. • F C C ederal ommunications • • ommlsslon C~~{r'·0/' I . 20than~1report Fiscal year ended June 30, 1954 With introductory summar, and notations throughout of subsequent important developments. UNIT.EO STATES G.O.VERNMENT PRINTING OFFICE· WASHINGTON .1955 For sal. by the Superint."denf of Documenf., U. 5. Govemment Frina.." ORI:c. Washington 15, D. C. • Price 50 cenb COMMISSIONERS Memhers of the Federal Communications Commission (As of June 30, 1954) ROSEL H. Hn>E; Chainnan (Term expire, June 30.1959) EDWARD M. WEBSTER (Term expire.lune 3D, 1956) GEORGE E. STERLING2 (Term txpirellJune 30, 1957) FRIEDA B. HENNOCK (Term expire, June 30, 1955) ROBERT T. BARTLEY (Teem expirea June 3D, 195&) JOHN C. DOERFER' (Term expire8 June 3D, 1961) ROBERT E. LEE' (Term expires June 3D, 1960) 1Succeeded as Chairman October 4. 1954. by George C. McConnaughey. I Rcei8ned 8S of September 30, 1954; succeeded by George C. McConnaughey October 4, 1954. I Reappointed June 4, 1954; confi.rmed June 29, 1954. ~Tookoffice October 6, 1953;~ueceededPoul A. Walker. II LETTER OF TRANSMITTAL FEDERAL COMMUNICATIONS COMMISSION, WMhington25, D. C., SeptembeT 29, 1954. 1'0 the Congress of the United States .. In compliance with section 4 (k) of the Communications Act of 1934, as amended in 1952, there is herewith submitted the annual report of the Federal Communications Commission for the fiscal year 1954. This report is of particular interest because it marks the 20th anni versary of Government regulation of electrical communication services as coordinated in and exercised by this Commission. Therefore, in addition to reporting on events of the year ending June 30, 1954, this report contains background historical reference and notations of subsequent important developments up to the time of going to press. Biographical data with respect to persons taken into the employ ment of the Commission during the year, together with the names of persons who have left its employ during that period, are being trans mitted as a nonprinted supplement to this report. Respectfully, ROSEL H. HYDE, Chairman. 1lI [ Page IV in the original document is intentionally blank 1 Table of Contents Pare INTRODUCTORY SUMMARY 1 Anniversary highlights 1 GENERAL 11 20th anniversa.ry 11 Commission . . 14 Organization chart 10 Staff organization. . . 15 Personnel . . . . • • 15 Appropriation and expenditures 15 Fees . . . . . . . . . . 16 Seek less paper, more speed 16 Hearings 17 Legislation. . . . . . 18 Litigation . . . . . . 20 Applications and other filings 24 Correspondence 24 Releases and publications . 24 Technical assistance activity 24 NATIONAL DEFENSE • • 27 General . . . . . . . 27 CO NELRAD program 27 Citizenship requirements 29 Other defense activities . 29 COMMON CARRIER SERVICES 31 Domestic telephone. . . 31 General . . . . . . • 31 Services and facilities . 33 Construction of facilities. 33 Discontinuance, reduction or impainnent of service 34 Speed of service . . . . . . . 34 Acquisitions and consolidations. 34 Interlocking directorates. . . 34 Reclassification of companies. 34 New techniques . . . . . . 34 Foreign attachment cases . . 35 Bell lease and maintenance of radio equipment. 35 Domestic public land mobile radio service . . . 35 Rules governing domestic public radio services . 36 Rural subscriber and short-haul toll radiotelephone services. 36 Community TV antenna servicing 37 State radio opera.tion . . . . 37 Coastal and Alaskan services. . . 37 v VI TABLE OF CONTENTS COMMON CARRIER SERVICES-Continued p... Domestic telephone-Continued Rates and tariffs . . . 37 Tariff schedules 37 Special permissions . . 37 Inereased mes,age toll telephone rates. 38 Investigation of Bell Sy&tem rates 38 Teletypewriter exchange (TWX) service rates 38 Bell System video program transmission rates 39 Interstate telephone exchange service rates. . 39 Telephone rates between United States and Alaska. 39 Telephone excise taxes reduced. 40 Other regulatory matters 40 Depreciation. . . . . . . • . 40 Separation procedures. . . . . 41 Interstate telephone service within large metropolitan areas. 41 Bell System Federal income taxes 41 Western Electric earnings and prices 42 Pensions and relief . . . . 42 Uniform system of accounts 42 Accounting research. . . . 42 Plant accounting practices. 43 Restatement of plant accounts on basis of original cost 43 Continuing property records . . . . . . . . . • . . 43 NARUC committees on depreciation and accounts and statistics. . . . . . . 43 Annual and other reports 44 Domestic telegraph. . . 44 General . . . . . . 44 Services and facilities 45 Speed of service 45 Western Union modernization program 46 Construction of wire facilities 47 Discontinuance, reduction or impairment of service 48 Messenger delivery limits 48 Rates and tariffs . . . . . . 48 Tariff schedules 48 Domestic telegraph rates 48 Ticker rental charges . . 49 Other regulatory matters 49 Original cost of plant and continuing property records 49 Depreciation. . . . . . . . . . 49 MiscellAneous accounting matters. 49 Uniform system of accounts . 50 International telegraph and telephone . 50 General. • . . . . . 50 International services . 51 Telegraph facilities 51 Telephone oircuits 52 Applications . . . 53 l\Ierger • . . . . 53 Licensing of submarine cables 53 TABLE OF CONTENTS iliary stations. The Bell Telephone System handled a daily average of mOre than 153 million messages. It operated a national network of coaxial cable and microwave facilities, of which 5 million circuit-miles were radio. Over 80 percent of all Bell telephones were dial operated. More than 1 2 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 500 mobile radiotelephone systems were in operation. Radiotele phone service was provided to 111 overseas points. For the first time, international radiotelephony exceeded 1 million calls. Western Union handled 162 million land-line messages during the year. Besides operating a regional microwave telegraph system, it had linked nearly 250 large branch offices in nonreperforator cities with its mechanical reperforator relay system, was serving more than 22,000 teleprinter installations and over 13,000 deskfax (fac simile) instruments. Through direct radio connections with 87 countries, and cable systems to Europe, and Central and South Amer ica, telegraph carriers were able to reach the world at large. Inter national telegraph traffic amounted to 511 million paid words. More than 962,000 radio operator authorizations of different classes were outstanding. The two categories numbered nearly 850POO oommeroial radio operators, and more than lW,(}()() amateur radio operators. The net result was that at the close of two decades the Commission had on its books more than 1,200,000 authorizations in the radio field alone. • • • Following are group summaries of the Commission's activities and the services it regulates which are detailed elsewhere in this report. National Defense Chief among the national defense activities of the Commission is administration of the CONELRAD (control of electromagnetic radiation) program. The purpose is to prevent radio transmissions being used to guide enemy aircraft in event of attack, also to harness radio stations to the defense effort. CONELRAD has been applied to broadcast, aviation, and public safety stations, and arrangements are being made to extend it to all other radio services, and to radio facilities in our outlying possessions. The Commission is also active in the coordinated effort of military and civilian Federal bodies and the communications industry to see that wire and radio media are integrated into the defense program, that essential circuits will be available under any eventuality and, further, that our vital communications facilities are adequately safeguarded. On June 10, 1954, the Commission proposed to deny amateur or commercial radio operator licenses to members of subversive groups. Decision was still pending. Commission licenses have always been limited to citizens. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 3 Frequency Allocation In the international frequency allocation field, the Commission was concerned chiefly with carrying out domestically the provisions of the Geneva Agreement, in which 65 countries agreed on an orderly use of bands of frequencies for the different radio services on a worldwide basis. It continued to implement a subsequent Atlantic City con ference with reference to the division and use of these frequencies in our own country. This involved extensive coordination with and noti fication to the other nations concerned. The Commission assisted in the United States preparation for and participation in 13 international radio conferences and meetings dur ing the year, was preparing for 5 additional conferences, and 25 others were scheduled. Common Carrier Services Telephone.-The 50-millionth telephone in this country was in stalled in the White House in November 1953. It was 1 of the 2,000,000 added in 1953. About 82 percent, or 41 million, of these telephones are operated by the Bell System. The number of domestic telephones now exceeds 51 million. Bell's $1.4 billion construction during calendar 1953 included 234 wire line and 652 microwave radio grants by the Commission. Bell now provides more than 5 million telephone circuit-miles by micro wave radio. It also operates more than 54,000 miles of broad-band channels, mostly by radio, in relaying programs to 300 TV stations. In addition, more than 500 mobile radiotelephone systems are in operation. The public used more telephone service in 1953 than ever before. Bell daily averaged 147 million local and 6.3 million toll calls. It had revenues of $4.4 billion for 1953, up 9 percent over the previous year, and its consolidated net income was $479 million, an increase of 17.7 percent. The Commission permitted several increases in telephone rates dur ing the fiscal year to offset increasing costs of operation and to provide reasonable earnings. Effective October 1, 1953, Bell companies in creased rates for interstate message toll service by $65 million a year, or 8 percent. On November 1, 1953, the Northwestern Bell Telephone Co. increased exchange rates by $900,000 a year in 13 border exchanges in Iowa which furnish interstate service. The Commission also per mitted increases of about $200,000 a year to become effective July 1, 1954, on telephone service between the United States and Alaska. This increase accrues to the Alaska Communications System. The Com mission prescribed depreciation rates for three Bell companies and revised depreciation rates for three other Bell companies. The effect is to reduce depreciation charges by $3 million a year. 4 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Telegraph.-The Western Union Telegraph Co., the single domestic telegraph carrier, reported 162 million land-line messages in 1953 as compared to 160 million in 1952. Total land-line revenues increased to $208 million as compared to $184 million in 1952, with a large part of this increase resulting from the growth in private line service. Net earnings from all Western Union operations, both land line and cable, amounted to $14.5 million as compared to $1.7 million in 1952, when its earnings were depressed by a 2 months' strike. Despite improvements in facilities and operations, the speed of handling telegrams was slightly slower in 1953 than in the previous year. As one means of improving service, the company is increasing direct connections with customers, and at the end of fiscal 1954 had 13,534 deskfax and 22, 586 teleprinter tieline installations. Twelve hundred applications for reductions in hours or closures of telegraph offices were filed with the Commission in fiscal 1954 as .compared to 1,953 applications in fiscal 1953. On June 15, 1954, Western Union filed tari:ffs proposing general increases in telegraph rates which it estimated would amount to $10 million a year. The company claimed that this was necessary to offset increased wages and to restore declining earnings. After study, the Commission permitted the increase, elfective July 15. On April 22, 1954, it authorized Western Union to increase rates for tickers used in leased facilities service. lnternational.-International telegraph carriers reported 511 mil lion paid words in calendar 1953, which was 1 percent below the 1952 volume. Their total revenues for that year increased by 3.7 percent to $60 million. This reflected higher collection rates on inbound traf fic and growth in leased circuits. International radiotelephony, born in the 1920's, exceeded 1 million calls for the first time, which was an increase of 7.1 percent over the previous year. At the close of fiscal 1954, telegraph service was provided direct to 87 countries and through them to the rest of the world. Telephoue service was available on 63 direct circuits and via both direct and indirect circuits to 111 foreign countries and overseas points. The Commission is well along in its program to transfer operations of radio carriers to "in band" frequencies in accordance with frlr quency allocations in international agreements. The United States Supreme Court remanded to the Commission the case covering applications of Mackay Radio and Telegraph Co. to establish radiotelegraph circuits to the Netherlands and Portugal in competition with exi8ting service of RCA Communications, Inc. The Court held that the Commission should base its findings upon benefits REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 5 that would accrue from such competition rather than upon a view that a national policy favoring competition exists in this field. Fur ther hearings were held and a decision was pending. In March 1952, the Commission initiated an investigation into the matter of divestment by Western Union of its international telegraph operations as required by law. Hearings were concluded during fiscal 1954 and the matter was awaiting initial decision. Safety and Special Radio Services With more than 260,000 authorizations involving the nse of over 650,000 transmitters, the Safety and Special Radio Services constitute the largest and most active group of radio-communication facilities in use today. These services represent the employment of radio by ships afloat and by planes in the air, by police and fire departments, by electric and gas companies, by highway and forestry agencies, by railroad and streetcar systems, by ambulances, taxicabs, trucks, and buses, and by a host of other interests as well as by individuals. This usage now extends from the cradle to the grave. There are radio facilities for calling doctors and ambulances to the homes of expectant mothers as well as other persons requiring emergency medi cal assistance, and for speeding milk and other essentials to the newborn- transmitters for a livelihood or as a hobby. For radio alone there are now more than 60 categories of users who employ its convenience for a myriad'of purposes. To handle this increased business, the Commission now has about 1,150 employees, one-third of whom are engaged in field engineering work. Its fiscal 1954 appropriation was $7,400,000. Following is a comparison of radio authorizations of the Commis sion's 1st year with those of its 20th year: Class of service Msrlne ••_•• •• • _ Aviatlon _ PubUc safety•• • • ••• • • __ ._ Industrial . • . ._._. _ Land transportation . •• _. _ Broadcast ••• _ Exper:lmentaL . .. _ Common carrier._•• • ._•••• •••••••• _ Amateur_. • ._. Other. ._ ••_•• •• __ •• • •__ •••••__ • •__ SubtotaL. • •••_•• _ Operators: CommerciaL ._. •• •• • . Amateur "__ SubtotaL_. • • •• •• __ Orand totaL. • ., ._ Jan. 30, 1935 June 30,1954 ----- 2,157 46,200 678 40,164 2118 15. 697 146 21,598 0 13.945 623 6,881 1,012 "'"665 1,635 45, 561 123,287 " 1,037 51,074 210,119 130,000 "~088 36,525 120,53S 66, 62. '"623 117,W9 1,232,742 I Estbnated. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSIG:!'i 13 Less than 10,000 applications of all kinds were received by the Com mission during its first year of operation. In 1953 the number was about 430,000, not including legal and tariff filings. Many radio operations of two decades ago were on an experimental basis. These included "visual," "high fidelity," and "very high fre quency" broadcast, also various embryo nonbroadcast services. Most of today's equipment and techniques developed from such testing, plus developments spurred by World War II requirements. In 1934 there were two rival domestic wire telegraph companies and various international telegraph carriers operatingintheUnited States. Collectively, they handled nearly 170 million telegraph messages in 1934, of which number about 14 million were international messages. The now single domestic telegraph carrier (Western Union) handled over 162 million landline messages in 1953, while the volume of inter national telegraph traffic exceeded 511 million words for that year. Twenty years ago the United States had slightly mOre than 17 mil lion telephones, over which an average of 74 million calls were made daily. This Nation now has in excess of 50 million telephones from which are made about 185 million calls a day. The Commission's increased regulatory workload is further reflected in its field engineering activities. For example: in 1934 about 20,200 radio operator applicants were examined in the field and some 12,000 licenses were issued. Last year the field staff conducted more than 115,000 such examinations and issued 179,000 commercial operator authorizations. Complaints of interference to radio reception in 1934 numbered less than 3,800. Due to the mounting number of radio stations, the ex treme sensitiveness of,TV reception, and the increased use of electronic equipment and electrical gadgets, the number of interference cases requiring field investigation last year exceeded 18,000. There is a proportionate increase in other field work, too; such as inspecting radio stations of all types, monitoring the radio spectrum for engineering compliance, furnishing direction finding "fixes" for ships and planes in distress, and obtaining and analyzing technical data for Commission use. The initial annual report of the Commission for 1935 observed: "There are no fields of engineering in which new devices and inventions are being disclosed at a more rapid pace tban In wire and radio communications. The arts, both in theory and practice, are extremely complex and cover a vast field. New devices and improvements, no matter in what radio or wire serVices devel oped, are as a general rule immediately reflected in potentialities for Improvement and actual application in all other serVices." This is as true today as itwas then, but in a greatly magnified degree. 14 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION COMMISSION The Commission is composed of seven Commissioners. Each is appointed by the President subject to Senate confirmation. The nor mal term of a Commissioner is 7 years. Not more than four Commis sioners may be members of the same political party. The Commissioner who serves as Chairman is normally so desig nated by the President. In the absence of such an appointment, the Commission is enabled to select one of its members to act in that capac ity. The Communications Act designates the Chairman as the chief executive officer of the Commission, to coordinate and organize its work, and to represent the Commission in legislative and other official contacts. Under Commission authorization, the Chairman is respon sible for the general administration of its internal affairs. The Commissioners, who function as a unit, make all policy deci sions. In the abseuce of a quorum of Commissioners, a Board of Commissioners present can function, subject to its actions being later ratified by the Commission en bane. The Commission assigns specific tasks to connnittees of Commission ers or individual Commissioners. There are 2 standing committees of Commissioners-theTelegraph Committee and theTelephone Com mittee-each composed of 3 Commissioners. The Commission also prescribes staff functions. During the year, these changes occurred in Commission member ship: Commissioner Rosel H. Hyde was, on April 19, 1954, designated by the Commission to act as Chairman pending Presidential action. He had served as Chairman siuce April 18, 1953, under a I-year Executive appointment. (George C. McCounaughey was, on Sep tember 25, 1954, appointed by President Eisenhower to be a member and also Chairman of the Commission. He took office the following October 4. He succeeded Commissioner George E. Sterling, who resigned as of September 30, for the latter's unexpired term which extends to June 30, 19&7. His appointment as Chairman is for one year.) On October 6,1953, Robert E. Lee succeeded Paul A. 'Valker, whose term expired the previous June 30. Appointed by President Eisen hower, Commissioner Lee was confirmed by the Senate on January 25, 1954. His term is to June 30, 1960. Commissioner John C. Doerfel' was, on June 4, 1954, reappointed by President Eisenhower-this time for a regular 7-year term-for which he was confirmed on June 29. Since April 15, 1953, Commis sioner Doerfel' had filled out the remainder of the term o,f Robert F. Joues, resigned, which expired June 30, 1954. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 15 A Est of Commissioners as of June 30, 1954, with their terms of office appears on the back of the title page to this report. Present and former Commissioners, also their tenure of service, are listed in the appendix. STAFF ORGANIZATION As a result of a reorganization initiated in 1949 and completed in 1952, the Commission staff operates on functional rather than profes sional Enes. In other words, the staff is integrated into bureaus and offices on the basis of the Commission's operating requirements. Thus, each of the chief operating bureaus is a self-contained unit with legal, engineering, accounting, administrative, clerical, and other personnel needed to perform its particular functions. The Commission's 4 bureaus and 8 offices and their respective major units are shown on the organization chart which constitntes a separate page of this chapter. PERSONNEL When the fiscal year ended, the Commission had 1,146 employees, which was 76 mOre than for the same time the year previous. Of this total, about one-third were engaged in field work-largely engineering. Personnel distribution was as follows: Oommlssloner!L . _ Office of Opinions and Review~• _ Office of Hearing ExamIners . . __ . . " Office of Reports BndInlormatl()Il~_~• __ . . __ Office of Adrr.lnlstratlon. . > • • ._ Office of Secretary. • . . , __ OffIce of General Counsel. . _ Office of Ollid Account[l,nt. •~_ Offlce of Chfd Endneer~. Common Carr1?r Bureau~_ Safety and Special Radio ServicesBureau~~ Broadcast Bureau . _ FIeld Engineering and Monitoring Bureau •~_ Total_~_~~__~__~~•~_ Wash- Field Total ington 46 0 .. 21 0 21 .. 0 .. , 0 , 87 0 87 64 0 64 16 0 16 17 0 17 66 21 87 76 31 107 130 0 130 172 0 172 ,. 302 361 --------- 792 354 1,146 Biographies of Commission personnel added during the year, as well as a list of those employees leaving the Commission during that period, are being submitted to Congress as a mimeographed supple ment to this priuted report. This information is required by Section 4 (k) (3) of the Communications Act, as amended in 1952. APPROPRIATION AND EXPENDITURES Through stringent economy measures, the Commission was able to effect a saving of $449,020 in its operations during the fiscal year 1954. Itdid this on an appropriation of$7,400,000, which was $991,540 more than the year previous. 16 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Obligations against the 1954 appropriation were as follows: Appropriation Regular appropriation (sal· aries and expenses) $7t 400, 000 Obligations Personal services $6,131,453 Travel____________________ 71,210 Transportation of things___ 22,373 Communication services___ 165,706 Rents and utilities________ 51,471 Printing and reproductioD_ 58, 162 Other contractual services_ 167,666 Supplies and materials____ 118, 186 ~uipment________________151,543 Land and structures_______ 13,000 Awards and indemnities___ 210 Total obIlgtlons_____ 6,950,980 Savings, unobligated bal- ance____________________ 449,020 TotaL______________ 7,400,000 The source of these funds and the authority for expenditures there under was Public Law 1'76, 83d Congress. FEES Pursuant to provisions of the Independent Offices Appropriation Act of 1952, as augmented by a Bureau of the Budget circular of November 5, 1953, the Commission on January 2'7, 1954, proposed rule making looking toward the establishment, for the first time, of fees to cover the cost of its licensing and related activities. However, on March 3 thereafter the Senate Interstate and Foreign Commerce Committee resolved that the Commission should suspend this pro ceeding until July 1, 1955. In the light of this resolution and further discussions with the Bureau of the Budget, the Commission has sus pended action in this proceeding. SEEK LESS PAPER, MORE SPEED In order to keep abreast of its growing workload, the Commission ._ 1953.~• __._. • • _ Number of telephones 17,483,981 22,445,519 35,:H3,440 39,413,889 41.353,483 Plant book "'" $4,701,177,3M 5,702,056,557 10,101,521,562 11,971,435,1'1:7 13, 059, 232, 000 Revenues $1,174,322,517 1,930,889.452 3, 261. 528, 032 4,039,664.218 4,416,729,614 Employees .275,317 387,300 523,251 679,500 .687,839 Services and Facilities Oon8t1'lWtion of faeilities.-The Bell System spent about $1.4 bil lion for expansion and improvement of existing facilities during 1953, the largest portion of which went for exchange plant additions, such as central office buildings, exchange switching equipment, ex change distribution plant, and subscriber station equipment. Dur ing the same period, the A. T. & T. Long Lines Department spent a record $133 million for new plant construction, part of which went to provide a '27-percent increase in long-distance circuits. During fiscal 1954, the Commission granted 234 applications in volving estimated expenditures of $62,985,906 for authority to con struct, lease, acquire, and operate wire and cable facilities in connec tion with interstate and foreign telephone service. Included were 12 authorizations for acquisition or lease by telephone companies of facili ties owned by other companies. The following table shows the esti mated costs and amounts of wire and cable construction authorized by the Commission since 1948 : Fiscal year Number ofl projects Cost Sheath mllesof cable Tube milt's Conductor uf coal\:ial miles or units open wire 1948._~_~~__~, • ' •• 1949"._~._ 1950__•__ • ._. • • 1951. _.•~_._.,_~.••. ._ 1952. •~•• ._••_._._ 1953. __ . . . .• • _ 1115,'- . • ,_. . _ 348 $127,162,499 313 38,638,919 141 13,230,678 218~,795, 686 323 107,533,688 358 89,228,416 234 62, 9&5, 900 2, 637. 5 46, 080 1,370. .5 1,323 399.3 •••• _ 957.1 2,704 1,388.7 2,972 1,494.0 5,678 730.0 564 16,373 7,278 3,491 6,461 6, Il98 2,006 1,837 The Bell System also continued its vast microwave radio construc tion program during fiscal 1954. The Commission granted a total of 652 Bell applications for microwave construction, including 13 held over from 1953. These projects involved an estimated expenditure of $51.5 million to provide an estimated 30,492 broadband channel miles for toll telephone and video program services. By the end of fiscal 1954, the Bell System operated nearly 5 million toll telephone circuit-miles over microwave paths, which was more than double the number at the end of the previous year. The microwave systems, in conjunction with coaxial cable systems, were also being used to pro vide about 54,000 channel miles of TV program circuits. 34 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Independent telephone companies also expanded the use of micro wave systems during fiscal 1954. The Commission authorized 13 new projects involving estimated expenditures of $617,000 which would be used to provide about 5,000 toIl telephone circuit-miles and about 62 TV program channel-miles. The Commission revised its rules relating to the granting of au thority for the supplementation of interstate communication facili ties. These revisions permit carriers to secure continuing authority under which smaIl projects may be initiated without securing prior specific authority, provided that a brief report is submitted to the Commission semiannually showing the projects undertaken. Discontin'lw,1UJe, reduction or itnpairment of service.-During fiscal 1954, the Commission granted seven applications to discontinue, re duce, or impair telephone service. Three of these involved the sub stitution of one carrier for another in providing exchange service. One involved the substitution of toll-station service in lieu of exchange service, 1 involved a temporary discontinuance of toll interconnections, 1 involved closure of a coastal harbor station after the only vessel it served tvas decommissioned, and 1 involved the elimination of toIl station service at a community. Speed of se?'vice.-The Bell System reported that the average time required for completing toll calls dropped from 1.8 minutes in cal endar 1952 to 1.6 minutes in 1953, and that 95 percent of all toll calls went through while the calling party held the line. Acquiliti0118 and c0118olidations.-The Commission received 19 ap plications from domestic telephone carriers for authority under sec tion 221 (a) of the Communications Act to acquire the property of an other telephone company. After due notice of public hearing, 10 of these applications were granted, along with 1 held over from fiscal 1953. Of those pending at the close of the year, an initial decision had been issued on one, a hearing had been held on another and awaited initial decision, while hearings had been scheduled but not held on the remaining seven. Interlocking di1·eetoroates.-The Commissiou received 20 appiica tions filed by individuals pursuant to section 212 of the act for au thority to hold positions of officer or director of more than one domes tic carrier subject to the act. All but one of these applications had been granted by the end of the fiscal year. Reclassification of companies.-The Commission granted petitions by 3 telephone companies to be classified as "colmeeting carriers" under section 2(b)2 of the act which would render them subject only to sections 201 through 205, inclusive. N e"" techniques.-A tiny revolutionary electronic device called the transistor continued to fiud new and wider uses in the telephone indus- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 35 try, particularly as a substitute for thermionic tnbes. In one installa tion in the trial stage near Americus, Ga., transistors are being used to derive several voice paths from one pair of telephone wires to expand service to rural telephone subscribers. Foreign attachment cases.-The Commission, on May 7, 1954, issued its final decision in the cases of Jordaplwne Oorporation of America et at. v. American Telephone and Telegraph Co. et al. (docket 9383} and In the Matter of the Use of Telephone Answering Deviee8in Oon neetion With Interstate and Foreign Telephone Service (docket 9701) ,_ both of which proceedings involved the lawfulness of the foreign at tachment provisions of the Bell System companies' tariffs as applied to automatic telephone answering devices in connection with inter state and foreign telephone service. The Commission found that such devices would be primarily used in connection with intrastate and local telephone service and only incidentally in interstate and foreign communication. It concluded, therefore, that the determina tion as to the use of such devices in any particular locality should he made by the appropriate State or local regulatory authority. Final decision was still pending in the case of Hush-A-Phone Corp. et at. v. American Telephone and Telegraph Company et at. (docket 9189), which involved the lawfulness of the foreign attachment pro visions of the defendants' tariffs insofar as they might be construed to prohibit the use o'f the Hush-A-Phone device. Bell lease and maintenance of radio equipment.-The Commission started inquiry into the growing practice of Bell System companies leasing radio equipment to various licensees and performing the main tenance therefor on a monthly charge basis. Among other things, the Commission is seeking to determine whether the licensees involved have complete control over the operation of the radio equipment, whether the lease and maintenance charges of the telephone com panies may be so low that their common-carrier services aresubsi dizing the lease-maintenance activities, whether the telephone com panies may use arguments regarding the availability to prospective lessees of regular communication services to help sell the lease-main tenance service, and whether lease-maintenance activities may lead to demands that portions of the radio spectrum not now allocated to common carriers be reallocated to common earrier USes. Domestic public land rrwbile radio 8ervice.-Activity in this service continues to be noteworthy for the interest shown in one-way sig naling (radio paging) operations. This operation typically involves communication from a base station to pocket-type receivers carried on the subscriber's person. As of June 30, 1954, there were 34 such systems licensed, 24 others authorized, and 9 had been terminated. 36 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Due to the lack of sufficient frequencies to accommodate all appli cants for new one-way signaling systems in certain areas, it was neces sary to hold comparative hearings for the Philadelphia area, the Fort Worth-Dallas area, the St. Louis area, the Los Angeles-Long Beach area, and the Seattle area. Final decisions had been issued in the St. Louis and Seattle cases, and an initial decision given in the Philadelphia case. In addition, a final decision was issued in a previously heard Los Angeles case. The two-way land mobile radiotelephone service furnished by mis cellaneous (nontelephone company) common carriers continued to expand and was being provided by 258 licensed systems, and 29 others had been authorized. In addition, there are 2 such systems in opera tion in Alaska, 1 in Hawaii and 1 in Puerto Rico. The two-way land mobile radiotelephone service furnished within the United States by general communications carriers (telephone com panies) was being provided on 201 systelI's licensed to Bell companies and 20 to non-Bell companies. Bell companies were authorized to establish 13 additional systems within the United States. The Hawaiian Telephone Co. is the only general communications common carrier providing such service (at Honolulu) outside the continental United States. Rule8 governing dome8tie publie radio 8erviee8.-0nly the land mobile radio operations of common carriers are currently being con ducted under rules and regulations specifically applicable to a reg ularized service. The domestic common carrier operations of micro wave radio relay systems, television STL (studio-to-transmitter link) stations, TV pickup stations, rural subscriber radio stations, short haul toll radio stations, stations for control of remotely located trans mitters, and repeater stations for automatic relay of land mobile sta tion transmissions are all being licensed as developmental stations in the experimental radio service. During the year, a rulemaking proceeding (docket 10821) was initiated to revise the rules and regulations governing the common carrier land mobile radio service and to establish rules and regnla tions for authorizing the aforementioned types of common carrier radio operations on a regular service basis. The proposed rules are designed to be of material assistance in the preparation and filing of common-carrier applications for radio authorizations and in the regulation of these services. Rural 8ub8eriber and 8hort-haul toll radiotelephone 8B1"1Jiee8. Expansion continued in these experimental services which provide short-distance radio communication, on VHF frequencies, to points where it is impracticable to provide wire line communication. As of REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 37 June 30, 1951, telephone companies held licenses for 26 rural sub scriber radio statious and constructiou permits for 6 others. In addi tion, 12 stations were licensed and 4 were authorized to miscellaneous common carriers. Fifty experimental short-haul toll radio stations were licensed to Bell companies and 5 to non-Bell companies. Four construction permits were outstanding. Oommunity TV antenna 8ervicinq.-The l'apid incl'ease in the num ber of community antenna TV systems has led to l'equests for common carrier microwave authorizations to relay the TV signals from the point of pickup to the cable distribution point. During the fiscal year, authorizations for such relay systems were made to the Mountain States Telephone and Telegraph Co. and to J. E. Belknap and Associates, a specialized common carrier in this field. State radio operation.-On petition of the State of California, the Commission proposed rulemaking (docket 10777) to afford interested parties an opportunity to present views concerning conteinplated amendments of parts 10 and 11 of the rules. These amendments would provide that operational fixed stations licensed to various agen cies of a State could be used to provide coordinated service to other eligible agencies such as the Federal State Market News Service of California; also that any facilities so licensed could be used during off peak periods for the general administrative communications of the State government. Common cal'riers commented adversely on the grounds that they have adequate facilities to meet State communica tions needs, and that provision of such facilities by States would result in unnecessary and uneconomical duplication of facilities. Ooa8tal aruJ Ala8kan 8ervices.-These services, though largely au thorized on a common carrier basis, are discussed in a separate chapter on Snfety and Special Radio Service6 because of their close relation ship to radio aids for the safety of life and property. Rates and Tariffs Tariff8clledule8.~Atthe close of the year, 365 telephone carriers had tariffs or concurrences on file with the Commission, or 29 more than at the close of the previous year. The increase was due to new carriers in the Domestic Public Land Mobile Radio Service. The carriers filed 15,210 tariff publications, establishing new or modifying existing rates and regulations. Sixteen of these were rejected for failure to comply with notice requirements; none were suspended. Special permi88iO'M.-Fifteen applications for special permission' to make changes in tariffs on less than statutory notice, or for the waiver of some other rule requirements, were received. All were granted. 38 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION IncreaJJed me88age toll telephonerate8.~Increasedrates for inter state message toll telephone service became effective October 1, 1953, as provided for in revised tariff schedules filed with the Commission on August 28 by the Bell System telephone companies. The revised tariffs provided for increases of 5 cents in the rates for each 1-minute overtime period on station-to-station and person-to-person calls in volving most distances above 24 miles; and for increases of 5 and 10 ~entsin the initial period (3-minute) rates for night and Sunday ~allsinvolving most distances between 41 miles and 2,300 miles. The increases in the initial-period rates for night and Sunday calls resulted in more uniformity in the percentage differentials between those rates and the initial-period day rates ltt the various mileages. The new rates were estimated to produce about $65 million in additionltl annual telephone revenues, an increase of about 8 percent. Of this $65 million, about $30 million accrued to the Bell System companies as increased earnings, $2 million went to their independent connecting companies, with the balance repre,enting principally Federal income tax payments. The Commission, after due consideration ltnd study of attendant filings, decided to take no action to prevent the new rates from becom ing effective since it appeared that, under existing rates, interstate earnings of the nell System companies were deficient and that the level'of earnings which ,,,QuId result fronl the revised rates was suffi ciently within the area of reasonableness as not to present auy substan tial question as to their lawfulncss. In this connection, it appeared to the Commission that the additional revenues would bring the Bell System's return on its interstate services from less than 5 percent to, within a range of 6 to 6% percent. In1Je8tigation of Bell SY8tem mte8.-The Commission, on March 31, 1954, terminated the investigation which it instituted on January 19, 1951, of the Bell System's rates and charges for interstate and foreign communications services (docket 9889). This action followed a re view of the Bell interstate and foreign operating results which in dicated that further action in the proceeding was not required. Teletypmmitel' e"'change (TWX) service rates.-Increases and re visions in the rates for interstateTWX service became effective .July 1, 1953. Contractual arrangements betwp,en the Long Lines Depart ment of A. T. & T. and the regional telephone operating companies of the Bell System, covering compensation of the latter for their par ticipation in furnishing interstate TWX service, were modified at the same time. There was substituted for the former conmlission and prorate basis of compensation a plan designed to reimburse the re gional companies for their expenses incurred in connection with the REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 39 service plus a return on their investment devoted to it, in part a fixed rate of return and in part a rate of return equal to that being earned by the nell System on all interstate services. Bell Sy..tem video program transmu,sion'rates.-In order to provide tariff rates and regulations covering the transmission of network TV color programs, the A. T. & T. successively extended its "Experi mental Color Systems" tariff schedules. Under the "experimental color" tariff, which was originally to ex pire on December 31, 1953, the nell System's rates for the trans mission of color broadcasts are the same as for the transmission of regular black-and-white (monochrome) broadcasts except for a ]ligher station connection charge in the case of color. In its first letter dated December 28, 1953, requesting special permission to extend its color tariffs, A. T. & T. sttLted "the present rates for experimental color systems are substantially less than the full costs of furnishing inter exchange and local facilities suitable for the NTSC system and that the extension of these rates is proposed without prejudice to com pensatory rate schedules which will be filed shortly". As of the close of fiscal 1954, the nell System had not filed revised tariff schedules to cover the new color standards. However, in antic ipation of such a filing, A. T. & T. submitted to the Commission a study made by the nell System companies with respect to their current and future costs of furnishing video services. The methods used in mak ing the study as well as the validity of the results were being reviewed and analyzed by the Commission. Interstate telephone emchange ",rvice rates.-The Northwestern nen Telephone Co. increased its rates, effective November 1, 1953, for inter state telephone exchange service furnished in 13 exchanges on the borders of Iowa, which exchange service is subject to the Commis sion's jurisdiction since it is not subject to regulation by any SttLte or local authority. Upon consideration of data relating to the Iowa operations, the Commission decided to take no action to prevent the rates becoming effective as filed. The increase of about $900,000 in annual revenues will bring exchange rates in these border communities into line with rates for exchanges serving interior localities in Iowa. Telephone rates between United State.. and Alll8ka.-Charges for most telephone calls between the United States and Alaska were to be increased 75 cents for the 3-minute initial period and 2& cents for each minute of overtime, effective July 1, 1954. The increased rev enues, estimated to amount to about $200,000 annually, will all accrue to the Alaska Communications System, administered by the Chief Signal Officer of the Army, which operates the communication links between the United States .md Alaska. 318372-54--4 40 REPORT OF THE' FEDERAL COMMUNICATIONS COMMISSION Telephone emdse tamesreduced.~Federalexcise taxes, which had been 25 percent on long distance calls of 25 cents or more and on leased wire services, and Hi percent on long-distance calls of less than 25 cents and on local service, were all reduced by congressional action to 10 percent, effective April 1, 1954. Other Regulatory Mailers Depreciatwn.-The work of developing information in connection with the Commission's continuing program of fixing depreciation rates for telephone companies was carried out during the year with respect to several Bell companies. On the basis of such information and through joint reviews of relevant facts with State commissions and the companies concerned, depreciation rates were prescribed for the first time for Wisconsin Telephone Co., Bell Telephone Co. of Nevada, and for each operating area served by The Pacific Telephone and Telegraph Co. (5 operating areas in 4 States). The new rates resulted in annual depreciation charges aggregating $60,925,000 and represented a reduction of $2,196,000 annually, or 3.5 percent. In addition, the Commission modified most of the depreciation rates previously prescribed for the following Bell companies: Illinois Bell, Bell of Pennsylvania, and New EnglandTelephone & Telegraph. The new rates in the case of the first 2 mentioned companies produced an nual charges aggregating $49,482,000 and represented a total reduction of $797,000 annually, or 1.6 percent, whereas in the case of the New England company, the resulting depreciation charges of $24,028,000 annually represented an increase of 0.5 percent. In prescribing depreciation rates for the Pacific and Nevada com panies, the Commission considered the views expressed by certain State commissions that prescription should be postponed pending further study to determine whether the straight-line, total-life method used by the FCC for computing depreciation should be abandoned in favor of th.. remaining-life method. The Commission concluded that no suffi cient showing had been made for a change in method and, accordingly, made its prescription on the total-life basis without prejudice to fur ther review of depreciation methods. By the end of the fiscal year, the program of prescribing deprecia tion rates for telephone companies had been carried out with respect to all 23 Bell companies, including the Long Lines Department of A. T. & T. In the case of 12 of these companies, the depreciation rates were revised at least once during the past 4 years in order to reflect changes arising from developments in the art and other factors. While the established rates reflect both upward and downward adjust ments in depreciation charges, theiroverall net effect to date represents a reduction aggregating approximately $29,000,000 annually, or more than 6 percent. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 41 In spite of the downward adjustments in depreciation rates, depreci ation expense charges of telephone companies continued to rise due to a substantial increase in plant facilities. For the calendar year 1953 these charges in the case of the 23 nell companies amounted to almost $441,000,000, an increase of $31,986,000, or 7.8 percent over the previ ous year. The increase in depreciable plant facilities, however (ex pressed in terms of the recorded book cost), amounted to 9.1 percent during the same period. Separ-ation proaedures.-The procedures used by nell companies to separate and apportion their investment and expenses between intra state and interstate services were the subject of further studies by the Commission in cooperation with State regulatory authorities, through the National Association of Railroad and Utilities Commissioners (NARUC). Since the major portion of telephone plant is used in common to render intrastate and interstate services, a uniform and equitable method of separation, acceptable to both State and Federal jurisdictions, is essential to the determination of reasonable rates for Eervices subject to each of the several jurisdictions. The current studies, which were pending at the close of the fiscal year, were undertaken as a means of mitigating the regulatory prob lems which are presented by the fact that intrastate long-distance rates are generally higher than interstate long-distance rates for equivalent distances of service. It has been contended by various regulatory authorities that the disparity between intrastate and interstate rates results, at least in part, from inequities in the methods of allocation and that larger amounts of investment and expenses of the Bell System should be apportioned to interstateoperations. Interstate telephone service within large metropolitan areas.-One new interstate exchange embracing a large metropolitan area was es tablished during the year at Louisville, Ky. Other interstate exchanges in this category are Cincinnati, Ohio; Kansas City, Mo.; Providence, R. :1:., and Washington, D. C. Some of them present problems of regulatory jurisdiction not yet fully resolved. Bell System Feder-al income tames.-The Internal Revenue Code of 1954 will present new income-tax allocation as well as other problems. One may result from the inclusion of Western Electric Co., Inc., the manufacturing and supply unit of the Bell System, in the latter's con solidated income-tax returns. Western has not been included in the Bell consolidated returns filed each year since 1950. There is doubt that it could have been included in these returns without the Bell com panies sacrificing their favorable tax status of "regulated public util ity"as defined in the Excess Profits Tax Act of 1950. IfWestern is included in the Bell consolidated returns on a basis of eliminating from consolidated taxable income Western's profits on 42 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION intercompany transactions, snch inclusion will result in deferrals of the impact of income taxes which in turn will lead to subshmtial reduc tions in the revenue requirements of the telephone companies. A rep resentative of A. T. & T. has argued against the elimination of these intercompany profits in consolidated returns on the grounds that such elimination "is both el • __ • _ 74 14 9 3 51 " 22 3 45 35 18 2 50 14 19 17 25 25 24 28 18 4' 32 10 \Vestern Union nndertook a program of connecting its large volume. tieline customers directly to the company's public message reperfo rator switching system. Such arrangements eliminate the usual in terception and manual relay of tieline messages at the originating telegraph message center, thereby effecting substantial economies and speeding up service. At the dose of fiscal 195i\, \Vestern Union announced plans for further expansion in the facsimile and private wire service field. A number of custom-built private wire systems were installed and major additions were 11lade to certain existing systems in fiscal 1954. Some of these systems employ equipment and methods similar to those used in the telegraph company's own mechanized switching centers. A new and extensive private wire system was being completed for the Gen eral Services Administration. This system will link governmental centcrs throughout the Nation in a 15,000-mile network employing the latest telegraph techniques. Gross expenditures on the lllodernization program through calen dar year 1953 amonnted to some $56 million, with an estimated $26 million to be spent in future years. Estimated savings in operating expenses resulting from this program currently aggregate abont $31 million a year. Oonstruction of wire faoilitie8.-The Commission granted five re quests of ·Western Union for authority to construct or operate new or extended wire telegraph lines. The applications covered the leasing of 102,OBl telegraph channel miles at an annual rental of $208,3B8, and the construction of 69,369 telegraph channel miles of line and associated equipment at a cost of $1,571,720. 48 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Facilities leased to subscribers for private-line telegraph service supplied by Western Union rose from 1,248,000 miles to 1,493,572 miles during the fiscal year, an increase of almost 20 percent. Discontinuance, reduction, or impairment of service.-A total of 1,202 applications for reduction in hours of service or closure of pub lic telegraph offices were filed by Western Union as compared to 1,953 such applications during the previous fiscal year. In addition, 224 applications were pending at the beginning of the year. Of the total, 1,259 applications were granted, 30 were withdrawn, and 137 were pending at the close of fiscal 1954. Generally, where hours were re duced or offices closed, substitute service was made available. On December 21, 1953, the Commission proposed rulemaking (docket 10816) In the Matter of the Amendment of Part 6$ of the Commission's Rules and Regulations Gdve,,,,ing Ewtension of Lines and Discontinuance ofService by Carriers, to enable interested parties to present their views regarding a petition filed by American Com munications Association requesting certain changes in the require ments for posting and publishing of notice of applications by car riers for authority to discontinue, reduce or impair telegraph service, and to require that hearings be held on all formal applications where objections are filed. (On October 25, 1954 the Commission amended its rules to require carriers to post adequate public notices in affected offices, but denied the ACA petition in other respects.) Me88enger delivery limits.-Western Union filed tariff amendments to clarify its practices relating to limits within which messages are delivered by messenger without additional charge. The changed regulations provide that delivery of messages will be made without additional charges to any address within the established city or COill munity limits of any point listed in ,the company's tariff. The tariffs had previously fixed such delivery limits at specified distances from open telegraph offices. Rates and Tariffs Tariff 8chedules.-At the end of the fiscal year, 32 domestic tele graph carriers had tariffs and concurrences on file with the Commis sion. During the year, they filed 924 ,tariff publications establishing or changing rates, regulations, practices, and classifications of service. Dome.,tic telegraph ratcs.-As reported in the 1953 annual report, Western Union filed new and revised rates and regulations for in terstate leased facilities (private-line telegraph services). After due examination, they were permitted to become effective July 1, 1953, resulting in both increases and decreases, the overall effect of which amounted to an estimated redu gram and other special services. The Commission acted on 432 such applications during the same period. The number handled was ap proximately 27 percent less than during the preceding year. This is brought about principally by a reduction in the number of applica tions filed for additional frequencies in implementing the Atlantic City allocation table. The number of "out-of-band" frequency as sigmnents in these services has been reduced from 35 to 15. Progress has been aided materially by the rearrangement of operating patterns and the development of multichannel transmission techniques which result in more efficient use of the frequency spectrmn. Radiotelephone and radiotelegraph service has been institu,ted on an experimental basis in the very high frequency range between sta tions in Puerto Rico and the Virgin Islands. Heretofore such service had been on high frequencies. It is expected that the change will im prove service and help to conserve ,the relatively scarce high frequen cies. Merger.-Studies are continuing under the auspicies of the Senate Committee on Interstate and Foreign Commerce regarding the feasi bility and desirability of a merger of the major companies providing international telegraph service. Although it appears that some prog ress has been made in this matter, no definite results had been reached at the end of the fiscal year. Licensing of 8ubmarine cables.-On May 10, 1954, the President issued Executive Order 10530 which, in section 5, designates the Com- 54 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION mission to receive, grant, or revoke licenses to land or operate sub marine cables in the United States without the approval, ratification, or other action of the President, provided the approval of the Sec retary of State is obtained and such advice from any executive de partment of the Government the Commission may deem necessary. Formerly, under Executive Order 6779 of June 30,1934, the Commis sion was directed to receive such applications and, after obtaining the approval of the Secretary of State, to advise the President with re spect to theirgrant, denial, or revocation. (The first license issued under this authority was on October 20, 1954, to the American Telephone and Telegraph Co., for twin sub marine telephone cables between Port Angeles, Wash., and Ketchikan, Alaska.) Docket Cases Western Union-Globe a:nd Tropical contracts.-The 1953 annual re port referred to the final decision issued May 18, 1953, in this matter (docket 9292), in which the Commission concluded that certain con tracts entered into by 'Western Union with Globe 'Wireless, Ltd., and Tropical Radio Telegraph Co., respectively, for the exchange of specified international telegraph traffic, were violative of section 222 of the Communications Act and the formula prescribed thereto. On February 24, 19M, the Commission denied tha petitions of these com panies for a rehearing, and again ordered them to cease and desist from transferring traffic pursuant to such contracts and to enter nego tiations for an agreement on damages due the complainants (Com mercial Pacific Cable Co.; Mackay Radio and Telegmph Co., Inc.; The Commercial Cable Co., All American Cables and Radio, Inc.; and RCA Communications, Inc.), as well as a plan of reparations. On March 4, 1954, the Commission set April 1, 1954, as the date by which the cease-and-desist orders in this proceeding were to be complied with. Western Union, Globe, and Tropical on March 29 sought review of the Commission action in the Federal courts and also requested that the Commission's order be stayed pending the appeal. The request for a stay was denied, but the appeal is still pending before the Court. After notice that no agreement on damages had been reached by May 24, 1954, the Commission, on June 30, 19M, granted an extension to September 30, 1954 of the time within which to come to such agreement. Western Union divestment.-Investigatioll and hearing was in stituted by the Commission on March 5, 1952, into the matter of the divestment of '''estern Union's international telegraph operations in accordance with section 222 of the Communications Act. This section, which authorized the merger or consolidation of domestic telegraph carriers, required that any merger plan should provide for REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 55 the divestment of the international telegraph operations theretofore carried on by any party to the proposed merger within a reasonable time, and after the Commission found the compensation for the property to be divested commensurate with its value. In approving the merger of Western Union and Postal Telegraph, Inc., in 1943, the Commission required the former to exercise due diligence in effect ing divestment of its cables (docket 6517). Since Western Union had not effected divestment, the instant proceeding (docket 10151) was instituted. Hearings in the matter were concluded on March 25, 1954, and the matter is now awaiting an initial decision. Buccaneer application.-This proceeding involved an application filed on June 9, 1952, by Buccaneer Line, Inc., for a new fixed public radiotelephone station at ,Jacksonville, Fla., to furnish radiotelephone service between Jacksonville and certain points in the Yucatan pen insula in Mexico (docket 10376). Hearings in thematte~,scheduled for April 14, 1953, were postponed pending negotiations between the American Telephone & Telegraph Co. and Mexican communications . companies for the establishment of communication between the points desired through interconnection with their existing facilities. The carriers were able to establish satisfactory service and the Commission on April 29, 1954, granted a motion by Buccaneer to dismiss its application without prejudice. Mackay circuits to NetherlaM" aM Portugal.-In a previons an nual report it was noted that RCA Communications, Inc., had ap pealed to the United States Court of Appeals for the District of Columbia Circuit from the Commission decision of February 21, lHrn,. granting Mackay Radio & Telegraph Co., Inc., authority to establish radiotelegraph circuits to the Netherlands and Portugal which wonld compete with existing RCAC circuits (docket 8777). After a reversal of the Commission decision by the Court of Appeals, both the Commission and Mackay were granted certiorari by the Supreme Court of the United States for review. On June 8, 1953, the Supreme Court reversed the lower court and ordered the case remanded to the Commission for such action as may be open under the court's opinion. The Supreme Court, although agreeing that the grant of the Mackay applications would not result in a violation of section 314 of the Communications Act, stated that the Commis sion could not base such a grant on a finding that there exists a national policy favoring competition in this field, but rather must find ground for "reasonable expectation that competition may have some bene ficial effect", although specific findings of immediate tangible benefit are not required. Following oral argument on February 8, 1954, the Commission held further hearings to bring the record up to date. MeanWhile, 318372-154-5 56 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION pending a new Commission decision, Mackay is being permitted to operate the circuits. This case is particularly significant in that it presents a basic policy problem as to the extent to which the Com mission may find additional competitive circuits in the public interest on the basis of the benefits expected to be derived by the public as a result of competition. BOA0 complaint on 0 anadian traffic.-Section 222 of the act, which authorized the merger of 'Westeru Uuion and Postal, provided that the merged company shall divide among the iuternational telegraph carriers such traffic as is destined to points outside the continental United States and also to distribute telegraph traffic destined to Canada among that country's carriers in accordance with formulas established pursuant to that section. On March 24, 1954, RCA Com munications, Inc., filed a petition alleging that Western Union was in violation in that it was failing to turn over to RCAC certain traffic destined for trans-Pacific points which Western Union had received from the Canadian National Telegraph in Canada. The petition requested a ruling by the Commission. The matter is under' consideration. Rates and Tariffs Rate leveI8.-During calendar 1953 the level of rates for telegraph traffic outbound from the continental United States remained un changed, while for telegraph traffic inbound some changes in rates were reported. Although these revisions were in the nature of sur charges added to the normal rates by certain Latin American countries to increase the revenues of their telegraph operating administrations, they were of financial benefit to those United States carriers which carryon international telegraph operations in those countries. United States carriers which provide service to Latin American countries by communicating with foreign correspondents did not share in the increases in inbound rates. Tariflschedule8.-During fiscal 1954, communications carriers fur nishing international and marine telegraph service filed 1,123 tariff schedules affecting charges and regulations applicable to such services. Oontract8 and divuions of toZlB.-International and marine tele graph carriers filed 254 contracts, 815 amendments to existing con tracts, 108 reports of negotiations with foreign correspondents, and 511 statements show;ng revis;ons;n the div;sion of tolls arrangements for telegraph messages between the United States and foreign countries. Other Regulatory Mutters Depreoiation.-Substantial progress was made in implementing the continuing program of prescribing depreciation rates for international REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 57 telegraph carriers. On the basis of cooperative studies with the carriers, the Commission, for the first time, prescribed annual depreci ation rates, effective January 1, 1954, for All America Cables and Radio, Inc., and The Commercial Cable Co. The annual net effect of these new rates, based on the gross book cost of depreciable plant on December 31, 1953, represents reductions in annual depreciation charges of approximately $77,000 (or 15 percent) for All America,. and $60,000 (or 21 percent) for Commercial Cable. Depreciation rates are expected to be prescribed for some of the other carriers. during fiscal 1955. Studies were also continued to determine the reasonableness and propriety of the annual depreciation rates and charges, book deprecia tion reserves, and the depreciation accounting practices of these carriers. In order to effect more flexibility in the Commission's rules, the systems of accounts for the international telegraph carriers were amended to make the application of the remaining-life method of depreciation accounting permissive rather than mandatory. Oontinuing property records.-Two of the three international tele graph carriers fulfilled the requirements to install and maintain satisfactory property records during the year. The third carrier made substantial progress and, with the advice and assistance of the Commission, is expected to restate its records in a satisfactory manner during fiscal 1955. Studies were continued to verify and to evaluate the regulatory effectiveness of the forms, records, and procedures employed by these carriers in installing and maintaining their property records. Relief and pen8ions.-The Commission pursued its general studies of the international telegraph carriers' pension arrangements, par ticularly with the view of determining the effect of pension costs upon operating expenses. Six of thecarriers introduced changes in their pension plans, primarily to expand coverage and to increase em ployees' benefits. The Commission revised its systems of accounts for international telegraph carriers to provide that when certain pro visions in the accounts are met, the entire cost of pensions, whether relating to p>rst or to current service of employees, may be charged to operating expenses. Reclassification of plant.-Although the reclassification of plant of the international telegraph carriers has been substantially completed, additional adjustments may be required with regard to three car riers. In order to be assured of the propriety and reasonableness of the final results, comprehensive studies were in progress at the end of fiscal 1954 to analyze the methods and procedures applied, and to verify the entries recorded and the accounting performed to restate the plant of these carriers on the basis of original cost. 58 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION MiscellanefYU8 accounting matters.-'Vith the view of further im plementing effective rate regulation, studies were conducted to de termine the reasonableness and propriety of the international tele graph carriers' accounting and reporting procedures. These studies, among other things, related to (a) expunging from the carriers' rate bases all plant not used and useful in the public interest, (b) plant retirements and installations, (c) segregation of operating revenues, (d) traffic-damage claims, and (e) ocean-cable maintenance. STATISTICS General Reports were filed on an annual basis by 323 common carriers and 19 controlling companies for the calendar year 1953. Considerable financial and operating data taken principally from these reports are published annually in a volume entitled "Statistics of the Com munications Industry in the United States" (see appendix list of Commission publications sold by the Superintendent of Documents). The larger telephone and telegraph carriers also file monthly reports of revenues and expenses, and summaries of these data are published monthly by the Commission. Telephone Carriers The annual reports received from common carriers include those from 64 telephone carriers and 249 carriers engaged in rendering mobile radiotelephone service. Selected financial and operating data concerning large telephone carriers for the year 1953 as compared to 1952 are shown in the following table: Telephone carrt'ers t Item Investment In plant and elluipment (as of Dec. 31) _ Depreciation and amortization reserves.~_ Net investment in plant and equlpment. _ LOCAl !'ervice revenues " _ Toil service revenues. _ Total operating revenues _ Opera.ting expenses. . _ Taxcs • _ Net operating income after all taxes _ Net income • _ Dividends declared _ Company telephones: Business_,~•• _ Residence_ _ _ _ Number of calls originating during tIle year: Local J~• _ Toll ,~_ Number of employees at end of October _ Male .. _ Femae.~_ Total compensation for the year _ 1952 $12,608,517,366 $3, 411, 44(), 935 $9, 197, 076, 431 $2,516,731,327 $1, 5J4, 854, 055 $4,228,750,352 $2, ml6, 565, 273 $737,732,268 $504,452,211 $420,733,463 $346, 388, 050 12,899,770 28, llS7, 800 68,369,589,937 2, 194, 086, 251 615,141 207,350 407,791 $2,200,657,106 1953 $13.749,883,288 $3,618,085,781 $10,131,797,507 $2,777, ot53, 634 $1,1)41,990,139 $4,628,"'17,965 $3,222,873, 105 $8.18,052,516 $567,191,745 $496, 507, 445 $398, 972, 071 13,394,632 30,448,066 69,978,334,496 2, 268, 968, 227 625,832 215,080 410,752 $2,378,679,657 Percent of increase or (decrease) 9.05 6.06 10.16 10.34 6.911 9.44 7.91 13.60 12.44 18.01 15.18 3.84 5.0, (') (.) 1.74 3.73 0.73 3.09 I Intercompany duplications, except in minor instaD!leS, have been eliminated. 2 Partly estimated by reporting carriers. *The number of calls shown are not comparable, as many calls were reclassified from "'foU" to "Local" during 1953, due to enlargement of numeroWllocal calling areas. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 59 Business and Residence Telephones by Slales There were 50,373,000 telephones in the continental United States, of which 35,342,300 were located in residences and 15,030,700 in busi ness establishrrlents, as of January 1, 1954. The number of telephones, arranged by States, is shown in the following table. The figures were compiled by the American Telephone & Telegraph Co. Business Residence Total 145,600 376, 300 521,900 78,500 1a7,900 216,400 90,900 195,600 286,500 1,553,000 3,100,000 4,653,000 161,300 354,700 516,000 255,400 662,700 918,100 41,800 99,200 144,000 250,800 283,100 5.'33,900 361,600 64R,3OO 1109, fIOO 222,100 495,300 717,400 45,500 na,200 158,700 1,074,700 2,302,600 3,377,300 329,100 968,400 1,297,500 184,100 705,500 889,600 161,500 512,300 673,800 147,800 403,600 551,400 185,100 450,900 E):{6,000 6:3,300 182,200 245,500 2.10,800 588,7()(J 8111, SOD 512,300 1,249,700 1,762,000 621,400 1,751,600 2,376,000 250,400 759,000 1,009.400 79, tOO 189,400 268,500 359,300 919,4OD 1,288,700 50,600 121,700 172,3{)() 107,800 3,'l4,600 442,400 28,200 38, UlIO 66,200 41,400 120, 100 161.500 5G5,000 1,424,000 1,989, (}(JO 65,900 93,000 158,900 2,nl,800 4,275,300 6,499,100 ZHl,800 502,800 713,600 35,000 104,400 140,000 772,300 2,245,700 3,018,000 191,100 453,700 644,800 150,000 360,400 510,400 972,600 2,675, 000 3,647,000 77,800 tOO, 800 268,000 101,800 224,300 236,ICO 40,000 126,000 166,000 206,900 542,100 749,000 733,800 1,565,600 2,299,400 67,100 173,000 240,100 26,200 74,300 100,500 259,200 585,500 844,700 249,500 606,600 856.100 105,700 294,500 400, 200 296,600 798,800 1,095,400 29,600 62,500 92,100 15, ma, 700 35,342,300 50,373,000 --I ---------,- -- ----_.- ------.--- ----_.- United StatI'S _ Alllbama _ AriZOll9o _ Arkansas .._._ CaliCarllia _ Colorado . _ ConnecticuL. . ," _ Delaware . _ District of Columbia... Florida . . __ . . Georgia _ Idaho... .. _ Illinois . _. _. _ Indiana. • _ !OWfL.• ,. _ Knnsas~__ Kentucky _ Louisiana Maine. , _ Maryland. .Massae1mS8tts... Michigan . Minnesota,, . ~;~~S~~r!~~~~~~~_ MantamL. Nebraska, _••.•• 0 •••_"•••••••• ••••• ••••••__ •••••__ ••• Nevarla . .,_ _ _ Now Hampshiro____ _ _ New Jersey _ _ ,_ _ _ New Mexioo _ New York,_ North Carolina _ Nortll Dakota_ Ohio _ Oklahoma OreRoll _ Pennsylvania . Rhode Island _ South Caro]jn3. _ South Dakota _ Tennessee_~_ Texas. _ utah _ VermonL __ VirRinia . WaShin~tC!n~. . _ West Vn-g-iUJa _ Wisoonsin _ Wyoming _ State Land Line Telegraph Annual reports containing financial and statistical data for the ('alendar year 1953 were received from 10 domestic and international telegraph carriers. The accompanying table sets forth financial and operating data relating to the domestic land-line operations of the 'Western Union Telegraph Co. for the calendar year 1953 as compared to 1952. The data pertaining to its cable operations are included ill a later table relating to ocean-cable carriers. 60 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The Western Union Telegraph Co. I twm Investment In plant and equipment (as of Dec. 31). • __ Denreciation and amortization re<>.erV6S. • __ • _ Net investment tn plant and equlpment _ Message revenues •• . _ Total operating revenues _ Operating expenses, depreciation and other operaUng revenue deductlons__ • •~• _ Net operatlllJ!: revenues.. _ Provision for Fed<'rallncome taxes ._ i;f~I~~~~ed~t::~~~t!~~====:::::::::::::::::::::::=======:=:::= Numher of revenue mpssages handled 1 _ Number of employees at end of October~_.~~_~_~_ Total compensatIon for the year_~_. __ ••_._•••_. _ 1952 $286,371,865 $126,579,820 $159,792,045 $153, 086, 977 $184,336,414 $183,394,757 $941,657 a(;~::::) $3,688,959 159,735,155 39,853 $126,974,301 1953 $289, 448, 249 $128,776,085 $160,672,164 $174,649,515 $WiI, 578, 008 $193,81:\3,321 $14,714,687 31$9,417,000 $il,785,Il7 $.1,690,143 162,187,632 38,957 $139,488,909 Percent of increase or (decrease) 1.07 1.74 0.55 1<09 13.15 5.71 (.) (.) (') 0.03 1.54 (2.25) 9.86 I Represents data for land-lines operations. FIgures covering cable operations are tncluded in the tab16 below relating to ooean-eable carriers. 2 Not comparahle. • Represents the provision for Federal Income taxes on the net Income of the company as a whole. Al though applicable to both wire-telegraph and ooean-cable systems, this amount has not been allocated to such systems by the carrif'r in Its records. I Includes $2,217,000 allocated as Federaliilcome tax on net capital gains from sale of Investments In sub- sldiary companies. 3 Includes domestic transmission of transoceanic and marino messages (about 8,620,000 in 1952 and about 8,438,000 In 1953). Radiotelegraph and Ocean-Cable Carriers There are shown in the accompanying tables the principal financial and operating statistics selected from the annual reports filed by the United States radiotelegraph and cable carriers furnishing interna tional communications services. These tables compare the figures for the calender year 1953 to those for the previous year. Radiotelegraph carriers twm Investment in plant and equipment (as of Dec. 31) Depreciation and amortization reserves__ • _ Nct investment in plant and equlpment_ _. _ Message revenues: Domestic 1. • • • _ Transoceanic . _ Marine~. _ 'l'otal operating revenues_. . _ Operating expenses, depreciation and other operating revenue deductions . . . _ Netoperatingrevenues _ Provision for Federal income taxes__________ _ _ Net income . . . _ Dividends dcclarod • . _ Number of revenue messages handled: Domestic l ._._._. . ----- Transoceanic~.~_ Marine _ Number of employees at end of October__ _ _ Total compensation for the year_~~_ I Percent of 1952 1953 increase or (decrease) I $37, 930, 604 $39, 129, 876 3.16 $16,966,280 $17,705,958 4.36 $20,964,324 $21,423,918 U9 $1,830,805 $1, Sti7, 041 1.43 $21,599,495 $21,235,725 fl.og$1,529,491 $1,528,362 0.0 $30,582,922 $30,237,680 (1.13 $26, 563, 787 $27,309,420 2.81 $4,019,135 $2,928,260 (27.14) $2,434,413 $2,780,734 14.23 $2,314,586 $2,477,000 7.02 $503,000 $400,000 (20.48) 57,706 49,421 (14.36) 10,956,947 10,712,257 (2.23) 1,039, H81 964,824 (7.20) 5,949 6,008 .99 $22, 295, 352 $23, 468, 678 5.26 1Includes revenues from the domestic transmission of transoceanic and marine messages, and revenues from domestic classification messages (primarily Canadian and .Mexican). I Represents domestlcclassificatioa messages (primarily Canadian and Mexican). REPORT OF THE FEDERALCO~CATIONSCO~SSION61 Ocean-cable carriers (including cable operations ojthe Western Union Telegraph Co.) 1952 ,.53 Percent of increase or (decrease) .... 3.01 3.66 10. rt1 3.41 1.Il6 '.00 (11.92) 7.78 9.13 9O,14a 9,926,457 6,678 $14, 038, 368 81,89'i 9,500,431 5,591 $13,769,322 Investment in plant and equipment (ss of Dec. 31) __ • ._••~._$89,170.714 $92,038,046 Depreciation snd amortizationreserves~•••__ •~__$SSt 957, 080 $57, Ml, 611 Net Investment in plant aud equipmenL~_._______________$33,213,634 $34,300,428 Message revenues; Domestic 1 ••• ••• ._. $182,616 $160.863 Transoceanic ••• ._. $19,773,917 $21,312,199 Total operating revenuf'.-S -__ •••• ••• ofZl, 022, 455 $29,488, 941 Operating expenses, depreciation and other operating revenue deducUons • •••__ ._••~.~••~__$24,99.1,651 $25,907,756 3. 66 Net operating revenues ••_.~••••••_.~__$2, 028, 80f $3,58],185 76.52 Provlslon for Federal Income taxes~_••••••~_••~...._•••_ $70, 000 __ •••_.~~._. ~1;I~e~~edc~iRnKC:==: == :=== ::==:== =:= :== :=== :======:==::=::==~:~~~~~.__.~::~~~:~.._:~_~~. N umber of revenue messages handled; Domestic t_~._..~_._~•••••_._. __ .~_~•••.•~.__ • _.__ Transoceanlc__ .••__ • ..__ .._.._•••••••••__ ..~•••••_._.~_. Number of employees at end of October .._~_~••.•_. __ . __.~__ Total compensation (or tbe year. __ ._._.__••_••._.._.•.~_._~•••_ I Includes revenues from the domestic transmlssion of transoceanic messages, and revenues from domestlo classification messages (primarily Canadian). I Represents domestic classification messages (primarily Canadian). Internatianal Telegraph Traffic According to the carriers' reports with respect to international telegraph message volume, a total of 511,256,493 paid words were transmitted out of or received in the United States during the calendar year 1953 by the international cable and radiotelegraph carriers. Of this total, 257,724,393 paid words were handled in the outbound direc tion, and 253,532,100 paid words were handled in the inbound direc tion. The cable carriers ""counted for 243,749,717 paid words, or 47.7 percent of the total volume, while the radiotelegraph carriers handled 267,506,776 paid words, or 52.3 percent of the total volume. The number of telegraph words exchanged between the United States and each of the principal countries of the world during calendar 1953 is shown in the following tabulation: United States-international telegraph (radio and cable) traffic in words, 1953 (in. eludes traffic transiting the United States) Number of words Number of words Country Outbound Inbound Country Outbound Inbound from the to tbe from the to the United United United United States States States States BUROPE, AFRICA, AND EUROPB, AFRICA AND THE NEAR EAST 'IDE NBAR BAS'I'--, 649 263,847 2 2755~6 3; 944: 234 895,673 137,919 757,176 1,880,407 6,719,497 2\)7,577 IS.'i,358 ASIA AND OCEANIA WEST INDIES; CENTRAL, NORTH, AND SOUTH AMERICA--COD. Jamaica _ Mcxi(l(L _ Netherlands West Indies__ Nicaragua__ .. _ Other llritish West Indies 1 _ Panama _ Paraguay~_ Pcru._ ....._ Puerto RiCtL . Salvador . _ Suz'inam __ • _ Trinidad _ Uruguay. _ Venezucla_ _ _ Virgin Islands _ All other places _ TotaL Unknown destination or origin . Ii89,853 83,770 91,344 571;.488 400,42,'; 5,805,482 1,857,830 460,996 531.412 826,863 126,833 108,277 1,809,576 2,663,3i55 4,585.840 174,514 238,973 153,814 995,423 2,359,618 1,894.215 46,927,189 1,132,270 1,849,705 6,313,341 912,450 Hi4,862 1,302.540 738, (,69 10,446,054 247, fl.'i7 110, H57 10,797,326 UIiO, 1'>02 2, ,'i08, 942 5,088,895 765,371 8,380,534 1,128,447 865,934 1,286,892 760,831 741,474 5, 178, 414 770.067 :l'34.238 1,005.462 623,306 9, t158, 228 1&'l,OIl 114,109 8,447,705 749,913 2,303,124 5,377,009 844,3-..112 6,767,601 1,198,265 1,340,1:l4 1,228,903 801,050 783,227 479, ]44 111.451 122,818 627,490 467,624 ti, 786, 656 2,699,135 388,942 923,521 1,420,836 110,977 145,544 3,375,638 3,234,846 6,695,32.', 220,556 325,207 18t.166 1,156,068 2,256,801 4,887,619 47,694,000 1.099.338 1,034,028 EUROPE, AYRICA, ANO THE~EAREAST--eOll. Ltberla.~_ Llbys~v • _ Luxembourg. __ . • _ Morocco-French. _ Morocco---Tangief ._ Netherlands _ Norway.~.• __ Persian GulL_•• _ Poland • _ PortugaL. _ Rhodesia. __ • ••_. _ Rumania _ Bpain _ Sweden. _ Switzerland _ Syria _ Tmmjordania _ Trieste, Free 'rerrltory of.. Turkey _ Union of South Afrlca _ U. S. S. R _ United Kingdom _ Yugoslavla _ All other placcs _ WEST INDIES; CENTRAl" NOltTH, AND SOUTII AMERICA Argentina . _ Bahama.! . _ Barbados _ Bermuda___ _ _ Bolivia _ BraziL _ Britisb Ouiana _ Britisb IIonduras _ Canw:la _ Canal Zone _ Chile _ Colombia _ Costa Rica _ Cuba .. _ Dominican Hcpublic _ Ecuador • _ Guatemala • . __ Haiti _ Honduras Republic _ I Pointsnot listed separately. Commoh Carrier Radio Facilities At the close of the fiscal year there were 1,635 authorizations in the common carrier radio services; namely, 610 domestic pnblic land mobile, 39 fixed public telegraph, 24 fixed public telephone, and 962 experimental. . Common Carrier Applications During the year, common carriers filed 4,168 applications (ex clusive of Alaskan and marine mobile). They were in the following categories : REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 63 Pending Disposed Pending June 30, • Received of June 30, 1953 1954 " 694 695 74 0 2 2 0 10 127 127 10 0 2 2 0 54 259 297 26 0 41 41 0 139 1,135 1,164 110 3 209 212 0 2 43 43 • 1 6 , • 23. 1,211 I,JZ1 I" 231 1,469 1,589 III • 20 19 1 • 3 3 • • • • • 3 2 4 1 " 1,53< 1,521 84 49 1,564 1,547 66 419 4,168 4,300 287 PUBLIC RADIO COMMUNICATION Domestic public land mobfIe _ Fixed public telephone (domestic)••• _ Fixed public relephone (international) _ Fixed public telegraph (domestic) _ Fixed public telegraph (international) _ Canadian registration I I 1 1 _ SubtotaL __ . ._. . WIRE COMMUNICATION Telephone extension5_.__~. _ Telegraph extensions . _ Telephone reductions ._. _ Telegraph reductions_•• • _ 1_------'=---I__=:..I_~c.:..:..I__"_' Subtotal···· __ ·· · ·_·I~=~~I~~~~"I~~~;;;;"I~~~= Interlocking directorates_" ..~.. _ Jurisdictional d!ltprmination .~~_ Submarine cable landing Iicenses .. _ Petitions or motions (nondockot)••• _ Experimental common carrier•• _ SubtotaL _. .~__ TotaL . _ [ Page 64 in the original document is intentionally blank 1 Safety and Special Radio Services fl••• for the purpose 01 promoting lJafetyof life and property th,rough the U8e 01 wire and radio communicatiOn"· ••"-(8eo. 1 of the Communications Act). "•• * URd generally encourage the la'rger and more etrective U86 of radio in the public interest * •• "-,-(8eo. 303 (u) of the Communica·tioll-a Act). GENERAL The Safety and Special Radio Services embrace radio activities necessary for the performance of the Commission's responsibility with respect to the licensing of stations for purposes other than broadcast or common carrier. These nonbroadcast services are almost as varied as they are numerous; They are highly important because their prime responsibility is to safeguard life and property. They are the largest and most active of all radio communication facilities in use today. These services are of the following general classes : 1. Safety serVices.-Marine, Aviation, Police, Fire, Forestry Conservation, Highway Maintenance, Special Emergency, and State Guard. 2. Industrial 8ervices.-Power, Petroleum, Forest Products, Special Industrial, Low-PowerIndustrial, Relay Press, Motion Picture, Agriculture, and Radiolocation-Land.. 3. Land tra1UJportation8ervice8.~Railroad,Motor Carrier (formerly Urban Transit and Intercity Bus), Taxicab, Automo bile Emergency, and Highway Truck. 4. Amateur, disaster communications, and citizens services. This group represents the use of radio by ships afloat and by planes in the air; by police and fire departments; by electric and gas com panies; by highway and forestry agencies; by railroad and streetcar systems; by ambulances, taxicabs, trucks, and buses; and by a host of other interests, including geologists, newspaper reporters, fisher men, lumber jacks, motion-picture directors, manufacturers, distribu tors, and individuals. In brief, the Safety and Special Radio Services embrace practically every radio usage which is neither broadcasting nor, for the most part, open for hire to the general public. 65 66 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The number of authorizations in these services now exceeds 262,000, representing the use of nearly 653,000 fixed and mobile trans mitters. Since common use must be made of the relatively few available frequencies in the Safety and Special Radio Services, licensing and regulatory problems become more complex as additional trans mitters are permitted to operate. This requires a high level of com pliance with regulations governing operation of these stations which, in turn, places increased importance on the functions of enforcement nationally. MARINE RADIO SERVICES There are now more than 46,000 authorizations in the Marine Radio Services, representing eight classes of stations using radio for water navigational and other communication purposes. Safety at Sea Basic radio laws governing marine safety are contained in (1) the International Convention for the Safety of Life at Selt, (2) Title III, Part II of the Communications Act, and (3) the Ship Act of 1910, as amended. These laws require the installation of radio equipment, and provide for qualified radio operators and other safety features. They apply, respectively, to (1) certain classes of ships engaged on international voyages and registered in countries signatory to the Safety Convention, (2) certain classes of United States vessels when navigated on the high seas (approxi mately 1,600 ships), and (3) a few vessels on the Great Lakes. In addition, vessels of countries not parties to the convention are sub iect to the Communications Act when leaving United States ports. The International Oonventionfo~the Safety of Life at Sea, ne gotiated in London in 1948, became effective November 19, 1952. Several rule changes were made during the past year to implement its requirements. On June 2, 1954, the Commission adopted a rule which will permit existing cargo ships to carry a spare antenna in lieu of an emergency antenna. On September 23, 1953, the Com mission clarified the circumstances under which shipboard interior communication systems provide contact between navigation per sonnel and the radio room. In cooperation with shipping inter ests, an acceptable procedure for the anuual checking of calibration of directiou finders by shipboard personnel was developed. Under the Safety Couvention and Coast Guard regulations, most passenger ships are required to carry both portable and nonportahle lifeboat radio equipment, and cargo ships must carry portable life boat radio equipment meeting Commission specifications. Most REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 67 United States seagoing vessels have portable lifeboat radio equip ment of types approved by the Commission. On June 23, 1954, the Commission modified its rules to permit continued use of existing installations of nonportable lifeboat radio equipment on passenger ships carrying less than 14 lifeboats until June 1, 1955. However, two new types of lifeboat nonport able radio equipment developed by the electronics industry in ac cordance with the Commission's rules have been type approved by the Commission. Powered entirely from storage batteries, these transmitters can be used by persons unfamiliar with radio commu nication. A built-in keyer provides for automatic transmission of the international distress and auto-alarm signals on 500 kilocycles and the international distress signal and a long dash for direction finding purposes on 8364 kilocycles. In addition, the new trans mitters give added distance range on both frequencies. Title III, Part II, of the OO'l11J1nunications Act.-On June 15, 1954, the Senate passed a bill (S. 2453) to implement the radio provisions of the Safety Convention. Consisting primarily of amendments to Title III, Part II, it was based on recommendations of the Commis sion designed to eliminate inconsistencies between the act and the convention and to facilitate administration of both laws. (It was adopted August 3, 1954.) Great Lakes Agreement amd Ship Act of 1910.-0n May 17, 1954, a bill (S. 3464) to amend the Communications Act to make certain provisions for carrying out the Agreement for the Promotion of Safety on the Great Lakes by Means of Radio was introduced. The Great Lakes. Agreement will come into force on November 13, 1954. Under its terms, a radiotelephone safety system is provided for sev eral hundred vessels navigating the Great Lakes. The bill embodies recommendations of the Commission to repeal the Ship Act of 1910, which provides a radiotelegraph safety system now applying to only a few Great Lakes ships, as well as certain provisions to facilitate administration of the Great Lakes Agreement. (It, too, was adopted Augnst 3,1954.) The Commission on June 10, 1954, proposed rules to implement the Great Lakes Agreement and, at the year end, was preparing for the inspections and certifications of ships' radio installations re quired by this treaty with Canada. Ewemptions from compulsory safety requirements.-The Com mission is authorized by the Safety Convention and the Communica tions Act to, within prescribed limits, grant exemptions from ship radio installation requirements to certain vessels or classes of ves sels. Under this authority it renewed blanket exemptions for 1 year to all passenger vessels of 15 gross tons and under when navigated 68 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION not more than.20 nautical miles from the nearest land; to all passen ger vessels of less than 100 gross tons when navigated within certain areas along the coast; and to a number of individual vessels, most of which were to cover a single voyage. Individual applications for exemption received during the year numbered 37, of which 23 were granted, the rest being included in existing blanket exemptions. Additionally, 6 passenger-ferry ves sels were exempted from the radio requirements of the Safety Con vention while engaged on short voyages on inland waters of the west coast between the United States and Canada. . Di8tre88 8t'tdie8.-Studies of distress communication are used to strengthen the Commission's rules to promote use of marine radio for safety of life and property. Among other matters, these studies showed that the international radiotelegraph distress signal (S 0 S) was used throughout the world 150 times during the year. This was by or on behalf of 93 foreign ships, 25 United States ships, 24 foreign aircraft, and 8 United States aircraft. An outstanding instance was when this signal brought about speedy rescue of many persons on the British troopship Empire Wiltd''U8h which caught fire and sank in the Mediterranean. A telegraph alarm signal, transmitted before or in connection with a radiotelegraph distress signal, actuates auto alarms on vessels not maintaining continuous listening watch (generally cargo ships carry ing only one operator), thus alerting the operator to receive the dis tress message. The effectiveness of this device was demonstrated in numerous cases during the year. One such alarm signal flashed by a coast station at Berm]lda alerted 60 ships and resulted in rescue of the majority of the crew members of a United States Army B-29 aircraft which had been forced down in the open sea. Detailed study was made of nine major ship collisions occurring in the Delaware River area during the years 1951 through 1953, which cost 27 lives and property loss of approximately 18 mi11ion dollars. The study indicated a need for ship-to-ship voice communication for navigational purposes in inland waters to guard against such circum· stances. Radiotelephone calling altd di8tre88 frequency.-As concluding steps in establishing 2182 kilocycles as a universal radiotelephone call ing and distress frequency, ship stations using the medium frequency radiotelephone band 1600 to 3500 kilocycles were required as of J an uary 1, 1954, to maintain a listening watch during their hours of serv ice on the frequency 2182 kilocycles. Coast stations were similarly re quired to keep such listening watch commencing July 1, 1954. Ships equipped with radiotelegraph and required to maintain a radiotele graph listening watch on 500 kilocycles were excepted from this requirement. I\EPORT OF TH;E FEDERAL COMMUNICATIONS COMMISSION, 69- At its seventh plenary assembly meeting in London, 1953, the Inter national Radio Consultative Committee (CCIR) recommended an alarm signal for international use on the maritime radiotelephony dis tress frequently 2182 kilocycles and also set forth the conditions which automatic devices intended for reception of the alarm signal should fulfill..This concludes the CCIR study program involving practical tests by interested nations to determine a suitable worldwide radiotelephone alarm signal. Radio Aids to Navigation Shore-based radar stations are being developed to assist the piloting' of ships entering, leaving, or mooring within harbors. Since the Coast Guard has the responsibility of providing and supervising pub lic aids to marine navigation, the establishment of these private aids is effected only with its concurrence. Very high frequency maritime radiotelephone systems are being used developmentally by such radar stations. Authorizations were renewed for operation on a developmental basis of shore-based radar stations in the harbors of Long Beach, Los Ange les, and San Francisco, Calif. Two developmental shore radar sta- ' tions were also authorized for use in the Gulf of Mexico for the navi gation of vessels in connection with offshore oil-well-drilling opera-, tions. As of June 30, 1954, more than 2,400 United States ships were authorized to use radar. General Marine Radio Communication Systems Two-way radiotelegraph or radiotelephone communication between coast stations and ship stations and between ship stations accounts for the great bulk of frequency utilization in the maritime mobile serv ice. This communication may be for public, business, or ship opera tional purposes. Frequencies involved range widely throughout the radio spectrum covering service over distances of a few miles up to several thousands of miles. Thus, these stations may be in overlapping categories. However, the following figures (as of June 30, 1954) re flect the more important categories: Utilizing frequencies in. the 2-3 megacycle band-for telephony: Public coasL___________________________________________________ 45 Limited coast -________________________________ 3 Ship 41,020 Utilizing very high frequencies for telephony: Public coast____________________________________________________ 26 Limited coast___________________________________________________ 98 Public sbip .!______________ 1,333 Limited ship____________________________________________________ 925 70 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Utilizing- high frequencies for long distance telephony: Public coast____________________________________________________ 5 UtiliZing 'VOriOU8 frequencies for telegraphy: Public eoast____________________________________________________ 28 One of the most significant factors affecting maritime stations has heen the implementation of the Atlantic City table of frequency allo cations below 27 megacycles. The substantial progress made in this matter during the fiscal year 1953 was continued during fiscal 1954. Thus, during 1954, the use of the high frequency ship telegraph call ing bands was inaugurated. Regulatory steps were completed for inaugurating, beginning July 1, 1954, the implementation of the new cargo-ship high frequency telegraph working bands and discontin uance of the old Cairo working frequencies by January 1, 1955. Plans were completed for bringing into force during the early part of calendar year 1955 the new passenger-ship high frequency radiotele graph working bands. Also, during fiscal 1954, the plan heretofore adopted for assignment or high frequencies to coast telegraph sta tions was almost completely effectuated. Additionally, plans for as signment of high frequency radiotelephone frequencies to coast and ship stations in the Great Lakes and Mississippi River areas were put into effect. Assignment of high frequency radiotelephone fre quencies in the ocean areas continued to be made as new frequencies became available. Rulemaking was finalized for revision of 2-megacycle radiotelephone frequencies proposed during the year. Since finalization, some of these frequencies have been cleared and made available and considerable re lief to marine congestion in this band is anticipated. In addition to frequency assignment changes, various steps were taken by the Commission looking toward improvement of maritime mobile radio equipment so as to promote more efficient usage of rre quencies. Some primary examples of these efforts are: 1. Proposed application of type acceptance procedures so that standards of performance for marine radio equipment will be uniformly and effectively applied. 2. Proposed establishment of definite standards for attenua tion of harmonic emission and application of a certification re quirement before a ship station is permitted to operate on the frequency 2738 kilocycles. 3. Proposed establishment of minimum transmitter power in puts for radiotelephone equipment below 25 megacycles and requirement of effective grounding systems ror such installations. 4. Application as of January 1, 1955, of new and closer fre quency tolerances to all ship stations operating on frequencies below 25 megacycles. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 71 Maritime Fixed Services Stations in the maritime fixed service are classed as marine fixed, Inarine control, marine repeater, marine relay, and receiver test stations. Approximately 60 marine fixed stations communicate on ship radio telephone frequencies, being normally located in coastal waters, and are authorized to communicate with public coast stations primarily for safety purposes. This class of station is intended to meet the com munication needs of the petroleum industry in offshore oil-well-drill ing operations. One mal'ine control and one marine repeater stations are authorized; Operation of these stations is in the 72-76-megacycle band and they function in connection with the operation ofcoast stations. Seven marine receiver test stations are licensed. They operate on certain ship frequencies to test remote receivers associated with public coast stations. Alaska Fixed Public and Maritime Mobile Services Alaskan communities depend largely on radiotelephone and radio telegraph communication for safety and business purposes because of the scarcity of wire line facilities. Special frequencies are allocated for communication between communities in Alaska, between communi ties and the Alaska Communication System (ACS), and between coast and ship stations. The main intra-Alaska communication trunklines are operated by ACS under the Department of National Defense. The ACS routes message traffic to all parts of the world. The Commission maintains liaison with it in coordinating communications facilities in Alaska to serve thepublicintel'est. Plans were completed during the latter part of fiscal 1954 for an on the-spot survey of Alaskan stations and informal conferences with Alaskan licensees. It is hoped that the facts so gathered will furnish the groundwork for improving Alaskan radio communication and aiding regulation by the Commission. At the close of the fiscal year there were, exclusive of Government stations, 495 point-to-point telephone stations, and 67 point-to-point telegraph sbltions operating in Alaska. In addition, 10 public coast stations employing telegraphy and 391 public coast stations employing telephony are authorized. Radio Technical Commission for Marine Services The Commission continued its partieipation in the activities of the Radio Technical Commission for Marine Services (RTCM). It is through its special committees that this Govermnent-industry organi zation comes to grips with the current problems of marine telecom- 318372-54--6 72 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION munications. Following is a brief report of its committee activities: Special Committee 16, studying the marine identification problem, has not concluded its work. This problem has been raised to the inter national level and will be studied by the International Radio Consul tative Committee (CCIR). The RTCM will probably be the medium selected to carry out the CCIR study in this country. Special Committee 17, established at the request of the Commission, prepared technical specifications covering new lifeboat radio equip ment required by the Safety Convention. Its final project was the drafting of technical specifications for compulsory 2-megacycle radiotelephone equipment for installation where required by that convention. Special Committee 18 was established at the request of the Com mission to study and make recommendations with respect to a stand ardized method of identifying marine radiotelephone channels for geographic areas. Although the work of the committee has been concluded, no recommendations will be made by the RTCM until the findings have been coordinated with Canada. Special Committee 19 is continuing its study of a reliable short range radiotelephone system for communication from ship to ship and ship to shore. Special Committee 21 concluded its study of the marine radio beacon direction-finding system and its recommendations were transmitted to various Government departments as well as to industry. Special Committee 22 was established at the request of the Commis sion to study the problem of whether provision should be made to set up worldwide common working frequencies in the 2-megacycle band preparatory to the United States ruling on this question at the next Administrative Radio Conference. Special Committee 23 was established because certain Government agencies, particularly the Coast Guard and the Navy, have anticipated a need for coast station transmission on 8364 kilocycles in particular emergency situations and the RTCM was asked for its recommenda tions on this subject. Special Committee 25 was created to study shipboard radiotelephone equipment and, in cooperation with Radio-Electronics-Television Manufacturers Association (RETMA), to draw up suitable standards. The RTCM collaborated with the RTCA (its sister organization for aeronautics) in a study of the operational objectives for long distance navigation aids by snpplying the marine requirements for inclusion in the report, which was utilized as a reoommended position for the United States delegation to an ICAO meeting in Montreal. REPOllT OF THE FEDEllAL COMMUNICATIONS COMMISSION 73 AVIATION SERVICES The Aviation Services provide the radio communication which is vital in connection with the operation of aircraft, both from the stand· point of safety of life and property as well as for efficient, expeditious, and economical operation. The more than 40,000 authorizations in these services cover navigational aids, traffic control operations, approach and instrument landing systems, special devices such as radio altimeters, all involving the use of radio. .Aviation Organizations and Conferences During fiscal 1954 the Commission met with various coordinating and policy groups, both on a domestic and international scale, to solve the many new problems which are occurring as a result of telecom· munications developments. The most important of these groups are the Air Coordinating Committee (ACC), the Radio Technical Com· mission for Aeronautics (RTCA), and the International Civil Aviation Organization (ICAO). A major and continuing function of the Commission is participation in the work of the Air Coordinating Committee. The ACC recom mends proposed United States policy on aviation to the President, and acts as a vehicle for coordinating aviation matters between Government and industry. The Commission is active in the ACC through its membership on the Technical Division and the following subcommittees of that division: Aeronautical Communications and Electronic Aids; Air Space-Rules of the Air and Air Traffic Control; Search and Rescue; Airmen Qualifications; and Aerodrome, Air Route, and Ground Aids. In addition, the Commission is represented on the Air Traffic Con· trol and Navigational Panel. This panel was established on the recommendation of the Congressional Aviation Policy Board and the President's Air Policy Commission for the purpose of guiding the program relating to all-weather air navigation and traffic control facilities as well as the national air-defense system. The Radio Technical Commission for Aeronautics is a coopera· tive association of Government-industry aeronautical telecommunica4 tion agencies. It conducts studies for tho purpose of providing guidance to, and coordinating the efforts of, the organizations con cerned. The Commission is represented on the executive committee and special technical committees. During the past year the RTCA fltudied and made recommenda· tions on such problems as (1) implementation of the VHF utilization plan and review of transition period communication requirements; (2) high altitude grid plan for VOR/DME frequency pairing; (3) .minimum performance standards for airborne electronic equipment 74 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION for the transition period common system; (4) VOR and localizer test equipment adjustment standards; (5) amended program for imple mentation of the common system of air navigation traffic control; (6) evaluation of the necessity for VOR test signals; (7) reevaluation of VOR airways lateral separation procedures; (8) helicopter air navigation communication and traffic control; (9) radar safety beacons; (10) possible interference to aeronautical radio facilities from TV operation in the UHF band; (11) remoting of long-range radar displays; and (12) control of airport lighting by aircraft radio. The Extraordinary Administrative Radio Conference (EARC) of the International Telecommunication Union (ITU) Geneva, 1951, concluded an agreement which allocated exclusive frequencies for the Aeronautical Mobile Route (R) service. Since then the Commis sion has cooperated, domestically and internationally, in aeronautical frequency planning to implement the provisions of the agreement. This work included participation in ICAO meetings and, in addition, the Commission assisted in the preparation for and participated in the United States-Mexican discussion regarding frequency assign-' ment problems which wo.s held in Mexico City, and participated in the Ottawa meeting of the United States-Canadian officials concerning implementation of the agreement. The International Civil Aviation Organization (ICAO) was es tablished to develop standards and recommend practices for interna tional civil aviation through the process of regional and divisional agreements among the nations of the world. During the year the Commission assisted in the preparation of the United States position and participated in the fifth session of the Communication Division of the ICAO held in Montreal, and in the Special Middle East Commu nication Meeting of the ICAO, held on the Island of Rhodes, and helped prepare for the Second African-Indian Ocean Regional Air Navigation meeting at Santa Cruz. Aircraft Radio Stations As of June 30, 1954, there were nearly 2,300 authorized aircarrier aircraft, and nearly 26,000 private aircraft radio stations. Aeronautical En Route and Aeronautical Fixed Radio Stations These stations, of which nearly 1,400 are authorized, furnish a non Government radio communication service necessary for the safe, ex peditious, and economical operation of aircraft. Aeronautical land stations are used to communicate with aircraft, whereas aeronautical fixed stations are employed for point-to-point communications. The Civil Air Regulations require domestic air carriers to main tain radiotelephone facilities at terminals and at such other points REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 75 as may be deemed necessary by the Government to insure a satisfac tory two-way ground-air communication service over the entire air craft route. Aeronautical fixed stations are used primarily in international op erations and in Alaska, and provide the primary point-to-point com munication service. Civil Air Patrol Radio Stations These stations are used in connection with Civil Air Patrol activi ties and emergencies pertaining to the protection of life and property. Air shows, missing-aircraft search missions, training missions, and communication systems at encampments; bases and meetings are ex amples of their services. There are approximately 9,400 authorized fixed and mobile CAP radio stations. Airdrome Control Stations These stations are used for transmitting nece.'3Sary control instruc tions to aircraft arriving at and departing from airports. Such control is necessary so as to maintain safe separation of aircraft to prevent collision and to govern the flow of air traffic into and out of airports. They may also communicate with aeronautical mobile util ity stations installed aboard vehicles essential to the operation of an airport. Though, for the most part, operated by the Federal Govern ment, nearly 50 snch stations are licensed by the Commission. Aeronautical Mobile Utility Stations This type of facility is installed aboard ground vehicles used in the operation of an airport, and provides communication between such vehicles and the airdrome control tower and aircraft on the ground. One hundred and twenty-five stations of this type are licensed by the Commission. Aeronautical Navigational Aid Radio Stations These stations are used to transmit special radio signals to assist an aircraft in determining its position with reference to the naviga tional facility involved. Included are radio beacons, radio direction finders, radio ranges, localizers, glide paths, marker beacons, and gronnd-control-approach stations. This service, for the most part, is "perated by the Federal Government; however, over 250 such stations hold Commission licenses. flying School Radio Stations Aircraft and ground flying school radio stations are used to trans mit instructions to students or pilots while operating aircraft in flight. There are now 11 ground stations of this type. 76 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Flight Test Radio Stations Aircraft and ground flight test radio stations transmit communi cations essential to the testing of aircraft or major components of aircraft. More than 130 stations are nsed for this purpose. Aeronautical Advisory Radio Stations These stations are authorized for landing areas not served by an airdrome control station. They are used to provide an advisory communication service limited to the necessities of safe and expedi tious operation of aircraft pertaining to the condition of runways, types of fuel available, wind conditions, available weather informa tion, or other information necessary for aircraft operations. Such stations may also communicate with private aircraft engaged in organized civil-defense activities in event of enemy attack and be used on a secondary basis to provide communication with privat6 aircraft engaged in organized civil-defense activities. There are over 400 licensed stations of this type. ·Aeronautlcal Public Service Radio Stations Nearly 300 aircraft p!lblic service radio stations handle public correspondenc6 between private individuals aboard aircraft in flight and persons on the ground. Th6 aeronautical public service station connects with the nationwide land-line telephone system through the facilities of public coast stations. PUBLIC SAFETY RADIO SERVICES The Public Safety Radio Services comprise the Police, Fire, For estry-Conservation, Highway Maintenance, Special Emergency, and State Guard Radio Services. Collectively, authorizations in these services are approaching 16,000, representing the use of nearly 165,ooft transmitters. In discharging its responsibilities to these vital services for public protection, the Commission has been assisted immeasurably by the cooperation of various committees such as the Associated Police Com munication Officers, Inc.; the International Municipal Signal Asso ciation; and dozens of frequency advisory committees which serve their respective areas and services. The members of these commit tees give unsparingly of their time and their specialized knowledge with no compensation except the satisfaction which acc.rues from the resulting mutual benefits. In keeping with past practice, the Commission has assigned repre sentatives and speakers to the national meetings of these groups to REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 77 discuss ways and means to increase the utility of radio in connection with their particular services. Rules Governing the Public Safety Radio Services (part 10) were rep.rinted this year to incorporate all the amendments adopted since the original printing in 1949. Copies can be purchased from too Superintendent of Documents, Government Priuting Office. Police Radio Service Licenses in the Police Radio Service are issued only to law enforetl ment agencies of States, Territories, possessions, and towns, cities, counties, and other governmental agencies. Private or company police departments are not eligible to hold licenses in this service. Police radio authorizations total nearly 8,800 covering an esti mated 108,000 transmitters. Under the Commission's simplified license procedure, one license usually covers the base station and asso ciated mobile and packsets. Police stations use radiotelephone for base station to mobile sta tion communication. Zone and interzone radiotelegraph networks eifect reg.ional and nationwide communication coverage. Radio keeps police units in almost instantaneons contact and speeds dispatching of assistance. There have been occasions when radio patrol cars were within less than a block of the scene of the crimes and were able to quickly apprehend the criminals. A relatively new use of radio by police departments affects the motoring public. More and more signs along the highways warn that the speed of automobiles is being checked by radar. This can be done So quickly and without the knowledge of the motorist that the speeder is no longer alerted by his rearview mirror showing a police car pacing him. The speed of traffic invariably slows down after a radar traffic control is set up. Police departments are also experimeuting with closed-circuit television pickup in several areas in connection with suspect "lineups" and other operations. Fire Radio Service Eligibility requirements for the Fire Radio Service are the same as for the Police Radio Service except that persons and organizatioll& such as volunteer fire departments may obtain a license upon a show ing that they are responsible to local governments for maintaining a firefighting facility. While many fire departments, especially those in the smaller communities, still receive service from police radio, the trend is for separate fire radio facilities. The larger communi ties have separated their police aad fire radio systems for quicker and more effi<:ient operation. 78 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The usual fire radio system consists of a combination of base, mo bile, and pack or "handie-talkie" radio sets. Lightweight portable sets are carried by firemen into the burning building so that communi cation can be maintained with the mobile station nearby. 'Where see onds count and danger is great, the ability to integrate the different elements of a firefighter group by radio is of immeasurable assistance. The number of fire radio stations increased to more than 1,600, with over 22,200 transmitters. Forestry-Conservation Radio Service The Forestry-Conservation Radio Service is used in forest areas to facilitate the work of detection and suppression of forest fires. The fire towers scattered throughout the forests are equipped with radio to enable forest rangers to communicate with headquarters. Many States use radio-equipped aircraft to carry men aud material to the scene of a nre. The mell and equipment, including a lightweight radio set, are dropped in the vicinity where it is a simple matter to maintain communication between the groups engaged in fighting the blaze.. In lieu of a forest ranger on duty in the fire tower, developmental use of closed-circuit television is being studied.. '''hen perfected, it appears probable that 1 man may perform the detection dnties now performed by 10 men. Operation of forestry-conservation stations is almost exclusively in the hands of State government departments, except for a few pri vate organizations with large timber holdings and in New England where many cities USe such stations to integrate their fire departments with the State forestry firefighting department under a mutual-aid plan. The number of these stations increased to nearly 2,700, with nearly 19,000 transmitters. Highway Maintenance Radio Service Authorizations for stations in the Highway Maintenance Radio Service are issued only to States, Territories, possessions and other governmental subdivisions including counties, cities, towns, and simi lar entities. The use of radio to coordinate the many phases of highway mainte nance work not only greatly enhances the safety of the motoring public but also, through more efficient use of men and heavy, expen sive roadbuilding equipment, reduces costs considerably. This service has nearly 1,100 authorizations with 10,000 trans mitters. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 79 Special Emergency Radio Service This particular service provides communication facilities for the safety of life and property for diverse groups of persons such as physicians and veterinarians normally practicing in rural areas, am bulance operators and rescue organizations, beach patrols providing a lifesaving service, school-bus operators, persons in isolated areas where public communication facilities are not available, communica tion COmmon carriers desiring to provide standby facilities or make efnergency repair, and disaster relief organizations. Heretofore, the various chapters of the American Red Cross were the only disaster relief organizations seeking special emergency radio station licenses. Now there is a tremendous growth in the use of these stations by governmental subdivisions to provide civil-defense communication facilities. In the past 2 )'ears the Special Emergency Radio Service has grown from 670 to nearly 1,500 stations with about 5,400 transmitters. State Guard Radio Service This service was established to meet the radio communication re quirements of State semimilitary organizations established to assume the duties normally performed by the National Guard during such times as the latter may be on active duty. There are about 140 sta tions with over 300 transmitters. DISASTER COMMUNICATIONS SERVICE The Disaster Communieations Service is designed to provide essen tial communication in connection with disasters or other incidents which involve disruption of regular communication facilities or which require temporary supplemental communication facilities. The fre quency band 1750 to 1800 kilocycles is allocated to this service. Any person eligible to hold a radio station license is eligible for a license in the Disaster Communications Service, provided it is shown that the station will constitute an element of a bona fide communica tions network organized, or to be organized, and operated in accord ance 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 agencies. Wben there is no impending or actual disaster, stations in this serv ice may communicate only with respect to drills and practice sessions and conduct necessary equipment tests. When there is an emergency 01' disaster, they may be used to carry communications necessary 01' essential to relief work, including those concerning personal matters in the case of individuals directly affected. 80 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION A majority of the applications submitted, and disaster communi cations plans filed, has been for use of the stations for civil-defense pnrposes. Nearly 300 disaster commnnications stations are licensed under 25 approved disaster communication plans. They employ nearly 1,500 transmitters. INDUSTRIAL AND LAND TRANSPORTATION RADIO SERVICES The Industrial and Land Transportation Radio Services encompass a wide range of "private" radio users, such as power utility, petroleum, taxicab, railroad, manufacturing, agricultural, forestry, mining, truck ing, urban transit, and intercity bus. The rules governing specific services in this group are designed, and are periodically revised, to meet the unfolding needs of users in relation to the pnblic interest. The large volume of applications filed in these services requires that freqnencies be allocated and that eligibility standards be set on an industrywide basis. Though interference between licensees shar ing the same frequency is somewhat alleviated by coordinating indi vidual frequency assignments with licensee-advisory committees, the Commission finds that the overloading of available channels in some areas is resulting in an increasing number of interference cOlnplaints. In adjusting such complaints, the Commission first endeavors to en list the cooperation of the licensees involved in order to help achieve the maximum equitable utilization of available frequencies. Long-range programs having as their object the improvement of frequency utilization by such means as geographic assignment, reduc tion of channel spacing (split-channel assignments), and allocation of additional spectrunl space to these services, are being considered. These studies will not, however, afford any immediate relief from the problem of VHF band congestion in the mobile service because of the long-term implementation required to carry any particular program into effect. In the private fixed-service field, the Commission, assisted by repre sentatives of both manufacturers and users of equipment, is engaged in a continuing study of private microwave systems with a view to establishing a permanent license policy. This study, participated in by the Radio-Electronics-Television Manufacturers Association (RETMA), deals with the capabilities and technical characteristics of microwave systems employing frequencies above 890 megacycles. Be yond the technical phases of this study are considerations of public policy stemming from the question of whether or not communications common carriers could render equivalent service. Requests for micro wave facilities will, therefore, continue to be handled on a develop mental basis pending completion of this study. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 81 In the 72-76-megacycle fixed band, the Commission has adopted a new policy governing assignment of frequencies which, it is expected, will permit the continued use of this band for nonbroadcast repeater wntml links without causing harmful interference to reception on ltdjacent television channels 4 and 5. In carrying forward the gen eral concept that all operations in the 72-76-megacycle band shall re main subject to the condition that no harmful interference will be (',aused to TV reception, the new criteria establish interference con tours along which the probable effect on TV signals at any location ns are not properly or completely fined out, which can invite considerable correspondence. SOlDe applications are fre- 108 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION quently amended, and this necessitates a restudy in each instance. Some applicants ask for facilities that require special case study and interpretation of the rules. Some applications are contigent upon the grant of other applications, ,thereby involving dual considerations. Other applications are being held up wt the request of the applicant. Engineering, financial, or legal questions often arise in considering applications for renewal of license on the basis of operation during the license period. This can also result in protrac,ted correspondence. In every case where an application cannot be granted, the Commis sion has, since 1952, been required by law to formally advise the appli cant of that fact and to await word from the applicant as to' whether he wants to go to a hearing before the case can be designated for hearing. The reasons for seeming delay in passing upon some broadcast ap plications are many, but they may be grouped in the following majm' categories : Awaiting hearing because of competition with other applications. The law obliges the Commission to make a selection through ,the hear ing process, which must follow a prescribed Federal procedure. Awaiting final decision in hearings in which the hearing record and the subsequent filings and counterfilings can be voluminow; and re quire extensive reading and analyzing. Awaiting decisions in specific rulemaking on general proceedings, the outcome of which will determine whether a particular application can be granted. Awaiting the ratification of an international broadcasting treaty or agreement. Awaiting the outcome of legislation, litigation, bankruptcy pro ceedings and other legal actions. Awaiting receipt of additional information that has been requested from the applicant. Awaiting the applicant's compliance with financial, legal and en gineering requirements, including approval of antenna site and clear ance of antenna height for air navigation safety. Awaiting negotiations between parties seeking to iron out mutual difficulties. Awaiting the outcome of general studies or particular inquiries. The age of pending broadcast applications as of June 30, 1954, is shown in the following ,table: REPORT OF THE FEDERAL COMMUNICATION&' COMMISSION 109 Service Total Under 3 3 to 12 12 to 24 Over 24 months months months months --------,---1---'---------- AM New statIons__ .+ • __ Major changes . . _ Renewals ....__ . • . __ Other .•_. . > _ AM totaL . . __ ._.__ FM New staUODL •__ . . _ Major changes . • _ Renewals •. __ . __ Other • " _ FM totaL. _ TV New stations . ..__ Major changes . 4 Rcnewals _ OtheL______________ " . . _ TV totaL 4 • _ Mi8CtUaneowf Kcw stations~_ Major changes ._ Henewl\ls. . , _ Othf'L _ 166 00 00 I' '" 132 .. 21 I' " ... '" .. 7 • 188 132 32 13 11 --- --- ------ --- 722 414 158 62 88 = = = = = • S 0 0 I IS 4 I 7 3 " 00 • 0 I 32 22 S 3 •------ --- ------ 128 97 14 10 7 = --- = == = 21 • • I' 1 24 16 7 I 0 23 :>J 3 0 0 174 98 " 16 3 ,----------~- --- 232 14J) 73 as 4 ------== = = 73 .. 7 0 0 IS 11 3 0 1 146 108 30 3 , ,.. " 163 38 2 633 264 193 61 ==--===== Grand totaL • __ • _ 1,635 9lS 438 158 12' 'Receiving Sets Broadcast receiving sets are not licensed or otherwise regulated by the Commission, although it does endeavor to curb interference to or from these receivers. Industry estimates that more than 117 mil· lion radio sets are in use, including 9 million equipped to receive FM. About 47 million homes, or 98 percent of the total, have one or more AM sets, and over 25 million automobiles have radio receivers. In addition, there are more than 30 million TV sets in about 29 milliOI\ homes, and of these sets less than 4 million can get the UHF band. The nwnber of color TV receivers is estimated to be between 6,000 and 7,000, and production is increasing. Networks Broadcast networks as such are not licensed or otherwise regulated by the Commission, However, individual stations are subject to the chain broadcasting regulations adopted by the Commission in 1941 to promote competition in broadcasting, There are five national networks-American Broadcasting Co.; Columbia Broadcasting Sys tem, Inc.; Mutual Broadcasting System, Inc.; National Broadcasting Co.; and Du Mont Television Network-and many regioual aud State networks. (On August 4, 1954 the Senate Interstate and Foreign Com merce Committee announced that it would conduct an investigation of radio and television networks.) 110 REPORT OF~'HEFEDERAL COMMUNICATIONS COMMISSION Broadcast Industry Financial Data In the calendar year 1953, the grand total revenues of the broad casting industry (radio and television) passed $900 million, the highest on record. Total revenues, which comprise revenues derived from the sale of time, talent, and program materials to advertisers, were reported at $908 million. Radio revenues increased from $469.7 million in 1952 to $475.3 million in 1953, while aggregate TV revenues of $432.7 million in 19&3 were 33.5 percent greater than the $324.2 million for 1952. Broadcasting profits of $123 million in 19iJ3 were 6.4 percent greater than those of 1952. The industry reported a profit from television broadcast operations of $68 million, 22.5 percent higher than in 1952. Earnings from radio AM and FM broadcast operations decreased by 8.4 percent from $60.1 million in 1952 to $55 million in 1953. All profit figures are before payment of Federal income tax. The following tables show the comparative calendar year 1952-53 radio and television financial data for the radio and television broadcast industries: All networks and stations, 1952-53 . __._----- Percent in- 1962 1953 crease or (decrease) in 1953 Afillionll MUliom $793.9 $908.0 14.3 469. 7 475.3 1.1 324.2 432.7 33.5 678.3 785.0 1>, 409.6 420.3 26 268.7 364.7 35.7 115.6 123.0 6.4 liO.l 55.0 (8.4) 55.5 68.0 22.5 --------------- 1---1---1--- Total broadcast revenues.. - __ . , . I___'_=-'-I~==:.I----'-= Radio 1 ' • • _ TelevisIon.. '. . Radio _ Television _ Item Total broadcast eXPenses. ----------------, -----------------'1----1---'--+---'-'- Radio. ._. _. . . _ Television__________________________________ _I~~;;;;;~I~~;;;;;~I~~~= Broadcast income (beCore Federal income tax) I Radio includes AM and FM broadcasting. NOTE.-1953 radio data cover the operations of 4 nationwide networks and 3 regional networks, 2,434 AM and AM-FM and 45 independent FM stations. 1952 data are for the same networks and 2,324 AM and AM-FM and 56 independent FM stations. 1953 TV data cover the operations of 4 networks and 334 sta· tions; 1962 data are for the same networks and 122 stations. ' REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 111 Nationwide networks only, 1952-69 (including owned and operated stations) Percent Item 1952 1953 tncrease or (decrease) In 1953 BroadcWlt reven-IUs Millimu MillfOU$ Radlo__________ $95.8 $92.6 (3.3) TelevJslon_._ 180.2 231.7 28.6 'l'otaL._ 276.0 324.3 17.5 BrofUlcast apen8t1 Radio_______ 85.6 83.2 (2.8) 'felevlsloD__ 170.3 213.7 25.5 Total_ ,5>. 9 2969 16,0 BrolUkast l1/,come (before Fede,allncome ta:t) Radl0..•________ 10.2 '.4 (7.8) Television____ 9.9 18.0 81.8 TotaL__ W.l 27.4 ! 36.3 NOTl!:.-Radlo da.ta Include the operations of 16 network-owned stations in 1963 and 18 sucb !ltatlons In 1902. TV data Jnclude the opemtJoIls of Hilletwo[k~wnedstations tn 1952 and 16 such stations in 1953. Fitl broatkast revenues, expef18es and income, 1952-53 1952 1953 'tom FMbroadca3t rtl1ffitul Number at Amount stations Number 01 stations Amount FM stations operated by: AM licensees: Reporting no FM revenues Reportin~FM revenues _ Non·AM licenS683_. _ Total FM Stations _ FM br0atk48t expffl.tes FM stations operated by non-AM licensees. •. _ Industry totaL~. . Total FM broadcast {morne(~foreFtderallncome tax) FM stations operated by non-AM licensees_._~_ Industry totaL . . _ MiUio'M MUIiOfis 400 412 ·--$i:3~ 149 $1.0 137 " 1.1 45 0.8 -------- -------- 611 2.6 "4 2.1 ~ = ~ " 2. , 45 1.6 (') (0) 56 (1. 0) 45 (0.8) (') (') ( ) Denotes loss. 1In view of the difficulty in a Joint AM-FM operation in allocating FM operatilm expense separately from AM station ()peration expemle, licensees of such statioI1ll were not required to report FM station expense separately. As a result, FM mdustry totals (or expense and income are not available. AM-FM licensees. however, were requested to report separately the revenues, if any. attributable to FM station operation if SUch data were readily II va Jable. In only a fewjnstanc~sdid AM-FM licensees state they were unable to segregate the FM revenues. 112 REPORT OF THE FEDERAL' 'COMMUNICATIONS COMMISSION TV broadcast revenues,~pen8e8and income, 1953 [In thousandsl Item 4net'lforks and their 16 owned and oper ated TV stations 244 other 'rv st.'ltlons Tota14 networks and 260 TV stations 1 A. Re-vlmues from the sale of time: 1. Network time sales: a. Nationwide networks. . _ b. Miscellaneous networks and stations Revenue from network time sales__ $126,541 126,541 $45, 270 89 45, 359 $171,811 89 171,900 70,569 38,977 109,546 431,777 360,514 71,263 25,866 9.681 16, 185 200,109 146,853 53,256 60,888 22,792 63,680 231,668 213,661 18, 007 2. Nonuetwork tIme sales to: a. National and regional advertisers 3nd sponsors _ 36,870 87,448 124,318 b. Localadvertlsersandsponsors.___________ 19,576 68,898 88,474 Total revenues from nonnetwork time sales . __1~~~56.~..;;;;6"1.~~156;;;,:34~6~1.~....;2~12~,~7;;;;il2 Total revenues from time sales . .______________ 182,987 201,705 384,692 3. Deduct commJsslons to regularly cstablisbed agendes, repre· sentat1v~$.brokeN! and others • ---1--'~3:'.Cllll9=+--27=,:,"::-'''I--.,.c62 C 'C'=61 Net revenues from time sales. __ ___________ _ , ---.-._I~~~l'~7~,988;;;~1"~~1~74~,~243~1.~~3~2~2~,23;;;' B. Revenues from incidental broadcast activities: Talent _._____________________ _ _ Sundry broadcast revcnues_._ Total revenues from incidental broadcast actlvltles_ Total broadcast revenues _ C. Total broadcast expenses of networks and statIons • _ I----cc::-I------c:~-I-_=_cc: D. Broadcast income before Federal income tax _ I Excludes data. for 74 stations with loss than $25,000 In tiIlle sales, Such stations report only total rev· <'lnnes and total expenses. I Of this amount $26,211,189 Is applicable to the total sale of network time, TV investment in tangible broadcast property, 1953 Item 4 networks and their o\VMd and operated stations _ Prefreeze stations.~~~.••• • . __ Total Prefreeze._~• •__ •__ •._~_ PostJreoze stations: VHF_•__ ._. • . __ •__ • ._.__..__ .••••~.__ . .• _•••__ ._ UHF._..__ • __ .._._ ••_. •__ .._.. ._.__•._._ ••_~.__•.~__ •__ . Total Postfrooze statfons .._. __~•.__ . __ . ••._..__ •_. _. __ •. Grand TotaL ..__.,__ •.__ ._.•__ ..__ ..~__ ..._..~_.__ .. Investment In tangible broadCMt property Number of stations Original Degreel- oost ate cost ThOU/JaW Thousanda 16 $71,622 $50,401 91 87,361 55,960 107 158,983 106,361 109 40,913 38,123 10' 33,238 30,703 218 74,151 68,826 ,'" 233,134 175,187 1 Nine TVstatIons (1 prefreeze and 8 postfreew) reported no ownership of tangible broadcast property. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 113 Radio 1 broadcast retlenues) expenses} income and investment, 1952-53 [In tbousands) 4llil.tionwide 3 regional net.- All other networks and works and their stations' Industry total Item their stations 1 stations I Hl52 1953 1952 1953 1952 1953 1"2 "53 --- Total broadcast revenues.___________ $95,824$92,6..~$4,796 $4,679 $367,972 $377,252 $468,5{}2 $474,585 'fotal broadcast expenses. ___________ 85,590 83,220 3,807 3,702 318,119 331,867 407,516 418,789 -----------~------------ Total broadcast income (before Fed- eral income tax) ___________________ 10,134 9,434 98. 977 49,853 45,385 61,076 55,796 = == = --- = = = = Investment in tangible broadCMt property: Original cost.______ -------.----- 28,241 21,602 97' 1,712 1m. J241249, 926 267,34] 276,240 Depreciation to date.. -------- 15,375 13,480 862 1,209 100, 39'1"3' 258 116,631 127,947 Depreciated C05t. ---" ----"--- 12,866 11,122 "' 503 137,730 136,668 150,710 148,293 I Excludes indf'pendently operated FMSt8tiOn.~,56 in 1952 and 45 In 1953. 21ncludes the operations of25 Df!twork. owned stations in 1952 and 22 network owned stations In 1953. , Includes 2,299 stations in 1952 and 2,412 stations in 1963. I Data available from 2.289 stations in 1052 and 2 400 stations in 1953. [ Page 114 in the original document is intentionally blank ] Field Engineering and Monitoring UHa-VB authority to inspect aU radio instaUatient have been cle.red for activation. 143 144 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The prospect for additional clearances is enconraging. A year ago only 53 percent of the frequencies were available for aviation use. Changeovers were completed during the year by all countries in volved in the establishment of scheduled new communication systems for the North Atlantic (R) and European-Mediterranean (R) areas. Aviation communication in these areas has been improved substan tially as a result. Similarly, a communication plan identified as Atlantic-Middle East Meteorological Broadcast has been phtced in effect with a resulting improvement in quality of service for transmission of essential weather information. In the Caribbean area, all (R) plan frequencies in which civil aviation has an interest have been cleared of conflicting assignments and are available for use by the aviation industry as required. Aeronautical mobile (R) plans for the North, Central, and South Pacific areas are being studied with a view toward placing them in effect during fiscal 1955. When this is done it will represent sub stantial completion of all such plans internationally agreed upon. Domestically, there are 64 frequencies available for assignment in the aeronautical mobile (R) service. Of these, 51 were clear of conflicting assignments at the close of the year. Aeronautical mobile (OR) is the designation for frequencies used primarily for Government aeronautical operations. The Commis sion does not at this time license any stations in the aeronautical mobile (OR) (off route) service but it does recognize the importance of clearing these bands for use at the earliest possible date. A year ago, 29 of 41 conflicting assignments had been cleared. At the close of fiscal 1954, all but two conflicting assignments had been cleared, and these two are scheduled for deletion by December 1, 1954. Amateur service.-All adjustments in the frequency allocations for the amateur service envisaged by the Atlantic City conference were completed in early 1952. No additional action is required of the United States with respect to amateur frequencies. Fiwed service.-The fixed service presents a serious frequency prob. lem. This service is allocated more spectrum space between 4 and 25 megacycles under the Atlantic City allocation table than all the other services combined. It represents our major use of the high frequency spectrum. Fixed stations provide rapid communication by telegraph, tele phone, facsimile, radiophoto, and other transmissions to most of the principal countries. Yet there is no international plan of time and frequency sharing for this vital radio service, nor will there be until agreement is reached by the various countries on the Inter national Frequency List. Drafts of this list are being prepared by REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 145 the International Frequency Registration Board (IFRB), based on the in-band fixed-service occupancy now developing as the result of the Geneva Agreement procedures. Of the 166 assignments in the fixed service which were out-of-band with respect to the Atlantic City allocations, all have been deleted or replacement frequencies have been found and the remaining few are planned for deletion not later than December 1, 1954. Completion of the fixed-service adjustments represents the end of the most complexreassigument program ever undertaken by the Com mission. It could not have been achieved without the cooperation of the licensees and Federal agencies using frequencies in this part of the spectrum. It is a significant achievement because the adjustments have been made without the necessity of holding hearings on modifica tion or cancellation of licenses. Making the necessary adjustments has occasioned some hardship and financial sacrifice on the part of the Commission's fixed-service licensees, but that is their contribution to overall service benefits. HF broadcast 8e1'Viee.-AII high-frequency broadcast stations H censed by the Commission are now assigned frequencies within the Atlantic City broadcast bands. However, the Geneva Agreement provides that the IFRB adjust the Mexico City basic plan and the draft plans prepared by the Technical Plan Committee at Paris, and prepare such additional plans as are considered necessary to deal with seasons and phases of solar activity. These plans have not yet been completed by the IFRB. The various eountries will have to reach agreement on precise frequencies and hours for high-frequency broadcast operation. At the present time there is no international channeling of the high-frequency broadcast bands and no specifications as to hours of their use. Although some constructive steps can be taken, it does not appear that an international plan for use of frequencies for HF broadcasting which would be acceptable to the United States can be placed in effect so long as Rnssian jamming of United States HF broadcasts continues. Maritime mobile se,·vice.-The Atlantic City radio regulations pro vide the maritime mobile service with exclusive bands for each of four classes of stations-ship telephone, ship telegraph, coast telephone, and coast telegraph. The Geneva Agreement anticipates the introduction of the ship tele graph bands in successive steps as follows: Calling bands, cargo work ing bands, and passenger working bands. Introduction of these three subbands at 4, 6, 8, 12, and 16 megacycles, in the order listed, is to be followed by the introduction of the Atlantic City ship telephone bands. The Commission has completed all of the frequency changes envisaged by the Geneva Agreement for the entire spectrum between 20 and 146 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 27.5 megacycles. The Geneva Agreement anticipates the introduction of coast telegraph and coast telephone assignments, one at a time, as clearances can be effected. Use of the Atlantic City ship telegraph calling bands was introduced on September 1, 1953, as scheduled. However, the next ph"se of "d justment, introduction of the Atlantic City c.ssiOll. _ Unite(l States-Mexico Informal Meeting on Standard Broa.d- u:i1~1f~taoos-CanadaMeetJng on Frequency Problems Rel· sUve to Implementing EARC Agreement. lOAD Communications Division-5th Sessloll. _ United States-Cuba Meeting on CONELRAD _ WAD Special Middle East Regional Communications Meeting. ccrr Study Group XI-International Telegraph Problems_ Pia.,. London~_ Washlngton _ Dttawa~_ Montreal _ Havana. _ Rhodes _ bate Sept. I-Oct. 9, 1953. Mar. 29-Apr. 2, 1954. Apr. 12-13, 19M. Mar. 9-Apr. 9, 1954. Apr. 21-23, 1954. May IHl9, 1954. In addition, the Commission engaged in preparatory or followup work directly connected with these 5 conferences and meetings: Name Place bate United States-Venezuela Discussions Conoomlng Frequency Washingtou_______ August 1953. Implementation Problems. DRSI 'l'echnlcal Meetlng .__________ Ottawa_ Oct. 5-8, 1953. United States-Canada. Informal Discussion on Civil Avia- WashingtOll Dec. 12-14,1953. tlon. ITU Admlnlstratlve CouneU-9th Sessloll Geneva~May 1-29, 19M. lOAD Assembly-8th SessloD • MontreaL June 1,1954. • 150 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The following 25 conferences and meetings are projected for the future: Name Place Date Undetermined _ _ do _ _ 10 • _ Geneva •• __ ___ do . IOAO Informal Soutb American CommunicatiOIlS Meeting_ Llma _ URSI~llthGeneral Assembly , .. Amsterdam__ COIF-General Switching Program________ Geneva__ . __ CCIR-Study Group IX_________________________ . __ . do . __ 2d International Congress on Communications .________ _ Undetermined. _._ United Stutes-Mexico Meeting on Standard Browlca.sL __ Mexico City.. _ eCIF-XVII Plenary Assembly ,~:::: Geneva.. '" _ United States-Libyan Arrangement To Resolve Frequency Undetermined Problems. IOAO-Air Navigation Conference 2d Sesslon . ._. _ Montreat _ IOAO-North Atlantic Regional Air Navijl;ation Meeting-3d . Ao _ Session. United States-Bahama Meeting on CONET;IlAD . Undetermined. United States·Bermnda Meeting on CONELRAD____ _ Ao _ United States-Canada Meeting on CONELRAD__ " __ _ do _ United States-Haiti Meeting on CDNET,RAD______ _ do _ United States-Jamaica Meeting on CONELRAD____ _ do _ United States-Mexico Meeting on CONELRAD__ .. do _ lTU Administrative Council-10th Session______________ Geneva_ ICAD-Search and Rescue Dlvision .. MontreaL _ ICAD-Personnel LicensingDivision~5thSession __ . . do _ 5th Plenipotentiary Inter·American Telecommunications Con· Rio de Janeiro _ ference. COIR-8th Meeting . . _ IOAO-North Pacific Regional Air Navigation Mt-'Cting. _ rcAO-:-South Pacific Regional Air. Navigation MeetiIlg _ ITU International'I'ele~raphand Telephone Conferenoo _ CCIT-8th Plenary Assembly. ._ July 1954. Aug. 23, 19M. Sept. 1-5, 1954. Sept. 10-23. 1954. Ocrobt'r 1954. Do. Oct. 4---12, 19M. 1954. Fall 1954. Do. 1954. 1954. 1954. 1954. 1954. 1954. Apr. 23, 1955. 1955. 1955. 1955. 1955. 1956. 1956. 1956. 1956. Appendix FIELD OFFICES The Commission maintains 61 field offices. Fifty-seven of these constitute the major force of the Field Engineering and Monitoring Bureau, and the other four are accounting offices of the Common Carrier Bureau. The field engineering offices consist of 7 regional offices, 24 district offices with 6 suboffices and 2 ship office.", and 18 monitoring stations 10 primary and 8 secondary. A list of all Commission field ollices follows: FiElD -ENGINEERING AND MONITORING BUREAU RegilJllulOffice,,; J[ctldquuI'fc,"s Region L 9;)4]~edel'1I1Bldg., Xew York 14, N. Y. Region 2 411 Federal AJlIH'x, Atlanta 3, Ga. Hegion 332.~-ACustomhouse, San Frandseo 26, Calif. Region 4 802}I~ederalOffice Bldg., Seattle 4, Wash. Region 5 P. O. Box 1142, Lallikai, Oahu, T. H, Region 6 t!32 l:. S. Coul"thol1se, Chicago 4, Ill. Re~ion7 1029~ewFederal Bldg., Detroit 26. Mich. Distdct O!ftces Address L_______________ 1600 Customhouse, Boston 9, Mass. :!________________ 748 Federal Bldg., New York 14, N. ₯. 3 1005 New U. S. Customhouse, Philadelphia 6, Pa. 4__~500 McCawley Bldg., Baltimore 2, Md. 0 402 Federal Bldg., NorfOlk 10, Ya.; (ship office) 200 Post Office Bldg., Newport News, Va. 6 411 Federal Annex, Atlanta 3, Ga.; (suboffice) 214 Post Office Bldg., SaYannah, Ga. 7 312 Federal Bldg., Miami 1. Fla.; (suboffice) 409-410 Post Office Bldg., Tampa 2, Fla. 8 400 Audubon Bldg., New Orleans 16, La.; (suboffice) 419 U. S. Courthouse and Customhouse, Mobile 10, Ala. 9________________ 324 U. S. Appraisers Bldg., Houston 11, Tex.; (suboffice) 829 Post Office Bldg., Beaumont, Tex. 10 500 U. S. Terminal Annex Bldg., Dallas 22, Tex. 11 . 539 U. S. Post Office and Courthouse Bldg., Los Angeles 12, Calif.; (suboffice) 15-C U. S. Customhouse, San Diego l Calif.; (ship office) 326 U. S. Post Oftlce and Courthouse, San Pedro, Calif. 12________________ 323-A Customhouse, San Francisco 26, Calif. 318372--~4----11151 Secondary Monitoring Stations Searsport, Maine Spokane, Wash. 'l'win Falls, Idaho Fort Lauderdale, ]'la. Chillicothe, Ohio :\Iuskogee, Okla. Anchorage, Alaska Fairbanks, Alaska 152 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION • District OfJices AddreiJs 13________________ 433 Xew U. S. Courthouse, Portland 5, OreA". 14 h02 Federal Office Bldg., Seattle 4, Wash. 15 i)21 Xew Customhouse, Deuyer 2, Colo. 16 208 Uptown Post Offic-e and Federal Courts Bldg., St. Paul 2, Minn. 17- 3100 Federal Office Bldg., Kansas City 6E, Mo. 188~U. S. Courthouse, Chicag-o 4, Ill. 19 1029 Xew Federal Bldg., Detroit 26, Mich. 20 :\28 Post Office Bldg., Buft'alo 3, N. Y. 2L ;;02 Federal Bldg., Honolulu 1, 'I'. H. 22 322-323 Federal Bldg., San .Tuan 13, P. R. 23 .i3 U. S. Post Office and Courthouse Bldg., Anchorage, Alaska; (subotfice) 7-H Shattuck Bldg., Juneau, Alaska. 24 Brig-gsBld~.,22d & E Sts., N'V., Washington 25, D. C. Primary MOllitofillg Statiolls Allegan, Mich. Grand Island, Nebr. Kingsville, Tex. Millis, Mass. Santa Ana, Calit. Laurel, Md. Livermore, Calit. Portland, Oreg. Powder SprinA"s, Ga. Lanikai, Oahu, T. H. COMMON CARRIER BUREAU FIELD OFFICES Atlanta, Ga., 733 Hurt Bldg. i\ew York, X. Y.. 90 Church St. St. Louis. )10., 815 Olive St. San Francisco, Calif., 180 New l\(ontgonwry St. PUBLICATIONS The Commission's printed publications are sold by the Superintend ent of Documents, G-cwernment Printing Office, 'VashinhTton 25, D, C., and are not distributed by the·Commission. A purchaser of auy part of the rules and regulations is furnished with a form by the Superintendent of Documents which, when filled out and forwarded to the Commission, entitles him to receive any subsequent changes or amendments to the part purchased until a com plete revision is printed. A list of printed publications available from the Superintendent of Documents follows: Title Communications Act of H134, with Amendments anti Index, re\"ised to l\lay 1954~~_ Amendments only from ,Jullunry 1954 to l\(aj' 1\);14 _ l'rice $0.70 .15 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 153 Title Federal Communications Commission reports (bound volumes of decisions Rnd reports exclusive of allDual reports) : Price Volume 5, November 16, 1937, to June 30,1938 $1.50 Volume 6, July 1, 1938, to February 28, 1939________________________ 1.50 Volume 8, March I, 1940, to August 1, 1941~____1.50 Volume 11, July I, 1945, to June 30, 1947 -----_____ 3.75 Volume 12, July I, 1947, to June 30, 1948__________________________ 3.50 Annual reports ot the Commission: Thirteenth Annual Report-Fiscal year 1947______________________ .25 Fourteenth Annual Report-Fiscal year 1948~_______________.30 Fifteenth Annual Report-Fiscal~year1949________________________ .35 Sixteenth Annual Report-Fiscal year 1950________________________ .40 Seventeenth Annual Report-Fiscal year 1951______________________ .40 Eighteenth Annual Report-Fiscal year 1952_______________________ .40 Ninteenth Annual Report-Fiscal year 1953________________________ .50 Twentieth Annual Report-Fiscal year 1954-_______________________ .50 Statistics of the communications industry: For the year 1943_________________________________________________ .35 For the year 1945_________________________________________________ .50 For the year 1946_________________________________________________ .55 For the year 1947_________________________________________________ .75 For the year 1948: Sections A and B 1.00 Section B-Broadcast only .35 For the year 1949, Sections A and B________________________________ 1.00 For the year 1950 (Common Carrier only) .50 For the year 1951 (Common Garrier only)__________________________ .40 For the year 1952 (Common Carrier only)________________________ .50 Report on Public Service Responsibility of Broadcast Licensees (Blue Book), 1946 ------------------______ .40 An Economic Study of Standard Broadcasting, 1947____________________ .40 Study Guide and Reference Material tor Commercial Radio Operator JUxBInlnations-_____________________________________________________ (') Digest of Radio Regulations and Instructions for Restricted Radiotele- phone Operators____________________________________________________ .05 Standards of Good Engineering Practice Concerning Standard Broadcast Stations, revised to October 30. 1947 .:.__ 1.215 Figure M3, Estimated Ground Conductivity In the United State&--set of 2 IDapS- 3.50 Rules and Regulations: Part 0, Organization, Delegation of Authority, etc__________________ (') Part 1, Practice and Procedure____________________________________ (') Part 2, Frequency' Allocations and Radio Treaty Matters; General Rules and Regulations, revised to JUly 30, 1952___________________ .25 Part 8, Radio Broadcast Services, revised to June 30, 1953 (includes FM and TV engineering standards)______________________________ .50 Part 4, Experimental and Auxiliary Broadcast Services, reVised to October 30, 1950~________________.15 Part 5, Experimental Radio Services, revised to March 17, 1953______ .10 Part 6, Public Radiocommunfcations ServIces, reVised to April 27, 1949____________________________________________________________ .10 See footnotes at end or table. 154 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Title Rules andRegulations~Continl1edPI"ice Part 7, Stations on Land in the Maritime Services, revised to July 20, 1954 $0.23 Part 8, Stations on Shipboard in the Maritime Services, revised to July 20, 1954________________________________________________________ .35 Part 9, Aviation Services, revised to July 14, 1953___________________ .10 Part 10, Public Safety Radio Services, revised to December 18, 1953___ . 15 Part 11, Industrial Radio Services, revised to July 29, 1953__________ . Hi Part 12, Amateur Radio Service, revised to November 20, 1953_______ .20 Part 13, Commercial Radio Operators, revised to June 27, 195o_______ .05 Part 14, Radio Stations in Alaska (other than Amateur and Broad- cast). revised to November 20, 1953______________________________ .05 Part 15, Restricted Radiation Devices, recodified to July 21, 1948_____ (I) Part 16, Land Transportation Radio Services, revised to January 1, 1953__________________________________________________________ .10 Part 17, COnstruction, Marking, and Lighting of Antenna Structures, revised to June 3, 1953__________________________________________ .05 Part 18, Industrial, Scientific and Medical Service, revised to Septem- ber 4, 1953 .. . 10 Part 19, Citizens Radio Serl·ice___________________________________ (') Part 20, Disaster Communications Service, effective March 21, 195L__ . 05 Part 31, Uniform System of Accounts for Class A and Class B Tele- phone Companies, revised to May 12, 1948________________________ .40 Part 33, UniformS~'st{'mof Accounts for Class C Telephone Companies, revised to~lay12, 1948________________________________________ .30 Part 34, Uniform System of Accounts for Radiotelegraph Carriers, revised to October 14, 1949______________________________________ .20 Part 35, Uniform S:vstem of Accounts for Wire-Telegraph and Ocean- Cable Carriers, revised to October 14, 19':1:9_______________________ .25 Part 41, Telegraph and Telephone Franks, revised to December 4, 1947___________________________________________________________ .05 Part 43, Reports ot Communication Common Carriers and Their Affiliates, revised to September 21, 1953_________________________ .05 Part 45, Preservation of Records of Telephone Carriers, effective October 1, 1950________________________________________________ .10 Part 46, Preservation of Records of Wire-Telegraph, Ocean-Cable and Radiotelegraph Carriers, effective October 1, 1950_________________ .10 Part 51, Occupational Classification and Compensation of Employees of Class A and Class B Telephone Companies, effective October 10, 1951___________________________________________________________ .05 Part 52, Classification of Wire-Telegraph Employees, effective July 11, 1944 c ('j Part 61, Ta1:it't's, Rules Governing the Construction, Filing, and Posting of Schedules of Charges for Interstate and Foreign Communications Service, revised to Augu.st 1, 1946~_______________.10 Part 62, Applications Under Section 212 of the Act to BoldInter~ locking Directorates, revised to May 23, 1944_____________________ .05 Part 63, Extension of Lines and Discontinuance of Service by Carriers, revised to December 30, 1946____________________________________ (') Part 64, Miscellaneous Rules Relating to Common Carriers, revised to July 16, 1948__________________________________________________ .10 lInth~-process of: I:Jr1nting-nvaUable at Government Printing Office at a later aate. I Beingrevlsed~notavailable at presf'nt. lObtalnable temporarily from the Federal Communlcations CommIsslon without charge. REPORT OF THE FEDERAL COMMtJNICATIONS COMc'lUSSION 155 The Commission is unable to furnish lists of radio stations but, l.pon request, will supply a fact sheet about commercial sources of such lists, also one on communications publications and services. Also available from the Commission are the following nonprinted information primers concerning the FCC and its various fields of activity: "An ABC of the FCC." "A Short History of Electrical Communication." "Regulation of 'Vire and Radio Communication." "Radio Broadcast Primer." "Safety and Special Radio Servicffi Primer. H : "Common Oarrier Primer." "Use of Broadcast Facilities by Candidates for Public Office." Though none of these can be supplied in quantity, a single copy of any of the above-listed subjects may be obtained upon individual re quest to the "Secretary, Federal Communications Commission, Wash ington 25, D. C." TREATIES AND OTHER INTERNATIONAL AGREEMENTS For informational purposes, the applicable Federal laws, interna tional treaties, agreements, and arrangements in force relating to radio, and to which the United States is a party, are here listed. Under "Series", the abbreviation"T~S." means Treaty Series;"E~A. S.", Executive Agreement Series; and "'fIAS", Treaties and Other International Acts Series. Unless otherwise indicated, copies of these documents may be pur chased from the Superintendent of Documents, Government Printing Office, Washington 25, D. C. 1937 _ 1929 _ 1934 _ 1925 _ __D_"_" s_'_"_·'_'__1 _ Subj", 1910. _ IShip Act of 1910, as amended July 23, 1912,relatin~to radiocommunicatlon for ships navigating the Great Lakes. (Not 3vallable at the Government ! PrintingOffill!) T. S. 724-.·L _I Arrangement.s with Oreat Britain. Canada. and Newfoundland for the I prevention of rndlo interference hy ships. Enk'rcd into force Oct. 1, 1925. (Not lwallable at tlJe O()VernnJent Printing Office.) 19,28and 1929. T. S. 767-.L _ Arrangements with CanadagO~'erningrndJo t'OmmunJca.tion between private experimlmtal stations. Entered Into force Jan. 1, 1929. T. S. 777-A. _ Arrangement with Canada. Cuha, and~ewfoundlandrelating to assign· I ment of high frequencie:> on the :N"orth Aml'rican oontinent. Entered I into {oreR. Mar. 1, 192Y. Cuba ty>sse'C! to he a [}'"J.Tty on Oct. 5, 1933. Arrangement still ill force with respect to the others. (Not available at the GoVerllment Printing Olfice.) 1934 Commwlica.tions Act of 1934. 1934~~~~-----E.-A:~C62~~~-Arrane:ement with Canada rdative to radIo communication between private cXPf'rimental stations and between amateur stations. Entered Into force May 4, 1934. (Not available at tt.e Government Printing Office.) E. A. S. 66.___ Arrangement with Peru ooncerning radio communication betwf'en amateur stations on behalf of third parties. Entered into Corce May 23, 1934. E. A. S. i'l____ Arrangement with Chile relative to radio communication between amateur stations on behalf of third parties. Entl'red Into force Aug. 17.1934. E. A. S. 109__ Agreement witt. Canada relating to the exchange of information concerning issuance of radi.o lloon5eS. Largely superseded by notification procedure established in NARBA (T. S. 777-A, T. S. 9&2, E. A. S. 227. and TIAS 1553) and Intf'r-Ami'fica.n Radio Communications COll\'ention (T. S. 938). (:-.rot available at the Government Printing Office.) 156 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION nate Series Sllbjtoct 1947_ •• TIAS 1652 _ 1947 TIAB 1901 _ I{H4 E. A. S. 40(L. Inter·Ameriesn Radio COillfowlications Convention between the United States and othf'r POWl;'rs. SIKned Dec. 13, 1937 (First Inter-AmerIcan Conference). (Not available at the Government Printinll: Office.) North American Regional BroMmst Ap;reement(~A.RBA)between tbe United States, Cuba, Dominican Republic, Haiti, and Mexico. Signed Dec. 13, 1937. E. A. S. 227 and TIAS 1553 supplement this agreement. (Not available at the Government Printing Office.) Re~donalRadio Convention betwet>n the United States (in behalf of the Canal Zone) and other powers. Signed Dec. 8, 1938. (Not llval1able at the Government Printing Office.) Arrangement with Canada rrlative to broadcasting. Effected hy exchange of notM signed Oct. 28, and Dee. 10,1~38.(Not available at the Govern ment Printing Office.) Agreeml'llt with Canada ooneerning radio communication. Effected by exchange of notes siJ1;ned in June-Dec. 1938. Arrangement with Canada ooncerning use of radio for cfvil aeronautical services. Effected by exchange of notes signed Feb. 20, 1939. (Not available at the Government Printing Office.) Agreement with Mexioo regarding broadcasting. Entered Into force Mar. 29,1941. (Not available at the Government Printing Office.) SnpplementarY North AmerIcan Regional Broadcasting Agreement signed Jan. 30, 1941. Entered into force Mar. 29, 1941. (See T. S. 962 and TIAS 1553.) (Not available at the Govemment Printing Office.) Agreement with Canada regarding broadcasting stations In Northwestern Canada. Effected by exchange of notes signed Nov. 5 and 25, 1943, and Jan. 17, 1944. Agreement to "cease with termination of war". (Not available at the Government Printlng Offi.oo.) Agreement with the U. S. S. R. on oommerclal radio teletype oommunlca tion channels. Entered into force May 24, 1946. North American Regional Broadcasting Interim Agreement (Modus Vivendi). Entered into force Mar. 29, 1946. (See T. S. 962 and E. A. S. 21:1.) Amended by an arrangement between the United States and Canada concerning engineering standards. Agreement with the United Kingdom of Great Britain and Northern Ireland concerning standardization of distance measurtng equipment. Entered into force Oct. 13, 1947. Interim arrangement with Canada with respect to mobile radio stations. Entered into force Aug. 20. 1947. Agreement with the United Natlons. Entered into force Nov. 21,1947. Its provisions were also made Public Law 357, 80th Cong., approved Aug. 4, 1947. AlU'ooment with Canada concerning frequency modulation broadcasting. Entered Into force Oct. 1.5, 1947. (Not available at the Government Printing Office.) International Te!ecommuni{'1ltlon Convention, Final Protocol and Radio Rel/.'Ulations. Signed at Atlantic City, Oct. 2, 1947,su~rsedlngInter national Telecommunication Convention, Madrid, 1932. Radio regula tions entel'('lllnto force Jan. 1, 1949. The effective date for effecting art. 47 bas been superseded by the agreement signed at the Extraordinary Administrative Radto Conference, Gem,'va, lQ5l. (This printi.ng does not contain the additionai radio I'('l!,"ulations since the United States is not a party thereto. Copies of the Final Acts of the Atlantic City Con ference, which Include the additional radio regulations, are available only from thelnternational Telecommunication Union, Geneva, Switzerland.) Arrangement with Canada concemlng broadcasting engineering standards. Entered into force Apr. 1, 1948. (Not available at the Government Printing Office.) International Conventlon tor the Safety of Llle at Sea and Annexed Regu lations. Entered Into force Nov. 19, 1952, Agreement with Mexico conaerning weather stations cooperath'e program. Enk>rcd into force Oct. 20. 1949. Telegraph Regulations (Paris Revision, 1949)bannexed to the International Telecommunication Convention (Atlantic tty, 1947) and Final Protocol to the Telegraph Regulations. Entered Into force with respect to the United States Sept. 26, 1950. (Not available at the Government Printing Office.) Agreement wIth certain British Commonwealth Governments regarding telecommunications. Entered into force Io'eb. 24, 1950. Inter-American Radio Agl'l'-ement with Canada and other AmerIcan re pnblics. (Fourth Inter-American Radio Conference.) Entered Into force Apr. 13, 1952. Arrangement with Eeuador concerning radio commWlIcation between amatem stations on bellaif of thirdpart~s.Entered l.nto force Mar. 17, 1950. Agreement with Liberia regarding radio communication between amateur stations on behalf 01 third parties. Entered into force Jan. 11, 195i. Agreement with Ceylon concernIng the use of facilities of Radio Ceylon. Entered into force May 14, 1951. Agreement with Mexico concerning televIsIon fl'('Queney channel assign ments within 250 miles of the border. Entered Into force Sept, 26, 1951. (TIAS 26M, an amendment, entered tnto force June 25, 1952.) Agreement with Cuba concerning control of electromagnetic radiation. Entered into force Dec. 18, 1951. T, S, 962 _ T.S.938 _ T.8.949. 1951._~••••__ TIAS 2459 _ 1950•• ••__ TrAS 2433. __ 1961.______ TrAS 2223 _ 1951.______ TIAS 22.59 _ 1951.. TrAS 2366 _ 1949•• ••__ TUS 2435 _ 1949. TIAB 2489 _ 1948 TIAB2495 _ 1949 TrAS 1995 _ 1949_•• TIAS 2175_ 1940 E. A. 8.196 194L E. A. S. 227 _ 1938 E. A. S. 142. 1939 E. A. 8.143. 1947 TrAS 1670 _ 1947 TrAS 1676.••• 1946 TrAS 1527 . 1946 TIAB 1553 . 1938 19a~L..E. A. S. 136 __ 1937 _ REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 157 Date Series Subject 1952 TIAS 2508 _ 1952~TIAB 252IL__ 1952 TIAS 2548 _ 1952__ • TIAS259·L~__ 1952 TIASI2654 _ IM2._.~_ IM2__ • TIAS 2695_. __ 1952__ • • TIASI270L.__ IM2 TrA8 270.5_. __ Agreement sIgned at the Extraordinary Administrative Radio Conference to effect the table of frequency allocations and other provisions of the radio regulations (Atlantic City,IINt). Entered into foroe Mar. Iij 1952. (A vo.llable only from the International Teleco.mmunJcation nion, Geneva,Sv;it~rla.nd.) Treaty WIth Canada relating to mutual recognition of certain radio station llnd operator licenses issued In either country. Entered into force May 15, 1952. Agreement with Cuba regardIng radio communi