out proper notices to interested parties, and otherwise
assisted in its conduct.
(3) APPEALS AND DECISIONS SECTION
During the period covered by this report, this section of the Law
Department has assumed primary responsibility for the preparation
for the Commission of its statements of facts, grounds for decisions
and orders in 56 cases heard by the examiners of the Commission
and the Commission; for aU litigation in broadcast cases (other than
criminal) in which the Commission was interested or a party, com 
piling records, preparing pleadings or briefs, and actual presentation
of cases before the various courts; examination of the mmutes of all
divisions of the Commission; and has cooperated with the Research
and Advisory Section in the preparation of memoranda and opinions
upon legal questions, interpretatIOns of laws and treaties and drafting
proposed le;;islation and rules and regulations pertaining to radio
matters, reVIewing and answering correspondence involving questions
of law in radio cases.
On July 11, 1934, there were four cases pending in the United
States Court of Appeals for the District of Columbia which were
transferred from the Federal Radio Commission to the Federal Com 
munications Commission under section 604 (d) of the Communica 
tions Act of 1934. All were disposed of during the current year as
follows: Of those pending in the United States Court of Appeals
for the District of Columbia, 1 was dismissed at the request of ap 
pellant and 3 were decided by that court, in which the decision of
the Commission was affirmed. During the fiscal year 8 new cases
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 19
were filed in the United States Court of Appeals for the District of
Columbia, of which 4 were dismissed by the appellants, 1 was decided
by that court affirming the decision of theCommissio~and 3 are
still J.'ending; 3 new cases were filed in the Supreme vourt of the
DistrIct of Columbia and 1 in the United States District Court for
the Northern District of Illinois. These are still pending.
The cases decided by the United States Court of Appeals for the
District of Columbia are, for the most part, of such importance as to
warrant special consideration. Accordingly, a brief report of each
case is given below:
IN THE l1NITED STA'l'&S CoURT OF ApPEALS FOR THE DrSTRIOT OF COLUMBIA
THE OO:"ir LEEC-~8E
(Don Lee Broadcasting System v. F. O. a., 76 F. (2d) 998)
This was an~ppealfrom a decision of the Federal Radio Commis 
sion denying an application filed by Don Lee Broadcasting System
for construction permit to erect a new station at Redlands, Calif.)
for the use of the frequency 780 kc with 500 watts power, unlimited
time. Filed concurrently with this application were several others,
including _an application of the Pickwick Broadcasting Corporation
(station KTM) for renewal of license upon the assignment of 780 kc,
sharing time with station KEL'V, and also for permission to make a
voluntary assignment of license to the Evening Herald Publishing
Co. of Los Angeles, and an apj?lication by Magnolia. Park, Ltd.
(station KELW), Burbank, Ca.hf., for renewa.l of license on the
a.ssignment of 780 kc, sharing time with Station KTM and permis 
sion for voluntary a.ssignment of license to the Evening Hera.ld
Publishing Co.
The application of Don Lee Broadcasting System contemplated
and requested permission to construct an entirely new statIOn a.t
Redlands, Calif., and the granting of this al'plication would necessi 
tate the deletion of stations KTM and KELW because their facilities
were requested by the applicant. The Commission found that the
Don Lee Broadcasting System had not shown a. substantial need for
additional service in the city of Redlands, and that particularly was
this true when, in order to estahlish such service, existing stations
would be deleted.
The court held that the decision of the Commission, in granting
the applications of KTM and KELW for renewal and assignment of
license and denying the application of Don Lee Broadcasting System
for construction permit to erect a new station at Redlands, Calif.,
was based on substantial evidence and was not arbitrary or capricious.
THE RADIO SERVIOE CORPORATION CASE
(Radio Service Oorporation (stafi.Qn ESE/) v. F. a. O. Decided 'May 6, 1935.
Not yet reported)
This was an appeal by Radio Service Corporation (station KSEI),
Pocatello, Idaho, from a decision of the Commission denying its
application to change frequency from 900 to 890 kc a.nd granting
the application of Symons Broadcasting Co. (station KFPY), Spo 
kane, Wash., to change frequency from 1,340 to 890 kc. Hearings
upon these competing applications were conducted by an examiner
20 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
appointed by the Commission because it was not feasible for both
stations to operate on the frequency in question. The Commission
decided that public interest, convenience, and necessity would best
be served by granting the application of station KFPY and denying
that of station KSEI. Appellant claimed that the grant of the
frequency 890 kc to station KFPY would be a violation of the Davis
amendment (45 Stat. c. 263, sec. 5), section 30'1' (b) Communications
Act of 1934 (48 Stat. 1084), the ground for this contention being that
the coverage of station KFPY would be increased by this change of
frequency, and that the State of Washington in which KFPY was
located was already over quota.' The court held that such a change
does not bring the case within the purview of the Davis amendment.
It also affirmed the Commission's decision on the ground that there
was substantial evidence to support the decision aud that the same
was not arbitrary or capricions.
THE UAONOLIA PETROLEUM CASE
(Magllolia, Petrolc1l1n Co. anti Sabine Broadcasting 00. V. F. C. C., 76 F. (2d)
439)
This appeal arose as a result of certain concurrent orders made
~ythe Commission affecting stations KRGV, Harlingen, Tcx., and
KWWG, Brownsville, Tex. Station KWWG had filed applications
for renewal of its license and to assign the license to Port Arthur
College. There was also an application for construction permit to
move from Brownsville to Port Arthur. Station KRGV made ap 
plication for a modification of its license for unlimited time, without
change of frequency or power and without sharing time with
KWWG as theretofore. The Commission granted these applications
over the protest of Magnolia Petroleum Co. and Sabine Broadcast 
ing Co., licensee of station KFDM, located at Beaumont, whose pro 
test was based upon the theory that the Commission's decision
violated the Davis amendment in that some additional units were
granted to a State already over quota, and also that the grant sub 
jected them to an ecouomic injury. The court sustained the Com 
mission and held that, in view of the size of the communities and
their respective demands for hroadcasting service, it was reasonable
to believe that there would be sufficient commercial support to main 
tain a station in each community, and that the college should not be
denied the privilege of maintaining a broadcasting station at Port
Arthur because it would have to compete with appellant's station at
Beaumont. The court further said tbat the Commission's increase
of facilities was not obnoxious to the Davis amendment because the
change left the State of Texas "as near to its precise quota as is
practically possible."
THE JENNY WREN CASE
(Jenny W1"en 00., a corporation, v. F. a. O. Decided May 27, 1935. Not yet
reported)
This was an appeal from an order of the Supreme Court of the
District of Columbia denying a motion made by the Commission to
dismiss a bill of complaint for injunction filed by the Jenny Wren
Co. against the Commission.
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 21
Radio station WHB had filed with the Commission an application
requesting leave to increase its hours of operation from daytime to
unlimited hours at Kansas City, Mo. The Commission, being unable
to determine from an examination of that application that the grant 
ing thereof would serve the public interest, convenience, and neces 
sity, designated the same for public hearing. The Jenny 'Vren Co.:
licensee and operator of station WREN at Kansas City, then filed·
a petition to intervene in that hearing on the ground that the grant 
ing of that application would affect it adversely in that station~B
is in active competition for material, talent, and commercial reve 
nnes, and a modification of its existing license so as to permit it to
operate evening hours would seriously affect its operation. The
Commission declined to permit WREN to intervene, whereupon it
med a bill of complaint for injunction in the Supreme Court of the
District of Columbia praying that the Commission be enjoined from
holding any hcaring on that application unless and until it was
permitted to intervene. The Commission's motion to dismiss was
predicated upon two propositions: (1) That an economic interest was
not such an interest as entitled thc applicant to intervene, and (2)
even if it had such an interest as would entitle it to intervene, then
it had a plain, speedy, and adequate remedy at law under section
402 (d) of the Communications Act of 1934 and, therefore, should
not be permitted to employ an extraordinary remedy. The court
decided that the remedy provided for appeal under section 402 (d)
of the Communications Act of 1934 was the. proper remedy for the
Jenny Wren Co. to pursue and that was exclusive. It, therefore,
directed that the decision of the lower court denying the motion of
the Commission to dismiss the plaintiff's bill of complaint be reversed
and the cause remanded with Instructions to sustain the motion and
dismiss the bill.
REPORT OF THE ENGINEERING DEPARTMENT
DB. C. B. JOLLIFFE, ChAef Engineer
ORGANIZATION
The Engineering Department was organized into three sections,
Broadcast, Telegraph, and Telephone, to correspond to the organiza 
tion of the Commission. In addition an International Section and a
Field Section were set up to coordinate special matters which come
under the jurisdiction of all three divisions. The duties of each sec 
tion of the Engineering Department are as follows:
BroadalL8t Seetion.-Technical examination of all matters relating
to radio hroadcasting; preparation and presentation of expert testi 
mony at hearings; preparation of technical regulations; research on
use of the facilities, installation, technical operation, maintenance,
and development of the monitoring apparatus and other radio equip 
ment.
Telegmph Section.-Technical examination of all matters relating
to record communication by wire or radio; fixed and mobile radio
services as assigned; preparation and presentation of expert testi 
mony at hearings; preparation of technical regulations; research on
use of facilities; prescribe qualifications and classify radio station
operators. .
Telephone Section.-Technical examination of all matters relating
to telephone communication (other than broadcasting) by wire or
radio, including fixed and mobile radiotele]?hone services as assigned;
preparation and presentation of expert testimony at formal hearings;
preparation of technical regulations; collaboration with the Tele 
graph Section in matters relating to teletype, telephoto, and facsimile
systems.
International Section.-Coordinate international and interdepart 
mental relations in connection with wire or radio services; make l?lans
for participation in international conferences and technical meetmgs ;
adVIse concerning technical engineering phases of international
treaties, agreements, etc.
Field Section.-Administer the work performed by the Commis 
sion's field force in twenty-one districts throughout the United States
and Hawaii, including holding of operators' examinations, travel by
inspectors, inspections, investigations, and special duties as assigned.
BROADCAST SECTION
I. GENERAL
The broadcast Section examines all matters pertainin{$" to broadcast
engineering. The services that are included are: regular broadcast,
experimental high-fidelity broadcast, experimental relay broadcast,
22
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 23
broadcast pick-up, experimental visual (facsimile and television)
broadcast, and very high frequency experimental broadcast (above
30,000 kilocycles).
II. REGULAR BROADCAST
The basic plan of allocation of regular broadcast facilities placed
into effect by the Federal Radio Commission has been continued un 
changed insofar as concerns the general plan of allocation of stations
by frequencies, power, and hours of operation. However, the pro 
visions of section 307 (b) of the Communications Act of 1934 replaced
section 9 of the Radio Act of 1927, as amended (known as the" Davis
amendment"), which required that the Commission allocate broad 
cast facilities, as nearly as possible, equally between the zones and
fair and equitably between the States in the zones according to popu 
lation. Section 307 (b) of the Communications Act of 1934 exempted
stations of 100 watts power or less under certain conditions from any
restrictions insofar as imposed by the quota. This permitted the
licensing of many additional statIOns of 100 watts power in under 
served areas where such stations would not interfere with the fair and
efficient service of existing stations.
A comparison of the number of broadcast stations licensed or under
construction for the fiscal years 1927 to 1935 is given in table VI.
TABLE VI
1927 1928 1929 1930 1931 193. 1932 1924 1925
--------
----
----
Total number of statlons___ •________________ M
681 671 606 618 612 604
""
MI'
628
Total simultaneous operations at nighL____ • 666 614
400 416 420 '97 376 397 421
1. MODIFICATION OF RULES
The Commission revised the rules concerning the determination
of quota charges (rules 109--111) so that the quota due each zone and
State within each zone was divided into night and day sections. The
night quota due and day quota due are considered entirely separate
and wholly independent of each other. Day and night interference
characteristics of broadcast stations are qmte different. The quota
due is based on the maximum number of assignments that can be
made in the smallest zone in order to saturate the zone with regards
to mutual interference. The interference characteristics were de 
termined after several years of continued investigation of the night
and day propagation characteristics of regular broadcast stations.
The day interference range of stations is appreciably less than at
night and therefore more day assignments of power and stations can
be made than at night.
Applications for new facilities are considered in two parts if both
night and day operation is requested and the proper quota due is
considered in connection with each part. Prior to the adoption of
this revision, each zone was designated as having a total quota due
of 80.00 units. Under the new plan each zone was designated as
having due a total of 36.00 units at night and 65.00 units daytime.
Accordingly, this made possible the granting of many daytime power
24 REPORT OF THE FEDERAL .COMMUNICATIONS COMMISSION
increases to stations. The night quota due and assigned as a result
of this change did not differ materially from the night portion of
the former system since the smaller zones were already saturated
with respect to interference.
A summary of quota units due and assigned for day and night
operation hy zones, as of June 30, 1935, are given in tahle VII.
TABLE VII
Net amount over or under quota
Units due Units assigned 1------.--------
Units Percent
Day Night Day Night Day N[ght Day Night
------i~---------
Zone L 65.00 36.00 44-.995 34.455 -20.003 -1.645 -31 -4
ZOn62. 65.00 36.00 47.61 38.09 -17.39 +2.09 -27 +6
Zone 3 . 65.00 36.00 62.045 46.115 -2.955 +10.115 -5 +28
Zon64. 65.00 36.00 65.12 39.43 +0.12 +3.43 +0 +10
Zone5 65.00 36.00 57.74 45.90 -7.26 +9.90 -11 +27
------------------
TotaL 1325.00 180.00 277.51 203.99 -47.488 +23.990 -15 +13
The Commission also changed the limitation of maximum day 
time power permitted for regional stations from 2,500 to 5,000 watts
in order to improve the daytime service to the puhlic in areas where
increases could he made without ohjectionahle interference heing
caused to other existing stations. This change was made simultane 
ously with the quota revision. The licensees of a numher of sta 
tions have taken advanta.ge of this change and have a.pplied to the
Commission and have been granted increases in day power. There
are a number of other similar applications still pendmg.
2. NEW STATIONS WITHOUT REGARD TO QUOTA
On Octoher 10, 1934, the Commission issued a statement relating
to the licensing of additional 100-watt broadcast stations as pro 
vided for in section 307 (b) of the Communications Act of 1934. It
Was stated that these stations would be aUocated only to frequencies
designated as local channels, namely, 1,200, 1,210, 1,310, 1,370, 1,420,
and 1,500 kilocycles, which are allocated for stations of 100 watts.
A need for the station must he shown and it must not cause radio
interference with the fair and efficient service of existing stations.
In determining the interference that may he causi'd. the existing
power-frequency mileage separation tahles of the Engineering De 
partment· are followed unless a complete engineering survey shows
unusual conditions exist, as a result of which no interference would
he caused. The technical requirements for the equipment and opera 
tion are the same as for other broadcast stations. These stations
established in accordance with the last clause of section 307 (h) of
the Communications Act of 1934 are not charged to quota.
A total of 31 construction permits have heen issued up to June
30, 1935, authorizing the erection of stations in accordance there 
with. In addition, construction permits for eight other stations,
which were charged to quota, were issued.
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 25
3. OPERATION AT 500 KILOWATTS
On April 17, 1934, the Federal Radio Commission granted station
WLW, Cincinnati, Ohio, which operates on the clear channel fre 
quency of 700 kilocycles, special temporary experimental authority
to increase power from 50 to 500 kilowatts during the regular broad 
cast hours of operation. Prior to this time the station had been
operated with 500 kilowatts power on 700 kilocycles from 1 to 6
a. m., as an experimental station, using call letters \V8XO. This
additional authority to WLW was granted in the interest of develop 
ing tho operation of broadca.st stations with higher power in order
to determine the interference and the benefits to the public which
might result because of better reception generally.
This station was operated with power of 500 kilowatts, using a
conventional antenna, until February 11, 1935. The Canadian Radio
Broadcasting Commission informed this Commission of interference
caused to station CFRB, Toronto, Ontario, which operates on the
adjacent channel of 690 kilocycles with a power of 10 kilowatts. On
December 21, 1934, the Commission adopted a minute specifying that
upon expiration of the outstanding authority it would not be re 
newed except that the application for extension must be based upon
500 kilowatts operation during daytime and 50 kilowatts operation
during nighttime or 500 kilowatts at night using a directional an 
tenna such that the signal in the Niagara Falls-New York area
(nearest area to Toronto over which this Commission has juris 
diction) would not be greater than delivered by 50-kilowatt conven 
tional antenna. On January 25, 1935, the Commission denied appli 
cation for operation with 500 kilowatts at night but granted it for
500 kilowatts during daytime. Subsequently, the licensee applied
to the Commission and was granted special temporary experimental
authority to install a directional antenna so designed that the effcc 
tive signals toward station CFRB would be controlled and restricted
as required. After erecting the new antenna, surveys to determine
its effectiveness were made by the licensee, Canadian authorities,
this Commission, and other interested parties. These surveys indi 
cated that the directional antenna was suppressing the signal as
required and that the interference to station CFRB was no greater
than when station WL'V operated with 50 kilowatts conventional
antenna. On this basis the Canadian Radio Broadcasting Commis 
sion stated it had no objection to the continned operation of WL'V
with 500 kilowatts at night on an experimental basis.
The effects of the operation with this amount of power have not
been fully determined in all respects although sufficient data are
available to indicate that the service of the station is greatly im 
proved. Also, the experimental operation being conducted offers
a means of further studying the eflects and the obtaining of addi 
tional data on which to base development of future policy on the
operation of clear channel stations with a power in excess of 50
kilowatts.
III. EXPERIMENTAL HIGH FIDELITY BROADCAST
Three frequencies in the band from 1,500 to 1,600 kilocycles have
been continued for a special class of broadcast stations. These sta 
tions are designated as "experimental high-fidelity broadcast sta-
26 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
tions." The frequencies allocated are 1,530, 1,550, and 1,570 kilo 
cycles. On June 30, 1935, there were four such stations in operation.
These stations are licensed for the purpose of carrying on research
and development in the radio art and are equipped to transmit high
fidelity programs. It is the ohligation of the licensees of these
"tations tocar~on research and development in the hroadcast
technical art whIch is in advance of the work done hy the licensees
of regular hroadcast stations. The transmission of sponsored pro 
grams is permitted on the condition that sponsorship will not inter 
fere with the program of research and that the conduct of experi 
ments will not depend solely upon the sponsorship as a means of
defraying the cost of experimentation.
Complete reports of the research and development are required
each 6 months with the applications for renewal of licenses. The
4 licensed stations have made 1 report with the renewal application
for their first 6 months or less of operation.
IV. EXPERIMENTAL RELAY BROADCAST (INTERNATIONAL
BROADCAST)
No additional experiment relay broadcast stations were licensed
during the fiscal year, however, the~eneralinterest of the public
increased considerably in this type of hroadcast service due to the
greatly increased number of sa-called" all-wave" hroadcast receivers
that permit reception of this class of stations along with the regular
hroadcast stations. Practically all of the better grade of 1934 model
receivers include this all-wave feature.
Many of the European and South American stations, as well as
those of other nations were received with regularity both day and
night suhject to wide variations in fading and interference.
Experience has shown that channel widths of at least 20 kilo 
cycles are required for reasonahly good reception and reproduction
to he ohtained on these frequencies. This is hecause of the extreme
and rapid fading, average weakness of received siguals, carrier
frequency tolerance required, average receiver characteristics, etc.
Even with the directive antenna systems and diversity reception,
a carrier frequency separation of 10 to 20 kilocycles IS necessary
for high-grade reception in the present state of the art.
Assignments are now heing made, however, hy some nations with
separations of onlv 5 kilocycles and other nations are assigning
odd channels with separations even less than this. As a result, this
international hroadcast service is heing greatly impaired hy reason
of mutual interference. It is very important, therefore, that agree 
ments he made hetween the varIoUs participating nations of the
world for the shared use o.f these frequencies during periods of time
when interference may he caused. There are times of the day and
seasons when relay stations on certain of the frequencies can trans 
mit and he received in one section of the world hut during which
time it is impracticahle or impossihle for other sections of the world
to employ satisfactorily the same frequencies hecause the listening
public is not availahle due to the early morning hours, or hecause of
geographical separations, daylight and darkness distributions, and
the seasonal and diurnal changes in propagation characteristics.
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 27
The relay broadcast frequencies have been selected as those most
suitable for transmission to great distances or international services,
but due to these great distances the average signals are always weak
and therefore it is quite important that the power assignments be
not less than 5 or 10 kilowatts. This is considered the minimum
power with which it is possible to make efficient usage of an assign 
ment.
A sound engineering and economic allocation of the experimental
relay or international broadcast frequencies requires close coopera'
tion, mutual agreements, and treaties between the nations of the world
engaging in this service.
V. BROADCAST PICK-UP
Broadcast pick-up stations in both the temporary and experimental
services have increased from 85 on July 1, 1934, to 102 on June 30,
1935. This increase in the number of stations licensed reflects very
accurately the increase in interest in picking up of programs where
wire line facilities are not available. There were many events of
national and local interest picked up by means of these stations and
broadcast over regular broadcast stations.
VI. EXPERIMENTAL VISUAL BROADCAST
Although the Commission licensed no new visual broadcast (fac 
simile or television) stations during the past year, the general interest
of the public in television has increased substantially. Interest in
television has been stimulated greatly by the activities in certain
European countries. Great Britain and Germany have given con 
siderable publicity to their activities in this field. Technically, tele 
vision has been as highly developed in the laboratories of the private
companies of the United States as has been accomplished in Europa
The several companies carrying on television experiments in the
United States have not standardized the several essential elements of
transmission. Due to the wide band width necessary (approximately
3,000 to 4,000 kilocycles) and other requirements, frequencies above
40,000 kilocycles are the only ones available for high quality televi 
sion transmission. In order to transmit a picture of approximately
350 lines and 60 frames per second accompanied by voice, the wide
band width is required. If this band is reduced, the detail or clear 
ness of the pictures is reduced accordingly. No commercial receivers
are at present available to receive such programs. In order to give
television service it is necessary for the different manufacturinf.{ com 
panies to standardize their transmissions and produce receivers
which can receive all programs transmitted. In short, from a labora 
tory standpoint television programs can be satisfactorily transmitted
and received locally at the present development of the art but before
it is finally useful to the public there are many commercial problems
to be solved.
VII. VERY HIGH FREQUENCY EXPERIMENTAL BROADCAST
Interest in very high frequency experimental broadcastinl( has con 
tinued to develop; however, the full possibilities of the frequencies
28 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
for local broadcasting are developing slowly due to the very limited
numbel' of broadcast receivers that will tune to this band of fre 
quencies. The very high frequencies above 30 megacycles have such
characteristics that they serve a small area and then beyond this
range no interference will be caused to other stations. This is dif 
ferent from the propagation characteristics of the stations on the
regular broadcast frequencies (550 to 1,500 kilocycles) which have
a moderate primary service area but the signals continue for hun 
dreds of miles so that their interference range is enormous compared
with the primary service area. Due to this characteristic of the very
high frequencies, it has been considered that they offer a means of
supplying strictly local service to any number of centers of popula 
tion with frequency assignments duplicated at relatively low mileage
separations. The individual stations would serve only a few miles,
probably in the order of 2 to 10 miles depending upon the power,
location of the transmitter, its efficiency, and the radio propagation
characteristics of the surrounding terrain.
VIII. TECHNICAL DEVELOPMENTS IN REGULAR BROADCASTING
1. ANTENNA REQUIREMENTS
The service of broadcast stations is determined by two main fac 
tors: First, the signal or field intensity, and second, the percentage
of modulation. The field intensity is determined by the power,
efficiency of the radiating system, the frequency, location of station
and radio propagation characteristics of the surrounding terrain.
The characteristics of the surrounding terrain cannot be controlled,
however, the Engineering Department has promulgated a very com 
plete set of empirical standards for the location of transmitters such
as to require locations that give the maximum service. The Com 
mission controls directly the assigned power but heretofore little
regulation has been applied to the efficiency of the radiating systems.
A study of the radiating systems of many broadcast stations re 
vealed that in many cases the antennas were inefficient and that im 
provements could be made such that the coverage of the stations
would be increased equivalent to a sUbstantigJ increase in power.
The Commission receives many applications for increase in power
for the purpose of improving the service whereas an improvement
in the antenna system would effect a greater improvement in cover 
age than the requested increase of power.
It is considered the obligation of every licensee to make full usage
of the assignment already authorized before further facilities are
granted. Applicants for new stations must show that efficient use
will be made of the requested assignment. So as to have a uniform
standard for antennas, the Engineering Department set up minimum
standards in reg-ard to antenna. dilnensions or efficiency that lnust he
complied with before favorable reports will be made to the Com 
mission on requests for increase in facilities. Figure 1 gives the
minimum heights of antennas for stations of different powers and
classes that must be complied with before it may be considered that
the radiating system complies with the requirements of good engi 
neering practice. The heights given are the minimum physical ver 
tical height above the station ground system or counterpoise. It is
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 29
\
ANTENNAS FOR BROADCAST STATIONS
G
I4inilllUlD. vertical height of antennas
permitted to be installed (A,B.C & D)
[\
A. Local ehannel stations or a minillllll!l effective
1'ield intensity at one mile of 40 llV/m for
100 watts
\
B. Regional chanl1ll1 stations
(250, 500 and 1000 watts) or a minimull.
effective field intensity at one Ilile of
\
150 m'<t/m for 1 lew
1\
C. Regional, limited time, day, etc., of power
greater than 1000 watts or a miDillulll
F
\
effective field intensity at one mile of
175 l1IV/m for 1 lew
D. All dominant clear channel stations and other
\
statIons with ponr over 10 \w or a lldrii_
etfectiYe field. intensity at one .IIllle of
200 mv/. for 1 kit
\
\
E. 0.25 Wavelength
F. O. SO Wavelength
G. 0.625 Wavelength
1\ \.
\
\.
\
'"
""
'"
"'"
"""
~
}.
~i'-
;;-~
"
1'---..
.......
';;-
'"
t----.
-......;:
r--....r-....
............
~b-..
-
t--
.".
r--.
-
t--.. ..........
t--
,
100
SOO 600 700 800 900 1000 1100 1200 1300 1400 1500 1600
FREQUENCY Df KILOCYCLES
FIGURE i.-Antenna heights.
200
""
,00
800
700
900
1000
generally accepted that a vertical antenna of optimum height is the
nearest ideal for general broadc...,t service. In cases where the
licensees claim that the required efficiency may be obtained without
the height as specified, then the option is given of determining the
1100
field intensity of the station and if this meets the requirements as
set out, then it is not necessary to install the height as given. How 
ever, it is the obligation of the licensee to prove to the Commission
the required efficiency is obtaincd. The figures on the required field
intensity in lieu of height are given on the graph.
30 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
2. MODULATION METER
The other essential component of coverage of stations is percentage
of modnlation of the carrier. Observations were made of the per 
centage of modulation of many broadcast stations by means of reo
motely operated cathode ray oscillographs. These observations reo
veal that the percentage of modulation of different stations varies
widely. Some few stations were over-modulating, causing distortion
. of the program and interference, but a greater number were modu.
lating a low percentage thus appreciably limiting the service
rendered by the station.
There has never been developed an entirely satisfactory commer·
cial modulation meter, though it appeared qUite possible. With this
in mind, the Engineering Department held an informal conference
of representatives of all the manufacturers of radio transmitting ap.
paratus, radio operating companies, etc., who might be interested III
the design and operation of such a device. The conference was well
attended and the subject was thoroughly discussed and it was decided
to test and demonstrate several different instruments at the Bell Lab 
oratories in New York City. This demonstration was held on April
29-30, 1935. Various types of instruments made by the different
companies were tested before a large group of engineers and expert
audio observers. At the close of the fiscal year another meeting was
scheduled in Washington, at which time final specifications for the
modulation meter were to be written.
3. ALLOCATION SURVEY
Since the allocation of 1928 no specific or basic changes have been
niade in regulation of the Commission governing the allocation of
regular broadcast frequencies. There has been much public and en 
gineering sentiment toward making certain basic changes rather than
continuing granting of various applications that did not comply with
this basic plan as originally adopted. While much engineering data
have been taken by the Field Section of the Commission and at the
numerous hearings held before the Commission, and the leading radio
engineerS throughout the United States have introduced large
amounts of data, the Engineering Department was not convinced that
it had sufficient information available on which to base a recommenda 
tion to the Commission to change the present allocation or to fully
substantiate it.
The licensees of 13 clear-channel stations petitioned the Commis 
sion that it carry forward a survey in cooperation with them for the
purpose of gaimng further information. While the petition exactly
as made was not accepted, the Commission did decide to carry for 
ward the survey in cooperation with all broadcast licensees. Several
informal conferences with all interested parties invited to be present
were held when the extent and plan of survey, the prorating of the
work, and the setting up of an organization to purchase equipment
and management of the survey were decided. During January the
survey actually began and the taking of data was closed on May 30,
1935.
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 31
The survey was divided into four principal parts, namely:
1. One hundred and sixteen thousand questionnaires were sent to
the fourth-class postmasters and to a list of representative rural lis 
teners furnished by the Agricultural Adjustment Administration
requesting their preferences in radio stations with respect to satis 
faction of reception.
2. The field personnel of the Commission made extended trips and
interviewed radio listeners throughout various sections of the United
States to obtain their opinions.
3. Continuous recordings were made of the signal received from
broadcast stations in 10 different locations of the United States. The
number of continuous recorders located at each of these points was
from 4 to 8. This is the greatest number of field-intensity recordings
heretofore taken and should give reliable information on the signal
to be expected at distances from stations of various powers.
4. The radiating efficiency and primary service areas of several rep 
resentative stations were determined by means of field-intensity
equipment located in the Commission's test cars.
The data were all accumulated during the fiscal year 1934-35;
however, the analysis, summary, conclusions, and recommendations
to the Commision based on the survey were just begun at the close of
the fiscal year.
4. DIRECTIONAL ANTENNAS
During the past year a number of licensees and applicants for new
stations have installed, or requested the Commission for authority to
install, directional antenna systems. These radiating systems are
designed to reduce the radiation in one or more desired directions
for reduction of interference with other stations which are located
in such directions or to increase the field intensity in some other di 
rection so as to give a maximum service over the desired center of
population. Where such installations are designed and constructed
III accordance with good engineering practice the operation has been
satisfactory and the desired results accomplished. In order to ob 
tain maximum utilization of the available facilities and to provide
additional service in underserved areas which otherwise would be de 
prived of adequate service it appears desirable to authorize direc 
tional antennas on regional channels after proper showing is lIlade.
Concerning directional antennas on local channels, theEngineerin.'~
Department recommends that directional antennas not be authorized
on local channels for either increasing or decreasing the signal in
any direction unless it can be shown definitely that the interests
of no other station will be adversely affected and that the general
plan for future allocations on local channels will not be impaired.
The power of local stations is limited to such that, irrespective of
the mileage separation over a certain minimum value, no interference
will be caused within the 2 millivolt field intensity contour of sta 
tions. If directional antennas are used, power III excess of 100
watts will be radiated in certain directions, which will destroy this
fundamental of allocation on such facilities.
On June 30, 1935, 20 stations were operating with directional
antennas.
28008-36--6
TELEGRAPH SECTION
The rules, regulations, and policy established by the Federal Radio
Commission relating to radio stations operating in services other than
broadcast were accepted by this Commission upon its organization
without any immedIate changes. The only changes that have been
made are those that are required due to the development of the indus 
try and due to changes in I?olicy necessitated by improvements in the
art of radio communicatIOn. The existing policy in effect with
regard to the various services will be discussed under the appropriate
heading.
RADIO
FIXED SERVICE
On July 1 1935, there were 296 point-to-point telegraph stations
licensed for fixed public service and 73 point-to-point telegraph sta 
tions licensed for fixed public press service in the United States, its
territories,' and possessions subject to the jurisdiction of the Com 
mission. Although the larger proportion of these stations are licensed
primarily for international and overspas communication there are
approximately 120 stations within the continental United States
which are licensed to communicate with other stations similarly
located, on condition that the use of frequencies above 6,000 kilocycles
for domestic service shall not interfere with international service.
The·Commission defines one station as all of the radio transmitting
apparatus used at a particular location for one class of service and
operated under a single instrument of authorization. In the inter 
national and overseas service a separate license and call-letter group
is issued for each frequency employed at a given location pursuant
to requirements of the General Radio Regulations "nnexed to the
Telecommunications Convention of Madrid.
The majority of point-to-point telegraph stations in the United
States engaged in international or overseas communication are ID 
eated near the Atlantic, Pacific, and Gulf coasts. All of these stations
were authorized, as of July 1, 1935, to transmit public message traffic
to approximately 86 foreign and overseas points. In addition, a large
number of these stations are licensed to send addressed program ma 
terial to many foreign points, to the Territory of Rawan, and to
Puerto Rico for rebroadcast by regular broadcast stations at those
points. Several of the stations, in accordance with the terms of their
licenses, transmit press traffic to ship subscribers at sea. On low fre 
quencies below 100 kilocycles, this transmission at times is addressed
exclusively to ships; however, on high frequencies aboye 3,000 kilo 
eycles the transmission primarily is addressed to and receiyed at
1 Excluding Alaska.
33
32 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
5. EMPIRICAL STANDARDS PREVIOUSLY PUBLISHED
There has been no major change made in the empirical standards
previously published (Seventh Annual Report of the Federal Radio
CommiSSIOn). The tables of average daytime and nighttime recom 
mended separations, pages 21 and 23, are still used in determination
of interference between stations and presentation of engineering tes 
timony in hearings. No substantial departure therefrom appears to
be warranted at this time.
6. WCATlON OF TRANSMITTERS
The Engineering Department has continued the policy previously
adopted in regard to the location of broadcast station transmitters
in accordance with recommendations set forth in table I on page 32
of the Sixth Annual Report of the Federal Radio Commission, except
for one important change. In the case of stations of 50 or 100 watts
power, these stations are now permitted to locate in the center of the
business section of any city regardless of the popUlation of the city
or metropolitan area, provided that it appears that excessive blanket 
ing interference will not be caused and that reasonable efficiency will
be obtained. In lieu of the location of the transmitter in the center
of the business section, a site outside of the city will be approved,
provided it is within 'h to 2 miles .from the business or geographical
center of the city and the maximum percentage of total papulation
in the blanket area does not exceed one-half of 1 per cent.
34 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
fixed points and is overheard and copied by authorized ship stations
durmg the point-to-point transmission. This additional service ren 
dered by fixed stations is in accordance with the General Radio
RegulatIOns of Madrid.
The outstanding developments in the fixed public radiotelegraph
service dnring the year ending July 1, 1935, were the increase in the
number of licensed stations for domestic communication and the in 
stallation of improved and higher powertransmittin~facilities at the
larger stations operated chiefly for international servlee.
New radiotelegraph stations, to provide circuits for the present
entirely within the continental United States, were licensed or au 
thorized for the first time at or near the following points :
Washington, D. C. Seattle, Wash.
Boston, Mass. Los Angeles, Callf.
Chicago, Ill, New Orleans, La.
Detroit, Mich. Fort Morgan, Ala.
St. Louis, Mo. Mobile, Ala.
Oklahoma City. Okla.
New stations for foreigu and domestic service were licensed for the
first time at Brentwood, Long Island, N. Y. These stations will sup 
plement existing facilities, for point-to-point service, in the New
York City area. Additional and replacement transmitting facilities
were authorized to be installed in existing stations at the following
points:
Garden City, N. Y. Palo Alto, Calif.
New Orleans, La. Rocky Point, N. Y.
Cleatwater, Calif. Bolinas. Calif.
Hillsboro, Oreg. Kailua, Territory of Hawaii
Licenses authorizing certain stations at Bolinas, Calif., to com 
municate with Mukden, Manchuria, were modified on December 12,
1934, in accordance with changed conditions in that country to desig 
nate instead Hsinching, which is the new capital, formerly known as
" Changchun."
To illustrate the situation relative to potential interference which
exists in the field of international high-frequency communication,
several radiotelegraph stations on the Pacific coast and in Hawaii
which have operated in the overseas service for the past 6 years on
certain frequencies originally allocated by the Federal Radio Com 
mission in 1929, recently experienced serious interference caused
by a public-service radiotelephone ,tation in Java inaugurating serv 
ice to the United States, on adjacent frequencies. The Java station
had been transmitting in a westerly direction to other points for a
<oonsiderable period of time and no interference resulted, but when
transmission commenced eastward tothis country trouble arose. The
situation has been temporarily alleviated by the assignment of alter 
nate frequencies to the involved radiotelegraph stations under juris 
diction of the Commission. For other and similar reasons, several
changes in high-frequency assiguments have been necessitated for a
number of United States station, in the fixed public service.
In the fixed public-press service, the principal development appears
to be the expansion of multiple-address transmission of press traffic
from fixed radiotelegraph stations to subscribers, including many
broadcast stations, located throughout the continental United States
and Canada, and to ship subscribers on the high seas. Although
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 35
these fixed stations are licensed primarily for transmitting press
material to fixed international and domestic stations, transmission on
the multiple-address principle to a number of fixed receiving stations
is recognIzed as a secondary service.
Many applications requesting construction permits for the estab 
lishment of fixed stations to render private service On behalf of
private business organizations and inquiries concerning this subject
have been received by the Commission. However, in view of the
statutory requirement of public interest and because of the definitely
lirrlited number of available frequencies for radio cOlllffiunication,
sueh applications are usually designated for hearing. In no case has
fixed private service been authorized except where the safety of life
and property is involved and the required service cannot be supplied
by wire lines or by public service radio-communication companies.
All applicants or prospective applicants interested in fixed private
service are advised accordingly in order to avoid a formal hearing,
which in all probability and in the light of past experience, would
not result in a showing of public interest necessary to the granting
of the requested authority. .
MARITIME
There are 58 eoastal telegraph stations in the public coastal service
licensed by th" Commission for operation in the United States, Ter 
ritories, and possessions, exclusive of Alaska.
Three coastal telegraph stations and one coastal harbor station
are licensed for private service, SOlne of which are operated by
the Inland Waterways Corporation relative to communication with
their vessels on the Ohio, Missouri, and Mississippi Rivers.
The total number of licensed ship stations on July 1, 1935, was
1,961. Fifty-eight ship stations are licensed to operate on frequen 
cies allocated for use exclusively in Alaskan waters. The number
of vessels authorized for intership communication on the mediunl
high frequency 2,738 kilocyclBS is 25.
Ship stations licensed according to the class of stations were,
on July 1, 1935, as follows:
J!~irstclass 2 275
Second class_____________________________________________ 0
Third class 1,686
The number of ship stations licensed for operation on the Great
Lakes is approximately:
First clas.'5 12
Second elass_____________________________________________ 0
Third class :.____ 183
~otal~-_---______________________195
There are three fireboats which have licensed radio stations.
These are designated as fireboat stations in the emergency service.
The coastal telegraph station formerly located near Cincinnati,
Ohio, has been moved to St. Louis, Mo., in order to serve more effi 
ciently ships navigating the Mississippi, Missouri, and Ohio Rivers.
2 Includes those haVing a combined first- and thIrd-class license.
36 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
The Commission now requires all ship stations ·aboard vessels
of the United States licensed to carry, or carrying, 50 or more
persons, including passengers or crew, or both, to maintain con 
tinuous hours of service at all times while the vessel is being navi 
gated between ports or places more than 200 miles apart. Action
was taken during the year to prevent interruption of the interna 
tional distress watch aboard ships, reported to have been caused
by use of the direction-finder affecting the ships regular receiving
antenna. The Commission also adopted a regulation for the pur 
pose of allowing the operation of very low power transmitters
aboard cable buoys under the supervision of cable-repair ships car 
rying licensed operators to assist these vessels in locating the cable
buoy by means of their direction-finder, particularly during condi 
tions of low visibility.
The regulations of foreign countries concerning the use of radio
in their territorial waters and harbors were studied in reference
to the requirements of the Commission concerning its regulations
covering such operation for the United States. At present, trans 
mission by ship stations when within the territorial and inland
waters of the United States is limited to messages originating on
ships with passengers or members of the crew, and on condition that
no interference is caused to the normal communication of other
radio services. Except for the handlinO" of emergency communica 
tions relating to the safe navigation of the vessel or relating to ships
in distress, the privileges granted by this regulation are extended
only to those foreigu ships which belong to countries granting simi 
lar privileges to American vessels in their territorial and inland
waters.
AVIATION SERVICE
The past year has been particularly marked by a pronouneed
growth in the use of air transport by the traveling public as well as
by those availing themselves of air-express facilities. This growth
in the use of air transport has resulted in the addition of many air 
craft schedules. In order that this increased use of aircraft might
be given proper protection, additional frequencies were allocated to
the aviation service by this Oommission. There are at present 7
major chains using 56 frequencies for communication with aircraft
and 34 frequencies for point-to-point communication for the trans 
mission of messages incident to the business of operation of air
transports.
Due to demands on the Commission for frequencies for radio com 
munication for aviation and many other services, it does not appear
probable that frequencies could be provided in sufficient quantIty to
permit the establishment of parallel radio-communication systems.
Under the rules and regulations of the Commission, all aircraft desir 
ing to Use radio in flying over routes equipped for radio communica 
tion are required to use the frequencies and facilities existing on that
route. Although the frequencies are limited, it is expected that fre 
quencies can be made available in sufficient number to accommodate,
under this policy, the needs of this important service.
One class of station established during the past year of particular
interest is that known as the" radio obstruction marker beacon sta-
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 37
tion." This type of station is used as a miniature radio beacon to
mark the locatIOn of the major obstructions to the airways served
by the radio range stations established and operated by the Depart 
ment of Commerce. Installations have been made up to the present
time in connection with broadcast station WOR
I
Newark; WJR,
Detroit; WBNS, Columbus; and WLW, CincinnatI.
POLICE
At the time of the last annual report made by the Federal Radio
Commission, 11 frequencies were allocated for the use of States
and municipalities for police radio purposes under that Commission's
rules and regulations. As this number was obviously insufficient to
care for the needs of this important service, the question of assign 
ing frequencies to police stations was placed upon the agenda of the
conference at MeXICO City in 1933 by the American delegation. As
a result of this conference, two bands of frequencies were set aside
for the use of police departments of North America, namely, 1,65{} 
1,715 kilocycle and 2,300-2,500 kilocycles. Previous to this confer 
ence, no international recognition had ever been given to police radio
service as operated by thIS country. In the International Radio 
telegraph Convention of Washington, 1927, and also in the Interna 
tional Telecommunication Convention of Madrid, 1932, a frequency
between 37.5 and 100 kilocycles was to be set aside to facilitatera~id
transmission and distribution of information of value in the detectIOn
of crime and pursuit of criminals, the specific frequency to be selected
by regional agreement. On a continent such as Europe) in which
there are a large number of separate nations, the use of a smgle radio
frequency fur the exchange of information is very valuable. How 
ever, in North America, due to the extensive wire system and the
large territory embraced within the boundaries of the various na 
tions, such a system has never been established. It is, therefore, felt
that the international recognition of a police radio system in which
orders and information are transmitted from headquarters to mQbile
police units is a distinct advance in crime control.
Subsequent to the Mexico City conference, an informal conference
was held by the representatives of Canada and the United States, as a
result of which a number of frequencies in this band were reserved for
the primary use of stations other than those of the United States and
others for the primary use of stations within the United States. In
addition to the bands specifically reserved by the Mexican conference
for police purposes, four frequencies were allocated from other bands
which may be used by State police stations without the probability
of interference to the service for which the frequency was primarily
allocated. There are at the present time 34 frequencies allocated by
this Government for the use of States and municipalities.
In order to determine whether or not the zone system established
under the Radio Commission's policy of administratIOn for municipal
police radio was satisfactory and whether or not the zone separation
was adequate, a questionnaire was sent to 117 municipalities. Replies
were received from 82, of which only 9 expressed themselves as being
not satisfied with the existing zone boundaries. There were no mu-
38 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
nicipalities objecting to the zone method of frequency assignment or
suggesting any other changes in the Commission's policies.
A very thorough study has been made of the police radio situation
and an operating plan is provided which permits the assigmnent of
facilities to every State if and when it is desired to establish police
radio, as well as permit the operation of police radio stations by all
cities in the United States. Vnder this plan of operation a specific
freqnency is allocated to each State. Unfortunately there are insuffi 
cient frequencies available to permit the assignment of exclusive fre 
qnencies. Further, it was not possible to provide a greater separation
between State police frequency assignments than 8 kilocycles, which
in many cases is leading to interference for which there is no immedi 
ate solution.
The frequencies allocated to municipalities are still assigned on a
zone basis. All cities within a zone are required to share and coop 
erate in the use of a single frequency. As a result of the analysis of
the questionnaire referred to above, zone boundaries were changed and
additional zones established. The new system has apparently elimi 
nated the conditions of which the nine municipalities complained in
·answer to the questionnaire and the Commission has fonnd n0 neces 
sity for changmg the system as established by the Federal Radio
Commission.
The following table shows the growth in the number of State and
municipal police stations regularly licensed to use the convontional
frequencies between 1,500 and 2,500 kilocycles:
Number of Number of
munlcipaJ. State police
police radio radio sta·
stations t10ns
Yea'
Number of Number of
municipal State police
police radio radio sta-
stations tions
1930. _
193L. _
1932 ._. _
34
"
1933 ___ .......____________
III 1Z
52 I.
1934___________________ ••_
153 27
78 13
1935 __________ ...__...____
194 53
Mention should be made at this point of the fact that a large
number of cities have been operating general experimental stations
on frequencies above 30,000 kilocycles on an experimental basis and
in much the same manner as stations operated under the rules gov 
erning municipal police stations. Certain specific frequencies have
been made available for this purpose and any or all of these fre 
quencies are available to any municipality. In view of the limited
range of the very high frequencies it has not as yet been necessary
to adopt a zone system of assignment or to make any particular
provision for interference suppression. The following table shows
the growth of stations of this class:
Yea'
Number ofNum~erof
licenseesfj~~~
Year
Number of Num!>er of
licenseesN~~~~d
1932 ._._.__~.•••
1933 ., _
1
32
2 1934 _
87 1935~~_
124
,,.
36"
3,.
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 39
Under the Communications Commission the number of stations
licensed for police activities have largely increased. A questionnaire
was submitted in May 1935, to all municipalities and States using
radio in connection with their activities, requesting information
embodied in the following table:
(1) CITIES AND COUNTIES
Number of municipalities reporting which answered questionnaire_ ro2
Number of municipal police stations operated___________________ 133
Number of fixed. general experimental (police) stations opernted__ 82
Number of portable mobile general experimental (police) stations
operated ,~_~_~___________________________________s 201
Number of cars equipped with receiversonl~'~5, 260
Number of fixed locations equipped with receivers only 3877
Total population served 48,291,780
Total area in square miles ..... 121,816
(2) STATES
Number of States reporting_____________________________________ 7
Number of State police~tationsoperated________________________ 24
Number of cars equipped with receivers only_____________________ 759
Number of fixed locations equipped with receivers only____________ 431
Populatioll served 26,809,731
Area in square miles____________________________________________ 231,029
Although information was requested as to the number of arrests
and value of property recovered as the result of radio, too few cities
maintaiued data on these items to make the report of any value, other
than indicating that a large number of arrests had been made and
a great amouut of property had been so recovered. Municipalities
are almost unanimous in reporting that there has been an improve 
ment in the criminal situation since the installation of radio.
In addition to the stations now licensed a number of States and
cities are considering the installation of radio systems, but have been
unable to do so due to limitations on funds.
It is evident from the results of the questionnaire and also from
information received from other sources that radio is becoming as
standard in police administration as is the fire alarm system or
police wire telegraph system.
Under the provisions of the rules and regulations of the Commis 
sion municipal police radio stations are permitted to exchange mes 
sages on a point-to-point basis provided those messages are of pri 
mary importance to mobile police units. A great deal of this com 
munication has been carried on and many municipalities have been
reported for exceeding this authority.
An organization known as the Associated Police Communication
Officers has been organized. That organization believes that the
close coordination desirable between law enforcement a.gencies may
be streugthened by exchanging all classes of police information on
a Nation-wide baSIS. In order to make this possible a proposed plan
is being prepared for an intercity police point-to-point telegraph
communication system which is expected to be presented to the Com 
mission for consideration through the International Association of
Chiefs of Police. The Associated Police Communication Officers
2 Means cars, motorcycles, police boats, etc.
B Precinct stations, fire and police headquarters, sberiffs' offices, etc.
40 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
recognizes the fact that the band of frequencies assigned to the police
departments for mobile communication does not offer wide enough
scope to permit the necessary firowth which is certain to take place in
the field of point-to point pohce communication.
MARINE FIRE STATIONS
The number of marine fire stations has been reduced to two, op 
erated by the cities of Detroit and Boston. Other cities formerly
licensed for this class of station have established municipal police
radio stations and have found that orders could be transmitted to
their fire boats through police facilities with sufficient dispatch to
make it uneconomic to operate a station specifically for communica 
tion with fire boats. It is believed that in the future when more
funds are available, many of these stations will be reestablished and
others will be installed. It is not believed that they will be con 
structed in sufficient number to make necessary the assignment of
additional frequencies for communication purposes.
SPECIAL EMERGENCY STATIONS
Special emergency stations were originally established for tele 
graphic communication throughout a power-distribution system in
the case of disruption of regnlar communication facilities by storms
or other emergencies. As a result of the experience of power com 
panies, this service has grown to embrace many other types of public
utilities such as water-distribution systems and forest-protection
agencies.
As a result of experience in the use of radio during floods the rules
governing this service now permit the use of radiotelephony as well
as radiotelegraphy, with a separate frequency for each type of
emission.
MOTION·PICTURE STATIONS
This class of station was established by the Federal Radio Com 
mission to meet a need for communication in the production of
motion pictures. In the making of films for scenes involving a
large body of men, groups of aircraft, radiocommunication is nec 
essary to coordinate the movements of the individuals comprising the
groups. Previous to the establishment of radiocommunication this
was done by means of hand signals and flags with little success.
On other occasions it is necessary for motion-picture companies to go
"on location" in remote spots not served by the usual communication
facilities. Ra.diocommunication in these circumstances is also
invaluable.
Although this service has been established for some years there
is only one station at present licensed and very little use has been
made of this facility.
GEOPIIYSICAL SERVICE
There have been no changes in the rules, regulations, or frequency
assignments to the geophysical stations as established by the Fed 
eral Ratlio Commission, nor has there been any marked change in the
activity of these stations.
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 41
As previously reported by the Federal Radio Commission this class
of station is of low power and is for use in connection with the l1e 
termination of the characteristics of the strata underneath the sur 
face of the earth. Radio is used for the transmission of timing
signals between various points strategically located in relation to
the area under investigation.
ALASKA
The plan now in force for licensing radio stations in Alaska was
formulated by the Federal Radio Commission in cooperation with
the United States Signal Corps in 1929. Since the Army is in 
trusted with the task of assuring reliable communication between the
United States and Alaska, and since at the present time it is im 
practicable for the Commission to establish offices in Alaska, no ap 
plication is granted until recommendation has been received from
the Office of the Chief Signal Officer with respect to the facilities
requested.
The main purpose of commercial radio systems in Alaska is to pro 
vide adequate facilities to important business interests, such as the
mining and packing interests, in places where land line facilities are
not available. As the Signal Corps operates the only means of com 
munication between Alaska and the United States the various mes 
sages handled from the radio stations operated by these interests are
consolidated at strategic points and are routed through appropriate
Army key stations. In addition to being responsible for communica 
tion with the United States, the Army also operates a communication
system within Alaska which is not permitted to be paralleled by
commercial radio circuits. .
Although as stated above the main purpose of these various radio
stations is to handle private communications, all licenses issued pro 
vide that those stations must be opened to the general public on a
general public service basis.
The period since the establishment of this Commission has heen
marked by the growth. in the number of point-to-point telephone sta 
tions established for short distance communication. There have also
been established two aviation chains serving Alaskan communities,
the largest of which is from Ketchikan to Fairbanks, Fairbanks to
Bethel, and Bethel to Nome. The other route reaches from Anchorage
through Iliamna down the Aleutian chain.
AMATEUR
There were on June 30, 1935, approximately 45,561 amateur sta 
tions licensed by the Commission. M,my of these stations are affili 
ated with the Naval Communications Reserves and the Army Ama 
teur Reserve Corps and regularly engage in practice drills requiring
the use of established naval and military operating procedure. A
large number of these stations as well as others not affiliated with the
Army and Navy continue to cooperate with the American Red Cross
in providing temporary emergency radio communication between
headquarters and isolated locations Or stricken areas in times of dis 
aster or other emergencies occasioned by floods, storms, earthquakes,
etc.
42 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
There are organized communication networks of amateur stations
offering commnnication facilities to practically all parts of the United
States. These stations have been of inestimable value to the public
in furnishing, in mllny cases, the sale means of communication during
the existence of emergencies. A number of stations have associated
themselves with scientific expeditions and furnish the means of com 
munication between the expeditions and their sponsors in the United
States.
On Navy Day, October 27, 1934, the Secretary of the Navy trans 
mitted from the Naval Station at Arlington, Va., and San Francisco,
Calif., messages addressed to amateurs, and on Armistiee Day, No 
vember 11, 1934, the Chief Signal Office, United States Army, trans 
mitted from Washington a message to members of the Army Amateur
Reserve Corps. Participation in copying these messages engaged
many hundreds of amateur station operators who entered the con 
test to test their skill and receiving ability.
Partly as a result of the congestion on medium hiO'h amateur
frequencies and partly because of their eagerness to (kvclop new
territory, amateurs have invaded the ultra-high frequency field in
great numbers. There~ulthus been the development of new and
improved equipment and a better understanding of the character 
istics and possibilities respecting the use of these frequencies. Tech 
nical progress in the lower frequency assignments has continued and
several notable contributions have been developed.
REPORTS OF DISCREPANCY IN OPERATION
All cases of irregular or illegal operation of radio stations other
than broadcast, reported by the Eield Section, are referred to this
section 0:£ the Engineering Department 101' corrective action. Dur 
ing the past year approximately 17 hundred cases were handled.
In no case has it been necessary tn take drastic steps in order to
obtain corrective action, and it is believed that operating conditions
in the radio industry have been much improved, particularly the
conditions in lnaritime service.
WIRE TELEGRAPH AND SUBMARINE CABLE
In the United States there are two wire telegraph carriers which
offer a Natian-wide domestic public-message telegraph service.
These are the Western Union Telegraph Co. and the Postal Tele 
graph-Cable Corporation. In addition to these 2 major telegraph
carriers there are 8 interstate telegraph carriers which serve local
areas, as shown below:
Canadian National'l'f~legraphs,Minnesotn.
Canadian Pacific Railroad Co., Maine and Vermont.
Centrul Idaho 'l'elegraph ancI 'l'elephone Co., Idaho.
Colorudo-'Vyoming Telegraph Co., Colorado and V{yoming.
Continental Telegraph Co., IdalIa, Montana, North Dakota, South Dakota,
and Washington.
Interstate 'l'elcgraph Co., California and Nevada.
Mountain Telegraph Co., Colorado.
Northern Telegraph Co., Maine.
In addition to the above telegraph carriers, several telephone car 
riers offer interstate telegraph service. This service is primarily
l'rivate line (leased wires) and Teletypewriter exchange service.
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 43
The Pacific Telephone & Telegraph Co. and its associates and the
'West Coast Telephone Co. offer a public-message telegraph service
iu California, Nevada, Oregon, and Washington. The carriers pro 
viding this service are:
Bell System companies:
American Telephone & Telegraph Co., long lines department.
Bell Telephone Co. of PennSYlvania.
Chesapeake & Potomac Telephone Co.
Chesapeake & Potomac Telephone Co. of Baltimore City.
Chesapeake & Potomac '.relephone Co. of Virginia.
Chesapeake & Potomac Telephone Co. of West Virginia.
Cincinnati and Suburban Bell Telephone Co. (including the Citizens Tele-
phone Co.).
Diamond State Telephone Co.
Illinois nell Telephone Co.
Indiana Bell Telephone Co.
Michigan Bell Telephone Co.
:Mountain States Telephone & Telegraph Co.
New England Telephone & Telegraph Co.
New J N'sey nell Telephone Co.
New Yurk Telephone Co.
Northwestern Bell Telephone Co.
Ohio Bell Telephone Co.
Pacific Telephone & Telegraph Co. (including the Home Telephone &
.Telegraph Co. of Spokane, Bell Telephone Co. of Nevada, and Southern
California Telephone Co.).
Southern nell Telephone & Telegraph Co,
Southern New England Telephone Co.
Sou:hwestern Bell Telephone Co.
Wisconsin Telephone Co.
Carolina Telephone & Telegraph Co., North Carolina.
Intermountain Telephone Co., Virginia, Tennessee, North Carolina.
Petersburg Telephone Co., Virginia.
Rio Grande Valley Telephone Co., Texas.
United Telephone Co., Kansas.
'Vest Coast Telephone Co., California and Nevada.
The route miles, wire miles, and telegraph-channel miles as of
October 1, 1934, operated by the telegraph carriers and the telephone
carriers which offer telegraph service, as reported to the Commission
under Telegraph Division Order No.9, are shown below.
Carrier
Route
miles
Telegraph
Wire miles channel
miles l
17- --------213
640 2,985
62 791
130 736
3,077 20,081
211 258
54,339 358,305
212,290 1,611,878
6,;1
2,726
222
206,332
45
2'2,
1,367
Bell System_______________________ _ _
Canadian National 2_ _ _
Canadian Pacific 1 • .___ _ _
Carolina Telegraph_____ _ _
Central Idaho .___________ _ _
Colorado-Wyoming_ _____ ___ _ _ _
Continental . _
Intermountain. . _
Interstate . .
Mountain________________________ _ _
Northern_____ __ ______ __ ___ __ _ _ .
Petersburg ._ __ _ __. _
Rio Grande. _
United . . _
West CoaSt-__ _ ,_______ _ _
PostaL________________ _ . .
'Vestern Union____ __ _ _
15,240,759
610
"6
14,545
(')
651
14,674
1,771
1,910,725 
"
".
670
651
13,292
10<
617
-------2;958
10
107
3,135
223
678,255 
2,159,28&
I A telegraph channel is a path which is suitable for tmnsmissio.o of telegraph signals between 2 teJepraph
stations. A telegraph cbannel mile is 1 mile of any telegraph channel which provides transmission In one
direction at a time.
~Line;; in the United States.
3 Not reported.
44 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
DurinO' the fiscal year ending June 30, 1935, the Western Union
Tele~ap'hCo. applIed to the Commission and was granted per 
missIOn to intall the following lines to supplement their existing
facilities:
From- To--
Number 01 Wire
conductors miles
Coot
$950
972
7,500
884
10,315
20
14
139
13
185
1
1
2
1
5
Fort Peck, Mont._+ _
Randolph Field, Tex _
Appalachia, Va ..
Oklahoma City, OkllL... _
1---:-1------:::::-
TotaL__~• • ••••• _
The ocean cable carriers subject to the jurisdiction of the Com 
mission are as follows:
The Western Union Telegraph Co.
All Amerif'a Cables, Inc., International Telephone & Telegraph System.
The Commercial Cable Co., International Telephone & Telegraph System.
The Commer<'ial Pacific Cable Co., International Telephone & Telegraph System.
The French Telegraph Cable Co.
The Mexican Telegraph Co.:
40 percent International Telephone & Telegraph System.
60 percent Western Union Teleg-raph Co.
The Cuban American Telephone & Telegraph Co.:
50 percent American Telephone & Telegraph Co.
50 percent International Telephone & Telegraph System.
The Western Union Telegraph Co. operates 10 trans-Atlantic cable
circuits between the United States and Europe and$ives direct serv 
ice between New York, Boston, Washington, and JVlOntreal in North
America, to the Azores Islands, Ireland, London, Paris, Emden, and
Amsterdam in Europe, and intermediate stations en route. Three
of these cables are inductively loaded and are operated by multi 
plex printer systems similar to the methods used extensIvely in
the Western Union domestic service. One of the loaded cables is
operated in one direction only, at a time, by means of eight channel
multiplex equipment at a speed of 50 words per minute per channel
for a total of 400 words per minute. Equipment has been developed
by the Western Union engineers for extending any channel of the
cable from any city in the United States to any CIty in Europe in
which the 'V"estern Union maintains an office. For economic reasons,
however, the extension of channels to 'inland cities is limited be 
cause these points have not sufficient trans-Atlantic traffic to utilize
a channel to fnll capacity. Channels of this cable are normally as 
signed hetween Montreal and Amsterdam, between Washington and
London, and between New York and Shorter's Court, London.
In addition to the trans-Atlantic circuits, the Western Union oper 
n{es two circuits from the United States to Cuba, connecting at
Rabana with the West India & Panama Co. to serve the West Indies;
one circuit from the United States to Barbados, British West Indies,
('onneding at Barbados to serve South American points; one land 
line circuit from New York to Galveston, connecting with the Mexi 
can Telel!l'aph Co. to provide direct service between New York and
Mexico City.
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 45
The capacity of the Western Union trans-Atlantic cable system
is 325 words per minute from New York t{) Europe and 440 words
per minute from Europe to New York. In addition to this capacity,
the eight chanuel permalloy cable circuit provides 400 words per
minute for use iu eIther direction.
All America Cables, Inc., operates five cable circuits between New
York, Cuba, the West Indies, Central and South America, and one
cable circuit between Florida and Habana, Cuba. These cables are
nonloaded and are operated with three element recorder code in both
directions at the same time. The fastest of these circuits operates at
a speed of 52 words per minute in each direction. By means of
automatic relays and selectors, direct service is provided between
New York and all major cities of Central and South America.
The capacity of the All America cable circuits between New York
and Central and South America is 175 words per minute in each
direction.
The Commercial Cable Co. operates six nonloaded trans-Atlantic
cable circuits by means of which direct service is provided from:
New York to the Azores Islands, Liverpool, London, Shorter's Court
(London), Paris, Rotterdam, and intermediate.station~en route.
The CommerCIal Cable Co. also operates two multIplex prmter chan- .
nels between New York and Emden on one of the 'Western Union
loaded cables. The fastest of the nonloaded cable circuits is operated
at the rate of 87 words. per minute recorder code in each direction.
As this speed is too great for one operator, this capacity is divided
into two equal channels in each direction at 43 words per minute per
channel.
The capacity of the Commercial Cable trans-Atlantic cable cir 
cuits is 320 words per minute from New York to Europe and 310
words per minute from Europe to New York.
The Commercial Pacific Cable Co. operates one trans-Pacific non 
loaded cable circuit to provide service between San Francisco, Hono 
lulu, Midway, Guam, Tokio (via Bonin), Manila, and Shanghai.
This cable circuit is divided into three sections: (1) San Franclsco 
Honolulu-Midway-Guam at 23 words per minute, recorder code, in
each direction; (2) Guam-Tokio (via Bonin-the cable from Bonin
to Tokio is owned by the Japanese Government) at 23 words per
D1inute, recorder code, in each direction; (3) Guam-Manila-Shanll'hul,
at 25 words per minute, recorder code, in each direction.~
The French Cable Co. operates two nonloaded trans-Atlant.ic
cable circuits and provides direct service between New York, London,
and Paris. Both cables are operated with recorder code, the fastest
{)f which is at a speed of 30 words per minute in each direction. The
capacity of the French Cable Co. trans-Atlantic cable circuits is 50
words per niinute in each direction.
The Mexican Telegraph Co. operates two nonloaded cable circuits
between Galveston, Tex., and Mexico. One cable circuit is operated
in conjunction with the Western Union to provide direct service
between New York and Mexico City. The other circuit is used for
service between Galveston, Tampico, Vera Cruz, Puerto Mexico,
Salina Cruz, and Mexico City. Both circuits are operated with
recorder code at 40 words per minute in each direction.
46 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
The Cuban American Telephone & Telegraph Co. operates four
cables between Miami and Habana, Cuba. The company is inter 
ested, primarily, in telephone service, but operates telegraph chan 
nels on two of the cables to furnish private line service (leased wires)
direct from cities in the United States to Habana. On October 16,
1934, four Manual Morse telegraph channels were in actual use on
these cables.
The cable plants and land-line plants used exclusively for ocean
cable operation are as follows:
------1-----
Western Union _
All America _
Commercial Cables__~_
Commercial Pacific _
Cable
nautical
miles
31,578
29,235
23,558
10,061
Land line
statute
miles
213,432
8,005
8,782
168
.French. .<__
Me:dcBIL __ . _
Cuban American _
Cablo
nautical
miles
7,495
1,559
205
LandIio&
statute
miles
1,032
1,385
7,187
The number of messages from telegraph transmission of the prin 
cipal carriers for the year ending December 31, 1934, as obtained
from their responses to Telegraph Division Order No. 12, are sho·wn
below:
Mes8ages
·Western Union~4,047,012
All AmcricR 1,896,966
Commercial Cubles 2,722,647
Commercial Pacific___________________________________ 328,759
RESEARCH
In order to keep the Commission informed on technical develop 
ments and improvements in wire and radio communication, consid 
erable technical research of communication literature is necessary.
This is particularly true of those developments which are of funda 
mental significance and importance to wire and radio service. The
department studies all new uses of radio and wire communication
in order to insure that the benefits of new inventions and develop 
ments in wire and radio communication may be nlude available to
the people of the United States, and further that general encour 
agement may be given to the most effective use of radio as required
by the Communications Act of 1934.
There are no fields of engineering in which new devices and in 
ventions are being disclosed at a morc rapid pace than in wire and
radio communications. The arts, both in theory and practice, are
extremely complex and cover a vast field. New devices and improve 
ments, no matter in what radio or wire services developed, are as a
general rule immediately reflected in potentialities for improvement
and actual application in all other services.
Reports are received of new developments from wire and radio
companies which form the basis for many special studies.
A technical library is maintained which contains some 4,500 book"
and publications, including research papers and scientific journals.
The subjects range through the general principles, equipment, and
operating practices of radio, telephonic and telegraphic cOllul1unica-
REPORT OF THE FEDERAL OOMMUNICATIONS OOMMISSION 47
tion systems, mathematics, physics, acoustics, eXl?erimental technique
in research work, evaluation engineering, pubhc-utility regulation,
historical data, and other subjects of like nature. Additions are con 
stantly being made to the library as new books and research papers
are published.
The number of current scientific journals subscribed to, both do 
mestic and foreign, now numbers over 40. These are routed regularly
to the engineers of the department.
During the year a number of reports have been prepared on the
history of inventions and developments in telegraphy, telephony, and
radio, and the most important Improvements in electrical communi 
cationdurin~recent years.
Considerable progress has been made in the collection of data on
high-frequency wave propagation. High-frequency waves, such as
are required in long-distance circuits, within the bands from approxi 
mately 2,500 to 20,000 kilocycles, are subject during their travel from
transmitter to receiver to certain losses and effects detrimental to sat 
isfactory communication. The losses are due to their natural spread 
ing in their spherical mode of propagation, to repeated refractions or
reflections between the ground and the ionized regions of the upper
atmosphere, and to absorption during their passage through these
ionized regions. The detrimental effects are fading, caused by varia 
tion in io"ization of the ionosphere and changes in phase or polariza 
tion, due to reception via two or more paths between transmitter and
receiver, magnetic storms, which often disrupt communication, echoes"
and skip-distance phenomena or zones of silence. All but the first or
these are functions of the frequency employed. In addition, the
ionization of the upper atmosphere is believed due primarily to the
photoelectric effect of the sun's ra;vs, and there is variation in trans 
mission with day and night conditlOns, with the seasons, and with the
years.
Notwithstanding the complexity and variability of the above fac 
tors, as a result of the work of mathematical physicists, given a spe 
cific path over which transmission is desired, it is possible, with
certain simplifying assumptions as to the conditions in the medium
of transmission, to make predictions, based on theoretical computa 
tions and the results of experience, with a fair degree of accuracy as
to the most suitable frequencies to use for the given path and the
operating power required for satisfactory, service.
There is much need of experimental data with which to verify
and check the results of theory and the accuracy of formulae ad 
vanced. Commercial operating companies are, of course, intensely
iuterested in this work and are providing a large amount of the data
required. Many of them have published comprehensive reports on
the transmission characteristics of the frequencies used over their
circuits. The Commission is in a position to assist materially in
this work by obtaining from all of its licensees and coordinating
certain technical data on the actual use beiug made of the frequencies
under discussion. This data, after analysis over the seasons and
years, will also assist the Commission greatly in making equitable
distribution of the frequencies to the various services and in obtain 
ing maximum use of the spectrum, as congestion increases.
28008-36-----4
48 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
The allocation of the ultra-high frequencies to commercial services
remains the foremost allocation problem before the Department at
the present time. The Commission has been desirous of proceeding
with this work as rapidly as possible in order to provide many new
radio services by reason of which both the public and the radio
industry would undoubtedly receive many benefits. On the other
hand, it has been aware of the dangers and disadvantages to both
the public and the industry of an allocation prematurely made, and
its policy has been to proceed with caution until assured that the
allocation may be based on a firm foundation of engineering facts.
Every effort has, therefore, been made, not only during the past year,
but throughout the past 4 years, to obtain the requisite technical
and nontechnical data. Not only must reliable information on the
transmission characteristics of the frequencies be obtained, but the
many services seeking frequency assignments must be evaluated from
the viewpoint of the public's interest. Also complete informat.ion on
the apparatus available for, and the conditions obtaining "'1thin,
each service must be at hand. There are a great many factors which
must be carefully studied.
Although many valuable contributions of data, both theoretical and
experimentaI, have recently been published, or reported to the Com 
mission, it has not felt that the available material was sufficient to
warrant attempting a commercial allocation at this time. Accord 
ingly, the licenses of experimental stations operating on the ultra 
high frequencies were renewed in June for the next license period,
with the hope that within it sufficient data would be obtained to allo 
cate at least a portion, if not all of the frequency bands, for which
apparatus is available.
During the past year the number of radio stations in the experi 
mental service has increased 26 percent. There are now 991 licensed
general and special experimental stations of which 845 are under the
Jurisdiction of the Telegraph Division, 18 under the jurisdiction of
the Telephone Division, and 128 under the jurisdiction of the Broad 
cast Division.
Of these licensees many are verifying and checking the results of
theoretical work or engaged in problems of pure research. Others
are interested primarily in the improvement of equipment and
methods of operation in the various services. A large proportion,
particularly those operating on the ultrahigh frequencies, are en 
deavoring to determme the usefulness of these frequencies for radio
communication in services already authorized on the lower frequencies
or in new services at the present time unauthorized. The services in
which licensees have shown the greatest interest in this respect are
aviation, municipal police, State police, broadcast pick-up, broadcast,
visual broadcast, special emergency, geophysical, a proposed service
for railroads, a proposed service for forestry, fixed public aud public
coastal, fixed public press and coastal, and ship harbor.
TELEPHONE SECTION
I. ROUTINE
WIRE
An extensive study was made of the Long Lines Department of the
American Telephone & Telegraph Co. In connection with this stndy
detailed maps of the Long Lines Department's telephone and tele 
graph trunk routes were prepared giving the following data:
a. The cable routes and portions of routes of circuits owned by the
Long Lines Department.
b. The open wire routes or portion of routes owned by Long Lines
Department.
c. The aerial, underground, and submarine cable extensions of or
portions of the Long Lines Department where circuits are owned
by the Associated Bell Cos. and leased by the Long Lines Depart 
ment.
d. The open wire extensions of or portions of the Long Lines
Department routes, where circuits are leased from the Associated
Bell Cos.
e. Bell System routes extending outside the United States.
f. Route lines extending to connecting companies within or out 
side of the United States.
g. Radiotelephone transmitting and receiving stations owned by
the American Telephone & Telegraph Co.
h. Location of repeater stations, toll test stations, and central
office equipment owned and leased by the American Telephone &
Telegraph Co.
In connection with this study a detailed study and inspection was
made of the telephone, telegraph, and radio equipment located in the
New York Long Lines Building located at 32 Sixth Avenue, New
York. Also, in this connection a detailed study and inspection was
made of the cables, loading coils, duct, manholes, and repeater equip 
ment located at the terminal points and repeater statIOns between
New York and Washington on the American Telephone & Telegraph
Co.'s New York-Washington toll route. A study was made of the
route, make-up, ownershIp, classification of telephone and telegraph
circuits, toll telephone trunks and maintenance personnel of the
American Telephone & Telegraph Co.'s New York-Washington and
Pittsburgh-Cleveland cables with diagrams of same indicating the
size of cables and wire contained therein.
STUDY OF EXTENT AND EMPLOYMENT OF THE BELL SYSTEM ASSETS
A study was made and a chart was prepared of the assets, per 
centage of common stock owned by the American Telephone & Tele 
graph Co., along with the percentage owned by others; and the assets
49
50 REPORT OF THE FEDERAL COMMUNICATIONS COMMiSSION
of the following companies comprising the Bell System along with
the companies which aid the American Telephone & Telegraph Co.
in serving these companies: ,
The American Telephone & Telegraph Co.
The Long Lines Department of the American Telephone & Tele-
graph Co.
The Eastern Telephone & Telegraph Co., (Canada).
The Transpacific Communication Co., Ltd.
The Cuban American Telephone & Telegraph Co.
The 195 Broadway Corporation.
The nell Telephone Securities Co.
The Bell Telephone Laboratories, Inc.
The Western Electric Co.
The Teletype Corporation.
The Electrical Research Products, Inc.
Associated operating companies of the nell System:
1. The New England Telephone & Telegraph Co.
2. The Southern Ncw England Telephone Co.
3. The Southern Bell Telephone & Telegraph Co.
4. The Chesapeake & Potomac Telephone Co.
5. The Chesapeake & Potomac Telephone Co. of Baltimore
City.
6. The Chesapeake & Potomac Telephone Co. of Virginia.
7.Th~Chesapeake & Potomac Telephone Co. of West Vir 
gmla.
8. The Southwestern Bell Telephone Co.
9. The Illiuois nell Telephone Co.
10. The Indiana Bell Telephone Co.
11. The Cincinnati & Suburban nell Telephone Co.
12. The Ohio Bell Telephone Co.
13. The Wisconsin Telephone Co.
14. The Michigan Bell Telephone Co.
15. The Bell Telephone Co. of Canada.
16. The New Jersey Bell Telephone Co.
17. The Diamond State Telephone Co.
18. The Bell Telephone Co. of Pennsylvania.
19. The New York Telephone Co.
20. The Pacific Telephone & Telegraph Co.
21. The Northwestern Bell Telephone Co.
22. The Mountain States Telephone & Telegraph Co.
THE BELL SYSTEM TOLL ROUTES
A study was made of the extent of the major physical telephone
plant of the Long Lines Department of the American Telephone &
Telegraph Co. and its 24 associated telephone companies, comprising
the Bell System. In this connection a map was prepared on which
was indicated the routes taken between the telephone systems of the
United States and the telephone systems of Canada and Mexico; the
routeS' taken by transoceanic telephone connections, ship-to-shore tele 
phone service, and the extent of the network of the associated com 
panies' toll routes.
RADIO
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 51
GENERAL LONG DISTANCE TOLL SElRVICE
In connection with study of "long distance toll service" a study
of the" general toll switching plan" was ma,de along with the trans 
mission features employed on long distance toll circuits.
SPECIAL STUDIES
The following special studies were made by this department:
1. Frequency band width for certain Bell System services.
2. "Board to board" and "sta.tion to station" bases for ex 
change and" toll-rate treatment."
3. Bell SY5tem work estimftte accounting.
4. Study of data to be covered by the telephone and telegmph
caTriers in connection with "Applications for certificates of
convenience and necessity."
5. Possibility of employing carrier telephony in cable.
6. Utilization of bhght-killed chestnut poles.
CERTlFW,\TES OF CONVENIENCE AND NECESSITY
. Applications were made for the following certificates of conven 
Ience.
American Telephone & Telegraph Co., and Diamond State Telephone Co.
Application for construction of aerial cnhle line from Dover, Del., to Delmar,
I\1d.
American Telephone & Telegraph Co., and C. & P. rrelephone Co., of Baltimore
City. Application for COBstruction of aerial cable line from Delmar, Md., to
Salisbury, :Md.
C. & P. Telephone Co. of Baltimore City, and American Telephone & Tele·
graph Co, Appiication for construction of aerial cable line, Queenstown to
Princess Anne, IUd.
American Telephone & Teleg-raph Co" and New York Telephone Co. Applica 
tion for constructing coaxial cable, New York, N. Y., to Philadelphia, Pa.
In each case, field surveys were made of the engineering and con 
struction methods employed by the various companies.
Ul"IFORM SYSTKM OF ACCOUNTS }'OR 'l'ELEPIIOC'a; COMPANIES
This department prepared data for usc in revising the uniform
system of ftCeOlmts for telephone companies, including ftttendance
in conferences ,vith Accounting Department of this Commission, rep 
resentatives of State commissions, n.nd representatives of various
telephone companies.
'.rARU'F CIRCULAR No. 1
Assistance WftS given in the preparation of data for usc in Tariff
Circular No.1, Interstate and Foreign~WireRadio Communications
and attended conferences relating thereto with the Accounting De 
partnlent of this Oomulission, representatives of State commissions,
andrepresentatives of various telephone, telegraph, and radio com 
panICS.
POINT-TO-POINT RADIO TELEPHONE STATIONS
On June 30, 1935, there were 36 point-to-point radiotelephone sta 
tions licensed for international and/or overseas fixed public service.
These stations are located at the following points:
52 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
L>cation
Number of
stations
For service to-
Rocky Point, N. Y . .. _
Lawrenceville, N. J _
Do _
Do__ . _
Hialeah, Fla _
Do. . _
Dixon, CaliL "_,_._w _
KahukU, T. H _
Hawaiian Islands. .. _
ll~Eurtf~:
3 South America.
2 Bermuda.
1 Bahamas.
1 Central and South America, and the West Indies.
6 Hawaii, Asia, and Australia.
2 United States and Philippines.
8 Inter-island.
I Denotes long-wave station. Others are short-wave (high frequency).
In addition to these stations, an additional long-wave (low fre 
quency) station for service to Europe is under construction near
Bradley, Maine, and is expected to be completed by February 1937.
At the end of 1934 it was reported that three-quarter million dollars
had been expended on this project, which from an engineering stand 
point, is one of considerable magnitude.
The trans-Atlantic circuits to Europe which are the most important
of all the overseas radio circuits, are subject to the greatest natural
difficulty in maintaining high-grade reliable service by short waves
(high frequencies), particularly during years of maXImum sunspot
disturbances. In general when the short-wave circuits are commer 
cially inoperative because of this phenomena, service to Europe is
contmued by use of the long-wave station at Rocky Point, Long
Island. The additional long-wave station now under construction in
Maine will supplement the service of the Long Island station and will
he particularly valuable during these periods.
During the year the Commission authorized additional direct point 
to-point radiotelephone circuits for public service from Hialeah, Fla.,
to Tegncigalpa, Honduras; Kingston, Jamaica, and Santo Domingo,
Dominican Republic. In addition, service was inaugnrated during thc
year via existing radio circuits and foreign land wire telephone sys 
tems from the United States to the following new points:
Beirut, Syria, August 27, 1934.
Palestine (principal cities), October 15, 1934.
Rabat, Morocco, December I, 1934.
Algeria (principal cities), December I, 1934.
Tunisia (principal cities), December 1, 1934.
French Indo China (three cities), December 1, 1934.
Japan (principal cities), December 8, 1934.
Phillppines (Laguna and Tayahas), February 3, 1935.
Barranquilla, Colombia. November 8, 1934.
Brazil (seven new points), September 1934 to May 1935.
A total of more than 60 countries may be reached by this public
telephone service which utilizes radio for intercontinental connections
and for overseas circuits to the principal islands. On June 1, 1935,
evening rates for trans-Atlantic calls were made effective at 5 p. m.
local time at points of origin in the United States and from 10 p. m.
to 10 a. m. at points of origin in Europe.
There are no point-to-point radiotelephone stations licensed by the
Commission for fixed private service at any location or for either
private or public service entirely within the continental United
States. Point-to-point radiotelephone stations in Alaska are men 
tioned elsewhere in this report.
Britlm shIps:
Aquitania
Berengaria
Caledonia
Empress of Britain
Majestio
M anarch 01 Bermuda
Olympic
Queen of Bermuda.
French ships:
lle de France
Normandie
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 53
TELErHONY IN THE MARITIME MOBILE SERVICE
There are 6 coastal harbor radiotelephone stations and 2 coastal
radiotelel'hone stations in the public coastal service licensed by the
CommisslOn for operation in the United States, Territories, and pos 
sessions, exclusive of Alaska. In addition, six fixed public radio 
telephone stations at Dixon, Calif., are licensed secondarily for com 
munication with ship radiotelephone stations.
Two coastal harbor telephone stations are licensed for private
service, one of which is operated b:[ the Inland Waterways Corpora 
tion relative to commumcation wIth their vessel in the harbor of
New Orleans. The other station is operated by the city of New York
for communication with the municipal vessel MUXJon used in Ne,w
York Harbor in officially welcoming distinguished visitors to that
city. Twenty-six ship stations were licensed to use radiotelephony
for connecting with the land-wire telephone system via public coastal
harbor stations, not including stations aboard vessels in Alaskan
waters.
Public telephone service from points in the United States to ships
at sea is available through the medium of reg'lllar coastal radiotele 
phone stations at Ocean Gate and Lawrenceville, N. J., and through
the auxiliary use of a point-to-point radiotelephone station at Dixon,
Calif. The following-named vessels, all of foreign nationality, which
carry American citizens among their passengers, are equipped to
render this service:
German ships:
Albert BalUn
Bremen
Oolumbus
Deutschland
]jJuropa
Hamburg
Homerio
New York
Resolute
naHan ships:
Oonte Di Savoia
Relll
Public coastal harbor radiotelephone stations near Seattle, Wash.;
San Francisco, Calif. j San Pedro, Calif.; Lorain, Ohio; New York,
N. Y.; and Boston, Mass., are licensed for communication primarily
with low-power ship telephone stations aboard vessels in and near
harbors and on the Great Lakes. These shore radio stations have
facilities for direct connection with the public land-wire telephone
system and may be used also for telephone service to ocean-going
vessels nearing or leaving principal ports. Snbstantial development
of this service appears to depend upon improved business conditions
in the maritime and fishing trade. At present, several fishing trawl 
ers are the principal subscribers to the service of the Boston station;
in addition two of the largest passenger steamers on Lake Erie
recently obtained Commission authority to operate their shipboard
radio stations for public telephone communication with the coastal
radiotelephone station near Lorain, Ohio, for connection with tele 
phones ashore.
54 nEPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
2. PUBLIC RESOLUTION NO.8
The investigative work called for by the Communications Act
of 1934 and Public Resolution No.8, Seventy-fourth Congress, has
been separately organized in the Engineering Department as follows:
I. Patents, Research, Development, and Servicing
(a) Patent structure.
(b) Cost of developments and method of paying such costs.
(e) Methods of operation of Bell Telephone Laboratories and re 
lationship to all subsidiaries.
(d) Electric Research Products, Inc., and methods of handling
development of byproducts.
II. Manufacturing
(a) Cost of manufacturing of equipment and relationship of sales
price, including complete stl'dyof loading costs.
(b) Relationship of manufacturing and sales costs of 'Western
Electric to those of independents.
(0) Manufacture of byproducts and the apportionment of costs
between byproducts and telephone equipment.
III. Operations (Long Lines)
(m) Separation of toll from exchange, including methods of sep 
arating property expense and revenue.
(b) Separation of technical jurisdiction as between the Federal
Communications Commission and State commissions.
(e) Relation of operating companies and effect of service contracts.
(d) Effect of consolidations on operations.
IV. Valuation and Depreciation
(a) Study of all methods of determining depreciation and their
applIcation to telephone.
(b) Mergers and consolidations.
(e) Methods of determining valuation of telephone plant.
I. PATENTS, RESEARCH, DEVELOPMENT, AND SERVICING
Exhibits have been secured from the American Telephone & Tele 
graph Co. and associated companies in the form of reports upon the
patent structure and developments, and upona~reement.sbetween
the American Telephone & Telegraph Co. and the as,soclated com 
panies, independent domestic companies, and foreign companies. As
an aid to this study and in the determination of the extent of the
patent structure of the American Telephone & Telegraph Co. and
associated companies, independentmanufacturers of telephone equip 
ment have furnished material concerning their patent structures and
developments.
Studies based upon these reports have been prepared and a com 
parison made of the data received in those reports. Special studies
arc under way on the operations of Bell Telephone Laboratories and
their relation to all Bell subsidiaries; the cost of development work
and the methods of paying such costs and Electrical Research Prod 
uets, Inc., and methods of handling the development of byproducts.
Examination has been made of the agreements between the Ameri 
cau Telephone & Telegraph Co. aud assoeiated domestic and for-
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 55
eign companies to determine the extent to which such agreements
affect communications and the charges therefor.
Data has been secured upon the policies and management of the
Electrical Research Products. Inc., and the preparation of studies
relative thereto. This material is being correlated in order to give
a comprehensive picture of this phase of the telephone industry.
II. MANUFACTURING
In the preparation of detailed definitiou of the functions, scope,
purposes, and objectives of the unit, plans have been developed to
disclose a comprehensive picture of the principles involved in arriv 
ing at the cost of telephone-apparatus manufacture.
Exhibits have been secured from Western Electric Co. and several
" independent" manufatlturers concerning their financial statements,
charters, bylaws, manufacturing organization, prices, discount sheets,
catalogs, and comparative net prices; forms of annual supply con 
tracts, manufacturing and accounting costing' practices, etc. Pre 
liminary visits to, surveys of, and reports upon all American manu 
facturinii establishmeuts engaged in general telephone apparatus
aud eqmpment supply have been made.
Studies have been started at the plants of all five manufacturers
of haud telephone sets of the detailed break-down of labor, material,
and overhead costs on each and every manufacturing operation
entering into each piece part and assembly, ultimately constituting
the completed set in each case. A similar cost break-down has been
staTted of certain cable manufactured at the Point Breeze works of
the Western Electric Co. for an interstate toll line between Dover
and Salisbury, Md.
III. OPERATIONS
The chief problem of this unit is to lay the groundwork for the
determination of the property properly assignable to the furnishing
of interstate and international telephone toll service and the expenses
and revenues applicable thereto.
This problem is greatly complicated by the use in common of
telephone plant for combinations of local exchange and toll service
and the use in common of toll plant for rendering both intrastate
and interstate toll service. The joint use of plant for nontelephone
service must also be taken into account.
Such use of plant in common makes it necessary to allocate the
plant as a whole and even with respect to its component parts ac 
cording to its actual use in practice. Obviously corresponding allo 
cations of expenses and revenues must also be made.
Two principalmethod~of allocating plant, revenues, and expenses
of telephone carriers have been and are now being employed, notably
the so-called" board-to-board" and the" station-to-station" bases.
A study is under way to analyze both of these methods. In this
connectIOn a classification is being made of all plant elements accord 
ing to use. This classification includes studies of:
Use for exchange service only;
Use for toll service only-intrastate, interstate, or both j
Use for both exchange and toll service;
56 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
Use for both exchange and toll service, but primarily provided
for local exchange service;
Use for nontelephone service.
With the object of presenting to the Commission the comparative
results of allocation of plant elements on the different bases under
consideration, it was early planned to make such allocations of part
of the plant of one of the associated Bell companies, selecting for the
purpose representative cities in its territory embodying plant fea 
tures found with minor variations throughout the Bell System. Mary 
land was selected as representative territory of an operating company.
The particular representative towns selected for the prelimmary
survey are: Baltimore, Hagerstown, Frederick, Cambridge, Towson,
Arbutus Indianhead, Reisterstown.
In addition, the Wisconsin-Bradley exchanges adjacent to the Dis 
trict of Columbia have been selected and the outside toll plant of the
Chesapeake & Potomac Telephone Co. of Baltimore City.
All three bases of allocation described above are to be used. The
particular allocations will be carried out in considerably greater detail
than will probably be required in actual allocations to be made later,
the purpose being to present to the Commission data which will en 
able it to determine the particular broad basis it will eventually pre 
scribe for making allocatIOns and the degree of detail required to reach
sufficiently accurate results with a maximum saving in effort and
expense.
IV. VALUATION AND DEPRECIATION
The work of this unit has been concentrated on codifying the under 
lying principles and practices to be followed in determining the vari 
ous factors pertinent to the valuation of public utilities and which
are not directly available for its books of account, as well as the
processes and procedures necessary for the interpretation and recon 
ciliation of such various factors.
INTERNATIONAL SECTION
GENERAL
The Section, in addition to the special work mentioned below, has
carried on its regular work of coordination of international and
interdepartmeut relatious in connection with wire, radio, and cable
services.
The personnel of the Sectiou is equipped to make translations from
foreign langnages, and generally to be of assistance to the other
departments and sections of the Commission in the carrying out of the
various phases of Commission activity.
Particular attention has been given to the question of reducing
interference among the various services using the radio spectrum,
notably in the broadcastiug band involving stations in North America
and in the medium high and high bands involving stations throughout
the world. A number of interference cases involvinl( interference
between the United States and stations in other countries have been
studied and the solution has been found by mutual adjustments,
requiring in some cases change of frequencies.
INTERNATIONAL CONSULTING COMMITTEE ON RADIO
COMMUNICATIONS
The third meeting of the International Consulting Committee on
Radio (C. C. I. R.) met at Lisbon, Portugal, from September 22
to October 10, 1934. The United States Government was repre 
sented by a delegation of five members, headed by Dr. J. H. Dellin 
ger, National Bureau of Standards, and including Capt. S. C.
Hooper, Director of Naval Communications, Navy Department;
Maj. Roger B. Colton, Signal Corps, United States Army; Mr. W.
V. Whittington, Department of State; and Mr. Gerald C. Gross,
Chief, International Section, Federal Communications Commission.
The preparatory work of the United States was done under the active
direction of the Commission for a period of approximately 1 year
prior to the meeting, during which time representatives of all Gov 
ernment departments and commercial organizations interested in
radio met from time to time to prepare the proposals of the United
States for the conference and to consider the proposals of other na 
tions. The following countries participated in the conference:
Germany, Argentina, Belgium, Vatican City State, Swiss Con 
federation, Denmark, Spain, United States of America,
France, Great Britain, Hungary, British Iudia, Dutch East
Indies, Italy, Japan, Lithuania, Morocco, Norway, Nether 
lauds, Poland, Portugal, Rumania, Sweden, Czechoslovakia.
In addition to these governments, a number of private companies and
international organizations participated.
57
58 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
This meeting of the C. C. 1. R. was noteworthy for the spirit of
good will which characterized its work. There was a somewhat
greater ontput of opinions and new questions than at the other two
meetings.
This meeting was the first conference held under the new arrange 
ment for official languages set np by the Madrid Convention (art. 21).
The International Bureau provided excellent official interpreters and
all proceedings were faithfully condncted on a strictly bilingual
basis. This was a vast improvement over the situation in previous
conferences; in fact, the insurance that all delegates understood what
was being said, and the lack of argument over the language problem,
contributed in no small degree to the noteworthy spirit of harmony at
this conference.
The results of the conference appear in the formal Opinions Nos.
52 to 77, inclusive, which were adopted unanimously by the confer 
ence and which include, for the most part, statements of the techni 
cal status of the radio art at the time the opinions were expressed
of the various questions considered. These questions had a wide
range and covered such matteTIl as selectivity and frequency stability
of receiving sets; propagation characteristics of various radio fre 
quencies throughout the radio spectrum; the reduction of interfer 
ence in the shared bands, and related matters.
The next meeting of the C. C. 1. R. will be held in Bucharest, Ru 
mania, in the spring of 1937.
INTERDEPARTMENTAL
A: considerable amount of work was doue by this Section in corre 
lating the radio activities of the Commission with the activities of
other Government departments interested in radio.
The Chief of the Section served as secretary of the Interdepart 
ment Radio Advisory Committee and as a member of the technical
subcommittee of that committee. In that capacity he aided in the
preparation of a revision of previous Executive orders assigning fre 
quencies to Government departments in accordance with the pro 
visions of the Communications Act of 1934. This work resulted in
the effective coordination by the Government radio stations and com 
mercial radio stations, providing for the lnore efficient and economi 
cal use of the radio spectrum.
ENGINEERING CONFERENCES ON AUTO-ALARM EQUIPMENT
Several conferences were held by the representatives of the Com 
mission and other Government departments and manufacturers of
radio equipment with a view to adopting specifications for auto 
alarm equipment which would meet the requirements of the separate
internationul conventions governing the use of radio on shipboard,
including the General Radio Regulations annexed. to the Interna 
tional Telecommunication Convention of Madrid, 1932. Tentative
specifications and approval tests leading to the issuance of approved
type certificates for auto-alarm equipment, if the equipment can meet
the tests laid down, were adopted.
FIELD SECTION
On August 13, 1934, the Division of Field Operations was trans 
ferred to the Engineering Department of the Commission with the
designation of Field Section.
The Field Section has jurisdiction over the activities of the 21
field districts and 2 independent monitoring stations; 1 at Grand
Island, Nebr., and 1 at Great Lakes, Ill. Five other monitoring sta 
tions are operated in conjunction with headquarters offices, at Boston,
Baltimore, Atlanta, Los Angeles, and Portland.
DISTRICTS
The headquarters of the 21 field districts are situated as follows:
District
First. .•. .._. _
Second. _._. _
Third .• _
Fourth . __ ._. . _
Fifth. . ._
Sixth. • . ." _
seventh _
Eighth~_+• _
Ninth _
Tenth . . _
Eleventh_. _
Twelfth •.. ••_+ _
Thirteenth + _
Fourteenth .~_
Futeenth " _
Sixteentb~_
Sevent66ntb_. _+ •• _
Eighteenth _
Nineteentb ••~.~~_
Twentieth • _
Twenty-ftrsL~_
Hoodquarters
Boston, Mass . •
New York, N. Y _
Philadelphia, Pa . _
Baltimore, Md__~~_
Norfolk, Va . _
Atlanta, Ga _
Miami, Fla _
New Orleans, La. • _
Galveston, 'fex _
Dallas, Tex _
Los Angeles, Cali£- _•• _
San Francisco, CaliL _
Portland, Oreg. _
Seattle, Wash .
Denver, Colo ._____ __+ _
St. Paul, Minu _
Kansas City, Mo . • _
Chicago, 1I1 . . _
Detroit, Mich _
Buffalo, N. Y __ . _
Honolulu, HawaiL. _
Inspector In charge
Charles C. Koister.
Arthur Batcheller.
Louis E. Kearney.
George E. Sterling.
Edward Bennett.
George S. Turner.
Joe II. McKinney.
Theodore G. Deiler.
LQuis L. McCabe.
Frank M. Kratokvil.
Bernard H. Linden.
V. Ford Greaves.
Kenneth O. Clark.
Landon C. Herndon.
Edwin H. Heiser.
John M. Sherman.
William J. McDonell.
Harold D. Hayes.
~meryH. Lee.
Milton W. Grinnell.
James M. Chapple.
The Honolulu office was opened on February 15, 1935. There are
employed in the field 67 inspectors, 39 clerks, 1 Diesel engineman,
1 j,anitoq Washington office, 2 engineers, 2 clerks. Total number
of employees, 112.
ADDITIONAL LAND AT GRAND ISLAND, NEBR.
Under authority granted in the First Deficiency Appropriation
Act, fiscal year 1935, approved March 21, 1935, funds were made
available for the purchase of an additional tract of land containing
approximately 10 acres adjacent to that now owned at Grand Island,
Nebr. The purchase of this land permitted an extension of the an 
tenna system for monitoring purposes thus increasing the efficiency
of this station. Authority was also given to enclose the property,
which is being done.
59
60 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
RENTED QUARTERS
Because of there not being Government office space available it
is necessary to rent space as follows: Atlanta, Ga., monitoring station;
Los Angeles, Calif., office space; Los Angeles, Calif., monitoring
station;Chica~o,Ill., office space. At Galveston, Tex., the Com 
mission OCCUpIes space obtained for it by the local chamber of
commerce without the usual rental charge.
SHIP INSPECTIONS FOR SAFETY
The importance of frequent iuspections at all ports of ship radio
installations as contemplated under the act of June 24, 1910" amended
July 23,1912, the purpose of which is to promote safety of life at sea,
is best demonstrated by the fact that durmg the year all of the vessels
so inspected which met with disaster were able to use their radio
stations to summon assistance. Among the outstanding cases were
the American steamship MOTTo 0 Mtle, American steamshIp H avanna,
and the American steamship Mohawk.
During the year there were 13,384 clearances from our ports of
American and foreign ships subject to the above act. During the
same period 6,376 inspections were made. On voluntarily equipped
ships 3,233 iuspections were made.
CAPACITY TEST OF EMERGENCY STORAGE BATTERIES
During this year a standard method of determining the available
capacity of storage batteries used as an emergency source of power
on compulsorily equipped vessels was inaugurated. These tests de 
veloped the inefficiency of the batteries in a number of cases, some of
which involved the entire installation, while in others a few defective
cells were detected. In each case new installations were made or the
defective cells were repaired or removed and new cells added.
INSPECTION OF STATIONS ON LAND
Under existing instructions, inspections of broadcast stations are
made semiannually, and annual inspections are made of aeronautical,
aircraft, aeronautical point-to-point, airJ?ort, coastal stations in the
public coastal service, marine relay, mumcipal and State police, spe 
cial emergency, and marine fire stations. Special inspections are
made of the following: Point-to-point telegraph and telephone sta 
tions in the fixed public and fixed public press services, geophysical,
experimental, broadcast pick-up, and motion-picture stations and
a.mateur.
During the year 1,205 broadcast station inspections were made.
There were 1,027 inspections made of fixed and land stations other
than broadcast.
In addition to the above, 134 inspections were made of the 359
licensed aircraft stations.
BROADCAST ALLOCATION SURVEY
The seven test cars participated in the allocation survey for the
purpose of determining the radiation characteristics of clear-channel
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 61
stations and the night service area of regional and local broadcasting
stations in cities in the areas covered by each car.
The Baltimore test car was used in connection with determining
the effective height of the antennae employed at points where receiv 
ers and automatic recorders were installed. Th,S trip included the
following cities: Lexington, Mass.; Morristown, N. J.; Atlanta, Ga.;
Dallas, Tex.; Los Angeles, Calif.; San Francisco, Calif.; Portland,
Oreg.; Seattle, Wash.; Salt Lake City, Utah; Denver, Colo.; Grand
Island, Nebr.; and Chicago, Ill. The total distance covered on the
above trip was 10,484 miles.
UNLICENSED STATIONS
During the year reports were received of operation of 441 unli 
censed radio stations. In each case an investigation was made which
resulted in discontinued operation of 371, leaving 70 pending cases
at the close of the year. These are being investigated.
INTERFERENCE COMPLAINTS
There were received during the year 3,754 complaints of interfer 
ence with radio reception. As a result of investigations, remedial
action was taken resulting in the closing of 3,407 of these cases. The
remaining 347 open cases are being investigated. In each case every
effort is made to insure relief to the complainant before the case is
closed.
FREQUENCY MEASUREMENTS
During the year there were made 13,668 measurements of the fre 
quencies of United States broadcast stations. There were 355 devia 
tions beyond the permitted tolerance of 50 cycles (plus or minus).
Of statlOns other than broadcast, there were 27,877 measurements
made and 2,766 deviations reported. Foreign-station measurements
numbered 720, with 207 deviations. As a result of monitoring the
above United States stations, 2,528 discrepancy notices were served
for violations of the international treaty, national laws, and regula 
tions of the Commission. There were reported by the monitoring
stations, 86 cases of excessive harmonic emissions.
INSPECTIONS OF STATIONS
There were 6,376 inspections made of the radio installations on
American and foreign ships required by law to be equipped with
radio apparatus. These inspectlOns developed 191 cases where the
sailing of the vessel would have been in violation of the law had not
corrective action been taken. In 184 cases the masters were served
with official notices. Inspections of voluntarily equipped ships num 
bered 3,233. These inspections developed 618 cases necessitating
notification being made to the master of defects found in the radio
installation. In addition 1,595 ship stations were inspected for
license; semiannual and special inspections of broadcast stations,
62 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
1,205; land stations other than broadcasting, 833; amateur stations,
194; aircraft stations, 134. As a result of inspections of stations
other than ships, there were served 747 discrepancy notices.
MISCELLANEOU:S ITEMS
Mail handled, incoming, 157,497; outgoing, 140,612. Trips made,
277; miles traveled, 200,989.
FIELD ACTIVITIES
Following is a statement, by districts, of the work performed
during the past fiscal year:
Stations inspected Frequency measurements
0.
United United States
·S
States other than Foreign
~
•
broadcast broadcast
District no. and location
..
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•
~.
a fj fj
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•
a a
~
~
S
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.,
1
~
~
~
~
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••
0; 0;
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~~
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~
>
:a :a
;l ;l
•
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•
00 00 00
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.., ..,
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--- --- - --- -----
-
1. Boston, Mass____ •_______
37' 27'
146 42 85
,
0 1,722 18 887 107 65
l'2. New York, N. Y ________
2,999 311 263 33 76 10 0 0 0 0 0 0 0
3. Philadelphia, PfL _______
142 348 137 1. 48 20 0 0 0 0 0 0 0
4. Baltimore. Md__________
322 343 166
,
I,
21 0 2,488 31 866 111 14
,
.'i. Norfolk, Va _____________
144 203 112
,
38 3 0 0 0 0 0 0 0
6. Atianta,Os_____________
0 0 0 76 77 3 5 1,202 22 600 .0 6 3
7. Miami, Fla______________
106 38 5 33 19 12 1 0 0 0 0 0 0
tl. New Orleans, La. _______
342 165 107 24 60 21 0 0 0 0 0 0 0
9. Galveston, Tex__________
26 187 92 20
I,
1 6 0 0 0 0 0 0
10. Dallas, TCL_____________
0 0 0 40 82 2 8 0 0 0 0 0 0
n. Los Angeles, ealiL. _____
692 483 184 57 70 34 1. 1,411 31 1,169 308 134 122
12. San Francisco, Calif- _.___ 519 427 217 77
'1
6
,
0 0 0 0 0 0
13. Portland,Oreg__________
106 179 44 21 40
l'
7 1,027 30 3,'1:15
21' 26 1.
14. Seattle, Wash ___________
402 n6 107 60 36 2 8 0 0 0 0 0 0
15. Denver, Colo____________
0 0 0 10 40 0 7 0 0 0 0 0 0
16. St. Paul, Minn__________
0 0 0 29 62 0 6 0 0 0 0 0 0
17. Kansas City, Mo________
0 8 0 41 94
•
26 0 0 0 0 0 0
18. Chicago,IlL____________
16 1 I 33 87 3 18 0 0 0 0 0 0
19. Detroit, Mich___________
64 35 12 128 103 31 19 0 0 0 0 0 0
20. Buffalo, N. Y ____________
22 12 8 36 81 1 0 0 0 0 0 0 0
21. Honolulu, Hawaii 1______
100 13
•
41 2 0
•
0 0 0 0 0 0
Grand Island, Nebr_____
0 0 0 0 0 0 0 3,378 ISO 16,937 1,790 427 23
Great Lakes, Ill. ___
---- 0
0 0 0 0 0 0 2,440 43 4,108 166 56 25
------- --- - --
- --
--- -
TotaL ______ •___~______
6,376 3,233 1,595 833 1,205 194 134 13,668 356 27,877 2,766 720 207
1 Office opened Feb. 15, 1935.
District no. and location
REPOIn OF THE FEDERAL COMMUNICATIONS COMMISSION 63
OPERATORS EXAMINED
Commercial Amateur
• • •
~•
~
"
..
]~
..
..
"
District DO. and JorotiOD
~
-~
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•
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00
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"----------
--
-~
----
~:~~~°{7o:r:.~~-y-.-~:=:::::======:==
0 10 70 7 158 8 534
sa 241 81.
1 33 110 22 132 31 '01 50 451
1,112
••
Philadelphia, Pa___________________
0
,
26 6 .3 2 201
12 152 5<l8
4. Baltimore, Md____________________
0 10 1. 17 .7 5 66 32 53
135
5. Norfolk, VtI____ • __________ ••_______
0 3
,
2 30 10 89 11
"
100
6. Atlanta, Ga.••.____________________
0 3 8 7 '9 8 141 1
"
130
7. MiamI,Fll~________________________
0 18 38
,
30 11 59 11
"
28
8. New Orleans, La_______ ••_________
0 21 66
,
6. 0 42
"
56 0
••
G81veston, Tex. ___________________
0
,
16 11 26 3 33 18 22
108
10. Dallas, TelL_______________________
0 3 45 11
"
17 96 8 93 898
11. Los Angeles, OatiL. _______________
0 18 81 I2 135 26 299 24
283
".
12. San Francisco, CaUL ______________ 1
23 88
•
53 39 117 29 12.5 'M
~::§~:;:re~%r~r::~=_~=========:========
0 14 36 3 36
,
32 1M 76 141
0 24 74 20 65 10 226
16 148 193
15. Denver, Colo_________ 0 0 23 1 67 21 16 0 86
11.
16. St. Paul, Minn__~_____ ============
0 0 6 1 36 10 67
3 113 221
17.Kansa.~City, Mo__________________
0 0 26 3 148
l'
184 167 247
""
18. ChicagO, IlL______________________
0 14 111 16 228 30 '02
6 328 1,061
19. Detroit, Mich_____________________
0 1 68 12 128 36 247
13 366 1,340
20. Buffalo, N. Y ______________________
0 1 92 11 108 18 84 7 158
873
21. Honolulu, HawaiL ____ •___________ 0 1 3 1 1 0 1 1 14 22
----
--
--
----
------
--
TotaL_____________~~.____ ------
2 206 1.000 180 1,676 308 3,329 68'
3,169 9,662
OPERATORS LICENSED
Commercial
~~~~~~'"
4l~"iil'~~"':::4l .... 4l .... 4l....~....~....~....
..... _ ... _... ....Q...,l=l ... 1:l ...,Q"'Q ... Q
....8iSS'!;l~",""'a "gs t:8 .... aiSS'E8 '!;l
.~5J$?:!l!'::1 .g,.a?l8~:a~,q~",$?:"':a~l:l '0
.0:::: .......~c:~-~.......~A<d~:;s~...,~11 .8~
A .g t.g ,g~.'"-s,g,q,g~,g_~~~'I:;l""'I:;l..<:l'l:;l q:; <U '=
....~~~-S&-Sg:'~g:;::g:;::g~:;::§-SaL~§", § ",
~~ll~·~",·itl!:l'0'I:;ll!:l~;:gll;:g118'~~~8_1l..§~]
"'
~'E til] E] tj,g §.li8~~~1a«~₯~~~~~,,-.",,~
.... .;;-::A;-:,Q,;.~Q,~_ as ............ - QJ -
---------I--/----/---I.--I---I-"'-/-- w w~~~~__
I. Boston, Mass___________ 0 33 13 1 0 46 13 1 0 4 0 1 0 10l 4 486
2. New York, N. Y •• __ 1 49 28 2 0 62 15 2 0 10 4 I 2 97 24 3&i
3. Philadelphia, Pa .____ 0 10 5 0 0 12 0 0 2 1 0 0 1 24 2 136
i. Baltimore, Md_. • 1 14 15 2 1 11 6 1 0 7 0 0 3 24 6 24
5. Norfolk, Ve.._._ ••~••_ 0 9 4 1 0 2 3 0 0 0 1 0 1 15 6 78
6. Atlanta, Ga •• 0 1 2 0 0 3 3 0 0 4 0 0 0 36 2 117
7. Miami, Fls. •• 1 15 1 0 0 12 4 0 11 1 0 0 0 20 6 46
8. New Orleans, La ._ 0 24 9 1 1 41 16 1 0 5 0 0 7 48 0 31
9. Galveston, Tex.~._0 5 3 0 0 11 3 0 0 5 0 1 2 22 3 30
10. Dallas, TelL .____ 0 4 0 0 0 28 4 2 1 3 0 1 0 64 20 86
11. Los Angeles, CaliL____ 0 'l:l 13 0 0 47 35 1 0 3 1 0 1 102 21 293
12. San Francisco, CaliL___ 1 31 18 0 0 54 6 0 0 6 0 0 0 36 45 111
13. Portland, Oreg •• 0 9 3 0 1 15 9 0 1 0 0 0 0 35 9 29
14. Seattle, Wash .___ 0 12 9 1 0 62 5 2 0 8 3 2 1 35 7 220
15. Denver! Col.o~• a a a t) 0 5 S 1 a 1 () () () JS 19 18
16. St. PaUl, Mmn__ • ._ 0 2 1 0 0 5 1 0 0 1 0 0 0 Zl 8 45
17. Kansas City, Mo ••• 0 0 0 1 0 7 3 0 0 1 1 0 1 75 12 186
18. Chicago, IlL .____ 0 6 9 0 0 62 26 1 0 7 4 0 0 101 16 334
19. Detroit, Mich •• • 0 4 6 0 0 31 9 3 0 I) 0 1 1 86 16 209
20. Buffalo, N. Y 0 1 5 0 0 25 15 1 0 4 1 1 0 65 16 75
21. HonolulU, HawaiL ._ 0 4 0 0 0 3 1 0 0 1 0 0 0 0 0 1
TotaL •~4260144 -.-1-3- 54.4 1M 16IS77158 20 1, 041 242 2, 939
28008-35--5
64 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
COMPLAINTS AND INVESTIGATIONS
Compla1nts Amawur
Unli·
censed
broad 
cast
Unli 
censed
other
Miscel 
laneous
Total
----------1----------
Carried over from previous year____________________
199 3 8 40
""
Received this year__________________________________
2,730 68 375 I, <rJ4 4,195
Closed this year______________ .•_. ____ . _____ •_______
2,470 .. 315 1,200 4,041
Number of those cases closed requiring personal In-
vestigatlon________________________________________
301 27 109 300 737
On band at close or this fiscal year_______• __________
2<10 10 60 87 417
REPORT OF ACCOUNTING, STATISTICAL, AND TARIFF
DEPARTMENT
'VILLIAM J. NORFLEET, Ohief Accountant
The Accounting, Statistical, and Tariff Department was estab 
lished in October 1934 but did not have an appreciable number of
employees until March 1935. At the end of the fiscal year the
department was still in need of a considerable number of additional
employees.
FUNCTIONS
The functions of the department have to do with three related
fields of activity-namely (1) accounts, (2) statistics, and (3) tariffs.
In general, the department assists the Commission in the adminis 
tration of sections 203, 213, 215, 219, and 220 and, to a lesser extent,
sections 204, 211, 214, and 221, of the Communications Act of 1934,
hereinafter called the act, and in the administration of various
other sections as directed by the Commission.
ORGANIZATION
The department is divided into five sections, 1 relating to statis 
tical activities, 1 relating to tariff and rate activities, and 3 relating
directly to accounting activities. These five sections are dbSignated
as follows:
Classification Section.
Depreciation and Cost Analysis Section.
Investigation and Field Examination Section.
Statistical Section.
Tariff Section.
There follows a brief description of the functions of each of the
five sections of the department and a resume of their accomplish 
ments during the fiscal year ending June 30, 1935. In reviewing the
activities of each of these sections, however, it should be kept in mind
that they were sparsely supplied with personnel prior to the close
of the fiscal year as hereinbefore indicated. Notwithstanding this
fact, much important work was accomplished during the few closing
months of the year.
CLASSIFICATION SECTION
FUNCTIONS
The department, through this section, formulates and recommends,
for prescription by the Commission, uniform accounting systems
for various classes of communication companies, and revisions and
65
66 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
modifications of such systems from time to time; maintains, through
correspondence, an information service for the purpose ofinterpret~
ing accounting regulations and directing the manner of recording
unusual transactions and passing upon the accounting for certain
other transactions or adjustments required to be submitted by the
carriers to the COlluuission; formulates and recommends, for pre 
scription by the Commission, rules governing the destruction of car 
riers' records, forms of andaccountin~for franks, work-order
systems, records of property changes, and related matters; considers
the propriety of all exceptions taken by field investigators to
accounting performed by carriers; and pedorms other duties as
assigned.
RESUME OF ACTIVITIES
While there was a recognized need for a thorough revision of uni·
form accounting systems for (1) telephone companies and (2) tele 
graph and cable companies, trausmitting by wire; and for the
formulation and promulgation, for the first time, of an appropriate
uniforlll systenl of accounts for radiotelegraph communicationserv~
ice, it became necessary, during the fiscal year ending June 30, 1935,
to confine the activities of the Classification Section principally to a
revision of the uniform system of accounts for telephone companies.
This revision was confined to Interstate Commerce Commission
Docket No. 25705, Accounting Rules of Telephone Companies, which
was continued as Federal Communications Commission Docket No.
2551. This proceeding involved consideration of numerous recom 
mendations made by State commissions and other interested parties.
As a result of deliberations in the above proceeding, the Tele 
phone Division, on June 19, 1935, issued a revised uniform system
of accounts for telephone companies which was ordered to become
effective on January 1, 1936.
The Classification Section, during the fiscal year, also engaged in
various other activities, including the following:
1. Abstracting of pertinent datarelatin~to communication com 
panies from the topical indices of accountmg interpretations main 
tained by the Interstate Commerce Commission.
2. Drafting (in conjunction with the Engineering Department)
of proposed rules governing work-order systems and perpetual
records of property changes.
3. Study of proposed changes in the classification of telephone
companies for the purpose of accounting regulations.
4. Study of most desirable accounting for telegraph services per 
formed by telephone companies.
5. Study of the regulations, promulgated forms, vrocedures, etc., of
the Securities and Exchange Commission' as auxihary guides to the
advisability of changing the regulations and terminology relating to
the accounting for financial transactions of communication companies.
6. Handling of notifications relative to the accidental destruction
of records of communication companies and consideration ofchan~es
in existing regulations governing the destruction of records (WhiCh
regulations became effective on Jan. 1, 1920) to meet present-day
conditions in the industry and to promote cooperation between the
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 67
regulatory activities of this Commission and the activities of certain
other~overnmentalagencies.
7. Consideration and recommendations relative to certain applica 
tions by communication companies for permission to construct new
lines or to supplement existing facilities; and the formulation of
recommendations to the Telegraph and Telephone Divisions with
reference to suitable requirements to be laid down in the case of such
applications.
DEPRECIATION AND COST ANALYSIS SECTION
FUNCTIONS
D.ElP'REOIATION
The Department, through the Depreciation and Cost Analysis Sec 
tion, advises the Commissiou with reference to the prescription of
classes of depreciable property, the methods of determining deprecia 
tion bases, and the rates applicable thereto; conducts necessary field
examinations in connection with depreciation studies; prepares stati£...
tical tables in such form as to make depreciation accounting of the
various communication companies readily comparable; and makes
recommendations, from time to time, with reference to proper
depreciation accounting.
COST ANALYSIS
The Department, through this section, also makes cost analyses
relating to various communication services and operations and with
reference to plant properties; makes investigations relative to the
feasibility of cost-accounting systems for communication companies
and makes recommendations with reference thereto; and performs
various other duties as assigned.
RESUME OF ACTIVITIES
Since depreciation studies in most instances have not been exhaus 
tively pursued by governmental bodies, and since the communication
industries have never been called upon to justify their determinations
of depreciation, it was considered necessary to first assemble factual
information relative to depreciation experiences and practices of
communication companies. The early work of this section, therefore,
was and is a survey of the practices of various classes of communica 
tion companies in regard to depreciation and the problems involved
in the regulation of these practices.
A brief mention of some of the subjects of this investigation in its
initial stage and of certain related activities follows:
1. Study of the relationship of depreciation reserves of many large
telephone and telegraph companies to plant, capital, and other ac 
counts, and the relationship of annual depreciation charges to revenue
and related accounts.
2. Field examinations at the offices of two large telephone com 
panies for the pUl')Jose of determining the retirement history of those
carriers, the suffiCIency of reserves created through annual deprecia-
68 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
tion charges, and the experience of those companies in toll service as
compared with their experience in exchange service.
3, Examination of the records of a large company engaged in
radIOtelegraph service in order to determine the experience of this
carrier as distinguished from wire-communication companies.
This examination, which is not yet completed, is important because
this company represents a comparatively new industry which has
received only limited study with reference to depreciation practices.
4. Geographical analysis of exchange rates of telephone companies
and study of possible relationships to depreciation practices of com 
panies involved.
Various other activities were engaged in by this section, such, for
instance, as traffic-density studies at certain offices of Western Union
Telegraph Co. and Postal Telegraph-Cable Co., which were per 
formed at the request of the Telegraph Division.
INVESTIGATION AND FIELD EXAMINATION SECTION
FUNCTIONS
The Department, through this section, conducts regular and spe 
eial field examinatIOns of the accounts, records, and memoranda of
communication companies subject to the act; considers, investigates,.
and makes recommendations (in conjunction with the classification
section and the engineering department) relative to applications of
communication companies for permission to make extensions of lines
or to supplement existing facilities; classifies telephone properties as
between intrastate and interstate service; and performs various other
functions as assigned. The usual objects of the regular field exam 
inations are to see that accounting regulations are being complied
with and that records are being preserved as required, to detect defi 
ciencies in existing- regulations, to check additIOns to plant-invest 
ment accounts for overstatem,ent of amounts, to pass upon distribu 
tions of large repair items to investment and expense accounts, and
to secure other necessary information needed regularly in adminis 
tration of the. act. Special field examinations and investigations
may be made from time to time, as required by the CommissIOn, to
secure other information deemed necessary by the Commission in the
regulation of communication companies.
RESUME OF ACTIVITIES
Several important field examinations were being conducted by this
Section at the close of the fiscal year. These examinations included
a cost audit of a large manufacturing plant to determine the actual
costs of certain telephone-plant units involved in new construction
of telephone toll-exchange cable. Two other important field exami 
nations which were in process at the end of the fiscal year involved
analyses of the accounts of (1) an important radiotelegraph com 
pany, and (2) a large telegraph company engaged in wire-communi 
cation serVIce. These examinations were for the purpose (among
other things) of securing information deemed necessary (1) in the
formulation, for the first time, of a uniform system of accounts for
radiotelegraph carriers; and (2) in a necessary revision of the exist-
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 69
ing uniform system of accounts for telegraph companies which was
prescribed for companies engaged in wire communication and which
hecome effective on January 1, 1914.
STATISTICAL SECTION
FUNCTIONS
The Department, through this Section, conducts special studies
into economic problems affecting communication companies; formu 
lates and recommends, for prescription by the Commission, appro 
priate forms and schedules for annual, monthly, and special reports
of communication companies; examines the general halance sheets
and income and surplus statements contained in the annual reports
of these carriers to the Commission; rrepares monthly summaries
·of the operating returns of communicatlOn companies, which reports
are distributed generally throughout the country to interested
parties; compiles, and prepares for publication, various statistical
data relative to communication companies, including a comprehen 
sive annual compilation of financial and operating data relating to
companies subject to the act; prepares and recommends, for pre 
scrirtion by the Commission, special report forms for holding com 
pames which control communication companies subject to the act;
..,om'piles statistical information with reference to such holding com 
panles; develops, through economic and statistical research, infor 
mation for the use of the Commission in rate and other proceedings;
and performs various other duties as assigned.
RESUME OF ACTIVITIES
All communication companies subject to the act, except telephone
=mpanies whose operating revenues are $50,000 per year or less, are
required to file annual reports on prescribed forms. Pursuant to this
requirement, 286 telephone companies filed annual reports for the
..,alendar year 1933, of which 187 were class A companies and' 99 were
class B companies. For the calendar year 1934, 217 telephone
companies filed annual reports, of which 145 were class A companies
and 72 were class B companies. Annual reports of 15 telegraph and
cable companies and 22 radiotelegraph companies were also filed
during the fiscal year.
Telephone companies whose operating revenues exceed $250,000 per
year are also required to file monthly reports of their operatmg
results, in addition to the annual reports above mentioned. Hereto 
fore 103 such companies filed monthly reports with the Interstate
Commerce Commission. During the fiscal year ending June 301 1935,
only 60 such companies filed monthly reports with this CommIssion,
and 43 claimed exemption under section 2 (b) (2) of the act. The
companies that are now filing monthly reports, however, represent the
bulk of the telephone business of the country.
The Statistical Section also conducted studies and made recommen 
dations relative to appropriate forms of annual reports of holding
companies to be prescribed by the Commission.
Studies were also in progress at the end of the fiscal year looking
toward the adoption of a plan to secure, on a monthly basis, statistics
70 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
concerning employees of carriers engaged in communications. This
plan was being developed in collaboration with other ,departments of
the Government interested in employment statistics.
Compilations of statistical data were furnished, upon reqnest, dur 
ing the fiscal year, to other agencies of the Federal Government, uni 
versities, banking institutions, insurance companies, State commis 
sions, labor organizations, and other groups engaged in economic
research.
There are submitted herewith, as appendix A, certain tables num 
bered I to XII, inclusive, and certain charts numbered 1 to 6, inclu 
sive, pertaining to communication companies.
TARIFF SECTION
FUNCTIONS
The Department, through the Tariff Section, receives and examines
all tariffs and tariff supplements filed with the Commission; formu 
lates and recommends, for prescription by the Commission, regula 
tions governing the form and manner of filing tariffs and traffic con 
tracts; examines the provisions of traffic contracts in their relation
to tariff provisions; conducts broad general surveys of rate struc 
tures, paying particular attention to classes of service and relation 
ships between the various rates, in order to detect discriminations and
to make recommendations for rate adjustments deemed to be in the
public interest and to be productive of wider utilization of com 
munication services; prepares press releases with reference to rate
changes or changes in rules, regulations, classes of service, or condi 
tions under which services are rendered; makes recommendations to
the Commission with reference to rate changes proposed by communi 
cation companies, particulady on the question as to whether such
proposed rate changes should be suspended by the Commission for
inquiry as to their lawfulness; passes upon and makes recommenda 
tions relative to applications by communication companies for special
authority to make rate changes effective on less than the usual notice
to the public; in the event of rate hearings or suspension proceedings,
prepares exhibits and other data for use by the Commission; prepares
rate and traffic information for the Commission and other employees
and departments of the Commission, and, under proper circum 
stances, for other departments and officials of the Government; and
maintams a public reference room where all tariffs are made con 
veniently available to members of the public who seek rate or traffic
information.
RESUME OF ACTIVITIES
Tariff schedules were filed by 105 communication companies during
the fiscal year. These schedules comprised 4,829 separate tariff publi 
cations. Of these publications, 3,558 were filed by telephone com 
panies and 1,271 by telegraph companies. Carriers made 150 applica 
tions. for special authority to effect changes in their rates, regulations,
claSSIfications, or practices on less than 30 days' notice. Authority
to make such changes was granted in 134 instances and was denied in
15 instances. In one instance the application for such authority was
withdrawn.
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 71
In 10 instances tariff schedules tendered forfilin~by communica 
tion companies were rejected because of failure to gIve lawful notice
of their effective date.
A reduction in telephone rates between the hours of 'I and 8: 30
p. ill., in a section of the country comprising several States, was
brought about through the Commission suspending certain schedules
containing proposed rate changes. The suspension proceeding did
not result in a hearing because voluntary revisions of the tariff sched 
ules were made by the communication companies involved, following
the suspension order by the Commission.
Numerous exhibits and rate memoranda were prepared at the re 
quest of the Telephone and Telegraph Divisions of the Commission,
including rate and traffic exhibits which were introduced in evidence
in the formal hearing on telegraph services held pursuant to Tele 
graph Division Order No. 12 and similar data which were used in
draftin~Telegraph Division Order No. 15.
ConsIderable attention was given to the task of formulating, for
the first time by a Federal agency, suitable rules and regulations
governing the construction, filing, and posting of tariffs by com 
munication companies. A tariff circular contaIning such rules and
regulations was being put in final form at the close of the fiscal year.
Rate information was supplied on a number of occasions to other
departments or employees of the Commission, to other governmental
departments, including State commissions, and, to a limited extent,
to members of the public. The publio reference room was visited
frequently by members of the public for the purpose of inspecting or
.,xamining the tariffs on file.
[ page 72 in the original document is intentionally blank]
APPENDIX A
STATISTICAL DATA CONCERNING CARRIERS ENGAGED IN WIRE OR
RADIO COMMUNICATIONS
The following tables and charts are assembled into two major groups. The
first group relates to aunual reports for the calendar year 1934, Rnd the second
group refers to monthly reports received by the Federal Communications Com 
mission.
ANNUAL REPORTS
The data included in table 1 cover reports received from 145 class A tele 
phone carriers (including 2 period reports filed by a reorganized company) and
72 reports from class B telephone carriers. Selected financial and operating
data for 15 telegraph fllld cable earrlers are shown in table 2 and for 17 radio 
telegraph carriers in table 3. In addition, five reports were filed by radio car 
riers, but as the returns were incomplete they could not be used for tabulation
purposes. These five reports were received from the Aeronautical Radio, Inc.;
City of Seattle, Harbor Department; Gulf Radio Service (George CoIlins
Warner, Jr.); Mnyor and City Council of Baltimore, Md.; and Pacific
Communication Co.
TABLE I.-Telephone carriers reporting to the Federal Oommunica,tions
Oommission
[Selected financial and operating data for the calendar year 1934]
Item Class A carriers
CIsssB
carriers
Total
$22, 187,678 $4,573,327,111
22,405,645 2,671,127,414
846,269 53,190,453
897,508 56,351,718
3,778,4!H 431, 123, 325
17,872,784 4,349, 198, 084
11,195,216 1,047,538,977
1,579,723 93,786,379
5,419,804 1,028,839,518
2,685,720 462,975,490
4,135,808 964,512,017
3,204,935 679,694,810
254,379 70,926,160
94,639 23,266,260
349,018 94,182,420
574,313 190,519,534
323,463 259, 539, 661
390,758 310,417,580
30,092 636,860
129,228 78,456,630
119,246 4,962, 982
248,474 83,419,612
184 127,432
395 6,197
84 3,010
6
45
21 1,183
506 10,435
135,014 14,853,498
12, 135 344,917
'"
97,437
147,176 15,295,862
17,010,444 2, 134, 691, 194
567,308 65,085,312
141,304 14,962,228
2,301 '%17, 921
$1,870,017 $393, 717, 777
Investment in telephone plant-~_•••••__ •~~_____$4,551,139,433
OtherInvestments~~••_.~._~._.__~_.• •__ •~2,648,721,769
Casb • ••~~~._ ••_..~_52,344,184
Material and supplies •~~__~••~.~__55,454,210
Total current assets ••~••~~~_~____427,344,831
Capital stock __ • ._._.~•••._._~._~_____4,331,325,300
Funded debt~._.~._~.~_1,036,343,761
Total current lIabilitles•••~.~~_••~.~••• 92,206,656
Depreciationreserve_~•~~~~._~• 1,023,420,212
'rotal surplus__~•__.~~~._ •• • ••• 460,289,770
Operating revenues •••~~••_~.~~___960,376, 2Q9
Operating expenses_•• _••~__~~_~~__~~_••~~~.~_.___ 67G, 489, 876
OperatIng taxes:
Other than U. B. Governmenttaxes~~~•• ••••• 70,671,781
U. S. GOvernment taxes ••••__.~._.~••~~_____ 23,161,621
TotaL •••~••_~__.~__ •_•••_._~.~_. 93, 833, 402
Net operating Income ._••_. •••~_._~189,945,221
Net income•••• ••••~_.••~._~•• _.__ 259,216,188
Dividends declared_~~••~_~__~•••~._____310,026,822
Plant mileage In service:
Miles of poleline ••_._~•• •••~_•••~_.._ •••="",~606~.7f.6~8,1
Miles of wire incable~_~.~~.~••••~•• ••••• 78,327,402
Miles oC aerialwire·_~··~··~·_~··~•__·~·I--~.~84~R~7~36;;;_I--~~;:;_i-___o,;:..:""~
Total miles orwire~-~··----~---··-·~··----·~·-·-·---I:::::83=·tI7~lt·I~3~8_1:::::==~:I:::::=jj~~
UndergrQund conduit-miles oC single duct.-----••~.--l127,248
Central offiCflS-Type of switchbO&l'd:
M~neto-manuaL._~•••~~•••~_._.~• ••_ 5, 802
Common battery-manual ••~••~•__••••~._~~••_._~..2,926
Auto-milnuaL. ._•• •••~~•~__~_~••~_. 39
D~~~I~~o_~.~~~~.s·~:~~~~~:::::::::::::~~~::::::::::::1;:=;;l:~:~~~~2:1:=:;;~:1~=:;:;:;j~~
Total company telephones_~._•••~_.~~._~•••••~._~~__14,718,481
8ervlce telepbon6S •~_~.~•• __ • • • 332,782
Private-line telephones and other statlons••._~_._••_I--~~9~7~.4~I~O_1
Total telephones._.---.__~-._••-._--~-------------.-I=e;;='f~15~,₯.14~~~6~7;;-6
Avernge number ot local callsori~inatedper montb••~••••_ 2, 117, 680, 750
Average number of toll calls orIginated per montb__ •• 64,518,004
Average number oftelephones~••~•••• .____ 14,820,924
Total number of employees In service at clQSe oC year._•••_ 275,620
Total compensation__ •••~._._••~~~._~_~••••••_.. $391,847,760
73
TABLE H.-Telegraph and cable ·camers reporting to the Federal Communications Commission
{Selected :llnancJal and operating data for the calendar year 1934]
Tax
accruals
Operating
expenses
Operating
revenues
Material and Total work. Capital stock
supplies ing assets
C",b
Total CQrpo·
rate surplus
$107,178,422 $ll9, 053, 078 $102,802,369 $4,354,451
2, ISS, 338 4,409,109 3,473,310 274,168
(') 3,364 Hi,528 (')
13,716 983 '23 110
4,625 14,528 8,760 1,229
6,212,444 4,424,021 3,502,066 68,041
865,465 1,255,908 741,743 93,135
-----7444:235-
14,616 34,389 1,760
8319,840 B301,875 ! 17,583
(') _._-----------
-··-----i~6M-
324
; .1\9,969
---21,-Oi6.-334-
500
;6,"6f,S06 20,227,601 490.000
308,307 302, ll3 249,545 3,300
; 5,860 3,528 3,324 240
123,329 58,506 43,596 2,661
103,536,098 87,230,228 74,185,465 3,401,600
Accrued de 
preciation
Other invest 
ments
$501,753,560 $55,057,183 $17,312,000 $9,843,498 $64, 020, 428 $166,398,823
32,572,731 3,230,824 2, 668,478 324,477 5, 151, 166 2:7,037,100
(') (') (') (') (') (.)
104, 517 ..._---_.----- -
------33~6i7-
----------284-
9,199 100,000
38,710
-'-30;043;654-
35,378 56,300
31,422,138 585,092 458, 161 HI, 514, 716 25,000,000
22,971,723 -------_..-.-. 1,792,741 175,078 7,000,815 6,000,000
299
'---1;600;993- ."----38;327-
._------------
1,773 5,000
233,381 246,167 865,560 'ro9,430
(') (') (0) (') (') (0)
25,702
------942:651- ----i;772;83&-------967~850-
1,009 '1
82,247,420 5,563,2138
-----2;685;600
3,127,585 3,832 206,140 12,015 693,083
9,378
-------_.-.... 57.
--------5;277-
9,667. 15,000
336.315
---19;229;229'
45,813 83,:ro3 262,600
328,663,661 10,168,380 7,654,189 28,090,691 1M, fm,892
Investment
in plant and
equipment
I Unmatured Total work·
funded debt ing liabilities
Name Of carrier
TotaL__ ._.__ •_. __~~~.,_._ ••_._~•__ --.~__ •--_-.--__ 1...:.$1.::".::,_",,---,-,000---,-_ !_=$3.::'=,1::74=,::10::'+$.::1.::06=,03,:::-',::08::':-I-==::'c::::-I--==:'=::':::::-I---'-=-=:::::-I--'-:'=:-'---:::
.All America Cables, Inc.l ._._.~_•••~••• .___ _ ___ 474,937 10,421,748
Canadlall PaCIfic Ry. Co. (lines III United States)~_•• • __ • • • (2)(~)(2)
~fo~~;d~wioe=T?fe~i:~~~~~~~~==::::::::::::::::::::::::::::::::::::::::::::::::: -----·--2,-662- ------·io,-soi·
~i~!₯m!i~~yi~~~;;~:~:~~~~~~~~~:~:~~~:~~~~~~~~:~~:~:~~~~~~~~~~~~~~~:::~~~:~:::~~~!~:~i:~_
Great North Western Telegraph Co. of Canada '. •••••__ ._. •__ •• (6) (5)-~----(5)"-----
Interstate Telephone & Telegraph Co. '_ ••~~__ .. •._._~._.So. 000 25,009 6,345
Mackay Companies (The) (Postal Telegraph-Cable Co.). • •~__~._••••_ 19,173,943 20,628,747
Mexican Telegraph Co~~•~•~__ •• ._'_,'~_...__ 50,943 116,910
Mountain Telegraph Co.~••~__~••_. ._••_~_. • __ ••~.527 9,378
Northern Telegraph Co. _•._~••__~~_~~._.~~• __ •• • .__ &. 383 29,52:7
Western Union Telegraph Co~__ • •~•••_.___________________ 106,514, 000 11,252, 5llS 31,656,617
Nama of carrier
Total_••••• ._. __ ••••_. ._••••••••••• •._._~•••••••
AU America Cables, Inc.1. •••••_._. ••• • ._._••••• _
Canadian Pacific Ry. Co. (lines in UnitedStates)_._~•••• ._••__ • •••~
Oentral. Idaho Telegraph & Telephone 00__ ._. • ._••• ._._••• _
Colorado & Wyoming Telegraph Co ._._•• •• •••••• • _
Commercial Cable Co • _. _••• ._.'••'.__ • ._._. _•••• ••• _
Commercial Pacific Cable Co ._._••_.~•••••_~• •__ •••••_. • _
Continental Telegraph Co. _.~• ••• •__ • •__
French Telegraph Cable Co.' •__.~._.• • • ._.__ •• • __
Great North Western Telegraph Co. of Canada 4 J •~.._~_
Interstate Telephone & TelegraphCo.~••_~• •• ._. • ••••~_
Mackay Companies (The) (Postal Telegraph-Cable Co.)••• ._. ••_. •__
Mexican Telegraph 00 ••_. _. • _••_••~• •_•• • _._. _
Mountain Telegraph Co • • • ••~__~•••••~_~._•••• _
Northern Telegraph Co._._._._~~.._••~._•••_••_•• ._. _
Western Union Telegraph Co__ •••• • • __ ._•• • ••_._~_~• ••• _
Dividends declared Employees
t FigUres include data for the Cuban All America Cables, Inc.
t Nodatareported as these lines are an inteKral part of the Canadian Pacific Railway System, and separate capital accounts are not kept.
t The comparativegeneral balance sheet of this carrier has been rearranged to conform with the Uniform System of Accounts, and the data reported in francs have been converted
into dollars at the average exchange rate for theyear 19340f $0.065688.
4 Lessor company.
i No datareported as these lines arean integral part olthe Canadian National Telegraph Co., and separate capital accounts are not kept.
$ Represents book liability for 1.000 shares of common stock without par value.
1Represents $54,993 re.J>Ofted as "Reserve for oontlngencies fund, interest on bonds, and bonds payable", and $389,242 reported as "Reserve required by law."
8 Figures cover operations of New York City office.
• Deficit or other reverse item.
Ie Estimated on basis of the number of messages transmitted durlni;t the month of January.
U No compensation reported; employees are carried on the pay roll of the Pacific & Idaho Northern Ry. Co.
n Includes 14 employees who receive no compensation from respondent.
u Represents 9 percent on $6,000,000 of capitalst.ock outstanding, and 5 percent on $4,000,000 of capital stock retired during the year.
If Includes 10 employees who receive no compensation from respondent.
15 Includes 6 employees who receive no compensation from respondent.
IC Includes 5 employees who receive no compensation from respondent.
Total com 
pensation
for year
160,700,029 68, 621 $73, 129, 228
1,896,966
1,~
1,813,3.52
15,115 7,908
1G 1, 380 10 (ll)
10 14,832
"23 7,242
2,722,647 1,595 2, 156,300
338,156 291 401,450
10
155,532 1437 7,472
~207,936
.,.
159,379
Revenue
m""",,,
transmitted Number on
June 30
Rate per.
om'
$1,796,498 ._._••_.
540,742 2.00
Amount
::::::::=:::=: ::::::::::::-i~-32,-SI2~704-----·--15;276- ----i3;41s:i4i
________________________ ._1~284,10016102 140,108
_. .__ 6,253 1$9 3,000
15, 756 6.00 10 146, 808 51 33, 000
__ "_. • 10 122,097,600 49,457 54,981,876
$1,057,874
707,028
(')
"'"
1,6OS
~67,555
653,924
Net income
---·-8-9-0;088" :::::::::::::: ::::::::::::
17,546 • • ••_••__ • • •• • ._._•••_. __ ._
i 4-,£78
12,521,381
22,597
'779
14,816
2,243,084
Operating
income
$11, 024, 120
601,631
(')
"'"
~53'
829,914
415,030
9fl, 648
so 5, 618
~5£4 
~2, 14-4
108,733
48.868
'"
12,076
9,032,650 I
Narne of carrier
TotaL ••••••••••_._._. ._••••••••••••_•••_. ._ ••••••
I--'---'-----'--:-I--'-----'--:-I--'-:c:--::-c:-·I--~I--'------'-----".,-I-----'--I·--'-------'--
All America Cables, Ine.l . .._. __ oM __••••__ ••~•• ••• ._._•• _. __
Canadian Pacific Ry. Co. Uines in United States)_ •• • • ._••••__
Central Idaho Telegraph & Telephone Co__ • ._._._••_. ••••_.
Colorado & Wyoming-Telegraph Co••• ._ ••••_._. ••• _._. _
CommerciaJ Cable Co_ ••••_•••_. _. • • _._ ••••_. _. _. ._.'_••• _
Commercial Pacific Cable Co • _._. • ••_. ._. •• _. __
~~eTh~~~er8~~~~o:::::::::::::::::::::::::::::::::::::::::::::::::::
Great North Western Telegraph Co. of Canada 4 • ••••
InterstateTeleph~ne&Tele~aPhCo 4 •• _
~=~i:=:d~~eL~..~~~.~.e!~~~~~~~~_~:~~~!_-_-_~::~:::-_::::::::~~:~
~=:T~$~r~:~~6~:_:_::::::~:::::::::::::::::::::::::::::::::::::::::
TABLE III.-Radiotelegraph. carriers reporting to tM Federal Oommunications Oommission
[Selected financial and operating data for the calendar year 1934}
$3,789,000
Operating
income
Unmatured
funded
debt
---3~664;000
'_"'(~)'_-~-
CSpitaJ
stock
$7,318, 857
J2,ooo
'683,700
1, GOO
1,000,500
114,000
',000
7,000
25,000
5,000
'5,000,000
WO, GOO
(0)
10,000
10,000
G5,000
125,000
il 25, 657
Tax accruals
869
539,902
13,045
1,865
1.072
$6,626,287 $251,359 $185,599
6,588
29'
is,531
137,781 I, f9!) 9/], IN
46,652 3,734 967, trll
896,276 2J), GOO 945,£26
939,503 6,000 9189,374
S,753 118~I,SIJO
4,001
24'
1,24<l
2,271
····-···..-93-
q£8
8,633 ..__ ._.._.-.
3,557,051 183,631 426,3.55
382,403 25,045 105,813
9,452 158 81,208
5,555 105 9 7SB
551,245 8,452 9£1,754
58,393 2, 595 94,391
10,448 70 400
~3S2316 9~,426
$4-, ge2, 577
1,846
203,601
73,988
122,843
708,381
1,547
2,850
367
1,532
2,654.797
634,074
(')
Operating
expenses
$697, '13.5
$7,023,868
7,597
136,188
950
8il. 024
756,687
2,481
5,491
2,143
8,626
4,194,374
421,034
8,407
4.935
534.136
56,598
10,924
2,273
Material and Total work·
supplies iug assets
-'-'-'-'4~68r
0,lff3
24,.548
251,321
-----~-i7:536-
869
6,921
2,792
c"'"
$4,391,865
~8, 349
3tH,004
9583,054
9918,150
~1, 478, 50£
f 4, £S1
Q,S9£
q£D
587
6,851.484
944,527
(0)
G10, 2El
~814,081
30,144
1,800
96,.415
$1,356,994
1,467
658
8,383
45,884
15,169
834
11,919,999
1,137,646
(')
10,000
795, 212
$14,615,555
8,549
46,196
183,549
378,138
119,312
IO,071
2,116
$11, 781, 898
Accrued de· Total corpo- Operating
preciation rate surplus revenues
Other invest·
ments
"-·"331;373 
"'-i~740~i05'
~:~~===~~:==::-·--'---2,-525- -·'·-"'-'-55'
' .._..'_'__ ." 367 .... ._..__
903
1,166,040
104,944
(0)
"--9:69?:W)
"'_"(~)'_--_.
-·----·i2;560·
$14,018,840
$00,425, 724
12,181
933,662
197,820
3,2b2,824
2,926,756
12,475
5,865
3,482
6.756
19,547,835
1,l~5.907
10,000
1,695.258
22.165
2.1,000
27,738
Total work·
ing liabilities
Investment
In plant and
equipment
Name of carrier
Name of carrier
TotaL.__ ._. ••_.._••_~•__ . .•••__ .••_.~.._. .~__._._.
1----:--1--------,-1-------,-------,--1---1---'-'------1----'----'-----1--'-----'-
Central Radio Telegraph Co~.•..__ .•••._.••_.~.. .• . __ •. 3,901
Globe Wireless, Ltd. 1_•• ._.•_. __ .._. •••_. •..._._••__ '.__ .'__ 18,217
Hearst Radio, Inc .._._ .•_. ._•._.•__ . __ • . __ •__ .._~_._•..._.•.•_.._••__ .. 863,243
Mackay Radio & Telegraph Co., Inc. (Oalifornla)~__ ._•••_..__ • . __ ._. 2,853. fill}
Mackay Radio & Telegraph Co" Inc. (Delaware)_..~..__ ....__ • ••.. 6,672,834
Magnolia Radio Corporation••._~._._.._. . __ ._._•._. __ •.... •...__ . __ ..__ 3,231
r~f.~£~1g!it~f.i;';;~~~:-:~~:~::~~~~~~:~~~:~~::~~~~~~~~~~~:~~~~~::::1, ..::if,
Radiomarine Corporation of America..__ . __ • __ .•__ • .•• • •__ ._••••.. __ 108,954
South Porto Rico Sugar Co. (of Puerto Rico) . • . __•._. •.__ .••_._..__ (I)
~~~ic~St~:~~~~:~~f~~.~~~==::::==::::::===:::::=:::::=:==:=::~::=::::·--·i;006;474-
United States·Liberia Radio Corporation. ._•. . __ •__ ••_•.__ • __ .. ._.. 66
;~~~~~~6~~:.r:~ho~o~=~:::::==::=:~~::::::=:~==:::::=:::::::~~::::=~~=4,4~
Total. ._•• •• •__ • •. ._.•__ ._.__ • . __ ._. •••._._ ••
1-'--'-----'----1--'-----'-----1-----'-'-----'-----1--'-----'-----1--'-----'-----1----'----'-----1---'-'-----'-
g1~~~r~1~:l\~~~~-~~:-~~=========::=:===:::::====::=====:::====:::=====
Hearst Radio, Inc•.._••__ •__ ••__ . __ •• . _.~.__ • ..__ • •••_~..__ ••
Mackay Radio & Telegraph Co., Inc. (Oalifornia) ._.•.._. __ .._.•~..
Mackay Radio & Telegraph Co., rnc. (Delaware) ._._._.. ••__ • _
Magnolia Radio Corporation._.__ • __ .. • .•• . _. . __ . . _.•
Michigan Wireless Telegraph 00 •••__ ..••_._. ..__ .• . .•••
Olympic Radio Co_ ..__ ..•.. . __ •~.__ . __ ••__ .•• . __ ••__ . _.. • ._.
~~t.~~r3~~~u~~g~~~~~~:..t!~~::::~~~~~~~~~~:~::::~=::~::::~~====:::==::::
Radiomarine Corporation of America__ ••~_.._.•_•• .._. __ •• ._._.__ ••
South Porto Rico Sugar Co. (of Puerto Rico). . __ ._••. •• ••__ .•__ ••_.
~~~~fc~~e1~:~e~e~~~~_~_~::::~~~:~=::~==~=::::=~=:::=~~~==::~===:::~=~
United States-Liberia Radio Corporation. ._• •• ._. • __
Wabash Radio Corporation • • . __ • . __ .••.•. ••...__ ._ .
Western Radio Telegraph Co.. .. ••__ . ••••__ . __ •._.._••_..._..__ .
Total com,
pensation for
1'''
Employees
Number ou
June 30
5,063,259 2,298 $3,930,350
(I~)4 5,261
tl 29, 640 OJ 94,9<13
3,021
(l~)330,"i,~3
II 820, 644 291 446,5S3
II 458, 508 245 420,320
12 1, 476 1 2,547
4,992
,
3,367
(10) 1 1,620
3,. 851 10 8,201
3,117,459 1,242 1,994,200
12 323,772 151 316,188
8,337 6 6,156
4,238
(10) (10)
232,994
"'"
283,834
11 3, 756 "9 4,941
11 39, 204 II 12 9,174
11,867
".
2,3('3
Revenue
messafl:es
transmitted
Rate percent
Dividends declared
Amount
NetinoomeName of carrier
1Report for period Apr, 20 to Dec, 31, 1934.
I Represents book liability for 6,837 shares of common stock without par value.
I Represents book liability tor 12,000 shares of common stock without par value.
10 Represents book liability for 50,000 shares of common stock without par value.
I No data re-portOO as radio operations are an integral part of the Soutb Parto Rico Sugar Co., and separate capital accounts are not kept.
GRepresents book liability for 50 shares of common stock without par value.
I Represents book liability for 40,000 shares of common stock without par value.
I Represents book liability for 5,000 shares of common stock without par value.
f Deficit or other reverse item. '
I~Data not reported.
11 Estimated on basis of the number of messages transmitted during the month of May.
11 Estimated on basis of the number of messajtes traI1smitted during the month of January.
" Includes 81 employees wbo receive no compensation {rom respondent.
14 Includes 5 employees who receive no compensation from respondent.
11 Includes 6 employees who receive no compensation from respondent.
11 Includes 4 employees who receive no compensation from respondent.
TotaL p _~•_~_~~~~• ••~_~_~~,~"_~,,_~._~__ • __ •~~~"~'"~~__ • 9 $125, 607 $300, 000 \_-_--_-_--_-_-__--"-"--'1_--''-:::'-''-1, ,+_--'-;=
gt~:~~~~:~~~~~~~===========:;========== =========:==== == =============:::=::::=::~'J~i!~:=::===:==:::: ==:==:===:::::Mackay Radio & Telegraph Co., Inc.(California)_~__~~__~••_. __~.~~__~__~~__,_~~__~~__9192,508~~_.~~_.~~__~'"__~,.,~_
Mackay Radio & Telegraph Co., Inc. (Delaware)~~~~••• ._.__~'.~~,~~"~"'~,,_,,~"'_'"9 510, 276,~,,~~,,~'"_~,"'__.,~~,~.,~_
Magnolia RadioCorporation,,~,~,,~~,~.~_~"_",••, •••__ ••~,~~~~,~"_'"_~~~__8I, 385_~__~~__~.~._.~_~~_
MiChigan Wrreless TelegraphCo.~~_._~.__._~_~_~~__~~•••_. __..~_._~.__ . .._~__~~I, 240 •••_.~__ . __ .~~_
OlympIC RadIoCo_~~.•_~.~~~~_~~_~.~__~__~~•__ •• •• •.~__~~__~.~__~~81£8 .•_. __~~••~.
Pere Marquette RadioCorporatioll~• __~~__~_._•••_.~._.~.~~~~_~__~~__~~~__~~.~_•.__~.~__~__.~_.•_~~__~._._••~.__~_
R. C. A. Communications, Inc ._. ••~~_.~_~~~__~~~. •~_546, 783~__~~._.~~~.~~__~_
Radiomarine Oorporation of America__~__._.~~__~~_~__~~__~~~••__ •• __ •• _•.• _•••• 111,445 300,000 60,00
South Porto Rico Sugar Co, (of PuertoRioo)_~~__~~__~•__ ._•••~~._._.~._••"_..~1, 20S • ._••,~~~•••
l~~?~~}~~~~~~~~;~~E~~~~~~~~~~~~j~~~~~~~~~j~~j~~j~~~~~~~j~~j~~jj~jjj~:;:~::j~jjj~jjj~jj~~~~~~:~~~jj~j
78 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
In table IV tax accruals, b;y States, are shown for telephone carriers report 
ing to the Commission for 1934. A list of telephone carriers in the hands of
receivers, or trustees, showing the dates of appointment of the fiduciaries, is
given in table V, together with the amounts of investment and capitalization
involved. There were no telegraph, cable, or radio carriers reporting to the
Commission for the yea).> 1934, which were in the hands of receivers or trustees.
TABLE IV.-Telephone carriers reporting to the Federa,l CQnwnunicaU<rt/s
Oommission
[Summary of taxes by States for the calendar year 1934)
State
Class A Class B
Totul State
Class A Class B
Total
carriers carriers cauiers carriers
----
Total, UnJ ted
Nebraska_________
$682,123 $2,730 $£84,853
Stllotes ___~__
$93,833,402 $349,018 $94, 182, 420
Nevllodllo __________
164,086 164,086
=
New Hampshire__ 3ao, 006 330, ClOO
AlabaIna_________
495,591 1,747 497,338
New Jersey ______
3, /73,442 3,773,442
Arizona___~______
3017,705 347,705
New Mexlco______
101,102 101,102
ArkanslloS_________
346,079 6,981 353,000
New York________
14,770,596 9, (',53 14,780,249
Cllolifornfa________
5,054,271 29,930 5,084,201
North CarolinB___
836,578 4,899 841,477
Colorado_________
638,868 638,868
North Dakota____
167,235 1,587 168,822
Connecticut______
729,357 729,357
Ohio_____________
4-,323, 591 27, 904 4,351,495
helaware_______
87,693 145 87,838
Oklahoma.____
1,0501,811 1,067 1,055,878
Florida___________
618,888 618,888
Oregon___________
9tn, 101
--iO:33i-
951,161
Oeorgia___________
644,380 10,5014 654,924
Pennsylvania_____
1,437,450 1,447,781
Idlloho ___ + ________
248,206
+-io:i4S-
248,2Q6
Rhode Island_____
208,292 208,292
nIinois___________
7,590,399 7,600,547 South Carolina___ 431,081 874 -131,955
Indlana_~~____ +__
1,782,671 44,400 1,827,071 South bakota____ 272,310 272,310"
Iowllo_+~___~______
710,709 12,012 722,721
Tennessee____ . ___
687,759
--jij,-32S-
687,759
Kansas___________
908,159 9,949 918, lOS
Texas____________
2,380,700 2,397,088
Kentucky. ___ • ___
713,846 713,846
Utah_~___________
285,062 285,062
Louisiana_____~__
978,668 4,850 983,518
VermonL ________
107,886 1,627 109,513
Malne____________
322, 286 322, 286
Virginia__________
655, 229 7,988 663, 217
Maryland________
1,198,401 1,198,401
-Washington______
2,218,769 5,-137 2,224,206
Massachusetts____
3,103,920 4,883 3,108,803 West Virginia____ 471,588
---s:9ig-
471,588
Michigan_________
2,516,457 2,516,4fi7
Wisconsin________
1,201,480 1,210,398
Mjnnesota_. ___~__
795, 771 12,. 445 808,216
Wyoming________
141,536 141,536
MississippL__ •__ +
567,070 567,070 District of Co-
MissourL ________
1,861,627 1,861,627
lumbia_________
459,832
--94;639-
469,832
Montana_______
296,994 7,002 303,996 U. S. Government 23,161,621 23,256,260
TABLE V.-Telephone carriers in the hands of receivers 'and trustee8
[Year ended Dec. :n, 1934]
1 Owns and operates eletcric! gas, ice, and water utilities; segregation of capitalization, etc., not available.
I Represents return for telepnone business only.
a Includes $6,663,402 book lia.billty for 288,896 shares of common stock without par value.
t Represents book liability for 1,000 shares of common stock without par value.
I Lon J. Jester was appointed receiver on Nov. 9, 1931, and appointed as trustee as of June 29, 1934.
6 Represents book liability for 88,221 shares of class A common stock without par value and 150,000 shares of class B common stock without par value.
f Includes $12,500 book liability for 25,000 shares of common stock without par value.
aIncludes $100,000 book liability for 25,000 shares of common stock without par value.
i Includes $85,730 book liability for 500 shares of common stock without par value.
I $7, 690, 529 a $8,852,757 $10,001,500 $2, 802, 500
895,084~5, 000 620,500
--------------
816,105 a 2, 186. 676 1,915,000 .509,700
4,370,493 7540,500 2,852,400 650,000
3,765, '1:72 i 500,000 2, 300, 000 BOO,ooo
20,780,984 12,493,178 19,715,900 4, 762, 200
491,995~160,730 186,000-_._--~..__...
491.995 160,730 186,000 -----_...-._--
21,272, 979 12,653,908 19,901,900 4, 762, 200
CLASS B
Kansas Home Telephone Oo.~_•••_••_. M. F. Oosgrove and A. L. Receivers Nov. 20,1934
Mullergren.
Total classB_.~••••_~__ • _
Grand totaL. • •__ •••_••~._•••~._••• ._•••••• _
"If N_""'_'_o'_"""__i_" ll----N-R-=-:-v-"'-o-'-"_us+t""__T_it_l'__I-D-p-~i-';;-t~-'-,..-';---I--i~-t-i-\L-tm_~_~~_;_I_c_'_~~_:_~__I-F-un-d,-g-:-d--I--M-fUn-:-:r-~-~d_
_ CLASS A
Central West Public Service Oo.l~Arthur B. Darling and Trustees June 8,1934
EnnBlls Berl.
Kansas Telephone Oo~••__ • • M. B. Gourley and M. F.Receivers_~~..Feb. '1:7, 1932
Oosgrove.
Mid-West States Utilities 00_. •••_••••_•••••••••• Lon J. Jester Trustee June 29, 1934 &
Southwest Telephone 00. (Dallas, Tex.). William H. Heald and Receivers Nov. 9,1932
Ohester H. Loveland.
Southwestern States Telephone 00 •• • do~do•••__ • do~
Total class A.~~~••_••••• ._.__ •••••_ ••_.__ ••__ •._~_
80 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
The amount of revenues received by class I steam railways, during 1934, is
shown in table VI. The returns are included in account 138, "Telegraph and
telephone ", in the annual reports filed by railways with the Interstate Com·
merce Commission. The carriers will be requested to segregate the amount
applicable to telegraph and telephone service in future reports.
TABLE VI.-Revenues received' by class I steam railways as reflected in account
138, l'Telegraph anate~ephone"in the annual reports filed by railtl1ays witA
the Interstate Oommerce Oommf,sSioo for the year ended Dec. 31, 1934
Name of railway
Amount
olrev 
enue
Name of railway
Amount
of rev 
enue
7,804
.5
6,814
2,050
28,703
5,950
199
6,134
121
80,810
'26
'02
57,505
•••
118,976
5,926
4,600
37
457
Nevada Northern Ry. 00 _
New Jersey & New York R. R. 00__ .•_
New York Oentral R. R. 00 _
New YorK, Ohica\;o & St. Louis R. It·.
Co • _
New York, New Haven & Hartford
R. R. 00 _
New York, Ontario & Western R)'. 00_
New York, Susquehanna & Western
R. R. 00 _
Norfolk Sout.hern H.. R. 00 _
Norfolk & Western Ry. Oo~••• _
Northern Pacific Uy. 00 _
Northwestern Pacific R. R. 00 _
Oklahoma City-Ada-Atoka Ry. 00 _
Oregon Short Line It. R. ('o~_.
Oregon-Washington RsHroad & Navl·
gation Oo~•
Pennsylvania R. H. Co.~_
Pennsylvanla·Readin1{ Seashore Lines __
Pere Marquette Ry. Oo .~_.__
Pittsburgh & La.kll Erie R. R.Co~_
Pittsburg & Shawmut R. R. Co •• _
Pittsburg & Shawmut & Northern R. R.
00 ._ ••~~1,419
Reading Oo~••__ 5,595
Rutland R. R. Oo._._~____________367
St. Jo.qeph & Oracd Island Ry. Oo~__2,970
St. LOlliS, San Francisco & TexasRy. Co. 119
San Antonio, Uvalde & Gulf R. R.Co~_2,2D9
SanDie~o& Arizona Eustern Ry. Co__ 2,656
Southern Pacific Co~... 40,971
Spokane International Ry. Oo ••~135
Spokane, Portland & Seattle Ry. Co____ 3,574
Texas Mexican Ry. 00_._••__ 4 ••4,5.~7
Texas & New Orleans R. R. 00 • 11,030
Texas & Pacific Ry. 00__ • ._________ 3,057
Toledo, Peoria & Western R. R • 1,926
Union Paciflc R. R. 00 .____ 88,127
Virginian Ry. 00 ._•• 2,163
Western Ry. of Alabama._.~._.41
Wichita Falls & Southern R. R.Oo~____861
Yazoo & Mississippi Valley R. R. 00__ 3,285
'l'otalfor United Sl.8tes •• 1,483,377
Oopper River & Northwestern Ry. Co.
(located in AJaska)~.__ • 1,910
=
Orand total.._.~~_••_ 1,485,287
52,890
305
278
9,750
.,007
$128
1,816
300,432
130
60,167
18,293
7,450
6,734
136,816
456
329
1,186
38,423
827
12,360
3,889
871
14,005
6,274
3; 328
6,b11
343
801
72,506
304
1,075
5,601
298
6,913
112,950
6,744
1,786
orf'
11,060
6,598
17,502
41,449
626
651
716
Akron, Canton & Youngstown Ry. Co.
Ann Arbor R. R. Co ••••••• _
Atchison, Topekfl & Santa Fe Ry. Co__
Atlanta &We~tPoint R. R. Co __.~_
Baltimore & Ohio R. R. 00 _
Boston & Maine R. R. Co~_
Oentral R. R. Co. of New Jersey__ . _
Chesapeake & Ohio R3-'. Co _
Chicago, Burlington & Quincy R. R. Co_
Ohicago Ureat '''estern R. R. 00 _
Chicago & Illinois MidlandR~'.Co _
Chicago, Indianapolis & Louisville Uy.
Co •
Chicago, Milwaukee, St. Paul & Pacific
R. R. 00 _
Ohicago, Rock Island & Gulf Hy. Co _
Chica1{o, Rock Island & Pacific Hy. Co_
Olinchfield R. n. Co •
Colorado & Southern Ry. Co _
Delaware & Hudson R. R. Corporatlon_
Delaware, Lackawanna & Western
R. R. Co ._. _
Denver & Hio Grande Western R. R. Co_
Denver & Salt Lake R). Co~_
Detrog & Mackinac Ry. Co _
DetlOlt, Toledo & Ironton R. R. Co _
Duluth, Missabe & Northern Ry. Co _
Duluth, South Shore & Atlantic Ry. Co_
Duluth, Winnipeg & Pacific By. Co. _
Eric R. R. Co ._
Georgia R. R. (lessee orf{fl.nlzatlon) •• _
Grand Trunk Western R. R.Co~__ ._.__
Oreat Northern Ry. Co ••
Gulf, Mobile & Northern R. R. Co _
Lake Superior & Ishpeming R. R. Co••
Lehigh & Hudson River Ry. Co • __
Lehigh Vaney H. R. Co•• _•• _
Long Island R. R. Co ._
Los Angeles & Salt Lake R. R. 00 _
Louisville & Nashville R. R. Co_. ••
Maine Central R. R. 00 .
Midland Valley R. R. Oo.~__ ••••__
Minneapolis & St. Louis R. R. 00 _
MlnnCflopolis, St. Paul & Sault Ste.
Marie Ry. Oo~__
Mississippi Oentral R. R. 00 _
Missouri & North Arkansas Ry. 00 _
Missouri Pacific R. R. Oo••~.•.~.__
Nashville, Chattanooga & St. Louis Ry_
In the accompanying chart no. 1 the total operating revenues, total operating
expenses, and net operating income of all communication carriers are indicated.
The relative amounts appllcable to telephone, and to telegraph, cable, and radio 
telegraph carriers are shown separately. The uniform system of accounts used
by telephone carriers differs from that prescribed for telegraph, cable, and radio 
telegraph carriers. In the former classification the amount of "Uncollectible
operating revenues" is deducted from the gross operating revenues whentrans~
ferred to the income statement, whereas in the latter classification it is handled
as an income account and deducted subsequently. The"Uncol1ectibl~operating
revenues" applicable to telegraph, cable, and radiotelegraph carriers, which
were deducted from the gross operating revenues during 1934, amounted to
$946,113.
OPElVoTlNG REVENUES, OPERATING EXPENSES, AND NET OPERATING RlVENUES FOil. THi YEAR, 19:5'"
OF A.L.L COMMUNICATION CAP.RI£RS REPORTING TOTWE FEtlERAL COMMUNiCATIONS COMMISSIoN.
CHAR.T NQ 1.
,
H4,61 1,Z07
13.70Z,OU
TELEPl'lONE CAR-RIER'S
TElE:o.. tt CAaJ.£ j~,~G.I",H~I
RAClO $ 33(,,6 H
"TlITAl. nLILGllA,pl-I,CAeU '" 111>010 CAIl",.US10UZ8.7"~
.nUJ,5H
-~
m
KE.Y
TnEGAAPIol,CAIL£.1
.....1;1 ....1110.
T'E1..IP\ol.ONt <:.\P;\l.IER$
H.LtG." tA&L£ $lVU02.~HI
RA'()I(l~,HG.380
TOTAL·"'UilJR~PII,t4B1..i"!Wllo tAllRlERS
TOTAl" AllllILI'O"TI",O GAll"IIL".
ll!l.lGunl
• I
G.H3,O~GI
TE1..EG.'&; CA&I"E
RAQIO
,.,"".....''''0''"' TH;.c
...<<-ClUN',,,,&, 5TAT,nl<AL. ""'0'A~"Fl»-P"~T"E""
no........ c""M"...,~-r'''''5<O..MJ5'_.
82 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
MONTHLY REPORTS
A list of the 59 telephone carriers reporting on a monthy basis is shown in
table VII, and the carriers marked with an asterisk are included in the Bell
System. Table VIII represents the" Summary of monthly reports of large tele 
phone carriers ", showing data for the month of May 1935 and cumulative figures
for the period from January to May 1935, inclusive. These summaries are
issued on a monthly basis by the Commission and distributed to a wide range of
organizations.
TABLE VII.-Li8t of 59 large tele.phone carriera reporting on a monthly basi-s to
the Fedfwal Gomm-un,ications Commission during 1934
Name of carrier
American Telephone Co • __ •• • •• __
"'American Telephone & Telegraph Co • • _
"'Bell Telephone Co. of Nevada ••_•• • • _
"'Bell J['elephone Co. of Pennsylvania ••• _
Bluefield 'l'elepbone Co •• • __
Carolina 'l'elepbone & Telegraph Co • • ••~_
"'Chesapeake & Potomac Telephone Co••• ._._. __
"'Chesapeake & Potomac 'l'elephone Co. of Baltimore City _
·Chesa.peake & Potomac Telephone Co. of Virgjllia.~_
"Chesapeake & Potomac 'l'elcphone Co. of West Virginia _
"Cincinnati & Suburban Bell Telephone Co.~__• _
Commonwealth Telephone Co. (Pennsylvanla). • _
"'Dakota Central Telephone Co __ • • ._. _
DeKalb·Ogle 'l'elephone Co_ • ._. • •
"'Diamond State Telephone Co •
"'Home Telerhone & 'l'elegraph Co. of Spokane, Wash •
"'Illinois Bel 'l'elephone Co • • •
Indiana Associated Telephone Oorporation .
"Indiana Bell '1'elephone 00 • • • •• •
Inter-Mountain Telephone Co.... • • __
Interstate Teltlpbone 00••• • .*. . .
Jamestown Telephone Corporation. ••• •~
Keystone Telepnone Co. of Philadelphia••• ••~~
*~r~~{i:'~ir.~~~thi:*1~~_?~~~~:==:=::=:::::=::::::::::::::::::::::::
Middle States Telephone 00. of illinois ••__ • .....__ ••_. •
·Mountain States Telephone & Telegraph 00 • • •• • •
Nebraska Continental Telephone Co ._... • • •
*New England Telephone & 'l'elegraph Oo•• ••.~.•
*New Jersey Bell Telephone Co ._ ••• • •
·New York Telephone Co •• •••• •• •~__ • •
*Northwestern Hell Telephone Co • • ._* •__ •••__~
Ohio Associated Telephone 00_ ••__ .. •••• ._•••__~__ • •
·Ohio Bell Telephone Co • ••• • • ••~.. ...~
·Pacific Telephone & Telegraph 00••••~.••~•• _.~
:~!~eG~~~:~~~oT~I~;lio];e-c-o_-~~::::::::::::::::::::::::::::::::::::::=
:::~~~.;~~I~~g~~eC8~~~~~i~~::::::::::::::::::::::::::::::::::::::::::
Southeast Missouri Telephone Co • •
*Southern Bell Telephone & Telegraph 00_. • •__ . •
"'Southern California Telephone 00 * • ._.
Southern Indiana Telephone & Telegraph 00_. . •
"'~~~~g~~r~:.e~~~~n~J'(~~~~)~.~~._:::::::::::::::::::::::::::::::::::::
·i~~~~:~~:~~~a!~~:~!ci:~~~~:~:~===:=:::=:::=::::::::::=::::::::::::
Star Telephone 00•• •• _. •• • •••
"'Tri·State Telephone & Telegraph Co••••_••~*.~
Two States Telephone Co ••••••• • • •••.~
*g~U~~:i:~~g~:gg~.~₯:~~)~~:::::::::::::::::::::::::::::::::::::::::
United.Tele~honeCo. of Pennsylvanla__ * •• • ....._ •••__
West CoastelephoneCo_._~.*_•••_. • •__ •• _. ••
Western Telephone Corporation of MlssourL •__ • •••••• ••••_
*Wisconsin Telephone Co __ ••~•__ ••_•• ••• ._. _
* Represents carriers included in the Bell System.
Office address
Abilene, Kans.
New York, N. Y.
San Francisco, Calif.
Philadelphia. Pa.
Bluefield, W. Va.
Tarboro, N. C.
Washington, D. C.
Baltimore, Md.
Richmond, Va.
Charleston, W. Va.
Cincinnati, Ohio.
Kingston, Pa.
Aberdeen, S. Dak.
Sycamore, Ill.
Philadelphia, Pa.
San FrancisCQ, Calif.
Chicago, Ill.
La Fayette, Ind.
IndianapoliS, Ind.
Bristol, Tenn.
Spokane, Wash.
Jamestown, N. Y.
Philadelphlll, Pa.
Lincoln, Nebr.
Madison, Wis.
Detroit~JvIich.
Pekin, ill.
Denver, Colo.
Columbl.!~Nebr.
Boston, MasS.
Newark, N.l.
New York, N. Y.
Omaha, Nebr.
Erie, PI'.
Cleveland, Ohio.
San Francisco, Calif.
Richmond, Va.
Dallas, Tex.
Rochester, N. Y.
San Anl;telo, Tex.
Cape Olfardeau, Mo.
Atlanta, Oa.
San FrancisCQ, Call!.
Seymour, Ind.
New Haven, Conn.
Brownwood, Tex.
Lubbock, Tex.
St. Louis, Mo.
Brownwood, Tex.
Ashland, Ohio.
St. Paul, Minn.
Texarkso,!. Tex.
Abilene,~aIlS.
Do.
D<>.
Harrisburg Pa.
Everett, VIash.
Kansas City Kans.
Milwaukee, Wis.
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 83
'l'ABLID VIII.-Bummary Of nwnthlll reports of la.rue teleplwne OOl1"riers
[Compllations, subject to revision, from reports of revenues and expenses of fi9 tele 
phone carriers, each having annual operating revenues in eXCess of $250,000]
MONTH OF MAY
Item 1935 1934
Increase or
decrease (-)
Amount Ratio
$2,744,727
100
56,500
$51,365,846 $50. 362, 204 $1, 0l:XJ, 642 '.0
3,632,241 3,527,700 104,541 3.0
856,773 934,888 -78,115
-8'j
21,250,329 20, 443,423 806,906 3.
2,426,0017 2,481},400 -63,353 -S.5
1,041},229 1,041,910 7,319 .7
3,156,747 2,922,461 234,286 8.0
331,177 318,054 13,123 '.1
83,406,035 81,403,932 2,002,103 2.'
14,649,716 14,608,917 40, 799 .3
15,367,530 15,262,131 105,399 .7
11,140,111 11,451,676 288,435
•.,
6,667,961 6,261,089 306,872
•••
4,703,914 3,957,660 746,254 18.9
1,019,729 1,013,968 5,761
••
6,010, 251 4,784,600 22.5,651 '.7
59,059,212 57,340,041 1,719,171 3.0
24,346,823 24,063,&91 28.2,932 1..
200
'"
"
81. 7
7.086 7,792 -706~9.1
24,339,946 24,056,214 283,732 I.•
8, '!B7, 657 8,381,909-94,~5S-1,1
16,052,289 15,674,305 377,984
•••
70.81 70.44 0,37
Number of cllITler telephones in service at end 01 Percent
month•• __ •~••_. _. _~1=~1~4.~3;";.;';01+,,,,;1~'~.OO;;;:I'~'~";"I~~3;23~.;08;7=1~=====2.;;;3
Operating revenues:
Suhscribers' station revenues__ . _
Public telephone revenues . _
Miscellaneous local service revenues • _
Message tolls _
MiscellsMous toll oorvice revenU8!L . . _
Revenues from general services and licenS6S _
Sundry miscellaneous revenues~_
Uncollectible operating I'1lvenues (Dr.) _
Operating revenues •• _
Operating expenses:
Depreciation and extraordinary retirements _
Ail other maintenance~
Tra.ffie expensllS~_
Commercialexpenses~~~__~_
General office salaries and expenses_. • _
General services and licenses•••~~_
All other operating expens8S~_
Operating expens6S •~_
Income items:
Net operating revenues~_
Rent from lease of operating property _
Rent for lease ot operating property _
Net operating income befQre tax deduction _
~r:~~~ft~:eriico·me_-::================:=======
Ratio otexpens8S to revenues (percent) __ H _
Change In capital Items:
Increase during month:
In "Telephoneplant"__________ $3,014,233
In "Capital stock"~~___-817,806
In "Funded debt" ._________ 221,680
FIVE MONTHS ENDED WITH
MAY'
Qpera.ting revenues:
Subscribers' station revenues~_
Public telephone revenu8S _
Misoollaneouslocal service revenu88 _
~~'W~~~~~toilservice-reveiilles::==========:=
Revenues from general services and licenses _
Sundry miscellaneous revenues__~.~_
Uncollectible operating revenues (Dr.) _
Operating revenues~_
-Operating expenses:
Depreciation and extraordinary retirements _
Ail other maintenance_.__~~_
Traffic expenses~_
Commercial expenses •~.
General officesalari~sandeX})ens~_
General services and licenses~_
All other operating expensas _
Operating expenses__ •• • ., _
Income items:
Net operating revenu8S__ • _
Rent from lease of operating property •~__
Rent for lease ot operating property • _
Net operating income before tax deductioD _
~~':~~M:ernco-me_-::============:====:===:==
Ratio otexpenses to revenues (percent) • _
-Changes in capital Items:
Increase during month:
In "Telephone plant..~__ • _
}~::~~~~s~6~::~======:=:=====:===:======
$253,579,540 $248,634,019 $4,945,521
'.0
17,421,451 17,268,386 1.53,065
••
4,271,573 4,716,806
-jjj ,..
-9'j
99,599,137 97,386,684 2, I :453
••
12,063,480 12,624,999 -561,619
-H
5,213,9.53 ts, 092, 712 121,241
15,595,736 14,M3,4.11 952,325
•••
1,694,654 2,171,722-
-1".088
-11.0
406,050.216 398, 11», 295 7, 56,921
'.0
73,186,898 73,036,038 150,860
••
73,093,144 71,94.1,432 1,151,112 1.6
55,588,207 54,177,854 1,410,353
•••
31,762,159 30,534,415 1,227,744
'.0
23,005,711 19,791,700 3,273,921- 16.5
5,066,270 4,94.9,082 1I7,188 H
25,331,522 23,883,701 1,447,821
'.1
287,003,911 278,314,312 8,779,599 3.'
118, 956, 305 119,879,983 -Of5,618 -.8
1, OSI 747 334
".7
35,556 38,210 -S,6S4 -6.9
118, 921, 830 119,842,520 -010,690 -.8
41,271,040 39,839,044 1,431,996
3.'
77, 6liO, 790 80. 003, 476 -1,851,686 -B.9
10.70 69.89 0.81
$5,389,159 $3, l)W, 475
------~-.~.-_._-------
-IH7,81J5 20,001,000 --._----_.--
---~-----~
-1,647,070 -976.4fJO._-_._-~_.--
-----~----
, Returns in 1935 reflect adjustments covering estimated refunds.
84 REPORT OF THE FEDERAL COMMUNICATIONS OOMMISSION
The tabulation of "Operating data from monthly reports of telegraph car 
riers" in table IX shows data for the month of May 1935 and cumulative
figures for 5 months. It is also Issued on a monthly basis by the Commission.
TABLE IX.-Operating datu from monthly reports of telegra"ph carrier8
[CompUatlon8, subject to revJsioD, from reports ot revenues and expenses of telegraph,
cable, and radiotelegraph carriers]
FOR THE MONTH OF MAY 1935
Name of carrier
Total
operating
revenues
Total
operating
expenses
Operating
income 1
Net income
(a) (b) (e) (d) (e)
$29(,~18.58
98.37
26.34
32.22
1 16, 451. 08
26,677.tiO
P)
6,558.6S
j 1,583.71
167,449.82"
2,430.86-
t 53.808.11
21.53
214.88
92.77
162.64
85.29 
748. 09
1131. 48
92.77
a05
85.29
544.60
1131, 48
418.4ii
274.51
All America Cables, Inc . $382, 383.14 $33G, 132. 06 1$3, 282. 34
Canadian Pacific Ry. Co. (lines In United States). 307.32 1,580.11 2 1,272.79
Central Idaho Telephone & Telegraph Co_______ 171.93 64.36 98.37
Central Radio Telegraph Co__~.__ 656.17 1,202.76 1848.66
Colorado & WYoming Telegraph Co_____________ 1,236.81 887.10 299.64
Commercial Cable Co. (New York and Limited)_ 357,079.63 280,525.55 63,144.24
Commercial Pacific Cable Co~._~••__ 88,314.85 62,332.23 18,025.18
Continental Telegraph Co~~~_~~__1,058.76 2,741.13 11,873.34
Globe Wireless, Ltd~.____________ 30, IJOO. 83 24, 134. 28 6,585.35
2f::~a~°?J~~~;iti~s:ei~N~a~~~~3r.&~~~h------------- ---~-------------------------~
Cable Co.)~__ 1,947,619.66 1,721,858. 16 169,094.83
Mackay Radio & Telegraph Co., Inc. (Cali·
fornia) •~___91,853.03 75,546.46 16, 324. 03
Mackay Radio &.: Telegraph Co., Inc. (Delaware). 69,045.42 91,250.52 I 22,671. 06
Magnolia Radio Corporation ••~._294.70 273.95 21.63
Michigan Wireless Telegraph Co__'~__616.62 400.74 214.88
Minnesota & Manitoba R. R. (lines in United
States)~_~~._~__611. 22
Mountain Telegraph Co~__296.06
Mutual Telephone Co_ (wireless department,
Hawaii)._._~__4, 2SB. 61 3,743.32
Northern Telegraph Co_ •~~__4,682.34 3,791. 10
Olympic Radio Co~__.~__148.50 260.00
Pere Marquette Radio Corporation •••~__900.13 900.13 • ._._ • ••__~_
R. O. A. Communications. Inc..._~__349,644-.68 329,655.73 1,356.17 8,694.36
Radiornarine Corporation of America •~__76,864.63 64,397.63 9,504.00 9,914.59
Tidewater Wireless Telegraph Co __ .____________ 371.87 535.04 1172.27 J 172.27
Tropical Radio Telegraph Co . . ._.____ 46,950.87 46, 858. 31 393.64 2,567.25
United States-Liberia Radio Corpomtfon • 5,800.92 4,663. 26 818. li6 818.85-
Wabash Radio Corporation~__ ._____________ 922.28 885.04 32.12 32.12
Western Radio Telegraph Co_. • ._______ 1,135.22 252.78 876.94 767.07
Western Union Telegraph Co._~.1-7.~8-6~1,-3-16-,-81-1.-6~,24_1,_7_48~.~C4-I-l~,28_1~,1~OO-.-1-7_1--680-',-.,-5-."_
TotaL.__~•__~.~11, 325, 331. 91 9, 291, 313. 35 1, 538, 39a. 42 643, 083. 29
FOR (j MONTHS ENDED WITH MAY 1936
1,655.93
1,365.93
18,722.34
18,104.66
964.41
4,247.01
1, 568, 629. 92
311,098.01
2,033.33
All America Cables, Iuc ._.__ ••~~~.~.$1,886,740.38 $1,610,799.04
Canadian Pacific Ry. Co, (lines in United States). 1,014.27 7,268.02
Central Idaho Telephone & Telegraph Co ._ 504.74 215.24
Central Radio Telegraph Co •• ••• • 916.65 2, 169. 26
Colorado & Wyoming Telegraph Co_. .__ 6, 191. 39 3,612.40
Commercial Cable Co. (New York and limited) __ 1,625,801.06 1,408,477. 13
Commercial Pacific CableCo_~.~••_.~._441, lotI. 54 305, 30::!. 26
Continental Telegraph Co~_•• .____ 5,522.26 12, 4Hl. 29
Globe Wjrele.'% Ltd__ _ 141,497.31 116,365.01
Great Northwestern Telegraph Co. of Canada__ . _••••_..~._
Mackay companies, The (Postal Telegraph-
Cabie Co.)_.~• • 9, 131, 199. 65 8,497,849.78
Mackay Radio & Telegraph Co., Inc. (CaU-
fornia) .~. . __ 416, 166. 38 378,720.66
Mackay Radio & Telegraph Co., Inc. (Delaware)_ 325,999.67 442. 185. 20
Magnolia Radio Corporation. . ••__ 1,159.18 1,400.52
MiclJigan Wireless 'l'elegraph 00________________ 1,412. 49 1,530,61
Minnesota & Manitoba R. R. (lines in United
States) . ._.._. .___ __ 1,632.63
Mountain Telegraph Co . ._____ 1,347.57
Mutual Telephone Co. (wireless department,
Hawaii) . •._.___ 20,676.67
Northern Telegraph Co .._~. __ . .___ 25,165.57
Olympic Radio Co_.~. •••_._ 858.29
Pere Marquette Radio Corporation_•. 4,247.01
R. C. A. Comll1unfcatiou'l, Inc •~___1,692, 904. 08
Radiornarine Corporation of America.___________ 370,931, 23
Tidewater Wireiess Telegraph Co_. ...._~___1,943.15
Footnotes at end oft8.bl~.
$221,529.51
J 6, 253. 75
243.50
21,685.12
2, 178. 86
150,387.69
161,299.68
27,812.00
2:3,932.20
:1204.69
350,016.54
27,693.41
t ll7,166. 50
1232.63
II ll8.26
l 23.30
2 111.00
1190.61
6,479.16
1215.71
$266, 455. 40
(.)
243.50
1810.12
965.29
3 222, 524. 01
154, 273. 36
(')
23,853.12
47,145.94
2776,019.30
141,658.48
t 265, 632. 03
2232.63
Ill8.26
123.30
1428.95
190.67
6,371. 78
2215.71
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 85
TABLE IX.-Operating data from monthly reports of telegraph oarriers-Contd.
FOR 5 MONTHS ENDED WITH MAY 1935-Continued
•
Total Total
Operating
Name of carrier operating operating Net income
revenues expenses
.lnoome
l
(a) (b) (0) (d) (e)
Tropical Radio Telegraph Co____________________
$279,9&6.48 $236, 049. 17 $43,982.70 $54.862.54
United Stnt;es.Llbf'ria Radio Corporation________ 26, 901.80 23,301. 23 2, 541. 09 2,543.0
Wabash Ra<Jio Corporation_____________________
6,170. II 4,W8.16 153.31 153.31
We.stern Radio Telegraph Co____________________
3,072.16 3,835.85 3791. 49 J 001.36
Western Union Telegraph Co _____~.____________
36, 173,754.78 30,246,619.05 4,257,252,73 1,405,575. 15
TotaL__ •••________ •______________________ .
52,593,818.50 45, 129, 985. 32 5, 137, 002. 28 738,229.20
1 Represents difference between oolumns (b) and (c), also includes deductions for uncollectible operatLng
revenues and taxes assignable to operations.
I Deficit or other reverse item.
2 OperatinE deficit assumed by parent company.
, Operatefl byWe,~ternUnion TeJegmph Co., lessee.
A summary of monthly reports received from 29 carriers in the Bell System
is given in table X showing the amounts applicable to telegraph operations,
and reflecting only the items which, are readily available from the carriers'
accounts. This summary covers the month of May 1935 and the cumulative
.figures tor 0: months. It includes theChristi8n~ToddTelephone Co. and the
Home Telephone & Telegraph Co. of Southern Oregon, Which do not file regular
monthly reports, inasmuch as their annual operating revenues are less than
$250,QOO. The Dakota Central Telephone CO'
I
the Rio Grande VaHey Telepbone
Co., and the Tri-State Telephone & Telegraph Co. are inclUded in the Bell
System and file regular monthly reports. They are primarily engaged in fur 
nishing telephone service, and do not report any revenUe from telegraph
operations.
TARLE X.-Summarll of monthlY reports of large telephone can'iet-s 1'elative to
available data concerning telegraph; operatio1w
[CompllatloDs, subject to revision, trom reports of revenues and expeDses of 29 Bell
System carriers1
May 1935 Cumulative ligures
Amounts Amounts
'rem
Total applicable Total applicable
operating to respond- operating to respond-
revenues ents' tele- revenues ents'tele-
and ex.penses graph and expenses II graph
operations 1 opemtio11$ !
Operating revenues:
$49, 680, 923 $7,659
8ubseribers' statlon revenues_._._____~______ ._
$244,776.482 $38,220
Public telephone revenues__ • __________________
3,605,061
----ill2;,592-
17,290,766
-----980;iioMiscellaneous local service revenues________ •__
821,813 4,000,050
~=J':n~~stQiiservloo-;e;eDut\i_-:::::::::::
20,592,696 322,214 97,006, IJ83 1,442,361)
2, 411, 911 1,180, 6U 11,996, 733 5,952,878
Revenues from general services snd Iicensas___• 1,048,645
------------
0,211,050
------_._.~-
8und~miscellaneous revenues_______~________
3,058,466
--------070-
15,117,672
-------ii;2i7
Unco eetible operating revenues (Dr.}_________ 314,048 1,608,851
TotaL_______~____ •__________________________
80,005,467 1,702, 403 393, 886, 885 8,407,451
Operating expenses:
Depreciation and extraordinary retirements:___ 14,216,682 42,473 70,978, 022 208,708
All other maintenance_._______________________
14,938,779 298,685 70,987,102 1,503,712
6~~riie~rain:~nses::::::::::::::::::::::::::
11,334,735 101,058 03,627.14.0 479,532
6,378,829 23,278 30,835,163 133,450
General omce salarIes and expenses__ •________~
4,650,453
--------:'iis-
22,304,924
-------i;668General services and Ii(.'(lnses___________________
1,009,897 5,017,160
All other operating exP6nsas____~_____~________
4,901.059 109,059 24,774,482 642,563
TotaL~~_______~_____ • _______________________
57,330,314 074,868 278, 523, 993 2,81111,531
Net operating revenues_________~___ •____ •___
23,575,153 1,127,535 115, 362, 892 5,537,920
---
I Reflects only iteDlll which are rtladily available from carriers' accounts.
I Returns in this column reflect adjustments covering estimated refunds.
86 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
Table XI shows the operating revenues, operating expenses, and net operating
income of the telephone carriers reporting on a monthly basis, from January
1003 to May 1935, inclusive, and chart no. 2 indicates the trend during this
period. The refunds, in excess of $16,000,000. to Chicago coin-box subscribers
cover an ll-year period and were deducted during June 1934 by the Illinois
Bell Telephone Co. They have been excluded from table 11, but restored in
chart no. 2 to preserve the consistency of the trend.
TABLE XL-Monthly telephone operating statistios sh<Ywing revenues, eil7penBes,
and net operating income as reported by large teleplume carriers from Jan 
uary 1933 to May 1935, inclusive
Mont,h
Operating
revenues
Operating
expenses
Net operat 
ing income
$56,935,698 $13,509,781
54,338,092 12,570,032
56,148,510 13,760,374
54,469,262 14,364,306
56,099,741 15, «9, 167
54,997,987 15,645, 565
54,289,5.55 16,402, 089
54,,~10,02015,834,100
54,123,136 15,250,313
55,012,772 16,055,009
55,573,5&014,481,~7
57,749.700 14,911,664
664. 248, 053 177,234,257
55,595,597 16, 176,496
53, 608,7~15,229,109
56,566,019 16, 073, 173
5.5,203,947 16,851,393
57,340,041 15,674,30li
1 40, 102, 676 t 16,908,761
67,525.077 13,263,070
57,347,305 14,149,842
55,719,928 14,660.444
58,061,699 16,209,469
57,050,446 15,118,956
158, 713, 909 I 14.980,225
1 662, 825, 202 1 185, 294, 242
07,823,365 16,377,419
155,419,745 1 14,214,133
57,292, 323 15,793,043
67,499,276 16,213,906
59,059,212 16,052,289
1287,093,911 1 77, 6.50, 790
1933
18Iluary_~~__~~_~~~_~_~~_~~~________$77,770,502
February~~_~_~_._.~~_.__~~_.74, 1012, 647
March.~~_.~~.~~__~~_~_~_~_~__~~77,031, 165
tf:;.l_-~~~=:::=:::=::=::~=:~==~~=:::::::::=~::==::=::==::::~g:~~:~~
lune.~•••~__ •~~_~.~~~_.~~_~~~~_____________ 78,793,476
July~__~~.~~•••~.__ •~~••_. 77,525,294
AugusL.~.~~.~~_._•••_.~_.~~_.. .._ 77,453,008
September•••__ .•~~_..~._~~.~_~_____ 76,706,882
October~~__~~••~••~~_._~.•~__ • 78,516,222
November. _• __.~~~_..~__~•.~_:__~___________77,349,341
DeOember~__.~...~_._~~__~•• • 78,778.569
I-ccc'-c-c-I-~__,__,__,__,__II---'-c-:-.:..,-,-
TotaL_~..•_~••••~~.______ 929, 129, 425
193'1~~~~~lo=~~~ol~~~o'===
January ..~__~~.~_~_~~_~...~..~__ * 79, 640, 131
February~_*.~..._._.~~__~~__~~_.~________76,614,086
March~~_~~__~_.~~• . • SO,696,191
tfa~l.~~=:=:::= ===~===:~=====:~=::=:::=:===: =:=::==::=::=::~~::::~~
June~__~~.__ . . . __._~~__ . __._.._.~._.~.__ * _. 164,626, 506
July.._....~..* ••••~~~~~.._ .._~.._~.~~~.~._.._~_.. 78,576,342
August••~._...* ••_* ••~•••_.~_.• ._•••_. 79,290,310
September•••••*~~~_~__~~__~~_.~._~~~••~~••~~__.* 78,075,839
October_~._~~._~•••~.~._._~._..._..._.._~...~.._~.__ .._.. 81,638,451
November__ •.__ ..__ .._..~~.•_•••.•_•.•._~_._•••_..... 79,583, 123
December~.-•••~••~••.•..--.-..--.•-~.-~..•--..--..-..•.'1__,_ao,-,-'_l1~,'-"'_'-1-_-'_'-'_1._-'_:......:.
Total. _.~*••••~_-...-.-..--*.*••-~•••_-._~_.•~•••••1=_'""';;;;;':0;3;;";;,;;,..;;;,[~;;;;;;;;;;;;;;;;;,I=;;;;;;;;;;;;;;;;;
1935
lanuary _•.__•.•~••~_.__ _ __ ._._..__ ..__ 81,475,230
February~..__ ..__ ..~__~_._._._•••_~.•__ ••.•_~.• _. 177.834,421
Marcb_**_._•.•*•••_~_._.._..__ ._...~..._.*. __ ..__ . __ ._.. 81,207,443
tfa~l_.:=====~===~==::=::===:=:==::==::==:=:=:===:==:==::==~l~:~
TotaL ..._.._..~..~~_._••••••~__ •__._~•• ._.__ I-:-,",,=,-=0"'50:-,"'21-='+====:-+===-=
I These returns reflect adjustments covering estimated refunds.
Table XII shows the operating revenues, operating expenses, operating income,
and net income of large telegraph, cable, and radiotelegraph carriers reporting
on a monthly basis from July 1934 to May 1935, inclusive, and chart no. 3 in·
dicates the trend during this period. The following is a list of the telegraph
carlers which have reported regularly on a monthly basis and are included in
table XII:
All America Cables, Inc.
Commercial Cable Co. (N. Y. and Ltd.).
Commercial Pacific Cable Co.
Globe Wireless, Ltd.
Mackay Cos., The (Postal Telegraph-Cable Co.)
Mackay Radio & Telegraph Co., Inc. (Calif.).
Mackay Radio & Telegraph Co., Inc. (Del.).
R. C. A. Communications, Inc.
Radiomarlne Corporation of America.
Tropical Radio Telegraph Co.
Western Union Telegraph Co.
CHART NO. a.
•
'.000,00',
i~1'3:" l'35
•'-'r--r--'i--'r--"r--'i---'T--'i--Jj---'\_-'i-----'i---'T--'j--___'T~\_+___'T~T_+___'T~\_+__'r~'\_+___'i-"r__'i
--
::
~
,00000.l'OI"--+--+--+--t--+-+--1--+--t--+-+--+--+--t--+-+--+--+--t--+--+--+--I-~t--+--+--+--'I
~
~._•••~. . • --" .. .._.___ --- ....----.. ts,on.ooo.
~~~
...oOo.o°t;:-t---:j=::t/j==f~~~~""*;:t:::i:::~::::::r=t:::::t/1-l-""F=f"'f:::o1=~7LI-t-t=I"~V7,.LF~t-j
~/---.-.-.-.--- .., _ •....-- .. -.- --................~.------.--.---- __ .__ ----..-------.- ----------.----- .---- .. ------~-J.lu.oOO.
~--
H.lu.oo,ofO-+--+---II---f--+-+--j---II---f--+-+--j---II---f--+-+--j---I,-l---+--+--+---I-~l---+-+--+--j,
~• • __ • - _. ._.••••_.. ------ ._ .••_._ .--------. --. ••---.- UJlfOJlOO. I
t-
'O,llUJl01~~-I-t-t-i-1--I-t-t-i-1-:::t-t-t-i-1-:::t=t:::t==t=-1-::::l:::=t:::::j=:::::j:~1-:::i==}::::~
~-~=--'T~T-'"~"4'"!"~"""""""""'f"~"~'T-f·~·~~r~,~"f-,-J----t--P---1__:'1--- t::: -b~.. - -.- 5$,1100.0
0
0-
; C
50.000'00oE-~1__-1___i-_j~-+~+,-1__-1___i-_j-+-+---+-1__-1___i-,_j-+-+-+-1__-1__-l-_j-+-+-+-'1
~- .-- --.-_........ 1·-,1· !.'- " - -.--. . ----.-..- ---------- .---- -. --..-. ------------~rpu,fOO.
~i~
1.0100.00'~=-C--+-+-+-+--j--1___i--+-+--j--+--1__-r-_i--j-+-+-+--j--r-_i--+-+-+-+-~+--r---'l~
~, - "._ +.... . l __..__ ,...... . _.__ __ _.. __ __~"",''',
3O,oOO.llOofO-+--+--I---f--+~+--j--I---t---+-+--j--I---f--+-+--+---I1---1---+-+--+--II--~f--+-+--+--j
t-~
.;::_.- _.---. ----- .....- -.. ---"'- --.-.. -.------ -------.. --- -'-'-., .--.-- --- ...,.-.-... - -.- .. - _.--"' ------ --- .. -. --...-----~J,oOO,OOO;
~~
:U,oOO,oO~l~.=.j:::lP""r-t~f"~'~·~i~'~~'~·r""'""r=t-t~l~~r~r=t-:::T::Ci'-:c::..~"1::,:::+=4-,,-'f"~t---+--t-4~-F"'t'c--c~--~u.ooopoo,
U.0I0.00'~E-=--+-+-+-+--t--f----l----+-+-+-+--t--f----l----+--+-+-+--t--f----l----+--+-+-+-t--t---'1
UOO,"~.--...---. --.-- -·t----· .---.. ------- .-.- ..-...-.-. ------ ------- ------- ------- -.-...,--"---- ---..----.-~
OPERATING REVENUES. OPERATING EXPElISES, OPERA1J(G INCOME, AND NET INCOME OF L4RGETEL~GRAPH,CABlE: AND RADiO CARfu£.R$.
CH,ART NQ 3
_T1>O&."An~T''''~.'''''DT........ "".....'l"'E..T.'EDERA~<.OI'l......)l;ATl ...~GOH..'~~'D... A""WIT. /JU,
193"'-
193$
if
,.
"
,
I'
• $
$
~
1I.500,oOIl.
11,<100,000.
o"'!
/
r-------
.'~~",..,J.'I
~
/
10,500.000,
?
-----
~
.......
10,000,000,
~.-/
~
='-oPfUTDI6_
'.'00,000.
',000.000,
----
---
~~e,50QOOO,
&.000.000,
1
e-
noo.ooo.
~ooo,ooo
~
~6.'00,000.
6,000.000,
~
"--
'.500.000-
5,000.000
"--~
....50QOOO'
E
,
4.000,000
1
'-
C
'1500.000.
31)00000
.
~
~1'-.500.000.
C
2DOO,OOO. '::
~
t---
~1500.000_
,.,
../
1,000,000,
r
---------
/
-------
""~
,l_~..<:Jr"o~
.•• J
,
.. .
.. 100,000.
•
~-"~'"
...J
..............
-......
----
'=
... . _ 500POD.
. ------
-- -- .. . .-~"-
REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 89
TABLE XII.-Monthlll operating statistics showing operating revenues, operating
ea:penBef1, operating income, and net income as reported by larue telegraph.
cable, and radiotelegraph carriers from, July 1934 to May 1935, inclusive
Month
Operating
revenues
Operating
expenses
Operating
fnoome
Net
income
$660,687 1 $141.494
1, 129,7f1l
2Il:J, ""734,833 111)1,196
1, HI, 100 312,163
501,616 1S96,9!S
1,412,584 1197,88$
5,450,530 1411, 154
767, '745 72,894
465,491 1483,699
1,100, agO 194,291
1,270, 840 426,156
1,539,634 638,929
5,144,100 868,571
9,042,419
8,602,729
9,006,799
9,041,769
9,268,440
45,022,156
10. 260, 120
9,523,416
10,623,767
10,776,716
11,302.063
52,. 486, 082
193'
luly~.______________ $10,187,606 $9,190, 316
AugusL_.~• • 10,788,336 9,214,474
September • •• • 10,084, 138 8,922, 674
October • • ._.__ 10,624,331 9, 136, 716
November ._______________ 9,840,905 8,935,064
December_----------.- ---_-----------------1_-,10-:,_00-:'_,'_3_'_1__9,-'3_00'-'_"_"1_---'-_---'-_1 '-'-_
TotaJ__~_.--- _. -. -.--- _..----J~~'='~~ol3~O=',9=,'~1ol~~"='="7~"=',='738='=I=,;,;;='='~='+~,;,;;='=~
HI35
January. ••_. •• •••_. __.•._.
February _
March • • _
~::-.:::::::::::::::::::::::::::::::::::::::::::
1-:::':::'-:-:::-1---::'-::::'-"'--[---:==-1-----=='=
Total. _
I Defiolt or other reverse item.
The amount of operating revenues, operating expenses, and net operating
income, during 1934, of large telephone carriers, reporting on a monthly basis,
are shown in chart no. 4 with the portion applicable to the Bell System. In
.chart no. 5 the number of telephones in service of large telephone carriers re 
porting on a monthly basis, are shown with the number applicable to the Bell
System, and the number in service of carriers other than those in the Bell
System.
Employees of the large telephone carriers and' large telegraph, cable, and
radiotelegraph carrIers reporting on a monthly basis, are shown in chart no. 6,
indicating the number of employees in the Bell System, and the total number
of telephone employees, in contrast with the number of telegraph and cable, and
radiotelegraph employees.
"T£LEPKOIE Sl:ATI$TlCS SHOWII'IG REVEMUE$.EllPEl'l$E!I,AM) NET OPERATING '4C0H£AS~I)RTEtl8Y LARGE nLEPHOME CARRIERS.
..eo_"'''~ON01' 1111.1. ....TlM e...."'..... WlT>t OTI<IU'.
,
............".TI..._."""II.,..." 165,294.242.
K~I.'VfITI.MCARR'11lSIOO,2U,79'
afMER"nWtK1.~!I'ffl'&I CA..RlERS 5,026.451,
•.......Me;.. TI........ CAIIlIKU U, 2. e 2,...201>.
.LL SVST'r.M _It..... ""7.44i2,0'"
Q1\lEll,lIlA"Ia'..S₯'mMCIo.IIll;lIRlI 1".'6'.15'1.
KEY
CHART NO.4.
•
",I.I.C_.,.I."£I'><ONI e.......'.'" '40.:lIO",U9,
_LL 'YSTEM CAlfRlIOU 9'~9 "S. ':lit
OT\lER"1"tWIaaLSVSTt.MCAIlll1E~l1,4:l17,"7a
Pl'r~ARJ!DII« nil
MeO"N.....". U"..'.7'G..... "N07U'"' _".......NT.
F'Egl."'AL _."""TlONS t""'MlS<;'ON
CHAAT NO.~
"'RI~I'b.wYHE
."o,,,,,,........G,~"""'TlUL",>10TA",~,o "~
F£ntl'<Al- <:OHHV",eA7IC'" GOMI1 ''' .
---------------.-
.~-~_.-
eHAAT 9ltOW1M$ ,iV"'UR OF Tf:\..tpMQMIOS III SEIM(:E AT £HD OF YEAR \934, AS REPORTEf) BY \..ARGE TELEPliOllE cAAAlUl&
A CClHl'AAlSON llFu.u. SY5nM CARRIERS 'JIIlTIoIOTH£!l.$
.'
70=-
~~
100=-·--··
92 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION
CI-lAAT NO.6.
N\II"IIIIlI, f1F llolPLOVtl:51N enYlC& OF ......I. 1.AltGJ: IlIPOl'lT1NG COMMl,tlrc..TloN tAIlRIEFUil AS OF JI.t<1I: »,j~
=
ZU,aoo----=:
Z\OMO-=
lH,OOO--:=
=
=
=
IO~.OOO----::::
=
i7,SOO
·1I'/1'U'l'P$1I/1II~_l
$'/S''''' CARli/EllS_TEll
1/1~IHfN#"r~6.
~
--'·'··/!Fil, SY'.5T£HCAJlIIIF,</S.~"-~.H4
o