EIGHTEENTH ANNUAL REPORT FEDERAL COMMUNICATIONS COMMISSION \ I FiSCAL YEAR ENDED JUNE 30, 1952 (With introductory summary and notation of subsequent important developments) UNITED STATES GOVERNMENT PRINTING OFFICE. WASHINGTON. 1953 For sale by the Superintendent of Documents, U. S. Government Printing OHice Washington 25, D. C. Price 40 cents \ COMMISSIONERS MEMBERS OF THE FEDERAL COMMUNICATIONS COMMISSION (as of June 30, 1952) CHAIRMAN PAUL A. 'VALKER (Term expires June 30, 1953) VICE CHAIRMAN ROSEL H.HYDJ<~ ('rerm expires June 30, 1959) EDWARD M. WEBSTER GEORGE E. STERLING (Term expire::; June 30, 1966) (Term expires June 30, 1957) UOBEltT F. JONES. JrRlEDA B. HENNOCK (Term expires June 30,1954) (Term expires June 30,1955) HUBERT T. BARTLEY {Term expires June 3D, 1958} .Resigned September 19, 1952; succeeded by Eugene H. Merrill, October 14, 1942. II LETTER OF TRANSMITTAL FEDERAL COMMUNICATIONS COMMISSION, Washington 115, D. O. To the Oongress 01 the Urdted States: There is herewith submitted the eighteenth annual report of the Federal Communications Commission, covering the fiscal year ending June 30, 1952. Subsequently, on July 16, 1952, the Congress amended section 4 (k) of the Communications Act to require certain additional data to be furnished in the first and second annual reports thereafter. The Commission has started compilation of this material which, in accord ance with the new requirements, will be submitted as part of its nineteenth and twentieth annual reports. Because of the interest in television and other developments, the introductory summary of the current annual report makes reference to noteworthy events up to the time of going to press. Respectfully, PAULA. WALKER, Ohairman. III [ Page IV in the original document is intentionally blank 1 TABLE OF CONTENTS INTRofH-CTORY SL;MMARY _ 1. Highlights of the fiscal year _ 2. Subsequent events , _ Chapter 1.GE~ERA"-.. _ ----------------- 1. Authority and purpose .. _ 2. Commission _ Organization chart. _ 3. Functions _ 4. Commissioners _ 5. Staff organizatioll _ 6. PersonneL ______________ _ _ 7. Appropriations and expenditures _ 8. Litigatiol1 - _ 9. LegislatioIl_ _ _ 10.~--------------------------------------------- 11. Correspondence, releases, and publications _ 12. Licenses and other authorizations_ 13. Applications and other filings _ II. NATIONAL DEFENSE _ 1. GeneraL_____ _ _ 2. Defense activities__ _ _ . 3. Control of electromagnetic radiations _ 4. l\liscellaneous defense and protective services _ III. COMMON CARRIERS _ 1. Regulation_______________ _ _ 2. Domestic telephone_______ _ _ GeneraL_______ _ _ Domestic telephone services ___ _ _ Construction of facilities _ Discontinuance, reduction, or impairment of service _ Bpeed of servico_ _ _ Foreign attachment cases _ Domestic Public Land Mobile Radio Service _ Rural subscriber and short-haul toll radiotelephone services____ _ _ Radiocommunicat.ion service in Territories and possessions (except Alaska) __ _ _ Coa::-tal and Alaskan serviceH _ Acquisitions and consolidations _ Interlocking directorates_ Rates and Tariffs _ Tariff schedulcs _ Special permissions _ Charges "based OIl cost" _ Unlawful use of telephone facilities _ Investigation of Bell System rates _ Separation procedllres . v Page 1 1 10 13 13 13 14 15 15 16 18 18 19 ~ 24 25 25 25 27 27 27 28 31 33 33 34 34 36 36 37 37 37 38 40 41 41 41 41 41 41 41 41 42 42 44 VI TABLE OF CONTENTS ChApter Page III. COMMON- CAllRIERs-Continued 2. Domestic telepho'ne-Continued Rates and Tariffs-Continued Toll-rate study _________________ __ _________ 45 Other regulatory matters___________________________ 45 State telephone rate cases :..__ 45 Cha.rges for interstate telephone service within the Washington metropolitan area_ 45 Depreciation____ ___ ___________________________ 45 NARUC committee on depreciatioll .______ 46 Western Electric earnings and prices .,.____ 47 Bell System Federal income taxes _______________ 4'{ N ARUC committee on accounts and statistics_ __ _ 48 Continuing property records____________________ 48 Pensions and relieL~______________________48 Preservation ofrecords~~~_____48 Restatement of plant accounts on basis of original cost~_~~~~_~~_______________48 Annual and monthly reportfQrms~~___49 Uniform systems of accounts' for telephone com- panies__~~~_________49 Revised classification of telephone employees~____ 50 Accountingresearch~~~__ ___ 50 3. Domestic telegraph __~~~~~____________________51 General_~~~~_____________________________51 Service and facilities~~_____________52 Speed of service~~..:___ 52 Western Union modernization program~~__53 Construction of wire facilities___________________ 53 Discontinuance, reduction, or impairment ofservice_ 54 Rates and tariffs • _ 54 Tariff schedules~___ ____ _______ ____ 54 Special permissions~______ ______ _______ 54 'Western Union domestic l"atcs__________________ 54 Leased facility-teleprinter IIticker" equipment charges __~~____________________55 Use of leased telegraph facilities for transmission of horse· or dog-racingnews_~_~~~_________56 Original cost of plant and continuing property records~_________________________________56 Depreciation~________ _____________________ 56 Other regulatory matters___________________________ 57 Uniform system of accounts____________________ 57 Accounting research_~__________________ _______ 57 4. International telegraph and telephone____________________ 57 General__~~______________________________________57 International service~~______ ______________ 57 Telegraph circuits~~~_______ 57 Telephone circuits_ ____________________________ 58 Applications__~~~~~_________________ 58 Discontinuance of service~_________________58 Docket cases____ ______________________________ 59 Western Union divestment__~__________________60 Equipment and operatingt~chniques____________60 TABL& OF CONTENTS Vll Chapter Page III. COMMON CARRIERs-Continued 4. International telegrp,ph and telephone-Continued International service-Continued International conferences____ ______ ___ ___ ___ _ 60 Rates and taritfs__________________________________ 61 Tariff schedules~__________ 61 Special tariff permissions_______________________ 61 Contract filings~________________________61 Marine rate case______________________________ 61 Other regulatory matters___________________________ 62 I>epreClatioD__________________________________ 62 Continuing property records____________________ 62 Relief and pensions .____ 62 Reclassification of plant________________________ 62 Uniform systems of accounts____________________ 62 Preservation of records_________________________ 63 Accounting research_ ___ _____________________ __ 63 5. Statistics~_______________ __________ __ ________ _ 63 Telephone carriers~63 Business and residence telephones by 8tates~___64 Land-line telegraph~__ _ 64 Radiotelegraph and ocean-cable carriers_ ___ ____ _____ 65 Radiotelegraph carriers__ __ __ __ ____ _____ __ __ 65 Ocean-cable carriers_ __ __ __ __ __ _ 66 International telegraph traffic~~___66 IV. SAFETY AND SPECIAL RADIO SERVICES~_________69 1. General~~_______69 2. Marine radio services__________________________________ 70 General~___70 Safety at se8______________________________________ 70 Radio aids to navigation .:: _________ _______ 73 International frequency coordination_________________ 75 Coast statiollS_ ____________ _____ _____ _______ ___ 75 Voluntary use of radio telephony____________________ 76 Maritime fixed services_____________________________ 77 Fixed public service and maritime mobile service in Alaska_________________________________________ 77 Rules governing stations in the maritime mobile service_ 78 Radio technical commission for marine services_______ 78 3. Aeronautical radio services_____________________________ 79 Aviation organizations and conferences____ ____ __ _____ 80 Aircraft radio stations_____________________________ 82 Aeronautical land and aeronautical fixed radio stations__ 82 Civil air patrol radio stations_______________________ 83 Airdrome control radio stations_____________________ 83 Aeronautical mobile utility stations__________________ 83 Aeronautical navigational aid radio stations_ ______ ___ 84 Flying school radio stations_________________________ 84 Flight test stations~____ _____ ___ _ 84 Aeronautical public service radio stations____ ______ __ _ 84 4. Public safety radio services_____________________________ 84 Police radio service________________________________ 84 Fire radio service__________________________________ 86 Forestry-conservation radio service~__86 VIII TABLE OF CONTENTS Chapter Page IV. SAFETY AND SPECIAL RADIO SERVICEs-Continued 4. Public safety radio services-Continued Highway maintenance radio service__________________ 87 Special emergency radio service_____________________ 88 State Guard radio service__________________________ 88 5.Amatem~radio scrvice__________________________________ 89 6. Disaster communications service________________________ 94 7. Industrial radio services________________________________ 95 Power radio service__ ______________________________ 96 Petroleum radio servicc~____ 97 Forest products radio service__ .____________________ 97 Motion picture radio service________________________ 98 Relay pres:,; radio service___________________________ 98 Special industrial radio service______________________ 98 Low-power industrial radio service___________________ 98 Industrial radioiocatioll. servicc___ ___________________ 99 8. Land transportation radio services______________________ 99 Railroad radio servicc______________________________ 100 Urban transit radio servicB_________________________ 100 Taxicah radio service______________________________ 101 Intercity bus radio service__________________________ 101 Highway truck radio service________________________ 101 Automobile emergency radio service_________________ 101 9. Citizens radio service__________________________________ 102 10. Enforcement unit_____________________________________ 102 11. Statistics_ ____________________________________________ 103 N umber of stations in safety and special radio services_ 103 AeronauticaL .. __ __ _ __ 104 i\'1arine________________ 104 Publicsafety__________ 104 Land transportatioIl____ 104 IndustriaL _ ______________________ ___________ 104 Amateur and disastcL_________________________ 1(.)4 Applications received in safety and special radio services_ AcronauticaL_ ___ _____ _____ __ __ _ 106 Mariuc_ ______________________________________ 105 Public safety___________ 105 Land transportation___________________________ 105 Industrial____________________________________ 105 Amateur and disaster_______ __ ___ ___ __ _ __ _ 105 Number of transmitters in safety and special radio serv- ices____________________________________________ 106 AeronauticaL__ ____ __ __ ___________ __ __ __ __ _ 106 i\Iarinc_____ __ _______________ __ _____ __ _ 106 Public safety_____________ 106 Land transportatioll___________________________ 106 IndustriaL _____ __ __ __ ___ __ ___ ___ __ _____ __ _ 106 Amateur and disastcr_________ 106 V. RADIO BROADCAST SERVICES_______________ 107 1. Television (TV) broadcast service_______________________ 107 Television IIfreeze" lifted___________________________ 107 Chronology of TV proceedings__________________ 107 Final TV reporL _____________________________ 109 Temporary TV processing procedure_____________ 110 TABLE OF CONTENTS IX Chapter Page V. RADIO BROADCAST SERVICEs-Continued 1. Television (TV) broadcast service-----Continued Other television de\'clopmellts-,- _____________________ 111 Experimental television service___ __ _________________ 112 Television broadcast auxiliary service________________ 112 2. Standard(A~f)broadcast service________________________ 113 Clear channehL ___________________________________ 113 Korth American regional broadcasting agreement______ 114 3. Frequency modulation(F~l)broadcast service____________ 115 .1. Noncommercial educational F.l\I broadcast service_________ 117 5. Facsimile broadcast scrvicc_____________________________ 118 6. Broadcast auxiliary services____________________________ 118 Hemote pickup broadcast service____________________ 118 Broadcast 81'1. service____________ 119 Developmental broadcast service_ __ 119 7. Broadcast rille changes_________________________________ 119 8. Statistics__ _ .. 121 llroadcast authorizations_ _______ ___ _______ __ ___ ____ 121 Growth of bn;>adcasting____________________________ 121 Broadcast applications .. _____ _____ _ 122 Broadcast authorization deletions_ _ _ ________________ 122 Broadcast receiving sets_________________ 123 Broadcast industry financial data_.______ 123 All networks aBd stations______________________ 123 Kat.ion-widc networks only_____________________ 124 F..\l broadcast revenues, income and investment___ 124 TV broadcast revenues, income and invcstmenL__ 125 Radio broadcast. revenues, income and investment- 125 VI. FIELD ENGINEERI};G AND ]'vlmHTORlNG______ 127 1. GeneraL____ 127 2. Monitoring_________ 128 3. Direction finding__ 128 4. T\Ionitoring surveys . __ .. ____ __________ __ _ 128 5. Enforcement through monitoring_________________________ 129 6. Interference and general monitoring_____ 129 7.Investigations________________________ 130 8. Field engineering_____________________ "____________ 132 Field engineering facilities__ .. 132 Engineering enforcement projects __ _ _________________ 134 Restricted radiation devices and industrial, scientific, and medical Rervicc .. _ ________ ___ ____ ___ __ __ _ 134 Antenna obstruction markings_______________________ 135 Antenna statisUcs_ __ __ _________________ _____ __ _____ 136 9. Commercial radio operators_____________________________ 137 Operator examinations and authorizations_ ____________ 139 Class of license_________________________________ 140 10. Inspections_ __ __ __ _____ _____ ____ __ __ __ _ _ 140 Broadcast station imlpections .. __ .. 140 Broadca.'lt stations inspected___________________ 140 Ship station inspections___________________________ 141 Kumber of ship inspections____________________ 141 Number of rleficicncy notices served____________ 141 Violations cleared during inspections___________ 141 Inspection of other radio stations~_____________141 x TABLE OF CONTENTS Chapter Page VII. RESEARCH AND LABORATORY ACTIVITIES________________________ 143 1. Technical research division_____________________________ 143 General functions_ _____ ____ ________________ __ _____ 143 Television rules and standards_ 144 Efficiency and service area study of television allocatioll_ 144 Sunspot cycle recordings_ _______ ___________________ 145 Technical consultation and advice___________________ 145 Special VHF propagation studies____________________ 145 Ad Hoc Committec________________________________ 145 Data analysis__ ____ __________________ ______ __ __ 146 Other studies_ ______ _______________________ __ ___ __ 146 Field measurements of VHF and UHF propagation____ 146 Experimental radio service_ __________________ _____ _ 146 Number of experimental radio stations___________ 148 Mobile and nonmobile transmitters______________ 148 Experimental applications~___ 148 Restricted and incidental radiation devices~___148 Coordination of technic-a.l rules______________________ 149 Industrial, scientific, and medical equipment__________ 149 Type approval and type acceptance work____________ 151 Cartographic and drafting service___________________ 152 Government-industry committees_ ___________ ____ ___ 153 Technical consulting service_ ____________ __________ _ 153 2. Laboratory divisioll____________________________________ 153 General functions~__ _ 153 Broadcasting_____________________________________ 154 Services other than broadcasting____________________ 155 Calibration of installations and apparatus~___ 155 Noncommunications equipment__ ____________ __ __ 155 VIII. FREQUENCY ALLOCATION AND TREATY ACTIVITIES________________ 157 1. General~___157 2. International frequency aUocation~___158 3. National frequency allocationc.__________________________ 160 4. Frequency registration and notification~___161 5. International treaty activities~___162 6. Interdcpartment Radio Advisory Committee_ 165 ApPENDIX~___167 1. Field offices___________________________________________ 167 2. PublicatiollS_ ___ _________ ______ __ __ __ _ 168 3. Treaties and other international agreements. ______ ____ __ _ 171 INTRODUCTORY SUMMARY 1. HIGHLIGHTS OF THE FISCAL YEAR 2. SUBSEQUENT EVENTS 1. HIGHLIGHTS OF THE FISCAL YEAR GENERAL Historically, the fiscal year 1952 marked more than a century of land-line telegraph operation, over fourscore years of ocean-cable telegraph service, three-quarters of a century of land-line telephone usage, a half century of sea and global radiotelegraph communication, a quarter century of international radiotelephony, three decades of commercial radio broadcasting, and .18 years of unified regulation of electrical communication by the Federal Communications Commission. When the Commission was established in 1934, most international communication was by cable. Now it is predominately radio-tele graph or telephone. Besides linking us with many foreign nations, radio is today being utilized for about 60 different kinds of services in our own country. As a result, the number of radio authorizations on the books of the Commission this year, for the first time, exceeded the 1,000,000 mark. Because it enters the home, broadcasting commands so much popu lar interest the average person does not realize that there are now 46 times more nonbroadcast stations than there are broadcast stations, and that the former are equally important to the public interest and convenience. In other words, more than 200,000 radio authorizations are held by public agencies and by private industry and individuals as compared with less than 5,000 stations engaged in program broad cast. The broadcast total includes about 1,200 pickup and studio transmitter links. The nonbroadcast figures, on the other hand, do not indicate the actual number of transmitters involved, since a single authorization-as in the case of a police or fire department, railroad, taxicab company, etc.--ean cover many portable or mobile transmit ters. Thus, the safety and special radio services collectively repre sent nearly 540,000 transmitters operating on the land, on the sea, and in the air. Some of these nonbroadcast services-such as those dtlWoted to pub lic safety-protect life and property. Others-like aeronautical, marine, and land transportation-speed and safeguard transportation 1 2 REPORT OF THE FE'DKRAL COMMUNICATIONSCOM~HSSIOX of people and goods. Still another service-industrial-expedites production and delivery of essential products. Also, there are com mon-carrier (for hire) services which affect the rates the public pays for telephone and telegraph facilities. In addition, more than 800,000 Commission radio-operator authori zations are now outstanding. These include 679,000 c0I11111ereial au thorizations of different classes to operators who depend upon radio for their livelihood or profession, and more than 100,000 authoriza tions to amateur radio operatOl's who al'e interested in radio ,ts a hobby or for training-. NATIONAL DEFENSE The Commission's national-defense aetivities continned toInulti~ pl)~.They cut across an fields of electrical cOlnmunication. Besi(les policing the spectrum with the Government's only monitoring net work, the· Commission is providing military, civilian defense, and defense industry with communication facilities far beyond peacetime requirements. This program, in general, consists of strengthening and expanding the Nation's communication systems to cope with the existing and any potential emergency, harnessing ,,,ire and radio facili ties to the defense effort, helping safeguard plants and operations, flnd preventing; subversive radio operation. Of pflrticlllar importance are measures to control electromagnetic radiations, both from communication and noncommunlcation sources, which could be used as "be-tuns" to guide cncm.y aircraft and Hying missiles. "Conelrad" (an abbreviation of the term "control of electro magnetic radiation") is the short name applied to this project. '''ith the cooperation of broadcasters, a plan has been worked ont for the Deparhnent of Defense for alerting hroadcast stations and controlling their operations during an alert in a manner to confuse the enemy and, at the same time, assure continued broadcast service to the public and civilian defense and other emergency communication. Conelrad plans are proceeding for the other services and are expected to be put into effect during the next fiscal year. On October 24, 1951, the President signed an amendment to the COmll11lllic~ltionsAct which strengthens and clarifies his emergency powers "ith respect to electromagnetic radiation control. An Execu tive order of December 10 thereafter empmvered the COinmission to enforce regulations in this connection. On tTune 27, 1952, the Commission finalized rules for a Radio Ama. teur Civil Emergency Service, to become effective the following Au gust 15, in ,,,hich amatenr stations and operators can rendf'l' fnrther ~mergencys~;riceby providing communication for civil-defense pur poses. March 21, 1952, marked the first year of operation of the 'Disaster Communications Service, which enables Government andnOll~ Government stations to engage in emergency communication. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 3 Other established radio services include the Special Elnergency Radio Service, the State Guard Radio Service, the Civil Air Patrol, and various public safety services concerned with the protection of life and property uncleI' normal as well as abnormal conditions. At different times the Comlnission hns liheralized the commercial radio-operator rilles bccause of the scarcity of certain classes of opera tors, especially on board ships. It has also made it easier for amateUl'H serving in the Anned Forces to keep up their licenses. IN1'ERNATIONAL The most significant accomplishment ill the intel'llutional radio field wus agreement reached at tile Extraordinary Administrative Rudio Conference of the lnternational Telecommunication Dnion (lTD), held at Geneva in the latter part of 1951, on Inefhocls to bring into world force the allocations of spectrum space to variolls radio services. Besides furnishing fl'C'quelH'y usagedHta~the Commission resumed daily notifications to the ITIT of up\y frequency assignments. The Comm.ission\ rmlio-frequellcy record now consists of 70,000 curds re fleetill~the historical use of each frequency, andon~r90,000 machine punch cards :riyjug particulars about thp presentC()llllni~sionauthori zations. The COllllllissioll assisted the Department of State in prepuring for, a,llH5 million, representing increases over 19;')0 of IO lllHl;j percent, respectively. Over 45 million telephonps are in service in this count.ry with more than 2 million added during the past year. Fiscal Ifl52 was also a record year in applications for telephone facilities, with the Commission authorizing $107.5 million in wire-line con[-:trnction and $41.5 million in microwave radio-relay constrnction. Rapid growth continued in the mobile field, with the telephone carriers providing service in 180 cities to 21,000 mobile units, up 21 percent on'r n year ago. Mobile service by miscellaneous nontelephone COlll- 4 REPORT OF THE FE'DERAL COMMl'NICATIONS COMMISSION panies is furnished in 193 cities to 13,000 mobile units, up 45 percent over a year ago. Outstanding new developments in telephony included the comple tion of the first transcontinental microwave radio relay system for telephone service as well as for Nation-wide transmission of television programs; television program transmission facilities of telephone carriers expanded to more than 30,000 channel miles; and customer dialing of long-distance toll calls began on a trial basis. The Commission initiated and conducted negotiations which re sulted in the public's telephone bill being about $16 million a year less than it "therwise would have been. In these negotiations, agreement was reached with representatives of the State commissions and the industry to change separations procedures so that $90 million inex~ change telephone plant and $22 million in associated annual expenses would be transferred from intrastate to interstate jurisdiction for rate-making purposes. This decreased intrastate revenue require ments by about $30 million a year. Partially offsetting this, the Fhow-cause aspect of the Commission's outstanding investigation of interstate telephone rates was settled by permitting a net increase of $14 million in interstate toll telephone rates. These arrang,ements also materially reduced the disparity between intrastate and inter state toll rates and eliminated several inconsistencies in the interstate toll rate schedule. Western Electric reduced its sales prices at the rate of $41' million annually to affiliated Bell companies, effective April 1, 1952. This action came after the Commission ,had expressed to Western Electric the view that its earnings might be excessive. Depreciation rates were prescribed for nine Bell companies, reducing their annual depreciation charges by $7.9 million a year. During calendar year 1951, 'Western Union, the domestic telegraph carrier, handled 189.6 million messages on its land-line system, the highest volume since 1948. As a result of wage increases which be- . came effective July 1, 1951, however, 'Western Union was permitted to increase its interstate telegraph rates, effective September 1, 1951, and intrastate rates on later dates, so as to add revenues of $10.5 mil lion a year. This increase partially offset the wage increases. A re duction in the Federal excise tax on telegrams from 25 to 15 percent on November 1, 1951, was estimated to reduce the telegraph bills of users $14 million a year. Additional rate increases were proposed by the telegraph company in June 1952, to produce increased revenue of $13 million a year to offset increased wages which became effective September 1, 1951, and additional wage increases which the company proposed to pay. At the end of the fiscal year, the new rates had not yet gone into effect. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 5 In February 1952, Western Union amended its tariffs to prohibit transmission of horse- and dog-racing news to certain classes of users, a measure designed to deny the service to gambling interests. Hear ings were held before the Commission in June 1952, and decision was pending at the close of the fiscal year. International carriers experienced continued growth in volume, with increases of 9.4 percent in telegraph message revenues and 23.6 percent in radiotelephone revenues over the previous year. Tele graph service is furnished to 84 foreign countries and oversea points and through them to nearly every other country in the world. Radio telephone service is furnished directly to 55 foreign countries and oversea points and through them to 48 additional countries. On November 14, 19ft1, the Commission authorized Commercial Pacific Cable Co. to discontinue operations. This was the only United States carrier operating trans-Pacific cables. The Commission de termined that adequate substitute service would be furnished by the radiotelegraph carriers. During the year extensive reassignments of radio frequencies were made to international carriers to comply with internationala~ree­ ments intended to obtain more orderly use of frequencies by all countries. In response to requests for rate increases, the Commission held ex tensive formal hearings on marine telegraph rates. The decision was pending. On March 5, 1952, the Commission ordered an investigation into all phases of the matter of 'Vestern Union complying with the require ment of the Communications Act that it divest itself of its cable system. Hearings were scheduled to bel,>i.n early in fiscal 1953. SAFETY AND SPECIAL RADIO SERVICES Most of the nonbroadcast radio stations are grouped in what is known as the Safety and Special Radio Services. Their more than 212,000 authorizations represent the Use of nearly 540,OGO transmitters and constitute the largest number of radio stations licensed by the Commission. Utilization of their services by individuals, industry, commerce, and State and local governments comprise a broad field of radio opera tions in connection with protection of life and property, industrial and agricultural production, transportation,disast~r,and civil defense. The more than 40 of these nonbroadcast services fall into four main categories: The safety group, with nearly 80,000 authorizations, covers the use of nearly 190,000 transmitters by the Aeronautical (42,000 trans mitters), Marine (35,000), Police (81,000), Fire (11,000), Forestry- 6 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Conservation (14,000), Hi):(hway Maintenance (4,200), Special Emer gency (1,900), and State Guard (140) Radio Services. The industrial ):(roup, with nearly 14,000 authorizations, covers the use of more than 90,000 transmitters by the Power (51,000), Petroleum (15,000), Forest Products (5,200), Special Industrial (15,000), Low Power Industrial (2,aOO), Relay Press (nearly 450), Motion Picture (nearly 200), AW'iculture (10) and Radiolocation (11) Radio Services. The land-transportation group, with nearly 6,500 authorizations, covers the use of nearly 145,000 transmitters by the Railroad (9,000), Urban Transit (1,700), Inte.rcity Bus (400), Taxicab (125,000), High way Truck (a,200), Automohile Emergency (1,500) and Citizens (8,000) Radio Services. The Amateur Radio Service hns more than 113,000 authorizations covering about the same Humber of transmitters. The relatively new Disaster Communications Service has 69 authorizations but more than 400 transmitters. The only new radio service in the safety and special category authorized during the year was the Industrial Radiolocation Service, which became operativc February 1, 1952. Interest in the Safety and Special Radio Services is attended by the fact that more than 141,000 applications were received during fiscal 1952, which was 84,000 more than in the year previous and 48,000 more than in fiscal 1950. BROADCAST Highlighting the broadcast year was removal 'of the "freeze" on the construction of new television stations which had been in effect since the fall of 1948 pefuling the outcome of the comprehensive proceedings affecting the future of video broadcasting. This was accomplished by a final report and order of the Com mission on April 11, 1952, which, hy adding 70 UHF channels to th.. then available 12 VHF channels, opened the door for more than 2,000 TV stations to ultimately serve nearly 1,200 communities in the United States and its pos..sessions, and reserved channel assign ments in 242 communities for noncommercial educational use. To make N"atiOlI-wide TV coverage possible, the Commission had to ehunge the rules with respect to station power, coverage,. separation, etc. The report fixed July 1, 1952, as the date for beginning the proc essing of applications for new TV stationsun~era temporary pro cedure designed to bring their first TV service to the greatest number of people in the shortest possible time. In general, priority was to be given places without TV stations according to their rank in popnla- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 7 tion, and applications from the Territories and possessions and for educational stations were to be processed as received. Before the freeze was lifted, 108 commercial TV stations and more than 200 TV experimental and auxiliary stations held authorizations 'Vhile the increase in the number of standard broadcast stations was not as great as during the year previous, the close of fiscal 1952 saw 2,420 authorized commercial AM stations with more than 1,000 pickup auxiliaries. FewerA~Iauthorizations were canceled during fiscal l!);"j2 than during either of the previous '2 years. Under international agreement, the Commission on June 18, 1952, proposed to add the channel 540 kilocycles to the broadcast bam1- Though signed by the President in February 1951, the new North American Regiolltll Broadcasting Agreement (NARBA) was not yet ratified by the Senate, Consequently, no action could be taken ,,,,ith respect to the so-called clear-channel !lnd daytime-skywaye hearings. There \Vati a decl'p:lsc of only 11 commercial F1\1 broadcast autho1'i zationti during the year in contrast with7i~,li1i1, HlHl Hi;' for the pre vious a years, respectively, and the number of such licensed stations grew from fji1J to ;)82 jn fiscallB52, SixF~fbroadcast stations held :tllthorizations to transmit incidental facsimile programs, Ten' new noncommercial educationalF~fbroadcast stations were authorized, bringing the total llumber in that service to 104, Forty two of these stations operate with power of 10 watts or less, Forty international broadcast stations conthllled to beflm the Voice of America programs overseas under the auspices of the Department of State. FIELD ENGINEERING AND MONITORING Field cngineedng and monitoring activities were conducted through ]line regional offices which supervised 23 district offices, 6 snboffices, 8 ship offices, and a nctwork of 19 monitoringst~tions. The field staff inspected more than 20,000 ship, broadcast, and other radio stations, as a result of which nearly 9,500 discrepancies or defi ciencies were obsen-ed. Most of these (6,810) involved ship installa tions. Examinationsgh~enin the field resulted in the issuance of 179,000 new eommercial operator authorizations, which was an increase of about 29 percent over the previous year. Owing to the establishment of several new classes of amateur licenses, more than 35,000 amateur examinations were given by the field staff in fiscal 1952 as compared with less than 12,000 in fiscal 1951. Interference complaints required more than 10,000 field investiga tions during the year, or almost 500 over the 1951 figure. Most of these (6.800) related to TV. Complaints of interference to AM re ception decreased to less than 2,800. 230960-52-2 8 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION A total of 114 illegal radio stations were located and closed in 1952 as compared with 101 in 1951. Prosecution of five cases of unlicensed operation resulted in the conviction of nine persons. A new secondary monitoring station was established near Fairbanks, Alaska, but budget limitations called for closure of the secondary monitoring station at Bay St. Louis, Miss. A mounting number of violations was observed by the monitoring Eystem, which resulted in the serving of more than 10,000 violation Hotices, an increase of nearly'1,400 over the previous year. Monitoring stations obtained more than 82,000 bearings, and were called upon to furnish direction findings for 138 lost or disabled ships and aircraft. Interference and other cases requiring monitoring reached an all time high of more than 2,700. In addition to numerous monitoring surveys to obtain frequency data, the field staff was assigned 59 new engineering projects in ad dition to 102 carried over from the previous year. Also, nearly 6,500 antenna construction proposals were studied and cleared with respect to air-navigation safety considerations. TECHNICAL RESEARCH AND LABORATORY The Commission's technical activities are devoted largely to resolv ing problems relating to wave propagation, technical standards, and various allied subjects. A factual knowledge of propagation char acteristics and equipment capabilities is fundamental to an intelligent allocation and use of frequencies. Emphasis was given during the year to VHF and UHF propagation studies and to projects dealing with technical standards. Field in tensity sunspot recordings of 17 stations, representing 10 years of data accumulated by ,each station, were analyzed. In cooperation with industry, Government, and other interested groups, much attention is being given to the growing problem of interference to radio communication from carrier current systems, industrial heating equipment, diathermy apparatus, arc welders, gar age-door openers and other remote-control devices, electric razors and heating pads and blankets, fluorescent lights, automobile ignition sys tems, and other items which emit radiation. The Commission has established standards for the control of such devices and has allocated specific frequencies to absorb some troublesome emissions, but the situation has been made acute by the mounting number of television receivers, which are particularly susceptible to interference. In order to curb potential radiation at the source, the Commission tests certain proposed equipment before it is manufactured and dis tributed. Items which are submitted to it for "type approval" include those intended for marine radio, diathermy, and industrial heating REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 9 use, as well as the monitoring equipment used by broadcast stations. Certain other equipment is offered for "type acceptance." During the year the Commission type-approved 90 items and type-accepted 32 others. Besides testing apparatus, the Commission's laboratory near Laurel, Md.,' helps draft regulations governing such equipment, makes tech nical measurements and engineering investigations in connection with the allocation of frequency bands to different communication services, and assists in establishing and revising engineering standards and regulations. A total of 369 experimental radio stations, employing more than 1,500 transmitters, were in operation at the close of the year. They were in three groups: Class 1, operated by manufacturers and organi zations to develop or improve equipment and techniques; class 2, for the development of new radio services or the expansion of existing services; and, class 3, for individuals conducting temporary experi mental projects in their own behalf. COMMISSION The following changes in Commission membership occurred during the year: Chairman Wayne Coy resigned on February 21, 1952, and, on February 28, Paul A. Walker (then Vice Chairman) was named Chairman by President Truman. At the same time, Robert T. Bartley was nominated as a Commissioner to fill out Mr. Coy's unexpired term. Commissioner Bartley. was confirmed by the Senate on March 4 fol lowing. On'March 7, 1952, the Commission elected Commissioner Rosel H. Hyde as its Vice Chairman. Renominated for another term on May 5, 1952, Commissioner Hyde was confirmed by the Senate on May 15. During the year the Commission completed the reorganization of its staff on functional lines, a process which had extended over several years. The final step-effective March 2, 1952-was creation of a Field Engineering and Monitoring Bureau and redistribution, re aEnement, and redefinement of certain other offices and functions. In consequence, the Commission now operates with four Bureaus- Common Carrier, Safety and Special Radio Services, Broadcast, and Field Engineering and Monitoring-and eight Offices, Administra tion, Chief Engineer, Chief Accountant, General Counsel, Secretary, Opinions and Review, Hearing Examiners, and Information. At the close of the fiscal year the Commission personnel totaled 1,138, which is the smallest number it has had since 1941. In fiscal 1952, the Commission operated with an appropriation of $6,585,550, which was less than that for each of the three previous ."ears. 10 REPORT OF THE FE:DERAL COMMUNICATIONS COMMISSION 2. SUBSEQUENT EVENTS COMMUNICATIONS ACT AMENDMENTS On July 16 the President signed the Communications Act Amend ments, 1952 (Public Law 554), which further amended the Communi cations Act of 1934. These amendments reqtlire various changes in existing Commission procedures and specify certain information to, be reported to Congress. COMMON CARRIERS Increased Western Union interstate telegraph rates becanle effective September 1. They were expected to add $10.5 million in annual revenue, to partially offset wage increases to 'Vesterll Union employees. In a decision of October 9, the Commission :found insufficient evi dence to presently require interconnection of "Testern Union micro wave facilities with the Bell microwave-coaxial cable system for TV· relay purposes. SAFETY AND SPECIAL RADIO SERVICES On August 13 the Commission proposea a Hew ship licensing pro cedure which would permit licensees to plan ahead for the numerous frequency changes required by international treaty. A Radio Amateur Civil Emergency Service, which enables amateurs to provide radio communication for civil defense purposes, became operative August 15. On October 1 the Commission reminded amateurs in the Armed Forces that they can take the examination for ttclvanced.class operat ing privileges by mail, before the end of the 1-ypar waiting period. As of October 15, the number of authorizations in the Safety and Special Radio Services approximated 220,000, covering the use of some 550,000 transmitters. BROADCAST Televi,n:On.-When processing of TV applications was resumed on July 1, there were on file more than 700 applications for Hew stations, 450 of which had either been amended or submitted after the April 14 annouucement of the lifting of the freeze. Between July 11 (when the first post-freeze grants were made) and' November 6, 98 uew TV stations were authorized. Of this number 9 were for noncommercial educational operation. Total TV author izations were 206. Pending applications were approaching the 900 mark. Post-freeze commercial grants made up to November 6 promised initial TV service for 65 communities: Gadsden, Mobile, and Mont gomery, Ala.; Little Rock, Ark., Fresno and San Bernardino, Calif.;: HEPORl' OF THE FEDERAL COM.MUNICATIONS COMMISSION 11 Denver and Pueblo, Colo.: Bridgeport, New Britain, and 'Vaterbury, Conn.; Peoria and Rockford, Ill.; Muncie and South Bend, Ind.; Sioux City, Iowa; Fort Lauderdale and St. Petersburg, Fla.; Ashland, Ky.; Baton Rouge, La.. ; Frederick, Md.; Fall River, Holyoke, New Bedford, and Springfield, Mass.; Ann Arbor, Battle Creek, East Lunsing, Flint, and Saginaw, :Mich.; Duluth, Minn.; Jackson, 1\1:i88.; St. Joseph and Springfield, Mo.; Lincoln, Nebr.; Elmira, N. Y.; Asbury Park and Atlantic City, N. J.; Asheville and Ralcigh, N. C.; Akron, 1\1:assilon, vVarren, and Youugsto,vn, Ohio; Portland, Oreg.; Bethlchem, Harrisburg, New Castle, Reading, Scranton, Wilkes-Barre, and York, Pa.; Columbia and Charleston, S. C.; Chattanooga, Tenn.; Amarillo, Austin, El Paso, Lubbock, and 'Wichita Falls, Tcx.; Lynch burg and Roanoke, Va.; Spokane, 'Vasil.; San Juan, P. R.; and Honolulu, T. H. The first post-freeze TV grants (July 11) were for three Denver, Colo., commercial stations. The first TV station to go on the air since the freeze lift was KFEL-TV, Denver (July 19). The first UIlF video station to begin operation was KPTV, Portland, Oreg. (September 20). The first Territorial TV grant was for a commer cial station at San Juan, P. R. (July 23). The first noncommercial educational TV grant went to the Kansas State College of Agriculture and Applied Science, Manhattan, Kans. (July 25). Subsequent educational grants to October 15 were to the Univcrsity of Southel'l1 Califol'l1ia, Allan Hancock Foundation, Los Angeles, Calif.; the Board of Regcnts, University of the State of New York, for stations at Albany, Binghamton, Buffalo, New York City, Rochester, and Syracuse, that State; and the University of Houston and Honston Independent School District, Honston, Tcx. Hearings on contested TV applications, on a city-by-city basis under the temporary processing procedure, began October 1. On October 15 the Commission snspended the processing of competitive applica tions for new TV stations facing hearing so that, for the time being, it could concentrate on the many pending noncompetitive TV appli cations. By November, more than 19 million TV sets were estimated to be in lise, and nearly 30,000 miles of Bell System coaxial and microwave facilitics were serving 110 TV stations in 67' cities. Frequency moduZation.-The first FM Territorial grant was made on September 18 for a commercial station at Honolulu. As of November 1, there were 641 commercial and 110 noncom mercial educational FM authorizations. Amplitude mod"Zation.-On the same date, outstanding authoriza tions for AM stations totaled 2,506. 12 REPORT OF THE FEDE'RAL COMMUNICATIONS COMMISSION COMMISSION Commissioner Robert F. Jones resigned on September 19 and, on October 6, the President appointed Eugene H. Merrill to fill out Mr. Jones' term which expires June 30,1954. Commissioner Merrill took office on October 14. Four additional hearing examiners were appointed since the close of the fiscal year, bringing the total number of examiners to 12 as of October 15. The first foreign national completing a course in telecommunication studies with the Commission under the Government's point 4 program of foreign economic assistance was a representative of Honduras (Sep tember 19). Several members of India's Government and representa tives of Pakistan completed the course thereafter. CHAPTER I-GENERAL I. AUTHORITY AND PURPOSE 2. COMMISSION 3. FUNCTIONS 4. COMMISSIONERS 5. STAFF ORGANIZATION 6. PERSONNEL 7. APPROPRIATIONS AND EXPENDITURES 8. LITIGATION 9. LEGISLATION 10. HEARINGS 11. CORRESPONDENCE. RELEASES. AND PUBLICATIONS 12. LICENSES AND OTHER AUTHORIZATIONS 13. APPLICATIONS AND OTHER FILINGS I. AUTHORITY AND PURPOSE The Federal Communications Commission was created by the Com munications Act of 1934 and administers that act, as amended. The Commission was established "for the purpose of regulating in terstate and foreign commerce in communication by wire and radio so as to make available, so far as possible, to all the people of the United States a rapid, efficient, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges, for the purpose of the national defense, for the purpose of promoting safety of life and property through the use of wire and radio communication, and for the purpose of securing a more effective execution of this policy by centralizing authority heretofore granted by law to several agencies and by granting additional authority with respect to interstate and foreign commerce in wire and radio communication." ? COMMISSION As an independent Federal agency established by Congress, the Commission reports directly to Congress. It is composed of seven Commissioners appointed. by the President, subject to confirmation by the Senate. The Chairman is designated by the President without Senate confirmation; the Vice Chairman is elected by the Commission membership. The normal term of a Commissioner is 7 years. 13 FEDERAL COMMUNICATIONS COMMISSION Organization Chart as of June 30, 1952 OFFICI<: OF HEARIXG EXAMINERS OFFICT'J OF rl'HB SECRETARY BROADCAST BUREAU Aural Facilities Division 'l'eJevh;ion Facilities Divi;;ion Renewal and Transfer Divi-sion Hl'ariug- Division Rnlel; H1Hl StunllllrLls DivisioJL LlceIl8e Uivh;iotl Library Division )Jinute Division Docket>! Division Techni('lll ASOlh;tullce Division Intl:'rnational '1'1'1", cOlllllLllnicn ti()llSSettll'lllent~ Division I OFFH'}jl"i8i(ll1 Pnhlie Safpty and Alllat"ur Ilid"ioll All\hori'wti(ll\Al\aJ:y:;i~ Division Liti)!fLtion Division Ll",:.:'is]utioll, 'l'rf'atif's, an(1 ltll]PS IHvisioll OFPIC}J Olj' GTilNERAL (:OU:SSNL 8,\l<'E'J'Y AX1) 81'I<:('IAL H.\D10 8I·:RYICl·:8H{1IU~Alj OFFJCD OF CHIEF ACCCJUSTAXT CO:i\DIO~CAHHmn. BCREAV Accounting- Ss"tems l)idsillll EconOlllics Di\'h;joll Olliep of Field Cooruinator International Divisioll rre-J,'grnph J)j\'iJ';joJJ 'l'elephone Divil;ioll Statistical Branch r.icense Branch 'I'HE CO:'\L:\HSSIQN ,--------------I-----l ('H.URUAN I ~====r===~--.---- OFFICE OF CHI1!oll Frequency Allocation and 'l'reaty Division Laoorator:r. J}il'lsIoIl 'l'echnkal Hescafch Division OFFICE OF ADMIKISTRA'l'ION FIELDI'~NGlXEl'Jl{IKGA:r-.ilJ MONITORI~GHUH.l':AU REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 15 3. FUNCTIONS Commission regulation covers three major fields of communication: Interstate andi~lternationalcommon carrier operation by wire and radio (telegraph, telephone, and submarine cable); nonbroadcast radio facilities (safety and special); and broadcast (program) stations. This involves supervision of rates and services of telephone and telegraph companies subject to Commission jurisdiction; aJlocating radio bands for different services and assignment of frequencies to individual stations; licensing of radio transmitters and radio opera tors; encouraging more effective and widespread utilization of radio; promoting protection of life andprop~rtythrough the use of radio on land, water, and in the air; participating in the formulation and domestic administration of wire and radio provisions of treaties and other international agreements to which the United .States is a party; and helping coordinate the many forms of electrical communication to the national security program. The authority of the Commission extends to the United States Terri tories and possessions, but not to the Cam,l Zone. Communications facilities operated by the Federal Government are not subject to its jurisdiction. The act limits licensing by the Commission to citizens of the United States, and denies the license privilege to corporations of which any officer or a director is an alien, or of which more than one-fifth of the capital stock is owned or controlled by foreign interests. The Cmnmission exacts no fee or charge of any kind in connection with its regulatory or licensing functions. 4. COMMISSIONERS The Commissioners function as a. unit, directly supervising all staff activities and making all importa.nt policy determinations. From time to time, committees of Commissioners are designated to make special studies and supervise particular undertakings. The perform ance of specifled functions is dele_gated to individnal COlnmissioners, and members of the staff as units or individuals. Changes in the membership of the Commission during the year were as follows: Chairman 'Vayne Coy resigned on February 21, 1952, and on February 28 Paul A. \Valker (then Vice Chairman) was named Chairman by President Truman. On that same day the Presi dent nominated Robert T. Bartley as Commissioner to fill out Mr. Coy's unexpired term ending- J nne 30, 1958, and he was confirmed by the Senate on March 4. On March 7, 1952, the Commission elected 16 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Commissioner Rosel H. Hyde as its Vice Chairman. Renominated for another 7-year term (to June 30,1959), by the President on May 5 following, Commissioner Hyde was confirmed by the Senate on May 15. 5. STAFF ORGANIZATION During the year the Commission completed the reorganization of its staff on functional instead of professional lines. The final step, effective March 2, 1952, made these changes: Created a Field Engineering and Monitoring Bureau with four divisions-Engineering, Inspection and Examination, Monitoring, and Field Operating-and created a new district field office to serve the District of Columbia and adjacent counties in Maryland and Virginia; Redistributed the functions of the Office of the General Counsel between two divisions-Litigation and Legislation, Treaties and Rules-and abolished, as of March 30, 1952, the only remaining field office of the Office of the General Counsel, at Los Angeles; Realined the Office of the Chief Engineer into three divisions Frequency Allocation and Treaty, Technical Research, and Labora tory-and retained supervision of various spccial engineering proj ects under the Chief Engineer; Redefined the duties of the Office of the Chief Accountant with two divisions-Accounting Systems and Economics; In the cases of these advisory professional staff offices (General Counsel, Chief Engineer, and Chief Accountant), the Commission provided for Assistant General Counsels, Assistant Chief Engineers, and Assistant Chief Accountants, as the case may be, to be in charge of their respective divisions; Changed the name of the Bureau of the Secretary to the Office of the Secretary, and designated its component divisions as Docket, Minute, Library, and Technical Assistance; Transferred the broadcast license functions from the Office of the Secretary to the Broadcast Bureau; Transferred service, mail and files, messenger, and certain records supervision from the Office of the Secretary to the Office of Adminis tration, which will now have four divisions-Budget and Fiscal, Or ganization and Methods, Personnel, and Administrative Services; Transferred the technical assistance functions from the Office of the Chief Engineer to the Office of the Secretary; Transferred the reference room of the Common Carrier Bureau and the library of the Technical Research Division of the Office of the Chief Engineer to the Library Division of the Office of the Secretary; REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 17 Transferred certain functions of the Experimental and Miscella neous Branch of the Office of the Chief Engineer to the Technical Research Division in the same office; Changed the name of the Office of Formal Hearings to Office of Hearing Examiners; • Changed the name of the Office of Formal Hearing Assistants to Office of Opinions and Review. The over-all reorganization program was initiated by the Commis sion as the result of a long-range study of its administrative needs. Establishment of the Common Carrier Bureau (1950), the Safety and Special Radio Services Bureau (1950), and the Broadcast Bnreau (1951), with their resultant organizational changes, was effected through the Commission's own management studies. On June 21, 1951, the Commission contracted with McKinsey & Co., management con sultants, to study the remaining phases-those dealing with field activities and staff offices. Creation of the Field Engineering and Monitoring Bureau is the result of the first of the McKinsey stndies, and changes in the staff offices are based on its second stndy. The entire reorganization was effected through transfer of personnel. In consequence, the Commission's staff organization and related general activities are: Office of the General Oounsel, whose function as chief legal advisor to the Commission covers matters involving litigation, legislation, rule making, international treaty and other matters, and general adminis trative activities presenting legal problems; Office of the Ohief Engineer, whose duties deal with the engineering phases of frequency allocations and related treaties, radio rules and standards, technical research and experimentation, and study of radi ation devices with a view toward minimizing interference; Office of the Ohief Accountant, whose work includes matters of ac counting regulation and economic and statistical research; Office of the Secretary, which has charge of official records, process ing of correspondence and official documents, administration of the library and certain functions relating to the internal management of the Commission; Office of Administration (exeeutive officer), under the direction of the Chairman, reviews the programs and procedures of the Commis sion and handles its budget and personnel work; Office of HeaTing E,mminer8, which conducts hearings and prepares and issues initial decisions; Office of Opinions and Review, which, under Commission direction, advises and assists in the preparation of decisions; Office of Information, which is the central source of public releases and information; 18 REPORT OF THE FE'DEHAL COMMUNICATIONS COMMISSION Common Carrier Bureau, which supervises telephone and telegraph matters; Safety and Speoial Radio Services Bureau, which supervises non broadcast radio services other than common carrier; Broadcast B'ureau, which supervises the broadcast services; Field Engineering and Atonitorinq Bureau, which is responsible for field engineering activities, including station inspections, surveys,. monitoring, direction finding, signal measurement, operator examina tions, and certain enforcement activities. An organization chart of the Commission, as of May 1952, appears as a separate page of this report. 6. PERSONNEL A total of 1,138 persons were in the 'employ of the Commission as of June 30, 1952. This was a reduction of 67 since the previous year. Approximately one-third of all Commission employees are in the field. The distribution of personnel was as follows; Office or Bur('3U Washinliton .Field Total Commissioners . "_ _ _ OffiCl.l of Opinions and Review . ..... Office of Hearing Examiners __ ". _ Office of Information _ Officc ofAdmini~tration. __ OffiC(' of~ecretary__ _ Office of General CounseL _ OJIicr of Chief Accountant OfficcofChiefEnginper . _ Common Carrier Bureau . _ Safety and Special Sen-ices Bureau Brondcast Bureau .__ ---- --- i Field Enginecringand Monitoring Bureau . _ ---------~---~~-~---I---I--- 31i fl 35 80S 15 0 15 4 0 4 I~0I~ 37 0 37 17 0 17 24 0 24 fH I,'i I 109 81 31 I ll2 IJ3 0 113 131 I 0 131 .'i4 I 350 404 TotaL •-----i~--742I-----396--1~38: 7. APPROPRIATIONS AND EXPENDITURES The Commission received an appropriation of $6,585,550 to cover all of its operations in the 1952 fiscal year. This, despite an increased workload, was less than the appropriation for each of the three pre ceding years. A tabulation of its working appropriations for the previous 10 years follows; 1901 $6,600,000 1946 $5,954,900 1900 6,729,345 1945 6,312.343 1949 6,717,000 1944 7.884.914 1948 c___________ 6,240,000 1943 7,777,135 1947 6,236,900 1942 5,655,924 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 19 A breakdown of the Commission's fiscal 1952 income and expendi tures is set forth below: AppJ'opriation Regular appropriation (sal- aries and expenses) $6,116,650 SupplementaL____________ 468,900 Total funds avai.l- ahle 6,585,550 Obligation8 Personal services $5,957,642 Travel___________________ 76,370 'l'ransportatioll of things___ 13,998 Communication sen'ices___ 152, 183 Rents and utilities________ 48,247 Printing and reproductioD_ 29,225 Other contractual serv- ices _ Supplies and materials _ Equipment _ Refunds, awards, and in· demnities _ 'I'otal obligations _ Savings, unobligated bal- ance _ 62,312 137,295 107,419 20 6,584,711 839 Total 6,585,550 8. LITIGATION Section 401 of the Communications Act confers upon the district courts of the United States jurisdiction to enforce the Connnunica tions Act and the orders of the Commission. Judicial review of Com mission actions is provided for in section 402 of the act. Section 402 (a) gives jurisdiction to the courts of appeals (nnder Public Law 9(H, 81st Cong"effective January 28, 1951) over suits to enforce, enjoin, set aside, annul, or suspend any order of the Commission with the exception of orders granting or refusing applications for licenses. Section 402 (b) provides for direct appeal from such other orders of the Commission to the United States Court of Appeals for the l,)is trict of Columbia Circuit. The great majority of cases involving re vie,y of Commission action is instituted in the latter court. During the fiscal year, there were 18 cases in which the Commission waS a party in the Federal courts, Eight of these were instituted dur ing that period-two in the Supreme Court, five in the Court of Ap peals for the District of Columbia Circuit, and one in the Court of Appeals, Third Circuit. The other 10 cases were pending at the be ginning of the year. The Supreme Court denied certiorari in the one case brought before it on petition for review of a decision of the Court of Appeals for the District of Columbia Circuit affirming the Commission. In the latter court, the Commission was sustained in one case and reversed in three cases, and one case '''as dismissed by agreement of the parties. 20 REPORT OF THE FEDE'RAL COMMUNICATIONS COMMISSION As of June 30, 1952, one case was pending in the Supreme Court, five cases in the Court of Appeals for the District of Columbia Cir cuit, one case in the United States Court of Appeals, Third Circuit, and five cases were pending in United States district courts. The status of litigation for the fiscal year may be tabulated as follows: Court Decisions I Decisions affirming reversing Commts- or remand- sian lug case Dismissed by [ij!ree ment of parties Cases pend in!!: June 30, HM2 , 2 9 Supreme COarL •~_ COllrt of Appeals for District of Columbia Circuit, uoder sec. 402 (b) _ United States Courts of Appeals including District of Columbia Circuit, I1llder 800. 402 (a)_____________________________________ 2 ._______ 1 District courts •• •• ---'-1--'-"-"-"-"-'-1''_'_"_·,_,·_"_"-1'_'_"_,·_··_"_",1 ' TotaL ._. .. 18 2 3 12 The following cases decided during the fiscal year were of particular interest: 1. InSoripps,Howard Radio, Inc. v. Federal Oommumioati01Ul Oom mission (342 U. S. 830), the Supreme Court denied certiorari, refusing to review a decision of the Court of Appeals which had affirmed a decision of the Commission granting a broadcast station in Cleveland, Ohio, to Cleveland Broadcasting, Inc., and denying the appellant's mutually exclusive application for the same facilities. The principal contention of the petition for certiorari was that the Commission had improperly decided against petitioner because of its newspaper affiliation. The Court of Appeals had sustained the Commission's authority to consider diversification of the media of masscommuni~a­ tions in choosing between mutually exclusive applicants. 2. In Indeperuknt Broadcasting Oompany v. Federal Oo111l1TUUJl!ica tiona Oommission (- U. S. App. D. C. -,193 F. 2d 900 (1951», the Commission had denied a construction permit for an FM station and a station license for an AM station to an applicant who, the Oommission found, had misrepresented material facts Rnd did not possess the requisite character qualifications. Knowledge of these matters came to the attention of the Commission after the AM con struction permit had been granted and the hearing was held on the AM station license application together with the FM construction permit application. The Commission found that the applicant, con· trolled by Rev. J. Harold Smith, had misrepresented material facts concerning stock ownership, its assets and liabilities, and the business interests of Smith. It also found Smith had used intemperate lan guage in his writings and broadcasts, that he had a habit of attacking REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 21 the honesty and sincerity of those with whom he disagreed, and that there was other evidence he lacked the character to be a licensee. This decision was affirmed by the Court of Appeals which held the record justified and supported the findings, that the procedure followed was proper, and that the Commission'was not limited to a procedure of revoking the AM construction permit. The court also held that other contentions of applicant, including a claim that the action of the Commission violated the first and fifth amendments, were not grounds for reversing the Commission's decision. 3. In American Broadcasting Oompany, Inc. v. Federal Oommvwni catiO'lUJ 0 ommi88ion (Albuquerque Broadcasting Company, Inter venor) (- U. S. App. D. C. -,191 F. 2d 492 (1951», the Commis sion had granted Albuquerque special service authorizations to use the frequency on which the appellant regularly operated as a class I-A station. These special service authorizations had been issued since 1941. Albuquerque had been moved from its regular assign ment pursuant to the North American Regional Broadcasting Agree ment and the Commission had been unable to determine a new perma Mnt frequency assignment for it due to problems concerned with the NARBA shifts, the clear channel hearing, and frequency measure ment considerations. The Court of Appeals held that a spe",ial serv ice authorization permitting operation on a frequency other than that specified in a station's license was not illegal per se, and that, since section 312 (b) of the Communications Act (now sec. 316) does not necessarily require the same type of hearing in all types of factual situations, the Commission might, in appropriate circumstances, grant special service authorizations without affording a hearing to existing licensees who would receive interference as a result. The court went on to hold, however, that the propriety of the original special service authorization was not in issue and that the Commission could not continue such authorizations indefinitely without affording other· affected licensees an appropriate hearing. 4. In Democrat Printing Oompany v. Federal OO1llJ1llJ1JJnwatio'fl1l Oommzission (- U. S. App. D. C. - (1952», the Court of Appeals reversed the Commission's decision granting a construction permit to Texas Star Broadcasting Co. for a new standard broadcast station in Dallas, Tex., upon the appeal of Democrat Printing Co., the licen see of station KSEO, Durant, Okla., which would have suffered ad jacent-channel interference from the proposed operation. The court held that the Commission had erred in failing to make a comparison of the proposed program service of Texas Star with that of KSEO in the area of interference, ·which was of substantial size and popu lation and where the Texas Star signal would be substituted for that of KSEO, since this comparison was a necessary factor in determining 22 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION whether the grant to Texas Star was in the public interest despite the alleged interference to KSEO. The court also held that the Com mission had improperly permitted a deviation by Texas Star from one of the Commission's Standards of Good Engineering Practice without requiring fulfillment of the requirements set forth in the 8tandard itself as conditions for such deviation and without making any finding as to why these requirements need not be met. The matter was remanded to the Commission for further proceedings. 5. In Beaumont Broadcasting Oorporation v. F edcral Oommwni catioru; Oo-mmi88W% (- U. S. App. D. C. - (1952)), the appellant sought review of a Commission decision granting an application of Ozarks Broadcasting Co. for an increase in power. The court held that the Commission properly granted a previous application by the appellant subject to possible interference which it might receive from a later grant to Ozarks, since appellant had been offered a full hear ing at that time, and that appellant therefore was not entitled to a comparative hearing on the Ozarks application. The court also held that a deviation from the Commission's Standards of Good Engineer ing Practice is not per se illegal since the standards are flexible, aud that the Commission may, as it did here, make a grant which involves a departure from the standards when the public interest requires. However, the court held that the Commission had erred in refusing to admit engineering evidence sought to be introduced by appellant concerning a method of operation other than that proposed by Ozarks which it was contended would have avoided objectionableInterference the Ozarks operation would cause, since the public interest might not be served by a grant to Ozarks with attendant interference if ouch interference could be eliminated by an antenna design not ad vanced by Ozarks. The court noted the absence of any Commission rule requiring submission of such evidence in advance of the hearing. The case was remanded to the Commission. 9. LEGISLATION Two laws were enacted during the fiscal year by Congress which directly affected the Commission. The first of these was Public Law No. 200, Eighty-second Congress, which was approved on October 24, 1951, and which had been introduced by Senator Johnson of Colorado as S. 537. This law clarified the scope of the President's emergency powers contained in section 606 (c) of the Communications Act and added a new section 606 (h) to the act which~rovidescriminal sanc tions which may be applied against persons who violate any orders issued by the President pursuant to section 606. The new law author izes the President to control or use devices emitting electromagnetic radiations capable of being utilized by an enemy for navigational purposes. [See chapter on national defense.] REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 23 The second law enacted by Congress which affected the Commission was Public Law No. 320, Eighty-second Congress, which was intro duced by Congressman Norblad as II, R. 5369 and which was approved on April 15, 1952. This law authorized the Commission to convey to the State of Oregon two tracts of land located within the boundaries of the Commission's primary monitoring station in Portland and to accept, in exchange for those tracts, another parcel of land from the State. The most important legislation nffecting the Commission which was considered by Congress during the fiscal year was...S. 058, introduced by Senator l\IeFarland, which would extensively amend the Com TInmicatiolls ..Act, This bill would make significant substantive changes, in the COlllmunicatiollS Act and \vould substantially alter the Commission's operating procedures and organization. The bill was passed by the Senate. on February 5, 19tH, and, after extensive hearings, was passed by the House on June 19, 19;"')2, and submitted to a conference COlTl:mittee of the Senate and the I-Iouse."1 The Commission resubmitted to the Bureau of the Budget various legislative proposals for consideration during the second session of t.he Eighty-second Congress. These proposals included (1) an Hmendment to seetio!13, (go) of the Communications Act which would authorize the(~~nl~;issionto purchase land and construct buildings llecessar,Y for mOllitoring and research purposes; (2) an amendment to section 31H of the Commlmieations Act, which would simplify the procedure for obtaining licenses for certain types of radio stations Ly eliminating the existing requirement of first securing a construc tion permit from the Commission; (0) an amendment to section 410 (b) of the Communications Act to provide for reimbursement to the Commission by the States for the salary and expenses of Commission <>l11ployees who are made available to State commissions to act as consultant:-; or expert witnesses in common carrier regulatory matters pending before~uchconlmissions; (4) the addition of a wire and radio fraud statute to the rnit"d States Criminal Code; and (I;) an amendment to..§.lli1i2n)HQ. of the Conmw1l:ications Act to provide that bl'mulc:tst statiolllicensees Ill:Ust afford equal opportunities to use their fat'\litl(,'S toper~Oll:'Sspeaking -for or against a legally qualified candi date- for public office, as well as to the candidates themselves, as is prtlsently provided. This amendment would also lwovide that equal time must be afforded for the presentation of opposing views on a Fublic question to he, voted upon at an,Y public election. Inaddition~ this proposal wOllld provide that station licensees are not liable for on)' mnterial broadcast pursuant to the proviHions of section 315. . 1 Thp ('onfpfl'nc{' C(lIl\tllitt.... ref\{)rtl'd Hw hill on Jnly 1. lfi-;)2, and the Sl"natf" 311d H(JU!>£, tlllo!,fp(I 11'(- ('ollf('I'PI)('f' rf'port on Jlllr :!, 1(};;2, Thf' bfll Wl\S finnlI>' approved as Public I,IIW Xo. 5,')4, 82d Cong., on Jill>" 16, lfl52, 230960-52--3 24 REPORT OF" THE FEDEHAL COMMUNICATIONS COMMISSION The Commission's proposals with respect to amendings~tio!.'4 (g} of the Communications Act and adding a radio- and wire-fraud statute to the United States Criminal Code were included in S" 658, intro duced by Senator McFarland. Numerous bills were introduced in Congress which would have amended section 315 of the Communica tions Act relating to the use of broadcasting facilities by candidates for public office. The Commission submitted comments on all of these bills but no congressional action has been taken. Various other legislative proposals were considered by Congress which directly or indirectly affected the Commission. Hearings were held by the Senate Committee on Interstate and Foreign Commerce on four bills (S. 1563, 1564, 1624, and 2116) which propose to restrict the use of communications facilities for the interstate transmission of gambling information. The Chairman and General Counsel of the Commission participated extensively in those hearings and the four bills were subsequently reported to the Senate, where no further action has been taken. Several bills were introduced which proposed the establishment of a National Citizens Advisory Board on Radio and Television. Other bills \vhieh were considered dealt with various aspects of the problem of allocating television channcls and of provid ing channels for use by noncommercial educational television stations. In addition, there were numerous proposals concerning television and radio programing including resolutions calling for an investigation to determine whether such programing includes immoral or otherwise offensive matter. During the fiscal year the Commission submitted to Congress and the Bureau of the Budget reports on more than 45 proposed bills which were concerned with the Commission's functions, in addition to draft ing numerous legislative proposals and participating in several con gressional hearings. 10. HEARINGS Broadcast matters continued to predominate the Commission's hear ing schedule, with standard (AM) broadcast accounting for more than 80 percent of the cases disposed of during the fiscal year. Docket statistics for that period follow: Class Broadcast: AM~~__~_ FM __~••_. _ TV~._ Other •~_ Safety aud speciaL. • Common carrier . _ Joint aud generaL __ • _ TotaL.• _ Pendinl'::, Designated Dis;Josedof Disposed. of Pending, JIlIlI':~O,fur ilear- without fJllowlng June 30, 19051 Illg hearing hearinj{ 1952 260 140 105 85 210 7 8 7 1 7 179 , 175 4 , 5 0 3 0 2 11 3' W 3 26 69 17 11 22 53 10 32 15 4 23 541 243 336 ! 119 329 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 25 11. CORRESPONDENCE, RELEASES, AND PUBLICATIONS A total of 1,116,000 pieces of correspondence in the form of letters, telegrams, etc., were received or dispatched through the Commission's Mail and Files Branch during the year. Of this number, about 776,000 were incoming and nearly 340,000 were outgoing. Regulatory and administrative procedure required the issuance, during the same period, of mimeographed publie notices, orders, decisions, opinions, and rule making. These necessitated the use of approximately 41,000 stencils, 7,700,000 sheets of paper, and 12,411,000 impressions. The Commission issues no press releases and main tains no public mailing lists. The Commission makes no public distribution of its printed publi cations. The latter are processed by the Government Printing Office and are sold by the Superintendent of Documents. They include rules and regulations, standards of good engineering practice, bound volumes of decisions and orders, annual and special reports, statis tics of the communications industry, and miscellaneous publications. A list appears in the appendix. 12. LICENSES AND OTHER AUTHORIZATIONS For the first time, the number of active authorizations on the records of the Commission passed the 1 million mark during fiscal 1952. This was 123,000 more than in the preceding year. In fiscal 1952 approximately 214,000 nonbroadcast radio authori zations were outstanding. They covered the use of almost two and one-half times that many transmitters. Broadcast authorizations totaled nearly 4,800, including 1,200 auxiliary transmitters. Com mon carriers held nearly 1,000 radio authorizations, and experimental radio authorizations exceeded 350. Radio operator authorizations exceeded 800,000, including 679,000 commercial operator authorizations, over 100,000 amateur operator authorizations, and more than 100,000 special aircraft radiotelephone operator authorizations. 13. APPLICATIONS AND OTHER FILINGS During the year the Commission received more than 357,000 appli cations of all kinds, or 89,000 more than in fiscal 1951. Of this total, over 200,000 concerned commercial radio operators, over 140,000 in volved the nonbroadcast services, nearly 5,700 had to do with broad cast, and more than 3,500 were from common carriers. These figures do not include filings of a legal nature, periodic reports, and tariff schedules. During the year, common carriers and holding companies filed more than 29,500 tariffs and nearly 2,100 annual reports which required Commission attention. ThisWas 10,400 more tariffs and about the same number of annual reports filed in fiscal1951. [ Page 26 in the original document is int.rttiohally blank ] CHAPTER II-NATIONAL DEFENSE 1. GENERAL 2: DEFENSE ACTIVITIES 3. CONTROL OF ELECTROMAGNETIC RADlATIO:\S 4. MISCELLANEOUS DEFENSE AND PROTECTIVE SERVICES l. GENERAL .An efTicient cOlnnnmicatioll systl'lH is invaluable. In time of peace but is vital in time of hot or ('old war. Inch'ed, the nelTe system of the defense of tlw Katioll is l'CPl'C'sC'llted by its communication facil ities. The;y must not only be. adeqllate for their rcsI)('ctivc llOl'lllltl services but must be- integrated into natiollul awl regional plans for operation l1I}(lt~rthreat of armed attack 01' other emergency. Practically en'ry COllllllllllicatlon service-whether it is wire, radio, or submarine cable-is a part of the program for the military defense and tIw protection of civilian life and property. This extends from tile broadcast services to the services rendered by public safety agencies, such as police and fired('prs such failure, shall, upon conviction' thereof, be punished for such offense by a fine of not more than $1,000 or by imprisonment for not more than one year, or oath, and, if a firm, partnership, association, or corporation, by fine of not more than $5,000, except that any person who commits such an offense ,vith jntent to injure the United States, or with intent to secure an advantaA"e to any foreign nation, shall, upon conviction thereof, be punished by a fine of not morc than $20,000 or by imprisonment for not more than '20 Years, -or both. An Executive Order of December 10, 1951, empowers the Federal Communications Commission to enforce regulations in this connection. The main text of this Executive order reads as follows: SECTION 1. The authority vested in the President by section 606 (c) of the COlllmunicatfolis Act of 11)34, as amended, is hereby delegated to the Federal COllllllunications COlllmission to the extent necessary for preparing and putting into effect plans with respect to radio stations as defined in section 5 hereof, 'f'xcept those owned and operated by any department or agency of the United Stutes Government, to minimize the USe of the electromagnetic radiations of SUch stations, in e1;ellt of attack or of imminent threat thereof, as an aid to thenavi~ gation of hostile aircraft, guided missiles, and o·ther devices capable of direct attack upon the United States. The authority SO delegated to the Commission shall be exercised subject to the follOWing limitations: (n.) Nothing in this order alwll be construed as authorizing the Commis. sion to exercise any authority with respect to the content of station programs. (b) Nothing in this order shall be construed to authorize the Commission to take over and use any radio station or to remove the apparatus and equipment of any radio station. (c) The plans of the Commission for exercising its authority under this order shall not become effective until they have been concurred in by the SeC1"l.:~tal·yof Defense and the Chairman of the National Security Resources Board. 30 REPORT OF THE FEDERAL COMMFNICATIONS COMMISSIOK SIOC'l'lON 2. \Vith respect to ratUo stations belongin;! to Hllll operated by ony department or agency of the Cnited States GO\"('l'l1111ent, the hend of each gOyel'll ment departltlent or ugeney the stHtiollS of whic.'h are innJ]Yed shall, pursuant to the authority yested in the Prpsi!lpnt by :::edioll 3t") of the COlllmllnieations Act of ln3-i, us amended, prCllUl'e and Jlut into etfect sl1ch Jl\;llIS as may Ill' 1ll'('eRsary to minimize the use of electrolllugnl'tk radiation of these stations in ('yent of attaek 01' imminent threat thereof as an aid to hostile uircl'aft. guidell missiles, awl (l[1H'1' devices eapublc of direct attack UllOnthf~LTnited States. Such plans shall not lJc('ollle effedive until they have been ('olll.'lIl"red in by the Secretary of Defensean~lllw Chall'm.an uf tlw~aliona\Sctul'ity B.psoluecs Board. ~ECTWj\'3. WIH-'llpn q ', pun..:uant to tilt-'provi~iollSof tbi:...: order, ally mdio station :-.lmllhan~hel'll rt'llllit'ed toI'P or ally radio~tati()llhan' bppu intCl'fl'red with. slH'h :...:tntioll shall be allo\\,prl to 1'l'l'ume operation:...: or ri'tunl to llOI'llW1 oll('l'a!inlls, us the (·a:...:e ltl:ly he, at tIll' earlipst possihle titll(, ('Ollsi:-..:tpnt with the natioun] sl'curit..... III exl'l' ('it'ill~t1'l.e Huthority dclf';'!:I1p(1 by tlli:,; ol'th-'l', tlue(~onsi(lt\l'ationshalT lw !-iiyen 10 ('iyil dp[!'lll'P alltl other llHtiollill-:-lPI'Ul'it,\" n:,quil'l'lllf'uts, SEl"I']().~4, T1ll' 1'('(\('l'a1 COlJllllllllicatiollS ('Ollllllissioll, till'~~{'erptal'Yof Dpfense, and Ow 11('(1.(1 o( I'itd, ;,:;o\·"l'mn,'lI.t l!i.:'jlartl\\\'I1\ \l\' ag\'ll\'Y \\w sh\lion:<. 01: which 11I"e inYoIYt'(l, Hn' lll-'!'t'lty allthol'iZt,tl to iSH1l' appru}J1'i;\1I' l'u1l':-l, regulntiom,;. orill'l's, Ulltlill~tl'u('\ioIlS,II1Hl10 tak!' s\lch otlH'l' W"tiOll a:-..: lIlay lJ:' IlP{'p:-"::-":,lr,\", to assure the tilllPI,\" ;,~uitnhlefor U;-:l' tiS a IIf\Yi;.!;ntional ahl beyond fiye mill's, SEt'TWX O. (a) Any referf'll('e l)('I'(';n to the Fl'dcral Comillunieations Com mis:-:ion slwll,(,:V~f'vtfor the plll'po:"e of issuin,:i l'lll\'s alld I'egulations,b(~d(~ellled to illdllde tIlp Cllflinnan or allY other lllC'mber of the COlllmission as the Com llIis.'i{)l( !lIlly tll'sigtl:llt,: an.... rpf'er('llee to the Secretary of Defense shall be flpl'll1('d to indll!l" lIlt' NC('l'('tar,Y OJ' s]\('ll 11('1',,011 ns he ltW,'· desi.!..;nate; and any rpf'Pl'eIH'p to the Chail'lllnn of the Natiollal~('('llri1yHesnll1'('I'~Board~hallbe deemed to include the Chainnan or such lwrSoI\ 't<,iull Jll:ly issue Vllnmant to this order slwll hei~slI(-'dhy the COJllmissiOll, exel'vt that tlu-'COlllllli~siolllllay }ll'ovitle thaI, in tJlPeW~lltof hostile udionn~ain"tthe UtlU"d Stall's or illiminpnt thrcat thereof, sneh rules and regulation:-..: Illay be iSSlH'1l hy the Chairman, SEU1"lOS i, En'ry go\,erlHlH'nt (h'llartnwnt :1lHI agellCY shall give H1Ch aid and assistance to the Secretary of Def('l1se, antI shall render snell ('ooperation wilh one anotheJ', as may he Ilf'ee:-;"al'y to accolllvli"h the IHlI'l)(lse of this order, Sl-:CTIO-", K,Tht~Federal COllllllunication;.; COllllllissioll i:-..: herehy authorizeu to Hvvoint~tlt'lladvi,solT cOllllni.Ueps as it may ('(Insiderlle('es~al'Yor tlt'sirahle to advise and assist the ConUllissioll in the pert'orllll.lllt'p of its dlllie!'> hereunder, The Fe(leral Commnllicatlons COll111l1SsioIl is utilizing these addi tional delegat.ed powers ill eal'r'yillg out the pl'ogrnm for the control of radioelectric radiation in t.he national defense effort, whieh it began some time previously at the reqnest of t.he Department of Defense. REPORT OF THE FEDERAL COl\HvlUNICATIONS COMMISSION 31 The subject of control of ele('tromagnetic radiation for defense pur poses has l'pceived mounting interest and attention n to the present Commission p]'oject for such eml'l'gr.llcy control. III developing this program for the Department of Defense, the Commission has "worked closely with other Government departments :md agencies, both Stnte nn(] Federal, pal'ticl1lnrl~;those concerned with nntional dt'fellse nnd civil defense, :md with an segments of the radio indw:itl'y, especially the broadcast in(lllstry. From the standpoint of fWCSOJiS "'hose equipment is innJlrc<1, the program has been a YOllilltary and cooperative one, Thus far, the COllllllissioll has gin·n priulary :dteI)tiol1 to the broadcast stations. The response of the broadcastel's has beeH excellent. In fact, their as~istaJlcehas been so product iye that the Commission has been able to dcvPlop a sound basic plan for alerting hl'oa were dialing 38 percent of 'all long distance calls directly through to df'stination; and, 1,375 cities and towns in all parts of the ('ountry-;)OO more tha.n a )'eal' ago-were cOllnected to the long distance operator dialing network. Customer dialing of long dis tance ca11s permits approximately 10,000 one and two party line sub seribers in the Hrea of Englpwood, X. J., to dial their own station-to station longdi~tallcecalls to some 11 million telephone subscribers in the vicinities of Boston, Providenee, New York, Pittsburgh, Cleve land, Detroit, Chicago, :Milwaukee, Sacramento, Oakland and San Francisco withont the assistance of a toll operator. These calls arc timed alld billed automatieally. Operating revenues of the Bell System increased 10 percent over the previoHs yeaI', reae!ling II lIew high of $:3,689,462,86;,) for 1951. Hell System consolillatf'd net income applicable to American Tele phone Hlld Tell'gntph Company eapita18tock amonnted to $8<;4,874,176, all increase of ,') perc'eut over 1950. Owing to increases in n.umber of shares outstanding, however, net income applicable to A. T. & 'l'. stOl'k dropped from $12,;58 per share in 1950 to $11.76 in 19151. At tlte end of fiseal 19;52, there "'ere 1,lOO,IlOO A, T. & T stockholders. Sople adjustment in inters'tate rates inc.luding both increases and de creases ,yere authorized by the Commission during fiscal 1952, as a result of changes in sepal'lltion procedures. The expansion in the Bell System is illustrated by the following table of 8eleded data: 36 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION iNnmbl'f of Plant inV('5t· Itelephones ment Revenues Employees 1940 _ 1945______ _ _ 1950. . ._ 19'H . _ 17,483.981 22,445,519 3r;,~4-3,410 37,413, G14 $4. 701, 177. 3(4 Ii, 702, 0,)0, 557 10,101,521, ;;1;2 to, 9-{9, 6!l5, 522 $1,174,322,!il7 I, 930, 88R4,~2 3. 21\1. 52"l, 0:12 3, 639, 4G2, 365 2j.5,317 :3S7, aoo .~:!'l251 551.415 DOMESTIC TELEPHONE SERVICES Oonstruction of faeilities.-As previously indicated, the telephone industry expended about $1.2 billion in the expansion and improve lllent of existing faeilities during 1951. As in the past years, the bulk of the additions to physical plant has been in central olliee eqnipment, buildings, station apparatus and exchange lines. Commission auth orizations for the construction of facilities to be used in conneetion ,,,,itlt interstate and foreign services reached an all time high of more than $149 million. During fiscal 1952, the Commission granted 323 applications for authority for construction,lea~eor acquisition and operation of \vil'e and cable toll facilities for use in cooncction \vith interstate and foreign telephone services, compared to 218 granted during fiscal 1931. These applications involved estimated constrllc tion costs in excess of $107.5 million. This included the annual blanket application of A. T. & T. and some of its associated companies which, for the calendar year ID;")2, authorized the construction and installation of facilities at an estimated cost of $.)9,175,000, almost twice the amouut requested in the 1D51 blanket application. The following table shows the estimated costs and amounts of wire and cable construction authorized by the Commission since 1943. 7,968 2.9£3 12.2(a 15.976 Jij,:)7:~ 7,278 a,491 5, ·161 5,998 ~\J,5'i2, 2:)9 70,091, 1-10 73,806,450 126,:l2,'j,771 127, Hl2, ·190 3:;,1)'1,'i,91!) 1:;, 2:JO, 1178 45,795,6-i6 107, ;.;3, 68S 121 210 239 239 31S 313 HI 218 :J2;j Fiscal yeur 19-14 _ 1915 _ 1946 ..__ "._ ._. _ 11111____"_~_ H118 • _ 1949 . _ 1950 _ 1951 . _ 1952 _ -- -------,---,-----,-------,-,- i------- I , Rli,'at'l ! Tube miles' Conductor \lumber Cost "f 'f . I I II f ofl)roject~n~~S;1eOI 0~~ftsJaO~C;ll'~Yre -----------------------------;'- --- 5nS 1 _ 2,:J7.t:"l 7.902 3, 193. 8 16,5"0 5,5::17. 72~{,490 2, 5:17. .'i 4El,OSO I, :no, 5 1,323 :W\I. a 957.1 2.70-1 I, ass. 7 I 2,972 I --- In addition to the construction included in the above table, l1uring fiscal 19[j2 the Commission received applications from the Bell System compnnies for authority to construct 10 major microwave radio relay systems, and applications from non-Bell companies to constrnct seven projects, wHh an over-all estimated construction cost of $31 million. Dnring the same period, the Commission authorized 11 Bell System companies and six independent company projects represent ing over-all estimated expenditures of $41.5 million. These micro- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 37 wave radio relay systems, employed in the transmission of both tele phone tollluessages and televiiJion programs, together with those pre viously approved, will bring the industry investment in microwave radio relay facilities to more than $90 million, all since World War II. By the end of the fiscal year, the Bell System had linked, via its ,nicrowave radio relay facilities, 28 States and the District of Colum bia, and had also embarked upon microwave radio system construction to link t'VQ additional States. Provision had also been made for trans mission of television program material from the United. States to Toronto, Canada, by linking; the Bell System micl'Omlve relay facili ties with similar facilities of the Bell Telephone Co. of Canada. By means of its micrmvave systems together with its coaxial cable :facili ties (almost :>0,000 miles of television channels) the Bell System was able to render television network program transmission service to 107 out of the 108 TV stations in G5 cities. .Although the expansion of operations in this field of domestic com mon carrier radio was predominantly by A. T. & T. and its associateu companies,increa~inginterest in the use of microwave radio for point-to-point commtmieatiolls has been shown by various independent eommunicatiolls companies, as evidenced by grants for new radio systems to five such companies in the United States, Puerto Rico, and the Territory of Hawaii. Dls(iontiruUlnc8, 1'cduction 0/' impairment of service.-Dul'ing fiscal 19.}2, the Comrnission granted 10 applications for anthorHy to dis continue telephone t-:en'ice. Six involved the substitutioll of one car rier for another in the furni;:;hiug of wire line toll service. The remain ing fOllr were filed b.yl1liscellaneou~carriers for authority to discoll tinue service furnished through domestic public lunel mobile radio service stations ill De Huytcl' and South Bristol Tmvnship, N. Y. j Tallllton, JInss., H1Hl Centralia, "Vash. Three applications for author ity to discontinue \yire telephone toll service were pending as of June :;0, 1952. Speed of service.-The average time required by the Bell System to complete a telephone toll call, as measured by Bell (see seventeenth allnual report) wus 1.8 minutes per call during 1951, or 14 seconds slower than the average for the year 1950. This slower speed was reported to have been due to the heavy load on facilities, particularly on routes where demand increased sharply, or where many circuits had been devoted to the military services. The Bell System also reported that it completed 93 percent of all toll calls on a "no hang-up basis". Foreign attachment cww8.-The last annual report noted that an initial decision had been rendered and exceptions had been filed in the case of Hush-A-Phone Corp. et al. v. American Telephone and Tele- 38 REPORT OF- THE FEDERAL COl\lMCKICATIOKS CO.MMISSION graph 00. et al. (Docket DI8D), which involved the lawfulness of the so-called foreign attachmcntprovi~ion~of the defcndaufstariff~in sofar as they were cOllstrue(1 to prohibit the use of the Hush-A-Phone device. Oral argument in this proceeding was heard November 30, 19;')1, and the Commission's final decision is pending. Oral arg:ument on the complaint of J orrlaplwne Corporation of A-merica et al. (Docket D38:1) and I'll, the Matter of the U8(J of Telephone An.w,el'ing VeTieeB in (fonneellon wUh Interstate and Po-reign Teleplwnc SCl'IN.·ce (Docket 9701), both of which proceedings involve the la:\Yfulness of the forcign attachment regulations as applied to automatic. telephone answering devices in connection with interstate alHI foreign service, was held before the Commission en banc on J nne 24, ID52, and a final decision is pending. Domestic Public Land AlobUc Radio SCl'vice.-This service provides communication facilities for hire, primarily between fixed points and nlObile units on land and, secondarily, to vessels and renlOte fixed poillts. The service is of two general elasses: that furnished by lalld line telephone common carriers interconnccted ,vith the lanclline tele phone system; and that fm'nished by the so-ealled miscellaneous or llontelepholle company carriers which do not provide directconnec~ tion with Lhe landline telephone system. There is also a one-way sig naling or radio paging service to mobile units, and a mobile facsimile service by which telegraph messages are sent to and from mobile units in connection with the message handling and delivery proceuure of landline telegraph systems. A continued expansiou marked this service during the year. The service provided by landline telephone company carriecs (Ben System anu ilHlepeuclcnt companies) was extended to 17 more cities, making it available in 180 cities (an increase of 10.4 percent over last year) in 41 States, the District of Columbia and the Territory of Hawaii. The number of associated mobile units aggregated 20,866 units, an in crease of 21.4 percent m'cr the preceding fiscal year. The service provided by the miscellaneous (nontelephone company licensees) carriers was extended to 4-1 additional cities (an increase of 27 percent over hlst year), making it available in lUg cities in 38 States, the District of Columbia, Puerto Rico, and the Territories of Alaska awl I-Iawaii. The number of mobile units in this latter group totaled l2,!)fi9, an increase of 44.6 percent over the preceding year, J\Iany adjacent communities receive mobile radioeomnlllllicntion service from the estahlished systems. During the :renr, the first common carrier land mobile radiocom munication systems were authorized to operate in Alaska. and Puerto Rico, respectively. Previously, similar systems had been licensed to operate in the Territory of Hawaii. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 39 Final decisions were issued by the Commission in cases involving applications to establish mobile radiocommunication systems by mis cellaneous common carriers in the Chicago area (Dockets 9837 et a1.) al](1 the Dallas-Fort Worth area (Dockets!JH~Det al.). An initial (lL;cision was issued in the proceeding illvohing applications in the Los Angeles area (Dockets 07:2:-3 et aI.) and an oral argument held t hereon. A decision has not yet been reached with respect to the· applications in the Kew York City area (Dockets !J7Gl et al.). One new hearin.g was held dnl'ing the )dab~ of its decision, however, pending" consideration of a petitioll for rehearing nnd reconsideration tiled h,Y the. defendant companies. [nl'(,8ti,qat/0l1 of BellSY8fl~1JIJ'ate8,-The seventeenth annual report discussed the reasonableness of the level of earnings from Bell Systt:'lll interstate and foreign cOllllllunication sCI'vices. On November 21, 1H51, the Commission yacHted tllat portion of its order of .January lH, 1D;")1, in Docket nssn which diredpcl the Bell eompanies to show cause why their rates for intel'statp nlPssag'p toll tl::'lephone sen"icp shOllltl Hot he reduced pending cOllclusion of the proceedings ofiJlH~stigationinstituted by the .Jalllltll'.v ordel'. This was done lweallse the revised plan for apportioning" local telephone exchange costs behYeen intrastate and interstate telephone sprvjce, which was J)I'oposed by the Commission and accepted by the Katiollal Association of Hailnmd and Utilities Commissioners at its 1\);)1 lln lllud e01H"entioll, had the effpd of shifting revenue 1'('ql1irelllcllts from intrastate, to interstnte in a total amount on thl::' order of $;10 million annually ·nllll thus remm·ed the immedinte bases for the sho\\' CHuse nspect of the .January onlel'. (See. subsequent item on separation procedures.) To eompemmte the Bell System companies for about one-half the amount of revenue l'equirernents transferred from intrastate to inter state operations by the modification of cost-allocation procedures, inter Htate message toll telephone rates were revised etfeeti,·e .March 1,l!J;")~, In genera], these rntes were increased at the shorter distallces (within 582 miles) and were decreased at distances in excess of 582 IIIi1t,:o;. The REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 43 jJlcreas(~swere estimated to produce additional annual l'f'vennes amounting to $:2:21j! million and the reductions were calculatea at $7~~million which, after allowance for an increase ill payonts to C011 necting' companil'H of one-half million dollars, left a net iucre,ase in Hell System illterstate l'er€IlUf'S of $14 million illllllwlly. The increased rates at the tdlOl'ter dishlllces served to lessen sub stantially the lllllllber of instances where intrastate long-distance rates wpre hig·hcr than interstate rates for equivalent llistances. These disparities haye bpen the subject of Concerll and joint study for several years by stllte regulatory authoritieH, this Commission, and the Ben ':-';ystelll. The ill('l'eaSes ill short-haul rates, in additioll to alleviating the di::-pal'ity situation, brought such rates into closer alinement with the best p:-;tilIlatf's of costs of rewlering selTiee~ltthose hauls so that HIl apparent inequity which Innl existe(.1 as between short- and long haul users ,yas l"t.'lHO,"e(l, 01' at If'ast greatly easell. .x UllJ(>l'OUS 1'l\tc~trtlctlire reforllls ,yere inc11ll1E~din the }'Iarch 1, 1\)52, illter~taterate elJllllges. For example, for oYer :10 preceding years the bnsic stat iOll-to-station day rate for 1 through 12 miles for an initial period of ;j minutps had been 10 cellts, There had, however, been f'xn~p!i()ll~to this rate where the l11jtinl period charge for 5 minutes was .-1 cents for distances of (j miles 01' less, and these exceptions in cludpd S1lcll Ill'a \"y t rafHc routes as Philadelphia-Camden and St. Louis East~t.LOllis. These G-cent f'xceptions ,,,ere eliminated on~Iarch1, IfJ;)::!, along ,,"jtll adjustIIIC'llts ill tlie length of the rate steps. .itt the :-; cents. :-;imilal' reductions in the initial period from~)minutes to 1: minutes were made ill other rate steps through 24 miles, and in the 2;:5- to 30-mile ralc step the initial period was reduced from ti minutes to 3 minutes. Tl1f'~ere(hlCtions ill initial pel'i()(h; were accompanied by reductions in the length of the overtime perio2, the Commission adopted a sup plementall'eport a11(l on1er terminating' its jurisdiction Hwleoncluding that the public convenience or neeessity did not require the inqlosition uf eonditiolls pnwiding' for the protectioll of lHlversely affected em ployees. In its report, the Commission referred to its memorandum opinion of February 21, 1951, in which it concluded that public con venience and necessity did not require that stich conditions be attached to certificates or authorizations for the discontinuance, reduction, or impairment of service by communications carriers. RATES AND TARIFFS Tariff 8ohedule8.-At the end of the year, 40 domestic telegraph carriers had tariffs or eoncurrences on file with the Commission. Dur iug the year, they filed 1,098 tariff publications establishingor changing rates, regulations, practices, and classifications of service, including concurrences. 'Vestern Dnion filed revised bU'iff schedules reflecting its acquisition of the message telegraph business of the Pacific: Telephone & Tele g'raph Co. and the B€'ll Telephone Co. of Nevada. Tariff schedules filed by 'Yestern VnioH also retleeted its discontinuance of public message toll telephone service and its withdnnval frOtH the business of leasing privute-line frequenc.)' circuits for voice. music. or prog-ram transmission, pursuant to the authority g-rante(l by the COllllnission in its decision and certificate ill Docket9~:-H),issued~\pl'ilD, 1nG1. Spedal pCl'lIIi.".'dOIl8.-Thil'ty-twn applit'l:\tlollS fm' speeial pprmis sion to make chan,ges ill tariffs or file llP\,,' tariffs to become etfedivi' on less thall statutory llotiep, or involving: wain>!' of' CPl'taill require ments of the Commission's rules, wpre grunted. Western Urn ion domesti(' rates.-As previously reported, 'Vestern Union filed revised tariff schedulps to become effective .Tune 1 und REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 55 July 1, 1951, containing certain new and increased rates for interstate message telegraph, money order, and miscellaneous services. Byorder of May 23, 1951, the Commission, on its own motion, suspended the operation of these schedules and entered into an investigation of the matter (Docket 9980). After public hearings, the Commission on August 24, 1951, concluded that the rate adjustments proposed with respect to Telemeter Service, CND Services, and Leased Facility Services, and the adjustments in the money order premium charges should be permitted to become effective. The Serial Service classi fication was held to be anunjus~and unreasonable classification and Western Union was required to amend its tariffs accordingly. The rate adjustments proposed with respect to message and money order service were found to contain certain discriminatory and other ob jectionable provisions and 'Western Union was required to design new schedules eliminating these discriminations and objectionable pro visions. It did so, effective September 1, 1951. Subsequently, cor responding intrastate tariff revisions were filed with the various State commissions and have become effective. On June 6 and 10, 1952, 'Vestern Union filed revised tariff schedules, effective July 6 and 10, 1952, respectively, containing certairi new and increased charges and regulations for interstate message telegraph, press, money order, and miscellaneous services. The increased charges, according to the company, are designed to produce additional revenues required to offset the major part of a $13,200,000 annnal increase in operating expenses, consisting of additional wage expenses which became effective September 1, 1951, in an annual amount of $3,402,000, and further wage expenses in an annual amount of $9,779, 000 to be incurred as from the effective date of the subject rate revision as provided for in agreements with the telegraph unions. The ef fective dates of the new and increased rates for telegraph services subsequently were deferred by the company until September 1, 1952. On June 20, 1952, Western Union filed revised tariff schedules, ef fective September 1, 1952, containing certain new and increased charges and regulations applicable to the United States-Canada and St. Pierre-Miquelon Islands message and money order services. These new and increased charges, according to the company, are designed to prodnce the additional revenues necessary to recover the added wage expense incident to the previously mentioned wage increases and at the same time to place the United States-Canada rates on a uniform and consistent basis. Leased facility-teleprinter "ticker" equipment charges.-'Vestern Union filed revised tariff schedules to become effective July 6, 1952 (subsequently deferred until August 1, 1952), establishing new and increased charges and new regulations applicable to "tickers" used in 56 REPORT OF THE FE'DERAL COMMUNICAnONS COMMISSION lE>asE>d facility service. The company estimated that the increased rates would produce additional annual revenue in the amount of about $69,000, based on current volume. The company advises that the New York Stock Exchange plans to lease from Western Union ticker net works for thE> pnrpose of disseminating to the public its stock and bond quotations. Up to this time, Western Union has distributed such information directly to the public subscriping to its Commercial News Department, Quotation Ticker Service. The telegraph com pany estimated that it will receive approximately $1 million per an num less revenue for the lease of the ticker networks to the stock exchange than it receives from the eND Quotation Ticker Service which will be displaced. Use of lelMed telegraph facilities for tran,wwission of 1IOJ'.>e- 01' dog ·racing new8.-'Vestern Union amended its tariffs applicable to inter state and foreign leased facilities service used for the transmission of horse- and dog-racing news to become effective February 1, 19;)2, re stricting such service to (1) a press 'association; (2) a publisher of a newspaper or other periodical entered as second-class nlatter in the United States Post Office Department; (3) a radio station; or (4) a person, firm, or corporation engaged in the collection or transmission of horse- or dog-racing news to press associations, newspapers, or radio stations for publication or broadcasting. Rf'-qucsts for suspension were received; and, by order of January 30, 1952, the Commission suspended the new tariff provision and ordered a hearing thereon (Docket 10112). Hearings were held in June 19,;2, and a decision was pending at the close of the fiscal year. Original cost of plant and continuing property ruords,-Over a period of 6 years Western Union has made snbstantial progress in com plying with the Commission's accounting regulations that became effective January 1, 1943, which required a revised plant account classification, the restatement of plant investment to basis of original cost, and the establishment of continuing property records of plant and equipment. The Commission has been engaged in a comprehen sive analysis of these plant accounting records and procedures in order to be assured of the propriety and reasonableness of the final results. Depreciation.-As a result of a depreciation study Western Union's depreciation reserVE> applicable to landline plant was increased and depreciation rates were prescribed effective January 1, 1948. In co operation with the Commission staff, 'Vestern Union is modifying these depreciation rates to reflect developments sinCE> that date in connection with plant classifications, changes in thE> art of record communication and underlying service life and salvagE> characteristics of plant. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 57 OTHER REGULATORY MATTERS Uniform system of accounts.-During fiscal year 1952, Western Union changed its outstanding no-par common stock to common stock of a par value of $10 per share. This transaction required an in terpretation of the accounting rules to assure retention in the capital accounts of the amounts in excess of par value that had been paid in by stockholders. Accounting research.-The sale by 'Vestern Union, during the year 1948, of its office building at 60 Hudson Street, New York City, and lease back for a term of 25 years, created a problem as to the appro priate accounting thereof. This required research both as to dis position of the amounts received in connection with the transaction and the distribution of annual rent"l charges. 4. Il\'TERNATIONAL TELEGRAPH AND TELEPHONE GENERAL The upward trend of international telegraph business which began in the middle of the calendar year 1950, has continued. In calendar 1951, the United States cable and radiotelegraph carriers . handled a total of 5:>6,608;633 paid words, an increase of 3Y2 percent over the 1950 level of 518,523,407 paid words. Revenues from message traffic accruing to the international tele graph carriers in 1951, amounted to $46,466,766, an increase of 9.4 per cent over 1950 revenues of $42,469,888. Net operating revenues be fore Federal income taxes amounted to $7,861,188, an increase of 58.a percent over 1950 when the comparable figure was $4,960,545. The volume of international radiotelephone calls in 1951 as well as revenues therefrom reached new highs. The chargeable calls in 1951 advanced to 932,484, an increase of 25.2 percent over 1950. The revenues (including associated landline charges) for 1951 amounted to $10,128,354, which were 23.6 percent more than the revenues for 1950. INTERNATIONAL SERVICE Telegraph circuit8.-At the close of fiscal 1952, 84 foreign countries and overseas points were served by United States radiotelegraph car riers, either by direct radiotelegraph circuits or via the Tangier, North Africa, relay stations. Of this number, 73 were served via direct circuits and eleven via Tangier. In addition, a number of countries in the Far East, which were not reached by these means, were served by relay stations operated by the United States carriers at Manil.. in the Philippine Islands. Connections with the facilities of foreign carriers made possible communication with most other points in the world. As in previous years, the United States radiotelegraph car riers continued to transmit program material to various foreign coun- 58 REPORT OF THE FEDERAL COMMl:NICATIONS COMMISSION tries originating, among others, with the United Nations and the De partment of State. Telephone cil'cuits.-Radiotelephone message toll service was in "ffect with 93 foreign countries and overseas points at the close of the year. Of this number, 55 were served directly while the rest were served through connecting carriers. The Bell System companies pro vided program transmission service to 61 foreign countries and over seas points and private line service was available to 12 foreign coun tries and overseas points. Applications.-During the fiscal year, licensees in the international fixed public service filed a total of 711 applications for authorizations for additional frequencies, additional transmitters, and additional points of communication, as well as applications for renewal of licenses and temporary authorizations. Licensees in the radiotelegraph service accounted for 472 of these applications while the balance was filed by licensees in the radiotelephone service. The Commission acted on 608 of these applications. Applications for authority to use additional frequencies continued to constitute a large proportion of the total number received and acted upon. This resulted to a considerable extent from the necessity of shifting operations to frequencies which are "in band"; that is, frequencies which are in accordance with the Atlantic City Table of Frequency Allocations, as agreed'upon at the Extraordinary Admin istrative Radio Conference held in Geneva during August-December 1951. (See "International conferences".) In addition, the Commission received and acted upon a number of miscellaneous applications filed by international carriers. These in cluded requests for authorization to hold interlocking directorates in two or more companies, authorizations to decrease or discontinue serv ice, and authorizations to supplement facilities of the international companies by the use of wire lines. Discontinuance of service.-The past year saw the cessation of com munications service by the Commercial Pacific Cable Co., the only United States cable company operating between this country and points in the Pacific ocean area. On November 14, 1951, the Com mission granted Commercial Pacific's application for authority to discontinue service over its submarine cables between San Francisco and Honolulu, Honolulu and .Midway Island, .Midway Island and Guam, Guam and .Manila, .Manila and Shanghai, and Guam and Japan. In approving the discontinuance, the Commission noted that some of the cables had been interrupted since 1941; that others were subject to frequent interruptions requiring heavy expenditures for repairs; that the company was losing money on its operations; and that adequate substitute service to the points served by Commercial REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 59 Pacific is available by means of radiotelegraph circuits to and from the United States. Docket case8.-In preceding annual reports, reference was made to the applications of Mackay Radio & Telegraph Co. for authority to communicate with Portugal, Surinam, and the Netherlands (Docket 8777). In the seventeenth annual report it was noted that the Commission's decision in this case, adopted February 21, 1951, had been appealed by RCA Communications, Inc., and that this appeal was then pending before the United States Court of Appeals for the District of Columbia. On May 20, 1952, oral argument in this matter was heard by the court, and a decision is now pending. In the last annual report reference was made to the proceeding (Docket 9362) occasioned by the complaint of the International Bank for Reconstruction and Development and the International Monetary Fund against certain United States telegraph carriers. This case presented for determination by the Commission the question of whether these agencies should be accorded the same rates for their outbound ollicial telegraph communications as those accorded to cer tain other governments for similar communications. Hearings "'ere concluded in February 1951 and, on November 20, 1951, the hearing examiner's initial decision was issued. In this decision it was held that the rate charged by the defendant carriers for ollicial messages of the bank and fund should not exceed, for any mcssage, the rate charged by such defendant carriers for a similar message sent from the United States by a foreign governmcnt, which is a member of the bank and fund, to its own territory. Exceptions to the initial decision and replies to the exceptions were filed and the matter is now awaiting oral argument before the Commission. Decision in Docket 9292 is also pending before the Commission. This proceeding, referred to in the seventeenth annual report, con cerns complaints involving the lawfulness of certain agreements be tween Western Union, on the one hand, and Globe Wireless, Ltd., and Tropical Radio Telegraph Co., on the other hand, for the exchange of specified international telegraph trallic. Exceptions to the hearing examiner's initial decision, wherein it was held that the agreements were illegal, were filed, and on December 10, 1951, oral argument was heard by the Commission. During March 1952, hearings were held on the applications of Mackay Radio & Telegraph Co. and All America Cables & Radio, Inc., for modification of their licenses to permit them to operate a radiotelegraph circuit between the United States and Puerto Rico on a regular instead of an emergency basis (Docket 10056). A grant of the applications was opposed by RCA Communications, Inc. Pro posed findings have been filed, and the hearing examiner's initial de cision is pending. 60 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Western Union divestment.-Section 222 of the Communications Act, which authorized the merger of the 'Western Union Telegraph Co. and Postal Telegraph, Inc., specifically required that any plan for snch merger shonld provide for the divestment by 'Western Union of its international telegraph operations within a reasonable time, as soon as' its legal obligations permitted, and after the Commission found the compensation for the property to be commensurate with its value. In its order approving the aforementioned merger in 1943, the Commission required 'Western Union to exercise due diligence to effect such divestment (Docket 6517). Since Western Union has not as yet effected this divestment, the Commission, by order dated March 5, 1952, instituted an investigation and hearing (Docket 10151) into all phases of the matter of divestment in order to determine what action the Commission shonld take or recommend in this matter. Hearing in this matter was scheduled to begin October 7, 1952. Equipment and operating techniques.-New interest has been evi denced in the International Control Service as improved equipment has become available for the ultra high frequency bands between 1,850 ana 3,000 megacycles allocated to this service. Stations in this service are used for transmitting traffic by radio, instead of by wire lines, over relatively short distances between message centers, transmitting sta tions, andre~ivingstations of the international carriers. In addition to the two stations previously authorized for International Control Service, one company in the New York area was granted an experi mental license and another company in the same area has applications pending for four new stations. Development of new met.hods of multichannel transmission con tinues. During the past year multichannel telegraph transmissions have been authorized which utilize new single sideband and fre quency shift techniques. This development will assist in accommodat ing thegrowin~service demands within the reduced spectrum space allocated to the Fixed Services. International oonfe1'ence.,.-The Commission participated in the Extraordinary Administrative Radio Conference held in Geneva, Switzerland, August-December 1951. At this conference agreement was reached on certain new international frequency lists, frequency assignment plans for some services, and a method of gradually trans ferring Fixed Service operations to frequencies which are in accord ance with the Atlantic City Table of Frequency Allocations, with a view eventually to bringing this table into force for the entire range between 14 and 27,500 kilocycles. Most of the world's medium and long-distance radiocommnnication services are conducted within this frequency range. As a result of the United States effort to carry out this agreement, new assignments of frequencies in the appropriate Atlantic City bands REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 61 have been made to licensees in the International Fixed Public Service. Such assignments have been made on a temporary basis pending trial to determine their workability. Steps toward implementation of the Atlantic City table have also been taken on a "frequency band" basis. For example, all assignments between 20,000 and 27,500 kilocycles have been adjusted so as to be in accordance with the table. This process required that the Fixed Serv ices vacate the band 21,000-21,450 kilocycles so that it could be made available to the amateur service. The band 14,350-14,400 kilocycles previously used by amateurs has been allocated to the Fixed Services and new assignments have been made therein. The Commission and licensees in the Fixed Services are now en gaged in intensive studies and meetings with a view to completing the tfllUsfer of operations to the proper Atlantic City frequency bands as rapidly as possible. (For a more detailed discussion of the results of the above conference, See chapter on frequency allocation and treaty activities;) RATES AND TARIFFS Tariff 8chedules.-At the end of the fiscal year, 101 international -cable and radiotelegraph carriers had tariffs or concurrences on file with the Commission. During the year, these carriers filed 2,042 tariff publications establishing or changing rates, regulations, practices, or -classifications of service. Special tariff permi8sio118.-During fiscal 1952 the Commission re cpjyed and acted upon 54 Rpplications wherein special permission was requested to make changes in existing tariff schedules or to esta.blish new schedules on not less tllan 1 day's notice. Contract filinrJ8.-The international and marine telegraph carriers filed 367 new contracts, 727 amendments to existing contracts, and 119 reports of negotiations with other carriers or with foreign adminis trations. In addition, the various international telegraph carriers filed 1,386 statements showing revisions in the divisions of charges for teleg:raph messages exchanged between these companies and their overseas correspondents. AIarlne rate case.-As was noted in the previous annual report, during 1950 the Commission received requests :from marine radiotele graph carriers for rate relief. At the same time, Western Union, which originates find te,rminfites mueh o:f the marine traffic, also ad vised the Commission that it desired to revise its landline charges for handling this traffic. This proposed revision also made provision for establishing uniform division of charges with the various marine car riers. On March 14, 1951, the Commission adopted an order institut ing an investigation (Docket 9915) into the matter of the charges for -coast station and landline handling of marine traffic as well as the 62 REPORT OF THE FEDERAL COMMCNICATIONS COMMISSION legality of the divisions of charges between 'Western Union and the various marine carriers. The Commission had pending before it a formal complaint by Tropical Radio Telegraph Co. against Western Union (Docket 9822) wherein it was charged that 'Western Union had failed to comply with the provisions of the formula for the distribution of outbound marine traffic in its division of tolls for marine traffic. Since this complaint involved issues which were similar to those before the Commission in its general marine investigation, the Commssion consolidated this complaint with the proceeding in Docket 9915. Hearings were held in this consolidated proceeding during June, July, and August of 1951. Proposed findings were filed by the carriers in November 19:51, and the case is a,vaitjng decision by the Commission. OTHER REGULATORY MATTERS Depreoiation.-Limited progress ,vas made in studies to determine the reasonableness of annual depreciation rates and charges, and the recorded depreciation reserves, and to determine thepropriety of the depreciation practices of the international telegraph carriers. Peud ing completion of such a study, tentative approval was given to the proposal of one earrier to effeet changes in its annual depreeiation accrual rates, and the carrier was required to make certain adjustments in its depreeiation accounting. Stndies wiII be continued with the view of developing information necessary for the Commission to preseribe annual rates of depreciation for these carriers as required by section 220 (b) of the Communications Act. Continuing property record8.-The three international telegraph carriers that had not completely fulfilled the requirement to establish and maintain continning property reeords at the end of fiscal 1951 made substantial further progress during the year, and are expected to complete their records duriilg fiscal 1953. The Conunission's staff gave advice and assistance to these carriers, and further pursued the verification of the form and content and evaluation of the effectiveness of these records. Relief and pen8io1l8.-Three carriers introduced changes in their pension arrangements during fiscal 1952, primarily to effect liheraliza tion of benefits. ReclGlIsijieation of plant.-Although flU'!her progress Was made during fiscal 1952 toward completing the restatement of the plant of the international telegraph carrriers on the basis of original cost, final adjustments in the accounts of four carriers were not consum mated. It is expected that the work will be completed next year. Uniform gy8tem8 of account8.-Progress was made in the drafting of unified accounting rules to be. incorporated into a new uniform system of accounts for international telegraph carriers (both cable REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 63 and radio). Itis anticipated that such unified rules cau be made appli cable, also, to the domestic operations of Western Union. During the year accounting interpretations ,vere issued with respect to (a) 1Vestern Union's program for equalization of cable-mmntenance costs; (b) appropriate recording of transactions with respect to the quasi-reorganization of Press 1Vireless, Inc.; (c) the use of delayed income accounts in connection with original cost adjustments; and (d) the stock transaction of 1Vestern Union that was referred to under the subject of domestic telegraph. Pl'eseyvation ofrecord,~.-Interpretationswere issued during the year as to the intent of the rules with respect to (a) tape recordings of Scheduled Transmission Service; and (b) retention of the records of Commercial Pacific Cable Co. which ceased operations and is in proccss of dissolution. Accounting 'l'esearch.-Extensive accounting research, including several of those projects listed under "Domestic telephone" was re quired in eonnectioll with the afore-mentioned interpretations and in fl nticipation of the new international system of accounts. 5. STATISTICS TELEPHONE CARRIERS Reports 'vere filed on an annual basis by 230 common carriers and 25 controlling companies for the calendar year 1951. The l'eports reeeivecl from common carriers illcJmle those from 89 telephone car riers and 11D carriers engaged in rendering mobile radiotelephone s61'vice. Selected financial and operating data concerning large tele phone carriers for the year 1951 as compared with 1950 are shown in the following table: Telephone carriers I Item Invf'stmf'nt in pbnt find C(luipment (as of Dt't:. 31) ._ Depredation ann rl.lnortilalion rf'serves Net inn>stnl('nt in plant fl.!\(1 equipment Local-sen-[oo re\'f'nues _ 'J'ol)·sf'rvire revellues _ Total njX'rnting r('\'cnues_. Operating expenses __ '1'a'l;es '. ,._ Net opcmting income nfter n]] tint's _ Kf't income _ Divirlen(ls (lE'rl:l.ff'd Company teJephOlH's: Hw;itless _ _ _ Residence _. __ . _ Nnmbt'r ofeall~originating durillj{ the~'enr; LoclS,109 $1. 798, 193, 3fJ4 1951 $ll, Mfi, 812, 614 sa, l!ili, 343, 655 $H, 300, 4fi8, 959 $2, 2MI, 92t, 770 $1,403, -179, l1il3 $3, 817.,~:Jti,794 $2, U91:!, 098, 095 $l\fi9, 279, 145 $400, 1fi(),.'IM $:1i7. -123, 081 $303,374,706 ]2, 34r" 10l 27,568,621 66, f,20, 928, 12:i 2,140,402,887 586 809 191~:209 388, f>OO $1, 97,i, ,1;J.5, 384 PerC{'nt of increase (or decTease) 7.87 6.92 8.24 9.75 12.70 10.81 9.50 25.33 1.13 1.1;7 12.46 4.85 4.95 (') (3) 3.84 0.62 5.57 9. 86 I lntereompany dupliCfltions, exeept in minor illstflnces, have been ellminated. ! T'flItly~stimatedoy reporting carriers. i The number of ealls shown are not comparahle, ilS muny calls were reclassified from "Toll" to "Local" during 1951, due to enlargement of numerous local calling arcas. 64 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION BUSINESS AND RESIDENCE TELEPHONES BY STATES There were 45,636,400 telephones in the continental United States of which 31,911,000 are located in residences, and 13,725,400 in busi ness establishments, as of January 1, 1952. The number of telephones, arranged by States, are shown in the following table. The figures were compiled by the American Telephone & Telegraph Co. and are partly estimated. State UnIted states .' • __ • _. _ Business Residence Total 130,500 334,800 465,300 66,100 HO,OOO 176,100 83,800 179,100 262,900 1,369,200 2,692,200 4, OtH, 400 147,600 323, :roo 470,800 229,000 602,700 831,700 39,400 88,300 127,700 249,500 274,600 524,100 305,000 447,000 752,000 195,900 431,100 627,000 42,100 HIS, 700 U7,8OO' 1,008,900 2,140,100 3,149,000 300,000 896,500 1,196,500 172,400 671,100 843,500 143,300 477,100 620,400 134,900 361,700 496,600 163,200 393,000 556,200 59,800 176,900 236,700 206,200 ,'\08,800 715,000 482,800 1,166,200 1,649,000 51\2,500 1,593,100 2,155,600 2-'l3,900 713,100 947,000 71,600 170,400 242,000 347,700 850,600 1,198,300 46,500 109,300 155,800 100,900 317,100 418,GOO 23,100 31,500 54,6Ofr 3S,7OO 115,000 1M, 300 508,300 1,252,000 1,760,300 55,500 75,600 131,100 2,090,100 3,778,300 5,868,400 185, JOO 434,200 619,300 32,600 97,300 129,900 700,800 2,002,900 2,766,700 174,400 422,300 590,700 1,'38,300 327,6004~_'i,900 893,200 2,430,400 3,323,600 73,400 176,800 250,200 8,),300 193,200 27R,500 37,500 122,200 159,700 186,600 491,800 678,400 65U, 500 1,39,),000 2,045,500 60,600 152,200 212,800 24,800 72,900 97,700 234,000 510,3l)(l 744, 300 233,200 559,000 792,200 99,400 271,200 370,600 277,8'10 749,300 1,027,100 ZO, 00Il 55,700 82, '200 13,725, 400 I 31,911,000 45, 636, 400 LAND_LINE TELEGRAPH Annual reports containing statistical data for the calendar year 1951 were received from 21 domestic and international telegraph carriers. Financial and operating data compiled from the report received from the Western Union Telegraph Co. relating to its do mestic land-line operations for the calendar year 1951 as compared REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 65, with 1950 are shown in the following tabnlation. The data pertaining to its international ocean-cable operations are included in a subsequent table relating to ocean-cable carriers. The Western U11ion Telegraph Co. 1 Irem Investment in plant and equipment (as 01 Dec. 31). ._._. Depreciation and amortization reserves. . _ Net investment in plant and equipment..._, . _ Messll¥ion of transoceanic mcssag-I2'S ann revenues from domestic classification rnessages (primarily Canadian). ! Represents domestic classification messages (primarily Canadian). INTERNATIONAL TELEGRAPH TRAFFIC Reports of international traffic statistics receive,l from cable and radiotelegraph carriers indicate that a total of 536,608,633 paid words were handled during the calendar year 1051. The outbound traffic during the year amounted to 265,070,828 words, while inbound traffic accounted for 270,637,805 words. The following table contains an analysis of the traffic handled between the United States and the principal count.ries of the world. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 67 International tele!Jraph (radio and cable) traffle. 1951 Number of words Number of words vOllutry Out-bound In-bound to Country Out-bound In·bound to' (rom the the United from the the United United States United States States States El'ROPE, AFRICA, AND WEST INDIES, CENTRAL THE NEAR EAST NORTH: AND SOUTH AMERICA-continued Al!!crla_ i 189.553 153.287 Ambia ______ ------~40,355 873,1\43 British West Indies 1_____ 140, III 106, 730{· Austria________ '._ 1 1,521,892 1.771'1,432 Canada. _____ . _______ ._ 7,081,480 8.274.347 Belgian Congo __ ~I 373,962 315,536 CanaIZonc______ 791,513 7311,342" Belgium..____________ I 5,359,112 4,788,204 Chlle____________ 2, t155, 8tiil 3.134,848 Britisl! East Afrlca_ I 243.408 224.237 Colombia______ 4.3(\2.014 3,778. 797 British West Africa___ . ~I 257,489 273,112 Costa Rica______ 772, 838 582,263 nzeehoslo<'akia. __ 7[14,251 590,257 C'umL ___ ... _______________ 6,279,402 B,5fJl, 839 Denmark_______ :::1 1,7(\4,553 1,252.056 Dominican Republic_____ 1. 173, 470 1,102, 80S Egypt 1,551'\, 923 1, l\O2, 758 Rcuador__ 1. 218.329 810,141 Ethiopia I 151,118 211,675 Ollatemala___ . 1,173,373 1,304,771 Finland_ 578, Oil 5Ri,376 HaitL _____ ._ 793, OM 715,207 France___ . ______ . __ _____ , 15, \Xl7, 2.'37 14,86.1,5i4 Honduras___ 639,062 592, 117 french West Africa_ m,601 I 9"l,659 Jamaica 813, &to 656,194 Germany____________ 9,992, eM 11,110,647 tfe"ico___ . ______ . ___ 2.0I3,7R9 1, 461,961 Greece. ____ 2,099,777 1.677, roor-.~etherlandsWest fndies 1,104,499 1,235,421 Hungary__ 352,649 213.315 Nicaragua__ fl84,05<\ 554,270 Iccland_____ . -i 174.158 i 182,140 PanaJl1a______ 1,024,0"fl 773, :103 Iran______ ~2,4n71,413,629 Paraguay_____ 240.479~5,248 Iraq_. ___ 2fi1l. tlfJ4 206, 921 P(,rIl ___ 2.157.4<1-1 1,697. Of,() IrelaIl(L ___ -----: 922, 040 1,254.471 Puerto Rico ____ 3,394,9-t-8 2, 976. 812 IsmpL 3,352,801l 3,412,372 Salvador ----- - - -- - - --- 828,227 6...% 463 Haly___ 9.130,429 7,900,367 Surinam_____ . __ lZl,941 II2, 337 Lebanon 1,087,551 1, Ilfl, 925 Trinidnd _____ 545, 00" 40:1,094 Libpria_______ 60.1.5955~0,434Urllgu~\y_ 2.142,172 1,023,56(} Luxembourg______ 10l,7iel 89.412 Venezuela_ 6, 2fi9,1},~77,041, RIS. Morocoo---French oR1,026 63fl,813 Virgin Islands__ ZlO,25(\ 270,321 MOrDcco-Tangier 63& 007 M8,9S7 All other places. ___ 142, Rill 7il,746 Netherlands 6.467,623 5,8'\7,376 ----~----- Norway_____ 2, (\51. 310 2, OM, 060 TotaL___ • __ " 70.945,205 74,296,013 PlJ.lestinc_ 123,089 17,';,1190 Persian GulL 332,392 406,350 AsiAA~DOCEAXIA Poland_______ •____ 507,1'25 3911,MiO PortugaL _________ 1, 479, 405 1, a.·H. 603 ,\fghanistan _________ 16.\ 668 130,567 Rhodesia_____ 87. 867 lI3,I8B Australiu_____ 4,221,715 3,679,472 Roumania______ 127,346 62,037 BurnHL . ___ 1\'!9,9Rl 182, 998 Spain.. I 3,102,109 2, 434, 952 Ceyloli___________________ 1335,855 562,877 Sweden____ . ____ I 3,347,991 3,046,324 China (excluding Hong- Switzerland______ 7, &41. 340 5,434,MO kOlig)(~,779 198,651'/ Syria __ 251,767 216.1I2 Formosa ____ "_ .. _____ 922,9Hi 994,399 Transjordania________ ._ 306, 699 122,726 Frl'nch Indo China__ 207,17{ 294,486- Tril'''w, Fr\:'e Territory of 1!l_\3H! Ifill, 672 Ouam, ____ 540,047 729, 655 Tur:'cy_________ . ______ . 1,176,425 831,046 HawaiL___ 4,595,485 4,475,284 'Pnion of South Afric''I 3, M7. 42fl 3,114,844 Hopgkong____ ._. ________ 2, 17n, 486 810,100 U,S.S. R _____ ,._. ______ 5,551. 989~,4t)O.!lM Inoja_,.._. ________ ..•, ___ 5,189.246 5,311,1:'12 United Kingdom_ 47, ,IlfiS, 245 47, 81:l, 541 lndolll'sia________ 2.444,792 2, 7ll8. 327 Yu{':os!t'"ia_. _ qgl, 083 815, .542 Japau________ 12,238,070 21,171,045 All other placcs . 1, 1m, 870 2, aM, 499 Kr>rea ______ 920,.~fi4tI()(),146- ~ralayfl,Federation of.. 1, 618, 718 1,8.';6, li!n Totr,L 116,380, C87 137. OM, 952 'New Zl.'aJand __ 1,207,309 1, 141, 260 Okinawa____ 31\5.070 636,351 "Y.ST I~DIES,CEXTRAT., Pflkistan ___________ 1,896,1'72 I,874,15() KOIITII, AN'D SOCTII Philippines_.______ 5,034,121 6. 415. 041> AMERICA Sodety- fslands____ . __ ._ 240,8·~O142,418 Thaihnd (Siam) ______ 1,3M,:~:3:i1,214, f'i46 Argentina_ 7 500.:15.~9,172.153 All other places__ 1:{8,621152,,:Z~ Bahamas 740.453 8.17.3.~O Barbados J90,298 166,938 TotaL_________ 46,871. 661 55,370,374 DcnnudlL_ 1,039.924 9liS.928 Bolivia__ R.'l4,7878f"~~.,)]6(Tnkn(}w~destination or Dro.ziL __ ,11,420.811 12.110,080 origin _____ 1,773,875 3,904,466 Dritish Guiana_ 1fl1,89fl IM,93U British Honduras ---- i 122,793 138,298 Grand totaL _______ 26.~,970,828 270,637,801) I Points not listed sepflrately. [ Page 68 in the original document is intentionally blank ] CHAPTER IV-SAFETY AND SPECIAL RADIO SERVICES 1. GENERAL 2. MARINE RADIO SERVICES 3. AERONAUTICAL RADIO SERVICES 4. PUBLIC SAFETY RADIO SERVICES 5. AMATEUR RADIO SERVICE 6. DISASTER COMMUNICATIONS SERVICE 7. INDUSTRIAL RADIO SERVICES 8. LAND TRANSPORTATION RADIO SERVICES 9. CITIZENS RADIO SERVICE W. ENFORCEMENT UNIT 11. STATISTICS ----==~==~==== 1. GENERAL ~Iostof the llonbroadeast radio services are grouped together in what is knO\vn as the Safety and Special Radio Services. They con stitute the greatest l1lUllbel" of radio stations licensed by the Com mission. Utilization of these services by individuals, industry, com merce, and state and local government comprise a broad field of oper ations III connection with protection of life and property, industria.] and agricultural production, transportation, disaster, and civil de fense. The services fall into four main categories: Safetysel'vices.-~teronalltjcal,~Iarine,Police, Fire, Forestry-con servation, Highway l'laintenanee, Special Emergency, and State Guard. Industrial servic(>s.-Power, Petrolenm, Forest Products, Special Indu8trial, Low-power Industrial, Relay P}'ess,~fotionPicture, Agri culture, and Radiolocation-Iand. Land transportationsCl'dees.~Railroad,Urban Transit, Intercity Bus, Taxicab, AutomoLile Emergency, Highway Truck, and Citizens. Amateur and disaster services. As can bp sepn from the statistical tables at the end of this chapter, these services, now comprising over 212,000 radio stations, continue to expand. The need for full employment of the capabilities of radio in connection with police and fire protection, aids to navigation (both ship and aircraft), emergency calls for doctors and ambulances and ethel' activities directly related to the public safety is readily apparent. 69 70 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The indirect public benefit from the employment in commerce of modern radio equipment and procedures is gaining increased recog nition.~foreand. more industries, in addition to the transportation, pipe line, power and other utilities, are finding that the efficiency of their operations may be greatly increased by the use of radio tech niques. Thus, the licensing and regulatory problems become progres sively complex as additional transmissionsar~introduced into the available spectrum space. Since one may not operate a transmitter without regard to other licensees, it is necessary that there be main tained a high level of compliance with the detailed regulations govern ing operation and maintenance of radio stations. This places an increasing importance upon the function of enforcement on a nation \vide scale. 2. MARINE RADIO SERVICES GENERAL :Mul'ine radio stations licensed by the, Fedentl Communic.ations Com mission consist of stations on land and aboard ships. Most of these stations intercommunicate and serve marine safety, navigation, oper ational and general comnnmicatioll purposes, Some of these stations, however, sueh as ship radar stations, do not '''communicate'' in the ordinary sense of the word bnt simply emanate and receive radio signals which are useful to assist ships in navigating safely. l\larine radio stations may be classified into various categories which often overlap but which also possess important characteristics unique to each category, For example, ship stations may be divided into radiotelephone and radiotelegraph, public correspondence and non public correspondence, domestic and international, compulsory in stalled and voluntarily installed. Except for the latter, marine sta tions on land may be divided into similar categories., Further divi sions may be made on the basis of the portion of the raelio spectnml used by marine radio stations for they are also unique in the extent to which frequencies utilized are scattered throughout the radio spec trum. Because of the multiplicity of these overlapping categories of marine l'adio stations, developments in any particular category of marine radio station often affect various other categories as well. SAFETY AT SEA The basic radio laws currently governing marine safety at sea are contained in the International Convention for the Saftey of Life at Sea, Title III, Part II of the Communications Act, and the Ship Acts of 1910 and 1912. These laws require for safety purposes the instal lation of radio equipment, and provide for qualified radio operators and other features desirable for the creation and maintenance of a REPORT OF THE FEDERAL COMCYlUNICATlONS COMMISSION 71 marine radio system. They apply respectively to certain classes of ships engaged on international voyages and which are registered in countries signatory to the Safety Convention, to vessels of the United States when navigated on the high seas (as of June 30, 1952 approxi mately 1,850 ships) and to vessels on the Great Lakes. In addition, vessels of countries not parties to the Safety Convention are subject to the requirements of Title III, Part II of the Commuuications Act when leaving United States ports. In 1D48 a new Safety Convention was negotiated at London. Dur ing the past year a suflicient Humber of ratifications of the convention were completed :::;0 that under its terms it will come into force on November IH, 10;)2. The new convention will impose radio installa tion requirements W11ich, in~venllrespects, exceed those now con tained in the Communications Act or the 1929 Safety Convention. Cargo ships of fl'OlU 500 to 1,HOO gross tons not heretofore compusorily equipped with radio installations will be compelled to carry radio installations (either radiotelegraph or radiotelephone). Cargo ships of 1,600 gr'oss tOllS and over will be required to carry radio direction finders. Ships will be required to carry portable radio installations capable of being used in lifeboats. There will also be a number of minor additional radio reqllirements applicahle to vessels navigated on international voyages. In order to translate these new require ments into rules for the guidance of industry and to facilitate COlll mission administration, several studies were instituted during the past year, although as of .June i.W, 19;";:2, much of this work had not ucen completed because of insufficient staff. Aside from the matter of necessary implementatioll of the Safety Convention, changes in Title Ill, Part II of the Communications Act were founu to be desirable in order to avoid inconsistencies between the two laws, and to bring the requirements of the act up to those of the new convention. A study of such changes to the act has been completed. Formal proposals to Congress for amendment of the act in this regard have not yet, however, been submitted. In 1940 the Commission completed a report to Congress on marine radio safety requirements for the Great Lakes. Further action in this regard was, however, withheld because of 'World ,Val' II. Sub sequent to the termination of the war, discllssions with Canada were instituted and finally on February 21, 1952, at Ottawa, Canada, an "Agreement for the Promotion of Safety on the Great Lakes by Means of Radio" was signed. This agreement, which will come into force two years after the date on which the instruments of ratification are rxchanged between Canada and the United States, will require that several hundrecl Great Lakes vessels be equipped with radiotelephone installations and maintain radio watches for safety purposes. These 230960-fi2-6 72 REPORT OF THE FEDERAL COMM"UNICATIONS COMMISSION requirements are in contrast to existing radio safety requirements contained in the Ship Act of 1910 and 1912, under which an extremely limited number of passenger ships are required to be equipped with radiotelegraph installations. Significant developments took place during fiscal year 1952 in mari time safety radio systems using radiotelephony. Traditionally, such systems have been based upon the use of telegraphy. The heart of a maritime safety radio system is the use of a common distress and calling frequency. For radiotelegraphy, this has been the frequency 500 kilocycles. In 1047, however, at the International Telecommuni cation and Radio Conference (Atlantic City), the freqnency 2182 kilocycles was selected as the future international calling and distress frequency for marit.ime stations using telephony. At Geneva in 1951, international agreement was reached on a world-wide effective date for use of this frequency beginning May 1, 1952. The Great Lakes Treaty referred to above is based npon thc use of 2182 kilocycles by ship radiotclcl,houc stations as are the provisions of the 1948 Safety Convention dealing with compulsorily installed radiotelephone sta tions. In addition and beyond the radio installations subjcet to these international requirements, Commisslon rules adopted on April 2:3, 1952, will eventually require coast and ship stations voluntarily em ploying radiotelephony within the freql2 United States ships, on all but one of which the majority of all of the personnel abroad were rescued or possible loss of the ship averted. Such rescues and prevention of property loss serves to demonstrate the importance of radio as an element of safety at sea. One of the major marine disasters during the fiscal year involved the United ,states vessel Flying Enterprise which, on December 28, 1951, sent an 80S reporting that the ship had developed a craek in her hull during a hurricane in the North Atlantic and was drifting helplessly with a 45 degree list. A number of vessels responded and rescued the passeng ers and crew. The ship's master elected to remain aboard, and per sonally continued to nse the ship's compulsorily installed radiotele graph equipment as well as radiotelephone equipment voluntarily earried to summon further aid and direct salvage attempts. RADIO AIDS TO NAVIGATION Authorizations were renewed for operation on a developmental basis of shore-based radar stations in the harbors of Long Beach, San '74 REIPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Francisco, and Los Angeles, Calif., and New York, :'of. Y. These sta tions are being developed for the purpose of providing information to assist in the safe piloting of ships entering, leaving, or mooring with in the harbor. Since the Coast Guard has the responsibility of pro viding and supelTising public aids to marine navigation, the estab lishment of these private aids is effected only with the concurrence of that agency. Very high frequency maritime radiotelephone systems are being used developluelltaUy by these radar stations to cOlnmunlcate with pilots on board ships to furnish navigational information. The experimental shore based radar statione~tablishedin the :'ofew York harbor area has been of particular interest since the experiments have involvc(l theus~of 3 centilneter radar, 10 centimeter radar,VH~' ~lndUHF transmitting equipment as well as special plotting techni ques and the lIse of u method of ship identification on the radar screen. Reflection type plotters permitting direct plotting on the radar indi cator inclnding the placing of permanent buoy and other landmark positions have beenll'ed. This type of plotter may find a ready appli cation to future and existing shipboard radar installations. The method of ship identification on the shore based radar involvps the use of a special but comparatively simple equipment on board the ship to be identified for trucking purposes. Two manufacturers have developed and tested identification eqnipment in connection with the experimental radar installation. The equipment involves tnggering; by the shore based radar and the return of a signal that appe"rs on the radarscope adjacent to the target pip. The experiments have also demonstrated the efficiency of portable VHF FM radiotelephone equipment. A radio frequency power us low as 114 watt has been used for an effective comnnmication range of about 7 miles. Eight developmental authorizations were renewed for shore-based radar stations used in connection with the training of merchant marine deck officers in shipboard radar openttion on the Great Lakes "nd on the seaboard. As of Jnne 30, 1952, there were more than 1,950 United States merchant ships authorized to use radar. Pursuant to an international agreement, the ship transmitting fre qnency 375 kilocycles will, after Xovember 1, 1952, no longer be as signable as a direction-finding frequency. The new frequency for this purpose is 410 kilocycles. To permit a transition period for readjustment or modification of ship radiotelegraph transmitting equipment on compulsorily equipped ships, the Commission amended its rules to accept either 375 or 410 kilocycles as the required direction finding freqnenc)' until November 1, 1952, and, thereafter 410 kilocycles. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 75 INTERNATIONAL FREQUENCY COORDlNA'l'ION The International Telecommunications Conference, Atlantic City, 1947, extensively revised allocations of frequencies for the maritime mobile service in the bands below 27,500 kilocycles. However, it was not until the past year at the Extraordinary Administrative Radio Conference, Geneva, that agreement was reached as to methods and dates for implementation of the Atlantic City allocations. Since this ngreement was reached, variousstudie~have been initiated and several affirmative administrative movesh~l\'ebeen made with a view to facili tating the movement of maritime radio stations to frequency assign ments in accordance with the Geneva agreement. COAST STATIONS Coast stations are normally located near the sea, lakes, rivers or other waterways for the purpose of communicating with ships. There are t,,'o classes of coast stations authorized by the Commission; namely, pnblic and limited. A pnblic coast station is open to public correspondence whereas a limited coast station is not open to public correspondence but scrves the operatiC)linl and business needs of ships associated with the particular coast station. During the fiscal year, public radiotelephone facilities operating in the 2 megacycle band wcrc added to station WLO at Mobile, Ala. Public coast stations crnploying telegraphy at )Iackinae Island, fiEch. nVHQ), amI at Lake Charlcs, La. (WNE), havc discontinued opera tion. The Commission has l'eceived an application from Tropical Radio Telegra-ph Company for the discolltintlunce of public coast teIe graph station, 'VBF, at Hingham, :Mass. Station 'VBF has indi cated a decline in telegraphic traffic due largely to coastwise vessels shifting to the use of radiotelephone. There were 35 coast stations licensed to use telegraphy in the United Sta.tes at the end of the fiscal year. In addition 58 coast stations were using telephony for regional~en'ice(2 to 3 megacycle hand) exclusive of Alaska. There are five coast stations in the United States employ ing telephony on high frequencies for long-distance public service with oceang-oing vessels. In the very high frequency band, a number of coast stations em ploying telephony have been authorized in the regular service which wcre formerly authorized as class 2 experimental stations. The Com mission's records indicate that 12 limited coast stations, 2 public coast stations, and 1 receiver test station are authorized to use VHF on a regular basis. There are 66 limited coast stations, 18 public coast stations and 5 marine receiver test stations operating experimentally which are rcqnired to be licensed on a regular basis by November 1, 10ti2, if operation of these stations is to be continued. 76 REIPORT OF' THE FEDERAL COMMUNICATIONS COM.'\1ISSION During the past year the Commission ,vas able to bring about ad justments in frequency allocations which permit uniformity of fre quency assignments to all public coast stations using VHF telephony. Previously, the frequency assignments available for such stations in the Chicago area differed from those which were common to all other areas. This change in frequency assignments relieved operational and ship station equipment problems which had resulted from the previous lack of uniformity. VOLUNTARY USE OF RADIO TELEPHONY There are approximately 30,350 vessels of United States registry with licensed radiotelephone stations for operation on frequencies in the 2000-3000 kilocycle baud. These vessels may communicate with shore stations or with other vessels for public correspondence, naviga tional and safety purposes. Since the frequencies in this band are relatively congested, t.he Commission is constantly endeavoring to control and regulate their use iu order that they may more effectively serve their intended purposes. The Extraordinary Administrative Radio Confereuce (Geneva, 1951) has provided a list of frequency allocations for marine radiotelephone use in the 2000-3000 kilocycle band which, when cleared for use, will make further frequencies avail able for this rapidly growing radiotelephone service. One of the ways in which it is anticipated that congestion in the band 2000-3000 kilocycles may be relieved is by increasing use of the very high frequencies in the 152-162 megacycle band. Experience with the marine communications system now established in the VHF band indicates t)lat there is available a highly satisfactory communica tion service for many comparatively short-distance purposes. The quality of the circuits is excellent, interference being at a minimum. For many there is provided a much needed expansion of channels for public correspondence, safety, business and operational purposes. A feature in the use of maritime mobile frequencies was recently intro duced by the Commission in permitting eOlnmunication on maritiIne mobile very high frequencies between land stations and mobile sta tious on land when the latter stations are required to expedite ship construction or repair activities in commerce. These stations will be authorized for secondary communication as a "shipyard base station" and "shipyard mobile station" to licensees of limited coast stations. Since many ships travel on international voyages, it has been a traditional purpose in marine radio to achieve world-wide standard ization. Ho·wever, a serious obstacle to such standardization in VHF telephony has arisen because of a divergence in types of modulation used. In region 2, which includes North and South America, fre quency modulation is required by international agreement. Although REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 77 international regulations recommend, but do not prescribe, the USe of frequency modulation in Regions 1 and 3, information received indicates a trend by European nations toward use of amplitude modu lation. Commissioner Edward M. Webster is now in Europe con ferring with British authorities in this regard. An important development in the field of voluntary radiotelephony during the past year was the adoption by the Commission of a group of rules (docket D7D7) which look toward the use of a calling-working method of operation in the medium and very high frequency bands. These provisions require, after certain effective dates, ship stations and public coast stations to be equipped to transmit and receive on the safety (distress) and calling frequencies 2182 kilocycles and 156.8 megacycles respectively-dependent upon whether the station operates in the medium or very high frequency bands. Further, the rules create certain watch requirements and provide for initial ship-to-ship calling aud answering on the designated frequency. It is believed that the adoption of a calling-working frequency method of operation in the bands involved will mean more efficient use of frequencies at fhe same time serving maritime safety purposes. MARITIME FIXED SERVICES In this service the Commission has licensed 62 marine fixed stations. These statioIls use ship radiotelephone frequencies as they are nor mally located in waters adjacent to the coast and are authorized to com municate with nearby public coast stations primarily for safety pur poses. This class of station is intended to meet the communication needs of the petroleum industry in off-shore, oil-well drilling operations. The Commission has licensed one marine control station. This class of station provides for the remote control of transmitters by radio where this is necessary in lieu of land wires. Operation of these stations are in the 72-76 megacycle band. FIXED PUBLIC SERVICE AND MARITIME MOBILE SERVICE IN ALASKA Due to the scarcity of wire facilities in Alaska, radio communica tion between communities is carried on to a large extent by radio telephone and radiotelegraph. Special frequencies are allocated for communication between communities in Alaska, with the Alaska Com munications System, and between coast stations and ship stations in Alaskan waters. The main intra-Alaska communications routes are operated by the Alaska Communication System (ACS) under the Department of National Defense. The Alaska Communication Sys tem routes message traffic to all parts of the world. The Commission maintains liaison with the ACS in coordinating communications facilities in Alaska to serve the public interest. 78 REPORT OF THE FEDE,RAL COMMUNICATIONS COMMISSION The Commission has under study the revision of Part 14 of the Rules Governiug Radio Stations in Alaska dealing with the fixed public and coastal services. Several administrative problems exist becallse of the obsoleteness of the present rules, an increasing need of frequencies for public communication by non-GoverlUuent and Government stations in Alaska, and the possibility of a growing duplication of radio facilities as between the Alaska Communication System and the non-GovPl'nment stations at certain locations. The necessary corrective action has been delayed because the limited Com mission staff must give priority to more pressing work. At the close of the fiscal year, there were, exclusive of Government stations, 484 point-to-point telephone stations and 84 point-to-point telegraph st.,tions operating in the fixed public service, a total of 568 stations. In addition,~67.public coast stations employing telephony and 12 public coast stations employing telcgraphy are authorized, a total of 379 stations; making a grand total of 947 stations licensed by the Commission serving the Territory of Alaska. RULES GOVERNING STATIONS IN THE MARITIME MOBILE SERVICE On July 20, 1951, the Commission made effective an extensive re vision of Part 7 of the Rules Govcl>ning Stations on Land in the ~faritimc~IobileService and Part 8, Rules Governing Stations on Shipboard in the Maritime Mobile Serviee. Because of certain ques tions raised by comments on the proposed rnles (docket 9797), the Commission heJd oral argument on these controversial sections and on April 23 1 1952 issued a Seeond Heport and Order furtherrevisin~ the rules. 'With that issuance, the Commission completed an overall revision of the rules regulating the maritime services which was first initiated in 1950. RADIO TECHNICAL COMMISSION FOR MARINE SERVICES The Radio Technical Commission for Marine Services (RTCM), which is a cooperative association of the United States Government industry marine telecommunication agencies, continued to be closely associated with the Commission's marine activities. The Commission is furnishing an electronics engineer who is devoting full time as Executive Secretary to that organization. Seven Government agencics which include the Department of State, Department oftheTreasury (Coast Guard), Department of the Army, Department of the Navy, Department of Commerce, Federal Com munications Commission, and the~IaritimeAdministration, work by committees in the RTCM with representatives from 130 marine tele communication industry groups. The RTCM operates, in part, by establishing special committees composed of technical experts to study problems. It would be im- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 79 possible for individual organizations to purchase the talent which the RTCM provides for technical studies. The various agencies, Government and non-governmental, which have responsibilities for regulating or for implementing marine ele.ctronic services, work to gether in a review of the problems from every viewpoint involved. The special committees produce a report which normally will contain their recommendations. This report, after approval by the RTCM Executive Committee, is circulated to the entire membership and other interested agencies. On March 18, 1952, the RTCM completed a "Review of Existing United States Policy with Respect to Medium Distance Navigational Aids". The special committee making the study was under the chairmanship of Captain R. M. Cross, Coast Guard. On April 22, 1952, the RTCM completed a study of the portable radio lifeboat equipment required by the Safety of Life at Sea Con vention (1948). The spe6al committee making the study was under the chairmanship of R. E. Simonds· of the Radiomarine Corporation of America and the study was made at the request of the Federal Communications Commission. On May 27, 1952, the RTCM completed the study on the timing tolerance of the 500 kilocycle auto alarm with a recommendation for the interpretation of Regulations of the Safety of Life at Sea Con vention (1948) to meet the international requirements. This study was made at the request of the Federal Communications Commission and William N. Krebs, Chief of the Commission's Marine Division, was chairman of the special committee. Other RTCM special committees were established during the past, year to study: (1) The Marine Identification Problem, whereby one ship equipped with a radar, may be able to identify a particular ship and be able to communicate with the other yessel. This special com mittee is under the chairmanship of E. F. Phillips of the National Federation of American Shipping; and (2) the standardization of marine radiotelephone channels. A special committee ispres~ ently working on selective signaling and ringing devices for marine radiotelephony. 3. AERONAUTICAL RADIO SERVICES Radio communication facilities are essential in connection with the operation of aircraft under all weather conditions, both from the stand point of safety of life and property as well as for efficient, expeditious, and economical operation of aircraft in general. Under the Commission's jurisdiction and supervision, theAero~ nautical Radio Services provide these facilities through Aircraft radio stations, aeronautical Land and Aeronautical Fixed stations, 80 REPORT OF THE FE'DERAL COMMUNICATIONS COMMISSION Airdrome Control stations, Aeronautical Mobile Utility stations, Aeronautical Advisory stations, Flying School stations, Flight Test stations, Aeronautical Public Service stations, Civil Air Patrol sta tions, and Navigational Aid stations which includes radio beacons, ranges, radar devices, direction-finding systems, approach and instrument landing systems, and distance measuring devices. The use of aviation radio has expanded rapidly. At the close of the fiscal year 1946 there were 6,205 aeronautical stations of all kinds. At the close of the fiscal year 1952 there were 32,239 authorized aircraft and ground radio stations. AVIATION ORGANIZATIONS AND CONFERENCES Flight safety and regularity require a well-planned communication service for air transportation. This factor coupled with need for realizing maximum utility of the frequency spectrum available to the aeronautical services makes it essential for the Commission to devote considerable time to anti actively participate in the work of those committees and international organizations concerned with aeronau tical telecommunication problems. The more prominent domestic committees are the Air Coordinating Committee and the Radio Tech nical Commission for Aeronautics. The international organizations are the International Civil Aviation Organization and the Interna tional Telecommunications Conference (ITU). The Radio Technical Commission for Aeronautics (RTCA) is a cooperative association of the United States Government-Industry Aeronautical Telecommunications Agency. It conducts studies of aeronautical telecommunication problems and related matters for the purpose of providing- guidance to, and coordinating the efforts of, the organizations concerned. One of the major and continuing activ ities of the Commission involves participation in the Executive Com mittee, and special technical committees of the the RTCA. During the past year the RTCA has studied and is making recommendations on matters such as: (1) Implementation of the very high freqnency (VHF) utilization plan and review of transition period communication requirements. (2) High altitnde grid plan for VHF omnidirectional radio range and distances measuring equipment (VOR/DME) fre quency pairing. (3) Minimum performance requirements for airborne elec tronic equipment for the transition period common system. (4) Amended program for implementation of the common system of air navigation traffic control, and (5) Evaluation of the necessity for VOR test signals. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 81 The lTD is an international organization of states formed in order to improve the efficiency of telecommunication services and provide a means for effecting collaboration in the allocation, allotment and assignment of freqnencies. The final acts of the lTU and Radio Conferences, Atlantic City, 1947, allocated exclusive frequency bands to the aeronautical service. The International Administrative Aeronautical Radio Conference (IAARC) Geneva, 1948-49, developed a frequency allotment plan for the aeronautical mobile service. This plan was adopted by the Extraordinary Administrative Radio Conference (EARC) Geneva, 1951, and a program was evolved for bringing the exclusive aero nautical mobile bands into force. The Commission participated in the preparation of a United States position for the EARC and nom inated a representative to assist the chairman of the United States delegation on aeronautical telecommunications problems. Based on the fiual agreements of this conference, voluminous work has already been accomplished by the Commission in collaboration with special committees and other Federal agencies to plan for an orderly imple mentation of the program adopted by the EARC to bring into force the Atlantic City table of frequency allocations below 27,500 kilo cycles. The Air Coordinating Committee is a Federal interdepartmental committee with responsibility for coordinating United States policy in the field of aviation. The committee was primarily established to examine aviation problems affecting more than one participating agency and to make recommendations directed toward resolving these problems. The Air Coordinating Committee is composed of stand ing committees, panels, subcommittees, ad hoc committees, andwork~ ing groups. Since many of the problems submitted to the ACC re late to aeronautical telecommunications, the Commission finds it nec t'ssary to participate as a member in the following committees and subcommittees: Technical Division: Air Traffic Control and Navigation Panel. Airmen Qualification. Airspace-Rules of the Air and Air Traffic Control. Aeronautical Communications & Electronic Aids. Search and Rescue. Some of the major activities of the Air Coordinating Committee in which the Commission participated are as follows: (1) Continuing the implementation of the common system all-weather traffic control program. (2) Conducting aeronautical study of applications for antenna towers which may become a hazard to air navigation. 82 REPORT OF THE FE'DERAL COMMUNICATIONS COMMISSION (3) Formulating policy for the guidance of the United States representatives to the ICAO on particular international aero nautical telecommunication problems. (4) Review and study of the over-all domestic aeronautical telecommunications policy. (5) Study of the United States policy and program for long distance aids to air navigation. (6) Preparation of United States position to regional meet ings of the ICAO. The International Civil Aviation Organization (ICAO) was es tablished by the Convention on International Civil Aviation for the purpose of developing standards and recommended practices for in ternational civil aviation in order to insure a safe, regular and effi cient air transportation system. There are 57 contracting states in the ICAO. TJ,e organization consists of an Assembly, a Council of 21 contracting states (including the United States), the Air Navi gation Commission, the Air Transport Committee, the Finance Com mittee, the Committee on Joint Support, and the Legal Committee. The administrative functions of the organizations are under the Secretary General. Technical conferences, regional and special meetings are convened as necessary and with participation by inter ested contracting states. The Commission has taken an active part in the preparation of a United States position on communication matters for two ICAO regional meetings during the fiscal year and furnished an adviser to each delegation. These meetings were: The South American South Atlantic Regional Air Navigation meeting, Buenos Aires, October 1951, and the Third European-Mediten'anean Regional Air Navigation meeting, Paris, February 1952. AIRCRAFT RADIO STATIONS At the close of the fiscal year there were 29,599 authorized aircraft radio stations, which was about the same number as in 1951. Of this figure 27,678 were private aircraft. During the year many aircraft authorizations were modified to permit communication with aeronautical advisory stations regard ing the condition of runways, type of fuel available, wind conditions, weather, and other infonnation necessary for aircraft operation. Further, aircraft authorizations, in increasing numbers, have been modified to permit operation in the very high frequencies (VHF) which have been made availahle for assignment to aircraft. AERONAUTICAL LAND AND AERONAUTICAL FIXED RADIO STATIONS These facilities, of which there are 1,183 authorized for operation, provide the necessary communication for the safe expeditious, and REPORT OF THE FEDERAL COMMUNICATIONSCOM~ISSION83 economical operation of aircraft. Aeronautical land stations are used for communicating with aircraft whereas aeronautical fixed stations are used for point-to-point communications. In the United States, aeronautical fixed stations are used primarily as "back-up" circuits for land-line facilities; however, in international operations, aeronautical fixed stations provide the primary service. Civil Air Regulations require domestic air carriers to maintain radio telephone communication facilities at terminal and at such other points as may be deemed necessary by the Government to insure a satisfactory two-way ground-air communication service over the entire aircraft route. CIVIL AIR PATROL RADIO STATiONS These stations are used in connection with the Civil Air Patrol ac tivities and emergencies pertaining to the proteetion of life and prop erty. The stations, operating on frequencies made available by the United States Air Force, are also used by members of the Civil Air Patrol in connection with air shows, missing aircraft search missions, training missions, and communication systems at encampments, bases, and official meetings. There are now 798 Civil Air Patrol ground radio stations and over 10,000 associated mobile units. AmDROME CONTROL RADIO STATIONS Airdrome control radio stations, for the most part, are operated by t.he Civil Aeronautics Administration. These stations are used for (·ommunicating necessary control instructions to aircraft arriving at and departing from airports. Such control is mandatory in directing such aircraft so as to maintain safe separation of aircraft to prevent eollisions and to provide an efficient flow of air traffic into and out of airports. These stations may als'o communicate with aeronautical mobile utility stations installed aboard vehicles essential to the opera tion of an airport. There are now 59 stations of this type licensed by t.he Commission. AERONAUTICAL MOBILE UTILITY STATIONS This facility is installed aboard ground vehicles which are essential t.o the operation of an airport and provide communication between such vehicles and the airdrome control tower and aircraft on the ground. The airdrome control tower radio operator maintains direct contact and control over these stations at all times. This service is used by many municipalities.lIJld individuals concerned with the care and upkeep of airports. There are 105 aeronautical mobile utility st.ations authorized for operation. 84 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION AERONAUTICAL NAVIGATIONAL AID RADIO STATIONS These stations involve the transmission of special radio signals intended solely to assist in the determination of aircraft position, in cluding that relative to collision hazards. The navigational aid sta tions include radio beacons, radio direction-finders, radio ranges, Ioealizers, glide path, marker beacons, ground control approach, in strument landing, radar, and distance measuring stations. Air navi gation aid facilities are usually operated by the Civil Aeronautics Administration. However, the frequencies which these facilities em ploy are available for licensing by the Commission at those locations where an applicant justifies the need for such service and the Govern ment is not prepared to render this service. At the close of the fiscal year, 166 aeronautical navigational aid type facilities had been authorized. FLYING SCHOOL RADIO STATIONS Aircraft and ground flying school radio stations are used for com munication pertaining to instruction to students or pilots while ac tually operating aircraft. There were 20 such stations authorized for operation. FLIGHT TEST STATIONS Aircraft and ground flight test stations are used for the transmis sion of essential communications in connection with the tests of air 4 craft or major components of a.ircraft. This operation involved 100 stations. AERONAUTICAL PUBLIC SERVICE RADIO STATIONS Aircraft public service radio stations are used for private telephonic comnumications between individuals aboard aircraft in flight and persons on the ground using land-line facilities. The aeronautical public senicestation connects with the nation-wide land-line telephone system through the facilities of public coast stations. 4. PUBLIC SAFETY RADIO SERVICES POLICE RADIO SERVICE The Police Radio Service, the oldest of the Public Safety Radio Services, is intended primarily to provide for the radiocommunica tion needs of police departments; however, the Commission, realizing that there are instances where a police radio system serving the smaller communities may also be used advantageously to provide for the needs of other departments, has extended the scope of service to include the transmission on a secondary basis of messages essential to other official activities of the licensee pertaining to the public safety. Constantly expanding, the Police Radio Service now serves vir tually every square mile of the country. There were 7,008 stations REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 85 authorized at the end of the fiscal year. To simplify the work related to the licensing of these systems, the Commission has adopted the practice of issuing one station license for each base station and all associated mobile stations. Therefore, to estimate the number of transmitters actually used in the police service it is necessary to re appraise the number of stations given above. Experience gained in making statistical surveys in the past indicates that on an average there are 12 mobile stations for each base station. So it may be presumed thnt the 7,OO() licensed stations cover the operation of 85,()()() mobile stations. The successful completion of an intensive search for a complement of frequencies with suitable propagation characteristics to enable the Territory of Alaska to establish and intercommunicate between police radio stations located throughout the entire Territory was com pleted when the Commission on November 14, 1951, allocated the fre quency 5135 kilocycles for use by fixed police radio stations in Alaska with radiotelephone emission. The relatively long distances between population centers, the very Jueager landwire facilities and extreme weather conditions posed a communication problem which differs quite radically froIll the usual sitnation in the United States ,,,here the service area of a station nor mally extends over. distances of a few miles and networks of these sta tions can be connected by teletype circuits or radio stations using medium high radio frequencies of the order of 2 megacycles. At the very outset it was clear that all frequencies with suitable propagation characteristics Were already in use throughout the Territory and the United States. Only after a frequency-by-frequency study of all radio stations-both military and non-Government-and by shifting a number of military stations to other frequencies was it possible to clear the use of the frequency 5135 kilocycles in Alaska. This fre quency along with 2442 kilocycles and 748() kilocycles which were pre viously cleared for the police service of the Territory of Alaska are used to maintain communication between 11 fixed stations scattered throughout the Territory and mobile stations patroling the highways connecting its cities. Heretofore intercommunication between Federal Government sta tions and stations in the Public Safety Radio Services has been pos sible only when each party installed receivers tuned to the other's frequency, or, alternatively, the Federal Government installed under the authority of a general regulation appearing in an Executive Order of the President a transmitter tuned to the frequency of the Public Safety Radio Station. In order to provide means for even closer coordination between Public Safety stations and Government stations, the Commission, 86 REPORT OF TIlE FE'DERAL COMMUNICATIONS COMMISSION after consulting with other Federal~genciesthrough the Interdepart ment Radio Advisory Committee, amended Part 10 of its rules, effective May 15, 1952, to permit assignment of frequencies to Public Safety stations which are assigned under Executive Order of the President to Federal Government stations upon an appropriate showing that such assignment lS necessary for intercommunication \vith Govern ment stations or required for coordination with Federal activities. By permitting the s)lared use of frequencies by Federal Government stations and Public Safety stations, the agencies involved have greater latitude in the preparation of their plans to cope with any particular problem that may arise. Many police systems have during the year installed auxiliary equip ments at dispersed locations in connection with their civil defense preparation. Such illstallations increase the assurance that these vital communications will perform satisfactorily in the event of a wide spread emergency and enhance the ability of police departments to accomplish the greatly expanded job which will result from such an emergency and the fllll activatIOn of the civil defense activity. FIRE RADIO SERVICE The Fire Radio Service may be used by all governmental agencies except the Federal Government. Other organizations such as volun teer fire departments and commercial companies established to pro vide a fire-fighting service may also obtain license upon proof of their responsibility for fire protection in a particular area. This service is primarily designed to provide communication from fire headquarters to mobile units of fire apparatus on call and between such mobile units on the fire scene including hand carried transmitters and receivers used by firemen frequently inside of a burning structure. Increasing use, however, is being made of several secondary provisions of the service, the'more important being one way transmissions from headquarters to receivers in the homes and places of business of volunteer firemen giving the address and details of a fire call so that they may proceed directly to the fire as well as intercommunication between varions fire headquarters for mntual aid and civil defense preparedness. This service continues to grow steadily. For the second consecn tive year the number of stations has increased over 50 percent. At the end of the fiscal year 764 fire stations were authorized to operate ,m estimated 12,000 radio transmitters. FORESTRY·CONSERVATION RADIO SERVICE Forestry-Conservation radio stations are used primarily by State governmental departments for fire protection of forest areas and REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 87 other conservation activities. A small number of municipalities and counties have obtained licenses to cover stations used to communicate with State-operated forestry stations so that in time of emergency the fire fighting facilities of the cities may be used to supplement the State-owned equipment. This form of coordinated operation occurs primarily in the New England and \Vest Coast~tateswhere forest areas and population centers are interwoven. This service provides an extremely rapid, flexible, and reliable means of communication that cannot be obtained in any other way. In practice, fire wardens stationed in the 'fire to\Ver8 detect and locate the exact position of the fire by triangulation methods. Upon receipt of a report of the existence of a fire, field crews with radio equipped mobile vehicles and fire fighting apparatus are rushed to the scene of the fire. Here men carrying small, lightweight transceivers ap proach the actual fire and make an on-the-spot appraisal of ·what is needed to extinguish the fire. Their report is usually relayed by the nearby mobile stations to headquarters where it can receive immediate attention. Prompt action in extinguishing fires is an absolute must. So im pOl·tant is time that many States nse aircraft to drop men and equip ment by parachute at the scene of the fire. By such methods it often times is possible to put the fire out without additional aid. If more men and equipment are needed, the man on the ground uses his radio to report his needs to the aircraft or nearby base station. During the fiscal year ending .Tune 30, 1952, the number of stations grew to 2,070, operating an estimated 16,000 radio transmitters. HIGHWAY MAlNTENANCE RADIO SERVICE The Highway Maintenance Radio Service is restricted to States, Territories, possessions, and other governmental subdivisions includ ing counties, cities, towns, and similar governmental entities. The use of radio by highway departments has proved to be so effec tive that the prompt location and dispatching of road-clearing equipment to clear road obstructions such as wrecked automobiles, fallen rocks, road and bridge washouts has proved to be an inestimable service to the motoring public. By equipping the mobile highway vehicles with radio it is possible to direct their operation very closely to obtain the maximum service. Through the use of radio, many licensees have been able to demonstrate that the total cost of such installations is recovered in 1 to 2 years through improved supervision and utilization of the road construction equipment and personnel. The Highway Maintenance Radio Service-established in IV4V ,'cached a total of 555 stations at the end of the fiscal year 10.')2. 2~OD6O-52-7 88 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION SPECIAL EMERGENCY RADIO SERVICE The Public Safety Services described previously are intended pri marily to provide radio communication for governmental agencies to aid them to discharge their official duties. On the other hand, the Special Emergency Radio Service is intendecl to provide emergency communication for. individuals and companies who provide an emer gency service such as beach patrols, public ambulance companies, and physicians normally practicing or operating in remote areas where other communication facilities are not available. Other classes of eligibles are persons operating in remote locations where other com munication facilities are not available, organizations established for relief purposes in emergencies and which have a disaster communica tion plan, school bus operators, and communication common carriers. Physicians and ambulance services received the greater part of the licenses issued; however, a more significant· and undoubtedly equally important increase has occurred in the group of organizations which are setting up disaster relief systems in their civil defense plans in the Special Emergency Radio Service.~IallYluunicipalities are en gaged in organizing radio communication networks using special emergency stations to provide intercommunication "lith the regularly established public safety stations and to connect designated civil de fense locations where supplies and assistance will be available. At the close of the fiscal year 670 stations were authorized. The Commission on April 18, 1952, issued a notice of proposed rule-making involving a major revision to the rules governing the Special Emergency Radio Service. Experience gained whlle admin istering the present rules showed a need for clarification and a broad ening of the eligibility provisions. A study of the comments and recommendations filed by interested parties is under way and final action is expected in the near future. S'IA'IE GUARD RADIO SERVICE State Guard Radio Service may be used only by State military organizations under State directions. These stations are used pri lnarily for the transmission of emergency conullunication relating to the public safety and the protection of life and property. In addi tion, these stations may be employed during drill and training period to develop proficiency in the use of the equipment and more efficient organization. Seventy-six State Guard stations had been licensed by the close of the fiscal year. During the year the Commission maintained close liaison with licensee groups in the Public Safety Services through representation at a number of national meetings of the services involved as well as through attendance at Government called meetings iu iVashington. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 89 The importance of these services such as Police, Fire, and Forestry has placed this activity of the Commission in the very middle of civil defense planning in every area of the country. The increasing volume of work in connection with the expansion and integration of Public Safety Radio Systems into the civil defense picture is reaching pro portions which cannot be satisfactorily handled with the available personnel. 5. AMATEUR RADIO SERVICE The Amateur Radio Service is the area in the field of radio devel opment and operation reserved as a training ground for future radio experts and technicians and for persons who desire to engage in radio operation as a hobby. It is one of the oldest radio services and many authorities on radio can attribute present success in various commu nication fields to an earlier interest in amateur or "ham" radio operation. Eligibility in this service is based upon United States citizenship Rlld ability to pass prescribed amateur operator examinations in Inter national~IorseCode, radio theory, operation and laws, treaties and regulations to the extent that they relate to amateur radio operation. Existing rules provide six graduated classes of amateur operator licenses for which examinations aTe progressively more difficult. Eligibility for the two higher grade licenses requires certain experience under one or more of the lowel' grade licenses. The Amateur Radio Service is open to any United States citizen regardless of age, race, or sex, Communications may be local, or long distance, including communication with amateurs in various foreign countries. Many persons participating in this service develop out standing ability in one or more of the various phases of the art of radio communication. Through the exercise of their respective skills in de signing, developing, constructing, and experimenting with radio equipment, developing communication techniques, and by providing scientific observation, as well as the handling of third party messages, the radio amateurs have continued, through the past year, to demon strate that the privileges they have been granted are well justified. As of June 30, 1952, there were some 113,092 amateur radio station licenses and 110,968 amateur operator licenses in effect, an increase of approximately 22,500 and 22,200, respectively, during the year. The number of amateur stations remains slightly higher than the number of amateur operators llS a result of mllny of the latter being licensees of more than one amateur station, either as trustee-licensees of £tations used by amateur radio clubs, or by military units, or as owners of per sonal stations at more than one address. The number of these addi tional stations is balanced somewhat by a corresponding number of amateur operators who do not have amateur station licenses due, 90 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION principally, to being in the armed forces or otherwise unable to locate ,un amateur station at a permanent address. The popularity of the new Novice Class license, issuance of which commenced July 17, 1951, is reflected by the fact that 12,827 such li censes were issued in somewhat less than 1 year. A total of 3,615 new Technician Class licenses were issued during the same period. The number of Extra Class licenses at the close of business on .June 30, 1952, was over 900. This class of license first became available on January 1, 1952. Despite the enviable record of self-policing on the part of amateur licensees, it was necessary for the Commission to issue a number of citations in cases of frequency deviation or other infractions of its rules. The Commission also suspended the licenses of 11 amateurs in volved in more serious violations of rules, and revoked four licenses. In addition to the licenses revoked, it was necessary to designate three applications for hearing. In the first of these cases (docket 9955), the applicant filed a petition asking that his application for renewal of license be considered on the basis of information already in the Commission's files. The petition was denied. In the second case (docket 10114), a hearing was held beginning June 17, 1952, and the case is now pending decision. A third application, for a new Novice Class license, is scheduled for hearing. Several important changes were made in the amateUr rules during the past year. By far the most important change was the adoption on June 26, 1952, of new rules to govern the use of amateur radio stations and operators in providing civil defense communications. This new service is known as the Radio Amateur Civil Emergency Service (RACES). These rules, which will become effective August 15, 1952, divide Part 12 into two subparts of which the first includes all present rules governing amateur radio service and the second comprises new rules prescribing requirements for the use, under a separate or addi tional authorization, of amateur radio stations for civil defense com munications. The rules are limited in their force and effect to the period of the present national emergency as proclaimed by the Presi dent on December 16, 1950. Persons now holding amateur radio licenses can apply for this addi tional authorization but must furnish proof that the operation pro posed would be under and in accordance with approved civil defense plans. A station in this service may be comprised of one or several transmitters. Stations are to operate together in so-called networks which will be under the direction of a civil defense official called the Civil Defense Radio Officer. A communications plan, approved by the State civil defense organization having jurisdiction of the particu lar area to be served and by the Federal Civil Defense Administration, REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 91 is essential to the establishment of a network. Stations in this service may intercommunicate or may exchange messages with stations in other services, including stations operated by the United States Gov ernment. Communications may relate to any phase of civil defense work whether it be practice tests and drills or communications directly concerning safety of life, preservation of property, maintenance of law and order, or related emergencies. Unless the present national emergency intensifies to the extent that normal amateur communi cation must be suspended, operation of stations in this service must be upon a shared basis with normal amateur operation on the same or adjacent frequencies. Other changes in the amateur rules during the year include the pro vision of a procedure whereby persons who held an amateur license on or before April 1917, may qualify for the Extra Class operator license without additional examination; exemption in the case of persons holding the Conditional Class license from the requirement of reporting for reexamination upon change of residence and station to a new' site within an area where regular examinations are held, and elimination of the requirement for the filing of an application for modification of license in the case of persons residing, temporarily, at a location other than that specified in the station license. Several changes were made in respect to frequeneies available for use of amateur radio stations and emissions which may be used with such frequencies. These changes provided additional space in the frequency bands 3500-4000 kilocycles and 14,000-14,350 kilocycles for operation with narrow-band frequency and phase modulation for radiotelephony and deletion of the frequency band 14,350-14,400 kilo cycles from those available for use of amateurs in order to conform with the Table of Frequency Allocations set forth in the International Telecommunications Convention (Atlantic City, 1947). At the same time, and in accordance with the same Table of Frequency Allocations, the Commission opened up a new frequency band: 21,000-21,450 kilo cycles for use of amateurs. However, in making the new frequencies available for such operation the only emission provided was AI, or radiotelegraph, and rule-making concerning classes of amateur op erators, emission, bandwidth, and other particulars of operation in the new band is now pending. In addition to the foregoing rule amendments, the Commission ex tended for another year the provisions under which an amateur serv ing overseas in the armed forces of the United States is exempt from the showing that he actually operated an amateur radio station during the last year of the license period in order that a renewal of his license may be granted. During the year, the Commission received somewhat conflicting petitions in respect to providing for frequency-shift (Type F-l emis- 92 REPORT OF THE FE'DERAL COMMUNICATIONS COMMISSION sion) for radioprinter (teletype) operation on frequencies in the band 7000-7300 kilocycles. Also a petition was received for amendment of rules to provide for frequency-shift keying (Type F-1 emission) on all amateur frequencies below 27 megacycles for radioteleprinter and other similar operation. Rule-making was instituted in which it is proposed to provide more frequency space for frequency-shift key ing; permit some radiotelephone communication in the frequency band 7000-7300 kilocycles; provide mom frequency space for Novice Class operators; revise rules relating to station identification; and pre scribe standards to be observed in radioteleprinter operation. The extent to which these proposals are adopted will depend largely upon the comments made by interested amateurs. The Commission also proposes to eliminate certain restrictions in respect to operation in the amateur frequency bands 3800-4000 kilo cycles and 14,200-14,300 kilocycles to the extent that holders of Con ditional or General Class licenses at present are not permitted to operate in those bands with radiotelephony. If adopted, this amend ment would open up additional frequency space, formerly reserved for holders of the Advanced and Extra Classes of licenses, to persons holding General and Conditional licenses. At the time the Commis sion initiated this proceeding, it denied a petition from the American Radio Relay League requesting that the Commission continue to issue new Advanced Class licenses after December 31, 1952, which is the cut-off date for issuing such new licenses. Interference to the reception of television broadcasting continues to be a matter of concern to the Commission and to amateurs through out the United States. The Commission is continuing to conduct stndies with a view to clarifying individual responsibilities in cases where the operation of amateur stations causes interference to TV reception; however, definite standards have not yet been adopted for this purpose. The Commission's field engineers, individual amateurs, and amateur committees have accomplished outstanding results in clearing many interference cases. Upon investigation, a great number of cases at tributed to amateur operation have been found to be due to other causes. In a majority of cases where the interference was due to an amateur station, the inherent sensitivity of TV receivers to frequencies outside the TV channels has been the fanIt. Usually, simple filtering and shielding applied to the TV receiver has eliminated the interfer e.nce. In most cases where the radiation of spurious and harmonic emissions by an amatenr transmitter in the TV channels has caused interference, the amateurs have been able to satisfactorily eliminate Buch interference. More widespread international communication was made possible for American amateurs during the past year by the fact that the Neth- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 93 erlands Antilles, which formerly prohibited amateur radio stations, revived amateur operation and notified interested administrations that the exchange, internationally, of amateur communications be tween its amateurs and those in foreign countries is no longer prohib ited. Also, the exchange of third party amateur communications with persons residing in the Republic of Cuba was approved in a for mal agreement concluded between the United States and that country. Radio amateurs, traditionally, have contributed generously of their time and equipment in any emergency or disaster, and it appears that the contributions made by them in this respect may have been greater in the last fiscal year than in any previous year. Most notable was the work done by amateurs following tornadoes in the States of Arkansas, Tennessee, and Kentucky during the period March 21 to 23, 1952. In Arkansas, which was hardest hit, the towns of Dierks, England, Georgetown, Searcy, and Bald Knob were badly damaged and the town of Judsonia was completely swept away by the storm. Wire lines were down or inoperative and radio amateurs worked heroically for several days and nights furnishing communications in the stricken urea. Their work consisted of handling messages on behalf of the American Red Cross, United States Post Office, National Guard, Weather Bureau, Salvation Army, the Governor, and many individ uals. Itis reported that town officials set up a routine priority system for the handling of these amateur messages and persons wishing to send communications were required to file them at desks set up for that purpose. Medical and Red Cross communications received priority. In all, several hundred amateurs participated in this emergency, both in the disaster area itself and in supporting roles in adjacent areas. On November 25,1951, six mobile amateur radio stations of the Bir mingham, Ala., Amateur Radio Club assisted at the wreck of two crack passenger trains on the Southern Railroad near Woodstock, Ala. Other stations of the Alabama Emergency Net acted as control and contact points for the purpose of arranging hospital aceommodations, notifying relatives of victims of the crash, and handling inquiries about persons on the train. Amateur radio is said to have been the only communication out of Pierre, S. Dak., during a sleet and snow storm which completely iso lated that city and surrounding area during the period December 6 to 9, 1951. Local amateurs handled train information, dispatched telephone crews, called doctors, relayed weather reports between Civil Aeronautics stations, sent news dispatches, and relayed many per sonal inquiries and messages. The value of amateur radio to physically handicappe.d persons can not be overestimated. The Commission receives many reports of its therapeutical and morale-building influence on the. lame and infirm. 94 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Blind persons find amateur radio a satisfying diversion, and the Com mission has licensed a considerable number of such amateurs. Ama teurs confined to beds or wheel chairs are able to converse with other amateurs all over the world, handle messages for third parties, and even'participate in amateur civil-defense activities, 6. DISASTER COMMUNICATIONS SERVICE The Disaster Communications Service is a relatively new radio service, still in the developmental stage. This service is designed to provide essential communications in connection with disasters or other incidents which involve loss of normally available communication facilities or which require temporary establishment of communica tion facilities in addition to those normally available, The frequency band allocated to this service, 1750 to 1800 kilocycles, was set aside for disaster communications pursuant to a proposal made in the Com mission's Report of Proposed Frequency Allocations Below 25,000 kilocycles of May 21, 1945, although the service was not actually estab lished until March 21, 1951. Any person eligible, under the provisions of the Communications Act, to hold a radio station license is eligible for a license in the Dis aster Communicatious Service, provided it is shown that the station win constitute an element of a bona fide communications network or ganized, or to be organized, and operated in accordance with a locally or regionally coordinated disaster communications plan. Stations of the United States Government may also operate in this service if authorized to do so by their controlling ageneies. When there is no impending or aetual disaster, stations in this service may eommunicate only with respeet to drills and practice sessions and conduct necessary equipment tests. When there is an emergency or disaster they may be used for all communication nec essary or essential to relief work, including the transmission of com munications concerning personal matters in the case of individuals directly affected by the disaster. Emphasis during the past year has been on civil defense matters, and, for the most part, applications submitted and disaster communi cations plans filed related to use of the stations for civil defense pur poses. On June 30, 1952, 71 Disaster Communications station licenses were outstanding. These licenses covered 123 portable and 212 mo bile transmitters. These were held by only 15 licensees of which one, the Civil Defense Council of Winnebago County, IlL, had 32 different stations throughout the county. The State of Connecticut holds licenses for 12 separate statious operated at strategic locations within that State. About a dozen applications for licenses in this service llEPORT OF THE FEDERAL COMiv!Ul'.'1CATIONS COMMISSION 95 were returned without action, chiefly because the communications plans submitted were incomplete or inappropriate. Several amendments of the Disaster Communications Service rules were adopted during the year. For the most part, these amendments were made necessary by the Commission's action in Docket 9233 wherein provision was made for establishment of a new Radiolocation Service which, together with certain other frequencies specified in the Commi~sion'sorder in that proceeding, would be permitted to use the frequencies allocated to Disaster Communications Service upon a time sharing basis under which stations in the Radiolocation Service would have priority during daytime hours and Disaster Communications stations would have priority during nighttime. Operation of either service on these frequencies at times other than those specified would have to be by special arrangement among the licensees, except that stations in the Disaster Communications Service have priority on any of these frequencie,s when needed for an actual or imminent disaster. The new rules require that liaison be maintained among licensees of these two classes of stations in order to insure orderly use of the fre quencies to be shared. 7. INDUSTRIAL RADIO SERVICES As the result of a hearing held in June 1951, a new radio service the Industrial Radiolocation Service-was added to the Industrial Rarlio group effective February 1, 1952. This brings ·the total nnmber of radio services in this group to eight; namely, the Power, Petroleum, Forest Products, Motion Picture, Relay Press, Special Industrial, Low-Power Industrial, aud Industrial Radiolocation Services. In these services, radio facilities arc made available to various industrial enterprises which for safety purposes or other necessity, require radio communication in order to function efficiently. The number of pcrsons licensed in this group continued to grow steadily throughout the year and the problem of administering; an expanding service without a corresponding increase in Commission personnel is becoming serious. As in the past, industry advisory com mittees functioning in the power, petroleum, and forest products groups have continued to render substantial aid to the Commission in the matter of frequeney assigumcnts by supplying applicants with information relative to selection of frequencies. One important rule amendment, effective September 24, 1951, pro vided for a new class of station designed to receive communications from one mobile station and automatically retransmit them to other mobile stations. Termed a "mobile relay station," it is useg in radio systems whieh require mobile-to-mobile communications over extended 96 REPORT OF THE FE'DERAL COMMUNICATIONS COMMISSION distances. As the result of a hearing held May 24, 1952, the Commis sion has determined that persons who establish eligibility for mobile relay stations should be permitted to use their vehicular frequency for control stations to actuate the relay from fixed points. However, it was decided that the basis for mobile relay station eligibility, as estab lished September 24,1951, should not be extended to include situations where the relay would be used solely for extending the range from a fixed point to mobile units. A major problem of increasing importance as these services' expand is that of providing sufficient fl'equency space in an already crowded spectrum. One of the means by which this congestion may be relieved is the possibility of "channel-splitting," which the Commission is cur rently considering. By increasing the number of frequency channels in this manner interference would be aIIeviated. Some of the con gestion may also be relieved by developments in the 450-megacyc1e band in which operations are expected to increase as equipment be comes available. Of increasing importance is the group of frequencies above 890 megacycles more commonly known as the microwave portion of the spectrum available for communication between fixed points. All op erations on these frequencies are on a developmental basis at this time; however, the Commission is making preparations for permanent rules to govern the use of these frequencies. In this connection, the· pending theater·television hearing which involves a request for a por tion of the industrial microwave spectrum for a nation-wide competi tive theater television service is of interest. POWER RADIO SERVICE Established to pl:ovide communication facilities for perSOllB engaged in generating, transmitting, collecting, purifying, storing, or distribut ing by means of wire or pipeline, electrical energy, or natural gas, water, or steam for use by the public, the Power Radio Service has continued to grow at a rapid rate. As in past years, the principal use of radio in this service is by utility companies in connection with the restoration of service after interruption due to fire, storm, flood, accident, or other mishap, and for routine maintenance activities necessary in the efficient operation of the industry. Radio systems for communication between fixed points have been increasing in number in this service. These are used primarily for multichannel radio circuits for central control of load dispatching. In the past these systems have been operated in the 72--76 megacycle band in localities where interference would not be caused to television reception. An expanding TV service, however, is making it more REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 97 difficult to find areas where interference-free operations can be had. This has led to increasing interest in the use of frequencies above ~oomegacycles for these purposes. Fixed point-to-point systems in this service are often integrated with mobile service systems and are used to control mobile operations. PETROLEUM RADIO SERVICE Established to provide communication facilities for persons engaged in locating, producing, collecting, refining, or transporting by means of pipelines, petroleum or petroleum products including naturalgas, the Petroleum Radio Service has expanded at a phenomenal rate. Petroleum is usually found in remote areas, far removed from communication facilities where the installation of wire lines would be impractical and economically infeasible. In such areas radio is necessary to maintain communications between well site, field head quarters, and mobile units during drilling operations. This provides close supervision of an extremely hazardous and costly operation. Other uses are in connection with studies of subsurface structures in geophysical exploration and mobile radio systems to maintain or restore pipeline service. Iu the production and pipeline phases, the industry is relying more heavily than ever before upon their radio facilities whicb are used to control the flow in pipelines and for pipeline maintenance. For this use the industry is looking more and more to frequencies in the microwave regions which are available for point-to-point use. Several microwave systems, each more than 1,000 miles in length are in opera tion with others under construction or being planned. Generally, such fixed point-to-point systems are of the multichannel type and provide voice, as well as signaling and telemetering circuits. Many of these systems are integrated with mobile service systems and place load dispatching and maintenance control in centralized locations for the most efficient operation. FOREST PRODUCTS RADIO SERVICE Established to provide communication facilities for those persons engaged in actual woods operations such as tree logging, tree farming, or related woods operation, the Forest Products Radio Service has experienced a slow but steady growth from the two experimental systems operating in 1947, to the more than 25,000 transmitters presently authorized in a total of 123 forestry operations. The great est usage of this service continues to be located in the Pacific North west where approximately 77 percent of the total radio operations are located; approximately 18 percent being located in the southern United States. 98 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Radio is used in connection with fire detection, prevention and sup pression, and to promote safer, more efficient and more economical logging operations. MOTION PICTURE RADIO SERVICE Established to provide communication facilities for persons engaged in the production or filming of motion pictures intended for public showing, use of the Motion Picture Radio Service has not increased materially the past year. Radio is used to coordinate and expedite the shipment of supplies to remote locations, and to coordinate the filming of action scenes taking place on outdoor sets. RELAY PRESS RADIO SERVICE Established to provide communication facilities forpCl'~onsPIl gaged in the publication of a newspaper or in the operation of an established press association, the Relay Press Radio Service is used principally by the metropolitan dailies. The chief use of this service is in the dispatching of reporters and photographers to the scene of a newsworthy event. At least one large newspaper is considering the in stallation of facsimile and teletype equipment to facilitate tlll' filing of copy and photographs from the Scelle of a news event. SPECIAL INDUSTRIAL RADIO SERVICE Established to provide communication facilities for persons engaged in an industrial activity primarily devoted to production, construction, fabrication, manufacturing, or similar processes, the Special Indus trial Radio Service is available to a great variety of users. Since the demand for facilities, ct>pecially in urban areas, has Deen so grcat that there are not enough frequencies to provide service for everyone desiring it, an applicant nlUst sho,,, that: (1) the activity for which radio is desired is being conducted in a remote and sparsely settled region; or (2) the operation is a construction project of a public charactcr; or (3) the use of raclio is required within the yard area of a single plant. Upon showing that operation outside the yard arca is required to maintain plant security in the interest of the na tional defeuse, operation may be authorized outside the physical limits of a phmt. Typical operations include directing the movement of rail cars and trucks within steel mill yards and within large manufactnring plants; large ranching and farming operations; fruit and vegetable process ing plants; mining operations, including pospecting; and contractors engaged in public const.ruct.ion, such as highways, bridges, tunnels, and dredging operations. LO\V·POWER INDUSTRIAL RADIO S.ERVICE Established to provide communication facilitics for any person engaged in a commereial enterprise or industrial activity, the Low- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 99 Power Industrial Radio Service is available to all business organiza tions whenever they have a need for short-distance mobile-to-mobile communication to promote more efficient and safe conduct of their operations. This service provides for the operation of any desired number of units, which are limited to very low power with restrictions on the design of the antenna in order to restrict the range to short distances and thereby allow a large number of transmitters to operate on the same frequencies. All stations authorized in this service are classified as mobile stations. INDUSTRIAL RADIOLOCATION SERVICE Designecl to be used in connectiou with geological or geophysical activities, the new Industrial Radiolocation Service is available to persons engaged in a commercial or industrial enterprise who have a substantial need in cOllnection therewith to establish a position, dis tance, or direction by means of radiolocation devices for purposes other than navigation. Since, at this time, there does not appear to be any single system of radiolocation which is satisfactory in all re spects, all operation is authorized on a developmental basis to encour age the development of radiolocation techniques. As a result of a hearing held June 4, 1951, the frequency band 1750-1800 kilocycles was made available on a shared basis with the Disaster Communications Service for use within 150 miles of the shoreline of the Gulf of Mexico for raclio-Iocation purposes in con nection with the offshore exploration for petroleum only. Since radio-location activities will be predominantly a daytime operation and drills in the Disaster Communication Service will take place chiefly at night, it is anticipated that interference can be controlled by a time-sharing arrangement. There are two radio-location systems presently authorized in the Gulf of Mexico area and applications for eight additional systems have been received. In addition to the frequency band 1750-1800 kilocycles, several bands of frequencies in the VHF and SHF portions of the spectrum are also available for radio-location purposes. 8. LAND TRANSPORTATION RADIO SERVICES The Land Transportation Radio Services provide radio communi cation facilities for the Nation's land transportation carriers. In cluded in this group are the Railroad, V rban Transit, Taxicab, Intercity Bus, Highway Truck, and Automobile Emergency Radio Services. The year marked a continuation of the expansion in radio facilities authorized for these transportation services. The rate of expansion was not, however, as great as that which followed the finalization of the Land Transportation Radio Service Rules in 1949. 100 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The major problem in these services, as they continue to expand, is that of providing sufficient frequency space in an already crowded spectrum. All frequencies available are shared with other users and .in many of the more crowded urban areas, where the greatest use of these frequencies occurs, several licensees may share a single channel. It is anticipated that at least a temporary relief of this congestion will Occur with the opening up of the 450-megacycle mobile band. As equipment for operation in this band becomes more readily available and as the results of operations now in progress are made known, it is expected that a considerable numher of new users will look to this band for their radio facilities. As in other services, the Commission is also considering "channel-splitting" as a means of increasing the number of radio channels without adding additional spectrum space. RAILROAD RADIO SERVICE The Railroad Radio Service provides communication facilities for persons regularly engaged in offering to the public a passenger or freight transportation service by railroad common carrier. The use of radio by the Nation's railroads has continued to progress on a sound, conservative, carefully planned basis. Radio is continuing to provide these carriers with an economical and dependable means of end-to-end train, of train-to-wayside station, and wayside-to-wayside station communication. It has improved the efficiency and safety of yard and terminal operations under conditions of unfavorable weather, and has been of substantial aid in preventing accidents and reducing repair time. The use of radio in railroad communication continues to be centered on main-line operations. This has resulted in increased interest being shown in the portion of the spectrum above 890 megacycles known as the microwave region where several frequency bands are available for fixed point-to-point systems. Microwave radio links are begin ning to come into use by the railroads to replace sections of their wire line communications systems which are particularly susceptible to storm damage, as well as to provide communications in areas where the installation of wire lines is impractical. URBAN TRANSIT RADIO SERVICE The Urban Transit Radio Service provides communication facili ties for persons regularly engaged in furnishing scheduled common carrier public passenger land transportation service along fixed routes primarily within urban or suburban communities. The use of radio facilities provides efficient dispatching of passenger-carrying vehicles during rush hours and other critical traffic periods; aids in dispatch ing supervisory cars and repair trucks to reroute lines during fires, traffic jams, and other emergencies. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 101 TAXICAB RADIO SERVICE The Taxicab Radio Service provides communication facilities for persons regularly engaged in furnishing to the public for hire a non scheduled passenger land transportation service. Since the Taxicab Radio Serviee was established on a regular basis in 1949, it has grown at a phenomenal rate and in the larger cities most of the operating frequencies are shared by two or more companies. For this reason, the coordinated assigument of frequencies is of pri mary importance if all users are to obtain maximum benefits from the use of radio. As in years past, the Commission has actively en couraged cooperation and coordination of frequency assiguments among the various taxicab operators and their frequency coordinating committees. Of considerable importance is the increased interest shown in the 10 channels available in the region around 452 megacycles. With the availability of equipment to operate on these frequencies, several neW developmental operations have been authorized in four large cities. Use of these frequencies appears to offer this service a chance to con tinue its growth. INTERCITY BUS RADIO SERVICE The Intercity Bus Radio ServiCB provides communication facilities for persons regularly offering to the public a scheduled common car rier passenger service over public highways and primarily between established city terminals. Municipal bus and street-cal' companies generally operate in the Urban Transit Radio Service. Radio communication systems of the type required by the larger bus operators necessitate detailed coordinated planning and, due to the extensive nature of the operations and the extensive areas of cover age, are necessarily quite costly. For this reason, bus operators are proceeding slowly in the installation of radio systems and the service has experienced a rather slow growth. HIGHWAY TRUCK RADIO SERVICE The Highway Truck Radio Service communication facilities arc for persons regularly engaged in the operation of trucks on a route basis outside of metropolitan areas. This service may not be used by persons operating truck routes or offering a distribution service within " single metropolitan area. The chief purpose of this service is to pro vide for trucks operating in more remote areas where other means of communication are not available. AUTOMOBILE EMERGENCY RADIO SERVICE The Automobile Emergency Radio Service provides communication facilities for asSociations of owners of private antomobiles which give emergency road service and for private garages operating emergency 102 REPORT OF THE FE'DERAL COMMUNICATIONS COMMISSION road service vehicles. This service is intended to be used in dispatch ing cars and trucks to assist stalled or disabled automobiles. The use of radio has proven effective in controlling emergency vehicles which keep the masses of automobiles moving on crowded highways and COll tribute toward public safety. The greatest use of this service occurs in large cities where the single 35 megacycle frequency is heavily loaded. Two additional frequencies are available in the region around 453 megacycles; however, the limited availability of suitable equip ment has prevented extensive use of these frequencies. It is antici pated that widespread use will be made of these higher frequencies as equipment becomes available. 9. CITIZENS RADIO SERVICE Established to provide a radiocommunication sen'ice in t.he fre quency band 460-470 megacycles for the individual citizen ,,-ho is not eligible for any of the other established radio scrvices, the Citizens Radio Service is available to any citizen of the United States who is at least 18 years of age. One important rule amendment during the year added a new fre quency in the 27 megacycle region to this service and provides for a new class of station which may be used to control objects such as model planes, model boats, and garage doors by radio. Another amendment clarified the rules with respect to eligibility to provide for duly authorized state and local civil defense activities in this service. As in past years, the absence of readily aYaibble low-cost radio telephone equipment designed to operate in the 460-470 megacycle region has been the chief handicap to the expansion of this service, although the number of authorizations increased 150 percent in the past year. Use of the new 27 megacycle frequeney is increasing at a rapid rate, and it is anticipated that operation in the 460-470 megaeycle band will be extended in the near future since operating equipment now appears to be commercially available. 10. ENFORCEMENT UNIT This was the second year of operation of a separate Enforcement Unit in which is centralized all enforcement and compliance activ ities of the Safety and Special Radio Services Bureau. In addition to this activity, the unit is assigned another important function, which is not indicated by its title, namely, that of legal adviser to the Chief of the Bureau. It become apparent during the year that the time of the staff of this unit must be about equally divided be tween enforcement matters and the special legal, policy, and legis lative problems whieh require attention in the office of the Chief of the Bureau. In this connection, the attorneys of the unit are also REPORT OF TIlE FEDERAL COM1I.IVNICATIONS COMj\USSION 103 available for consultation with attorneys of theBut:eau~sdivisions and for legal advice to the chiefs of these divisions on important problems arising in their offices. During fiscal 1951, the processing of routine violation reports referred to the unit had been standardized to a large degree, and procedures were adopted appropriate to the handling of a large number of recurring cases. In the past year, however, it was found necessary to put in effect additional standards for screening violation matteI'S before they are referred to this unit. The very small staff available for actual enforcement proceedings, plus the volume of irregularities resulting from a rapid increase in the number of out standing licenses, indicated that the public interest would best be served by a more selective approach and the application of more severe penalty measures in individual cases. An important segment of such enforcement activities concerned the imposition of monetary forfeitures under title III, part II, of lhe Communications Act. Vessels and their masters who violate the compulsory radio provisions of title III, part II, by reason of the navigation of the ship in the open sea contrary to these provisions incur forfeiture liabilities prescribed by the act. The Commission is empowered to remit or mitigate the forfeitures so incurred. In the course of the year, notifications of forfeiture liability were made against 20 ships and theirmaster~.This figure exceeded the total number of forfeiture cases pre\'iously handled in the years since the forfeiture provision was enacted into the law in 1937. Ten of these cases were disposed of and closed during the year and 10 are still pending. A total of $9,975 was collected. There are indications that the prompt application of these penalties, even though many were mitigated for nominal sums, has been effective in improving the general level of compliance. The changing economic and technical factors affecting the variety of safety and special radio services necessitates a constant scmtiny and reappraisal of the policies and regulations under which these services are adulinistered. The unit was required to devote acon~ siderable portion of its time during the year to a study of proposed changes in policy or regulation with the purpose of advising the Chief of the Bureau as to their legal adequacy and their effect in regard to consistency of administration within the Bureau and throughout the Commission. 11. STATISTICS Number of Stations in Safety and Special Radio Services Stations in the Safety and Special Radio Services (exclusive of experimental, which are treated in a separate chapter) exceeded 212,000 at the close of the fiscal year. This represents a net increase 230960-52-8 104 REPORT OF THE FE'DERAL COMMUNICATIONS COMMISSION of almost 35,000 during the year, as compared to a net increase of about 23,000 during fiscal 1951. The number of authorized stations III the various services are showu in the following table: 34,061 32,603 0,458) == 29, 544 35, 500 6,956 == 810 332 342 147 357 26 7.008 764 2,070 555 670 76 6,198 432 1,728 408 313 50 26,1381 1,625 II6 344 517 June 30, June 30, Increase HI51 1952 or (de- crease) --- ---- 2,173 1,921 (2li2) 28,113 27,678 (435) '46 364 (182) 1,310 1,183 (127) 1,483 7Il8 (686) 56 " 3 155 166 11 86 100 14 IS '" 2 88 105 17 33 20ll 176 ~------- ---- 32, 229 5, 548 1,958 333 107 (9) 379 35 568 51 22 22 64 64 261 173 (88) ------------ TotaL_ Marine Services: S~ip. _ S'Iipradar__ CrlasL. , _ Alaskan c'lastaL._ Alaska'1fl:u~dpublle ._ Maritime radi)loca.tion 3__ Maritime fixed 3 _ Other . . _ Aeronautical Services: Carder aircraft '_ _ _ . __ Private aircraft 1.___ _ _ • _. _ Publicservl.ce aircraft 1 _ Aeronautical land and fixed~.. _ Civil air patrol 2 ••• _ _ Airdrome c'"lotrol. _ Aeronautical nil. vlgatlonal Flight test _. _ Flying schooL _. . _ Aeronautical utility mobile _ Aeronautical advisory _ Class of station Total. • _ Publle Safety Services: p)Uoo_. _ Fire. . ._______ __. _ F'lrestry-Collservatioll. _ Highway maintenance. . . _ Special emergency _ State guard _ 9,129 11,143 2,014 == - TotaL ._. _ Land 'rransportation ServIces: Railroad _ Urban translt _ Intercity bus . _ Taxicab _ Highway truck_ _ . _ AlIt'lm'lblle emcrgeney_ _ . __ Cltlzens _ 604 III 31 3,152 270 85 560 757 IIO 34 3,639 341 Wi 1,401 153 (I) 3 487 71 61 841 Total_ Industrial Scrvices: Power _ Petroleum ___ _ _ Forest products .__________________________ _ . . Special industriaL _ _ Low power IndustriaL _ Relay pre.ss_ _ . _ Moti'ln picture .____________ _ _ AgrlcultufC ._____ _ _ Radlolocatlon land _ TotaL _ Amateur and Disaster Services: Amateur_. _ Disaster communlcations _ Total_ Grand totaL. _ 4,813 6,428 1,615 == 5,016 fi,005 1,049 2,416 3,787 1,371 453 685 232 1,451 2,760 1,309 150 259 lOll 35 51 16 21 23 2 9 9 0 0 41 41 ------------ 9,551 13,680 4,129 ----= 90,585 113,092 22,507 2 71 69 ------------ 90,587 113,163 22,576 ---- = ---- 177,685 212,517 34,832 I 'rho apparent decrease ill the number of aircraft stationsr('sultl~dfrom the deletion of approximately 9,141 explrcd licenses from the tl.les. There were actually 7,970 new aircraft Ilcenses Issued during fiscal 1952. 21'he apparent decrease in the number o(aeronautical and CIvil Air Pat.rol stations resulted (rom reclassl fytnll,: certain aeronautical as CAP stations, and crmtinuillg the C071S'llidation of CAP-statton llcenses into single-system licenses for an entire CAP wing. There were actually 332 new CAP-system licenses issued during t1seaI1952. 3These claSses were grouped with "other" in the seventeenth annual report. NOTE.-A station Is defined as a separate lIcenge or construction-pC!rmlt authorization. For example. 65 mobile units operating on 1 Jlcense are counted as 1 station. REPORT OF THE FEDERAL COMMUNICATIONS COMWSSION 105 Applications Received in Safety and Special Radio Services More than 141,000 applications for stations in the Safety and Special Radio Services were received during 1952. This represents an increase of more than 34,000 applications compared with the pre vious year, an increase of almost 32 percent. The number of appli cations received in each service is shown in the following table: Class of station Received Received Increase 1951 11152 or (de crease) ----------------1--------- 18,757 1,196 177 50' 647 Aeronautical Services: Aircraft 1__ • • . __ Ground _ Marine Services: 8hlp~_______ . . _ Ship radar . Coast3_____________ --------------- Alaskan coastaIS .. _ Alaskan fixed publlc s _ .Maritlme radtolocatton4._~_ Maritime flxcdl_____ _ _ Other_____ _ _ TotaL __ Public Safety ServIces: PlUOO~,___________ • Fire . . . _ FOn'~try-Conservatlon_ Highway malntenanoo___ _ , _ Special emergency_ _ _ _ State guard____ _ _ TotaL _ Land Transportation ServIces; Rallroad:__ _ . _ Urban TransiL _ IntercIty bus_ _ _ Taxicab. __ . _ Hlgbwaytruck _ Automobile emergency _ Citizens. _. __ _ _ 19,602 18,252 (1,350) 2,830 3,761 931 ---------- 22,432 22,013 (419) === 16,893 0,864) 1,084 (H2) H3 (64) 265 (248) 318 (329) '" '" 161 161 307 165 (142) ---------- 21,687 19,015 (2, (72) === 6,104 6,823 719 801 881 80 1,337 1,648 211 555 571 16 447 910 463 00 lID 50 --------- 9,334 10,873 1,539 ~~~ 550 870 320 78 105 27 11 70 59 3,602 4,414 812 416 591 170 125 220 95 jg2 24' 54 4, 974 6, iiW 1,542 === TotaL _ Industrial Services: Power _ Petroleum _ Forf'~tproducts .. __ _ _ Speclallndustrial__ _ _ Low power industrlaL _ Relay press _ Motion plcture _ Agrlculture _ Radiolocatlon lan97 12 37 " 11 38 90 98 30 70 312 291 88 75 110 121 24 12 109 103 18 16 750 151 15 186 868 808 186 TomL _ All other New stations _ Change in facilities Renewals. _. _ License . _ Transfers. __ . _ :Miscel1:lneous_. _ TV Ncwstntions _ Change in facilities_ Renewals _ License.___ _ ._ Transfers _ Miscellaneous _ 415 m 36 717 :In 1011 57 i3 4 136 toO 40 15 7 1.1 7 7 18 13 12 3 35 3:2 6 ~-----:r741(,~13I 252 855 =--;;\=-;J= ':;~~ ~!~~'1g~~I~~ 3~Il~gI~?6~ :::~-t~~~l~-~~~_~_:_~~_:_~~_:_~~_:_:·_.·_·_.__~~~~-~__1'_:_:---,:._:,~~1~~:~~7'!~~~ I Includes noncommercial educational I<'1.f stations. BROADCAST AUTHORIZATION DELETIONS The number of broadcast authorizations deletccl in fiscal 1D52 was Jess than half the number for the previous fiscal year. Of the 72 dele lions in 1952, 35 were AM, 36 FM, and 1 TV. This contrasts with 161 deletions---70 AM and 91 FM-the year previous. Monthly figures for 1D52 were: Montb 1951 July _ Au~ust.__ Septemher__ ._ _ _ . _ October. . November_. _ December.__ • . -------.- 1952 January •_. . . _ February . _ March _ ApriL •__ . _ May_. -___ --- -- --- -.--- June _ Year's totaL , , __ AM FM "'V 2\fonthly total 2 5 0 7 3 3 1 7 1 4 0 5 1 2 0 3 1 7 U 8 3 0 0 3 5 3 0 8 6 0 0 6 3 3 0 6 2 5 0 7 6 2 U 8 2 2 0, 4 35 36 1 I 72 REPORT OF THE FEDERALCOM~1UNICATIONSCOMMISSION 123 BROADCAST RECEIVING SETS Sets for the exclusive use of broadcast receptiou are not licensed or otherwise regulated by the Commission. At the close of the fiscal year industry estimated that more than 105,000,000 broadcast receivers were in use. Of this number, more than 18,000,000 were capable of TV reception and approximately 9,000,000 could receive FM broad cast. Many sets offer combination reception. The 1950 census re ported 40,970,000 homes with radio sets, or 95.6 percent of all dwell ings. Industry further estimates that 27,500,000 passenger cars are equipped with broadcast receivers. BROADCAST INDUSTRY FINANCIAL DATA In the calendar year 1951, the grand total revenues of the broad casting industry (radio and television) reached nearly $700 million, the highest on record. Total revenues, which comprise revenues derived from the sale of time, talent, and program materials to adver tisers, were reported at $686.1 million. Radio revenues increased from $444.5 million in 1950 to $450.4 million in 1951, while aggregate TV revenues of $235.7 million in 1951 were more than double the $105.9 million for 1950. Broadcasting profits of $99.1 million in 1951 were two-thirds greater than those of 1950. The industry reported a profit from television broadcast operations for the first time in 1951, earning $41.6 million compared to a loss of $9.2 million in 1950. Earnings from radio broadcast operations dropped by 16 percent from $68.2 million in 1950 to $57.5 million in 1951. The decrease in earnings from radio operations was the result of a reported drop of almost 50 percent in the earnings of the networks coupled with a slight decline of about 4 percent in the earnings of individual radio stations. All profit fig ures are before payment of Federal income tax. The following tables show the comparative calendar year 1950-51 radio and television financial data for the radio and television broad cast industries: All networks and stations,t 1950-51 Item Total broadcast revenues"_ _ _ Radio .. __ . . . _ Television . ._ Total broadcast expensos _ Hndio _ Television _ Broadcast ineome (before Federal income tax)_ Hadio 2 _ ------------- Television 2 . __ 1950 1951 Increase or (decrease) ~"Iillion8}uiUio-ns Percent $550.4 $686.1 24.7 444.5 450.4 1.3 105.9 2.35. 7 122.6 491.4 587.0 19.5 376.3 392.9 ,., 115.1 194.1 68.6 59.0 99.1 68.0 68.2 57. .5 (15.7) (9.2)! 41. 6 Footnotes on page 124. 124 REPORT OF THE FE'DEoRAL COMMUNICATIONS COMMISSION Nation-wide networkIJ otllJj,l 1950-51 [Including owned and operated stations! Item Revenues: Radio . . • •__ Television . . ._. Total Expenses; Radio_ _ .. • _ Television__ • __ __ _ __. . . .... ".... _ TotaL. . _. _. . . .._ _ ". . _ Income (before Federal income tax): Radio 7. _ Television 1 _ Total... . .... . _.._.. •~_ 1950 UI51 Millions MUliom $106.0 $99.0 ,'-' 128. 4 161. 5 227.4 87.3 89.5 65.5 117.4 162.8 206.' 18.7 ,. , (l0.0) 11.0 8. 7 I 20.' ( ) Denotps loss. I Radio includes AM and FM broadcasting. 2 Networks eng"aging in joint radio-TV operations have indicated that certain overhead expenses not readily allocable between radio and television, have been charged to radio. To the extent that this occurred, the above figures may understate radio income and overstate television income. NOTE.-The 4 Nation-wide radio networks (ABC, CBS, MRS, and NBC) owned and operated a total oflR stations in 1950 and 1951 and the 4 TV networks (ABC, CBS, DuMont, and NBC) owned and operated a total of 14 stations in 1950 and 15 stations in 1951. FM broadcast revenue8, inoome and investment, 1950-51 1950 1951 Item ------------1-------- F11J:broadcast revenues FM stations operated by: AM licensees: Reporting no FM revenues 1_ Reporting FM rvenues__ Non-AM licensees ._ Total FM stations. _ .MiU/ons 420 1133 $1. 4 86 1. 4. 2.8 F~'\.Ibroadcast expenses 3.0 (') (1. 8) (') 66 66'.0 (') (2.6) (') 86 86 FM stations operated by: Non-AM Itcensees . "_ Industry totaL • _ ===== Total FM broadctUlt income (before Federal income tax) FM stations operated by: Non-AM licensees._ Industry totaL_ ( ) Denotes loss. I In view of the difficUlty in a joint AM-FM operation in allocating FM operation expense separately from AM station operation expense, licensees ofsuch stations were not required to report FM station expense separately. As a result, FM Industry totals for expense and income arellot available. AM-FM licensees however, were reQuested to report separat('}y the revenues, if any. attributable to FM station operation if such data were readily available. In only a few instances did AM-FM licensees state they were unable to segregate tbe FM revenues. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 125 TV broadoast revenues, inoome and investment, 1951 (In thousands! Item Revenues from network time sales _ Revellues from sale 01 time to national and regionllJ advertisers and SpOIlSOUL _. • . •. ._._ Revenues from sale of time to local advertisers and sponsors__ Total revenues [rom time sales _ Commissions paid to representatives, etc .. _ Incidental broadcast revenues: Revenues from sale of talent, etc~_ Furnishing material or service __ Other incidental revenues._ Total broadcast revenues. __ 1'otal broadcast expenses_ Total broadcast income .. .._. _ Investment in tangible broadcast Droperty: Original cost- . _ Depreciation to date_. Depreciated oost _ 4 networks and their 93 other Industry 15 owned and operated stations total stations ~---------- $72,871 $24,687 $97,358 17,513 42,220 59,733 11,638 39,666 51,304 102, D22 ID6, 573 208,595 18,881 14.457 J3,338 27,543 5,473 33,016 8,368 6,624 14,992 9,330 3,OSU 12,1-19 1'28,38? 107,302 235,684 117,401 76,685 194,086 10,981 30,617 41,598 37,902 55,080 92,982 Il,094 18,7J8 29,832 26,808 36,342 63,150 Radio 1 brou-dcast revenues, income and i'nvcstment, 1950-51 IIncome before Federal incoille tax, in thousands] 4 Nation-wide 3 regional net- networks and All other their lR stu· works and their stations I Industry total Item \ions 7 stations 2 1950 1951 1950 1951 1950 1951 1950 1951 ~-------- Revenues from network time sales___ $83,955 $75,593 $2,099 $2,893 $45,476 $43,54.8 $131,530 $122,034 Revenues from sale of time to nu- tlonaJ lind regional Ildv(lrtirers and sponsors___________________________ 17,598 15,273 1,383 1,115 99,844 103,170 118,824 119,569 Revenues from sale of time to 1000.1 advertisers and. sponsorS__ . ________ 6,122 6,205 1, "" 1,4M 195,529 206,910 203,211 214,519 ------ --- --- --- Total revenues from time sales_ 107,675 97,071 5,042 5,412 340,849 353,628 453,565 466,112 - = -~- = --- = = = Commissions paid to representa- tives, etc. ______________ . _____ ---- 22,3~20,338 I,02D 97' 29,oti2 3D, 244 52,476 51,681 Incidental broadcast revenues: Revenues from sale of talent, etc _________ , .._______ . _____ "__ 13,072 13,922 268 363 11,862 12,604 25, "" 26,8139 Furnishing material or service___ 4,039 4,4fJ5 2 16 6,851 6,5a4 9,893 H,045 Other incidental revenues._ --.- 3, &45 3,895 149 170 3,079 2,675 6,873 6,741 Total broadcast revenucs_______ ---- 106,037 99,045 4,441 4,983 332,579 345,197 443,058 449,226 Total broadcast expenses ------ ---- 87,375 89,517 4,120 4,417 280,820 296,041 372,'315 389,976 Total broadcastincome~________ . __ 18,662 9,528 321 566 51,759 49,156 10;743 59,251 Investment in tangible broadcast property: Original cost___________________ ._ 28,431 29,533 1,663 1,097 1.214,321 1224,100 244,415 254,731 Depreciation todate~____________ 16,062 16,446 1,201 984 76,119 87,504 93,382 104,934 Depreciated cosL___________ -'____ 12,369 13,087 462 113 138,202 136,596 151,033 149,797 1 Excludes independently operated FM stations, 86 in 1950 and 66 in 1951. 2 Regional networks operated 8st~tionsin 1950. 3 Includes 2,117 stations in 1950 and 2,175 stations in 1951. j Data available from 2,113 stations in 1%0 and 2,161 stations in 1951. NOTE.-Figures may not add to totals due to rounding. [ Page 126 in the original document is intentionally blank ] CHAPTER VI-FIELD ENGINEERING AND MONITORING 1. GENERAL 2. MONITORING 3. DIRECTION FINDING 4. MONITORING SURVEYS 5. ENFORCEMENT THROUGH MONITORING 6. INTERFERENCE AND GENERAL MONITORING 7. INVESTIGATIONS 8. FIELD ENGINEERING 9. COMMERCIAL RADIO OPERATORS 10. INSPECTIONS 1. GENERAL On March 2, 1952, the Commission announced the establishment of the Field Engineering and Monitoring Bureau, formed from the nu cleus of the Field Eugineering and Monitoring Division, the Commer cial Operator Branch, the Experimental and Miscellaneous Braneh and the Antenna Survey Branch which previously'operated under the Office of the Chief Engineer. The new bureau comprises four divi sions-the Field Operating Division and staff divisions for Monitor ing, Engineering, and Inspection and Examination. The chief of the bureau was further provided with an administrative assistant and an attorney adviser. The field engineers inspect radio stations of all types and serve notices for discovered discrepancies, conduct radio operator exami nations and issue operator licenses to those found qualified; monitor t he radio spectrum to assure that stations operate on their assigned frequencies with prescribed power; locate and close unauthorized transmitters; investigate complaints of interference to various radio services; obtain and correlate technical data for Commission use;fur~ nish fixes and directional information to aircraft which are lost; and provide bearings and fixes on ships in distress. The bureau addi tionally processes data concerning proposed new or modified antenna construction to insure that no hazard to air navigation will result, and administers parts 15 and 18 of the Commission's rules and regulations pertaining, respectively, to Restricted Radiation Devices and Indus trial, Scientific, and Medical Equipment. These activities are outlined in the ensuing sections of this chapter. 127 128 REPORT OF THE FEDEHAL COMMUNICATIONS COMMISSION 2. MONITORING During the fiscal year the mouitoring system operated with 19 moni toring stations consisting of 11 primary and 8 secondary stations. Sixteen of these are located in the continental United States, one in Hawaii, and two in Alaska. All stations are eqnipped with radio di rection finders. Monitoring stations continned to "police" the ether but economy makes fewer engineers available for "around the clock" service. Due to budget limitations, the Bay St. Louis, Miss., secondary sta tion was reduced to only two engineers during most of the year, and at the year's end only one engineer operated the station in practically a "caretaker" status pending its closing. 3. DIRECTION FINDING Direction finding continued to play an important part in monitor ing activities. Long-range direction finder bearings are necessary for locating illegal or clandestine transmitters and sources of radio inter ference of an otherwise unidentifiable nature, such as spurious radia tions and unmodulated carriers. The latter are usually unintentional, but constitute a serious interference problem nevertheless. Monitor ing stations obtained a total of 83,196 bearings, which was a slight increase over the previous year's total of 81,919. Direction-finder bearings were also obtained and "fixes" furnished in emergency situations involving lost or otherwise disabled ships and aircraft under the Commission's participation in the Air Se" Search and Rescue program. During the year, 138 requests were re ceived in this category compared with 168 requests received in 1951. Instances of long-range bearing service ranged from bearings taken on lost balloons, sometimes mistaken for "flying saucers" and a menace to the airlanes, to bearings taken on a sheriff's patrol car lost high in the Sierras. 4. MONITORING SURVEYS Monitoring stations engaged in numerous frequency surveys for occupancy data at the request of other agencies and other units of the Commission. The great bulk of this work related to the implementa tion plan of the Extraordinary Administrative Radio Conference (EARC),wher~by21 entire bands and 455 individual frequencies were monitored to the extent of over 9,000 kilocycles of survey cov erage. It is estimated that approximately 1,000 mand-days were de voted to this work during the year. In addition to the coverage obtained by specific monitoring surveys, much information was obtained and compiled from the bureau's active station files which are maintained on a continuous basis from mom- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 129 toring data submitted daily by monitoring stations as a product of their surveillance of the radio spectrum. Such monitoring surveys, although time consuming and exacting, are considered of such impor tance that they have been accomplished at the expense of other work. Due to the magnitude of the job of moving the frequency of hundreds of stations to conform with the Atlantic City Conference Frequency Tables, it is expected that this type of monitoring work will continue during the coming year. An example of an extensive monitoring and direction finding proj ect performed during the year at the request of a military agency was one where several thousand observations and over 60 direction finder "fixes" were furnished the agency. 5. ENFORCEMENT THROUGH MONITORING Enforcement of the Communications Act and the Commission's rules is an integral part of monitoring operations. As more and more stations are licensed and new technical regulations are added, more enforcement-type monitoring is needed. This requires a systematic checking of each type of radio service in the United States and its possession for adherence to the laws, treaties, and rules, plus notifica tion to foreign countries when infractions causing interference to domestic services are noted. Though burdened with increasing interference complaints, surveys, and other work items, the monitoring system observed a mounting number of violations. A total of 10,139 violation notices were issued, representing an increase of 1,360 over the previous year. Addition ally, monitoring watches noted hundreds of cases of potential inter ference and brought them to the attention of operating agencies, thus performing preventive type of monitoring service. For example, one of the monitoring stati6ns detected a strong rough carrier swinging through several frequencies used by aeronautical stations and obviously a source of interference. Bearings when evaluated showed the source of the signal as being in the Johnstown, Pa., area. Knowing that an industrial heater used for glue drying in a manufacturing plant at Johnstown had caused interference to the Civil Aeronautics Administration and the Coast Guard several years ago, a telephone call was placed there. In less than 5 minutes it was definitely established that this plant was the source of the current interference. The owner agreed to eliminate the excessive radiation immediately. 6. INTERFERENCE AND GENERAL MONITORING During fiscal 1952 an all-time high since the end of World War II was reached in the number of interference and general monitoring 130 REPORT OF THE FEDE'RAL COMMU:3 1947 TIAS 190L__ 1941. E. A. S. 227 _ Safety of Life at Sea Convention. with Regulations between the United States of AmE'rica and Other Powers, signed at l,ondon May 31, 1929. Amendment to Regulation XIX of Annex 1 to the Safety of Life at Sea COllvention, Dec. 31, I93/). Communications Act of 1934, as amended. Radio communications between private eXJ)l;'rimental stations and between amateur stations. Arrangement between the United States of America and the Dominion of Canada (continuing arrangement etJected by ex chan~rofnoh-s signed Oct. 2, 1928, Dec. 29, 1928, and Jan.1Z, 1929) effE'cted by exchangc of notes signed Apr. 23 and May 2 and 4, 1004. Effective May 4, 19'J.J. (Not available at the Government Printing Office.) Radio communications between amateur stations on behalfof third partie". Arral:lJ!:emcnt between the United States of America and :Peru. Effective May 23, 1934. Radio communications between amateur stations on behalf of third parties. Arrangement between the United States of America and Chile. Effected by exchan{l:e of notes signed Aug. 2 and 17, 1934. Exchange of Information concerning: issuance of radio licenses. Agreement between the United States of America and Canada. Effected by ex change of notes signed Nar. 2 and 10, Aug. 17, Sept. 8, and 20, Oct. 9. 1937. This agreement wasIaf/;~elysuperseded by the notification proced ure established in the NARBA (T. S. 777-A. T. S. 962, E. A. S. 227 and TIAS 1553) and under the Inter-American Radio Communications Convention (T. S. 938). (Not availahle at the Government Printing Office.) North American Regional Broadcasting Agreement between the United States of America, Ouba, Dominican RepubJic, Haiti, and Mexioo. Signed at Habana, Dec. 13, 1937. NOTE: See E. A. S. 227 and TrAS 1553 which supplement this agreement. (Not availa.ble at the Government Printing Office.) Inter-American Radio Communications Convention between the Unites. E. A. S.-Exeeutive Agreement Series. 'l'IAS.-Treaties and Other International Act Series. 3 Not available from Government Printing Office. Avuilable from Secretary Oeneral of ICAO, Inter nlltionlilAyiation Building, 1080l:niyer~it~'StJ'ef't, Montreal, Canada. o