FOURTEENTH ANNUAL~PORT • • ....'t. ",' . FEDERAL': t, COMMUNICATIONS COMMISSION FISCAL YEAR ENDED JUNE 30, 1948 (With Notation 01 Subsequent Important Developments) UNITED STATES GOVERNMENT PRINTING OFFICE' WASHINGTON. 1948 For sale by the Superintendent of Documents, U. S. Government Printing Office Washington 25, D. C. Price 30 cents COMMISSIONERS MEMBERS OF THE FEDERAL COMMUNICATIONS COMMISSION (As of December 1, 1948) CHAIRMAN WAYNE Coy (Term expires June 30, 1951) PAUL A. WALKER (Term expires June 30, 1953) ROSEL H. HYDE (Term expires June 30, 1952) EDWARD M. WEBSTFB (Term expires June 30, 1949) II ROBERT F. JONES ereI'm expires June 30, 1954) GEORGE E. STERLING ('l'erm expires June 30, 1950) FRIEDA B. HENNOCK (Term expires June 30, 1955) LETTER OF TRANSMITTAL FEDERAL COMMUNiICATlO:NS. COMMISSION, W tMhin(Jton 25, D.O., December 31, 1948. To the OOn(Jre88 of the United States: The Fourteenth Annual Report of the Federal Communications Commission, for the fiscal year 1948, is submitted herewith in compli. ance with section 4 (k) of the Communications Act. This report is intended to give the Congress, the industry, and the public a comprehensive word-picture of the unprecedented expansion of radio and other electrjral communication media and the responsi bilities and activities of the Commission in dealing with attendant problems. Since figures and situations in this field are never static, a summary of the more impol'tant developments since the close of the fiscal year is included for convenient reference. Respectfully, WAYNE COY, Ohairman. m [ Page IV in the original document is intentionally blank ] TABLE OF CONTENTS 1'... INTRODUCTORY SUMMARY ._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 1. Highlights of the fiscal year.,... .,.______ 1 2. Subsequent events ._____________________ 6 Ohl'pter I. GENERAL ._ 11 1. Functions . ..• 11 2. Commission_ _____ _____ ____ ____ _____ __ _ 11 3. Staff organization .. 12 4. Personnel____________________________________________ 13 5. AppropriationB_____________________ 13 6. Legffilation .___________ 13 7. Ljtigation_. .. • __ _ 14 8. Hearings___ __________ _____ __ ___ __ ___ __ _____ ___ __ __ 16 II. RADIO FREQUENCIES____ 17 1. Radio spectrum_____ 17 2. Allocation of frequencies_______________________________ 18 3. International conferences ._ 19 4. Frequency changes .oo____ 21 5. Frequency Allocations and Treaty DivisioD... __ . ___________ 23 6. Interdepartrnent Radio Advisory Committee_____________ 23 7. Domestic frequency allocations &Od rules_________________ 24 8. Intemational treaties andagreements_~~24 III. RADIO BROADCAST SERVICES__________________________________ 25 1. General___ __ ___ __ _______ ___ __ _____ __ ____________ __ 25 Broadcast regulation~• . 25 Postwar growth of broadcasting . _. __________ 26 Broadcast applicatiollS . 26 Broadcast hearings .____________________________ 27 Multiple ownership______ _____ __ _______ __________ __ 27 Broadcast editorializing___ ___ ___________ _ 27 Political broadcast-s .___________________ _ 28 Lotteries____ _____________ _________________ _____ __ 28 Other broadcast policy considerations .. 28 l'retworks ._____ 29 Broadcast station construction costs___ ______________ 29 Group interests in broadcasting___________ 29 Receiving sets .. __________________ 30 2. Standard (AM) broadcast service_______________________ 30 GeneraL~._30 Developments_ __ ___ __________ ____________________ 30 Clear "hannels oo ______ _____ _____________________ 31 540 kilocycles . ____________ _____ __ 32 Special temporary authorizations .___________ 32 V VI TABLE OF CONTENTS Ohapter Paa. III. RADIO BROADCAST SERVICEs-Continued 2. Standard (AM) broadcast service-Continued Small local outlets expand__________________________ 33 Standard·broadcast financial dats___________________ 33 3. Frequency modulation (FM) broadcast service____________ 35 FM continues to grow~________________35 FM applications_ _________________________________ 35 Network operation_ _______________________________ 36 AM duplication over FM stations_____________ 36 FM license period increR.-"led________________________ 36 FM constructioll____ __ ___ __ __ ___ __ 36 FM receivers_____________________________________ 37 4. Television (TV) broadcast service_______________________ 37 Surge in television applicatious and service___________ 37 Experimental television service_____________________ 38 Other television developments______________________ 38 Television receivers 4 39 Television channel allocations~39 5. Noncommercial educational broadcast service_____________ 40 6. International broadcast service_________________________ 41 7. Facsimile broadcast service_____________________________ 41 8. Remote pick-up broadcast service_______________________ 42 9. ST (studio-transmitter) broadcast service________________ 42 10. Developmental broadcast service________________________ 43 11. Broadea.<;t statistics___________________________________ 43 Authorized stations ... ____ _ 43 Broadcast authorizations by States__________________ 43 Broadcast applications_______________________ 45 AM broadca::;t appIications_____________________ 45 F M broadcast applications_ ________________ ____ 45 TV broadcast applications_ __ ____________ __ ____ 45 All other broadcast applications_________________ 45 • Total broadcast applications____________________ 46 IV. SAFETY AND SPECIAL RADIO SERVICES_________________________ 47 1. GeneraL_ ____ ____ __ __ 47 2. Aeronautical radio services_____________________________ 48 Aviation organizations and conferences______________ 48 Aircraft radio____ ________ ___ __ __ __ __ __ _ 50 Aeronautical land and aeronautical fixed radio stations_ 51 Airrlrome control stations____________ 51 Aeronautical mobile utility stations__________________ 52 Aeronautical navigation radio stations_ ______________ 52 Flying school radio stations____________ 52 Flip;ht test radio stations___________________________ 52 Aeronautical public service stations .: _______ 52 Aircraft radiotelephone operator authorizations_ ______ 53 3. Marine radio serviceB_____ __ __ ________ __ __ _ 53 General__________________________________________ 53 Safety at sea_ ____________________________________ 55 Safety on the Great Lakes_________________________ 57 Commercial commllnication____________ 57 Radio navigational aids____________________________ 59 TABLE OF CONTENTS VII Cbapter Page IV. SAFETY AND SPECIAL RADIO SERVlcEB-Continued 4. Emergency radio services______________________________ 60 Police radio service________________________________ 61 Fire radioservice_~_____________________62 Forestry-conservation radio service__________________ 62 Highway maintenance radio service_ __ 63 Special emergency radio service_ ____________________ 63 5. Railroad radio service • __ 63 6. Utility radio serviee~____________64 7. Industrial, scientific, and medical radio service____________ 65 8. Miscellaneous radio services____________________________ 66 Geological radio service • .~67 Motion-picture radio servioo~~_____67 Relay press radio service~~67 9. Experimental radio services____________________________ 68 10. Low-power radio services~._____ 69 11. Proposed land transportation radio service8______________ 70 Taxicab radio service______________________________ 70 Intercity truck and bus radio services_______________ 70 12. Proposed industrial radio services_______________________ 71 Power radio service_______________________________ 71 Petroleum radio service____________________________ 71 Forest products radio service_______ 71 Special industrial radio service______________________ '12 13. Safety and special services statistics .___ 72 Authorizatious_____ ___ ____________ ____________ ____ '12 Applications____ ___ _____ _____ _________ ________ ____ 73 V. COMMON CARRIERS__________________________________________ 75 1. Common carrier regulation_____________________________ 75 Common carrier radio stationB______________________ '16 Common carrier applicatioDS .. 76 2. Telephone (wire and radio)_____________________________ 76 GeneraL_ ________________ ______________________ __ 76 Domestic telephone services ._________________ 71 Construction of wire facilities , 77 Coaxial cable__ __ _ ___ ___ ____ _______ ________ 77 Dial telephones ._____ 78 Speed of service______________ 78 Rural telephone service ._____________ 78 Telephonerecordin~devices_ ___________________ 78 Cable landing Iicense__________________________ 78 Discontinuance, reduction, or impairment of aerv- ice .___________ 79 l'/ewdevelopments____________________________ 79 Microwave rela.y systems____________ 79 Short-distance radiotelephone service_ ___________ 80 Mobile radiotelephone service__________________ 80 Service in Hawaiian Islands_, ___________________ 81 Coastal and Alaskan service~81 International radiotelephone service~__ __ __ _ 81 Message toll telephone service___________________ 81 Program transmission and private-line serviceB____ 81 VIII TABLE OF CONTENTS Chapter Page V. COMMON CARRIERs-Continued 2. Telephone-Continued International radiotelephone service-Continued Equipment- _________ ____ __ ____ __ ___ __ 81 Docket cases~__ 82 Frequencies___ ___________ ________ __ ____ _ 82 Interference_____ _____ __________ ________ 82 International telephone conference___ _____ _ 82 Rates and tariffs • __ __ __ _ 82 Rate Bchedules_ ______________ ______ __ __ _ 82 Special permissions_ _____ _________ __ ____ _ 82 Other-line charges_ 82 Channels for Ji'M program transmission_ __ 83 Channels for TV program transmission___________ 83 Great Lakes ship-shore telephone service_ _ _ 84 Ship and aircraft telephone service_______________ 84 Washington metropolitan area__________________ 84 Cooperation with other regulatory bodies__ ______ __ 85 Western Electric cost and price review____ _ 85 State telephone rate cases_ _______ __ _____ _ 85 Allocation of depreciation reserves of multi-State companies__________________________________ 86 Separation of property, revenues, and expenses____ 86 Bell system license contracts____________________ 86 Other regulatory matters___________________________ 87 Uniform system of acconnts_____________________ 87 Financing and refinancing______________________ 81 Pensions and relieL____________________________ 87 Preservation of records_ _____________ _____ 87 New types of plant and services_ _________ _ 88 Restatement of plant on basis of origintll cost_ _ 88 Continuing property record13_ ________ ____ _ 88 DepreciatioD___ ______________________ __ _ 88 Telephone statistics~. _ 89 3. Telegraph (wire, cable, and radio)_______________________ 90 Domestic services and facilities______________________ 90 Western Union modernization program___________ 90 Domestic radiotelegraph___ _______ _______ _ 90 Construction of wire facilities___________________ 90 Speed of service_______________________________ 90 Discontinuance, reduction, or impairment of tele- graph service_____ ____________________ _ 90 Rates and tariffs~____91 Rate schedules~____ __ ___ 91 Specialpermission~__________________ _ ___ 91 Other-line charges~____ 91 Government rates~~____ 92 We8tern Union ratest.ructure___________________ 92 Channels for TV program transmission___________ 92 Other regulatory matters (domestic and international)_ 92 Depreciation~____92 Continuing property records____________________ 93 Pensions and relieL. 93 ReclassificAtion of planL_______________________ 93 TABLE OF CONTENTS IX Chapter Page V. COMMON CARRIERs-Continued 3. Telegraph-Continued Land-line telegraph statistics__~_____________________93 International telegraph • • • 94 International conference. . •._._ 94 Services and facilities__________________________ 94 Circuits. • • ._••__ • 94 Docket cases .__ _ 94 New services • ._ __ _ 95 Rates and tariffs______________________________ 95 International rate case. .___ 95 Multiple address press rates________________ 96 Radiophoto service________________________ 96 Suspension ofproposed telegraph rate changes_. 97 Statistics_ _________ _____________ ___ __ __ _ 97 International telegraph (radio and cable) traffic, 1947-___________________________ 97 International telegraph (radio and cable) financial and operating data______________ 98 VI. RADIO OPERATORS, AMATEUR AND CITIZENS RADIO SERVICES____ 101 1. GeneraL__ __ __ _____ ___ __ ________ ________ ___ __ ___ __ ___ 101 2. Commercial radio operators~______________101 3. Amateur radio service_________________________________ 105 4. Citizens radio service__________________________________ 108 5. Statistics_ ______ __ __________ ________________ __ _ 109 VII. FIEtD ENGINEERING AND MONITORING_________________________ 111 1. GeneraL__ __________ __________ __ _________ _____ __ _____ 111 2. Inspections~___ _ 111 Broadc!lst station inspections_______________________ 111 Ship inspections___ 112 Number of ship inspections_____________________ 112 Number of discrepancy notices served___________ 112 Violations cleared during inspections_ ___________ 112 Inspection of other r'1dio stations~____113 3. Operator examinations~____113 4. Monitoring~___ _ 113 Service to industry, public, and Government_________ 114 Enforcement by monitoring________________________ 114 5. Technical operation_ ___ __ __________________ __ _________ 115 VIII. TECHNICAL STUDIES_________________________________________ 119 1. Technical information division~____119 Wavepropag~tionrcsearch_________________________ 119 Medium frequency projects____________________ 120 Sunspot cycle____________________________ 120 Weather effect on ground wave field intensities_ 120 Atmospheric noisc___ ______________ __ ______ 120 Sky wavepulsetransmissions_______________ 120 Daytime sky wave refleetions v ____ 121 VHF and UHF projects_______________________ 121 Very high frequency recording~____121 Special studies and miscellaneous activities_ _________ 122 x TABLE OF CONTENTS Chapter PaKe VIII. TECHNICAL STUDiEs-Continued 2. Laboratory divisioD___________________________________ 123 General functions_ _______________ _____ __ __ __ __ _ 123 Industrial heating, diathermy, and miscellaneous equip- rnent__________________________________________ 123 Stratovisioll______________________________________ 124 TelevisioD_____ ________ __ __________ __ _____ _______ _ 124 FM broadcast_ __ __ _____ _____ __ __ ___ __ _ 125 Mobile services_ ___ _____ ___________ ______ __ __ __ __ _ 125 Equipment testing_ ____________________ __ __ _____ __ 125 Field surveys • 126 Calibration of apparatus___________________________ 126 Low-power devices_ __________________ _________ __ __ 127 ApPENDIX_~______________________________________________________129 1. Field offices_ ____________ __ ___ __ ____ __________ __ __ _____ __ 129 2.Publications~____ ____ __ __ ______ ____ __ __ ______ __ __ ___ ______ __ 131 3. Treaties and other international agreements .____________ 133 INTRODUCTORY SUMMARY 1. HIGHLIGHTS OF THE FISCAL YEAR 2. SUBSEQUENT EVENTS 1. HIGHLIGHTS OF THE FISCAL YEAR The fiscal year 1948 emphasized the acuteness of the "housing" shortage which exists in the radio spectrum. It is becoming in creasingly difficult to squeeze new stations into already congested bands, and to accommodate rapidly developing services. Until methods and equipment are available to use higher portions of the spectrum, present frequencies must be employed more effectively. Accordingly, in cooperation with industry, the Commission was en gaged in reviewing and revamping existing radio services, and con ducting engineering, and other studies looking to future adjustments. Since frequency allocation and use is also an international problem, the Commission is playing an increasingly active role in world con ferences directed toward uniformity of practices and usages made necessary by kaleidoscopic developments in the field of electrical communications. Besides doing a large share of the preliminary work, the Commission furnished delegates or advisers to 15 such ses sions held during the year, and was preparing for 20 others in prospect. The general public is familiar with broadcasting because it enters the home. But it has little acquaintance with the more than 50 other classes of radio stations, equally important in providing more than a hundred diversified nonbroadcast services, which outnumber pro gram stations by more than 30 to 1. As of June 30, 1948, there were nearly 131,000 authorized radio stations' of all types, not counting associated mobile stations. In addition, various radio·operator authorizations approximated 505,000 Thus the Commission had over 635,000 radio authorizations on its books, which was an increase of about 85,000 during the year and more than 3 times the prewar number. In the same period the Commission received in excess of 200,000 applications relating to radio. This is almost double the volume be fore the war. In addition there were more than 3,100 applications and nearly 30,000 tariff and other filings. during 1948 in connection with Commission regulation of wire, cable, and radio common car riers engaged in international and interstate service. The Commis sion continued to simplify its forms and other licensing procedure 1 2 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION insofar as legal and technical requirements permit. There is no fee or other charge in connection with its licensing or other regulatory functions. Broadcast authorizations increased 400 over the previous year, bringing the total number of stations in 10 categories to nearly 4,000. Of this figure, 3,163 were major broadcast outlets-2,034 amplitude modulation (AM); 1,020 frequency modulation (FM); and 109 tele vision (TV). They represented a gain of 239 AM, 102 FM, and 43 TV stations. The last half of the year witnessed a sudden surge in TV applica tions and a leveling off of FM requests. Applications for new TV stations for the year almost equaled the number for new AM facilities; FM seekers were less than half the TV number. Texas and Cali fornia led all States in total outstanding broadcast authorizations in these three categories. AM broadcast income in 1947 (the most recent year for which sta tistics Were available) was less than the year previous, though the major networks showed a gain. Slightly more than 1,100 AM stations were affiliated with the 4 Nation-wide networks, and there were more than a score of regional AM networks. Under the impetus of rebroadcast opportuuities and expanding coaxial cable and microwave relay facilities, FM and TV networks were developing. Broadcast receivers of all types were nearing the 75,000,000 mark. Noncommercial educational broadcast stations increased from 38 to 46 and international broadcast stations remained at 37. Television experimental stations jumped from 81 to 124. Remote pick-up and developmental stations decreased slightly. The broadcast year was marked by authorization of a new broad cast service-facsimile-which was scheduled for commercial opera tion over FM stations beginning July 15, 1948. Facsimile had been on an experimental basis. Safety and special radio services, as their designation implies, are devoted largely to safeguarding life and property-on the land, sea, and in the air-but also cover utilization of radio for industrial and business purposes. These activities were under skyrocketing atten tion and development. Numerically more than 10 times larger than the broadcast service, the safety and special services saw nearly 11,000 new station authoriza tions during the year, bringing their total to over 47,000. What is more, nearly 150,000 mobile stations were covered in these nonbroad cast services. The largest increase was felt in the aeronautical field which added nearly 5,000 radio stations, making a total of nearly 21,000. The REPORT OF THE FEDERAL COMMUNICATIONS COMi'lnSSION 3 marine services gained over 3,000 stations, for a total of 15,000. More than 600 ship radar installations attested to the growing use of that navigational aid. Police radio stations increased to over 4,100, fire stations to nearly 100, forestry stations to nearly 500, and special emergency to nearly 100. There were over 200 railroad radio stations, 75 transit utility stations, 24 stations for intercity buses and trucks, and taxicab opera tional stations grew to nearly 3,000. In addition, some 3,000 stations were being used by industry-1,700 by utilities, 400 by petroleum pipe lines, 32 by lumber interests, and 750 others employed in connection with probing for oil, direction of motion pictures, relaying press messages, etc. Over 600 experimental stations were testing new equipment and techniques. The safety and special services were in a particular state of flux due to changes necessitated by domestic and international developments. A new highway maintenance service was inaugurated during the year, which on June 30 had grown to 126 stations. Two new service groups were proposed-to cover land transportation and industrial uses of radio. More than 57,000 applications attested to the mounting interest in the safety and special services. Requests for experimental authoriza tions looked to specialized Uses which veritably extended "from the cradle to the grave." Thus, while one Texas applicant sought radio for his baby diaper pick-up-and-delivcry service, a large Chicago ceme tery wanted radio to direct funeral corteges. Common carrier services had approximately a thoul3and radio authorizations, covering more than 900 experimental stations (of which nearly 800 were general mobile), and 27 fixed public telephone and 56 fixed public telegraph stations. Telephone regulation by the Commission covers interstate and inter national service by the Bell system and 63 independent companies. The telephone industry experienced a record business in the fiscal year. The Bell system, which owns about 85 percent of all telephones in use, handled over 36,000,000,000 conversations. New interstate wire and cable telephone construction amounted to $127,000,000. Gross tele phone investment exeeeded $8,000,000,000. The thirtieth million Bell telephone was installed at Marshalltown, Iowa, on June 20, 1948. This increased the number of Bell and inde pendent telephones in service to more than 36,000,000. Some 2,200,000 of these instruments were in rural service. About 40 percent of farm homes now have telephones. However, in three southern regions five out of six farms are still without this service. More than 65 percent of all Bell telephones and 33 percent of the independent telephones had been converted to dial operation. 4 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION There were no material interstate rate reductions during the year. However, State utility commissions had granted increases of $138, 000,000 in intrastate rates in 35 States during the postwar period, and requests for increases totaling $66,000,000 were pending before utility bodies in 15 States. During the year the Commission authorized the use of telephone recording devices, with appropriate tone-warning signal, subject to the filing of related tariffs by August 2, 1948. At the year's close nearly 7,700 miles of coaxial cable, representing an investment of $170,000,000 (including 1,435 miles approved in fiscal 1948 and estimated to cost $42,500,000) had been authorized for the Ben coaxial cable system, to accommodate many types of com munication services, including television. A microwave relay system between New York and Boston was inaugurated November 11, 1947, and New York-Chicago and other links were being built. Short distance radiotelephone service to isolated places was growing. Tremendous expansion took place in the mobile telephone service. Telephone carriers have made such service available in 60 cities and were completing installations in 22 other cities. Highway service was operating in the vicinity of 95 communities, and construction was under way in 37 additional areas. Overseas telephone service was reestablished with four countries and made available for the first time with seven other countries. About 575,000 overseas radiotelephone calls were handled during the year as compared with 50,000 annually before the war. Telephone service with ships and aircraft was on the increase. Telegraph regulation dealt mainly with the Western Union Tele graph Co., which has a monopoly in the domestic field, and with inter national radio and cable telegraph carriers. New domestic telegraph facilities authorized during the year in cluded 38,200 channel miles, at an expenditure of $260,000, and lease of 70,500 channel miles for $350,000 annually requiring terminal equipment costing $367,137. Western Union was carrying out its $72,000,000 modernization program which, in addition to mechanization features, saw the com pletion of a microwave triangle connecting New York, Philadelphia, Washington, and Pittsbnrgh. Western Union had more than $300, 000,000 invested in plant and equipment. Its revenue messages in creased to more than 220,000,000 in the calendar year 1947. In Feb ruary 1948 the Commission prescribed anual depreciation rates to be used by Western Union for classes of depreciable land-line plant, on the basis of a study concluded by the Commission. Over 700 requests for reduction of office hours or closure of offices were received from Western Union. In February of 1948 the Com- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 5 mission proposed a standard to determine the conversion of company operated offices to teleprinter offices operated by nontelegraph agencies. Repeal, dnring the year, of the Post Roads Act of 1866 resulted in the Federal Government losing the benefit of special telegraph rates on its domestic traffic, though priority continued to be given particular Government messages on specific request. Cable and radio telegraph carriers handled more than 656,000,000 paid words in the calendar year 1947, which was a slight decrease from the year previous. Of the 1947 total, over 337,000,000 words were in out-bound traffic. New radiotelegraph circuits to Israel and the Dodecanese Islands were opened during the year. To meet the urgent revenue needs of international telegraph carriers, the Commission in July of 1947 authorized out-bound rate increases aggregating $5,485,000. On the further plea that most of the carriers were still losing money, the Commission in April of 1948 permitted additional increases amounting to $3,188,000. The revised rates remained not in excess of 30 cents per full rate word. Radio operators, in the various categories, increased more than 64,000 during the year, bringing their aggregate total to more than 500,000. The largest group comprised commercial operators--347,000. Amateur operators numbered nearly 78,000, and their stations about 78,500. As a convenience to civilian flyers, special authorizations to operate radiotelephone installations in their planes were issued at airfields. Such authorizations approximated 80,000. Field engineering and monitoring activities, conducted through 33 field offices augmented by 21 monitoring stations, dealt primarily with technical supervision of radio operations, reduction of interference, and apprehension of illep;al transmitters. Nearly 30,000 inspec tions were made, of whieh number over 16,700 were land stat.ions and 12,500 were ship stations. More than 17,000 violation, advisory, and other notices were issued. One hundred and fifty-three illicit radio operations were traced and closed, an increase of 26 percent over the previous year. Violators ranged from irresponsible youth to will ful oldsters. Operator examinations, largely p;iven in the field, approached 100,000. Aid was given in 170 cases of lost planes. Interference complaints handled in the field jumped from about 6,800 such cases in 1947 to over 22,000 last year. Of the latter figure, nearly 1,500 were of a major nature. Some sources of interference were traced to drawbridges, medical apparatus, industrial dryers, and even miniature aqnariurns. Technical studies were conducted in the interest of improvinp; pres ent and future radio operations. They covered possibilities in the use of higher frequencies, effects of wave propagation, skywave reflec tions, ground conductivity, signal intensity, harmonics, directional 6 REPORT OF THE FEDERAL COlVIMUNICATIONS COMMISSION antenna, etc. In addition to continuing studies, 83 new projects were initiated. Such data, besides being useful to industry in developing apparatus, are guidance for the Commission in considering rules and engineering standards for the operation of new services. Laboratory work featured the testing of new equipment submitted by manufacturers for type approvril prior to being placed on the mar ket. Thus, many potential interference problems can be dealt with before they materialize. In this way certain difficulties in connection with medical and industrial heating rcppliances were ironed out at the source, before they assmned larger proportions through operation. 2. SUBSEQUENT EVENTS The Commission, on August 19, 1948, proposed changes in the multiple ownership rules affecting commercial broadcast stations which would limit ownership, operation, 01' control by the same in terest to not more than 7 AM stations in the country as a whole, and overlapping interests or connections to not more than 14 AM, 12 FM, and 10 TV stations. These woul<1 be in addition to the present rules noted under Radio Broadcast Services. Oral argument was scheduled for January 17, 1949. The situation in television with rmlpeet to interference and in suflicient spectrum space below 300 meg'teye1es, and the possibility of operating in the 475 to 890-megacyc1e band, was the suhject of a hear ing before the Commission September 20 to 2:3. Pending determina tion of future TV channel allocations, the Commission on September 29 ordered applications for new TV stations placed in the pending file. It subsequently seheduled engineering conferences for November 30 to December 2 to consider technical data in connection with proposed rule making on tropospheric propagation. As of October 1, the nnm bel' of TV receivers had increased to 612,000. The text of a tentative TV-allocation plan between the United States and Canada was made public July 7, and an agreement between those countries respecting FM, on August 19. As a result of objections voiced by the Commission to the Department of State on May 6 and September 9, Mexico was understood to have agreed deferring its pro posed use of the frequency 540 kilocycles for a standard broad cast station pending clarification of the issue at the next North Ameri can Regional Broadcasting Conference. An engineering conference was called by the FCC for December 7 to 9 to discuss NARBA matters. Rules to permit low-powered educational FM broadcasting became effective September 27 and, on October 21, the Commission granted the first construction permit for a noncommercial educational station with power of less than 10 watts, to Syracuse University. REPORT OF~'HEFEDERAL COMMUNICATIONS COMMISSION 7 Special temporary authorizations for AM broadcast stations were abolished as of August 16. The rule which requires AM and FM broadcast stations to make certain performance measurements at least once a year was postponed for 1 year from August l. A number of broadcast issues mentioned in this rcpmt were the subject of hearing or oral argument before the Commission subse quent to the close of the fiscal year and their determination was still pending. Oral argument in the matter of origination of AlVI and FM programs (main studios) was held October 15, and on promulgation of rules governing lottery programs October 19. Hearing on broad cast editorializing was held November 1. Hearing on agreements between networks and affiliates for the sale of national spot adver tising, which began November 29, recessed to January 3, 1941:), In the period between January 1 and August 31 there were 112 deletions of authorizations in the three major broadcast services-36 AM (including 3 licensed stations and 2 other stations on the air); 74 FM grants (including 2 stations on the air), and 2 TV grants. As of November, Chicago had mOre authorized AM, FM and TV stations collectively (33) than any other city in this country-or the world. New York City was a close second with 32, followed in turn by Los Angeles, 29; Philadelphia, 23; vVashington, 21; San Francisco, 19, and Boston, 16. On September 20 the Midwest coaxial link between Buffalo, Cleve land, Toledo, Chicago, and St. Louis was made available for television relay, with microwave connections with Detroit and Milwaukee. Connection with the eastern system was scheduled for January 12, 1949. Hearing on charges and regulations for television transmission services and rates of the American Telephone & Telegraph Co. and the Western Union Telegraph Co. resumed on September 29. On Odober 18 the Commission ordered determination of the regulations anel practices of interconnections of TV facilities before considering the reasonableness and lawfulness of rates. Proceedings affecting the General and Public Mobile, Land Tl'llns portation, Illdush'ial and Public Safety Radio Service::;, and frequen eies for their usc, resulted in oral argument from October 6 to 15. Previously, on August 19, the Commission suspended further consid eration of general mobile and industrial radio applications, formerly authorized on an experimental basis, pending final action on proposed rules involved in the previously mentioned proce,edings. For the same season, it extended to November 1, 1949, the terlll of existing general mobile class 2 experimental licenses. 813501---49-2 8 REPORT OF THE FEDERAL COMMUNICA'rIONS COMMISSION Further steps looking toward the use of individual transmitter receivers for personal and private communication were taken by the Commission on August 13 in proposing rules to govern the Citizens Radio Service, and on September 29 in proposing a simple application form in that connection. :Meanwhile, no licenses were being issued in this contemplated service, except on an experimental basis, until rule making is finalized. The Commission designated for hearing and oral argument, on November 22, proposed amendments to the Rules and Regulations Governing the Ship Service and Commercial Radio Operators with respect to installation and use of radar equipment. Harmonic and spurious emissions from all types of radio transmit ting apparatus were considered at an informal engineering conference ou August 10. A hearing, which started August 9, obtained expressions by common carriers and other users of international services preparatory to the Internatioual Telegraph and Telephone Conference to bc held at Paris in May 1949. Hevenue requirements of international communications carriers and the question of whether immediate additional rate increases are war ranted were heard beginning November 15. Western Union, on September 22, was granted a further I-year extension (to September 27, 1949) to divest itself of international telegraph operations in compliance with conditions of the merger involving Postal in 1943. On .July 22 the Commission instituted an investigation into the applicability of section 314 of the Communications Act to the organi zation and operations of the American Cable & Radio Corp. System. Hearing began December 7. To relieve the work load of Commissioners, proposal was made on August 19 that initial decisions be issued by hcaring examiners or Commissioners presiding at hearings, and that motions presently handled by the motion's Commissioner, with certain exceptions, be acted upon by hearing examiners. On October 20 and November 3 the Commission amended part 1 of its rules and regulations to reflect recent changes in nomenclature Hnd organization. As of October 31, 1948, outstanding radio authorizations exceeded 675,000, an increase of more than 39,000 in the four months since the close of the fiscal year. The figures, for sllrvices and groups, were: REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 9 Service Broadcast: Standard (AM) . •.~." _ Frequency modulation (FM) ._._ ~;j:~~~:~~~~~~rimental)~~:~================= ====== ===: :::::::: Noncommercial educational ._.__ InternationaL .. . Facsimile . . . . _ Remote pick-up . . . _ Studio transmitter (ST)~_ DevelopmentaL_ . __ .. __ . __ . __ Total broadcast services Total nonbroadcnst services. Common carrier: General mobile . . _ ExperimcntaL__ . . . ._ .... Fixed pu!Jlic telephone. . .._..._ ]l'ixcd public telegraph . . __ . _ Total common carrier_._ Operators: Commercial operators • __ . . . ._ Aircraft radiotelephone . __ . . __ Amateur operators.._. __ . .. . __ . .. Amateur stations . e • • ••••••• _ Citizens (experimental) .. __ .. _ Total operators _ Grand totaL. _ June 30, Oct. 31, Increase 1948 1948 2,034 2,103 " 1,020 996 (-24) 109 124 15 124 168 44 46 46 • 37 " • 2 2 0 571 578 7 9 22 13 15 15 • 3,967 4,091 124 20,858 24,596 3,738 15,024 17,172 2,148 4,137 4,308 171 85 97 12 461 516 55 126 141 15 94 92 (-2) 1,656 2,025 369 412 515 103 32 " 37 755 822 67 20' 235 31 77 83 8 24 32 8 2,817 3,188 371 652 555 (-97) 47,4.14 54,446 7,032 785 855 7. 128 127 (-1) 27 27 • " " • 996 1,065 " 347,80.1 3fl.1,OOO 1.'>,197 80,000 91,308 1,3138 71,923 80,549 2,626 78,434 81,170 2,7a6 " 86 18 584,208 616,153 31,945 636,585 615, 755 1 39,1701 [ Page 10 in the original document is intentionally blank ] CHAPTER I. GENERAL 1. FUNCTIONS 2. COMMISSION 3. STAFF ORGANIZATION 4. PERSONNEL 5. APPROPRIATIONS 6. LEGISLATION 7. LITIGATION 8. HEARINGS I. FUNCTIONS The Federal Communications Commission is charged by the Con gress with regulating interstate and foreign communication by means of telegraph and telephone, also broadcast and other radio transmis sion. Its authority is derived from the Communications Act of 1934, as amended. This act created the Commission with broad supervisory powers in the field of electrical communications to the inclusion of certain functions previously exercised by various Government agenCIes. These duties, in general, embrace supervision or common carrier land wire, ocean cable, and radio services; allocation of radio frequencies, and licensing of radio stations and radio operators j encouraging new uses for radio, particularly in promoting safety of life and property on the land, on the sea, and in the air; domestic administration of communication provisions ot treaties and other internationalagree~ ments to which the United States is a party; and, as in the recent war, coordinating the use of these communication media with the national security program. 2. COMMISSION The work of the Commission is directed by seven Commissioners, appointed by the President and subject to confirmation by the Senate, who normally hold office for 7 years. The Commission functions as a nnit, directly supervising all activities, with delegations of responsi bility to boards and committees of Commissioners, individual Com missioners, and the staff. Policy determinations are made by the Com mission as a whole. On December 26,1947, the President appointed Wayne Coy as chair man to complete the term of Charles R. Denny (resigned as of No vember 1, 1947) which expires June 30, 1951. Chairman Coy took office December 29, 1947. Commissioner Robert F. Jones was sworn 11 12 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION in September 5, 1947, for the term expiring June 30, 1954. He suc ceeded Ray C. Wakefield. On May 24,1948, Miss Frieda B. Hennock was named to succeed Clifford J. Durr, who declined reappointment and whose term expired June 30, 1948. Taking office July 6, 1948, Miss Hennock is the first woman to serve as a member of the Commis sion. Her term is until June 30, 1955. 3. STAFF ORGANIZATION There were no major changes in the staff organization of the Com mission during the year. As of May 12, 1948, the nomenclature of administrative elements was changed to conform to the general Gov ernmental pattern, i. e., "Department" became "Bureau," "Section" became "Branch," and "Unit" became "Section." The Commission functions with five bureaus-Engineering, Ac counting, Law, Secretary, and Administration-augmented by a Hear ing Division, a Rules Committee, and an Office of Information. The Bureaus ofEngineerln~,Accounting, and Law are, in effect, broken down into comparable divisions for coordinated operation. Organiza tion of these bureaus is as follows: Bureau of Engineering.-FM Broadcast, Television Broadcast, Standard Broadcast, Common Carrier, Aviation, Radio Operator and Amateur, Marine Radio and Safety, Field Engineering and Monitor ing, Technical Information, Public Safety and Special Services, Lab oratory, and Frequency Allocation and Treaty Divisions. Bureau of Aeeountinll.-Economics and Statistics Division (Com mon Carrier, Broadcast, and Special Studies Branches) ; Broadcast Division (Applications, Renewals and Annual Reports, and Hearings Branches) ; Rates Division (Tariffs and Telephone Rates, and Tele graph Rates Branches) ; Accounting Regulation Division (Develop ment and Compliance, and Original Cost and Depreciation Branches) ; and Field Division. Bureau of Law.-Safety and Special Services Division (Aviation and General Mobile, Marine Operation and Amateur, and Emergency, Experimental and Miscellaneous Branches) ; Broadcast Division (AM, FM, Renewals and Revocations, Transfer, Review, and Motions Branches) ; Litigation and Administration Division (Litigation and Administrative Branches); Common Carrier Division (Rate, Inter national, Domestic Wire, and Domestic Radio Branches). Bwreau of the Seeretary.-License, Service, and Records Divisions, . and Minute and Library Branches. Bureau of Administration.--Budget and Fiscal, Planning, and Per sonnel Divisions. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 13 4. PERSONNEL A total of 1,380 persons were employed by the Commission as of June 30, 1948. Of this number, 907 were in 'Vashington and 473 in the field. The burean figures were: Engineering 734, Accounting 162, Law 105, Secretary 276, and Administrative and miscellaneous 103. 5. APPROPRIATIONS Appropriations received by the Commission for the fiscal year amounted to $6,240,000, of which amount $40,000 was for printing and binding. 6. LEGISLATION There were no additions of substance to the Communications Act during the fiscal year 1948. However, on July 16, 1947, the President signed Public Law 193 (S. 816, 80th Cong., 1st sess.) which repealed the Post Roads Act of 1866, pursuant to which special telegraph rates, as fixed by the Commission, had been accorded the Federal Govern ment on domestic traffic. Public Law 239, Eightieth Congress, first session, "To terminate certain emergency and war powers," was ap proved July 25, 1947. It repealed section 606 (h) of the Communi cations Act; repealed footnote 28 to section 351; and provided that section 353 (b) shonld be repealed as of July 1, 1948. Pnblic Law 772, "To revise, codify, and enact into positive law, title 18 of the United States Code, entitled 'Crimes and Criminal Pro cedure,'" was approved June 25, 1948. In the interest of uniformity in codification, it repealed section 316 of the Communications Act which prohibits the broadcasting of information concerning lotteries and other similar schemes and reenacted the same prohibition, with slight changes in language, for the purpose of codification as section 1304 of title 18 of the Code. Similarly, the last sentence of section 326 of the Communications Act which prohibits the utterance of any ob scene, indecent, or profane language by means of radio communication was repealed and reenacted as section 1464 of title 18 of the Code. In addition, Congress considered numerous proposed bills which would in some way amend the Communications Act or affect the func tions of the Commission. The most important were the White bill (S. 1333) which would revise a major portion of the Communications Act, the Lemke resolution (H. J. Res. 78) which would require the Commission to allocate frequencies in the 50-megacycle band for com mercial FM broadcasting, and the Johnson bilI (S. 2231) which would limit the maximum power of any radio station to 50 kilowatts and also limit the normally protected skywave contour. Hearings were held on these bills and the Commission appeared and presented extensive testimony. Comments were also prepared on other proposed 14 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION legislation which would have a bearing on the Commission's func tions. 7. LITIGATION Any final order of the Commission is subject to judicial review in accordance with the appellate provisions of the Communications Act and the Administrative Procedure Act. Most appeals are in the broadcast field. During the fiscal year, 21 cases involving the Commission went to "Various Federal courts. One was before the Supreme Court, 19 were before the Court of Appeals for the District of Columbia, and 1 was before the United States District Court for the District of Columbia. The Commission's decision was affirmed in the one Supreme Court case. The court of appeals upheld the Commission in 2 cases; re "Versed the Commission in 1 case, 2 were dismissed by agreement of the parties, and 14 were pending at the close of the year. In the district court case, judgment was entered for the Commission. The following cases are of particular interest: Skywave cases.-These eight cases are discnssed as a group since they are all appeals taken by the licensees of class I stations on clear channels who alleged that their stations would suffer daytime skywave interference by reason of the assignment of new stations operating day time only on the same channel. In the first case, it was contended that the Commission's assignment of a daytime station on the channel pres ently assigned to station 'VJR prior to the determination of the clear channel hearing was improper in that it prejudiced V\TJ'R's desire to apply £01' permission to operate with increased power. Oral arguments on three cases were held in which the Commission contended that under its existing Rules and Standards of Good Engineering Practice appel lants were not entitled to protection against daytime skywave inter ference and had not been deprived of a right to hearing contrary to constitutional or any other legal requirements. All of these cases were pending in the United States Court of Appeals for the District of Columbia at the close of the fiscal year 1947: Wilson, Inc. v. Federal Oommunications Oommission, No. 9434, U. S. Ct. of Appeals, D. C.; Oourier Journal & Louis1Jille Times 00., Inc. v. Federal Oommunica NonE OommiBsion, No. 9502, U. S. Ct. of Appeals, D. C.; National Life <.f? Aocident In8wrdnc.e 00. v. Fede1'al Oommunioation8 Oommisljion, Nos. 9510 Ilnd 9511, U. S. Ct. of Appeals, D. C.; WGN, Inc. v. Federal Oommunications Oommission, No. 9497, U. S. Ct. of Appeals, D. C.; Orosley Broadcasting Oorp. v. Federal Oommunication., Oommission, No. 9501, U. S. Ct. of Appeals, D. C.; WJR the Goodwill Station,Ine. v. Federal Oornmunieations Commi"ion, Nos. 949.5 Ilnd 9496, U. S. Ct. of Appeals, D. C. On April 12, 1948, the court issued a decision in L. B. Wilson v. Federal Commwnication8 Comnd88ion, No. 9434, revers- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 15 ing the Commission and remanding the matter for further proceed ings. The seven remaining skywave cases were still pending at the end of fiscal 1948. Hearst Radio, Inc. v. Federal Oommunication.'! Oommission.-This action involved a suit by Hearst Radio, Inc., licensee of radio station WBAL, Baltimore, Md., in the District Court for the District of Columbia for a declaratory judgment to have certain allegedly libelous matter deleted from the Commission's Report of March 7, 1946, entitled "Public Service Responsibility of Broadcast Licensees." Plaintiff re quested a preliminary injunction, pending a determination of this case, prohibiting the Commission from proceeding with the processing of Hearst's application for renewal of 'VBAL's license which had been set for consolidated hearing with a mutually exclusive application for the frequency upon which that station has been licensed to operate. On February 19, 1947, the district court denied the Commission's motion to convene a three-judge court to hear the matter and granted the pre· liminary injunction sought by Hearst. On April 21, 1947, argument was held before the district court on a motion by the Commission to convene a three-judge court to hear the action or, in the alternative, to dismiss the action for want of jurisdiction. On July 3, 1947, the court entered an order granting the Commission's 111otion to dismiss the complaint. A notice of appeal was filed July 11, 1947, and the court of appeals affirmed the decision of the lower court January 12, 1948. Hearst Radio Ino. v. Federal Oommunications Oommission, 167 F. 2d 225. Allen T. Simmo1111 v. Federal Oommunication.'! 00mmi8sion.-This case in the Court of Appeals for the District of Columbia is an appeal from a Commission decision and order which denied the application of Allen T. Simmons to increase power of radio station W ADC, Akron, Ohio, from 5 to 50 kilowatts, and to change operating frequency from 1350 to 1220 kilocycles, and granted the mutually exclusive applica tion of WGAR Broadcasting Co. to increase the power of Station WGAR, Cleveland, from 5 to 50 kilowatts, operating on 1220 kilo cycles. The Commission denied the Simmons' application primarily on the grounds that operating as proposed he would not exercise the responsibility of a licensee in a manner consistent with the require ments of the Communications Act and would not serve the needs and interests of the region to be covered by the proposed station. The court affirmed the Commission's decision. (Allen T. Simmon.'! v. Fed eral Oommunication.'! Oommission, U. S. Ct. of Appeals, D. C., April 28, 1948.) Murray and Meyer Mester v. Federal Oommunication1! Oommis aion.-This case arose upon the application of W odaam Corp., licensee of radio station WOV, New York, N. Y., for permission to transfer control of the corporation to Murray and Meyer Mester. The appli- 16 REPORT OF THE FEDERAL COM.'I1:UNICATIONS COMMISSION cation was designated for hearing to obtain, among other things, "full information with reference to the qualifications of the proposed transferees." Upon the basis of the hearing record, which included evidence that the proposed transferees had been involved in several proceedings by various regnlatory bodies of the Federal Government for violations of Federal law in the conduct of their edible oil busi ness, and which reflected an extreme evasiveness and lack of candor in furnishing requested information, the Commission found that it would not be in the public interest to approve the transfer of control. The proposed transferees appealed to the District Court for the Eastern District of New York and the matter was heard before a special three· judge court as provided in section 402 (a) of the Communications Act. The court granted the Commission's motion for summary judg ment February 4, 1947, in an opinion which held that the Commission was authorized to make a full inquiry into the character of a proposed transferee, including involvement in civil litigation and his disposi tion to be truthful, and to refuse an application for transfer of con· trol if in the light of such inquiry it appears that such transfer would not be in the public interest. (Mester et al. v. United States, 70 F. Supp. 118.) This decision was appealed to the Supreme Court May 27, 1947. That court denied the appellant's motion for rehearing November 10, 1947. (Mester v. Federal Commumications Commission, 332 U. S. 820.) 8. HEARINGS The Commission has little or no control over the number of applica tions that are designated for hearing. Where two or more applicants request the same frequency, or it appears that undue interference would result, or if other serious questions are involved, a hearing is usually necessary before a determination can be made. No applica tion can be denied without the opportunity for a public hearing. As the spectrum becomes more congested, the ratio of applications that require hearing increases. Pursuant to the Administrative Procedure Act, the Commission has since May 28, 1947, maintained a separate Hearing Division with attorneys whose sole duty is to preside at hearings and prepare initial or recommended decisions. Docket statistics for the fiscal year follow: Pending June W, ,9<, Pending July I, '9<7 Designa~dor~ft~~gtr;~1t::1~:f for hearmg hearing hearing -------------1--------,---------- Broadcast services_________________________ 759 623 372 292 7lS Safety and special services______________ 17 29 15 2 29 Common carrier _________________ ._. _______ 26 20 11 14 21 Joint and general dockets__________________ , 3 I 0 3 Totals___________________ ._. _________ 803 675 399 308 771 CHAPTER II. RADIO FREQUENCIES I. RADIO SPECTRUM 2. ALLOCATION OF FREQUENCIES 3. INTERNATIONAL CONFERENCES 4. FREQUENCY CHANGES 5. FREQUENCY ALLOCATION AND TREATY DIVISION 6. INTERDEPARTMENT RADIO ADVISORY COMMITTEE 7. DOMESTIC FREQUENCY ALLOCATIONS AND RULES 8. INTERNATIONAL TREATIES AND AGREEMENTS 1. RADIO SPECTRUM Radio, too, has its housing problem. New developments emphasize the still relatively small part of the electromagnetic spectrum which can presently be used for broadcast, common carrier, and other forms of electrical communication. The lowest frequency now available for radio transmission is 10 kilocycles. This, then, is the bottom of the radio spectrum. Wartime research and developments have raised the usable ceiling to 30,000 megacycles (or 30,000,000 kilocycles). However, the present upper limit for commercial use is around 10,000 megacycles. This top can only be extended when new techniques and equipment are developed. The spectrum below 30 kilocycles is known as the VLF (very-low frequency) range; from 30 to 300 kilocycles, LF (low frequency); from 300 to 3000 kilocycles, MF (medium frequency) ; 3000 to 30,000 kilocycles, HF (high frequency) ; 30,000 kilocycles to 300 megacycles, VHF (very-high frequency) ; 300 to 3000 megacycles, UHF (ultra high frequency); 3000 to 30,000 megacycles, SHF (superhigh fre quency), and 30,000 to 300,000 megacycles, EHF (extremely high frequency) . In a sense, the radio spectrum may be compared to a vertical ruler with fractions of inches marking off, but in irregular fashion, the rela tive positions of the different radio services. That portion of the spectrum between 10 and 550 kilocycles is used largely by radiotele graph stations and stations which serve as radio beacons for aircraft and ships. The section between 550 and 1600 kilocycles is the familiar standard broadcast band. Between 1600 and 25,000 kilocycles are frequencies employed by shortwave broadcast; various special, experi mental and developmental services; long-distance radiotelephone and radiotelegraph communication between various countries, ships at sea, and planes in the air. It is interesting to note that the space oc- 17 18 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION cupied by standard broadcasting is only one thirty-thousandth of the entire known radio spectrum. 2. ALLOCATION OF FREQUENCIES The radio spectrum is one of the world's greatest natnral resources. In order to insure that it will be used in an orderly manner so as to bring the maximum benefits to the greatest number of people, Con gress has provided that in the United States and its territories and possessions no one may transmit interstate radio signals or energy without a Federal authorization. The Federal Communications Com mission is the licensing authority for the nongovernmental radio serv ices. The President, through the Interdepartment Radio Advisory Committee (IRAC), makes frequency assignments to United States Government radio stations. A major task of the Federal Communications Commission is to allo cate bands of frequencies to the various radio services. It would be wasteful and chaotic to attempt to operate a broadcast station on one frequency, a police station on the frequency immediately adjoining, an aircraft station on the frequency next to that, and a ship station on the next one. There must be appropriate bands for each of the twoscore radio services with which the Commission deals, and within these bands assignments are made to individual stations. Thus, there must he separate bands for radio broadcasting, for air craft radio, for ship radio, for police radio, for railroad radio, and other specialized services. Also, there must be bands for radar and other navigation aids. There must be portions of the radio spectrum in which scientific, industrial, and medical equipment Can operate without interfering with communication services. There must be bands for international broadcast and hands for amateurs. The big allocation problem today is that the demand has far out stripped the frequencies available. It is becoming increasingly diffi cult to squeeze new stations into existing bands. This has resulted in strong competition among the various radio services. The problem cannot be solved by creating more frequencies because all usable fre quencies are assigned and most services can't move "upstairs" until new methods and equipment become available. However, much can be done, and is being done, to use the limited available frequencies more effectively. Maximum utilization of the radio spectrum depends upon proper assignment of frequencies and l1pon proper use of the frequencies assigned. This entails propaga tion and other highly technical studies. It may even be necessary in time to nse directional antennas in SOme services besides standard broadcast. Assigning bands of frequencies to the different radio services is not REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 19 only a difficult problem, as far as our own country is concerned, but it is also an international problem. Radio transmissions cross inter national borders and, therefore, there must be coordination and agree ment in their sharing. A foreign passenger plane arriving in this country must be able to talk on the same frequency band that an American carrier plane over Paris uses ror communication. Likewise, British merchant ships cannot employ radar on the bands which the United States uses for television. Just as bands set aside for radio telephone and radiotelegraph must be shared by stations of the United States with other stations throughout the world, so must ship bands, aviation bands, and international broadcasting bands also be used jointly. 3. INTERNATIONAL CONFERENCES The Commission's role in international communication matters is a technical yet increasingly active one. Working through the Depart ment of State, it is called upon to do a large share of the preparatory work for international conferences, to furnish a large proportion of the United States delegates and advisers to these conferences, and to maintain comprehensive records with respect to international treaties and other agreements which affect domestic telecommunications interests. Dnring the fiscal year 1948, the Commission participated in 15 inter national sessions here briefed: International Telecom;mwnication arul Radio Oonference, Atlantic Oity, N. J., May 15 to October 13 19.j.7.-This, the most important session of its kind, harmonized existing world regulations with post war developments. Representatives of 72 countries attended and the Chairman of the Federal Communications Commission presided. The revised agreements on telecommunications, replacing the Madrid Convention of 1932, and those on radio, replacing the Cairo Radio Regnlations of 1938, will become effective J annary 1, 1949, except the allocation of frequencies below 27,500 kilocycles. The latter will not come into force until a date has been determined by a special Admin istrative Radio Conference which will meet to consider a new inter national frequency list being drafted by the Provisional Frequency Board at Geneva. However, all or any portion of the band 150 to 2,850 kilocycles may come into force in region 2, of which the United States is a part, on or after January 1, 1949, under special arrange ments agreed upon by the interested countries in this region. Preliminary NARBA (North Amerioan Regional Broadcasting Agreement) Oonference, Havana, November 1947.-Agreement was reached on many engineering standards and technical definitions pre paratory to the general NARBA conference in Canada in 1949. 20 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION ITU (International Telecommunications Union) Provisional F1'e'f'I-Wncy Board, Geneva, January 1948.-Established by the Atlantic City meeting, this board is drafting a new international freqnency list for submission to a conference March 3, 1949, at Geneva. ITU Planning Oommittee on High-Frequency Broadcasting, Geneva, March to Apru 1948.-Also established by the Atlantic City conferences, this committee drafted an allocation plan for HF broad casting. It will meet in Mexico City October 1, 1948, to consider replies to its proposals prior to the opening of a world-wide conference on October 22 following. Prepamtory Oommittee for the International Administmtive Aero 'nautical Radio Oonference, Geneva, April to May 1948.-Compiling world frequency requirements for the aeronautical mobile services in preparation for the International Administrative Conference. International Admini8tmtive Aeronautical Radio Oonference, Gen eva, May to July 1948.-Studied the technical and operating require ments of aeronautical mobile communications on the basis of Atlantic City allocations. 0011' (International Telegmph 00n8ultative Oommittee), BruB 8e18, May 1948.-A subsidiary of the International Telecommunica tions Union, it considered problems in the fields of telegraphy and facsimile. 00IF (International Telephone 00n8ultative 0 onl/mittee) , Stocl, holm., Jnne 1948.-Also associated with the ITU, this conference issued recommendations regarding international telephone operations. Regional Enropean il/aritime Radio Oonference, Oopenhagen, J1.IhW 1948.-Considered the needs of the maritime services in certain bands between 255 and 525 kilocycles. Safety of Life at Sea, Oommittee of Ewperts, London, Jannary to· Febrna1:J 1948.-Considered coordination of activities in fields of aviation, shipping, and telecommunications respecting both sea and air, reporting to the United Nations and the ensuing Safety of Life at Sea Conference. International Oonference of Safety of Life at Sea, London, April to Jnne 1948.-Revised the 1929 London convention. 10AO (International Civil Aviation Organization).-The Com mission furnished delegates or advisers to the Sonth Atlantic Regional Air Navigation Meeting at Rio de Janeiro in July 1947; the Oarib bean Regional Meeting, Mewico Oity, in September 19.1,7; the Per sonnel Licensinq Division Meeting at Montreal in April 1948; and the European-Mediterranean Regional Air Navigation Meeting at Paris in May 1948. The Commission is also doing preliminary work for 20 other inter-. national conferences and meetings to be held in fiscal 1949 : REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 21 Internationtil Radio Oonsultative Oommittee (OOIR), Stockholm, July 191,8. Second jl,feeting of Planning Oommittee on HF B1'oOOca8ting, Mexico Oity, October 1, 191,8. International Oonference on HF B1'OadcU8ting, Mexico Oity, Octo ber 22,191,8. Special AdminVitrative Radio Conference for Approval of Fre quency List being drafted by Provi8ional Frequency Board, Geneva, jl,farch 3, 191,9. FOZtrtll Inter-American l'elecoflununications Oonference, at a place to be selected in the Americas, March 1949. Oommittee on Revision of Internatio·nal Telegraph Regulations, Geneva, January 191,9. Technical Study Groups of OOIF, The Hague, April 191,9. Joint Oommittee of OOIF and 0011', Paris, May 191,9. International Administrative Telegraph and Telephone Oonference, Paris, May 19.W European Oonference for Study of Band81605 to 2850, 3155 to 31,00, and 3500 to 3900 kilocycles, 0810, June 191,9. OOIF Meeting, Pari", June 191,.9. Third NARBA Oonference, Oanada, September 191,9. At the fiscal year's close, all countries except Cuba had agreed to extend the pres ent agreement 2 years-to March 29, 1951. 10AO Afriea-Sm,th Afdean-Indian Ocean Regional Air Naviga tion Mecting. [0AO India-Southeast Asia Regi01ud AirNavigation Meeting, New Delhi. IOAOMiddle East Regional Air Navigation Meeting. lOA0 South American Regional AirNavigation Meeting. 10AO South Atlantic Regional Air Navigation Meeting. ICAO South Pacific Regional AirNavigationMeeting. IOAO Oommunications Division Meeting, Montreal. IOAO Search and Rescue Division Meet-ing, Montreal. 4. FREQUENCY CHANGES The fiscal year 1948 was a transition year for international com· munications matters. It was marked by efforts on the part of the United States Government and domestic industry to prepare for the programs adopted at the Atlantic City sessions. Finalizing the Atlantic City agreements will involve years of prep aration, various other conferences, and extensive adjustments in the use of the radio spectrum. Howeyer, the past year saw decision in numerous instances wllere service-allocation of radio frequencies was under review. 22 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The original proposal of the Radio Technical Connnittee for Aero nautics for more space in the vicinity of 1,000 megacycles for the aero'nautical radionavigation service was adopted substantially by the ITU internationally and by the Commission and the IRAC in the United States. This new allocation preceded the program of installation of a new system of aids to air navigation and traffic con trol. This would not have been possible without the required spec trum space being Obtained at the expense of other radio services. The deletion of television channel No.1 (see "Television") resulted in that space, 44 to 50 megacycles, going to non-Government fixed and mobile services. This move prompted proposed reallocation of the mabile band 152 to 162 megacycles to implement the new maritime telephone frequency, suballocation of the bands 25 to 30, 450 to 460, 940 to 952, 9,800 to 10,000 megacycles, and proposal that the new fixed band 72 to 76 megacycles be used subject to no interference to tele vision reception. The problem of securing frequencies to satisfy the short-wave broadcasting requirements of even the principal nations, which was already serious 10 ycars ago, has increased both in magnitude and complexity. Before the war less than 20 countries were engaged in \nternational broadcasting. Today 77 nations are either actively engaged in high-frequency broadcasting or have indicated intentiom to enter this field. At Atlantic City it was recognized that if high-frequency broad casting were to continue, the frequencies would have to be assigned in accordance with a plan which would be acceptable to a majority of the countries. The need for international frequency sharing was l1nanimonsly agreed upon, as well as the need for the adoption of sound engineering and other techical standards governing the opera tion of HF broadcasting. Although it may not appear on the surface that the international short-wave broadcasting haa any appreciable effect on other services operating between 3 and 35 megacycles, the world situation in this field is such that today many. frequencies assigned to services other than broadcasting in this region of the spectrum are constantly being subject to interference from foreign broadcasts. If this practice con tinues, it cotlld prove dangerous to essential communications involv ing safety of life, such as aviation. The most feasible solution is world-wide planning of broadcasting between 3 and 30 megacycles. The United States will be expected to playa leading role at the Mexico City High Frequency Broadcasting Conference. The United States has been the principal exponent of frequency assignments on a planned basis. The International Frequency Registration Baard, which was established to succeed the Berne Frequency List, is a United REPORT OF 1'HE FEDERAL COMMUNICATIONS COMMISSION 23 States idea. The Provisional Frequency Board, which is making the new frequency assignment plan for the radio spectrum, is a United States idea. The various specialized groups and conferences con cerned with frequency assignments on an international basis, such as Maritime, Aeronautical and High Frequency Broadcasting Con ferences, were all suggested by the United States delegations at Atlantic City. The United States has consistently maintained that an HF broad casting assignment plan could bc developed on a technical basis, that a set of engineering principles could be established and adhered to by a majority of the countries of the world, that frequency sharing could be accomplished both on a timesharing and geographical basis, and that, in short, in this way it is possible to bring order out of the ,chaos now existing in the high-frequency bands. 5. FREQUENCY ALLOCATION AND TREATY DIVISION Itis not possible to centralize in one organizational unit all the inter national functions of the Commission. Therefore, personnel in vari ous units perform such tasks as are adjunct to their duties in such fields as marine, aeronautical, common carrier, broadcastipg, etc. However, coordination is achieved through a Frequency Allocation and Treaty Division, established November 3, 1947. This division is responsible for continuously studying the use and allocation requirements of various radio services, mailltaining the lnaster record of all Government and non-Government fl'equeney assignments within the United States, generally coordinating the Commission's ,york in connection with international conferences, and maintaining records regarding such conferences and treaties. The division is Commission contact with t.he International Tele communications Union and represents the Commission all the Inter department Radio Advisory Committee, Interdepartmental Commit tee on Scientific and Cultuml Cooperation, Telecommunications Co ordinating Committee, Joint Avia60n Telecommunications Coordinat ing Committee, 'V3shingtoll Provisional Frequency Board Liaison 'Committee, and the InternationalMet~orologicalOrganization. It furnishes the entire secretariat for the IRAC and the WPFBLC. 6. INTERDEPARTMENT RADIO ADVISORY COMMITTEE The IRAC, representing various Government departments and agencies, authorized it record nlllllbcl' of frequency as..<;ignmcnts to Government radio stations. It processed 11,471 requests, of whieh number 3,988 WC1'e regular ass1gmnents, 1,533 were deletions of regular assibYIlments, 1:31 were changes in assignments, 3,822 were tenlporary 813501--49-----3 24 REPORT OF THE FEDERAL COMMUNICATIONS CO;\L,lISSION assignments, 2,089 were deletions of temporary assignmellts,and. -lOR were telephone approvals. 7. DOMESTIC FREQUENCY ALLOCATIONS AND RULES On June 11, 1948, the Commission proposed amending part 2 of its General Rules and Regulations in eonformity with the Atlantic City radio regulations and existing treaties and conventions, to define all currently recognized radio services and stations, und to list all domestic frequency allocations between 25 megacycles and 30,000 megacycles. 8. INTERNATIONAL TREATIES AND AGREEMENTS In addition to the Atlantic City agreements, the United States is signatory to the following major treaties and conventiolls which are still in effect: Safety of Life at Sea Convention, London, 1929; Inter llational Communications Convention, Madrid, 11m2; General Radio Regulations, Cairo, 1938; North Amcl'ieall Regional Broadcasting Agreement, J!avana, 1987; Radiocommunications Agreement, San tiago, 1940; lind the Interim Agreement (Modus Vivendi), \VlIshing toil, 1946. In addition, this country has regional arrangements ,vith Canada and Mexico with respect to broudcasting and aeronautical and maritime radio communication. New agreements with Canada cover FM and tclevision broadcast assignmcnts in both countries to prevent mutual interferencc, as all"9ady in effect with respect to standard broadcasting. .A more detailell listing' will be fOllnd inth~ appendix to this report. CHAPTER III. RADIO BROADCAST SERVICES I. GENERAL 2. STANDARD (AM) BROADCAST SERVICE 3. FREQUENCY MODULATION (FM) BROADCAST SERVICE 4. TELEVISION (TV) BROADCAST SERVICE 5. NONCOMMERCIAL EDUCATIONAL BROADCAST SERVICE 6. INTERNATIONAL BROADCAST SERVICE 7. FACSIMILE BROADCAST SERVICE 8. REMOTE PICK-UP BROADCAST SERVICE 9. ST (STUDIO-TRANSMITTER) BROADCAST SERVICE 10. DEVELOPMENTAL BROADCAST SERVICE 11. BROADCAST STATISTICS I. GENERAL BROADCAST REGULATION Commission rt>gu]atioll of broadcasting may be divided into two broad phases. The first of these deals with the allocation of spectrum space to the different kinds of broadcast services in accordance with interna tional agreement, and the formulation of policies and promulgation of rules to carry out the intent of such treaties and the Communica tions Act. The lattcr function iucludes thc establishment of engineer ing standards and regulations covcring technical aspects of construc tion and operation. The second phase is concerned more directly with individual sta-" tioHS, and emlll'llCes eOllsiderHtioll of applications to build and oper ate; the asignment of specific frequencies, power, time of operation, ami call letters; the periodical inspection of equipment and the tech nical aspects of operation; passing upon tl'ansfers and assignments of facilities, also the mnny wried changes in existing authorizations; modifying and renewing construction permits and licenses; reviewing the past general~erviceof eal...'h particular broadcaster to determine whether it ha, Leen in the public interest; licensing radio operators; and otherwise discharging domestic regulatory responsibilities. Ne\v station authorizations are also subject to Civil Aeronautics Admillistrution approval of proposed transmitter sites and antenna systems to guard against interference to air navigation. There is collaboration with other governmental agencies, both federal and state, where their jurisdictions are involved. Broadcast stations are not common carriers under the Commnni cations Act. Consequently, the Commission is not empowered to pass upon charges for the use of time at' for advertising, nor is it concerned 25 AM.~.. __ . _ FM. .... 'l'V~_ 26 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION with matters of internal management., Since the Commission is charged by the act to grant renewals of licenses only if it determines that service is in the public interest, it is incumbent upon the Com mission to inquire into the over-all past operation of stations in reach ing such determination. This is done by inquiry, investigaton, or formal hearing. POSTWAR GROWTH OF BROADCASTING The postwar growth of broadcasting is revealed in the fact that the total number of authorized AM (amplitude modulation), FM (frequency modulation) and TV (television) stations has more than tripled in the last 3 years. Figures on the number of stations licensed or initially authorized at the close of each of the past 6 fiscal years were: ____________I_l_.._3_~~~~I~ 912 924 965 1,215 1,795 2,034 48 52 53 511 918 1,020 8 9 9 30 66 100 TotaL . __ • • _ 968 96' 1,017 1,756 2,779 3,163 At the close of fi8cal1948 nearly 4,000 stations in 10 categories were authorized in connection with broadcast services (see detailed table ~ltthe conclusion of this chapter). This was an increase of lllOre than 400 over the previous year. l\1ost of this galll was in the major services-AM, 239; Fill, 102; and TV, 43. This net gain was in spite of the fact that 47 AM and SO FM stations and 1 TV station were deleted. BROADCAST APPLICATIONS During fiscal1D48 the Commission received a total of 7,700 broadcast applications, au increase of 2,:364 over the previous year. TheHe cov ered requests fo1' new stations, changes in facilities, licenses, renewals, transfers, modifications, etc. The year closed with 2,:>:>5 such applica tions pending as against 2,209 on June 30, 1947. Assignment and transfer applications r08e to 425, which is abont 230-percent increase over the previous year. It is expected that this trend will continue because of the lack of additional freqnencies for new installations. (See table at the conclusion of this chapter.) The majority of applications involved AM, 4,033. The FM total was 2,343. The last half of the year saw a rapid rise in the number of television applications and a leveling off of FM reCluests. Appli cations for new TV stations almost equaled the number of those for new AM facilities; FM seekers were less than half the TV number. REPOR~'OF THE FEDERAL COMMUNICATIONS COMMISSION 27 BROADCAST HEARINGS Most of the Commission's hearing work (see Hearings, ch. 1) IS III bro"dcast matters-l"rgely on AM applications. In the 27 months between the close of the war and Jannary 1, 1948, the Commission au· thorized 1,054 new AM stations. Out of 1,022 of these cases, 162 or 15.9 percent were granted after hearing. Fifty-fonr new AM stations were granted in fiscal 1948 as the result of hearing, and 285 without hearing. From VJ -day to ,Tune 30, 1948, a total of 1,061 FM authorizations were made. Because of the newness of this service, the generalavail~ ability of freqnencijiS and lack of interference problems usually asSO ciated with AM applications, only 80 or 7.5 percent required hear ing. In the p"st fiscal year, 28 new FM stations ,,-ere granted after hearing, and 182 without hearing. Docket statistics involving all types of broadcast cases during fisc"l 1948 follow: Pending July 1, 1947 Designawd Disposed for of without hearing hearing Disposed of fol lowing hearing Pending June 30, 1948 AM________________________ -"------------ 650 364 313 228 473 F~:L__________ 98 45 32 58 53 TV 3 210 2J 4 188 Other ._------.-----. ---"----_._--- 8 4 6 2 • Total_______________________ 759 621 372 I 292 718 At the close of fiscal 1948, a total of 881 applications for new or changed AM stations were pending, of which number 401 (or 45.5 percent) were awaiting hearing. At the same time, pending FJ\I applications of this natnre aggreg"ted 193, of which number 43 (or 23.3 percent) were in he"ring. Like television applications amounted to 313, with 182 (or 57.8 percent) designated for hearing. MULTIPLE OWNERSHIP No change was made during the fiscal year in the existing rules which prohibit ownership operation of more than one AM, FM, or TV broadcast station in the BiUne area, or more than six Fl\I stations or five TV stations throughout the country as a whole. There was no over-all limitation on the number of standard broadcast stations. However, the Commission was considering substantive changes. (See Subsequent Developments.) BROADCAST EDITORIALIZING The Commission, in March and April of 1948, conducted an en bane hearing in the matter of editorializing by broadcast stations. It was held to determine "whether the expression of editorial opinions by 28 REPORT OF THE FEDERAL COMMUKICATIOKS CO;VIMISSION broadcast station licensceti OIl matters of public interest and contro versy is consistent with obligations to operate their stations in the public interest," also "the relationship between any such editorial expression and the affirmative obligation of the licensee to insure that a fair and equal presentation of all sides of controversial issues is made over their facilities." The hearing was ordered by the Commission on September 5, 1947, in view of "widespread discussion of the exact meaning" of its opinion of January 16, 1941, in the Mayflower Broad casting Corp. case; "its application to particular situations, and the desirability 01' undesirability of having a general policy concerning editorializing by broadcast stations." Hearing was scheduled for November 1. POLITICAL BROADCASTS The legislative history of section 315 of the Communications Act "makes it abundantly clear that Congress did not intend licensees to have any right of censorship oyer political broadcasts," declared the Commission in a decision of June 28,1948, relating to the Port Huron Broadcasting Co. nVHLS, Port Huron, Mich.) The particular sec tion of that act reads: If anr HCf'llSee l-lhall permit any pen-Ion who if; a legally qualified {'aIH]idate for any puhlic oftice to use a bl'oadcnsting station, he shall nfford equal opportunities to all other snch candidates for that office in the use of such broadcasting station, and the Commission shall make rules and regulations to carry this provision into effect: ProD-ided, That such licensee shall have no power of censorship over the material broadcast nnder the provisions of this section. No obligation is hereby imposed upon any licensee to allow the use of its fitation by any such candidate. The Commission stated that this particular censorship prohibition by Congress "appears clearly to constitute an occupation of the field by Federal authority which, nnder the law, would reI ieve the licensee (but not the actual speakcr) for any libelous matter broadcast in the course of a speech coming within section :H:") il'respectlye of the pro visions of State law." LOTTERIES In the fall of 1947 the Commission ordered an individnal station licensee to show cause why a certain program, which appeared to con tain elements of prize and chance, did Hot constitute a violation of then section 316 of the Commnnications Act which prohibits the broadcast of any advertisement or information concerning any lottery or gift enterprise. Headng was held in November 1947 -and decision was pending at the close of the year. (See Legislation and Subseqnent Developments.) OTHER BROADCAST POLICY CONSIDERATIONS Information that several broadcast stations had contracted for the sale of time to advertising agencies, which in turn marketed this time REPORT OF THE FEDEHALCOM~IUNICATIONSCOMMISSION 29 to sponsors who arrHnged their programs, caused the C01l11nission on August 11, 1947, to point out that the act holds the licensee responsible for the management and operation of his station and he cannot dele gate that responsibility to another by contract or otherwise. Observing that a number of transfers of station control had been consummated prior to obtaining Commission consent, the Commis sion on May 7, 1948, reminded licensees and permittees that a transfer cannot legally take place until after the Commission has given its approval. On February :l0,194~,the COlllmission proposed rules (docket 8747) which would require the main studios of AM and FM stations to be located in the city for which the station is licensed. Oral argu lllent on request of interested parties ,vas scheduled for October 1948. NETWORKS The Commission dO'es not license networks as sueh, but issues licenses to individual stations. However, stations owned or affiliated with networks are subject to the cbain broadcasting regulations pro mulgated by the Commission in 1940. The close of fiscal 1948 saw 1,10:; AM stations affiliated with the 4 major networks as follows: American Broadcasting Co., 262; Co lumbia Broadcasting System, 172; Mutual Broadcasting System, 506, and National Broadcasting Co., 165. The number of stations wholly owned by these networks remained unchanged-ABC, 5; CBS, 7; MBS, 0; and NBC, 6-a total of 18. There were more than a score of regional AM networks, and FM and TV networks were developing. BROADCAST STATION CONSTRUCTION COSTS Esthuates given on applications for new commercial broadcast sta tions indicate ayerage current construction costs as follows: Standard and FM broadeast, each around $50,000, including land and build ings; and television, $200,000, exclusive of land and buildings. For both FM and TV stations, however, the cost range varies widely, de pending upon whether metropolitan or community service is pro posed, whether the stations win be built as adjuncts to AM stations, as well as n number of other fnetors. On November 4, 1947, the Commission made available its Eco nomic Study of Standard lhoadeasting which indicated the rapid growth in the number of AM stations since the war and analyzed certa.in significant factors that might affect the future economic health of the industry. It was too early in the development of FM and TV to warrant similar studies in those fields. GROUP INTERESTS IN BROADCASTING Inereasing interest in broadcast operation by religious, labor, and amusement groups was noted during the year. Various denomina- 30 REPORT OF THE FEDERAL COMMUNICATIOKS COMMISSION tional churches, seho'ols, and other institutions had acquired or were seeking AM and FM stations in many sections of the country. Labor groups were holders of or applicants for AM and FM grants in New York, Boston, Philadelphia, Cleveland, Detroit, Chicago, Los Angeles, and Chattanooga.~lotioll-pictureand theater concerns evinced par ticular interest in television. Newspaper ownership or alliliation, as of January 1, 1948, was in dicated in 444 out of 1,887 AM authorizations; 331 out of 1,010 FM authorizatidns, and 24 Ollt of 73 TV authorizations. RECEIVING SETS The Commission does not licellHe broadcast l'oceivel's. From 60,000 sets in 1922, the total was nearing 75,000,000. Over 94 percent (about 37,000,000) of the families of the United States arc said to possess receivers. It is estimated that an average of 30;000,000 individuals Hsten to radio sometime during each day and that the a,-el'age uaily listening per family is in excess of 4 hours. Production ofF~land TV receivers was increasing. Of nearly 8,500,000 receivers the industryrl:~porte(lhaving manufactured in the first 6 months of the calendar year 1948, a total of 770,000 were capable of reeeiving FM, and nearly3~5,OOOothers were for TV reception. 'l'he figures for 1947 (12 months) were 1,175,104 Fl\I and 178,571 TV sets out of a total of 14,666,040 of all types. l\Iany of the new TY sets contain Fl\I or AM bands, or both. 2. STANDARD (AM) BROADCAST SERVICE GENERAL The demand for sta.ndard broadcast facilities continued during the fiscal year, bnt abated somewhat from its peak in early 1947. From an engineering viewpoint, (lesil':lble AAI facilities are becoming' scarcer, with unlimited time facilities practically nonexistent, and daytime only facilities extremely hard to find in the more heavily populated areas of the country. However, the nnmber of AM stations increased 239 during the 12 month period, bringing thei.r total as of Jmwc :10, 1948, to 2,034.~lost of the 4,033 AM ajlpJications receiYed illYOlved changes in facilities, licenses and renewals, transfers, de. As of January 1, 1948,13~~communities had 4 or moreA~I;;;tations. DEVELOPMENTS Probably the most important deyelopments in the standard broad cast field during the past yenr are associated with the clear channel "noeation problem and the North American Regional Broadcasting Agreement. REPORT OF THE FEDERAL COM:YlUNICATIONS COMMISSION 31 The record in the long-standing clear-channel proceeding (docket (741), begnn in c"rIy 1946, was completed in October 1947. Subse quent to the adjournment of the cle"r-channel hearing on Oetober 31 of that year, the matter was consolidated with docket 8:Jilil which deals with the related problem of daytime skywave translulssion. Oral argu ments in both dockets werc held before the Commission .January 19 to 21, 1948. CLEAR CHANNELS 'rhe clear-channel principal has been inherent in the American system of broadcasting from its early beginnings. It concerns a limited number of the standard broadcast channels set ap.art for the operation of high-po\yered stations with extensiYe arcus protected against intel' ference. Of the 106 available AM channels, 59 have been set apart for clear channel broadc"sting in North America. A high degree of protection is afforded the United States on 46 of them, with priority for protection on the remaining 13 going to other Korth American countries. This allocation praetice has been heretofore justified as a meaus of provid ing broadcast service to widespread sparsely populated rural areas. Of the 46 cJear channels used in this country, 24 are each occupied by only one statioll at night, with all foreign assignments so restricted that the interfering signal at the border docs not exceed an objection able level. The other 22 clear ehannels may have several stations op erating at night with less extensive protected areas. Exclusive nighttime operation versus slmred nighttime operation has long been a subject of spirited controversy among and between broadc.asting groups, and it is this issue around which all other issues in the clear channel proceedings revolve. Sixteen of the 24 domestic. stations with exclusive night operation have formed an association which strongly advocates Commissiollrules that would permit exclusive night opemtion with power of 750 kilo watts as a means of providing a reasonably s"tisfactory broadcast service to 22,000,000 rumllisteners. On the other hand, an associ"tion of regional stations spearheads a group contending that the present power limitation of 50 kilowatts should be retained and protection on the 24 exclusive channels should be reJ"xed so as to permit operation at night by more than one station. The consolidated dockets now contain approximately 6,700 pages of testimony, 421 exhibits and voJuminous briefs. The Commission had hoped to reach a decision which could be reflected in United States proposals for a new North American Regional Broadcasting Agree· ment. Shortly after the close of argumeuts in J "nuary of 1948, the United States Senate Interstate and Foreign Commerce Committee commenced consideration of the Johnson bill (S. 2231) which 1'1'0- 32 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION posed to keep the power of standard broadeast stations to the 50-kilo watt maximum and provide for duplication of clear channels. Inas much as the question of power limitation is one of the basic issues in the clear-channel proceeding, the committee requested the Commission to withhold decision pending disposition of the bill. The Commission felt that decision in the clear-channel matter is a necessary preliminary to formulating proposals for a 11e,,, North American Regional Broadcasting Agreement and, therefore, in the early part of 1948 requested the Department of State to propose post ponement of the scheduled Canadian conference for at least 1 year and to extend the present NARBA for 18 months. At about the same time Mexico proposed a I-year postponement of the conference and a 2-year extension of the a.greement. As a result all signatory countries have agreed to delay the conference until September 1949, and at the close of the fiscal year all exeept Cuba had agreed to extension of the existing agreement until March 29, 1951. A record of the testimony and other data considered by the Senate committee in connection with the Johnson bill comprises a 1,586-page document. Although this bill was not aeted upon by the Eightieth Congress, controversy over the power question continues. The Com mission feels that a decision before the 1949 NARnA conference is imperative. 540 KILOCYCLES One additional repercussion from the postponement of the NARBA session concerns the use of 540-kiloeycle frequency for standard broad casting. The AM broadeast band presently employed in the United States is 550 to 1600 kilocycles. Subject to regional agreement on the details of its use, 540 kiloeycles was made available for broadcast ing in the North Ameriean Region at the 1947 Atlantic City radio and telecommunications conferences. The Department of State and the Commission feel that the addition of 540 kiloeycles to the United States broadcast band must neeessarily be delayed until agreement is reached with the other countries of North America. Accordingly, no plans for its domestic use have yet been adopted. Mexico,. however, has seen fit to make an assignment on 540 kilocycles which would severely curtail any possible use of that frequency by United States stations. The assignment has been pro tested by the United States Department of State. SPECIAL TEMPORARY AUTHORIZATIONS The general trend of AM stations to use special temporary authori zations to operate beyond the hours for which they are licensed caused the Commission, on June 27, 1948, to abolish such authorizations, he ginning August 1G following. This decision was the result of rule- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 33 making proceedings. There was eTidence that special temporary authorizations to daytime or limited time stations had been used to such a degree that night service by full-time stations was suffering considerable degradation. SMALL LOCAL OUTLETS EXPAND One significant aspect of the postwar expansion of radio stations has been the extension of standard broadcast facilities into small- and medium-sized communities. The table below shows the number and percent of communities of specified population size having one or more authorized AM radio stations as of October 8, 1945, and as of June 30, 1948 : Population size Total I~uruberand percent of total communities with Dumber of lor more authorized radio stations communi- ties in the United On Oct. 8, 1945 On June 30, 1948 t States (1940 census) I Number Percent Number Percent 2,500 to 5,000 1,134 27 2.4 , 208 18.3 5,000 to 10,00(L 678 86 12.7 300 45.1 10,000 to 25,000._ ---------_..- 413 204 49.5 342 82.8 25,000 to 5O,OO(L_ 122 109 89. a 122 100.0 Over 50,O(XL ________ . Hil Hil 100.0 140 100.0 TotaL. ----------_ ... - 2,487 "'" 22.81 1,118 40 I The number of communities in each of the population groupings under 50,000 is derived from 1940 census data, excluding communities forminl'; part of metropolitan districts. Each metropolitan district is counted as a single-radio community for purposes of tbis tabulation. A metropolitan district is defined as including a central city or cities with a population of 60,000 or more and the contiguous areas having a population of 150 or more persons per square mile. J Includes 46 communities with FM stations only; all other communities have 1 or more AM stations. • Includes 59 communities of less than 2,500 population in 1940. STANDARD BROADCAST FINANCIAL DATA The following table shows comparative financial data for the standard broadcast networks and stations in the calendar years 1946 and 1947: Networks and standard stations Investment in tangible hroadcast propl.'rty: Cost to H'spondenL __ . . _ Depreciation to date under pf('scnt owner _ Depreciated cest. _ Revenues from sale of network time _ Revenues from sale of nOllllctwork timc _ Commission paid representativl."-S, etc. _ Revenues from sale of talent, etc _ Total broadcastrcvenues__ _ _ Total broadcast cxpcnses_ _ _ Broadcast income . 1946, 8 n't'j 1947, 7 net- Percent works! 1,025 works, 1,464 increase or statlOns stations (decrease) $107,790,819 $129,497,615 20.14 51,365,253 46,371,185 (9.72) 00,425,566 83, 126,4~~047.32 134,781, 108 J34, 726, 631 (.04) 199.297,806 239,360,055 20.10 45,469,650 47,969,521 5.60 ::t.'l, 94.1, 507 37,597,222 10.76 322, 552, 771 363,714,387 12.76 ~,525291, 918, 447 18.62 76,466,246 (6.11) 34 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The following table compares the 1946-47 broadcast revenues, ex penses, and income of the four Nation-wide networks and their key stations: :Four Nation-wide networks and their key stations 1946 1947 PCfoont increase or (deerease) Number of key stations__ 'Total broadcast revenues _ 'Total broudcast expenses . _ Broadcast income {b{'fore Federal income taxes) . _ 10 $R6, 494, 1;99 71,708,921 14,785,678 $91, 232,7~11-------i-48 75, 091, 412 "I 4.72 16,141,306, 9.17 The distribution of the 1947 broadcast revenues and broadcast in come (before the Federal income taxes) as between networks and stations is shown in the following tables: Distribution at total broadcast revenues, 1947 Ammillt Percent of total Amount Perel'Dt $104, 407, 721 28.7 Networks, inclUding 27 owned and operated stations _ Networks and their 11 key stations___ $92,670,766 25.5 , 16 other network owned and operated stations__ .___ 11,736, 95t:i 3.2 1.437 other stations ._ ..___ __ ___ _ _ _ _ 971 stations serving as network outlets ___ _ 208,496, 683 57.3 466 stations not serving as network outlets_ 50,810, 983.~.=-14".°::- 1 -,,_,,-,=--,,--.=---,,-.=---::.:c-I ,,__.=-_,,__.=-__,,_.::__ 'l'otal broadcast revenues.. . __ . _. _ 363, 714,387 100.0 DistributIon of broadcast income (before Federal income fa.xes) Amount Percent of total Amount Percent ----------------------1----------- $19,573,573 27.3 22.6 _ 4.7 __ '--52)22:367 72.7 ----·67.-i- . . _ 5.6 . _ Networks, including 27 owned and operated statlom . _ Networks and their II keysta.tions $16,244,688 16 other network owned and operated stl!.tioDs ._ 3,328,885 1,437 other stations. . . _ 971 stations serving as network outlets.. __ . 48,194,654 466 stations not serving as netwOTk outlets_. 4,-027,713 Total broadcast income (before Federal income ta'{(-'-s) . . . _ 71,795,940 100.0 Because of the substantial number of new stations in their early and less profitable months of operation included in 1947, trends in the data given above may not correspond to the experience of "old" stations. For this reason, comparative data for the 2 years are pre sented below for identical stations, i. e., for stations which were in operation in both years and which did not change their status during the period with respect to class, time, and wbether or not affiliated with a network. The data are shown in terms of averages per station of broadcast revenues, expenses and income for each class of station, excluding the· Nation-wide networks and their 11 key stat.ions. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 35 Standard broadcast stations (excluding 11k(1~'stations of II Xation-wide networks) Averages per station: '.•••••••• 1,1' Clear channel 50-kilowatts unlimited: Number of stati0I1S,41 Total broadcust revenues. . __ Total broadcast expenscs _ clea~~h=I~~~{l~l~;aiis·part-Linie: --- -- -- ---I Number of stations, 3 Total broadcast revcnues _ 'fotal broadcast cxp('nses. _ Broadcast income CIMr channel 5- to 2U-kilowatts: Number of statlons, I 26 Totalbroadca,~trevenues. . '1'otal broadcast expenses . _ Droadca.'lt income.. _ Rrgional unlimited: Number of stations, 274 Total broadcast rC\'Cnm'IL __ Total broadcast expl.1nses _ Broadcast income _ Hegional part-tim(1· Numbcr of stat.ions, 48 Total broadcast revcntws __ . __ . _"~_ Total broadcast expe-nses _ Broadcflst incomc __ Local unlimited: Number of sl.:ltions, 408 'rotal broadcast revenues _ Total broadcast expcnscs _ Broadcast incomfL . . Local part-timc; Number of stations, 12 Total broadcast revenues. 'rotal broadcast cxpenses_ Broadcast incoillc. __ All stations: i'-ruTllber of sIal,ions, !H2 Total Ilroadcflst rCVCIlll('S_ Totalhr(lutlcfl~t('XPCllSCS _ Broadcast ineome__ . _ Percent In- 1946 1947 crcase or (decrease) $1,225,807 $1,261,878 2.94 $829,767 $894,367 7.79 $.396,040 $367,511 (7.20) $%4,239 $1,G92, 125 9.8.') $7i2,491 $821, III 6,29 ~221,748 $271,014 22.22 $<144,939 $1\01,004 12.60 $374,025 $417, ISS 11.54 $70,914 $83,819 18.20 $345, 986 $359, 5961 3. 93 $246,975 $267.019 8.12 $99,011 $92,677 (6.50) $170,276 $177,845 4.4:5 $139,426 $148,144 fl.25 $30,800 $29,70l (3.72) $113,561 $122,113 7.54 $.'\6, l'8\? $98,408 13.26 $26,662 $23, i05 (11.09) $l\R,305 $79.649 16.61 $53,421 $60,7i2 13.76 $14,884 $18,877 26.83 $264,694 $278,181 5.10 $19~~.7f.O$210,755 9.34 $71,938 $67,426 (6.27) I Includes 1 part-time station. NOTE.-All broadcast income is before Ff'dcml in{'omf" taxes, 3. FREQUENCY MODULATION (FM) BROADCAST SERVICE PM CONTINUES TO GROW Frequency modulation (FlII) broadcasting continued to expand and furnished a considerable portion of the program service available to the public. This static-free and high-fidelity type of broadcast can now be heard in most of the populous areas of the country. During the year the number of commercial FM stations on the air increased nearly 2Y2 times-jumping from 2;)8 to 587-and at its close severalllllndred other F1vI stations were in yarious stages of construc tion. The number of authorized stations rose from 918 to 1,020. Either figure exceeds the total of all AlII stations before the war. The FlII band (for commercial and educational broadcast) consists of 100 channels, 200 kilocycles wide, occupying that portion of the radio spectrum from 88 to 108 megacycles. FM APPLICATIONS The rate of filing applications for new FlII stations decreased from the peak reached shortly after the war, and the year closed with 90 applications pending. 36 REPORT OF THE FEDERAL C01L'VLUNICATIONS COMMISSION Initially, the majority of FM applications were from urban places, particularly large cities where the demand for facilities exceeded the number of frequencies available. In most areas of the country, though, the number of FM channels is adequate. This has resulted in some potential FM broadcasters preferring to wait until FM receivers are more widely distributed. However, a number of new FM stations are being established to serve areas largely rural in character. NETWORK OPERATION As far as FM network operation is concerneu, the Commission be lieves that, in general, common carrier facilities-telephone or micro wave-will be used for this purpose. On May 6, 1948, it proposed to permit intercity relay of FM programs on frequencies allocated for FM studio-link-transmitter purposes (940 to 952 megacycles). At the same time, it pointed out that there is nothing in its rules to prevent FM stations from rebroadcasting the programs of other FM stations, as is being done in some regions. In 1948 most FM network broad casting was over 5,000-cycle wire lines used for AM network operation. Telephone rates for 15,000-cycle intercity FM transmission became effective February 18, 1948. Such relay is possible over three types of wire circuits, including coa"ial cable. About half a dozen regional FM networks were operating or pro posed. AM DUPLICATION OVER PM STATIONS Of importance to the development and public acceptance of FM broadcasting was the agreement reached in .January 1948, between standard broadcast networks and the musicians, under which AM musical programs may be duplicated over FM stations without extra cost or additional programming personnel. As a result, listeners found many of their favorite programs on FM for the first time. FM stations associated with AM stations may be separately programmed or not, or in any combination of hours, as desired by the licensees. Of the 1,020 FM authorizations, approximately 800 were held by AM licensees or permittees. PM LICENSE PERIOD INCREASED Effective May 1, 1948, the Commission extended the normal license period of FM stations (both commercial and noncommercial) to 3 years after an initial system of expiration dates to fit a staggered schedule for renewal of licenses. The previous FM licensing period was 1 year. This not only recognized the stature of FM but helped to reduce the Commission's work load. FM CONSTRUCTION The Commission continued its policy of encouraging FM stations to start operation with interim equipment pending completion of full REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 37 construction. This was done to foster the expansion of FM and permit FM broadcasters to begin programming while awaiting the delivery of higher-powered equipment. In consequence, about half of the FM stations on the air were using less than their full authorized power. In some cuses perlnittees have been dilatory in constructing stations. The Commission has granted them extensions of time on the condition that construction be completed or interim operation commenced within the additional time authorized. A few construction permits were SUl' rendered as a result of this requirement. Some pcrmits have been relinquished because of increased construction costs and limited initial revenue in a new service. The production of FM transmitters, antennas, and associated equip ment increased rapidly during the year. At its close, almost any equip ment desired was available from stock or on short notice. FM trans mitters are usually built in units so that higher-powered amplifiers may be added as desired or as they become available. As of June 1948, the practice of making FM conditional grants pre· liminary to issuing construction permits was abandoned because proc eH~ingprocedure and other considerations no longer made this tempo rary expediency necessary. FM RECEIVERS Approximately 2,000,000 FM receivers were estimated to be in use as of July 1, 1945. They were becoming available in quantity in practically all price "anges. In addition, numerous tuners could be had at reasonable prices for adapting AM receivers to FM reception. The year saw the appearance of table-model combination AM-FM receivers selling for $50 or'less. While receivers in this price range do not provide the tonal quality found in more expensive console models, they do furnish FM reception that is comparatively free from static and other interference. 4. TELEVISION (TV) BROADCAST SERVICE SURGE IN TELEVISION APPLICATIONS AND SERVICE As a result of television l'eCeiVCl'R, transmitters, cameras, and other associated equipment becoming plentiful, and the increased public interest in visual radio, there was an unprecedented surge in the Jlumber of applications for new TV stations. At the end of the year 7 TV stations were licensed, 102 construction permits outstanding, and 294 applications pending. In addition to those licensed, 21 stations were opera.ting on an interim basis. In consequence, 30 stations were bringing telev"ision broadcast service to 17 cities and metropolitan districts, as compared with 8 cities served by 12 stations the previous year, The demand for television facilities 38 REPORT OF THE FEDERAL COMMUNICA'l'IONS COMMISSION was SO much greater than the available allocated channels that 181 of the pending 294 applications had been designated for consolidated hearings at the end of the year. The Commission continued to relax its requil'ernellt of a minimum of 28 hours of program service by each station per week. However,_ on June 17, 1948, it adopted a new rule which specified a graduated minimum hours of operation required of each station, ranging from 12 hours per week to 28 hours per week, depending on how long the station has been on the air. It is interesting to note that currently there were only two television' stations in operation abroad-Loth on fin experimental basis in Ellg land where 60,000 TV receivers were reported in use. Subsequently, a French station started operating. EXPERIMENTAL TELEVISION SERVICE Television experimentation and research eontiulled at a rapid pacl';. This was especially true of work in the ultrahigh and slipel'high fre quencies. Studies included propagation studies, development of equipment, new and l1101'e simple circuits, color tnul,smission, and the systenl of relay broadcasting from planes ill Hight known as "strato vision." Several organizations wore testing- the band £1'0111 47;'5 to SUO luegacycIes, which has been set aside foJ' experimentaltl'levi~ioll research and were nlaking comparative studies in propagation, recep tion, reflectiolls, and shadow effects with respect to tlwse subjects in the "low" present black-alld-white telc\'ision bnnd. One appliennt was granted a construction IWl'mit fOI' a. ,")O-kiJo\yut.t experimental television station to be operated in this high bUllCl. Several broad casters built and operated their own microwaYB relay nct.wol'lu:i so as to be able to relay events (notahly sporting events) to the "mothpr" broadcasting station. These relay networks included intercity relay systems, At the end of the fiscal year there were 87 expel'imelltal television statiolls licensed and 37 outstanding constrndion permits, IncllHled in these figures were D9relay stations used primarily as renlOte pick-up, studio-to-transmitter links, and intercity relay transmitters. OTHER TELEVISION DEVELOPMENTS An important stimulus to the television industry was actual or imminent extension of the coaxial cable system, and expansion of common carrier and television broadcast microwave relay systems. This is enabling more stations to carry network programs, has hastened the construction of others, and prompted morc applications for tele vision facilities. However, television program relay was still COIlfined to the East. The coaxial cable link between New York and "Tashington, the only- REPORT OF THE FEDERAL COM:\lUNICATIONS COMMISSION 39 one presently used for TV transmission, was extended north to Albany, N. Y., and south to Richmond, Va. Microwave circuits which could be used for television existed between Boston and New York, New York and Schenectady, New York and Philadelphia, and Philadel phia and ·Washington. Coaxial or microwave links were in prospect for Buffalo, Toledo, Detroit, Chicago, Milwaukee, and St. Louis. (See also Coaxial Cable and Microwave Relay in chapter on Common Carriers.) New tecJmiqups "'ere developed in camera pick-up, especially in sporting events. The complete coverage of the political conventions and tbe wide relaying involved was one of the important television events of the year. These telecasts were carried into areas which did not llave Jocal TV service, such as Pittsburgh, by means of the strato vision experime,nts. In a few parts of the country, Illotion-picture companies tried out the technique of picking up sporting and other events, relaying them by microwave relays and then showing the pictures on large screens in mQtion-picture theaters. TELEVISION RECEIVERS Television receiver production continued to mount to about 50,000 1)('1' month at the end of the fisc aI year. Many new and low-priced models appeared on the market. It was estimated that SOme 460,000 TV sds had been produced since the close of the war. TELEV1SION CHANNEL ALLOCATIONS "-ith only 12 tph'vision broadcast channels presently available and the demand illcl'f ' :lsillg. the whole televiHion allocation problem had to be studied with a view of supplyiug an equitable distribution of ~el'\'icethroughout the COHntry, and also maintaining decent stand ants of g()()(l PIlg-illC'C'l'ing practice. The conunercial TV band had consisted of 13 channels, each 6 mega cycles wide interspersed between 44 and 216 megacycles. Part 3 of the COlnmission's Rules and Regulations contained a table of alloca tions of television channels which included only the first 140 metro politan districts as dt.,thwd hy the Census Bnl'eau. The upswing in televi~i()ninten's!: eallsed the Commission to cull u hearing for June 14, 1948, on the matter of amending the allocation table. Over 80 appearances were filed, most of which were accompanietl by petitions and engineering" studies concerning additions of channels and other changes. Many snpported the Bew allocation table proposed by the Commission. Oral at'gument OIl the above proceeding was still pend ing at the end of the year. As a result of hearing and oral argument, the Commission as of Jnne 14, 1948, llIade effective its proposed rule-making of August 14, 813501-4!i-----4 40 REPORT OF THE FEDERAL COM.VlUNICATIONS COMMISSION 1947, which action deleted channel No.1 (44 to 50 megacycles) from television broadcasting, abolished the sharing of television channels by certain other services, and provided the 72 to 76 megacycle band, a potential source of interference to television, to non-Government fixed and mobile services on an engineering basis of noninterference to television. The loss of this channel to television, coupled with the mounting demand for television stations, was the basis for an over-all study by the Commission of the needs of television broadcast service for a satis iactory Nation-wide competitive coyernge. Its engineering findings indicated brietly that there was insufficient spectrum space below 300 megacycles to make possible a truly Nation-wide competitive teleyi sion system and that some interference to television reception would result from adjacent channel operation of other services, from har monic radiations, and noises from other electrical devices. In view of this, the Commission on May 5, 1948, called for a hearing to obtain full information concerning interference to teleyision reception in the present band, data conceming propagational charncteristics of the 475 to 890 megacycle band, the state of deyelopment of transmitting and receiving equipment for this band, and any proposals for the commercial utilization of this band for television broadcasting. The date set for the above hearing was September 20, 1948. (See Subse quent Events.) 5. NONCOMMERCIAL EDUCATIONAL BROADCAST SERVICE The FM broadcast band includes 20 channels (between 88 and 92 megacycles) allocated for use by noncommercial educational broadcast stations. These are licensed principally to universities and school systems for providing educational and entertainment programs to schools and to the public without profit. Although the numher of such stations on the air increased from 8 the previous year to 22 on June 30, 1948, the total number of stations authorized increased but slightly, from 38 to a total of 46. Eight additional applications for new stations were pending. While many educational institutions express interest in this service and indicate that they intend to establish stations, postwar problems facing many educators have delayed the fulfillment of these desires. Lack of sufficient appropriations by school systems has been a partirular deterrent. On June 17, 1948, the Commission issued proposed rules which would permit noncommercial educational FM stations to operate with a power of 10 watts or less, thus enabling stations to be established with a bare minimnm of equipment costing only a few thousand dollars. The feasibility of l8w-power operation was successfully demonstrated oyer a period of a year by an experimental 2Y2-watt REPOR~'OF THE FEDEllAL COMMUNICATIONS COMMISSION 41 'station at Syracuse University. The Commission believes that low-cost stations, normally covering a radius of about 2 to 5 miles, will en courage the use of FM broadcasting by educational institutions. The equipment may be supplemented with higher-power amplifiers when and if desired. While a number of States are planning to build state-wide FM edu cational networks, Wisconsin leads the field in this respect. It has ..two stations in operation and two others under construction. 'Vhen several additional proposed stations are completed, nearly all citizens in that State will be within range of one or more of its educational FM stations. F~1sets for commercial program reception can also tune in local -educational FM stations. 6. INTERNATIONAL BROADCAST SERVICE International broadcast stations operating in this country are li censed by the Commission, but funetion under the auspices of the Department of State. Their programs are directed and supervised by the International Broadcasting Division of the Ollice of Inter national Information and Educational Exchange of that Department. Programs in many languagcs were beamed overseas daily. The IlUm her of~tations-37-remainedunchanged. 7. FACSIMILE BROADCAST SERVICE An important Ilew commercial broadcast service-facsimile-was authorized during the year. Following heul'inbYS, the COlllmission in J Hne 1948 adopted rules pro viding for commercial facsimile broadcasting by FM stations begin ning .July 15, 1948. FM stations, in consequence, may transmit printed matter and pictures for reception by anyone having a facsimile re ·N~iverand recorder within the station's service area. Limited quan tities of facsimile transmitting and receiving equipment ate in produc tion and mOre will be available as the service develops. Previously, all facsimile had been of an experimental nature. Dur ing the past seveml ycars facsimile apparatus and techniques improved greatly. The Commission found that the service was adequately de veloped to be established on a regular basis with the other commercial broadcast services. Seveml FM stations have already begun trans mitting facsimile under the new rules and standards. Since facsimile transmitters and receivers must be synchronized, transmission standards are necessary so that any facsimile receiver may operate from any facsimile station in its area. There was little .difference of opinion in the indnstry concerning the standardsproposed tor adoption, with the exception of the recorder line length to be em- 42 REPORT OF THE FEDERAL COJ\U\iUNICATIOl'iS COMMISSION ployed. While the majority favored the 8.2-inch paper size, there was' some support for 4.1-inch paper operating at the same speed of 105 Jines per inch (3.43 inches per minute). The Commission shared the view that the larger size should be used and adopted standards accordingly. These provide for the transmis sion of 16Ietter-si7,e pages per hour. However, different size recorders may be employed if the number of lines per inch is made to conform proportionately. 1Vhile there was suggestion for the adoption of two standards so thatthey could be tested more thoroughly, the Commission believes that there should be a single standard, as in television, to· enable all facsimile receivers to operate from all facsimile stations within range. The rules provide for the use of both simplex and multiplex fac simile. Simplex is employed ","hen allF'~Ist.ation is not transmitting aural programs and multiplex is the transmission of both simul taneously. The Commission holds that, while multiplex facsimile has not been fully developed, its importance requires current provision for it. FM broadcasters will hesitate to interrupt aural programs for the transmission of simplex faesimHc and, therefore, lllultiplexing nlust be used for the fullest developmeut and use of FM and "Fax" together. Recent experiments jndie-ate that multiplexing can be accomplished. without perceptible degradation of the aural program. A band of frequencies has also becn provided for experimental fac simile operation, in the 470-megacycle runge, but no facsimile stations; have as yet been proposed for these frequencies. 8. REMOTE PICK·UP BROADCAST SERVICE Stations in this service arc used to furnish tl>lnpOral'Ycircllit~to the' main studio or transmitter' of broaucast stations ill comiection wit h parades, sports events, and other programs pickell up at points where wire circ1Iits are not available or cOllvenil-'nt. Since remote pick-up transmitters are often mounted in automobiles or light trucks, they are also useful for emergency communications when nOl'mal conulllwi cution facilities are disrupted by floods or other disasters. The Humber of remote pick-lip stations decreased fr0111 583 to 571. This \vas be- .. cause many applications for Hew stations were being helel without action pending changes in frequency assignments. However, special temporary anthorizations \\'ereis.~ueddurillg the yf'ar for operatioll of such equipment by some 200 stations. 9. ST (STUDIO·TRANSMITTER) BROADCAST SERVICE The principal purpose of an ST broadcast station is to provide a program circuit between the studio of all FJI station and its trans mitter \"hen the bltter is located at a considerable distance or at 31L REPORT OF 1'HE FEDERAL COMyIUNICATlONS COMMISSION 43 inaccessible point, such as a mannt-ain top. IntcrnatiolUll broadcast ~4ationsmay also employ ST stations for programci~'cultsbetween 'studios and trnnsmitters. Following the war, the banc! of 940 to 952 megacycles was allocnted for ST broadcasting, and during the past fiscal year severa] munufaeturers placed ST equipment on the market. S'!' transmitters are now being installed by a number of permittees :and, in some instnllces, are replacing equipment temporarily employed ·Oil other frequencies. At the close of the fiscal year nine ST stations wereauthorized~comparr-d to fivE' thepl'eViOll~year, and inquiries indicated mOre in prospect. 10.DEVELOP~IENTALBROADCAST SERVICE Developmentnl brondcast stntioils are employed chiefly for the test "ing of transmitters and antennas, for propagation studies, and for tIther experiments requiring radio transmission. Manufacturers test 11igh-power FM transmitters and high-gain FM antennas for compar ing actual performance with theoretical predictions. Activity in this service decreased during the year, and the number of stations d('cIined from 24 to 15. II, BROADCAST STATISTICS AUTHORIZED STATIONS The following table shows the number of stations (licensed or hold ing construction permits) in the vUl'ions classes of broadcast service fot· the past 2 fiscal years: Class of station 'Standard (AM)_ _ _ Frequcncy modulation (FM) _ Television (TV) Television (clperimellt.al)__ .. _ . __ . _ Noncommercial educationaL _ Jp.w~na.tionaL------_ }acs\llllle _ Remote pick-up ._ _ _ StUdio transmitter (8'1')__________ _ . _ Developmental. . __ "Class 2 (experimental) > _ _ _ • _ Total. _ 1947 I 1, 795 1 918 6iJ 81 38 37 3 "" 5 "1 3,5.51 3,967 416 In addition to the fixed stations enumerated above, 755 auxilinry mobile units were being utilized by the broadcast services as of .Tan uary 1, 1948. The greater number-644-were engaged in remote pick-up; 76 were used in experimental television, 32 in developmental pursuits, UHf) 3 in studio transmitter activities. BROADCAST AUTHORIZATIONS BY STATES Shortly after the close of the fiscal year a tabulation of 3,186 out standing AM, FlU, and TV broadcast authorizations collectively showed that Texas had the most of auy State, closely followed by Totals _ 44 REPORT OF THE FEDERAL COMl\1UNICATIOKS COMMISSION California. E:ach had more than 200. Sewn other States had 100' or more apiece. ThreeStnt~seach held more than 100 grants in the AM field alone- Texas, California, and Pennsylvania ranking in that order. Puerto Rico had more AM authorizations than Hi States individually. California led in FM authorizations, with New York and Penn sylvania tied for second place, followed in tnrn by Texas and Ohio._ New Jersey, Ohio, and the District of Columbia held more FM thail' AM grants. Only one State-Montana-had no FM authorization. The television listing saw California and New York tied for first place, with Ohio a close runner-np. Fifteen States were still without TV grants. The break-down by States follows: Alabama_________ Stat,_____________ AM", I "M~71TV 3 Tota',. Arizona_ ._________________________ 25 2 1 2S Arkansa.'l____ _ .". .________________________________ 28 7 0 35 California .__ 130 R6 12 22S Colorado__ _ " 34 4 0 38 ConneeticuL _. .. __ .... .___ 25 20 I 4ti Delaware ._.____ 5 4 1 Ht District of Columhia_______ 7 10 4 21 Florida . __ .________________________________ 69 28 3 IOU Georgia_ _ .___________ 70 31 3 104 mf~o~s=====---------=:::=::::::=::::-::::::::--- ::::::::::::- V, I,~~1~ Indiana_________________ 41 33 ;"\ 77 Iowa_____ ._____________________ _ 45 22 2 69 Kansas__________ 31 10 0 41 g~l~!~~r::::::----::---:--:=:::=:_~~:~:~:~~~:~:~:~:~:~::~~~:~~~~I}~~~ Maryland_________ 22 Hi 3 40 Massachusetts _._____________ 42 35 3 ro Michigan 59 36 a 98 Minnesota________ 38 11 3 52 MississippL _ ._____ 35 7 0 42 MissourL____ 40 24 2 66 Montana_______________________________________________________ 26 0 0 26 Nebraska______________________________________________________ 18 6 2 26 Nevada_________ 12 3 0 15 New Hampshire . .________________ 11 7 0 18 New Jersey_ 19 21 1 4t New Mexico .________ _ _ __ 20 1 1 2Z New York. _ 91 76 12 179 North Carolina .__________ 86 44 2 13X North Dakota .. 15 2 0 IT Ohio. .____ .')6 65 11 13T Oklahoma ._ 39 15 2 56- Oregon___________ 37 12 1 50 Pennsylvania_________________________________ 102 76 7 185 Rhode Island______ 8 7 1 16 South Carolina______________________________________________ 37 14 0 51 South Dakota .____________________ 15 1 0 16 Tennessee___ 54 26 1 81 Texas_________________________________________ _ 1M 69 6 239 Utah____________________________________________ 18 3 1 22 ~i:~i~~:::::::=::::::::::=:::::::::=::::::::=:=:::::::::4~~~7~ 'Vashingtoll_ _ 45 8 1 54 West Virginia______ aa 18 0 51 'Visconsin__________ .'iO 29 1 80 Wyoming______________________________________________________ 12 I 0 13 Alaska__________________________________________ 8 0 0 8 Hawaii._ -----.--------------------------- -------------------- 9 0 I 0 • Puerto Rico________________________________________________ 25 4 0 29 Virginlslands____________________________________________ 0 i 0 0 0 _________________.;~I~!---wsl~; I Does not include noncommercial educational broad(',usl stations. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 45 BROADCAST APPLICATIONS A-:\t BHOADCAST APPLICATIONS Pending July I, 1947 Received Disposed of Pending June 30, 1948 Construction pl'rmits; New stations _ Chang<' in (a-cilities__ Total construction p<'rmits__ Licenses. _ _ _ Renewals _ 'l'ransfers. . _.. . . _. __ " Modification or construction plC'nuits _ Allother- .. .. f>60 &S5 .76 '76 254 320 268 300 ---------------- 920iO,~744 881 ------------- 113 701 620 194 1.~2filii 571 197 58 271 247 82 90 263 246 10' .._---------- 159 1,477 1,538 98 TotalA~Iapplications 1,492 4,033 3,966 """ F1I BROADCAS.T APPLICATIONS Construction pl1fmits: New stat.ions __ . __ Change in facilities _ Total construction pcrmits__ Licrnses_ ._. _ Henewals _ Transfers _ Modification of construction permits All other . _ 'rotal F?o.I applications._ I Includes 106 conditional grants. 431 I 167 410 1}88 11 14 20 li ----,----~~---- 442 181 430 IlJa I6 172 107 81 II 54 46 17 12 95 80 'J:l 102 373 395 80 I 1,4fVl 1,398 71 -------s821~-2,456~ TV nnOADCAR'I'APPLICA'rION~ Con~~~c~~~~i~~I~l!~~:. . • 1 10 363 69[ 294 Change in faciliticil .. 0 2_7 ' 1_. Total construction permits_. _________________________ __ __ 10 380 77 313 Licenses_ .... .. 0 3 2 I Renewals __ ._ .. 0 7 7 0 Transfers .__________________________________ 0 II 11 0 Modification of construction pcrmits ._ 7 tH 7I 0 AllotheL 1 114 105 10 'rotal '1'V applications . __ ---18--------;:ro--------;m-I~-324 ALL OTHER BROADCAST APPLICATIOKS ConstructiOn permits: New stations __ Change in facilitil'$ 39 2 205 27 131 17 113 12 '1'otal construction permits _ LiCl:'nses Renewals __ Transfers .. _ Modification of construct IOn permits _ All other _ Total all other applicatiOns _. __ . __ -----------_.- 41 232 148 125 6 102 83 25 iiil 221 23' 42 ------------ 0 48 48 2 10 22 31 1 1 120 113 8 -------- --- ---- -------------_. Il7 745 659 203 46 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 'l'O'l'AL BROADCAST APPLICATIONcl Construction permits: New stations . ... _ Cbange in facilities _ Total construction permits _ Licenses. . _ Renewals _ Transfers_ _ Modification of construction Permits All other _ i 1,1461' 1,110 I. 086 1,170 267 388 313 342 ------------ 1,413 1,498 1,399 1,512 135 978 812 301 220 898 862 256 70 425 384 III 209 722 743 188 162 3,179 3,154 187 Total applications. _ 2,209 7,700 7,354 2,555 CHAPTER IV. SAFETY AND SPECIAL RADIO SERVICES I. GENERAL 2. AERONAUTICAL RADIO SERVICES 3. MARINE RADIO SERVICES 4. EMERGENCY RADIO SERVICES 5. RAILROAD RADIO SERVICE 6. UTILITY RADIO SERVICE 7. INDUSTRIAL, SCIENTIFIC, AND MEDICAL RADIO SERVICE 8. MISCELLANEOUS RADIO SERVICES 9. EXPERIMENTAL RADIO SERVICES 10. LOW·POWER RADIO SERVICES 11. PROPOSED LAND TRANSPORTATION RADIO SERVICES 12. PROPOSED INDUSTRIAL RADIO SERVICES 13. SAFETY AND SPECIAL SERVICES STATISTICS I. GENERAL Because broadcasting commands so much attention from industry and the individual listener, it is not realized generally that the ex panded use of radio is being felt more in the nonbroadeast services. For administrative purposes, the latter are grouped as safety and special services or common-carrier services, as they may require. This chapter deals with the safety and special services. As their general classification implies, they are devoted largely to the safeguarding of life and property, at the same time contributing to economies and improvements in public and private business operations. Somecom~ mon-carrier communications functions have been included for con venience because they are inextricably related to safety functions, e. g., aeronautical public-service stations, various marine radio serv ices, certain special emergency radio services, etc. The amateur and citizens services are dealt with in a separate chapter. A myriad of specialized services are oll'ered by stations in the safety and special se'l'vices. Most of them function in connection with air, sea, and land transportation, and police, fire, and other public pro tection. Still others are concerned with developing new equipment and techniques suitable for public or private uses. Such activities are in keeping with provisions of the Communica tions Act which, among other things, charges the Commissjon with "promoting the safety of life and property through the use of wire and radio communication," and requires it to "study new uses for radio, provide for experimental lIse of frequencies, and generally en courage the larger and more ell'ective use of radio in the public interest." 47 48 REPORT OF THE FEDERALCO~l:\.1'L'NICATIO:L\SCO)'l~IISSION A gain of nearly 11,000 authorizations was noted in the safety and special services last year, bringing the total to almost 47,500. Of the latter figure, nearly 21,000 were accounted for by the aeronautical services, and slightly over 15,000 by the marine services. However, there were marked and proportiouate increases in the publie safety and land transportation services. Applications received by the safety and special services (exclusive of amateur) approximated 57,000 for the year, or some 4,000 more than in 1947. They covered the use of radio from the cradle to the grave, since requests ranged from a radio system for a pick-up-and-delivery baby diaper wash to radio control for funeral corteges at a large eemetery. Most of the nonbroadcast serviers were in a state of flux, due to changes made necessary by developlnents in equipment and techniques and revision of world radio agreements. Establishment of Hew services increases the problem of finding frequency space and regulating opera tion. As each new use of radio emerges from the experimental stage, procedures must be inaugurated to handle the newcomer in the light of international as well as domestic considerations. Of prime interest during the year was Commission proposal to estab lish two new general groups-land transportation and industrial which would embrace various new Or present radio services. 2. AERONAUTICAL RADIO SERVICES The aeronautical radio serviees com;titute one of the most important groups in the safety category. Radio has become invaluable in the operation of aircraft under all conditions and is used in many ways for operational purposes and to protect life and property in general. Aviation radio involves navigational aids, including fixed beacons, ranges, radar devices, direction-finding systems, etc.; traffic control operations; approach and blind-landing systems; special devices such as radio altinleters and distance measuring- equipment; nnd publie correspondence systems. The year witnessed a continued expansion in civil-aviation activities. With the exception of the amateur service and commercial operators, the aeronautical services now constitute the largest single group li censed by the Commission. There were 20,858 authorized aircraft and ground stations at the close of fiscal 1948 as compared to 15,943 for the year previous. Applications received during the 1948 fiscal year totaled 22,324. AVIATION ORGANIZATIONS AND CONFERENCES Developments in this field brought many new problems and required increasing attention by the organizations which coordinate national REPORT OF THE "EDERALCOM~IUNICATIONSCOMMISSION 49 and international aviation activities. The thre,e leading groups of this character are the International Civil Aviation Organization, the Radio 'Technical Commission for Aeronautics, and the Air Coordinating 'Committee. The International Civil Aviation Ol'ganization (ICAO) is an in ternational organization which works tOWHl'<1 the development of principles and techniques in air navigation and fosters the planning and development of international ciyil aviation throughout the world. Activit.ies in the leAO have centered on those phases of aviation deal ing with commnnications, and have included, during fiscal year 1948, the preparation for and participation in three ICAO Regional Ail' Navigation meetings, nnlllcly, South Atlantic, European-J\1editel' ranean, and North Atlantic; awl one ICAO Divisional Ineeting at ~Iontrealwhich concerned personnel licensing. Representation at these lueetings insures that the established policies of the Commission will be reflected in the deliberations ,,,,hcl'ever applicable, and further insures that the COlllmission will LJe kept informed on current trends in international aviation telecommunications requirements which, be cause of the nature of aviation operations, affect and, in many instances become a part of, domestic requirements. The Radio Technical Commission for Aeronautics (RTCA) is a ~ooperativeassociation of United States Government-industry aero nautical telecommunications agencies. It conducts studies of aero }luutical telecommunieations problems and l'elat€'d matters, and its <>bjective is the resolution of such problems by mutual agreement of its member agencies. Its findings are in the nature of recommendations to all domestic organizations concerned, One of the major and con tinuing activities of the FQC's Aviation Diyision involves pal'ticiI)U tion jn the Executive Committee and special technical committees of the RTCA, During the last year these activities have included studies such as: L Formulation of principles for a national system of all-weather air-traffic control and the development of recommendations regard ing equipment and procedures required to implement these principles, 2, Image interference from Fi\I stations to VHF localizers associ ",ted with instrument-landing systems, 3. Harmonic mnissions from television stations which affect avia tion radio in the 108- to 132-megacycle hand, 4, Revision of United States policy for air navigation and traffic ,controL 5. Testing prog"ranl for long-range aviation-navigation facilities. 6, Standardization of distance-measuring equipment (DME) and testing procedures, 7, Implementation of air-traffic control transponder "private line" ,'isual communications equipment. 50 REPOR'r OF 1'HE FEDERALCO~LMUNICATIOKSCOMMISSION 8. Implementation of VHF emergency and airway-statioll commu nication frequencies. 9. Power output of VHF air-borue transmitters. Another continuing activity involves participation in the work of the Air Coordinating Committee (ACC), its divisions and subcom mittees. The ACC was established for the purpose of reaching deci sious which would become the position of the United States in avia tion matters. The Commission has representation on the Technical Division of ACC and the following subcommittees: Aeronautical Communications and Electronic Aids; Airspace, Rules of the Air, and Air Traffic Control; Search and Rescue; Dimensional Sta.ndardiza tion; and Airmen Qualifications. Another committee was recently established by the ACC, entitled Air Traffic Control and Navigation Panel (NAV Panel) for the pur pose of guiding the implementation of the national all-weather ail" navigation aud traffic-coutrol system recommended by the RTCA. An International Aeronautical Administrative Radio Conference, called by the Administrative Council of the International Telecommu nications Union, ,vas held beginning :"MflY 15, 1948, at Geneva. This conference had for its purpose the preparation of a world-wide plan of assignment of mobile frequencies in bands allocated exclusively to the aeronautical service. Prior to this conference the Department of State convened a preparatory committee composed of representatives from the Army, Navy, Ail' Force l Conunerce, Treasury, FCC, the various air lines and Aeronautical Rudio, Inc., to do the necessary preparatory work of outlining' the United States position, performing the detailed engineering, and preparing docunlentation to support it, and providing the instructions to the American delegation. The Avia tionDivi~ionactivelyp:.~rticipatedin the preparatory work and two of its lnembers were on the delegnJioll to the conference. The Chief of the Aviation Division was vice chairmun of the delegation, and was the TJllited States spokesman at the conference, since the chair man of the dele,gation wus elected conference chairmun. AIRCRAFT RADIO As in past years, the larg-est increase in the aeronautical radio serv ices was that of private ajrcraft. There were 17,.736 authorized air craft radio stations at the close of the fiscal year as compared with 14,627 in 1947, and of the former nearly 16,000 were private aircraft. The growth of air traffic and associated radio aids created a need for a national system of all-weather air traffic control. A study of this matter was made through the medinm of the RTCA, in which all interest.ed Government agencies and private intcrests were repre sented. It re.sulted in the forlllulation of principles and the develop- REPORT OF THE FEDERAL COMMU""ICATIO""S COMMISSION 51 lnent of recommendations regarding equipment and proceduresre~ 'luired to implement these principles. The over-all acceptance by .aviation interests of this 15-year program of development and imple mentation of an all-weather system of traffic control points towards the large.3t increase in aviation radio activities in history. The current effects of this program, as well as the pressingnee~s .of aviation for specialized radio equipmcnt, is indicated by the in crease in the number of aircraft installing radio altimeters, terrain elearanee indicators, and distance measuring equipment. They create new problellls for the Aviation Division as far as licensing procedures are concerned, so the first applications of this nature must be espe "'ially treated until new policics or rules are formulated. AERONAUTICAL LAND AND AERONAUTICAL FIXED RADIO STATIONS These stations provide the radio cOlllmunication service necessary for the safe, expeditious, and economical operation of aircraft. Do nH~sticail' carriers are required to maintain two-way ground-to-air radiotelephone communication at terminals and at such points as may be deemed necessary by the Government to insure satisfactory <3ommunications over thc entire route. Such systems shall be inde pendent of radio facilities provided by Federal or other govern ulental agencies. The revival of the Civil Air Patrol, as a civilian auxiliary of the United States Ail' Force, has caused a large increase in the number of })eronautical and aeronautical fixed stations authorized for its com Illunications network throughout the Nation. It is the ultimate aim of the orgulllzatlon to so connect the 48 States and the District of Columbia together for national emergency or local disaster purposes. Approximately ],000 such stations are jlOW operated by the Civil Air Patrol. There were 2,761 aeronautical and aeronautical fixed stations at the close of fiscal 1948 compared to 1,435 in fiscal 1947. This increase is due to the extension of air-line routes, the expanded use of very high frequencies, and the growth of the Civil Air Patrol. The Commission adopted a very high-frequcncy allocation plan on October 25, 1946, .and many aeronautica.l stations utilizing VHF to supplement their high-frequency service were authorized during the year. AIRDROME CONTROL STATIONS The number of airdrome control stations licensed at the end of the fiscal year was 59, an increase of 1 since 194:7. Airdrome cont.rol stations for the most part are operated by the Civil Aeronautics Administration. 'Vhile there has been a great increase in the number ·of airports and airdrome control stations, the lnajority of these were inaugurated and operated by the CAA. Further implementation of 52 REPORT OF THE FEDERALCOM~mNICATIONSCOMMISSION. the very high frequencies has caused considerable modifications or licenses for existing airdrome control stations. AERONAUTICAL MOBILE UTILITY STATIONS This service was first implemented in Febrnary 1947, and at the end of fiscal year 1947, 18 stations were licensed. As of June 30, 1948, the Commission had on license 109 such stations. They are used aboard crash, maintenance, emergency vehicles, etc., at airdromes for commullicating with controltower~,ground vehicles, and aircraft on: the ground. This service is used by many municipalities and incli- viduals cOlleerned with the care and upkeep of airports. AERONAUTICAL NAVIGATION RADIO STATIONS Aeronautica] navjgation radio stations are for the most part oper •.ted by the Federal Government. However, as the combjned civil military system of air navigation and air traffic control becomes jmplemented, those licensed by the Commission will increase sharply. Furthermore, the RTCA program has recommended the installation. of a considerable number of radar and radio facilities, in addition to a large expansion in the number of present radio facilit.ies. The Commission had authorized 66 such stations at the close of the year' 1948 as compared with 19 stations in 1947. FLYING SCHOOL RADIO STATIONS A flying-school station is a station on the ground or on board air craft used for communications pert.aining to instrnctions to students or pilots while aetunlly operating nircraft. There were 23 of these stations in 1948, or 8 more t.han t.he year before. This increase is largely the result of flight-training instructions under the GI bill of rights, and it is expected that this serviee will continne to increase. FLIGHT TEST RADIO STATIONS A flight test station is a l'adio Htation, ground or ail'cndt, used for the transmission of coml11llnicationsin cOllnection with the test of air craft 01' major components of aircra.ft. The sh'ady increase in develop ment of nmv types of planes for civil andlnilitary aviation has caused a marked increase in the number of flight test radio stations. At the dose of the year, there were 104 flight test stations in comparison with 82 in 1947. AERONAUTICAL PUBLIC SERVICE STATIONS The public service type of station has been provided to enable indi viduals aboard aircraft in flight to communicate with eertain hmd radio facilities connected with land-linetelephone or telegraph systems. The frequencies available to ship telegraph aud ship telephone stations are available to aeronautical public serviee aircraft stations for the' REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 53 handling of public eOl'l'espondenee in the same manner and to the same extent that they are available to Hhips of the United States. Although an adequate public air-ground telephone communication Hystem has !lot heen prov.ided for complete coverage of the United States, the service, when established in its final form, should enable the user to Eelect at will any subscriber to the nationallletwOl'k. Public service aircraft radio stations have been authorized aboard private aircraft, domestic air carriers and transport planes engaged in overseas flights. Tl?sts are being conducted to determine the feas ibility of utilizing two-way telephone service on overseas flights. At the present time air carriers engaged in overseas flights uSe certain telegraph facilities for the handling of public eOJ'respondence. This operation Vl'ovi(les for air-ta-ground telegraph service only. This service increased steadily and the year closed with 512 authorizations. AIRCRAFT RADIOTELEPHONE OPERATOR AUTHORIZATIONS The::;e are special authorizations for operators of radiotelephone installations on private aircraft and are treated ullder Radio Opera tors. (See ch. VI.) 3. MARINE RADIO SERVICES GENERAL The muritillH' mobile service which concerns the use of radio for marine safety, n-------- ------------------------------I:::~~tl:::~~tl:::::j[ Total~_ Public safety: ~?;~~---~======:========-====================-===================Forestry _ IIighway maintcnance _ Ind:€~~l~~::~:~~~~~~~~~~~~~~~~~~-----.----~~~~~~~~~~~~~~~~~-----I:::;sj'liI:::J;)~I:::f;j~ Utility _ Petroleum___ ___ _ _ _ _ _ Lurnber________ _ _ _ Other--------------------------------------------------:1::=~~II:=g~II:=jjitTotaL , • •• _ Land transportation: Ita.llroad • _ Transit utility _ Intercity busses and trucks__ • _ 'l'axicab _ TotaL ••• •------I:=~~I==~~I':=git Experimental: ExperimentIl.L •• •~_ Citizens _ Miscenaneous •~•I:=¥~I:::=~~:I:=;;;~ TotaL • • _ Grand totals • • _ Class of station [ Page 74 in the original document is intentionally blank ] CHAPTER V. COMMON CARRIERS 1. COMMON CARRIER REGULATION 2. TELEPHONE (WIRE AND RADIO) 8. TELEGRAPH (WIRE, CABLE, AND RADIO) 1. COMMON CARRIER REGULATION A major purpose of the Communications Act is "to make available, so far as possible, to all the people of the United States, a rapid, elli eient, Nation-wide and world-wide wire and radio communication service with adequate facilities at reasonable charges * * * " To that end, the Commission is charged with regulating interstate and foreign communication by telephone and telegraph. The act requires that aU charges, practices, and regulations in this connection be just and reasonable and nondiscriminRtory. At the same time, the Commission regulates the adequacy and ·quality of these services. No carrier may construct or acquire a facility of this charactcr without Commission approval. By the same token, a carrier must obtain Commission approval of discontinuance or cur t ailment of such service. The Commission also regulates the interlocking of officers and directors, it being unlawful for a person to hold olliee in more than one carriel' unless specifically anthorized to do so. The Commission likewise passes upon applications of carriers for authority to merge. The Commission prescribes the forms of records and accounts kept by these carriers, and has established nniform systems of accounts for them to follow. Carriers file public tariff schedules with the Com mission, also annual reports and copies of all contracts with other ·earriel's relating to trallic subject to the act. The CorUlnission receives all applications to land or operate sub marine cables connecting the United States to other countries, and ndvises the President with respect to the granting of such licenses "fLer receiving the approval of the Secretary of State. The Commission licenses common carrier radio operators under provisions of the act which require the liceusing of all persons engaged in radio transmission. The Communications Act expressly protects wire and ra ~Deficit. 3Includrs dOffirstic llaul of cable and mdio messages (9,650,149 In 191fo and 9,851,556 in 1917). INTERNATIONAL TELEGHAPH International Conference 0011' Oonfe:renr'e.-The Commission was represented on the United States delegation to the International Telegraph Consultative Com mittee (CClT), which met at Brussels in May 1948 to consider varions technical subjects and proposals for certain changes in the Interna tional TelegraphRegulation~,in preparation for the Administrative Telephone aIHI Telephone Conference to be held at Paris in 1949. Services and facilities Cireu;ts.-Radiotelegraph circuits were established bet",eell the United Stlltes lind Tel Aviv, Israel, and Rhodes, Dodecanese lslallds, during the year. A direct radiotelegraph circuit between~ewOr leans and Rio de Jalleiro was opened by Tropical Radio Telegraph Co. late in 1947 as a result of the Commission's decision in docket 772a. hereinafter not-eel. Tropical alHo establishcll communication with IGngston, Jamaica, which was one of the points involved in dockets 7094 and 7412, referred to in the 1947 Anllual Report. Use of the Tangier relay stations of Mackay Radio & Telegraph Co. a1\(1 RCA Communications, Inc., was extended to include com.rnunicatioll with Israel and Rhodes, as well as with several other countries formerly served by direct operations only. Addressed program material is also being transmitted via Tangier to InallY points for the United~ations und the Department of State. Docket Ca8es.-Several applications for duplicating radiotelegraph circuits were filed during the year. Among these were filings by Mackay Radio & Telegraph Co. for authority to communicate with The Netherlands, Portugal, and Surinam, to which countries RCA Communications was operating radiotelegraph circuits from the REPORT OF 1'HE FEDERALCO~I~IUNICATIONSCOMMISSION 95 United States, Lengthy hearings, extending from April through June 1948, were held on these applications, Other hearings involving applications for new radiotelegraph circuits are scheduled for fiscal 1D49, The Commission on December 4, 1947, adopted a final report and order in the British Commonwealth Circuits case, dockets 7094 and 7412 (referred to in the 1947 Annnal Report), It divided the available circnits in the following manner: To RCA Communications, Inc.-Australia, New Zealand, Greece, and Union of South Africa; to Mackay Radio & Tclegraph Company, Inc,-India, Palestine, and Saudi Arabia; to Tropical Radio Telegmph Co,----.Jamaica, The Commission dismissed withont prejndice applications to communicate with Ceylon, Hong Kong, and the Malay States (Singapore), The application of Press Wireless, Inc" to operate a press circnit with Australia was also dismissed without prejudice, The Commission, on November 28, 1947, a![opted its final report and order in docket 7510, in which it denied Press Wireless modification of licenses to permit rendition of a domestic press, Government, l'ndiophoto and program transmission service between applicant's east and west coast stations, On the same day, the Commission adopted its report in docket 7723, in which it denied Mackay's application to construct a new point-to-point radiotelegraph station at Meranx, La" for com munication between New Orleans and Rio de Janeiro, Brazil, and Lima, Peru, and ordered a modification of license to Tropical Radio to operate a direct radiotelegraph circuit between its existing station near New Orleans and Rio de Janeiro. New Bervices,-RCA Communications and Press Wireless have in stituted a new type of program transmission service which is being used by the United Nations for point-to-point transmission of material of an international broadcast nature to numerous foreign points. This service is on a unilateral basis and, after receipt at foreign points, is broadcast by local broadcast stations or networks, or is recorded for later broadcast. It augments the direct short wave broadcast services of the United Nations and the Department of State, Much of the material transmitted from New York is relayed via RCAC's Tangier relay station, Authorization has been granted to the 2 com panies offering this service to transmit to over 30 countries in Europe, Africa, Asia, the Near East, Latin America, and the Pacific area, Rates and tarilfs InternaNonal rate ca8e.-In the international telegraph rate case, docket 82;;0 (see Thirteenth Annual Report), the Commission on July 30, 1947, to meet the urgent revenue needs of the carriers, authorized emergency out-bound rate increases calculated to produce about $5,485,000 additional annual revenue. It was estimated that corre- 96 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION sponding increases in in-bound rates would produce about $1,055,000 more. None of the rate increases authorized by the Commission re sulted in a rate out-bound from the United States in excess of the presently effective world-,,-ide maximum of 30 cents per full rate word, 20 cents per code word, or an ordinary press rate of more than 6% cents per ordinary press word. Shortly thereafter, certain of the carriers requested reconsideration and further increases, alleging that their needs had not been fully met. The Commission reopened the proceeding and held further hearings in December 1947 and January 1948. On April 22, 1948, it issued its report in which it found that, on the basis of the record nnlde at the further hearings, several of the respondent carriers were operating at a loss, and most of the others at a profit providing little more than a. nominal return, and that this situation was expected to continue. In view of the urgent need for a substantial amount of additional revenue on the part of the international telegraph carriers, the Commission permitted additional generaJ rate increases of all emergency nature. The additional out-bound rate increases were estimated to produce about $3,188,000 in annual revenues, while further corresponding in bound rate increases would produce about $295,000 more. None of the increases authorized produced a rate in excess of 30 cents per fuU rate word. Certain controversial questions raised by the record re main for decision. Multiple addre88 preS8 rates.-As part of the proceedings in docket 8230, Press 'Vireless, Inc., complained that its competitor, Mackay Radio & 'felef{raph Co" was furnishing multiple address press service at discriminatory and preferential rates, in that they were below the cost to Mackay of furnishing the services and that, in effect, the multi ple address press service was being subsidized by Mackay's other services. In its April 22, 1948, report (docket 8230) tbe Commission found that Mackay's multiple address press rates were discriminatory and ordered Mackay to eliminate the discrimination. Mackay filed revisecl tariff schedules intended to comply with the Commission's order. Press Wireless, however, claimecl tbat the discrimination had not been eliminated by the tariff changes. The Commission reopened the procee,ding xpel'ience, thousands of improper operations have been noted and ,corrected. During 1948, as a resllit of monitoring activities, 15,064 advisory, violation, and other notices were served Oil radio stations or radio -operators. This was slightly below the 1947 total of 16,483. Unlicensed activity, perhaps spurred to some extent by the avail _ability of war-surplus transmitters, continued to increase. The num ber of illegal radio stations located during the year totaled 153, an increase of 26 percent over 1947. Of these stations, many were oper ated ,,,,ithout malicious intent, but SOllie were of a more serious nature. All were either a source of interference to important communications ~eL'yicesor posed a threat to the Commission's responsibility tomain~ tain order in the radio spectrum. Several cases involved false distress calls, mnch to the concern of the Government services charged with air and sea rescue operations. One example was an unlicensed station in 'VashinbYion, D. C., which ·operated on a frequeIwy assigned to the aeronautical services. Posing as a distressed aircraft 011 two oceasions, this station caused military authorities to send out crash boats and planes in a search for a mythical plane. Field investigation located this station and, after obtaining admissions of unlicensed operation, the case was turned over to the Department of Justice. Illegal stations located by lllobile units included two which were involved in transmission of false distress signals on aircraft fre