Federal Communications Commission \ i 22J annu'(f;eport FOR THE FISCAL YEAR 1956 With introductory summary and notations of important developments UNITED STATES GDVERNMENT PRINTING DFFICE, WASHINGTDN, D. C. For .ale by the Superintendent of Documents, U. S. Government Printing OIRce Welshington 25, D. C. • Price 50 cenl, COMMISSIONERS Members of .he ;Federal Communications Commission (As 01 June 30, 1956) GEORGE C. MCCONNAUGHEY, Chairman (Term ol:pil'e8 Juno 30, 1957) ROSEL H. HYDE (Tenn (lllpires June 3D, 1959) EDWARD M. WEBSTER' (Term expires Juno 30, 1956) ROBERT T. BARTLEY (Term expires June 30, 1958) JOHN C. DOERFER (Term expires June 30, 1961) ROBERT E. LEE (Term expires June 30, 1960) RICHARD A. MACK (Term expires June 30, 1962) A list of present and past Commissioners appears in the appendix to this report. 1Sueeeeded by T. A. M. Crayen, July 2, 1956, lor term o:>:pirlng June SO, 1963. II LETTER OF TRANSMITTAL FEDERAL CoMMUNICATIONS COMMISSION, W Cl8hington 135, D. O. To the Oongre8s ofthe UnitedStates: In compliance with section 4 (k) of the Communications Act of 1934, as amended, there is transmitted herewith the 22d annual report of the Federal Communications Commission. Pursuant to amendments of 1952, it offers information and data use ful in the determination of questions connected with the regulation of interstate and foreigu wire and radio communication and radio trans mission of energy; also material concerning the functioning of the Commission as will be of value to Congress in appraising the amount and character of the work and accomplishments of the Commission and the adequacy of its staff and equipment. Because of the lapse of time between compiling and printing this report, it includes notations of subsequent important developments up tothe time of going to press. Further required biographies of persons taken into the employment of the Commission during the 1956 fiscal year, together with the names of those who have left during that period, are being submitted as a nonprinted supplement. Respectfully, GEORGE C. MCCONNAUGHEY, Ohairman. III [ Page IV in the original document is intentionally blank ] Table of Contents INTRODUaORY SUMMARY Radio capsules . . . Other highlights ~ationaldefense Common carriers Telephone . Telegraph . International. Safety and special radio services Broadcast services TV A~-I. FM . Field engineering aod monitoring Research amI laLoratory . Frequency allocations Commission Problem8 GENERAL Communications Act of 1934 Purpos('-s Applicalion Regulation. Commission Organi7.ation chart Staff organization. . . Personnel Appropriations and expenditures Cutting prOCedUif'S and paperwork .\pplication and hearing procedure. Litigation Legislation. . Fees Authorizations .\pplications and other filings Correspondence Relcnsf's and publications Technical assistance activity NAllONAL DEFENSE .... Commission participation Presidential deiegation of powers CO~ELUADprogram ClaE\E\ified defense activities Othf'r defense activities Page 1 1 1 1 2 2 2 3 3 4 4 5 5 6 6 6 7 7 11 11 11 11 11 12 10 13 15 15 16 16 19 23 25 25 25 25 26 26 27 27 27 27 28 28 V VI TABLE OF CONTENTS Page. RADIO MARCHES ON . 31 The electronic age 31 Postwar expansion 32 Highlights of a decade . 32 Public benefits . . . . 34 COMMON CARRIER SERVICES 35 Domestic telephone . . . 35 General . . . . . . . 35 Services and facilities . 36 Construction of facilities . 36 Discontinuance of service 37 Speed of service 37 Acquisitions and consolidations 37 Interlocking directontes. . 37 Reclassification of companies 38 Merger . . . . . • . • • 38 Foreign attachment case. . 38 Domestic public land mobile radio service 38 Rural subscriber and8hort~haultoll radiotelephone services 39 TV pickup and studio_transmitter links 40 Community TV antennas 40 Tariff filings . . . . . . 40 Private line service rates. 40 TV transmission charges 41 Other regulatory matters 41 Depreciation . . . . . 41 Separation procedures 42 Western Electric earnings and prices 42 Pensions and relief . • . . . . . • 42 Uniform systems of accounts . . • . 42 Restatement ofplant accounts on basis of original cost 43 Continuing property records . . . .. . . . . 43 General and limited audits. • . . 43 NARUC Committees on Accounts and Statistics and Deprecia. tion 43 Domestic telegraph • . . 43 General . . . . . . . 43 Services and facilities . 44 Reperforator switching. 44- Carrier equipment. . 45 Radio beam • . . . 45 Private wire systems. 45 Facsimile. . . . . • 46 Modernization expenditures 46 Construction ofwire facilities . 47 Curtailment of service. . . . 47 Speed of~rvice.. • . . . . 47 Proposed private telegraph network to serve TV industry 48 Telecar pickup and delivery service 49 Rates and tariffs . . . • • . 49 Domestic telegraph rates . 49 Leased facilities services 50 Tariff schedules. • . • . 50 TABLE OF CONTENTS COMMON CARRIER SERVICES-Continued International telegraph and telephone General . International conferences. International services Telegraph . Telephone. Applications Docket cases. . Circuits to The Netherlands and Portugal Western Union divestment. . . . . . . Puerto Rico application . . . . . . . . Western Union-Globe and Tropical contracts. Far East traffic . . . . . . . . W8shington area tieline service • • N onchargeahle tieline designations Tariff schedules. . . . . Rate level and structure . Other regulatory matters. Relief and pensions . Reclassification of plant Depreciation . . . . . Continuing property records Miscellaneous accounting matters. Statistics. . . . . . . General . Telephone carriers. . Telephones by states Land line telegraph . Radiotelegraph and ocean-cahle carriers International telegraph traffic Common carrier applications . . . SAFETY AND SPECIAL RADIO SERVICES General . Private microwave systems. Marine radio services . . . Safety at sea . . . . . International Convention and Communications Act Safety at sea legislation . . . . . . . . . . . Great Lakes agreement . . . . . . . . . . . Exemptions from compulsory radio requirements Distress studies. . . . . . . . . Radio aids to navigation. . . . . Equipment and technical advancement Type-acceptance program . . . . Radio Technical Commission for Marine Services (RTCM) . Single sideband radiotelephone system. . . International standardization of VHF hands Marine radio communication systems Coast stations . . • . . : . . Marine fixed stations . . . . . Great Lakes weather transmissions Intership frequencies . . . . . . VII Page. 50 50 51 51 51 53 53 53 53 54 54 54 54 55 55 55 56 56 56 56 56 56 56 57 57 57 58 59 60 61 62 63 63 64 64 64 64 64 65 65 66 66 66 66 67 67 67 68 68 68 68 68 vm TABLE OF CONTENTS SAFETY AND SPECIAL RADIO SERVICES-Continuod MlJrine radioRervices~Continued Marine radio communication systenis-Continued Impleroentatiop of Geneva frequency plan . . Operation in 152-162 megacycle hand Special communications for laying of deep-sea cable New VHF public coast stations. Developmental control and relay microwave system Ship-shore radiotelephone public correspondence Interim licenses. . . . . . 21&2 kiloc)'Clc working frequency . . . . Improvements of facilities and frequencies Public fixed and maritime stations in Alaska . Radio communication in Alaska ... Study of duplicate public facilities in Alaska Fixed and coast stations Aviation services .•.......... General . . . . . . . . . . . . . . AviatiOI1 organizations and conferences. Air Coordinating Committee . . ' Radio Technical Commission for Aeronautics'. International conferences. Rule making . . . . . . . . . . • . . . . Aircraft radio stations. . . . . . • . . . . Aeronautical enroute and aeronautical fixed stations. Civil air patrol radio stations. . . Airdrome control stations Aeronautical utility mobile stations Radionavigation stations. . Flying school radio stations. . . . Flight test radio stations. . . . . Aeronautical advisory radio 8tations . Aeronautical public service radio stations. Aeronautical operational fixed stations. Public safety radio services. General . Rule changes. . . Police radio service Fire radio service . Forestry-conservation radio service HighwHY maintenance radio service Special emergency radio service. State guard radio service. Disaster communications service Industrial radio services General . . . . ... Power radio service . . Petroleum radi.o rervice Forcst products radio service Motion picture radio service Relay prest> radio e.ecvice Special i-ndustrial radio service Low power industrial radio service Industrial~adiolocationservice . . 68 69 69 69 69 69 70 70 70 71 71 71 72 72 72 72 72 74 74 75 75 75 75 76 76 76 76 76 76 76 77 77 77 78 78 78 79 79 80 80 80 81 81 81 81 82 82 82 82 82 83 TABLE OF CONTENTS SAFETY AND SPECIAL RADIO SERVICES-Continued Land transportation radio services. General .. ..... :Motor carrier radio service Railroad radio service . . Taxicab radio service . . Automobile emergency radio service . Citizens radio service Amateur radio service Enforcement . . . . Statistics. . . . . . Stations in8af~tyand special radio services. Transmitters in safety and special radio services. Applications in safety and special radio services BROADCAST SERVICES General . . . . . . . . . ... Television (TV) broadcast service. Growth of TV . . TV problems. . . Translator statioos Satellite operalion. Low power operation Booster operation. . Community antenna TV systems Subscription TV . . . . . . . Color TV . Dual main studios and station identification NonconllIlercial educational TV Stundard(A~l)broadcast service. . . . . . . Al\1 stations continue increase . . . . . . "Clear channel" and "daytime skywave" proceedings Frequency modulation (FM) broadcast scrvice Functional music . . . . . . . CommercialF:~'I. . . . . . . Noncommercial educational FlU Facsimile FM. . . . . . International broadcast service Auxiliary hroadcast services Remote pickup stations . Aural STL stations . . . FM intercity relay stations TV pickup stations . . . TV STL stations . . . . . TV intercity relay stations . Experimental broadcast services. Experimental TV stations Developmental stations Special network study .. Multiple ownership rules Political broadcasts Lotteries Loud commercials. IX Page 83 83 84 84 85 85 85 85 88 88 88 90 91 93 93 93 93 94 97 98 98 98 99 100 101 101 102 103 103 103 104 104 105 105 105 106 106 106 107 107 107 108 108 109 109 109 109 III 111 111 112 TABLE OFCONTE~ryS BROADCAST SERVICES-Conlinued Broadcast complaints . . . . . . Rroadca50t '&ta"tiou !!Iaies. Revision of renewal application form. Other broadcast rule changes Amendment of TV assignment table. Revision of part 3. . "Umbrella" protection. . . Posting AM and FM station and operator licenses. Processing of AM, FM, and TVapplicatio~8 Repetitious applications . . . . . Remote control. . . . . . . . . Identification of recorded programs Statistics. . . . . . . . . . . . Current broadcast authorizations Status of broadcast authorizations. Broadcast authorizations by states Broadcast authorizations by cities. Broadcasting since 1949 ... Broadcast applications. . . . Pending broadcast applications Receiving sets . . . . . . . Broadcast industry financial data INTERFERENCE-ITS CAUSE AND CURE General problem . . . . . . . • • . General remedies . . . . . . . . . . Industrial, scientific and medical equipment. Incidental and restricted radiation devices . Type approval and type acceptance. Monitoring for interference . Interference complaints . . . . . . Small boat interference . . . . . . FCC-Government interference cases . International interference and infractions. FIELD ENGINEERING AND MONITORING General . Monitoring . Monitoring facilities. Monitoring for defense. Monitoring surveys . . Direction finding . . . Emergency assistance to planes . Emergency aseistancetoship2l . Other monitoring cases. . . . Monitoring training program . Inspections . Broadcast station inspections . Ship radio inspections . . . . Other radio station inspections . Interim ship station licenses . . . . Investigations . . . . . . . . . . Investigation of unlicen&ed stations Pale 112 113 113 114 114 114 114 114 115 115 115 115 115 115 116 116 117 119 120 121 121 122 125 125 125 125 126 127 127 128 131 131 132 133 133 133 133 134 134 135 135 136 136 137 137 137 138 139 139 139 139 TABLE OF CONTENTS FIELD ENGINEERING AND MONITORING-Conlinu.d Commercial radio operators General . . . . . . . . ... Rule changes Operator suspensions and denials Operator examinations Commercial radio operator authorizations Field engineering projects and facilities. Antenna obstruction marking. . RESEARCH AND LABORATORY Technical research General .. Governlllent.industry cooperation. VHF and UHF propagation research . AM broadcast propagation research . Sunspot cycle recording . Technicalstandards . Type acceptance of transmitters Experimental radio services. Lhboratory . . . . . General . . . .... Type approval testing. Television propagation. Cooperation with other groups. FREQUENCY ALLOCATION. Routing invisible traffic. . Radio paths differ. . . . . Radio hands, channels and frequencies Radio spectrum. Allocation considerations. Radio hou...ing Bhortage International aspects Allocations and the FCC. ::"ational frequenc:r allocation. FCC-Government frequency coordination International frequency allocations . '·Over~the.horizon"transmission Radio astronomy International marine standards ... International protection offrequency rights. International frequency usage data . . International conferences and meetings. FCC frequency list APPENDIX. Field offices Publications Past and present Commissioners XI Pde. 14~ 140 141 142 142 142 143 144 147 147 147 147 147 148 148 149 150 150 152 152 152 153 153 155 155 155 156 156 157 158 159 159 160 161 161 162 163 163 1M 165 165 165 161 167 168 171 Introductory Summary RADIO CAPSULES Radio's ever-increasing impact on the American way of life is attested by over 1.6 million Federal Communications Commission authorizations in that particular field. This is 200,000 more than in 1955. For every station which actually hroadcasts programs there are some 85 radio stations of other kinds. 'J1o illustrate: Water transportation is aided by 57,000 stations. Airtransportation utilizes 49,000 stations. Land transportationis facilitated by 128,000 stations. Industry is sened by 31,000 stations. Public protection requires 121,000 stations. Amateurs operate 150,000 stations. Oom.,m-on carrier"for hire" services use g,300 stations. Some of these stations have up to hlmdreds of associated mobile or portable units. Thus, the 342,000 authorizations in the nonbroad cast services cover about 1.2 million fixed and movable transmitters. The number of stations in the broadcast services now exceeds 7,000, including 3,000 auxiliaries. American homes have more broadcast receivers than bathtubs or running water. This country's 164 million receiving sets is more than 60 percent of the world's total. Xearly 39 million of these sets receive television. This is nearly 80 percent of the global figure. Four out of every five city homes and half of the farm homes in our country now have TV sets. This almost equals the number of homes equipped with vacuum cleaners, clothes driers and air conditioners collectively. Over 90 percent of our popu lation is within range of at least one TVstation. Operators who man the Nation's radio transmitters hold more than 1:1 million permits of different grades. In addition, there are almost 147,000 amateur-operator permits of various kinds. OTHER HIGHLIGHTS National Defense In addition to participating in various special defense projects for the military, the Commission is administering the CONELRAD 1 2 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION (OONtrol of ELectromagnetic RADiation) program. The latter nas the dual purpose of minimizing the navigational aid an attacking force of enemy bombers or guided missiles might obtain from our radio stations while, at the same time, permitting limited radio opera tion in an emergency. CONELRAD plans are now in effect for all buttwo services. Common Carriers Telephone.-The telephone industry continues to establish new highs. Over 3 million telephones were added in calendar 1955 to bring the total to over 56 million. By mid-1956 the number had risen to 58 million-about 1 telephone for every 3 persons. At the close of 1955, the industry's gross investment was $17.5 billion and its annual revenues reached $6 billion for that year. The Bell System does about five-sixths of thisbusiness. The entire industry handled a daily average of 205 million local calls and 7.1 million toll calls compared with 186 million and 6.6 million, respectively, in 1954. Telephone calls average about 146,000 a minute. The Bell System operates 8.8 million miles of telephone toll circuits overmicrowave. Italso furnishes 73,000 miles of broad-band channels, mostly by radio, to provide network service to about 400 TV stations. Over 600 mobile radiotelephone systems are in operation. Eighty-seven percent of Bell telephones and 65 percent of independ ent telephones are dial operated. Sixty-five communities can dial long-distance to 16 million telephones in 17 large metropolitan areas. On October 31, 1955, the 2 largest independent telephone systems merged to form the General Telephone System, with 2.5 million tele phones in 30 States and domestic and foreign manufacturing and other interests. On March 9, 1956, the Commission ordered an investigation into the lawfulness of tariffs applicable to leased and private line servi""s (exceptbroadcast), including those ofWestern Union. On Jauuary 20, 1956, it approved, on an interim basis, a revision of the procedures used by telephone companies for allocating investment and expenses between intrastate and interstate operations. This will I'educe annual intrastate revenue requirements by $35-$40 million. Telegraplt.-Western Union reported land line revenues of $229 million for calendar 1955, an increase of 10 percent over 1954's aU-time high. Most of this increase resulted from private line service. Its gross investment was $311 million. Domestic telegraph volume increased slightly, to over 153 million messages. REPORT OF THE FEDERAL COMMUNlCATIONS COMMISSION 3 On July 27,1956, Western Union was permitted to file revised rates which it estimated would produce additional annual revenues of $9,657,000 to help offset increased wage agreements. The new rates became effective August 26. Automation, to the inclusion of reperforator switching and other refinements, continued to mark Western Union's modernization pro gram. Nearly 26,000 "deskfax" (facsimile) devices connect cus tomers with its central offices. In addition, there are teleprinter operated direct wires to 22,500 customers. "Intrafax" is used to link departments, offices and buildiugs for quick communication. "Ticket fax" transmits railroad tickets in 8 seconds. During the year Western Union installed an 18,000-mile electronic network connecting 61 cities for an industrial firm. Western Union filed to extend its present New York-Philadelphia Washington-Pittsburgh microwave relay system to Chicago. International.-Four cable and six radio companies furnish tele graph and telephone service between this country and nearly every point on the globe. They reported $68 million revenues and 549 mil lion words handled in calendar 1955, compared with $63 million rev enue and 521 million words in 1954. Although all their business in creased, special services to provide direct connection between customers showed the greater gain. International radiotelephone carriers had a new high of 1.2 million calls. The first transoceanic. telephone cables have been installed for long distance telephone service to Europe (opened September 25, 1956) and to Alaska. Twin cables to Hawaii are scheduled for completion in 1958. The Commission made its first grant for an international radio telephone service between Florida and Cuba using "over-the-horizon" (tropospheric scatter) technique. Safety and Special Radio Services The nearly 339,000 authorizations in these services reflect a gain of 39,000 over the previous year. At the same time, the number of as sociated fixed and mobile transmitters has grown from 768,000 to nearly 1.2 million. Outside of the amateurs, whose authorizations rose from about 140,000 to over 150,500, the largest authorization increase was in the land transportation group, which added 7,500 to make a total of nearly 28,000. Its transmitters increased from 161,000 to over 251,500. Next came the industrial group, netting nearly 6,000 to total 30,600 authorizatiolls with over 275,000 transmitters, or 55,000 more than the previous year. 4 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION About the same gain brought marine authorizations to about 57,000. Aviation added nearly 5,000 authorizations, for a total of nearly 49,000. Over 2,300 new grants brought authorizations in the public safety category close to 21,000, representing nearly 386,000 transmitters, or 184,000 more than in 1955. Applications in all of the some 50 types of safety and special radio services increased from 151,300 to 170,500. Radio is being harnessed to industrial and other business operations on a scale never before known. Its uses range from speeding trans portation of persons and things to checking production and processes. Less publicized uses include exploring for off-shore oil deposits and surveying highway traffic from the air. Broadcast Services The 1956 national political conventions and elections saw the largest l'adio and TV coverage in history. On May 21, 1956, the Supreme Court affirmed the Commission's au thority to limit the number of broadcast stations which may be per mitted anyone interest. The Commission expects to complete its special study of radio and TV network bl'Oadcasting by June 30, 1957. Aural broadcast station sales reached a new high when $3.4 million was paid for a New York station. The TV record was set in 1955 when a Pittsburgh station sold for over $9.7 million. TV.----,l~major Commission action was taken on June 25, 1956, ,,,hen it announced a long-range and interim plan to promote comparable competitive TV facilities and extend TV facilities throughout the nation. It invited comments on the possibility of ultimately shifting all or a major portion of TV operation to the UHF band coupled with an immediate research and development program to increase the range and coverage of UHF stations.~Ieanwhile,it increased the maximum power of UHF stations from 1000 to 5000 kilowatts and began con sideration of petitions to eliminate local VHF channels in order to create improved opportunities for lJI-IF broadcasting, and to assign more VHF channels in other localities. As a further aid in bringing TV service to small communities, it authorized, beginning July 2, 1956, a new type of ecollOluical low power station called a "translator". Such stations pick up and re broadcast, on the upper 14 UHF channels, programs of other VHF or UHF stations within range. Three initial grants were made September 6. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 5 Another type of authorization enables so-called "satellite" TV sta tions-mostly UHF-to dnplicate the programs of other stations in order to establish local service. The Commission is also considering "booster" operation which con templates the use of low-power transmitters to simultaneously transmit or "boost" programs of another station to areas which other wise would not get service. Proposals for subscription TV are still under Commission study. It is likewise considering requests that its jurisdiction over community antenna TV systems be extended beyond present control of excessive radiation. At the close of the fiscal year (which almost coincided,~iththe 15th anniversary of the start of regular TV service), 609 commercial TV stations held authorizations, 496 were on the air, and 128 applications for new stations were pending. Stations equipped for colol'casts approached 300. As of the same date, 41 other TV stations held noncommercial educational authorizations, of which number 20 were on the ail', and 11 new station applications were on lu:.nc1. The Commission, for the first time, made an educational VHF channel available for commercial use because there WaS no prospect of its educational use in the fore seeable future. However, it substituted a UHF channel there for possible educational use. The total number of TV channels reserved for education remains at 258. AM.-For the first time, AM authorizations topped the 3,000 figure (3,020). Of these, 2,896 were on the air, and 389 new station appli cations awaited action. 'York on TV matters necessitated carrying oyer disposition of the "clear channel" and "daytime skywave"' proceedings. F11'J.-cls a means of helping F:1I bl'Oadcasters obtain auditiomll revenue, the Commission, effective July 1, 1955, enabled them to render subsidiary program service to subscribers. This is in the nature of '''background music'; to commercial establishments,"transitcastillg~~to passengers in public vehicles, and "storecasting" to stores. Of 546 commercial F.;\f stations authorized, :')30 weTe in operation anel10 applications were pending. This waS a net decrease of Gauthor izations and 10 operating stations from the previolls year. On the other hand, nonconunel'cial educationalF~Istations con tinued gains, from 129 authorized and 124 operating in 1955 to 136 authorized and 126 operating in 195f.;' ":isconsin and A.labama have statewide FM educational networks. 404807-::J6-2 6 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Field Engineering and Monitoring Besides policing the spectrum for technical violations, the Com mission's 18 monitoring stations engage in national-defense projects. This, the only national listening network, took nearly 118,000 bearings during the year. A total of 147 caseS of illegal radio operation were detected and located. This waS 42 more than in 1955. Assistance was given to 117 ships and planes in distress. FCC field engineers, operating through 24 district offices, made nearly 10,300 inspections of radio stations of all types and served more than 3,600 citations. Nearly 20,000 complaints of interference were received, of which number nearly 11,500 were investigated. The rest were resolved by local cooperative effort. Commercial operator authorizations issued in the field totaled 219,000 and 52,600 amateur operator examinations were given. The number of applications requiring consideration of antenna hazard to air safety reached a new high of 13,300. A hearing was held on a proposed 1,933-foot TV tower. The advisahility of grouping antennas on "antenna farms" is still under study. The Commission's six regional field offices were discontinued at the close of the fiscal year. Research and Laboratory The Commission's technical research is concerned largely with the study of radio propagation and the development of engineering standards for transmitting and other radiating equipment. Also, under its obligation to promote new uses for radio, the Commission encourages experimentation and, itself, must keep abreast of technical developments in radio and wire communication. The Commission's laboratory tests certain equipment for type approval prior to its manufacture in order to minimize the possibility of interference when it is put into use. Frequency Allocations Domestic implementation of international agreements for the orderly use of frequency bands, as well as finding frequencies within those bands for new or expanding services, poses complicated engi neel"ing problems. The master list of FCC frequency assignments for most of the radio services now approximates 157,000 machine record cards. The Commission participated in 11 international conferences during the year and is preparing for 30 projected such meetings. Activity at the national level is reflected by intensified contact with REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 7 industry groups, and mounting petitions and other proceedings involving frequency changes. Commission On February 26, 1956, the President redesignated George C. McConnaughey as Chairman for the remainder of the latter's term. Richard A. Mack became a Commissioner on July 7, 1955, and T. A. M. Craven (for the second time) on July 2, 1956. The Commission was appropriated $7,323,000, or $400,000 more than the year previous. Personnel remained about 1,100, with one third engaged in field engineering work. PROBLEMS Radio's growing pains are giving the Commission many regulatory headaches. To mention some: Expansion of communication facilities is causing acute congestion in some frequency bands, and requests for special frequencies for new services further emphasize the housing shortage in certain parts of the spectrum. New techniques may make it possible to double-up on some fre- . quencies now in use, while new equipment holds promise of operating on stilI higher frequencies. However, the complicated problems in volved in single sideband, split-channel and over-the-horizon trans mission, as well as extension of microwave facilities, require exacting technical consideration. Meanwhile, the mushrooming growth of transmitters coupled with the mounting popularity of electronic devices is causing an unprece dented volume of interference which must be brought under control. Kaleidoscopic developments in the various fields of electrical com munication keep covering ruIes and regulations in a stage of continuing revision. Developments in the telephone and telegraph industries require more attention and study. The national-defense program imparts particular projects and other responsibilities. United States concern with global telecommunication matters re quires FCC preparation for and participation in many international conferences. Besides furnishing material to and testifying before various Con gressional committees, the Commission is called on for comments on numerous legislatiYe proposals. Some of these requests involve dupli cation of effort. During the fiscal year the Commission devoted oyer 8 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 900 man-days (3ih man-years) in preparation, attendance and fol lowup work in connection with Senate and House hearings. An average of 1,800 applications, not to mention many petitions and other filings, are received by the Commission each business day. Competition and interference considerations require 35 percent of all applications for new AM and TV stations to go to hearing. Hearings averagc about two each workday. The intensity of competition is reflected in the number and volume of pleadings filed in proceedings. Many of the arguments are not only repeated in different filings but are overwritten and unduly clog the Commission's adjudicatory process. Also, more procedural steps are required of the Commission than of any other Federal regulatory body. Another obstacle to more efficient functioning is a 1952 amend ment to the act which precludes the Commissioners from consulting its own staff experts on legal and technical problems involved in adjudicatory proceedings in which they have participated. Remedial legislation is needed. Losing applicants continue to fight in the hope that some new cir cumstance may be developed which will lead to rehearing. The number of court cases involving the Commission has· increased nearly 30 percent. Court dictum requiring the Commission to hear practically all protestants to grants made without hearing has delayed new services and added to the administrative process. In certain rehearings ordered by the court it is difficult to delineate the scope of the reconsideration involved. The Commission recently clarified the overall TV situation but in doing so it invited a flood of petitions for channel changes. In con sequence, the time require(l to complete rule making may be increased by one-third and, further, more deinterlllixture arguments will prob ably go to court. Concentration on TV's general difficulties precluded Commission attention to some other weighty broadcast problems, such as subscrip tion TV, TV communit.y antennas, and the AIH "clear channel" and "daytime skywave" proceedings. Nearly 25 percent of all pending broadcast applications are over a year old. Illegal TV "booster" stations and the irresponsible use of radio on 81na11 boats are giving the Commission nmch concern. Enforcement problems, especially in the nonbroadcast services, indicate the need for sterner llleasures. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 9 In general, insufficient manpower makes it difficult to keep up with the swelling routine, not to mention high-policy problems which re c[uire studied consideration aud resolution. In consequence, the Com mission has had to curtail certain activities, particularly in field engineering and technical research, and to put off some considerations of future import in order to handle more pressing current problems [llong with its multiplied spot business. FEDERAL COMMUNICATIONS COMMISSION Organization Chart as of June 30, 1956 'l'HE COMMISSION I C-=CHAJR~(AN--~ OFFICE OF ADMINISTRATION -- I Budget and 1<'iscal Division I OFOrganization IiDd Methtlds Division OFFICE OF OFFICEOI~'OFFICE PerSOliliel Dirision OPINIONS AXD RBPORTS AND HEARING Administrative Services Division REVIEw INFORMATIOX EXAMINERS OFFICIi', OFOli'J<'ICJ'~OF O:H'FICE OF Gl<1NERAI,COVNSl~T,'rIlE SEcm,n'ARY CHlF.FE~GIN.l!JER -- -- --- Litigation Division Dockets Division Fl'e{IUency Allocation and Legislation, Treaties and Minute Division 'l'n'at;r Division Rules Division Tc{>lmlcal Assistance Division Technical Research International'relecommunications Division Settlements Division Laboratory DJvision Librar;v Division MulIaRd Files Dfvf8fon Messenger Division • FIF.LDENGINEI~:RINGCOJll'lfON CARnmH SAI"II;TY ANV SPECIAl, BHOADC,\ 8'1' B-UREAU AND MONITOHINU nrTU1AI; HADIO HF,RVIClilH -- HUHKU} -- BUREAU llroudcast Facilities -- Illh~rnati(}nalDlyision -- Di.b..lon Fip]{l Ollentting ]H"il'j(lll 'rdegraph Divl810ll Aviation~visionJ{f'lleWallln(lJ'l'ransfer Engineering Division 'l'elephone DIvision Industrlal.lvisioll DivisIon llllilpection and Domestic Radio Facilith's Land 'rransportation Division Economic!:> Division Examination D.ll'lsj')fi Division Marine Division Rules and Standards Monitoring Dlvhdon Office of Accounting S;Ystems Public Safe(y and DivIsion Statistical Branch Amateur Division License Division License Branch Law tlluj EnforCl'llleut Hnlt OJflcc of Field Coordiuator >-' o General COMMUNICATIONS ACT OF 1934 Jurisdictionover wire and radio communications was once exercised, in different aspects, by the Department of Commerce, the Post Office Department, the Interstate Commerce Commission and, later, by the Federal Radio Commission. Developments necessitated centralizing these regnlatory functions in a single agency. The Communications Act of 1934, signed on June 19 of that year, created the Federal Communications Commission for this purpose. The act has been amended at various times, particularly in 1952 when substantial changes were made in the Commission's organiza tional structure and procedures. PURPOSES The stated purposes of the act, as amended, are "regnlating inter state and foreign commerce in communication by wire and radio so as to make available, so far as possible, to all the people of the United States a rapid, efficient, Nationwide, and worldwide wire and radio communication service with adequate facilities at reasonable charges ... the national defense ... promoting safety of life and property through the use of wire and radio communication .••" APPLICATION The act applies "to all interstate and foreign communication by wire or radio and all interstate and foreign transmission of energy by radio, which originates and/or is received within the United States, and to all persons engaged within the United States in such communi cation or such transmission of energy by radio, and to the licensing and regulatingofall radio stations . . ." This authority extends to the territories and possessions of the United States, but not to the Canal Zone. REGULATION In discharging these obligations, the Federal Communications Commission Supervises rates and servioes ofinterstate and international teleplwne and telegraph oompanies,. 11 12 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Establishes and enforces1~,lesand regulations governing the different radio services, radio operators, and common carrim>s subject to its jurisdiction; Allocate8 bands of frequencies for different radio services,. AS8igns particular frequencies and callsignal8 to individual Tadio 8tationsj Authorizes and licenses 'radio transJrdtters; Licenses operators ofradio transmitter8" Encourage8 more effective and 1videspread 1.£8e of radio,. P,'omotes the utilization of radio for protecting life and pmperty,. Participates in formulating and administering domesti cally the wire and radio provisions of international agree ments to which the United States is a party,. and H elp8 coordinate electrical communication facilities 1vith, and gives technical assistance to, the national defense program. The Commission does not regulate purely intrastate (within-state) wire service which is under the jurisdiction oT the respective State utility commissions. However, it does license all"radio operation sillce evidence shows, and the courts have held, that radio transmission has effects beyond State borders. Communications facilities operated by the Federal Government are not under Commission control. COMMISSION As created by Congress, the Federal Communications Commission is an independent Federal agency and, as such, reports directly to Con gress. It exercises certain quasi-judicial and quasi-legislative func tions in addition to administrative duties. Its practices conform to the Communications Act of IDi34, as amended, to the Administrative Pro cedure Act, and to other applicable laws. The Commission consists of seven Commissioners appointed by the President by and with the advice and consent of the Senate. One of these Commissioners is designated Chairman by the President without Senate confirmation. The Chairman is the chief executive offtcer of the Commission. Commissioners are appointed for 7 years, except in filling an unex pired term. The terms are so staggered that only 1 terminates in a year. Not nl0rc than 4 Commissioners may be members of the same political party. The Commissioners function as a unit, directly supervising- all Commission activities, with delegations of responsibilities to Com missioners as individuals or committees, and to staff boards or units. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 13 The Chairman is responsible to the Commission for the general ad ministration of the internal affairs of the Commission. All policy determinations are made by the Commission as a whole. On February 27,1956, the President redesignated George C. McCon naughey as Chairman, effective March 22, 1956, when his original designation expired, and throughout the rest of his current term (to June 30,1957). On May 18, 1956, the President appointed T. A. M. Craven to succeed Commissioner Edward M. 'Vebster, whose term expired on June 30 of that year. Confirmed by the Senate on June 22, Commis sioner Craven took office .July 2. He is the first person to receive two separated appointments to the Commission. As noted in last year's report, Richard A. Mack succeeded Frieda B. Hennock as a Commissioner on July 7, 1955. A list of Commissioners as of June 30, 1956, with notation of the expiration of their terms, appears on the back of the title page to this report. Past and present Commissioners, and their tenures of office, are listed in the appendix. STAFF ORGANIZATION Pursuant to a 1952 amendment to the Communications Act, the Commission staff is organized into integrated bureaus on the basis of the principal workload operations, and other offices essential to its functioning. In consequence, the four chief bureaus a.re self-contained operating units with their own engineers, lawyers, accountants, and other neces sary personnel. These are the Common Carrier Bureau, which super vises telephone and telegraph matters; the Safety and Special Radio Services Bureau, which administers the nonbroadcast and noncommon carrier radio services (except for common carrier aspects of marine services) ; the Broadcast Bureau, which superintends the AM, FM, TV, and other broadcast services; and the Field Engineering and l\fonitoring Bureau, which is responsible for field engineering work, including radio station inspections, nlonitoring, operator examina tions, technical studies, and certain enforcement activities. In addition there are seven offices; namely: Office of the General Counsel, whose functions as chief legal adyiser to the Commission cover matters involving litigation, legislation, rule making, and administrative practices presenting legal problems. Office of the Chief Engineer, whose duties deal with the technical aspects of frequency allocations, radio rules andstandards~research and experimentation, and problems of interference. Office of the Secretary, who has charge of official records, processing of correspondence and official documents, and certain functions re lating to the internal management of the Commission. 14 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Office of Administration, under the direction of the Chairman, re views the programs and procedures of the Commission and handles its budget, personnel, and administrative services. Office of Hearing Examiners, which conducts hearings and prepares and issues initial decisions. Office of Opinions and Review, which assists the Commission in the preparation of decisions in cases of adjudication pursuant to Com mission instructions, and Office of Reports and Information, which is the central point for issuing public releases and information. The Commission has delegated authority to its operating bureaus and certain other offices to take routine actions which are largely auto matic under the rules and do not involve policy considerations. This has relieved the Commissioners of considerable paperwork. There was formerly an Office of Chief Accountant, but this was abolished as of October 31, 1955, and its accounting functions inte grated into the operating bureaus. The Accounting Systems Division and the Economics Division of that office were, accordingly, trans ferred to the Common Carrier Bureau and the Broadcast Bureau, respectively. Commission administrative order of April 25, 1956, defined the authority and responsibility of the Chairman with respect to the in ternal affairs of the Commission. The functions of the Office of Administration were, accordingly, redefined on May 16 thereafter. For lack of continued specific appropriation, the Commission dis continued its Field Engineering and Monitoring Bureau regional offices on June 30, 1956. These offices were located at New York, Atlanta, Chicago, San Francisco, Seattle, and Lanikai, Hawaii. Dis trict engineering offices are maintained in those domestic cities, as well as in Hawaii. A Domestic Radio Facilities Division was created in the Common Carrier Bureau, effective July 1, 1956. On July 2, 1956, new Industrial and Land Transportation Divisions were created in the Safety and Special Radio Services Bureau, at which time the Industry and Commerce Division and the Authoriza tiori Analysis Division were abolished. Other staff changes during the year included creation of the posts of Associate General Counsel and Assistant Chief Hearing Examiner, and the appointment of an Administrative Assistant to the Chairman. In addition to his other duties, this assistant serves as liaison repre sentative with Congress and as Security Officer. An organization chart of the Commission as of June 30, 1956, appears as a separate page of this chapter. nEPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 15 PERSONNEL With the exception of a few positions exempted by the Communi cations Act, employees of the Commission are under Federal civil service. Its personnel totaled 1,116 at the end of the fiscal year, which was 22 more than the previous year. About one-third (327) were engaged in field engineering work. Distribution was as follows: Washington Field Total Commissioners' offices. .• ._. ._. •__ 2m:~:gp~::sEa~:n~ev~e_~·:======: ==:=:::::::::::::::::::::::::: Office of Reports and Informatlon__ . _ Office of Adminlstrntion•. ._. _ Office of Secretary • . _ Office of General CounseL • • _ Office of Chief Engineer •••_. • . _ Common ClUTier Bureau. . __ . ._ ••_0 _ Safety and SpecIal Radio Services Bureau_. _ Broadcast BurelML _". ••_. _ Field Engineering and Monitoring Bureau _ Special Network Study Group__ ._. •• _ 47 26 21 4 81 62 25 62 83 JJ8 160 59 15 o o o o o o o " 26 o o ""o 47 26 21 4 81 62 25 84 109 JJ8 160 364 15 Biographies of employees added during the year, as well as a list of employees leaving during that period, are being furnished Congress as a mimeographed supplement to this printed report. That informa tion is required by a 1952 amendment to the act. APPROPRIATIONS AND EXPENDITURES Approximately 90 percent of the Commission's expenses are for personal services. It received appropriations amounting to $7,323,000 from Congress in fiscal 1956. In addition to the regular appropriation ($6,870,000), $453,000 was required for personnel pay increases previously voted by Congress. Obligations against the 1956 funds were: Appropriations Regular appropriation (salaries and ex· penses)~$6,870,000 Supplemental (pay increase) __~________4.53,000 Total appropl'iatlons .__ 7,323,000 Obligations ¥~~~_~~~_1~=======================::$6,6~g:~ Transportation of things ••• 14,444 Commun1cations scrvtces. .___ 183, oro Rents and utilities. •• • 55,185 Printing and reproductlon_. _._.__ •• 26,649 Other contractual service8 • •• 123,120 SU'Pf!Ues and rnaterials •••• 114,567 Equipment. •••••••_. • 87,355 Land and strnctures•• ••• • 1l,466 Awards and lndcmn1ties ._.. 1,419 Totalobllgat1ons.~.._••_.~._7,320,125 Savings, unobligated balanoo •• 2,875 Total.. ••_••• ._ 7,323,000 16 REPORT OF THE FEDERAL COMMUNICATIOKS COMlIIISSION The sources of these funds and the authority for expenditures there under ,,-ere Public Laws 94, 112, and 533, 84th Congress. CUTTING PROCEDURES AND PAPERWORK To keep up with its lllounting vlOl'kload, the Commission is continu ing to simplify procedures and paperwork to the fullest extent possible consistent with basic legal requirements. This not only helps speed its o'''n procedures hut is a convenience to the industries which it regulates. The Commission has ulnended its own rules to cut nonessential ad lninistrative corners. This includes abbreviating forms, simplifying" and clarifying rules, eliminatillg reports no longer required, and taking various steps to expedite the hearing process. In some cases itlw.~ requested legislation to modify procedural requirements of the Com munications Act believed to be outmoded or unduly burdensome. The application procedure is under continuing review to eliminate steps made unnecessary by the development of new techniques and equipment. Form simplification is contributing to time and labor saving. For exanlple, in the aviation and marine radio services 2 composite forms now replace 14 separate forms. This is helpful to more than 100.000 license holders, besides reducing paper handling by the Commission. Another step, which afrects well over half a million mobile stations, involves doing away with the practice of treating each of these tran::- mittel's as a sepm'ate station in favor of licensing them as systems. This means that hundreds of portable transmitters operated by the same party can be licensed on a single piece of paper. APPLICATION AND HEARING PROCEDURE Even with application forms and the hearing process streamlined insofar as possible, a contested or otherwise questionable application must go through a time-consuming procedure which is dietatec1 in large part by higher authority. For the Commission's hearing process must not only conform to the general Government practices required by the .A..dministrative Pl'oeedure Act, but also to further and more exacting pro,~sionsof the Communications Act amendments of 1952. The latter prescribe that, in general, decisions on noncontested ap plications be marIe within 3 months from the date of fHing, and hE'al,jn,:l' cases 1"1thin 6 months after hearing. 'Vith so many cases onit~ dockets, not to mention cases involved in rule making- andlitjg<1tion~ the Commission has difficulty in meeting this schedule in all hearing matters, This is particularly so in broadcasting. In consequence, fl. highly competitive case requires at least a year just to go through the prescribed normal application and hearing pro- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 17 cedure, not considering further delays dUe to crowded dockets and the extra time needed to handle many intervening filings. To begin with, all applications must be complete in order to be accepted for filing. Omissions and errors on the part of the applicant necessitate an exchange of correspondence before the application is in proper orderto be accepted. Next, no broadcast application can be considered until 30 days after it has been accepted. This is to insure adequate notice to all those who may be interested and to provide time for staff study and processing of applications in their technical, legal, and financial aspects. ·Where two or more applications are competitive, a hearing is mandatory. A hearing is usually necessary if an application does not meet the rules, or presents serious interference or other considerations. However, before any application can be designated for hearing, a 1952 amendment to the act requires the applicant to be notified that he faces a hearing, and why, and he is given 30 days in which to reply. After that, if a hearing cannot be avoided, the application is desig nated for hearing. But the exact date of the hearing is usually set later, depending upon finding a place, in turn, on the Commission's crowded docket. ·When a hearing date is set, the applicant is given 60 days in which to prepare. Most hearings are conducted by hearing examiners. After the hearing date is set, there is an initial prehearing conference at least 20 days in advance of that time, and a second prehearing con ference is held at least 10 days before the hearing actually begins. The duration of a hearing may vary from part of a day to several days, depending upon the nature of the case. After the close of a hearing, the parties involved have 20 days in which to file proposed findings of facts and conclusions. The hearing examiner then reviews all the testimony and exhibits, after which he issues an initial decision. How quickly this can be done depends upon the complexities of the proceeding, consideration of exceptions, and the examiner's prior workload. ·Within 20 days after an initial decision, any party can ask for and must be given-oral argument before the Commission. Here, too, the date of oral argument depends upon the Commission's calendar. On conclusion of the oral argument, the Commission I'equires time to study the evidence and to reach a decision. The latter can result in tHlopting, modifying, or revel'sing the initial decision. ·Within 30 days thereafter, any party to the proceeding may petition for rehearing. Such a petition requires further study and decision and, possibly, a new hearing with all its attendant procedures. Court appeals can be taken within 30 days following the Commis sion's final decision. 18 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION A particular detriment to finalizing docket matters expeditiously is the flood of voluminous and repetitious filings in highly contested cases. They range from exceptions to examiner's rulings to petitions for reconsideration. These reqnire exacting analysis and disposition because the law provides, and the courts have held, that the Commis sion must, in effect, consider and dispose of every argument in adjudi cating a case. The fact that several hundred exceptions may be embodied in a single petition is one example of the time-and,effort consuming factors which mitigate against quicker final decisions. On January 12, 1956, the Commission issued a hearing manual to be used as a guide for its hearing examiners and attorneys and members of the bar in the introduction and use of evidence in comparative broadcast proceedings. In May of that year two examiners sat in certain protracted and complicated hearings. On May 21 a special FCC committee was appointed to review the Commission's policies in adjudication matters in the light of recom mendations of the President's Conference on Administrative Pro cedures as well as the Commission's own experience. Attention was to be given to reducing the time consumed in hearings and the size of hearing records, also quicker disposition of many appeals from examiners' rulings and the large number of pleadings for various kinds of interlocutory relief. In some instances interminable numbers. of papers are filed by parties concerning a single simple issue of fact or law, resulting in a staggering bulk of proposed findings ancI exceptions. Docket statistics for fiscal 1956 follow: Pending Dpslgnated Disposed Disposed PPIHlinlt Class June 30, 10' of without of follow- June 30,. 111M hearing hearing Ing hearing 1%6 TV broadcast- __________________ 123 37 11 '" 99 AM broadcast...__________ --------------- 122 153 88 22 165 FM broadcasL_____________________ ._+._. 0 0 0 0 0, Other broadcast. _________ ._._._. __________ 6 5 1 1 9 Total broadcast. ____________________ 251 196 100 73 274 Safety and speciaL" -------------- 15 44 36 3 20 Common carrier_. ______ . ____________ ._ . __ . 39 42 11 I 25 .., Joint and generaL ________________________ • 51 30 26 I 5 50> Total nonbroadcast__________________ 105 116 73 33 115 Petitions, rules, etc__________ '+••__________ 57 35 19 21l H Grand totaL _._.___________ •___ • ____ 413 347 m 135 433-. During that period 90 initial decisions, covering 133 applications,. were issued, including 39 in AM and 24 in TV broadcast; 2 safety and special; 20 common carrier, and 5 jointand general. 'At the close of the fiscal year there were 10 hearing examiners, or 2 less than at the same time the previous year. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 19 LITIGATION Section 401 of the Communications Act confers upon the United States district courts jurisdiction to enforce the act and the orders of the Commission. Judicial review of Commission actions is provided for in section 402 of the act. Section 402 (a) gives jurisdiction to the courts of appeals over suits to enforce, enjoin, set aside, annul or suspend any Commission order with the exception of orders granting or refusing applications for licenses. Section 402 (b) provides for direct appeal from other orders of the Commission to the United States Court of Appeals for the District of Columbia Circuit. Most of the cases involving review of Commission action are instituted in the latter court. During the fiscal year there were 93 Federal Court cases in which the Commission was a party. Sixty-seven of these were instituted during that period-61 in the court of appeals, 5 in the Supreme Court, and 1 in the district court. The other 26 cases were pending at the beginning oftheyear. In many instances the appeals court and the Commission were con fronted with either (1) appeals, brought separately under 402 (a) or 402 (b) or both sections, by one party from Commission orders or decisions which were related from the standpoint of judicial review, or (2) appeals by different parties in the same or very similar situations, or (3) a combination of (1) and (2). In all such instances, the partic ular group of cases involved were consolidated by the conrt for argu luent and a single decision, and were treated by the Commission in a single answering brief. Examples are the Ooastal Bend cases in which the 402 (a) and 402 (b) appeals of SIIveral similarly placed appellants were answered by the Commission in a single brief and were treated by the court in 1 decision; and the Tampa Times-Orange Tele'vision cases in which the 2 losing TV applicants appealed separately from the Commission's decision awarding the contested permit to a third rival. Since, however, the cases involved were separate actions, they are listed separately hereafter. Such separate consideration has also been given caseS of this nature pending before the courts at the close of the fiscal year. In addition to cases in which the Commission was a party, 51 cases involving possible criminal violations of the act were referred by the Commission to the Department of Justice and were pending in that department at the beginning of the fiscal year. This figure includes 46 cases of possible obscenity, sent to the department for its examina tion and formulation of a policy as to prosecution of such cases. Eight other cases were referred to the Department of Justice during the fiscal year. In disposing of 5 of these cases, the courts imposed 20 REPORT OF THE FEDERAL COMMUNICATIONS COM1dCl'al CommunicatiOJls Com ml88ion, 2;-{O Ji'. 2<1 ':W-i, cat. den., ;-{;jt} U, S. 1007; Southside \'irgIuia Tcleca8tin,q Corp. v. Federal Communications Commi88Ioll, 228]~.2<1 (j44, cert. den., 3;'0 U. S. 1001; l'mnpa Times Co. v. Federal Comm11nicaUOJIs Commission, 280 I!'. 2d 224; lVJIV-'['V, Inc. v. Federal CornJnunication8 Commis,'1ion, 231 ]\ 2d 72ti; In tenwtional Hroadcustinfl Corp, Y. l>'ederal Communications Commi.'1sion, No. 12749; Sacramento ErOUllcasters v. Federal Communications Commission, No. 12854), the court of apPl?uls affirmed the Commission. It pointed out that the issues raised in the cases fall "in that area in which'" '" '" the Commission has been given wirle po\vers of judgment" b,\' theCon~ressand thnt "so long as (the Commission) ohsern>s fill procedural requirement!';, com;irlN'H the issueR, rpuehes reasoned conclusions, and renders reHHoned judgments, courts cannot Hupenlose their opinions upon these matters." 'l'he cottrt found that the Commission had met this test in each of the seven cited cases. Post hearing changes.-In two cases, The p,'ntcl'fJl'isc CO. Y. Federal (!ommu'I1i catiot18Commi.~.<;ion,281}~.2d 708 and lV. S. BUff{>rflel-dTheatrc.~,Inc., et al. Y. FederalCommunicatiOJI"~,Nos. 12527, 12fi28, 12666, 12667, 12752, 1275.'3, the ap peals court took up another flflpect of the comparative hearing process-the ques tion of the effect of a change in the winning applicant's composition 01' 'l'V proposal ufter the issuance of the Commission's final decision and dming the pendency of a petition for rehearing filed by the losing applicant with the Com mission. In the Bnterpri.'w cnse, the court held that tlip COlllmission hus juris· diction to reconsider its comparative deciflioll in yie\\' of the change and that, 404807-56--3 22 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION in the circumstances of that case, it would be an abuse of discretion not to do so. In the Butterfield case, the Commission bad considered the changes in the winning applicant's proposal and found that no cause existed for exercising its discretion to set aside the grant and reopen the comparative proceeding. The court held that this determination was improper in light of the new developments and, accordingly, remanded the case to the CommissIon for further comparative proceedings. At the close of the fiscal year there were three cases before the appeals court for decision or argument involving, among other matters, the question of the effect of a change in either the winning or losing applicant during the pendency of the appeal. See Southland 'l'elevfs;on Company v. Federal Oom munications Oommiss-ion, No. 12021; Anth(ffl,y Wayne Broadcu,stin.g Y. Federal Oommunications Co-mmi8sion, No. 13112; and McClatchy Broadcusting CO. Y. J;'ederal Communications Oommts8ion, Case Nos. 12637 and 12470. Allocation rule-making cases.-The Commission'srule~makingactivities in the TV field were also the subje<:t of court litigation. Several UH11' stations operating in areas then having no e.xisting VHF stations, because of the lengthy time period needed to resolve the comparative hearings involving the VHF channels, appealed from the denial on November 10, 1955, of their rule-making petition to deintel'mix their res})edive communities h.y substituting a UHF channel for the assigned VHF frequency. 'l'heUH}I~operators also appealed from the grants subsequently made to VH]J' applicants in such communities after denial of their requests for a stay of such grants pending the outcome of a general rule-making proceding instituted ,on November 10, 1955. The appeals court, in CoastalBen(~Television Co., et al. v. Federal Commu,nications Commission and United Statcs, Nos. 13034, 13030, 13038, 13039, 13056, 13057, 13058, 13065, affirmed the Commhlsion's adions. The court pointed out that the Commission's decision to adhere to its present allol'ation plan for the time being, as reflected by its refmml to institute the requested "freeze" on VHF grants so as to prevent competition ,"vith existing UHF stations, came "well within its statutory author ity," and was, in fact, peculiarly the sort of question committed to the discretion of the expert administrative agency. In Van Curler Broadcasting Corp. v. United States and Federal Communica tions Commission, Nos. 12987 and 12989, decided July 9, 1956, the court consid ered another rule-making matter "closely akin" to that raised in the Coastal Bend cases. Appellants in Van Curler, aloo UHF operators, sought review of the allocation of a VHF channel to a community in their area. The court, in affirm ing the Commission's order, pointed out that the Commission had follOlved the procedure provided for in its 1952 basic allocation report (sixth report and order), that the basis and purpose of the order were amply stated, and that the reasons given were rational. That being the case, the court stated, its reviewing function was at an end. Section 309 (c) protect specincity.-In two cases, the court of appeals inter preted that portion of 'Section 309 (c) of the act which requires parties in interest, filing protests to Commission grants made without hearing, to specify with particularity the facts relied upon to show that the grant is not in the public interest. In Federal Broadcosting System, Inc. Y. Federal Communications Corn mf.ssion, 225 F. 2d 560, the Commission had denied a protest as not haVing suf ficient particularity to satisfy the statutory requirement. The court ruled that under the statute "what is required is merely an articulated statement of some fact or situation which would tend to show, if established at a hearing, that the grant of the license contravened public interest, convenience and necessity". REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 23 Applying that test, the court found that appellant's protest raised at least one issue with sufficient particularity to require that a hearing on the protest be granted. Similarly, the court remanded a second Federal case (Federal Broad casting System, Inc. v. Federal Communic(l,tious Commission, 231 F. 2d 246) to the Commission, finding on the basis of the above standard that the Commission had again el'red in its determination of lack of sufficient particularity as to this protest. InterventiQn.-In Elm Oity Broadcasti1lg Corporation v. Feller(,Z Communica· tions Commission, Case No. 13002, the court of appeals was called upon to deter mine whether the Commission may, consistent with the newly amended section 309 (b) of the act, deny a petition for intervention timely filed by a party in interest to a Commission proceeding. TheComlllis~ionhad denied intervention because the appellant had made no showing that its intervention would be of assistance to the Commission. in determining whether the public interest would be served by the grant. 'rhe court ruled that the Commission erred in itsinter~ pretation of 309 (b) ; that, if a persone~tablishesthat he is a party in interest, the Commission hfts no discretion but togr~tnta timely request for intervention. CQmparative common 'Carrier decisiQual standards.-InT(~lallserphone/·nG. v. Federal COn/l/IIIHications Commil8,'1ion, 231 F. 2d 732, the court ruled that the Commission, in determining- which of two mutually eXclusive applications for a one-way radiopaging signal station should be granted, must consider the rates each applicant proposed to charge for its senice, since the relative costs to the public are pertinent to the selection of the better applicant from the viewpoint of the public interest. Inasmuch as the Commission had not considered the rate factor, or in any event had not adequately set out the basis for its conclusion that no preference between the applicants existed on this score, the case was remanded to the Commission. LEGISLATION Seven bills directly affecting the Commission were enacted by the 84th Congress dnring the fiscal year. Two of these had been recom mended by the Commission. Public Law 391',"approved January 20,1956, provides that the Commission may deny a protest, after oral argument, without a full evidentiary hearing, where the Commission finds that the facts alleged by the protestant even if proved true would not be. ground for setting aside the grant. '1'his, in effect, permits the Commission to consider a protest as on demurrer, a procedure which heretofore has been of 'doubtful legality. The law also permits the Commission to keep a protested grant in effect pending the outcome of the protest hearing when the Commission finds that the public interest so requires. Public Law 914 approved August 2,1956, amended seetions 212,219 (a), 221 (a), and 410 (a) of the act relating to the CommiRRion's regulatory authority over communieations eommon earriers. 'rhe law provideR for proceduralflexi~ bility ill the former hearing requirements in the cases of interlocking directorates and consolidation of common carriers, and clarifies the powers of Commission representatives 011 joint boards. The other five laws enacted were: Public Law 947, as originally introduced, and passed by the House, would require the installation of an automatic radiotelegraph call selector on eertain 24 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION cargo vessels. As enacted August 3, 1956, the bill requires this Commission, the Maritime Commission, and the Coast Guard to study the need for and feasi bility of installing such devices and to report to Congress byMal~chI, 1957. Public I.aw 985, approved August 6, 1956, amends the act so as to require certain vessels, carrying more than six passengers for hire, be fitted with a radiotelephone installation. Public Law 688, approved July 11, 19G6, amends section 1343 of title 18, Vnited States Code, to prohibit fraud by wire or radio in foreign as well as interstate commerce. Public Law 854, approved July 31, 1956, in adjnsting the rates of compensation of the heads of the executive departments and of certain Federala~e-ncies, increases the salary of the FCC Chairman from ::;15,000 to $20,GOO and of the other Commissioners from $15,000 to $20,000. Private Law 878, approved Angnst 6, 1956, authorizes the Commission to license, as an operator, one l\firoslav Slovak, an alien. The following proposal was snbmitted to Congress but died in committee: Amendment of sections G03 and 504 (b) of the act, to give the Commission authority to impose small monetary forfeitures for violations of the rules and regulations relating to nonbroadcast radio stations. This proposal wasintro~ duced as S. lU49 and H. R. 5613. Both the Senate and House Interstate and Foreign Commerce Committees held hearings. In addition to proposals by the Commission, numerous other legis lative luatters affecting communications law were submitted to Con gress. AnlOng the more important of these were: Several bills that dealt with amending section 315 of the act dealing with political broadcasts of presidential, vice presidential, and congressional candi M dates. Five bills introduced in the HOll;;;€, whieh sought to require the Commission to license TV booster andVH]~translator stations. Four bills (3 in the House and 1 in the Senate), to amend seetion 307 of the act so as to limit multiple ownership of TV broadcast facilities on the basisof~ percentage of population served by the multiple licensee. The Commission submitted comments to Congress and the Bureau of the Budget concerning 19 legislative proposals which hadbeen referred to the Commission for comment, and testified at several committee hearings on various legislative proposals affecting the Commission's work. The Commission also participated in extensive investigative hearings concerning the communications field by the Senate Committee on Interstate and Foreign Commerce and the House Committee on the Judiciary. The Commission is drafting legislative proposals with respect to the functions of its review staff and the extent of separation of func tions between the Commission and its staff in adjudicatory proceed ings, and to make illegal the possession of an unlicensed radio trans mitter in a vehicle as a further aid to law enforcement. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 25 During the fiscal year the Commission devoted nearly 1,500 man hours of work in preparation, attendance and followup in connection with congressional hearings-nearly 4,600 for the House and 2,900 for the Senate. FEES On November 14, 1955, the Commission advised the Senate Com mittee on Government Operations that the FCC does not plan to pro ceed with rule making looking toward charging fees in connection with its licensing and regulatory functions. In compliance with a provision in the Independent Offices Appropriations Act of 1952, augmented by a Budget Bureau circular, the Commission had proposed a schedule of fees for such services. However, this proceeding was subsequently suspended by resolution of the Senate Interstate and Foreign Commerce Committee. AUTHORIZATIONS The Commission dosed the fiscal year with more than 1,600,000 radio authorizations outstanding, which was 200,000 more than at the end of fiscal 1955. Radio operator authorizations accounted for the largest group-more than 1,100,000 commercial and nearly 147,000 amateur. Safety and special service authorizations approached 339,000, broadcast authorizations exceeded 7,000, and there were over 7,000 common carrier radio and over 700 experimental radio authoriza tions. These radio grants collectively represented the use of about 1.2 million fixed and mobile transmitters. APPLICATIONS AND OTHER FILINGS More than 451,000 applications of all kinds were received by the Commission during the year. Of these 266,000 eoneerned commercial radio operators. Over 170,000 involved the safety and special serv ices; 8,600 were broadcast; 4,800 common carrier, and 1,500 miscellaneous. In addition, the Commission had to consider thousands of petitions and other legal filings in hearing "and rule-making proceedillgs; also mOTe than 17,000 tariffs and 1,600 anllual and monthly reports of common carrier and holding companies, and various reports by broad cast and nonbroadcast stations. CORRESPONDENCE About 1,200,000 pieces of mail were received or dispatched by the Commission's 'Washington office during the year. Of this number, nearly 840,000 were incoming and nearly 362,000 were outgoing. These figures do not include mail handled by the Field Engineering and Monitoring Bureau. 26 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The Commission's payment to the Post Office Department for the use of penalty mail during this period amounted to $33,750. RELEASES AND PUBLICATIONS The Commission reports its business by means of public notices made available each workday at its Washington office. It does not maintain public mailing lists for such issue. Copies of formal docu ments (orders, decisions, opinions, etc.) >Ire serverl on the parties involved. Commission rule making, both proposed and finalized, is publisherl in the Federal Register. The Commission's printed publi cations (reports, rules, and regulations, etc.) are sold by the Superin tendent of Documents. A list is contained in the appendix. The Commission's regulatory and administrative procedure re quired some 47,600 stencils, over 9,000,000 sheets of paper, and over 13,500,000 mimeographed impressions during the year. TECHNICAL ASSISTANCE ACTIVITY The Commission works closely with the International Cooperation Administration, the Department of State, the United Nations organ ization, and various foreign embassies in carrying ont the technical aid provisions established as an integral part of our country's overall . foreign policy. It accomplishes this through planning programs of stnrly and observation in domestic indnstry for experts and technicians from frienrlly foreign governments selected to participate in develop ing their own telecoltlmunications systems. Upward of 40 countries have thus far participated in programs arranged by the Commission in the varied fields of radio, telephone, and telegraph communication. As of .July 1, 1955, 8 projects were in operation including partici pants from 6 countries. During the year, 33 additional projects were commenced, 8 of which represented additional countries. At the year's close, 18 projects had been completed, 16 others were in opera tion for nationals of 6 countries, and 28 additional applications from 8 countries were on hand for future programming and placement. National Defense COMMISSION PARTICIPATION The Commission participates in three phases of national defense activity; namely: 1. It links its own licen8ees to the military arui civil defense programs! 2. It provide8 defense agencies with monitoring arui other technical assistance,. and 3. It i8 it8elf a party to local arui national civil defense plans. To coordinate this work, the Commission has a Defense Steering Committee headed by three Commissioners-Robert E. Lee, as Defense Commissioner, and Robert T. Bartley and John C. Doerfer, as alter nate and second alternate Defense Commissioner, respectively. The staff members comprise a Defense Coordinator and alternate; and representatives of the Broadcast, Common Carrier, Safety and Special, and Field Engineering and Monitoring Bureaus; also the Offices of General Counsel, Chief Engineer, and Administration. PRESIDENTIAL DELEGATION OF POWERS The Communications Act provides for the control of communication facilities in time of national emergency. Itgives the President special powers in that connection. In 1951 this authority was extended to include radiations from devices which, though not used for communi cation purposes, are capable of emiting energy which might serve as "beams" to guide enemy aircraft, guided missiles, and other weapons of sky attack. Under Presidential delegation of that same year, the Commission promulgated and is euforcing regulations in this con nection with respect to services and apparatus under its jurisdiction. CONELRAD PROGRAM CONELRAD is the convenient abbreviation given to the national program for controlling electromagnetic radiation by Government and civilian radio services in an emergency. The Federal Communica tions Commission is responsible for tying into this undertaking the radio services which it licenses. 27 28 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION In conseqnence, the Commission has effected CONELRAD plans for the broadcast, aviation, public safety, amateur, land transportation, citizens, and disaster radio services. Other services are complying with a voluntary plan, adopted September 22, 1954, until covered by respective mandatory plans. The first extension of the CONELRAD plan to a territory was to Hawaii, on May 29, 1956. The purpose of CONELRAD is to provide a system whereby, in the event of real or imminent hostile action, all radio stations may be alerted to an attack or its conclusion, and certain classes of stations enabled to continue essential operation under controlled conditions. Generally speaking, broadcast stations will be alerted by the Air Force Defense Command; other radio stations will receive the alert. by monitoring broadcast stations in air defense divisions in which they are located or by monit.oring ot.her designated stations. As far as broadcasting is concerned, a "radio alert" ,,,ould cause FM and TV stations to leave the air, until the "all clear" signal, but designated AM stat.ions would broadcast. official news, other pertinent informat.ion, and civil defense inst.ructions. This would be done on 640 and 1240 kilocycles, which would deter an enemy from getting a bearing on any part.icular station. About. 1,300 AM stations are voluntary participants in this program, at their own expense. Radio silence would be maintained by nonbroadcast. st.at.ions except. for t.ransmisisons of ext.reme emergency affecting the nat.ional safety or t.he safet.y of people and propert.y. Such transmissions would be as short. as possible, wit.h t.he stat.ions' carrier off t.he air when not trans mitting, and no stat.ion identification would be given. A special st.aff of 18 persons supervises FCC participat.ion in CONELRAD. CLASSIFIED DEFENSE ACTIVITIES The Commission is assisting in various defense projects for and at the request. of military and civil Government bodies. These cannot. be reported here because of t.he securit.y classification given t.hem by t.heir originat.ing agencies. In brief, however, they may be said to be t.he jointeffort of the Government and the communications industry to cope with all foreseeable emergencies, to harness radio media to the defense effort, to provide essential circuits under any eventuality and, further, to see that our vital communication facilities are adequately safeguarded. OTHER DEFENSE ACTIVITIES At the request of the Office of Defense Mobilization, the Commis sion has established a precedeuce system for telephone and telegraph REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 29 communications essential to the national defense which are trans mitted by common carrier facilities. Three priority groups am set up for emergency telephone or TWX calls. Telegrams filed under such circumstances would be classed as "emergency", "immediate", or "rapid" as the case may be. There is also being put into effect, on a voluntary basis, a priority system for resuming intercity private line telephone and telegraph services which might be disrupted by war or other disaster. There are defense aspects in the norma] operation of wire, cable, and radio services. Practically all of the existing nonbroadcast services help in pro tecting life and public property on the land, water, and in the air. Special radio services are dedicated to disaster and emergency relief, civilian defense, State Guard, civil air patrol, and kindred purposes. These services are described in the chapter of this report dealing with the safety and special radio services. For its part, the Commission patrols the radio spectrum around the clock with the Government's only national monitoring system. Besides keeping a. technical eye on the transmissions of authorized radio stations, it is on the ,"vatch for illicit radio operations, inter ference to radio services from radio and other electrical equipment, and furnishes bearings on lost or disabled sea and aircraft. This is detailed in the chapter on field engineering and monitoring. In 1U54 the COHlmis;,ion initiated rule making, and heard oral urgu mellt~on a proposal to deny amateur and cOlIllnercial radio operator license;, to members of the Communist Party 01' of any organization which is required to register as a Comnlunist front or which advo eates the overthrow of the Government. No deeision has yet been made. L7nder the Communications Act, FCC licensing is limited to citizens. In November of 1955 the Commission authorized three radio sta tions to transmit snbaudible tones for the pnrpose of activating air raid sirens in Los Angeles County. They were tlie first grunts of this kind. In connection with defense plans for the Government at 'Vashing ton, the Commission is prepared to fUllction outside of the capital in event of armed attack. It activated its relocation center in 1955, and functioned there frol11 July :20 to 26 in connection with "Operation Alerl---1956". The latter began with the first nationwide daytime CONELRAD drill, when all commercial broadcast operations ceased for 15 minutes. . 30 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The Commission has established a line of succession for its officials to act under conditions which bring about its relocation or otherwise disrupt normal operations when higher authority is notpr~sentor is unable to act. The Commission is represented on the Telecommunications Ad visory Board, which was established April 23, 1956,'under Office of Defense Mobilization chairmanship. Radw Marches On THE ELECTRONIC AGE This age of electronic marvels is advancing radio to an extent undreamed of a decade ago. By traveling with the speed of light, radio communication has shrunk both time and distance and has united places and people as never before. The convenience and effi ciency of space transmission is opening new avenues to public and private service. And, at the same time, technical improvements are revolutionizing radio operation in general, whether it is telegraph, telephone, or broadcast. Scientific refinements have ushered in a pushbutton era of operation. The simple pressing or turning of a knob contributes to ground, sea, and air protectiolt; opens circuits for domestic or international com munication; connects farflung business and industry operations; and brings 'Visual and .aural news, music, education, and entertainment into the home. Radio's uses are fast multiplying. Indeed, radio developments have become so kaleidoscopic that covering rules and regulations are, of necessity, in a constant state of revision. Business is showing an unprecedented interest in utilizing this modern messenger to serve a variety of its needs. This is particularly so in the nonbroadcast and common carrier services. Many existing safety and special radio services are "bursting at the seams" and seek additional frequency space. Included are those engaged in manufacturing, distributing, and servicing products; in construction and building-supply operations; and in agricultural and other commercial pursuits. Others, which do not want to fit into established services, would like frequencies for new and more spe cialized services. In addition, many of these same interests-to the inclusion of stores, banks, etc.-are clamoring for their own microwave systems, frequencies for which are in short supply because of priority consideration to the public safety services-such as police, fire, and other protective agencies---and to public utilities which serve the masses. In the common carrier field there is urge for more elbow room for such radiotelephone operations as long-haul microwave relay by the telephone industry, short-haul point-to-point service by private con 31 32 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION cerns, mobile communication extension, and added public coastal facilities. As for broadcasting, the AM band is, generally speaking, so crowded that only local daytime stations, for the most part, are now able to shoehorn in. The VHF portion of the television bands is practically used up in popnlous areas, and the only room for commercial TV expansion on a national basis is in the UHF range. On the other hand, both commercial and educational FM frequencies are going begging, and educators are finding it difficult to obtain funds to avail themselves of the TV channels which have been reserved for them. POSTWAR EXPANSION Itis in the aggregate that rndio's progress can be best measured. Ten years ago the Commission's radio authorizations of all kinds (stations and operators) totaled less than 550,000. That figure has since more than doubled-to over 1,600,000. At that time there were 40 different classes of radio services. Today the number is around 65, notwithstanding some consolidations for administrat.ive purposes. In 1946, broadcast authorizations were less than 2,500; today they have more than doubled-to over 7,000. In the l1onbroadcast field, authorizations in the aviation, marine, land transportation, public safety, industrial, mnateur, and other serv ices have in tl,ose 10 years increased from less than 92,000 to nearly 340,000, a gain of nearly 400 percent. 1Vithin that same period the number of commercial operator author izations to man these stations has multiplied more than threefold from 315,000 to well over 1.1 million. 'Within a decade the gross investment of the telephone industry has increased from $6 billion to over $17 billion; its gross revenne has risen from $2 billion to $6 billion; the number of telephones has grown frOll1 less than 28 million to luore than 58 million; and the number of annual domestic calls from 50 billion to over 77 billion. In that same period the number of international telephone calls has jumped from 526,000 to nearly ·1.2 million, and related revenue from $6 million to$13 million. At the same time, land line telegraph revenue has risen from $175 million to $228 million, while investment in international telegraph operations is up from $129 million to $135 million, and revenues from $44 million to $68 million. HIGHLIGHTS OF A DECADE Radio has made particular strides since 1946. That was the year when radiotelephone service to isolated communities was being pio- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 33 neered; when the first common carrier urban mobile radiotelephone service went into operation; when railroads and public utilities began radio communication on a regular basis; when radio was being tested for directing the movement of taxicabs, trucks, and buses; when micro wave relay was still a subject for experimentation; when ship radar was a novelty; when the number of homes having broadcast receivers was less than 60,000,000; when there were only 30 commercial TV station authorizations and no educational TV; and when color TV was still in the laboratory stage. In 1947 radio became available for power, transit, and petroleum pipeline operations; radar became a regular marine service; frequen cies were provided to absorb the excess emissions of medical diathermy and heating equipment which otherwise would interfere with radio communication; an international telecommunications conference re wrote the world's radio agreements in the light of developments spurred by the war; telephone and telegraph companies were con structing their first microwave links; radio waS becoming a modern divining rod in exploring for hidden oil deposits; and preparations were being made to open radio to uses by individuals. The year 1948 saw the start of public radiotelephone ser.vice to and from moving trains; an international requirement that ships of 1,600 gross tons carry radio direction-findiug apparatus; FM broadcast stations authorized to engage in regular facsimile service; and de velopment of the transistor. The latter, about the size of a shoelace tip, uses about one-tenth the power of a flashlight bulb and amplifies about 100 times. It is supplanting vacuum tubes for many purposes. The following year (1949) witnessed the establishment of the in dustrial, land transportation, and citizens radio services; joining of the eastern and midwestern coaxial cable systems; the first harbor shore radar installation; and the initial type approval of an arc welder meeting- the noninterference rules. In 1950 aeronautical advisory land stations were established; the State Guard radio service reactivated; two new classes of commercial radio operators created; operation of remote radio control devices proposed; the first TV color system approved; and initial toll-TV tests authorized. Telephone service and TV relay were inaugurated over the coast-to coast microwave and coaxial-cable syst.em in 1951. In that year long distance telephone dialing started; radiotelephone ser,vice was opened to Guam; disaster communications and industrial radio-location serv ices were authorized; and a novice class of amateur radio-operator license was provided for the beginner. In ]952, as a result of a proceeding extending from 1948, UHF was opened to TV broadcasting and VHF and UHF channels were 34 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION assigned to communities throughout the Nation, some of which were reserved for noncommercial educational use. Also in that year, the radio alnateur civil emergency service became operative; interna tional agTeement was reached to bring into world force revised alloca tions of spectrum space to the various radio services; territories received their first FM and TV broadcast grants; and local committees began organizing to cope with TV's growing interference problems. Under presidential authority, the CONELRAD plan for control of electromagnetic radiation in time or war was made effective for broad casters in 1953, with provision for its later extension to other services. In that same year new TV color standards were adopted, substituting a "compatible" system for the "incompatible" system of 1950; and the 50 millionth telephone was installed. The 20th anniversary of the FCC (1954) saw radio's uses extending "from the cradle to the grave" (i. e., from expediting medical aid to expectant mothers to directing funeral processions in cemeteries); radio interference assuming new proportions; first grants to private microwave systems for relaying TV programs; and international radiotelephony, born in the 1920's, exceeding a million calls for the first time. Testing of "tropospheric scatter" (over-the-horizon transmission) was anthorized in 1955; in which year the Commission proposed greater frequency utilization through the use of "single side-band" transmission in the fixed radiotelephone service, and "split channel" operation by vehicular radio in certain bands; and FM broadcast stations were enabled to engage in supplemental activities typified by "functional (background) music" service. Developments in 1956 are detailed elsewhere in this report. PUBLIC BENEFITS Collectively, and apart from the broadcasting phase, radio's develop ments of the past decade have direct public benefits. They increase the efficiency of navigating and protecting ships and aircraft; aid police and fire protection; expedite emergency calls by doctors, ambu lances, and tow trucks; control the Inovement of streetcars, buses, delivery trucks, and taxicabs; speed commercial COlluUullieation; fa cilitate industrial operations, and abet the functioning of pipelines, power and other utilities. Radio utilization by business ranges from small, portable equipment for directing warehouse creWs to large communication systems f-or supervising pa.rticular operations. Public dividends from radio's safeguards of travel, private property, and natural resources cannot be tabulated in dollars. Nor can the radio industry's contribution to the national defense. And there is no monetary yardstick for evaluating the convenience and timesaving benefits of expediting official, business, and private correspondence. Common Carrier Services DOMESTIC TELEPHONE General The domestic telephone industry continued its accelerated expansion program during calendar 1955, with the Bell System expending about $1.2 billion for additional plant facilities to bring its total gross plant investment to about $15.3 billion. The independent telephone com panies also continued to expand their services to bring the industry total to about $17.5 billion. An indication of the industry's tremendous expansion is the fact that the gross plant investment has almost tripled in the past decade. The major developments during fiscal 1956 include the further expansion of customer and operator toll dialing facilities, beginning of construction on a number of microwave radio relay ex press routes to bypass congested areas, and a further expansion of facilities to bring live color TV programs to additional cities. By the end of calendar 1955, there were over 56 million telephones in service throughout the Nation, of which about 46 million were operated by the Bell System and over 10 mi11ion by independent telephone com panies. By the end of fiscall!J56 the total number of telephones ex ceeded 58 million. The Bell System added a near record 2.8 million telephones during the year, as compared with 1.9 million during the previous year, and reported 207,000 orders for main service and 781,000 requests for upgrades in existing service as of June 30, 1956. For the calendar year 1955 there waS a daily average of approxi mately 205 million local and 7.1 million toll telephone calls. Local and toll calls increased 5.6 and 12.0 percent, respectively, over the previous year. During the same period, Bell System T'VX and private line service revenues increased 8.17 and 12.33 percent, respectively. Dialing of both local and long-distance calls continued to increase, with 87 percent of the Bell telephones and 65 percent of the independent telephones being dial operated by the end of the year. Half a million subscribers in 65 different communities can now dial long-distance calls to about 16 million telephones in 17 large metropolitan areas. Bell operators are dialing about 60 percent of all toll calls directly to des tination, and 4,300 cities and towns are connected to the toll-dialing network, a gain of about 950 during the year. The number of large traffic centers equipped for toll dialing increased to 39. 35 36 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Gross operating revenues of the Bell System reached a new high of $5,297,500,000 for the calendar year 1955, an increase of about 10.7 percent over the previous year. The total gross revenue for the tele phone industry was about $6 billion. Consolidated net income appli cable to American Telephone & Telegraph Co. capital stock amounted to $664,243,416, an increase of 20.8 percent over 1954. Earnings per share increased from $11.92 in 1954 to $13.10 in 1955, while the number of outstanding shares increased about 6 million. The following table illustrates the expansion of the Bell System; Year 1945 , _ 1950 . _ 1954 •• _ 1955 •• _ Telephones Plant bookcost 22,445, 519 $5,702,056.557 35.343,440 10,101,521,562 43,321,849 14,131,277,000 46,218,000 15,340, 495, 000 Revenues $1,930,889. 452 3,261,528,032 4, 784, 500. 000 5, 297, 043, 000 Empl~yees 387.300 528,251 578,436 615,895 Services and Facilities Construction of facilities.-The bulk of the $1.2 billion spent by the Bell System during calendar 1955 went for additional central office equipment, buildings, outside exchange plant, and other facilities to serve additional customers. Commission authorizations during fiscal 1956 for Bell facilities to be used in connection with interstate and foreign services totaled $127.2 million in estimated expenditures. The Commission granted 178 applications for authority for construc tion, lease, or acquisition and operation of wire and cable toll facilities, involving estimated construction costs of $84.5 million. Included in this total was the annual blanket application of A. T. & T. and its associated companies totaling about $32.9 million. A supplement to the 1956 blanket application, filed toward the close of the fiscal year and approval for which is pending, involves additional expenditures estimated at $23.8 million. The estimated amounts and cost of wire and cable construction authorized by the Commil!Sion since 1951 are tabulated below: Nllmbero[ Sheath Tube miles Conductor Fiscal year projects Cost miles of of coaxial miles or cable units open wire 1951- ________________________ ----------- 218 $45, 795, 686 957 2,704 5,641 1952___________________________________ .. 323 \07, 533, 688 1,388 2,972 5,998 1953__ '" 89,228,416 1,494 5,678 2.006 1954. ____________________ , _______________ 234 62,985,900 730 5" 1,837 1955 _____ - ..-.-.------------------------ 126 82,947,707 2,669 2,375 185 1956_________ ---------<-- 178 84,573,125 2,006 1,562 765 The above totals include 6 authol'izlltions during fiscal 1956 for the acquisition or lease by telephone companies of facilities owned by other companies, and an estimated expenditure of about $3.1 million REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 37 for the conversion of existing coaxial cable facilities to increase their capacity. The reduction in the number of applications filed during the past 2 years has resulted, in part, from a change in the Commission's rules under which carriers may undertake small projects without securing prior approval. For fiscal year 1956, 240 such projects aggregating about $1 million in construction costs were reported by carriers. In addition to wire and cable authorizations, the Commission granted 496 microwave radio applications in fiscal 1956. A. T. & T. received authority to construct additional microwave radio relay channels on existing and new routes to provide an additional 28,329 broad band radio channel-miles which are estimated to cost approxi mately $42.7 million. During the same period, the Commission au thorized 13 independent telephone company microwave projects costing an estimated $2 million. By the end of fiscal IV56, the Bell System coaxial cable and micro wave radio facilities in use for nationwide TV service totaled about 73,000 channel-miles, with about 400 stations in 270 cities intercon nected. Color TV service was available to 283 stations in 162 cities. The Bell System also increased the use of microwaves for telephone service, with about 8.8 million telephone toll circuit miles in use by the end of the fiscal year. Bell facilities were also expanded to provide "off-air" reception and transmission of programs to TV stations, "\vi1.h 7 systems costing an estimated $380,575 being placed in service during the fiscal year. Discontinuance ofservice.~Duringfiscal 1956, the Commission granted 25 applications to discontinue telephone service, including 4 held over from the previous year. Each involved the substitution of one telephone carrier for another. Three applications filed toward the fiscal year end had not been acted upon. Speed ofservice.~The Bell System reported that the average time for completing toll calls was 1.4 minutes in 1955 and that 97 percent of all toll calls were completed while the calling party held the line. Acquisitions and consolidations.-The Commission received 25 applications from domestic telephone carriers for authority to acquire the property of another carrier. After public hearings, 12 were granted, together with 10 held over from the previous year. The approved applications represented a gross acquisition cost of about $2.2 million. Of the 1il applications pending at the close of the fiscal year, initial decisions recommended grunts in 5 cases, hearings had been held on 3 others and were scheduled on 5 more. Interlocking directorates.-The Commission received 2" applica tions for authority to hold positions of ollieer or director of lllore than 404807--56-- -4 38 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 1 domestic telephone carrier. All but 1 were granted by the fiscal year's end. Reclassification of companies.-No petitions were received from telephone companies requesting classifications as "connecting carriers" under section 2 (b) 2 of the act which would render them subject only to sections 201 through 205, inclusive. Merger.-On October 31, 1955, Theodore Gary & Co. was merged into General Telephone Corp. A review is being made to determine whether this occasioned changes in the jurisdictional status, for regu latory purposes, of any of the operating telephone companies. The General Telephone System now provides telephone service in parts of 30 States and in some foreign countries. The system also includes domestic manufacturing, sales, and telephone directory companies and foreign manufacturing and sales companies. As of December 31, 1955, it had 2,548,000 domestic telephones in service. Foreign attachment case.-On December 23, 1955, the Commission released its final decision in the case of Hush-A-Phone Corp., et al. v. American Telephone and Teleg1'aph Co., et al. (Docket 9189). It upheld the reasonableness of the so-called "foreign-attachment" pro vision of the Bell companies' tariffs as that provision is applied to the Hush-A-Phone device, and dismissed the complaint of Hush-A-Phone Corp. and Harry C.. Tuttle against the Bell companies. A court appeal is pending. Domestic public land mobile radio service.-The number of radio systems licensed for one-way signaling (radiopaging) operations in creased by 21 percent. At the close of the fiscal year 69 such systems were licensed and 22 others were under construction. Due to the lack of frequencies to accommodate all applicants for such systems, it was necessary to hold a comparative hearing for the Detroit area. A final decision was issued in this case (Docket 11055), and also in a similar comparative case involving the Cleveland-Akron area (Dockets 11372 and 11373). Constrnction permits issued without hearing to applicants at Allentown-Bethlehem, Pa., and Bakersfield, Calif., were protested by existing stations furnishing a like service in these areas. After hearings, initial decisions were issued in both cases (Dockets 11500 and 11596). The number of miscellaneous (nontelephone company) common carrier land mobile radio systems for 2-\yuy communication service increased by eight percent. As of June 30, 1956, there were 325 such systems authorized in the United States, Puerto Rico, Alaska, and Hawaii. An application seeking to renew a construction permit in the Rochester, N. Y., area, which was authorized for several years but never constructed, was denied (Docket 11184). REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 39 During- fiscal 1955, the Commission renewed for 1 year only, in lieu of the usual2-year license period, the licenses of 22 miscellaneous com mon carrier stations in the domestic public land mobile radio service, because their annual reports indicated that they are not rendering serv ice to the general public. Of these, 14lutd failed to render public serv ice by renewal time and submitted their lieenses for cancellation; 6 others had commenced serving the public and their licenses were re newed for the balance of the 2-year term, and 2 more were unable to show that public service had been rendered and their renewal appli cations were designated for hearing (Dockets 11706 and 11(07). General communications common carriers (telephone companies) expanded the number of land mobile radio systems for 2-way com munications by 11 percent. At the end of the fiscal year, there were 319 snch systems authorized. On ,Tune 13, 1956, the Commission completed its rnle-making pro ceeding (Docket 10821) and adopted a new part 21 of its domestic public radio services rules consolidating the various provisions relat ing to domestic use of radio by communications common carriers (other than aeronautical, maritime, and certain Alaskan and special emergency services). This was accomplished by transferring from part 6 to part 21 the rules governing the domest.ic public land mobile radio services, which have been revised and expanded in various par ticulars to meet the growth of these services, and by setting forth in part 21 new rules for regulating c.ertain other domestic common car rier radio sentices previously authorized under part 5 of the rules governing experimental radio services. The Tevised part 21 became effective September 4, 1956. The more detailed nature of the new part 21 will be of material as sistance to the public in properly executing all types of applications for domestic common carrier Tudio authorizations and in guiding the operational aspects of their radio systems. At the same time, the new rules will permit the Commission to process applications more ex peditiously. However, conversion of the extensive domestic common carrier operations, currently licensed on an experimental basis, to a regularized service under part 21 is expected to be a substantial task during the next fiscal year. Regularizing the status of these services is also expected to overcome reluctauce on the part of the smaller in dependent telephone companies to enter the common carrier radio field while it was still on an experimental basis. Generally, the new part 21 also provides license terms of 3 to 5 years in lieu of the I-year term in the experimental rules. Rural subscriber and slwrt-haul toll radiotelephone services. These experimental radio services are intended to furnish domestic public communication service to points where it is impracticable to 40 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSI01'l provide wireline communication. They showed an increase of 12 pe-r cent in rural subscriber stations and a decrease of 4 percent in shol't haul toll radiotelephone stations. As of June 30, 1956, there were 101 rural subscribers stations and 73 short-haul toll stations author ized. TV pickup and studio-transmitterlinks.~Atthe end of June 1956, there were 367 transmitters authorized to common carriers in the experimental TV-pickup service for use in connection with TV broadcast operations. There were also 41 transmitters authorized in the experimental TV-STL service for use by common carriers in pro viding video transmission facilities to broadcasters between studios and transmitters. Community TV antennas.-During fiscal 1956 the Commission authorized 13 microwave systems aggregating about $450,000 to pro vide off-air pickup and relay service for community antenna TV sys tems. Pending at the close of the year were applications for 6 ad ditional systems, including 1 to serve Rapid City, S. Dak., mentioned in the previous annual report, concerning which a joint hearing was held in fiscal 1956. During the course of that proceeding 1 of the ap plicants withdrew and an initial decision favored a grant to the re maining applicant. On April 6, 1956, a "complaint" was filed by a group of TV broad casters against 288 operators of community antenna systems. The group seeks to have the Commission exercise jurisdiction over such systems as common carriers. Copies of the "complaint" were sent to the systems for comment on the questions raised. After studying the replies, the Commission will determine what further action may be required. Tariff filings.-At the close of the fiscal year tariffs or concurrences were on file for 466 telephone carriers. During the year, 15,412 tariff publications consisting of new or revised pages, supplements, con currences, revocations, or adoption notices were received. Private line service rates.-On September 23, 1955, the American Telephone & Telegraph Co. filed a new tariff applicable to multiple privateline services and channels. This tariff provides for a declining rate per channel as the number of private-line channels of all types (except program transmission) nsed by a single customer between a given pair of points increases. ·Western Union protested. On Octo ber 19, 1955, the Commission suspended the effectiveness of the tariff and ordered an investigation into its lawfulness. Subsequently, on March 9, 1956, it ordered an investigation into the lawfulness of the effective tariffs applicable to all private line services (excluding pro gram transmission) of A. T. & T. and Western Union. Revised A. T. REPORT OF TIlE FEDERAL COMMUNICATIONS COMMISSION' 41 & T. tariffs for multiple-line service, which became effective September 1, 1956, were included in the general proceeding. TV transmission charges.-On April 11, 1956, Community Tele vision Systems of 'Wyoming, Inc., filed a complaint with the Commis sion alleging that the charges of Mountain States Telephone & Telegraph Co. for certain TV transmission facilities furnished the complainant are unjust, unreasonable, and discriminatory.Defend~ ants filed an answer generally denying this. At the close of the fiscal year, the complaint and answer were under consideration. Other Regulatory Mailers Depreciation.-During fiscal 1956, the Commission revised (lepre eiation rates previously prescribed for 5 major Bell companies, in cluding 2 multistate companies serving 14 States. The revised rates resulted in depreciation charges aggregating $186,338,000 for the year ended December 31, 1955, representing an increase of approximately $6,000,000, 01' 3.2 percent over the eharges for that year based on the depreciation rates previously in e/feet. It was noted in the 21st annual report that, due to anticipated sig nificant changes in the telephone art and other changes taking place currently as a result of the continued rapid expansion of telephone plant facilities, there might soon be a reversal in the downward trend of depreciation rates. Studies conducted during the year with respect to the Bell companies indicate that the current trend is toward higher depreciation rates. The major reasons are: (a) Expectation that electronic switching systems, to be in commercial production by 1960 or l{HH, will result in premature retirements of some of the electro mechanical types of dial central office equipment currently in service; (b) growing popular demand for the improved types of telephone instruments which is beginning to shorten the service lives of many older types of apparatus in use; (0) increased rate of rearrangements and resulting retirell1ents of outside plant clue to the continuing rapid expansion of telephone facilities in genera], and (d) increased cost of removal associated with plant retired. Depreciation expense charges of telephone companies continued to increase. In the case of the 2:3 Dell companies, these charges aggt'e gated more than $523,482,000 for the 1955 calendar year, an increase of $44,171,000, or 9.2 percent over 1954. The major part of this was due directly to the expansion of telephone plant facilities (from $14.2 billion on January 1, 1955, to $15.4 billion on December 31, 1955, or 8.1 percent). Some of the increase, however, was attributable to the up ward adjustments in depreciation rates which the Commission ap proved during fiscal 1956 for five Bell companies. 42 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Separation procedures.-On January 20, 1956, the Commission approved the use, on an interim basis, of the so-called "Modified Phoenix Plan", a revision of the procedures liscd by telephone com panies to separate and apportion their investment and expenses be tween interstate and intrastate operations. The plan is an outgrowth of the continuing studies of telephone separation procedures conducted by the Commission cooperatively with the National Association of Railroad and Utilities Commissioners. The Bell companies are in corporating the revised procedures.in their division of revenue con tracts as of July 1, 1956. The plan will have the effect of allocating increased amounts of plant investment and expenses from Bell's intrastate telephone operations to its interstate operations. Thereby, Bell's annual revenue requirements applicable to its intrastate opera tions will be reduced by an estimated $35 million to $40 million. Western Electric earnings and prices.-The Commission, also in cooperation with NARUC, continued its review of the prices, earnings, and costs of Western Electric Co. Data developed are reported quarterly and annually to the various telephone regulatory commis sions to assist them in their consideration of 'Western's prices insofar as they affect tbe revenue re.quirements of the Bell companies affiliated with Western. Pensions and relief.-Pension plans of most Bell companies con tinued in effect without change. However, some of the companies changed the maximum permissible accident death benefit payment from $10,000 to $30,000 and the maximum death benefit payment for burial expenses from $250 to $500. The Bell companies, including those engaged in manufacturing and research, paid out or set aside $287,000,000 in 1955 to cover pensions and other benefits costs (in cluding Federal taxes for social security benefits). The pension funds of all of these companies aggregated about $2,168 million at December 31, 1955. At that time, 20,301 men and 18,220 women were receiving service pensions. The annual study of Bell pension factors was made. The earnings of the pension fund continued at about 3 percent, as in 1954. The rate of interest assumed for actuarial purposes remained at 2% percent. Uniform systems of accounts.-Proceedings commenced in fiscal 1955 on whether amounts of contributions for charitable, educational, social, and community welfare purposes should be permitted to be charged to operating expenses instead of "below the line" were ter minated. The Commission decided against making any change. Other proceedings led the Commission to broaden somewhat its rule as to what small construction project costs can be charged directly to telephone plant in service accounts. At the same time, the rules regarding plant retirement accounting were clarified. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 43 Restatement of plant accounts on basis of original cost.-Fur ther review and a field study have been made of a pending non-Bell company original cost matter looking towards its final disposition. Also, several current acquisitions of plant were handled during the year, including the disposition of amounts in excess of original cost of plant. As mentioned in the 1955 report, consideration continues to be given to the applicability of original cost accounting to acquisi tions of plant from certain nontelephone public utility companies where the acquired plant is integrated into the telephone system of the purchaser. Continuing property records.-Limited reviews were made of cer tain phases of the continuing property records of several Bell companies and one non-Bell company. Particular attention was given to the development of retirement unit costs of outside plant and the pricing of partial retirements of buildings, central office equipment, and large private branch exchanges. General and limited audits.-A general review was made of the accounts of one Ben company. In general, the accounts of the com pany were in substantial compliance with regulations. However, several minor adjustments were required in the accounts as well as certain changes in the company's accounting practices and procedures. Problems common to the Bell System are under separate consideration. Limited reviews were made of certain of the accounts and related records of several other nell companies and one non-Bell company. They were related primarily to plant accounting and accounting for operating revenues and expenses in the light of the Commission's accounting regulations. NARUC Committees on Accounts and Statistics and Deprecia tion.~The Commission participated in the work of these committees on questions of mutual concern to State and Federal regulatory bodies. DOMESTIC TELEGRAPH General The~WesternUnion Telegraph Co. provides practically all of the domestic message telegraph services in the United States by means of some 23,000 public offices and a nationwide interconnecting com munication systenl of wire lines, radio facilities and terminal equip ment representing a gross investment of $311 million. Western Union also owns and operates a large international ocean-cable system. Although Western Union is furnishing increasing amounts of private line telegraph services, the nell telephone system continues to handle the great bulk of such services, including teletypewriter exchange service (TWX), which are directly competitive with the telegraph services of~WesternUnion. nell's telegraph services 44 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION account for nearly one-third of all domestic record communications revenue. Western Union's gross land line operating revenues for the calendar year 1955 reached a new peak of $228,816,000 although traffic volume increased less than one percent to a total of 153,023,000 messages handled. In 1954, operating revenues amounted to $209,635,000. Its systemwide net income, including ocean-cable operations, was $11,686,000 after providing $10,476,000 for Federal income tax. Com parable 1954 systemwide net income amounted to $6,471,000 after $7,725,000 for Federal income tax. Gross revenues for land line operations for the last half of fiscal 1956 remained at approximately the same level as in the previous six months-$116,324,000 as compared with $115,850,000. Increases in private line revenues were offset by declines in message revenues as reflected by a volume of 80,606,000 messages as compared with 79,529,000 for the first half of fiscal 1956. Systemwide net income for the last half of fiscal 1956 amonnted to $6,671,000 after $4,707,000 for Federal income tax. In July 1955, 'Western Union completed an extensive recapitaliza tion, ,,'jth the sale of slig-htly over a million shares of previously authorized stock. The proceeds, approximately $20,800,000, were intended for additional plant expansion in the private wire, facsimile, and microwave fields. Early in ,June 1956, the company concluded wage agreements with its unions which increased expenses on an annual basis by $10,544,000, effective ,Juue 1, 1056, and by $4,192,000, effective ,January 1, 1957. In consequence, 1Vestern lTnion requested increased rates for certain services which is discussed under "Domestic Telegraph Rates". Western Union still faces strong competition from toll telephone service and from the telegraph services of the telephone companies. Despite substantial savings in operating expenses flowing- from mech anization, office closures and service curtailments, repeated wage in creases since 1945 and increased prices haVB resulted in message tele graph rates being nearly double those in effect during vVorld War II. The combination of increased rates, expansion of the private wire services, and operating economies, however, have resulted in improved earnings in recent years. Services and Facilities Reperforator switching.-vVestern Union serves the Nation through a network of high-speed trausmission facilities built around 15 strategically located reperforator switching centers providing auto matic and semiautomatic relay of telegrams between cities. Each nEPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 45 center serves from one to six states and each is provided with direct channels to other centers. Reperforator switching eliminates manual retransmission, thereby effecting substantial economies and faster serVIce. The principal modifications effected in the reperforator switching system during fiscal 1956 included equipment reassignments to dis tribute message load more evenly between manual switching positions, termination of additional originating message circuits in automatic switching equipment, and the interconnection of additional customer tielines with the company's reperforator switching system. So-called "small office reperforation" was tried successfully at Passaic, N. J., for terminal handlings. The company plans to extend this to other cities where load conditions are similar to those at Passaic, the effect of which will be to reduce the number of manual relays and thereby to speed up service. Traffic destined to Brooklyn, N. Y., is scheduled to be handled by similar methods from the New York main office. Carrier equipment.-As of June 30, 1956, telegraph channel mile age in operation approximated 3,840,000 for message services, includ ing 324,000 miles added during the year. Two-thirds of the total mileage was derived through use of carrier equipment on leased voice frequency channels and on company-owned microwave and other facilities. Radio beam.-The New Yark-Washington-Pittsburgh and the New York-Philadelphia microwave relay systems were rearranged during fiscal 1956 to achieve their full capacity. The number of telegraph channel miles in operation on these facilities has increased to 220,150, as compared with 124,850 at the end of fiscal 1955. On May 29, 1956, 'Vestern Union filed to extend its microwave relay routes from Pitts burgh to Cincinnati via Columbus and from Cincinnati to Chicago via Indianapolis. The extended system, expected to be in service early in 1957, is designed for 48 voice frequency bands and will increase the availability of telegraph facilities generally in the Midwest area. Private wire systems.-lVestern Union's sales of leased private wire systems continued to expand rapidly. The company's revenues from leased private wire and facsiulile systems have grown fivefold. in the past seven years, and increased approximately 21 percent during fiscal 195fi compared with the preceding year. Facilities used by vVestern Union for private wire services totaled 2,202,000 miles at the end of the year, an increase of 439,000 miles or 25 percent over 1955. Increasing application of automation to various business operations, frequently called "integrated data processing", is a further stimulant 46 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION in the private wire field. Many Western Union private-wire systems have been specially engineered to bandle the rapid transmission of statistical data in perforated tape or punched card form. The most comprehensive of these IDP systems, an 18,000-mile electronic net work connecting 61 cities, was installed during fiscal 1956 for an in dustrial firm. Also among Western Union's new private-wire systems is a transcontinental network for an investment brokerage firm. This automatic custom-built system, designed to meet maximum speed re quirements, links 20 cities. During the last half of fiscal 1956, Western Union was awarded a contract by the Air Materiel Command, as the initial step in a plan to unify and improve the efficiency of the domestic and global com munications systems of the United States Air Force. In the new system, each message will be typed only once, at the place of origin, and transmitted automatically to the desired Air Force base in any part of the world. The contract involves the leasing of automatic equipment to replace pushbutton equipment now used at 5 main com munications centers. These new centers will be a part of the 200,000 mile network linking more than 200 Ail' Force bases throughout the country. Facsimile.-1Vestern Union continued to provide increasing num bers of its customers with deskfax (facsimile) connections to telegraph central offices. The deskfax, installed on the customer's desk, speeds the delivery and pickup of messages and stimulates telegraph usage. During fiscal 1956, deskfax was extended to 5,600 additional customers' offices, bringing to nearly 26,000 the total number of such units in use. Thousands more are scheduled for installation in the ensuing year. In addition to deskfax units in service, teleprinter-operated direct wires to customers number approximately 22,500, making a total of nearly 49,000 direct customer conections. The continuing expansion in these direct connections improves service and materially reduces the need for messenger handling. Western Union continued its development of a wide range of specialized facsimile equipment. These new leased facsimile systems, which the company calls "intrafax", are used to link departments, offices, and buildings for fast, efficient internal communication. Intra fax reproduces a complete letter-sized document in less than 3 minutes, while the new "ticketfax", leased to railroads to speed passenger reservation and ticket handlings, transmits Pullman or reserved-seat coach tickets in 8 seconds. Modernization expenditures.-During calendar "1955, Western Union expended $3,250,000 on its modernization program, bringing total expenditures for this purpose of $63,000,000. The company REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 47 estimates that projected future expenditures will total $33,800,000. Estimated savings in operating expenses resulting from this program currently aggregate $33,500,000 a year. Construction of wire facilities.-The Commission received 8 ''Vestern Union requests for wire telegraph construction and exten sions. Five were granted and 3 were pending at the end of the year. Those granted covered the leasing of 642,126 telegraph channel miles of line at an annual rental of $684,983 and the construction of 64,124 telegraph channel miles of line and associated equipment at a cost of approximately $4,983,500. The larger portion of these facilities was proposed for meeting the needs for expected growth of private leased telegraph services, while the remainder was allotted for exten sion of lines and improvement in message telegraph service. Curtailment of service.-A total of 710 applications for reduction in hours of service or closure of public telegraph offices were filed by Western Union as compared with 924 the previous year. In addi tion, 100 such applications were pending at the beginning of the year. Of the total, 704 applications were granted, 15 were withdrawn, 3 were denied, 1 was dismissed, and 87 were pending. Generally, where hours were reduced or offices closed, alternate service was made available. 'Vestern Union estimates that savings of more than $7% million a year have been effected by office closure and hour reductions, 1947 through 1955. Although the number of applications declined in fiscal 1956, when compared with 1955, current applications present increas ingly complex service problems which have resulted from extensive changes in the pickup and delivery methods used in cities, by closing and relocating branch offices, installing thousands of facsimile tielines on customers' premises and substituting agency o·ffices and messenger stations for company-operated offices. These problems have necessi tated more on-the-spot investigations and detailed studies to appraise the company's coverage surveys, to determine the adequacy of pro posed substitute service and to insure compliance by the company with commitments in the ensuing applications filed pursuant to section 214 ofthe act. Speed of service.-''Vestern Union is required to conduct daily studies of the speed of service accorded messages at the 25 largest telegraph cities and to report monthly summaries. The reports show the average origin to destination speed (interval between the time a message is filed by sender and the time it is delivered to addressee, or first attempt) and theav~rageoffice relay drag (time required for a message to pass through a large message center). The following 48 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION table compares the average speed of service in minutes reported for the past 6 fiscal years: Fiscal year 1961~4 ,____ _ __ _ __ • __ , • _ 1952. • _, .•__ . 1953 ••_~". __ . .• . _ 1954 . . __ . __ . " _ 190IL~• _ 1956 •~.. . Origin to destination deliwred by- Message center I Telephone Tieline 1\.lesscnger 8.7 41. 2 37.\} 45.4 8.5 41.6 37.5 4tU &. 43.0 37.8 46.2 8.. 43.7 37.9 47.2 '.3 39. Ii 34.• 43.0 ?5 311.1 34.1 43.0 1 Message center speed of service Included in origin to destination service. This summary shows that the average service for the 25 cities combined was faster in all categories in fiscal 1955 and 1956 than for the previous years. The so-called "quality control" program initiated by Western Union in 1954 may be largely responsible for this improve ment. The program was instituted On a system-wide t:r;ial basis in an effort to eliminate longer delays than average. The overaU speed of service objective has been a maximum of 60 minutes from time filed to time delivered for messages sent by tieline or telephone, or a maxi mum of 60 minutes from time filed to time routed out for messages requiring physical delivery. In view of certain changes in operating practices, which have re snlted from technological developments, a proposed amendment of part 64 of the rules relating to domestic telegraph speed of service studies is in preparation. During the year, investigations of on-the-ground service conditions were limited principally to inspections of some 170 \Vestern rnion offices and agencies located in or near San Francisco, St. Louis, and New York, where Con1mission commOn carrier field offices are located. Routine inspections of the service preformance of 11 other 'Western Union offices and agencies were made by Commission field engineers. Although experience has shown that field investigations haye had a salutary effect on the offices visited and on service generaUy, only a small minority of 'Vestern Union offices and agencies have every been inspected by the Comlllission. It is planned to make more field investigations to determine the adeqnacy of service and facilities at telegraph message centers and offices throughout the country, the desirability ofestablishing adequate service stan(!ards and criteria, and the effect of technological developments in telegraph operations and how their application may best serve the public interest. Proposed private telegraph network to serve TV industry.-The TelePrompTer Corp. requested a Commission ruling on whether a contemplated nationwide priYate line tele"OTaph network to serve TV stations, networks, and others in the industry with communication REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 49 relating to programming would be a communications COIllffion carrier subject to Commission jurisdiction. After an informal study, the Commission, in November 1955, advised that snch all operation would be subject to its jurisdiction. Telecar pickup and delivery service.-During the latter part of fiscalIV56, 'Vestern Union discontinued operation of its telecar facil ities because experience showed that their continued use was uneco nomical. The system, which was in operation in Baltimore, 'vas a radio facsimile transmission facility between the central telegraph terminal and messenger vehicles in residential areas for the rapid delivery and pickup of telegrarns. Rates and Tariffs Domestic telegraph rates.-'Vestern Union, on June 29, 1956, filed revised tariff schedules contemplating increased charges and regula tions ehnng-es for interstate messages and money oruers and various miscellaneous services. Illel'eased rates, according to 'Vestern ·Union, are necessary to offset higher ,vages resulting £1'0111 recently negotiated labor contracts. On.ruly 19, the Commission suspended the proposed tariffs and instituted an investigation (Docket 11800). 'Western Union later obtained special permission to substitute schedules con taining sOlnewhat lower charges. The latter, effective August 26, 1956, are estimated by the company to increase annual revenue by $9,657,000 after allmying for traffic shrinkage due to increased rates. According to "restern ·Union, the substitute schedules will produce about $1.8 million a year less than the suspended schedules. The new sehedules further liberalize 'Vestern Union's discount plan, which saves 20 cents a message for customers who have direct-wire connections with telegraph offices. The discount applies to all such messages in excess of 50 (currently 100) filed by a customer in a month. Following Commission suggestions of long standing, the new schedules discontinue collection of telephone toll charges for messages delivered by telephone to points where telegraph offices are closed for the day and eliminate so-called "other-line" charges (additional tele graph Inessage delivery charges) at certain places served only by messenger, telephone, or agent. The imposition of such charges has been a recurring subject of complaint to the Commission by telegraph users. In an effort to measure the effect of redneed rates on the volume of messages, "Testern Union established special rates for certain Christ mas and New Year messages during the period October 10 to December 22, 1955. It coneluded that the increased revenue therefrom was not sufficient to offset the increased costs in handling the increased volume. "'estern Union filed revised tariffs, effective September 28, 1955, estahlishing" new· and revised rates and regulations for interstate 50 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION private line facsimile (intrafax) servjce. This servjce contemplates the leasing of channel facilities and station equipment which are suitable for facsimile, telephotograph, and other purposes having similar transmission requirements. Leased facilitiesservices.~InMarch 1956, the Commission insti tuted an investigation (Docket 11646) into the lawfulness of the charges, classifications, regulations, and practices in connection with the leased facilities services of Western Union. This investigation has been consolidated with investigations (Dockets 11518 and 11645) of all private line services of the Bell System (except broadcast transmis sion) noted under "Domestic Telephone". Tariff schedules.-During fiscal year 1956, carriers filed 884 pages of tariff material affecting charges and regulations applicable to domestic telegraph service. INTERNATIONAL TELEGRAPH AND TELEPHONE General Worldwide wire and radio communication service is available in the United States through c'trriers offering facilities for the transmis sion and reception of international communications by means of cable telegraph, radiotelegraph, and radiotelephone. Telegraph service between the continental United States and foreign and overseas points is offered by 4 cable and 6 radio carriers. Telegraph and telephone service to ships at sea and aircraft is fur, nished by several of the radio carriers as well as by others exclusively engaged in such service. Radiotelephone service to more than 100 foreign and overseas points as well as to ships at sea is offered by the American Telephone & Telegraph Co. Territories and possessions of the United States are provided with similar international telegraph and telephone service. Gross operating revenueS of the 10 cable and radio carriers render ing telegraph service between the continental United States and overseas and foreign points totaled $68,049,543 for calendar 1955. This represented a new high for the postwar period and was $4,238,427, or 6.6 percent more than in 1954. Gross operating revenues from message telegraph traffic increased $2,737,810 (5.1 percent) over calendar 1954 to reach $55,965,528. The balance of gross operating revenues resulted frOIn various specinl services such as leased channels, international teleprinter exchanges, and other nonmessage services. These rose by $1,500,617, or 14.2 percent, from the previous year. International teleprinter exchange service showed a marked rise (56 percent), due to its greater availability to senders in the United States and its expansion to new areas as well as its increased use to pre viously established points. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 51 Gross operating revenues from marine message service to ships and "ircraft, in c"lend"r 1955, WItS $1,554,269 "nd represented "n incre"se of $104,392, or 7.2 percent, from the 1954 level. As " result, industry-wide net operating revenues before Federal income taxes rOse to their highest point since 1945, for " total of $9,683,839. This WItS $526,642 (5.8 percent) more th"n the comp"rable 1954 figure, despite" rise of 6.8per~entin operating expenses for 1955. The companies providing telegraph service to foreign and overseas points aTid ships at sea as of the close of the calendar year had gross investment in plant and equipment of $135,178,336, while their net investment after depreciation "nowances was $58,746,965. The volume of cablegrams and radiograms flowing between the United St"tes and other countries during calendar 1955 rose to 548,574,177 paid words. This was 26,746,518 (5.1 perccnt) more than in 1954 and represented an increase for the second successive year. Likewise, the volume of international radiotelephone cans showed a continued steady rise so that chargeable caUs re"ched a new level of 1,193,785 for the year, an increase of 13.6 percent from 1954. Corres ponding revenues (including associ"ted l"nd line charges) rose by a similar percent"ge over 1954 to a total of $13,001,159 for the year. Latest available reports indic"te that the upward trend in both telegraph and telephone traffic volumes and revenues has continued into calendar 1956. International Conferences The Commission was represented at meetings of two subcommittees of the International Telegraph Consultative Committee (CCIT) held at London during April to resolve several technical questions relating to phototelegraphy and facsimile. (The functions of the COlT, pur suant to the International Telecommunications Convention of Buenos Aires, 1952, are to study operating, technical and tariff questions relat ing to telegraphy and f"csimile "nd to formulate recommendations.) The positions reached on the questions considered by the study groups were in accord with those advocated by the United States delegation. The Commission also participated in a telecommunications meeting between officials of the United Kingdom and the United States at 'V"shington during May. The discussions consisted of an exchange of views relating to plant modernization, utilization of new facilities and techniques, "nd methods of utilizing communications facilities to serve the mutual interests of the two nations. There was no intent to arrive at any specific agreements. International Services Telegraph.-Direct telegraph service by means of submarine cables is provided by lTnited States companies with various Latin American anu European points. No overseas cables from the United States to 52 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Pacific points are in operation at present. United States companies were operating from the continental United States direct radiotele graph circuits to 88 foreign and overseas points at the end of fiscal 1956. Through interconnection between the United States cable and radio facilities and those of foreign carriers, telegraph truffic is relayed to practically every country in the world not served by direct circuits. ProvisiQll of international "customer-ta-customer" type of service as offered by the telegraph carriers, of which "TEX" or "TELEX" (international teletypewriter exchange) and "IMCO" (international metered oommunicatioll) are representative, showed an increased trend during the year. Communication channels betwe.en the United States and world points are provided by the international carriers enabling- customers to communicate directly by means of equipment installed on their premises. The charge for this type of service is on a per-minute or per-letter basis. A similar and widely used type of service; namely, "lensed lil}C", provides customers with direct com munication service for various periods of time, usually on a monthly basis "'ith a minimum daily use. During the year arrangements were concluded between Bell SystBlll companies on the one hand, and H,CA Communications, Inc., :Mackay Ihdio & Telegraph Co., and Globe 1Vireless, Ltd., on the other hand, for the interconnection of Bell's domestic 'nvx facilities with the international teleprinter exchange system maintained by each of the latter companies. These arrangements permit a T1VX user anywhere in the United Stntes to eOllullunicate directly with a teleprinter exchange subscriber abroad. TWX charges to the point of inter connection are borne by the international carriers without an additional charge to the users. Each country is required by international agreement to provide for the settlement of accounts, of vessels under its registry, of tolls for radiotelegraph traffic exchanged with coastal stations of foreign administrations. In the United States this function is performed by the Commission which, in fiscal 1956, accounted for the following messages and made the following disbursements: Messages on hand beginning of period _ MesRages received during period _ Message:s processed during period Messages on hand June 30, 19ri6 _ 14,004 163.434 177,438 147,141 30.297 == Oash On hand at beginning of period $59,359.32 Cash receiyeU from United States companies 215,147.19 274,506.31 Cash disbursed to foreign g-overnillellts 20;), U28. 90 Cash on hand for disbursements June 30, mGG 68,577.61 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 53 Telephone.-International telephone service from the continental United States is provided by direct radio circuits with 64 foreign and overseas points. ·Wire lines interconnect the continental United States with Canada and Mexico, and submarine cable with Cuba. The Alaska Communication System wire and radio facilities connect with the continental United States. Relay through various foreign facilities provides service to approximately 50 additional countries. Laying of the transatlantic telephone cable, via Canada, was com pleted August 14, 1956, and it was placed in service September 25 of the same year. Laying of the Alaskan cable system between Port Angeles, ·Washington, and Ketchikan, Alaska, is being completed for service by the end of the calendar year. Plans are progressing toward the laying of the Hawaiian twin cables, expected to be completed during the summer of 1958. During the latter part of the fiscal year, the first grant for an inter national radiotelephone service using "over-the-horizon" or "scatter" technique in the ultra high frequency nl,nge was made to the American Telephone & Telegraph Co. for communication between Florida and Cuba. An application by another company for TV transmission service from Florida to Cuba by the same technique is under considenttion. Applications.-Licenses in the International Fixed Public Services filed a total of 210 applications for additional frequcncies, points of communication, installation of additional equipment, program service, etc., as compared ,,,,ith 264 applications the previous year. The Com mission acted upon 195 applications. Sunspot cycle disturbance has increased the licensees' needs for additional frequencies at the high frequency part of the 3 to 30 megacycle spectrum and the need for these higher frequencies will probably continue during fiscal 1957. Docket Cases Circuits to The Netherlands and Portugal.-The 1955 annual re port noted that the Commission had reaffirmed its grant of applications. by~InckayRadio & Telegraph Co. [Docket 8777J to establish radio telegraph circuits to the points named which would compete with cir cuits operated by RCA Communications, Inc. (RCAC). This pro ceeding was remanded to the Commission when the Supreme Court held that a grant could not be based upon a finding that national policy favored competition in this field. The reaffirmation was based upon a finding that competition by Mackay was reasonably feasible and that there "as reasonable expectation that it would have a beneficial effect. "\. petition by RCAC for reconsideration was denied, following which, on December 16, 1955, RCAC went to court. Oral argument was held September 12, 1956. ·HI~807-;)f)-------o 54 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Western Union divestment.-As reported last year, an initial de cision was issued as a result of Commission investigation into the requirement of section 222 of the Communications Act and related orders that \Vestern Union divest its international telegraph opera tions [Docket 10151J. Oral argument on exceptions filed to the initial decision was set for November 19, 1956, and \Vestern Union motion to reopen the record was denied without prejudice to later filing. Negotiations for the sale of its international operations mentioned in the last report were terminated by 1Vestern Union because of cer tain obstacles. However, negotiations with another possible pur chaser are being conducted. Auy definitive agreement reached will be subject to Commission approval. Puerto Rico application.-Reference was made in a previous re port to the postponement of oral argument on exceptions to an initial decision in Docket 10058. The initial derision proposed deniRI of applications of Mackay Radio & Telegl'llph Co. and All America CRbles & RRdio, Inc., to operate a radiotelegraph circuit between the United States and Puerto Rico on a regular instead of emergency basis. On August 29, 1956, after denying one petition to reopen the record and after holding oral argument, the Commission granted a second petition to reopen the record to reflect current data. Western Union-Globe and Tmpical contracts.-The previous re port noted that the court of appeals had reaffirmed the Commission decision [Docket 9292J that certain contracts between Western Union and Globe Wireless, Ltd., and Tropical Radio Telegraph Co. covering the exchange of particular international telegraph traffic violated sec tion 222 of the Communications Act and the international formula for the division of international traffic fi.led with '''esternlJnion~s domestic land line system. Reference was also made to the fact that, plll'RUant to Commission order, the parties were negotiating an agree ment 011 the damages due the complainants (Conunel'cial Pacific Cable Co., "fackay Radio & Telegraph Co., the Commercial Cable Co., All > America Cables &; Uadio, Inc., and RCA Communications, Inc.) and a plan of reparations. On December 7, 1955, the parties (except for Commercial Pacific) requested approval of an ag-reement for settlement of damages by transfer of traffic from the cable division of 'Western Union to the eonlplainants. The Commission advised the parties on J nne 13, 1956, that it eould not approve the agreement but afforded them oppor amity to present an ae,ceptable alternative proposal prior to desig llating the damages question for further hearing. Far East traflic.-The 1955 annual report noted that RCA Com munications, Inc., had petitioned for reconsideration of denial of REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 55. request that action be initiated under the decision in Docket 9292 (described previously) to require Western Union to cease handling traffic to various Far East points over its cable system via London and, instead, distribute such traffic to international telegraph carriers entitled to share in area C traffic under the terms of the international formula. After pointing out onl\1arch 28, 1956, that the original request was denied because the Commission did not consider the matter appro priate for action on its own motion, the Commission interpreted the petition as containing in essence a formal complaint and set the mat ter for hearing (Docket 11663) with the previously filed formal com plaint of RCAC requestiug rcparations for such allegedly illegal Western Union handling (Docket 11364). The American Cable & Radio Corp. companies and Globe Wireless, Ltd., filed notices of par ticipation. Hearing began September 11, 1956. Washington area tieline service.-In .July 1955, the Commission suspended in part a tariff amendment filed by Press Wireless, Inc., extending an oifer of tielines at its expense to include customers located outside ·Washington, D. C., within 10 miles of its Washington office [Docket 11441]. Hearings, in which ·Western Union was permitted to intervene, were held during September 1955 to determine whether such extension was a just, reasonable, and nondiseriminatory practice, and if it would be lawful under the aet. On September 20, 1956, the Commission held the tariff amendment unla,vful in certain respects but indicated that a modified tariff would be lawful. Nonchargeable tieline designations.-In June 1956, the Commis sion suspended a tariff proposal by American Radio & Cable Corp. to permit a sender to insert a nonchargeable designation of a tieline number on telegrams addressed to persons connected by tieline to its operating companies [Docket 11761]. An investigation was ordered into the la,vfulness of such~tprovision. A. C. & R.. was permitted to cancel the suspended turiff, and hearing wus postponed indefinitely. Tariff Schedules During fiscallH56, international and maTine carriers filed 718 tariff Hchedules, 26 applications for permission to file tariff schedules on less than 3D-days' notice, 326 division of tolls statements, 118 reports of negotintions with foreign administratiolls and carriers, 322 contracts, and H45 amendments to contracts. Noteworthy were contracts filed by ·Westel'll Union and The Com mercial Cable Company which .set forth the conditions under which Portugal renewed the rights of the cOlllpanies to land, operate, and maintain cable fucilities in the Azores. 56 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Rate Level and Structure No changes occurred during fiscal 1956 in the level of rates for telegraph traffic outbound from the United States. There were sev eral changes of a minor nature in inbound rates. None of the intcr lwtional carriers requested any revision of the existing rate level. Other Regulatory Mailers Relief and pensions.-Four carriers instituted changes in their pension arrangements during fiscal 1956, primarily to effect liberali zation of benefits. The plan proposed in fiscal 1955 by One large carrier to adopt a partial pension funding program was set up on a permanent basis. The Commission pursued its general studies of tile carriers' pension arrangements, particularly with the view of de termining the effect, for rate-making purposes, of pension costs upon allowable expenses. Reclassification of plant.-Certain cost adjustments applicable to the plant and equipment of several carriers, found in fiscal 1955 to be essential to the proper restuternent of plant cost, have not been completed by the carriers. With the advice and assistance of the Commission, final restatement of the plant of these carriers on the basis of original cost, as required by theCommission~srules, isex~ pected to be consummated during the ensuing year. Depreciation.-On the basis of cooperative studies with the car riers, pursuant to section 220 (b) of the act, the Commission, for the first time, prescribed annual depreciation rates for the depreciable radiotelegraph plant of All America Cables & Radio, Inc., and Mackay Radio & Telegraph Co., effective January 1, 1955; and for the plant of Press 'Wireless, Inc., effective January 1, 1956. Depreciation rates are expected to be prescribed during fiscal 1957 for other carriers. Studies to determine, for rate-making purposes, the reasonableness of the depreciation rates and charges, the recorded depreciation reserves, and the propriety of the depreciation practices of the carriers were con tinued. Continuing property records.-Considerable progress was made by the one remaining international telegraph carrier in the restatement and final installation of its property record on a satisfactory basis. Completion should be effected within fiscal 1957. Remedialmeasures have been taken by those carriers whose property records in fiscal 1955 were found not to be in substantial compliance with the Commission's rules. The Commission gave advice and assistance to the carriers and further pursued the verification of the form and content, and the evaluation of the effectiveness, for regulatory purposes, of these prop erty records. Miscellaneous accounting matters.-Continuing consideration was given to the accounting practices and procedures of the several REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 57 international telegraph carriers to assure required accounting and adequate reporting. Studies were continued relative to (a) expunging from the carriers' rate base all plant and equipment not used and use ful in public service, (b) classification of operating revenues, (c) plant installations and retirements, and (d) ocean-cable maintenance. STATISTICS General Annual reports were filed by 410 common carriers and 7 controlling companies for the calendar year 1955. Considerable financial and operating data taken principally from these reports are published an nually in a volume entitled "Statistics of the Communications Indus try in the United States". (See appendix list of Commission publica tions sold by the Supcrintendent of Documents.) The larger tele phone and telegraph carriers also file monthly reports of revenues and expenses, and summaries of these data are published monthly by the Commission. Telephone Carriers Annual reports by common carriers included those from 61 telephone carriers and 339 carriers rendering mobile radiotelephone service. Se lected financial and operating data concerning telephone carriers for 1955 as compared to 1954 are shown in the following table. Reports from 318 miscellaneous (nontelephone company) land mobile radio telephone carriers show that their operating revenues for 1955 totaled $1.9 million. More than two-thirds of these carriers reported operat ing losses for 1955. 5.56 7.18 8.66 0.52 9.40 8.76 13.85 10.69 7.80 2'2. 79 17.70 21. (\2 10.48 (3) (3) 5.28 9.69 V,3 7. (il 1955 77, 2V5, 410, ] "9 2,628,959,0.';0 648,827 241,526 407,31)1 $2, G02, 871, ·11:11 I 1954 73,106, M5, 370 2, 384, 882, 035 mO,277 220,198 396,070 $2,501, ij66, 332 Item , I .PerCE'nt of : Increase or i (decrea:;e) -------------+-----1------, !'\'umbefofcarriers_____ 53 .53; Bookcostofplant(asofDcc.3[) _ ___ I $14,931,532,012 $16,22.1,353,81,), Depreciation and amortization reserves __ . I $J, 8411, 759, 757 $4,097,f,9l, 470 ' Nd book cost of plant. _~=::$11,084,772,245 $12,126,662,345 ~ll)~:~~k~~·(~;~-~g~~~s--~~~~~~~~--- ----~~~~~~~.Ifi:~~:~g~:ti5~~:e~~:~~~:~7~ Total operating re\-ClHleS_ _ $.'i, 024, 554, 465 $5, 5tH, 530, 3117 Operating expenses and operating ta:>;es $3,837,203, MU $4,136, Ii9R, 4Xl Provision for FelIcral income taxes __ . $538,267, 6SS WGO, 937, 939 Net operating income after all taxes_____ Sll19, 082, 688 $7G3, 993, 284 Net income_._ _ ,., _I $570,727,785 $694,118,510 Dividends declared__ __ $450,493, 873 1 $497,725,786 Company telephones; Busilwss .___ __,,_________ 13,934,092 11,708,802 Residellce__________________ _ 32,179,432 34,480,991 Kumber of calls originating during the year: ---I Local 3___ _ _ '1'011 2_- . - - I Number of employees at end of October__ ---I :\Ta1e_ ----- I TotfJe~~~clls;;ti()n-i(;I~ti_\e;-cal:_-- ----------.------ __ Telephone carriers_ 1 --------- I Data shown relat.e to telephone carriers whose annual operating revenues exceed $250,000. Intercom pany duplications, exccpt in minor instances, huye been eliminated. 2Partly estimated by reporting carriers. 3The Burnlwr (If calls shown are not comparahle, as mally calls were reclassified from "Toll" to "Local" dnring 1955, due to clIhwgement of numerous locul calling Ulcas. 58 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Telephones by Slales More than 56,200,000 telephones were muse m the United States at the start of the calendar year 1956. Of the total 46,200,000 were owned by the Bell System and 10,000,000 by independent companies. A tabulation follows: Distribution ot telephones by- Total State number of OwnershIp Type of service te1c-phones BeUSyswm All othor Business RrsidellCC Alabama_____ ----- ------- ------------. 583,400 SIl,700 71,700 158,600 424,800 Ariwns_________ ------ ---------. ------. 259,900 252, ()()() 7,900 94,100 165,800 Arkansas____ --- ---._---- 314,400 243, aoo 71,100 96,100 218,300 CillHom/s. ______~~~=_____, ------.- ------ 5,435,600 4,479,000 955,700 1,727,200 3,708,400 Colorado____ . _________ --------- -------- 574,100 556,000 18,100 184,000 390,100 Connecticut________ . ----.-- -------- ---. 1,024,500 21,000 1,003,500 281,000 740,500 Delaware_______ --- -------. 165,300 165,300 -- ----- 49,800 115,500 District ofColumbb~_-~==______ ------ 552,000 5m,JOO 1,900 261,600 290,400 Florida__ -------- -------- --------- ----- 1,131,400 778,000 353,400 410,200 721,200 Georgia__ ------------ -------- -- ---_._-- 820,600 7t8,500 102,100 249,700 570,000 Idaho___ ------_._-- --------------- ----- 173,000 137,400 36,500 48,200 125,700 Illinois_ ---- ---------- -------- --------- 3,682,800 3,104, ;100 578,500 1,135, fIOO 2,547,200 Indiana. --- ----- ---------- ---------.-- 1,434,400 885,300 549,100 366,700 1,067,700 Iowa___ --- ---------- ------_.- --------- 960,500 595,700 364,900 203,400 757,200 Kansas______ - --- ------- -------- --- --_.--- 7al,200 572,400 158,800 177,200 554,000 Kentucky___ ----._----------------------- 613,000 408,900 W4,I00 161,500 451,500 Louisiana____ ------- ------ ---------- 744,400 709,700 34,700 206,700 537,700 Maine.__ --_. -------_._-, --------------- 258,000 233,500 25,400 69,300 189,600 MarJ']and_ _______ --------- --- 945, 100 925,400 19,700 261,200 683,900 Massachusetts____________ -----_.- ---- 1,910,500 1,906,000 3,700 548,700 1,361,800 Mlchigan____ ----. __ .- --------- --------- 2,662,000 2,403,700 258,300 694,600 1,967,400 Minllesota~ ----- ------_.- ---------- 1,097,300 849,400 247,900 273,600 823,700 MisslssippL_._ ----_._- --------- ---- 308,100 2M,2/)/} 11,900 88, 300 2]9,800 Mi$ourL _____________________ ------_._-- 1,402,000 1,167,800 234,200 385,300 1,016,700 Montana_________________ . --------------- 194,500 169,700 24.800 55,100 139,400 Nebraska_____ ----_._------ ---. --------- 4'77,300 242,700 234,600 117,900 359,400 Nevada_______ . __ ----- ---------- ------ 76,600 38,400 38,200 31, fIOO 44,700 New Hampshire ------ ------- ---------.- 175,200 166,200 9,000 45,300 129,900 New Jersey _____ . ___ ------ ----_._- 'O- 2,264,700 2,222,300 42,400 620,200 I, fi44, 500 New Mexioo. _______ ------------- -_._-- 188,900 157,300 31,600 75,100 113,800 New York________ •________ ---------- 7,100,200 6,662, lOO W7, loo 2, 3J)5, 500 4,803,7oo North Carolina________ ----------- 810,800 451,900 358, WO 234,600 576,200 North Dakota______ ---------- ---_._- 150,100 99, ,'iOO f>O,6!lO 37,000 112,200 Ohlo __________ ----------. --------- ----- 3,316,500 2,191,300 1,125,200 844,500 2,472,000 Oklahoma ---------- ---------- "------ 705,900 614,600 91,300 209,800 496,100 Ort!goo ___ -- -_._---- --- 576,800 162,100 II4,700 164,700 112,100 Pennsylvanla.__ ------- ----- -------- 4,041,800 3,409,600 632,200 1,038,000 3,003,800 Rhode Island____ ---------- --_. 287,300 278,500 8,800 81,300 206,000 South Carolina._ ------- --------- ---'- 378,400 290,400 88,000 112,500 265,900 South Dakota_______ ------------- ----_.- 179,800 135, ,')(j() 44,300 44,200 135,6OU Tennessee_______ ._ ----------- ---------- 839,500 734,600 104,900 227,500 611,900 Tex3S__ ------------ --------- ------- 2,578,000 2, 161, 400 416,600 810,800 1,767,200 Utah___ ----------- -----------------_. 266,300 251,600 14,700 76,000 190,300 Vermont ----------------.-- --------- _c_ 108,100 94,700 13,400 29,000 79,100 Virginia__________________________ -------- OOli,3llO 783,600 181,700 285,800 fo79,500 WllshingtOll_______________________________ 952,700 761,700 191,000 214,600 678.100 West Virginla___________ ----------------- 433,200 382, ROO 50,400 110,200 323,000 'Visconsin___________ ________ ----- 1,218,900 800,300 328,600 328.200 800,700 Wyoming__________________~_______ ------ 102,000 93,100 8,900 32,400 69,600 ---'--I-~ United States__________________ ---- 56,243,200 46,218,200 10,0'25,000 16,388,700 39,854,500 , REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 59 land line Telegraph The following table sets forth financial and operating data relat ing to the domestic land line operations of the Western Union Tele graph Co. for the calendar year 1955 as compared to 1954. The data pertaining to its cable operations are included in a later table relating to ocean-cable carriers. The Western Union Telegraph CO.1 Item Book cost of plant (as of D('c. 31) _ Depreciation Bnd amortization reserves._ Net book cost ofplanL.________ _ _ Mcssagprevenues ------_. --_. 'Total operating revenues~~... __ O,wrating pXlxmst's, depreciation and other operating revenue deductions___ __ ____ _ • _ Net operating revenues • _ Provision for Federal income taxes__ _ _ Net income. . _ Net income (land line and cable systems) _ Dividends (land line and cable systems) _ Number ofrcv~nuemessages handled 1_ Number of employees at end of October- Total compensation for tho year ". __ Percent of 1954 1955 increase or (decrease) $300,12.5,917 $310,967,883 3,61 $130,182,872 $135,826,081 4.33 $169,943, 045 $175,141,802 .06 $173,819,586 $188,854,951 8.6.5 $209,634,899 $228,816,199 9.15 $194,657,236 $206,024,14{) 5.84 $14,,977,663 $22, 792, 059 52.17 $6,207,167 $9,613,288 54.87 2 $4, 479, 468 3$10, 330, 982 130.63 2 $6, 470, 898 3$11, 686, 415 80.00 $3,730,406 $5,695,383 52.67 152,581,589 153,910,153 0.87 37,009 37,785 2.10 $137,520,793 $143,289,324 4.19 I Rl'prescnts data for land-line operations. Figures covering cable operations are included in tho table below relating to ocean-cable carriers. : After allowance for a charge of $3,119,000 ($6,498,000 less $3,379,000 tax saving) due to establishment of an estimated liability for vacation pa}' amI other employee benefits. 3 After allowance for charges ot $978,030 ($1,980,030 fess $1,002,000 tax saving) repre:renting bond refinancing expenses and call premiums and $594,083 expenses o( issuinj!; additional capital stock. t Includes dOmestic transmission oC transoceanic and marine messages (about 8,502,000 in 1954 and about 8,996,000 in 1955). 60 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Radiotelegraph and Ocean-cable Carriers There are shown in the accompanying tables financial and operating statistics selected from the annual reports filed by the United States radiotelegraph and cable carriers furnishing international communi cations services. These tables compare the figures for the calendar year 1955 to those for the previous year. Radiolelegra.ph carriers Item 1954 19,55 I I Prrcrut of increase or I (\kcrease) Numher of carriers __ Book cost of plant (as of Dec. 31) ,_ Depreciation and amortization reserves. Net book cost of plant Message revenues: Domestic 1 _ Transoceanic. __ Marine _ Total operating revenues _ Operating expenses, depreciation and other operating rc\'ennc deductions_ _ _ Net operating revenues. " _ Provision for Federal incomo taxes _ Net income _ Dividends declared __ . ._." . _ Number ofrcyenue messages handled: Domestic z.._. ..__ . " Transoeeanic_ ~{!!.riIlC__ __.. _ Number of employees at end of October__ Total compensation for the year_ 7 7 ! $40,265,004 $41,952,129 ! 4.19 $17,774,111 $18, 4S9, 646 I 3.8f> $22, MIO, 893 $23, 192, 4831 4.45 $1,81,8,133 $2,053,155 9.89 $21,810,481 $23, ?80, \lII I 9.03 $1,449,877 $1, n54, 2139 7.2\l $31, 2()i, 2li8 $34,500,802 10.85 $28,117,Oli.') $29,207.577 3.88 $3,087,203 $5,383.225 74.37 $2,236,5.52 $3.473,747 55.32 $2, 2f>2. 287 $3,533,997 56.21 $400,000 $650,000 I 62.50 54,7;15 50,971 I {fl. 88) 10,838,085 11, &\3, ,r,1 I ~l.37 940,71.') 1,010.338 7.40 ,'),940 5,925 (0.25) $24,011,980 $24,623,599 2.53 I Includcs rcycnues from the rlomrstietransmi&~ionof transoceanic and marIne messages outside of points of entry or departure in the Unitcd Statcs and rcyenucs from domestic-classification messages (prim,tril;r Canadian alllll\lexican). 2 Represents domestic-classification messages (primarily Canadian and Mexican). Ocean cable carriers (including lVeslern Union cable operations) Item Number of caniers . . . _ nook cost of plant (as of Dcc. 31L _ Depreciation fUld amortization reserves~_. . _ Net hook cost of plaut.~ Message revenues: Domcstic 1~.~_ TmIlsoceanic _ Total operating revellues___~_ Operating expenses, depreciation und other operating revenue deductiolls . . ._. Net operating rcyenulls_. __~_________ _ Provision for Federal income taxes __ Net inrome _ Divirlemls declared 2 _ Nwnber ofrf'venue l(l('ssages handled: ~1~~~~~~t~liC_-~~~~~~:~~:--------- Numb('r of employees at end of OctohoL 'rotal eomponsation for the year PerC<'nt of lU54 HIM increaso 01' (decrcase) 3 3 $9~,401,67~$03, 226, 207 (0.19) $58,213,461 $,')7,971,72,') (.42) $3,'), 188, 212 $35,254,482 .19 $190,320 $1913,432 3.21 $23,240, (Il7 $22, 008, 230 (1.4:i) $32, 606, 848 $33,458,741 2.61 $26,536,8M $29, }',)8, 121 9.8S $6,069,994 $4,300,614 (29.1.5) $2, (Hi,.s:)~$2,854,712 \1.05 $3,070, flU $1,486,5H\ (51. 60) $883,670 $883, f.70 98,729 10,'),081 6.43 10,446,01.14 10,489,882 .42 6,874 ,'),919 . " $15, 22G, 644 $15,924,564 4.58 1lnclurks rovenues of two carrif'n; frOlll tlw (lomostic tmnsmission of transoceanic mOSl'agos outside of points of cntry or dcrartllre in the United Status, and rOVOUlH:S from domc-stio-cl,'ssilicatioll mossagt's (primarily Canadian). 2 All dividends declared by Western Union Tolegraph Co. have been reported in thc table above relating to tho (loll1('stic land-line operations of that company awl are ex(']uded from this table. a Represents domestic-classification messages (primarily Canadian), REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 61 International Telegraph Traffic A total of 548,574,177 paid words were handled into and out of the United States during calendar 1955 by the international cable and radiotelegraph carriers. In the outbound direction 277,398,370 words were transmitted, while 271,175,807 words were received in the inbound direction. The number of words handled by the 6 radiotelegraph car riers totaled 296,607,837, or about 54.1 percent of the total, while the remaining 251,966,340 words, or 45.9 percent, were handled by the 4 cable carriers. The volume of international telegraph traffic, in words, exchanged between the United States and each of the principal countries of the world during calendar 1955 is set forth in the following table. United States-Internat£onal telegraph (radio and cable) traffic in words, 1955 (includes traffic transiting the United Stale,'{) Number of words Number of wonls Country Outbound from the United States Inoound to the United States OQlllltry OutooWld from the United States Inoound to the United States Ellrope, Africa, and the Near Ea3t EurOJje, Africa, and the Near Ea8t-Continued 8, lHi, 839 1,12O,42;J 193,268 836,952 8fin, 836 8,910,584 207,175 1M, OIl 11,939,218 52Q,287 2,342,389 4,807,845 987,434 S, 949, 978 1,372,097 1,002,357 1,413,734 770,2UO 728,340 846,553 1,046,605 1,140,038 775,102 IUl,028 1,125,558 338,200 2 030 530 4: 022: 623 871,897 127,837 015,214 2, 2IJ3, 422 9,887,739 267,6.59 150,843 SO, 931, 91277,892,419 5,707,431 1,0:)2,442 27il,149 929,947 7:32,904 9,042,O1l3 215,199 154,448 10, J07, 510 748.029 2,374,064 5,5\8,049 1,133,442 6,330,430 1,580,205 1 62S 587 1: iOO: 346 927,3,';li 7ti2, (i83 1,087,262 1,883,888 1,0'15,OOB 1,041,1102 228,039 1,408,842 272,985 2,349,001 4,439,22.1 1,047,006 148,341 861,226 2, 117, 992 8, ,523, 915 285,760 218,466 47,117, 340 150' 1M, 132 1, 110, 70S 1,000,027 ~2,990 1,668, 096 'ISO, 735, U;)3 140,467,524 ==== lVe8tIn-die.~,Central, North, and Soutl! America Unite.d Kingdom_ Yugoslavia __~_ All othcr places . 'l'otul . " 150,321 922,533 1,19&,949 266,510 3,996,990 336,815 255,31'.1i 729,3lll 1,208,026 A ,. a 1,6G9,785 rgon In, -------.--- 177, 23 077 Eou llior - - - 72;571S IUuat~Illlla__- 101 Ul"'" I H,t!fl_ 105: 28i I Hondur,ts Republtc -. 57283,~raUlale:!· - - - JS:J' 210 1 1\1(1X1CO~- - 6,464: hlb 1'{"thprJands \"'estInd[~'s 1!i4_~' H2 1 .:-\\Carugua . _ ) 482' 76(' Other British \Ve:'lt IndIes 3_ 91;4'ISU~Panama _ 897:381 \aragu24,412 2,015,57(; 268,919 598,822 14, 87\}, 188 129,672 14,417,864 1,83.5.5.11 372,419 r,9,499 9(111,2~;; 439,57(; 804, In 2, SOO, 841 10,500,862 903,188 M7,353 132,863 125,359 . 109,919 574,898 5tl9,418 7,756,133 2,790,270 402 UOO 866: 820 1,077,88>1 127,875 272, l()(\ 3,215,014 3. Ml, 722 7,894,699 240, (047 335,951 107,235 1, 429, tJ18 2023 863 5; 08 24 I7I 37 28 87' 25 170 37 28 52 2 6 o 2 Subtotal _ TotaL _ Mitcellaneou8 Interlocking directoraf,('s __._~_ Submarine cable landing liCl'nses __ Petitions or IIlotions (nondockct)__ Experimental commoncarri('r~_ Experimental renewaL _ Subtotal _ Telephone extensions Telegraph extensions__ Telephone reductions Telegraph reductions Subtotal. _ Wire facilitiet ~1,:~;I,:~~[':~ 8.'> 712 il2 &" ----~-------'---- ____________ 95 965 961 I 99- --;~'Iii g o 3 3 ' 0 fm 1,565 1, 4441 187 'I-~::::~:::---1~ 221 - 4,769 4,637 I 353 Safety and Special Radio Services GENERAL The Safety and Special Radio Services embrace those radio services which help protect life and property and contribute to industrial and business operations. They fall into four general categories: Safety 8ervice8 such as marine, a"dation, police, fire, forestry conservation, highway maintenance, special emergency, state guard, and point-to-point in Alaska. Indu8trialservice8 such as power, petroleum, forest products, special industrial, low power industrial, relay press, mo tion picture, and radiolocation-Iand. Land transportation 8e1'I}ices such as railroad, Illotar carrier, taxicab, and automobile emergency. Miscellaneo118 services such as amateur, disaster communica tions, and citizens. Radio has become an essential tool of industry, but its use is now confined primarily to frequency bands allocated for this purpose 10 year ago. Since then there has been a tremendous expansion in in dustrial usage. Present allocations and rules must be revised drastically to obtain a more efficient use of available frequencies. It will be necessary to make a fundamental review of available data, both engineering and economic, as a basis for effecting these changes. This program could be begun at relatiyely modest cost and might be completed in about 3 years. The demand for radio in the safety and special services continues unabated. More than 170,000 applications were received in fiscal 1956. Itis estimated that this number will exceed 181,000 in 1957 and 186,000 in 1958. Because of limited personnel, it has been impossible to keep current on this application flow. Even with a rather superficial examination, it has not been possible to act on them within less than approximately 2 months of their receipt. This fact has created not only administra tive difficulties, but also an unsatisfactol'y situation from the point of view of the applicants and the public. Inability to act expeditiously on applications generates numerous telephone and letter inquiries whieh, in turn require extra 'york to answer. The result is that the time for application processing is further reduced. 63 64 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The number of stations is an index to the activity and regulatory workload in these services. The nonbroadcast services (exclusive of amateur operators) had less than 10,000 authorized stations in 1940, increased to more than 154,000 in 1950, and exceeded 300,000 in 1955. Today these authorizations exceed 338,000, representing the use of more than 1,100,000 fixed and mobile transmitters. PRIVATE MICROWAVE SYSTEMS Considerable strides have been made by the Commission toward establishing a permanent licensing policy for private microwave sys tems. I-Iowever, many questions remain to be resolved-such as who shall have prior rights in congested areas, and how to deal with the potential interference problems crc"ted by m"ny microwave point-to point systems operating in or converging upon a single large metro politan area. The question of paralleling common carrier microwave facilities "nd the facilities of priv"te industry needs to be settled in a manner that will be equitable to those concerned "nd yet make the most efficient use of frequencies to avoid unnecessary duplication and unused circuit capacity. Because of the public domain nature of radio frequencies, restric tions must not be liftcd to the point where the situation becomes chaotic and mutual interference prevents satisfactory use of this public property. MARINE RADIO SERVICES Safety at Sea International Convention and Communications Act.-Approxi mately 50 United States passenger ships and 1,200 United States cargo ships of more than 1,600 !,FfOSS tons which navigate in the open sea are compulsorily equippcd with radiotelegraph installations as required by Title III, PartII of the Communications Act and the International Convention for Safety of Life at Sea (1948). Amendments to these law and treaty provisions have recently added a group of cargo ships between 500 and 1,600 gross tOllS which are re quired to carry r"dio installations for safety purposes. This group has a choice of either radiotelegraph or radioteleph.one, but all have elected to carry radiotelephone. During the fiscal year radiotelephone installations on 43 vessels in this group\yen~il\spe,cted and certificated, the majority for the first time. In most instances the ships were "ble to comply by using radiotelephone equlplucnt previously Toluntarily installed. Safety at sea legislation.-H. R. '7536, introduced in JUly 1955 and signed in August 1956, adds a new part III to title III to require 'United States vessels transporting n101'e than G passengers for hire REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 65 while navigating in the open sea or on domestic tidewaters to carry radiotelephone by March 1, 1957. The new law does not apply to vessels compulsorily equipped with radio installations by prior law or treaty, or to vessels on the Great Lakes. About 3,000 ships are affected. H. R. 4090, introduced in February 1955, would amend part II of title III to require installation of an automatic radio call selector on United States cargo ships carrying less than two qualified radio operators. The Commission tested a. specimen device offered by aIle manufacturer and did not support adoption of the bill. Congress requested the COlllmission, theCoa~tGuard and the :Mul'itimc Admin istration to make a further stu(l.y of the subject and report by~lal'ch 1, 19;")7. H. R. 72,1D, introduced in July 1955, would amend part I of title III to provide a maximum fine of $10,000 01' impl'isol1rnent for not 1110re than 10 years, or both, for transmitting false distress signals by radio, which is now prohibited by section ;-32;'") (a) of the Communications Act. Great Lakes agreement.-On November 13, 195,1, the Agreement for the Promotion of Safety on the Great Lakes by J\leans of Radio (a treaty between the United States and Canaria) came into foree. This agreement compels several hundred United States ships, as well as ships of Canada and other countries, to carry radiotelephone for safety purposes. Thus, many Great Lakes vessels for the first time had to pass a radio inspection to obtain the required certification. ~Iostof the vessels were able to comply without obtnining ne,," t'{llLip ment or substantially modifying existing installations. How"ever, in a few illstances,translllitter~were replaced in order to meet pmYf'r requiremel1ts and, in sm"eral cases, installations had to be lllovecl to a higher location 011 the ship before they could be certified. Exemptions from compulsory radio requirements.-The Com 111ission is authorized to grant exemptions from the ship radio l'eqllire lilents of the Safety Convention, the Commuuieations Act, and the Great Lakes agreement. Under this authority, it renewel! blallket exemptions for OIlC year to all passenger vessels of Iij gross tOilS and under which are navigated in the open sea within 20 nalltical liliJes of the nearest land, and to allpas~ellgervessels of less than 100 gross tOllS whelllltwigated within prescribed coastal areas. Forty-four fOl'lllal applications for exemptions of individual ships were received during- the year, of which 18 were g-ranted. In addition, some informal telegraphic applications for emergency exempt iOll wprc granted which, ill most cases, allmved vessels to operate uBtil defrl'tlve radio cqlliplnent could be repaired. 66 REPORT OF THE FEDERAL COMMUl'."ICATIONS COMMISSION Applications for exemption which were denied included those for several radiotelegraph-equipped lumber-currying cargo vessels nayi gating along the Pacific coast, aud for seveml radiotelephone-equipped cargo ships of between 500 and 1,600 gross tons navigated along the Atlantic coast. No exemptions from the requirements of the Great Lakes agreement had been granted as of June gO, 1956, and 2 applica tions for exemption from such requirements were denied. A procedure was established during- the yeal' whereby vessels, exempted from compulsory radiotelegraph requirements because of their size or for other reasons, would be required, in lieu thereof and insofar as practicable, to comply with the rules requiringradiotele~ phone installations on cargo ships. Vessels of more than :100 gross tOllS were required to comply with all of these rules while those of less than 1,00 gross tons were required to comply only with the more basic l"ules. Distress studieso-J-Ieretofore, studies of distress communica6ons have been made in compliance with section 4 (0) of the Communica tions Act. However, during the fiscal year it was necessary to all but discontinue these studies due to the lack of personnel. Consequently, there are no summaries of distress signals in this report. Radio aids to navigation.-Shore-based radar stations are being used on a developmental basis primarily to (1) assist in the piloting of ships entering and leaving major harbors, and (2) assist in the navigation of vessels in connection with construction projects and oil well drilling in the Gulf of Mexico area. The 4 stations in the first group are located at Long Beach, Los Angeles Harbor, San Francisco, and Port Angeles, on ti,e Pacific coast. There are 6 stations in the second group. At the close of the fiscal year, 2,980 United States ships were au thorized to use radar. Equipment and Technical Advancement Type-acceptance program.-The Commission's type-acceptance program was extended to cover shipboard radiotelephone transmitters operating on frequencies below 30 megacycles. Such transmitters licensed after June 1, 1958, are required to be type accepted. Subject to certain conditions, transmitters licensed before that date are not required to be type accepted until subject to relicensing after June 1, 1963. Technical standards concerning overmodulation prevention and limitation of spurious emission become applicable with type accept ance. The same standards of limitation of spurious omission appli cable to ship radiotelephone transmitters have been extended to ship radiotelegraph transmitters (with the exception "f lifeboat trans- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 67 mitters) with the same time schedule. At the close of the year there was pending a request of the American Merchant Marine Institute, Inc" to ease the application of the requirement for radiotelegraph tra.nsmitters. Radio Technical Commission for Marine Services (RTCM). The RTCM is a cooperative association of Government and non-Gov ernment agencies organized in 1947 to study marine telecommunication problems and related matters for the purpose of providing guidance to and coordinating the efforts of all organizations concerned. The Commission is represented on the executive committee and participates iu the technical studies. During the year, the RTCM was active in connection with the fol lowing problems: Special committee 19 completed its study of a "Reliable Short Range Radio telephone System" for illtership (bridge-ta-bridge) communication. Special committee 25 continued its preparation of recommendations for mini mum design and operational specifications for 2-megacyc1es radiotelephone equipment. Special committee 30 is undertaking a D.:'lsic review of the application of modern electronics to the marine industry. Special committee 31 is studying the specific operational and equipmentprob~ lems which would be involved in the event aircraft stations would be permitted to communicate with ship stations in the VH]j' band. ~pecialcommittee 32 completed a report and recommended rules to recognize the proposed international radiotelephone alarm signal. Special committee 33 is studying the proposed early andpro~ressiveuse of single sideband radiotelephone operation in the maritime mobile services. Special committee 34 is working 011 a ship telephony educational program directed to more efficient use of ship stations by the many thousands of nonpro fessional radio operators. Single sideband radiotelephone 8ystem.-Considerable interest in the possible use of single sideband type of transmission for maritime radiotelephone services in the medium and high frequency bands has resultet! from the development of low power single sideband sup pressed carrier communication equipment. The Commission gave speeial temporary authorization to an established coast station to con duct ship-shore tests. The use of this technique in the maritime radio telephone service would improve spectrum utilization. This subject is being studied by special committee 3:3 of the RTCM. International standardization of VHF bands.-The Commission hus indorsed action to promote international standardization of VHF bands for the maritime mobile service. As soon as manpower permits, a special study will be undertaken of the problem of transferring all short distance maritime telephony to VHF within a reasonable period of time. 68 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Marine Radio Communication Systems Coast stations.-As of June 30, 1956, the number of coast stations, other than Alaska, providing communication service to ships is shown in the following table: Frequency band and range 'l'elephoIl)' m 2-3 megacycle band (medIUm range) _ VHF telephony (short range) _ HF telephony (long range)__ _ _ 'relcgraphy, LF, M1", HF (medium to lonr; nmgc) _ Public Limited coast ('Qast 49 4 43 194 5 1 28 2 Coast stations operating in thc VHF bands increased substantially during fisea11956. One reason is that VHF limited coast stations are usually established to meet the needs of an ever-expanding domestic economy. In contrast, the number of coast stations operating on telegraph and telephone frequencies having long-range characteristics for communication with oceangoing vessels has renluilled substantially the same. Marine fixedstations.~The number of marine fixed stations has increased to 66. These stations arc primarily for safety purposes. On a secondary basis, the frequencies are used for communication with off-shore oil-,veIl dri1ling operations. Great Lakes weatller translnissions.-A. scrvice of special impor tance rendered by public coast stations on the Great Lakes employing radiotelephony is the transmission of weather data to ships during- the navigation seaSOll, and to vessels operating on Lakes Superior- and j).Iichigan during' the winter season. Intership frequencies.-The Commission clarified its rules with respeet to the usc of the 2-megacycJe intership frequencies, limiting their use to cOHllllunication pertaining to safety, operational, Or busi ness purposes. The rule as previously written resulted in misunder standing by Illany uscrs. The safety aspect of the system should be enchanced by the specific listing of permissible communications on these frequencies. Implementation of Geneva frequency plan.-The Atlantic City (1047) fl'equeuey allocations and the Extraordinary Administrative Hadio Conference, Geneva, 19b1 (EAHC) agreement covering fre quencies below 27 megacycles for the maritime mobile service haTe heen implemented with a few exceptions. All ship and coast stations licensed for telegraphy are on their ne,,,, internationally approved fre quencies. All ship stations utilizing- telephony in the bands between 4000 and 2;\000 kilocycles are operating in accordance with the new assignments. PuLEc coast stations utilizing telephony in the IfF band REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 69 are on the new frequency assignments with the exception of the new 8-megacycle frequencies for Hawaii. Telephmle frequencies allocated to the maritime mobile service in the 2-3-megacycle band were made available for ship and coast stations as rapidly as police assignments were removed fronl nlaritime frequencies to suitable police frequencies. All of the ship-shore frequencies in the 2-3-1negacycle band are now available for assignment, either on a day only or a 24-hour basis, except 1 frequency pair for the Los Angeles San Diego area for which no availability date has as yet been designated. Operation in 152-162 megacycle band.-The Lake Carriers' Asso ciation petitioned the COlnmission to repeal the rule prohibiting assign ment of certain VHF frequencies to persons not actually operating the vessels on which the ship radio stations nre locate,d. As a result of the rule, vessels whose stations were licensed in the name of a communica tion company were not taking- advantage of the availability of the business and operational frequency 156.5 megacycles and, consequently, the full devclopment of thc Grcat Lakes VHF system was impeded. The petition was made the subject of a rule-Illnking proceeding which resnlted in repeal of the rule. Special communications for laying of deep-sea cable.-The Com mission authorized the American Telephone and Telegraph Company to cstablish a class II-D limited coast station at Port Angeles, 1Vash., for communication with the cable ship A/oat .T. Meyer (a United States Government vessel) to safeguard lives and coordinate testing; of a submarine telephone cable laid in the summer of ID5G Letween Port Angeles and Ketchikan, Alaska, a distance of approximately 7,,0 miles. New VHF public coast stations.-Applications of the 'Viscollsin Telephone Co. and the Ohio and~Iiehig:anBell Telephone Cos. foJ' nmv VHF public classIII~Bcoast stations on the Great Lakes were designated for consolidated hearing' on protests of the Lorain Count.y Radio Corp. and Central Radio Telegraph Co. Developmental control and relay, microwave systemo-Tug Com mUllications, Inc., was granted 4 developmental marine control and marine relay stations operating on microwaves (900-megacycle band) in the San Francisco area in conjunction with the grant of 2 VHF limited class III-B coast stations providing; a communieations system tnilored t.o the needs of the vessels involved. The microwave stations are located at San Francisco, Grizzley Peak, and Mount Vaca. Ship-shOloe radiotelephone public correspondence.-As of June 30, IH56, rule-making proposals were outstanding to extend the hours of the Seattle freqnency pair 2482 kilocycles (coast) and 2430 kilo- 404807-GG--f.l 70 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION cycles (ship) and to make the "-Hami daytime frequency pair 2490 2031.5 kilocycles available on a 24-hour basis. They were adopted August 30. Comment was invited on the need for a class I public coast station in the Gulf of Mexico area in addition to the class I stations already established on the east and west coasts for telephone communication with oceangoing vessels. To implement the Atlantic City table of frequency allocations, rule making was finalized on July 6, 1956, deleting the frequencies 6240 and 6455 kilocycles from those available to the Mississippi River system for ship-shore public correspondence. This action terminated a series of proceedings instituted in 1953. Various rule-making proceedings were finalized making available 2 or 4 megacycle frequencies at Baltimore, Kew York, Boston, and Kahuku, Hawaii. Interim licenses.-The interim ship station licclIsing procedure, which originally embraced only the 2 Mc intership frequencies and certain pnblic ship-shore frequencies, was expanded to include fre quencies below 30 Mc and above 156 Mc for public ship-shore corre spondence, the VHF intership frequency 156.3 and the VHF calling and safety frequency 156.8 Mc. Ship stations subject to compulsory radio requirements \vere inclllded in the procedure. 2182 kilocycle working frequency.-A new marine radio rule adopted during the year requires public coast stations to have 2182 kc transmitting and/or receiving equipment installed at each loca tion when transmitting and/or receiving equipment, respectively, is installed and regularly used by the particular station to provide service on one or more working frequencies within the band 1600 to 3500 kilocycles. The requirement must be met unless a satisfac tory showing is made that, for purposes of maritime safety, all or any portion of the apparatus for operation on 2182 kilocycles is not neces sary for effective transmission and reception to and from mobile sta tions within the working frequency service area of the coast station. Improvements of facilities and frequencies.-The following im prc)Vements in marine facilities and frequencies were accomplished: New 2-megacycle public coast stations employing telephony were established at Baltimore and Point Harbor (N. C.) to provide better service in these areas. Baltimore was formerly served by facilities at Wilmington (Del.) and Point Harbor by facilities at Norfolk. To further improve the service in Los Angeles-San Diego area, station KOU at Los Angeles was authorized to add two new 2-mega cycle daytime channels. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 71 New VHF public coast stations (152-162-megacycle band) were established at Seattle, Tacoma, Port Townsend, and Bellingham, ·Wash., to augment the preseut 2-megacycle service in the Seattle area. The frequency 512 kilocycles for telegraphy was made available for assignment to ship stations for use in Regions 1 and 3 for working and as a supplementary calling 'frequency when 500 kilocycles is being used for distress purposes. Public Fixed and Maritime Stations in Alaska Radio communication in Alaska.-Because of the limited wire line faGilities, Alaskan communities, except the larger cities served by Alaska Communication System (ACS) trunk lines, depend largely on radiotelephone and radiotelegraph for safety and business com Illlmication. Frequencies are allocated for C0111illUnication between eommunities, between communities and the .....'\..CS, and between coast and ship stations. The main intra-Alaska communication trunk lines are operated by ACS under the Department of Defense. The Com mission maintains liaison ,,,,ith ACS in coordinating Alaskan com munication facilities to serve the public interest. On .July 27, 1955, the Commission issued a blanket temporary au thorization to enable licensees of public coast, Alaska-public fixed stations, and ship stations to make necessary nlodifications to their facilities to meet the new Alaskan rules without making formal appli eation to the COImnission. This ,vas done so that the change-over could be effected before winter. Provision was made for the use of frequencies assigned to Federal Govel"lunent stations for comml,nication bet\veennon~Government Alaskan public fixed stations and Federal Government stations where this arrangement is necessary for intercommunication with theGov~ el'llment stations or required for coordination with Government activi ties. Sneh assignments may be made whenever the Commissiondeter~ Inines, after consultation with the appropriate Government agency, that it is in the public interest. Study of duplicate public facilities in Alaska.-A committee of Commissioners was appointed to study the problem of duplication of public facilities in the fixed service in Alaska, particularly with respect to those estahlished by the ACS. In some cases, industrial companies claim a, need for their own private systems in cities and towns where public facilities, either non-Government or Government (ACS), are already established. Normally, these established stations serve the comnlunities adequately and under the Commission's rules other public statiolls are precluded -from operating at such locations, since only 'one station nutybe authorized to serve a particular area or community. 72 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The study is for the purpose of determining whether the public in terest would be served by modifying this policy or making some other provision for nonpublic communication facilities in Alaska. Fixed and coaststations.~Atthe close of the fiscal year, there were, exclusive of Government stations, 919 public fixed stations and public coast stations authorized in Alaska. AVIATION SERVICES General The Commission is responsible for the regulation and licensing of all non-Government aviation radio facilities. These include aero nautical enronte, aeronautical operational fixed, airdrome control, flight test, flyingschoo]~aeronautical advisory, radio aids to naviga tion, Civil Air Patrol, and all communications equipment and navi gation aids aboard private find commercial ail'{,l'aft of lJnitpd States registry. In addition, the Commission authorizes and regulates llOll Gorernment aeronautical fixed communication circuits bet-ween the United States and overseas terminals. Aviation Organizations and Conferences The Commission participated in the ","York of 'nll'iollS intf'l'agrl1cy coordinating and policy groups during the~yearas a part of its ('on tinuing effort to lind solutions to the many Hel1' problems created by the expanding needs of the user-public, and in order to aceommodnte its rules and policies to the rapid technological adva.nces taking' place in the field of aviation. The Air Coordinating Committee p.CC) , the International Civil Aviation Organization (ICAO), and the Radio Technical Commission for Aeronautics (HTC.-\) o was the announcement by the C..A._A that messages such as those re questing ground transportatioll and meals from pilots of aircraft in flight would no longer be accepted by CAA facilitics. This action re sulted in a strong public demand for air-to-ground telephone service beyond that presently available through Aeronautical Public Service radio stations licensed by the FCC. The problem is reeeivi1l7 con sideration by a special committee established within theHTC~L International Conferences The special rcquirements of commereial jet :tircraft operation along international air routes ,vere first considered at international meetings during the past year. The impact of increased airspeeds on existing communication facilities and radio navigation aids, together with the limitations of existing equipment and operating procedures, has been the immediate concern to the International Civil Aviation Organiza tion (ICAO). In discharging its responsibilities in international civilaviatiOll~ the Commission participate{l in the preparation of a coordinated United States position regarding communications and radio aids to navigation for a number of international aviation conferences and was representedo~delegations to such conferences. Examples are the Pacific Regional Ail' Navig'ation Meeting, Manila; the Third Car ibbean Air Navigation Mecting, Ciudad Trujillo; and the Canada United States Radio Communication Meeting, 'Vashington. Special problems under consideration as a result. of these meetings include improved teletypewriter and voice communication channels for the North Atlantic air routes and the possibility of utilizing transhorizon (VHF forward scatter) techniques to attain this objective. Re<{uirements exist for new and improved long- range radio nayi gation aids on the North Atlantic, KorthPacific~and Carihbct1ll air REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 75 routes. Installation of new radio navigation facilities has been planned for the North Atlantic Region and studies regarding the best means of satisfying existing operational requirements for the other two regions are continuing. There has been a notable acceleration in the transition from the HF to the VHF, from manual teletype operation to multiplexing with au tomatic teletypewriter equipment, and from telegraph to telephone operations on the air-ground channels. During the past year, provi sion was made for the frequency requirements of new and expanded operations in the North Atlantic, Pacific, and Caribbean areas. Rule Making In addition to the general recodification of the aviation rules, ac complished during fiscal 1956, rule making was carried forward on a variety of subjerts, including implementation of additional radionavi gation frequencies, technical standards for single sideband operation, technical standards for type-acceptance of aeronautical radio equip lnent, revision of Alaskan aeronautical and aeronautical fixed £re-: quency assignments, and waiver of the radio operator requireUlent in connection with airborne radionavigation transmitters. Current tech nological developments which may result in rule making include trans mission of radio energy by means of ionospheric scatter, development of radar safety beacons, tone signaling, and new equipment capable of operation with 50-kilocycle channel separation. Aircraft Radio Stations Air-ground safety communications and navigational information are provided aboard private and commercial airplanes by means of aircraft radio statious. Approximately 3,000 air carrier and 30,000 private aircraft stations are presently licensed by the Commission. Aeronautical Enroute and Aeronautical Fixed Stations Aeronautical enroute stations provide a nonpublic safety and oper ational en route communication service, on a nondiscriminatory basis, to aircraft station licensees making cooperative arrangements with appropriate ground station licensees. Aeronautical fixed stations furmsh aeronautical point-to-point serv ice, notably in Alaska and between the lTnited States and overseas terminals. Owing to the limited number of available frequencies, aeronautical fixed stations are not authorized where land line facilities are adequate. There are about 2,000 stations of these classes. Civil Air Patrol Radio Stations The Civil Air Patrol is a civilian auxiliary of the United States Air Force. Members of the patrol are organized, trained and equipped to 76 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION assist in meeting both local and national emergencies, including vital search and rescue operations. More than 12,000 CAP stations are authorized by the Commission. Airdrome Control Stations These stations are primarily used to transmit control tower instruc tions to arriving and departing aircraft. This function is especially critical at busy airports, where adequate separation of approaching and departing aircraft must be maintained in order to prevent collision. Airdrome control stations are required to maintain a continuous listen ing watch on specified aircraft calling and working frequencies during authorized hours of operation. There are about 60 such stations. Aeronautical Utility Mobile Stations These stations enable control tower operators to direct the movement of emergency and maintenance vehicles at airports. There are ap proximately 160 stations in this group. Radionavigation Stations These facilities transmit radio signals which enable aircraft in flight to determine their positions with reference to the particular station or stations being received. Instrument flying nssumes major im portance during periods of limited visibility, when visual contact with the ground cannot be established. Ground stations in the radionaviga tioll service include radio beacon, radio range, localizer, glide path, marker beacon, and ground control approach stations. Over 300 such stations hold licenses. Flying School Radio Stations Flying school radio stations are used to transmit instructions to stu dents and pilots during flight practice periods. They number about 20. Flight Test Radio Stations Flight test radio stations arc used by manufacturers of aircraft and major components to communicate with test pilots in connection with aircraft testing programs. Nearly 250 such stations are licensed. Aeronautical Advisory Radio Stations These stations are used at landing areas, not served by airdrome control stations, to provide private aircraft with radio advisory com munications concerning the conditjon of runways, types of :fuel avail able, wind conditions, weather data, and other information necessary to aircraft operation. They approximate 500. Aeronautical Public Service Radio Stations These stations are used aboard aircraft to provide an air-ground telephone service for the convenience of the passengers and flight REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 77 crew. Contact is made with telephone subscribers on the ground through public coast stations, which in turn interconnect with the na tional telephone land-line system. They number about 350. Aeronautical Operational Fixed Stations These stations-numberingabout 30-provide aeronautical point-to point service for link or control circuits, as well as other aeronautical fixed operations. PUBLIC SAFETY RADIO SERVICES General The public safety radio services ineIllde the police, fire, forestry conservation, highway maintenance, special emergency, and the State Guard radio services. These services are used by the various munici pal and State governments for radio comnll1nication essential to the discharge of functions relating to public safety or the alleviation of an emergency endangering life or property. There are more than 20,000 such stations with nearly 386,000 transmitters. It is these services which continnally provide complex and ever expanding communication networks extending outward from cities, across the counties, and throughout the states. These stations are manned by trained personnel utilizing modern equipment. Installa tions oftentimes include auxiliary power supplies and transmitters to insure emergency comlllunieation in the event the main transmitting equipment fails or the power systems become inoperative. The individual public safety services have maintained a rapid growth which has been assisted by matching funds furnished by the Federal Government to provide new or expanded radio facilities as a civil-defense measure. The police services have installed duplicate base stations in civil-defense headquarters to be used when the main base station is inoperative. III addition, these stations al'e llsed as auxiliary base stations. The fire service has been greatly augmented by civil-clefense funds supplied to provide warning systems to aid communities. The use of microwave equipment to enforce speed limits has expanded throughout the Nation. In addition, the control of traffic at intersections by microwave in certain areas, is replaeing the former system of treadles inserted in the roadbed to change traffic lights. An interesting developmental operation is being conducted in Los Angcles to determine the service problems involved in the traffic light controls installed in emergency vehicles. The object is for the speeding emergeney vehicle to, by relnote control, clear a path en route and minimize the danger of traffic tieups and accidents. 78 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Rule Changes Regulatory changes in the public safety rules have been relatively few. Major changes in the frequency allocations have been considered to permit a limited expansion and consequent relief from cochannel· interference now tolerated due to an insufficiency of channels. An adopted rule change makes the frequency 39.46 megacycles available for assignment to all police licensees under certain operating conditions. The use of this frequency is necessary for surveillance, patrol, and detective operations. Five proposed rule amendments to part 10 are outstanding. Prob ably the most important proposal is to provide 2 frequencies-1 in the 39-megacycle band and the other in the 45-megacycle band-for inter system operation in the police service. The use of intersystem frequencies permits a simple means for intercommunication by the various police departments. A proposed amendment of section 10.103 (a) would permit the use of tone signals by statious licensed for voice emissions to actuate -sirens or other warning devices in civil defense preparations. In addition, there are 2 proposed amendments to section 10.101. ,One is to provide for the use of the aeronautical universal emergency and distress frequency 121.5 megacycles by public safety stations. The second proposal reflects the conditions relating to the availability of frequencies below 27 megacycles to these stations. Its pnrpose is to advise applicants that the frequencies below 27 megacycles which are allocated to the public safety services are not geuerally available in all areas due to the existence of already established systems. 1Vhen such a condition is found to exist, a substitute frequency would be sought by the Commission. Police Radio Service The police radio service is available to States, counties, cities, towns, and other instrumentalities of government to provide radio com munication facilities primarily for the police departments and, secondarily, for other departments where there is a need for coordi nated operations with the police department. Police radio stations number nearly 20,800. fire Radio Service The fire radio service is available not only to the various govern mental entities but also to organizations established to provide a fire protection service not otherwise provided by local government. There ·are over 3,000 fire radio stations. Volunteer fire departments constitute the largest group of non governmental licenses in this service. It has been possible for these REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 79 organizations to develop mutual-aid plans extending over an entire connty as well as into adjacent counties.~Whenfires Occur which are beyond the capabilities of the local fire departmeut, additional equipment may he dispatched from adjoining counties. Additional fire-fighting units may be summoned from more distant locations. Under these conditions the areas from which the local fire-fighting units are withdra-wn receive service from units moved forward fronl distant points. The plan whereby fire-fighting equipment is concen trated at the scene of the fire and adjacent units reahgned is defined as a mutual-aid plan. ;-Forestry-Conservation Radio Service The forestry-conservation radio service, with 2,700 stations, pro vides radio communication to combat forest fires and implement conser:vation projects such as water control, soil conservation, animal preservation, and conservation of other natural resources. Authorizations for these stations are issued only to States, terri tories, possessions, and other governmental subdivisions including counties, cities, towns, etc., and persons Or organizations charged with specific forestry-conservation activities. Forest fire protection is usually accomplished by establishing a net work of fire towers equipped with radio throughout the forests. When the location of a fire is reported by a tower observer, fire fighters and equipment are dispatched by aircraft, automobile, trailers, and bull dozers to the scene. The men and equipment transported by aircraft are dropped on location and oftentimes extinguish the fire. In the event further aid is needed, lightweight "handi-talkie" or portable radio sets are llsed to commUll1cate with a local fire headquarters. The unique flexibility inherent in radio communication has enabled many cooperative arrangements to be made between adjoining States. It is not uncommon for two States with a common forest area to patrol and assist in the fire-fighting assignments associated with such areas. These cooperative arrangements now exist between groups of States. For example, Florida, Georgia, and South Carolim' have expanded their radio facilities to enable each State to interchange fire fighting equipment as needed and to change the operating frequencies of the radio equipment accordingly. Highway Maintenance Radio Service This service is available only to States, territories, possessions, and lesser governmental subdivisions. Its 1,700 stations are used to trans mit communications directly relating to public safety and the protec tion of life and property. This service heretofore has been employed primarily by the various State governments; however, more and more coupties and cities are 80 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION establishing radio facilities to assist in the maintenance of their road systems. Special Emergency 'Radio Service Over 2,300 stations in this service provide emergency radio COlll munication for a number of activities all of which in Olie ,yay or another involve the safety of life and property. Eligible groups in clude physicians and veterinarians who have a regular practice in rural areas; organizations established for disaster relief purposes; persons or organizations operating an ambulance service or rescue squad; beach patrols; school buses having regular routes into rural areas, and persons or organizations llmintaining an establishment in isolated areas where public communication facilities are not available and where the use of radio is the only feasible means of communicating with a center of population or other point from which emergency assistance might be obtained, if needed. CoronIon carriers are eligible in this service for radio stations to be used in effecting expeditious repair to interruptions of public com munication facilities. Also, persons or organizations operating com munication circuits are eligible for standby radio facilities in this service. Slale Guard Radio Service Authorizations in this service are issued only to the State Guard or comparable organization of a State, territory or possession, and only where such organization has been duly created by law and is com pletely subject to the control of the Governor or highest official of the governmental entity. This service is virtually dormant at this time as the State Guard usually is inactive until such time as the State Nation"l Guard is mobilized. DISASTER COMMUNICATIONS SERVICE This ser,vice provides radio cOllllTIunication in times of emergency~ such as war or natural disaster, in relief of normal communication facilities which may be destroyed or overlo"ded. Civil defense and other disaster and emergency relief organizations are eligible in this service upon submission of a satisfactorycomll1uni~ cations plan. Federal Government stations may also be authorized to operate ill the 1750- to 1800-kilocycle b"nd allocated to the dis"ster service. During normal times, communication is limited to drills and tests; whereas during emergencies all necessary types of relief or civil de fense communications may be handled. Thirty-five approved plans include more than 327 disaster st"tion authorizations. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 81 INDUSTRIAL RADIO SERVICES General Part 11 of the Commission's rules provides for licensing and regu lation of radio facilities for various types of industrial users. These individual services include power, petroleum, forest products, motion picture, relay press, special industrial, and industrial radiolocation. Each has its own eligibility requirements and radiofrequency assign ments. There are approximately 30,HOO authorizations in the indus trial services, covering the use of over 2'75,000 transmitters. During fiscal 195H, various subparts of the industrial rules were amended to better" regulate the individual services as well as to meet -new and additional industrial requirenlents. One general amendment provides for a single application and authorization for two or more units of base or fixed stations at temporary locations, thus eliminating the issuance of many identical authorizations, except for call signs, thereby reducing the clerical burden on both applicants and the Commission. A general study and evaluation of industrial radio has been con tinued in view of its Cloer increasing need in this field. Various means of augmenting the number of frequeneies available are being explored in order to aecommodate not only many new applicants under the present rules but for the influx of additional applicants expected under revised rules planned for fiscal 1957. Interference between present licensees who have to share the same frequencies in congested areas adds to the problem of authorizing new licensees. However, improved equipment, narrow channeling and more rigid technical and operational requirements presently under study may provide some moasure of relief. Power Radio Service This service is for those engaged in the generation, transmission or distribution of artificial or natural gas by llleans of pipeline; or the distribution of water or steam by pipeline, or of water by canal or open ditch-in all cases for use by the general public or by members of a cooperative organization. This service has grown to nearly 9,!)OO authorizations. Its covering- rules (Subpart F, of Part 11) were not changed during fiscal 195H, but section 11.251 was amended to make common carriers Imvil1g maintenance and construction requirements eligible in the power radio service on certain frequencies. However, this action 'vas later stayed. Petroleum Radio Service Persons engaged in prospecting Tor, producing, collecting, refining, or pipoline transportation of petroleum or petroleum products (in- 82 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION eluding natural gas) are eligible for authorizations in this radio serv ice. The number of its stations has increased to over 6,700. Forest Products· Radio Service This service is for those engaged in logging, tree farming, or related woods operations. There are over 1,300 authorizations. Many per sons have expressed a desire for tone signaling to cause a whistle to blow on a donkey engine used to pull Jogs through the woods by a long chain. The signals from a "whistle tooter" activates the whistle to indicate when starting or stopping the engine is desired and also warns people to watch out for the dragging chajn and log. This additional use of radio is being studied to determine the feasibility of amending the rules to permit it. Motion Picture Radio Service Persons engaged in the production or filming of motion pictures· are eligible to operate radio stations in this service. Fifty such authorizations al'e outstanding. Relay Press Radio Service This service is available to newspapers or press associations. Its authorizations have increased to 95. Special Industrial Radio Service The rules governing this service, originally l1laking it available to persons "engaged in an industrial activity the primary function of which is devoted to production, construction, fabrication, manufac turing, or similar processes as distinguished from activities of a service 01' distribution nature" and meeting- certain supplemental require ments, were revised September 7, 1955, etl'ective November 1, 1DG.). These revisions make the special industrial rules more definite and detailed. They provide for licensing radio-communication equipment for use in connection with various activities in the following general categories: Agriculture, heavy construction, building construction, manufacturing, mining, specialized industrial service and trade activ ities, engineering service, and miscellaneous public serviceactivities~ the details of which are spelled out in the revised rules. Special industrial authorizations exceed 11,000. Low Power Industrial Radio Service Over 1,200 authorizations in this service cover radio facilities used in conjunction with commercial or industrial activities. A proposed rule amendment (Docket 10964) would prohibit the use of a traus mittel' as a base station to communicate with vehicles on public streets REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 83· or highways in order to protect the USers of hand-carried or pack carried radio equipment at on-the-job locations from excessive inter ference. Industrial Radiolocation Service This radio service is availahle to (a) any person engaged in a com mercial or industrial enterprise who has a substantial need to establish a position, distance, or direction by means of radio-location de1dces for purposes other than navigation, or (b) a corporation or association furnishing a radiolocation service to eligible persons. Its authoriza tions have increased to 168. During fiscal 1956 the rules governing this service were amended to permit the use of frequencies 230, 250, and 810 megacycles by land and mobile radiopositioning stations (SHORAN) at locations within 150 miles of the shorelines of the Gulf of Mexico and California. The rules were also changed to continue the developmental status beyond .July 1, 1956, for (1) stations authorized on frequencies below 1800 kilocycles to expire on July 1 of the year following that in which action is taken on the license application, and for (2) stations author ized on frequencies above 1800 kilocycles to expire 1 year from the date of final action on the license application. Another amendment author izes frequencies in the band 10500-10550 megacycles for CW [continu ous wave] emission only for land mobile radiopositioning stations including speed-measuring devices. LAND TRANSPORTATION RADIO SERVICES General Part 16 of the rules cover licensing and regulation of four classes of land transportation radio services-motor carrier, railroad, taxicab, and automobile emergency.. Each has its own eligibility requirements and radio frequency assignments. Their composite authorizations approximate 27,600. During fiscal 1956 some of the subparts of the bnd transportation rules ,vere amended to petter regulate the individual services as well as to grant additional privileges. A general amendment provides for a single application and authoriztltion for two or more units of base or fixed stations at temporary locations. The problem of snfficient radio frequencies to cope with the demand for more land transportation stations has become extremely pressing, especially in the motor carrier and taxicab services in and near large metropolitan areas. This has nece.':isitated a study of ways and means to relieve the present congestion and provide for the continuing influx of new applieations. It is expeeted that rules revisions to be proposed 84 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION during fiscal 1957 will provide some relief by narrowing the frequency channels and requiring improved transmitting and receiving equip ment for new licensees and, within a reasonable authorization period, for existing licensees. Motor Carrier Radio Service This radio service is available to persons primarily engaged in providing a common or contract motor carrier service for (a) passen ger trausportation between urban areas; (b) passenger transportation within a single urban area; (c) property transportation between urban areas, and (d) property transportation within a single urban area in connection with intercity, interstate, or international shipment. Motor earrier authorizations exceed 1,000. During the year the motor-carrier rules were amended to change eligibility from "solely" to "primari1i' engaged for persons providing a common or contract carrier transportation service for the local dis tribution or collection of property in intercity, interstate or inter national shipment; also to permit the use of their radio facilities to communicate with vehicles used to supervise, tow, repair, or maintain their radio-equipped trucks. The American Trucking Association petitioned to permit the use of the 44-megacyc1e band frequencies without certain restriction now in effect when it is shown that the carrier serves an area in excess of 15 miles from its terminal base station and provides at least daily serv ice to a noncontiguous urban area. That association desires further to have carriers whose operations are confined to a single urban area eligible for 43--44-megacycle band frequencies when the size 01' shape of the urban area 01' the terrain conditions 01' both preclude the use of a frequency in the 450-4GO-megacycleb~nd. Railroad Radio Service Public passenger and freight service are aided by the more than 1,700 authorizations. During the year, part 16 of the rules was amended to provide for the assignment of additional frequencies to mobile relay stations in railroadpoint-to~trainnlainline operations, for which only two fre quencies were previously available. This anlendment redefined "mobile relay station" in section 16.6 (q). The Atcheson, Topeka & Santa Fe Railway Co., supported by the Association of American Railroads, petitioned to permit the use of tone signals on railroad radio frequencies (presently limited to voice) for the actuation of road crossing protection facilities by yard loco motives, warning signals to track gangs and to stopped trains. Inas- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 85 much as such a requirement might be very extensive, the proposals must be studied to insure that any rule change in this connection would not permit operations which would cause harmful interference to voice communication and deterioration of the present service. Taxicab Radio Service This service is available to persons regularly engaged in furnishing a public "for hire" nonscheduled passenger land transportation service not operated over a regular route or between established terminals. There are over 4,800 taxicab authorizations. Automobile Emergency Radio Service Associations of owners of private automobiles and public garages which provide private emergency road service hold 571 authorizations in this service. The covering rules wer" amended during the year to provide for limited use of radio by private automobile associations for the secondary purpose of reporting on traffic conditions from aircraft and from vehicles on the ground. CITIZENS RADIO SERVICE This fixed and mobile service is for private or personal radio com munication, radio sigualing, control of objects or devices by radio, and other purposes not specifically prohibited. Any citizen 18 years of age or over is eligible for a license. This is a fast-growing service in that it is being used by more and more industrial concerns and business enterprises \vho are not eligible in some other service for the uses to which they desire to put radio. Some of the organizations now operating citizens radio are ice or fuel delivery service to consumers within the limits of cities of 50,000 or more popnlation; heavy construction and building activities within metropolitan areas of 500,000 or more population when a fixed base station is needed; department store delivery trucks; radio and TV servicing, etc. Aside from class C stations for controlling model aircraft, the majority of the 18,600 citizen licensees use their radio facilities for purposes in connection with their businesses. Revisions of these rnles are contemplated. AMATEUR RADIO SERVICE The amateur radio service is the one radio service where a person may engage in radio communication as a hobby solely with a personal aim and without pecuniary interest as defined in national and inter national law. 86 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION . While to some the term "personal aim" might indicate a selfish use of valuable radio space, those who are familiar with the service know that the radio "ham", in the pursuit of his hobby, has contrib uted much to the public benefit and the service of his country. That this represents a good investment is evidenced by the amateurs' continual contribution of new theoretical and practical advances in thefield ofelectronics. Communication service is provided voluntarily by amateurs during hurricanes, floods, and other natural and man-made disasters and emergencies when normal avenues of communication are often de stroyed or severely overloaded. As an example, during the disasters caused by hurricanes Connie through Janet in 1955, a group of 146 amateurs spent a total of over 1,200 hours on the alert. In this period they handled 395 urgent Red Cross and weather messages which could notbe carried over normal circuits. Civil defense organizations are furnished a corps of skilled amateurs ready and willing to lend themselves and their equipment in prepa ration for, and in the service of, their communities in a time of war or other civil emergency. . Amateurs relay thousands of personal messages between overseas G!'s and their families at home. The self-training achieved by the amateur is a valuable national asset in furnishing- a reservoir of skilled personnel in time of war. In their daily contacts with their fellows all over the world, Ameri can amateurs are continually making new friends and, thus, impart ing a better understanding of our way of life to the citizens of other countries. After a trip to several foreign countries in which he was greeted with open arms by amateurs with whom he had become ac quainted by radio, one amateur remarked that there would be no war if all people were radio amateurs. Relatively easy entry into amateur-radio activity is provided through the novice-class license which requires only an elementary knowledge of code, radio theory, and regulation. Experience as a novice encourages progress to higher classes of amateur licenses and broader operating privileges. The popularity of amateur radio is indicated by the issuance of some 10,000 new operator licenses during the year. A total of over 146,000 amateur operator licenses of all classes and more than 150,000 amateur st,at-ion licenses were, on the Commission's books at the end of t.he fiscal year. During the year, 210 radio amabmr civil emergency service (RACES) plans were approved, making a t.otal of 491 such plans REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 87 with 3,461 statiOIIS and an estimated 8,100 transmitters authorized in that service. The RACES is the means whereby the radio amateur may provide a vitally important communication service for his local or St.ate civil defense organizations. Each such organization operates under a plan which has been approved by local, State, and Federal civil-defense ltuthorities and the Fedeml Communiclttions Commis sion. By this means the ltmateur may not only serve his community in civil emergencies but may continue to do so during time of war when other ltmateur-mdio ltctivity is shut down. As with any large group, the problems involved in the regulation of the amateur service are 1ll1merous. They range from international considemtions, such as frequency ltllocation and regulations on per missible communications with foreign amateur stations, to domestic problems concerned with rules promulgation ltnd licensing. The year-by-yeltr increase in the number of amltteur stations and the accelerating rate at which applications are received poses a con tinuing administrative problem of maintaining adequate regulation and efficient application processing. Fortunately, serious violations of the rules are few in number. This stems genemlly from the fltct that ltmateurs take pride in policing their own service. During the year, only 17 violations were of such nature as to result in suspension of license: Because of his il1genuity and scientific curiosity, the radio amateur is continually mising technicltl ltnd opemting questions not covered by regulations. During the year the amateur rules were amended in several respects to bring them more in line with recent technical and opemtionlt] devel opments. These amendments include: The permissible frequency shift for teleprinter operation wus ehunged so that there is no longer a minimum frequency shift requirement. The code practice rule was clarifieu, Petitions to increase thepermi~sihlepower whkh mny he m;ed in the -420--430 megacycle hand to 1 kilowlltt were uenied. IIowcyer, the rnle was HIllendeu to permit 50-watt input power instead of the former 30-WHtt peak olltpnt power limitation in this band, A further limitation on amateur sbaring of the 1800-2000-kilocyele band was imposed because of a frpqueU<'y ehangc in the Loran nuyigation system ill the Caribbean area. Except for the matter of amending the amateur rules to make per fOilS who are members of the COlllllltUlist Party and persons who are not of good IUOI'IlI character ineligible for operator licenses, no unfin ished amateur rule-making; proceedings were OIl hand at the end of the year. 88 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION ENFORCEMENT The rapid acceptance of radio as an essential element in almost every field of business endeavor has resulted in such congestion of frequency occupancy that a policy of strict enforcement of Commission technical regulations and procedural rules is required if maximum benefit is to be reahzed from such private communication systems. An even more rigorous enforcement program is considered essential and justi fied to enable the Commission to extend the availability of radio com munication to a larger proportion of the public. However, the btw does not at present provide a suitable penalty. Because of the very large number of transmitter units involved in these private operations, the enforcement problem may be said to be analogous to that of traffic control, where it has proved necessary to assess promptly a small penalty commensurate with the seriousness of the particular violation. Accordingly, the Commission proposed in the last Congress a bill providing a small forfeiture ($100) for viola tions of its regulations collectable in the Federal courts. The bill would permit a compromise or remission of the forfeiture by the Commission. The same objection was offered to the bill as has been made to the manner of handling traffic violations; namely, that the procedure is too arbitrary. The answer, of course, is the same as it is with traffic regu lation. The method is effective, the need for enforcement is obvious, and the economics of the situation does not justify a more elaborate procedure. Enforcement action during the year, in addition to correspondence in situations not warranting formal measures, included the issuance of 84 orders to modify licenses to delete frequencies which were used im properly, 5 forfeiture notices against compulsorily radio equipped vessels, 17 orders suspending amateur licenses and 13 orders to show cause why station hcenses should not be revoked. STATISTICS Stations in Safety and Special Radio Services At the close of fiscal 1956, there were 338,886 stations in the safety and special radio services (exclusive of experimental, which are in cluded in a separate chapter). This is an increase of 38,659 over the 300,227 authorized at the close of the previous year. Each separate license, construction permit, or combination construc tion permit and license is counted as one station. Therefore, a station might include a base transmitter and many mobile units. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 89 The following table shows the number of stations in each service at the close of fiscal 1956 compared to 1955: June 30, June 30, Increase or 195& 1956 (decrease) 139,993 150,549 10,5.56 317 327 10 2,077 3,461 1,384 142,387 154,337 11,950 2,082 2,445 363 30,228 33,689 3,461 150 188 38 287 316 29 11,108 12,107 ... 43,855 48,745 4,890 • 0 (9) J,lH 1,316 172 143 163 25 933 1,269 336 43 50 7 6,178 6,754 576 8,132 9,874 1,742 82 95 13 8,190 11,071 2,881 24,854 30,597 5,743 411 571 160 12,334 18,602 a263 1,084 842 (242) 64 63 4 42 680 638 1,405 1,731 326 4,526 4,830 304 105 11l • 31 157 126 20,002 27,554 7,572 786 919 133 243 301 "74 9I 17 17 19 2 49,594 55,585 5,991 50,714 56,915 6,201 2,337 3,062 725 2,967 2,704 (2f.l3) 1,330 1,699 369 9,725 10,819 1,094 29 70 41 1,839 2,344 505 188 20 (168) 18,415 20,718 2,303 300,227 338,886 38,659 TotaL------I~~~~I~~~~F~~;" Marine services: Alaskan grQup~_~_.~_ Coasta.! group~_~__~_ MarIne auxiliary group~, +_ Marine radiolocation land __ •+~~~_ Ship group~+. -----I--,-3-::c:+--=':-:':-I--':'-::::'_ Total------I~~;;;;;;;"lo~,;;;,;;;;"I~~;;;;;;;" Public safety services: Fire.••••. •• •~._.~.~.~~_._ Forestry couservatlou~~_ Highway maintenance~~_ Police .~~_ Public safety (combined)• •~• _ ~~~iaiue:rci~~~~_c:~================:==:===:==============::=:==== [-:-::-=:cl--=-:::':-I----::':_:':_ TotalI~~;;;;;;;"I"~,;;;,;;;;"I~~;;;;;;;" Gmnd totaL~~_~_.~• _ Class of station 90 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Transmitters in Safely and Special Radio Services As of January 1, 1956, there were 1,176,500 transmitters authorized in the safety and special radio services as compared to 767,893 at the beginning of the previons calendar year. Of these, 208,175 land and fixed stations represent an increase of 36,032, and 968,325 mobile uuits represent an increase of 372,575, or a total increase of 408,607 trans mitters dnring the calendar year. Class of station AmateUl'mId dlsm;ter servkes: Amateur _ Disaster _ RACES _ A viationservi~s: Aeronautical and fixed group._ Aircrart group _ Aviation aUXIliary ._ Aviation radionavlgatlOn land _ CIVIl air patroL _ TotaL _ Industrial services: Agrlculture _ Forest products _ Industrial radloloC3tion_ .~_ I,ow power industrlal . _ Motion plcture _ Petrolflum _ Power. _ Relay press . _ Special industriaL _ TotaL_ Land transportation services: Automobile emergency __ citizens _ HIR"bway truck _ Interurban pa."SflIW;er _ Interurban property .__ Rallroad . _ Taxicab_ Urban passenKer. . • Urban proPerty _ Total . _ Marine services: Alaskal1l!:fQup_____ ___ . _ Coastal group _ Marine auxiliary group_. _ Marine radionavigation l.'lnd _ Ship group _ Public safety services: Fire . _ Forestry conservation_. _ Hi~hwaymaintenance. _ Pollce . _ Public safety (combinedJ _ Special emergency • _ State guard , _ TotaL._~__ Grand tota1. .•• _ TMIHI or fixed Mohile sta- Total trans- transmitters tion trans- mitters mittf'.rs - 142,819 .. ------- - 142,819 556 707 1. 263 5,134 7,70t 12,83,1'; H8,oo9 8.41 663 131> 37 8 4,403 921 4,340 376 49 1 7,#9 2,020 ---~-- 17,875 3,706 373 84 2,178 8Il8 90 (5M) '" , 817 54' '" 291 2,592 '".7 1a >13 '" 7,228 1,785 376 (7M) 210 (238) 32 (W) 15 (5) Hi, 948 617 19,581 (420) 1,9J6 '" 1,199 8Il 1,081 81 6,038 s:l8 1'" "" 1,194 75 2 (71) U.550 1,577 170,496 I HI,I56 77,263 ., 1,568 78,871 i 2,121 li,438 JOT 180 3, Wi I 22,883 --------~-- ,--:c-ccc+----c:-- 10 53t! }'55 52. 29 3.482 3,9~ ------------ -1__b~,_41_'_I__--'-''''-1 ----------------------'----------i~~1;;.,;;16;;9_1~~;;;;;;;;i~~;;,;;;;,. Total.__ .. ..._. _ TotaL__ ._. Industrlul services: AgriclllturL _ :Forest products _ Industrial radiolocation _ Low pOwerindustriaL~____ _~_ MotJon picture________ _ _ Petroleum~_ Power _ Relay press _ SpcclallndustrlllL_ Amateur and disaster services; Amateur _ Disaster__ RACES __ 'fotaL Aviation servIces: Aeronautical find fixed group _ Aircraft group . Aviation auxiliary group _ Aviation radionavigation land Civil Air PatroL_. 1,130 ,.. 72 20 18,331 ---.-- ..---.--.------------ --------------'~II~~~~I~~;;;;;, PublIc safety servIces: Fire . . .. 1,434 Jo'orestry oonservatlon_.__ . . __ . .__ _. .___ 1,110 ~~fl~'~~~~~nt~~~~_ce-. - __ =_-_- -__ .k~ Public safety (combined) ._.. .. 37 Special emergency_ __ _ . .___ 1, 119 State guard_ . . - _ -_______ -----.-------.-1__-:-~7=3+-_:::_=:c-1-_,-::::: Total __ -----~.-------- ---.----.---~-.-----~--.-------.----.-.i~~';;';;073;;,.I~~;;;:~I==~;;;;" Orand totaL__ . . __ ..__ , .___ 151,340 Land transportation ser"iC('-s: Automobile emergency. _._. -----....-. ----..-----.~..-- 289 I ~\~~~~:ytruck . ... . __ . . .__ 1,~~I Interurbanpassonger_~.._.._.. _ ._____ 2f} Interurban property..__ . 271 RallrOll.d. . . . . __ .__ 562 Taxicab . __ . • . __ . 2,248 Urban passenger . .. .__ 54 Urban property--... -------.-----------.--- ---..------i__-:-~7~'+-_=~:c-I-_,-:-=- Total ". .__ --------...-------.-------.---.1~=;;5,;,c';;43~+~==';;;:;;1~~;;;:;; Marine services: Alaskan b'TOUp _ Coastal group. . . Marine auxiliary grouD . __ . __ Marine radlolocatlon land __ _ ._. _ Ship group__ . [ Page 92 in the original document is intentionally blank ] Broadcast Services GENERAL At the close of the fiscal year there were more than 7,000 broadcast authorizations, of which number over 4,300 were for regular program stations and the remainder for auxiliary and experimental stations. Of more than 3,000 a"thorned AN stations, nearly B,900 were on the air. Of over 600 authorized commercial TV statioiUJ, nearly 500 were on the air. Of 41 authorized noncommercial ed"cational TV stations, 20 'were on the air. Of nearly 550 authorized commercial FN stations, 530 were on the air. Of 136 noncommercial ed"cational F1I'f stations, lB6 1Dere on the air. TELEVISION lTV} BROADCAST SERVICE Growth of TV Since the issuance of the Commission's Sixth Report and Order in April of 1952 promulgating a new TV allocation plan and lifting the "freeze" on new TV stations, the expansion of this service has been phenomenal. In mid-1952 only 108 (all commercial VHF) TV stations were in operation; only 63 communities had 1 or more local stations, and only 23 had 2 or more. About 15 million sets were then in use. On July 1, 1956, over 500 commercial and educational TV stations were on the air. Nearly 300 communities had 1 or more stations in operation, and of these 173 communities had 1 station, 79 had 2, 28 had 3, and 9 had 4 or more. These figures do not reflect the additioual service which certain communities, particularly those in more densely populated areas east of the Mississippi River, receive from stations in nearby communities. Itis estimated that over 90 percent of the Nation's population is now within range of at least 1 TV station, that over 75 percent is within range of 2 or more stations, and that nearly 39 million TV sets are now in nse. Estimates indicate that around $15 billion have been 93 94 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION invested by the public in TV receiving equipment and that the annual volume in TV advertising, set sales, and servicing exceeds $4 billion a year. These figures make it evident that TV is now well established. However, they also show that further expansion of TV service is necessary to achieve the Commission's 1952 stated objectives for the full development of a nationwide competitive system. These basic aims include (a) at least 1 service to all areas, (0) at least 1 station in the largest possible nnmber of communities, and (c) multiple services in as many communities as possible to provide program choice to the public and to facilitate competition among broadcasters, networks, and other elements of the industry. The first objective has been substantially met, but serious problems impede realization of the second and third objectives. :Many of the smaller communities are without a first local outlet and the expansion of nlultiple, competing services in the larger economic and population centers is lagging. Difficulties in successfully operating stations in the UHF band have been a significant factor. During the past fiscal year, as well as the previous one, the Com mission gave particular attention to ways and means of strengthening and advancing TVservice throughoutthe nation. TV Problems The obstacles to continued expansion of TV service spring from the limitation to 12 channels in the VHF band and the difficulties which have been experienced in achieving a fuller utilization of the 70 UHF channels. They are due chiefly to the large number of VHF-only receivers in use and the high proportion of VHF-only receivers which continue to be manufactured; certain performance deficiencies of UHF transmitting and receiving equipment, particularly in the initial use of UHF for video, and the consequent preference of program and revenue sources for VHF outlets. Some of the obstacles to further TV expansion, however, are dne to causes beyond the control of the Commission. To an appreciable extent these problems are basically economic and arise out of inability, at the present stage of TV development, to obtain sufficient economic support to meet the high costs of construction, programming, and operation of stations. On other aspects of the problem, relating for example to the improvement of transmitting and receiving equipment, valnable contributions must come from the indnstry. However, recent developments indicate that rapid strides are being made in improving UHF equipment. During the past 2 fiscal years the Commission received numerous proposals, petitions, and suggestions from TV broadcasters and other elements of the industry for alleviating these and other growing pains REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 95 of the TV service. They varied widely, ranging from channel reas signments affecting a single city to major revisions affecting the entire country. The proposals included such diverse and mutually incon sistent approaches as conversion to an all VHF system, conversion to an all UHF system, and continued use of both bands under a wide variety of methods. Some envisaged the use of neW VHF channels, the use of present VHF channels under reduced spacings, or both. Others contemplated the substitution, locally, of UHF for VHF chan nels. Some proposals were based on revising existing engineering standards and policies, notably with respect to minimum spacings, luaximum antenna heights and power, the directionaljzing of antennas and the use of cross-polarization. Other proposals advocated the maintenance of present standards. Since none of these proposals appeared to warrant adoption without extensive study and evaluation, on November 10, 1955, the Commission initiated a general rule-making proceeding (Docket 11532) to deter mine the realistic possibilities for improvement through revision of existing TV allocations, and to examine and compare the proposals and comments on an overall basis. The Commission stated that it would be prematnre at the outset to consider proposals affecting only single communities or local areas since piecemeal Dleasures neither promised significant overall relief nor would necessarily be consistent with such action as it might take in the general situation. Accordingly, the Commission terminated pending rule-making pro ceedings for deintermixture of five individual communities and denied a number of similar petitions requesting departures from the present table of channel assignments or standards. The Commission stated, however, that when general determination had been made, it would be in a position to consider questions concerning specific channel assiWlments in individual communities or limited arens. On June 26, 1956, the Commission, after studying the 12 volumes of proposals and comments on file, delineated the courSe which it considered to offer the best possibilities for providing more competi tive TV services and for both the immediate and long-range expansion of TV. While stating that it would be premature to adopt final conclusions concerning the feasibility of ultimately shifting all or a major portion of VHF operations to the liHF band, it determined that this proposal waS the only one of the many it considered which gave promise of achieving, through the operation of the allocation processes, the long range goal. It was of the view that if suitable means could be found to overcome the difficulties inherent in snch a major move, and if UHF could be developed sufficiently to permit the elimination of VHF channels without an overall loss of services, a number of basic 96 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION advantages would result. All stations would be able to compete on a much more nearly comparable basis technically, since there is much less disparity between the lower and upper UHF channels than between the VHF and UHF television channels, and thus the coverage of competing stations would be more comparable than at present, and competitive opportunities among broadcasters, among uetworks and other program and revenue sources would be considerably enhanced. As a result, the establishment of numerous additional stations would be encouraged in communities where a first or additional service is needed. These achievements would be aided by the fact that broad casting in a single band would, after a suitable transition period, elim inate the present crucial problem of UHF receiver incompatibility. The Commission invited all interested parties to submit comment and data by October 1, 1956, and subsequently, on the basic problems involved in such a shift, particularly those concerning UHF's capacity to provide a complete TV service and the best means of minimizing cost and dislocation both to the industry and to the public by the trans ition. The Commission was of the view that it would be premature at this stage to examine possible uses for the VHF channels which would be vacated. It noted that since neither it nor the industry has complete control of getting UHF sets into the hands of the public, it may be essential for Congress, contemporaneously, to examine the advisability of legislation, such as special tax relief or more drastic remedies, to relieve the receiver situation. The Commission also concluded that no immediate judgment could be made as to whether conversion to all-UHF operation would or would not result in the loss of present or potential services from VHF channels until the extent to which UHF transmission and reception can be improved is determined. It, therefore, proposed that an ex pedited program of research and development be launched without delay to achieve the maximum possible improvement in UHF trans mitters, receivers, and receiving antennas. Comments were invited concerning the most effective methods for conducting and expediting this suggested research and development program. The first FCC industry conference for the purpose of expediting research and de velopment of UHF technical operation was held on September 20, 1956. Since consideration of the long-range UHF conversion plan may involve a considerable period of time, the Commission decided to take certain interim steps to improve the opportunities for effective competition among a greater number of stations. Among these was the decision to proceed with consideration of pending or subsequent petitions for channel reassignments to further competition among stations in particular areas. Accordingly, the Commission proposed REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 97 rule making with respect to proposed channel reassignments in a number of individual communities and limited areas which appeared to merit consideration. In general, such proposals are those whirh would remove VHF assignments in areas where there already is con siderableUHFservice or add new VHF channels in communities where VHF is already established and the addition will result in a third or fourth VHF service. The Commission also decided that, as an immediate measure, its minimum city-to-city mileage separation requirements for channel assignments should be relaxed in order to permit new VHF assign ments in appropriate instances at shorter mileage spacings between cities than required by the present rules so long as the present minimum requirement of spacings between transmitters is met. Its rules were so amended July 19,1956. Another interim step to improve competitive TV was to increase maximum power limits for UHF stations from 1000 to 5000 kilowatts, the object being to make UHF coverage more comparable to VHF. UHF equipment now in use yields effective radiated power of 1000 kilo watts, and encouraging tests have been made with UHF transmissions at 4500 kilowatts and even higher power. Another decision was that it would be undesirable to alter VHF antenna height and power ceilings in Zone 1 as contemplated July 20, 1955. Upon further review, the Commission determined that in light of its objective of getting more TV stations in both large and small markets that no alteration of the antenna height and power maxima for VHF in Zone 1 was warranted. Translator Stations On May 23, 1956, the Commission amended its rules effective July 2, to authorize the operation of a new type of TV broadcast station called a UHF "translator" station. This provides another means for bringing TV serviee to small communities and sparsely settled areas-par ticularly in the 'Vest-where direct reception of the signals of existing TV stations is impossible or unsatisfactory because of distance or inter vening terrain barriers and where, in many such places, establishnlent of a local TV station is not economically feasible even though channel may be available. The first three translator stations were authorized September 6, 1956. Translators are low-powered, relatively inexpensive stations de signed to pick up the sig11als of existing stations (VHF or UHF) within range. They then convert these signals, amplify, and rebroad cast (translate) them on the upper 14 UHF channels (Channels 70 83) with sufficient strength to permit adequate reception on UHF receivers. By confining translator operation to this less congested 98 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION portion of the TV band, the Commission is able to make translator operation affordable in small communities and still insure dependable service and protection of other services. Low-power transmitters not exceeding 10 watts may be used by translator stations and they will, in most cases, supply an effective radiated power of 100 watts or more. 'While only one channel may be assigned for each translator station, additional stations may be author ized on other channels to provide 111l11tiple serviees in an area. Each translator station is given its own call letters. In addition, translator stations are not required to adhere to any specified hours of operation, and remote control opemtion is permitted. No limit is placed on the number of translator stations which may be operated by the same interest. Satellite Operation Since the high cost of facilities for local programming has deterred many parties otherwise interested in constructing and operating new TV stations, the Commission on August 5, 1954, enabled TV stations to be authorized even though they do not propose to originate local programs and would limit their broadcasts to duplicating programs of another station when it appears that this type of operation is necessary to the establishment of a local outlet. Stations authorized on this basis are commonly called "satellites" because of their dependence on another station for all or a large pro portion of their programming. Except for the absence of local pro gram originations, these stations must comply with the same rules and operating requirements that govern regular TV stations. It is ex pected that in time most of them will find it feasible to add local pro gramming and thus become full-fledged TV stations. Sixteen stations, most of them UHF, have been authorized to operate as satellites. Thirteen applications are pending. Low Power Operation Supplementing its policy to lower the high cost of station operation in the smaller communities, the Commission on June 22, 1955, reduced the minimum pOwer requirements of both UHF and VHF stations from 1,000 watts to 100 watts and eliminated the minimum antenna height requirements. This makes possible the construction of TV stations in the smaller communities at reduced cost, partieularly if such stations are also authorized to operate as satellites. Booster Operation The use of amplifying transmitters, sometimes called "hoosters", as another means of providing TV service to unserved areas is being considered in a rule-making proceeding instituted on March 30, 1955. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 99 As distinguished from "satellites" and "translator" stations which operate on different channels, a "booster" operation contemplates the use of a low power amplifying transmitter operating on the same channel as an established TV station to simultaneously transmit or "boost" the signal broadcast by the principal station to areas which might not otherwise be able to receive service. The Commission is particularly exploring the possibility·of author izing the use of "boosters" to furnish service to "shadow" or unserved areas lying within the normal service area of UHF stations. Since UHF stations experience more difficulty than VHF stations in getting their signals into places which, because of intervening terrain, are not in direct line of sight with their transmitting antenna, certain spots in their coverage area may be deprived of service. Experimental booster operations have been authorized in the past, but none has, as yet, been authorized as a regular service. During the year several cease and desist orders were issued against operators of unlicensed booster operations. Community Antenna TV Systems In addition to the service provided by TV stations directly, it is estimated that over 500 community antenna systems bring TV pro grams to over 600,000 homes in communities which, for the most part, either because of their distance from, or their particular geographic location, are unable toget satisfactory TVservice. The largest number of such systems is in Pennsylvania; many are also operating in West Virginia and the Pacific Northwest, particularly in Oregon and Washington. Cooperative groups organized witllout profit or companies organized for profit operate these systems. The usual installation consists of a master antenna located at some advantageous location, usually on a high hill or mountain, which picks up the signal of one or more distant TV stations. By means of amplifying equipment and wire transmis sion lines, the siguals are then distributed by cable to the TV sets of customers or subscribers. Several different programs may be fur nished simultaneously, and usually a conventional TV receiver is used to tune to each program in the same manner as if it were being received directly from a TV broadcast station. An installation charge and a monthly service charge are generally paid by each subscriber for the service. The Commission does not license or regulate the installation and operation of community antenna systems at the present time. How ever, it does impose limitations ontheirr~diationswhich may interfere with authorized radio services. Formerly, the general prohibitions in part 15 governing the USe of incidental radiation devices were 100 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION applicable to community antenna systems, but on July 12, 1956, the Commission amended these rules to specifically prescribe radiation limits for community antenna systems. All such systems whose con struction begins on or after October 1, 1956, must comply. Systems in existence on or before September 30, 1956, have until December 31, 1959, to comply. However, all systems are required to take immediate steps to eliminate any interference which may be caused during the interim period. The Commission has under consideration a number of requests urging that it exercise more jurisdiction over community antenna systems, and it is exploring the question of whether such operations constitute commOn carrier or another kind of operation subject to its jurisdiction. Subscription TV There are several different proposed systems of subscription ("pay as-you-see" or "toll") TV, but they are alike in fundamental respects. All involve methods for scrambling the transmitted program so as to produce a distorted picture and unintelligible sound at any TV receiver not equipped with an unscrambling device. These systems contemplate that the owners of receivers must pay for the programs they wish to see. The various systems differ principally in the techniques used to scramble and unscramble the programs and in the manner in which payment would be collected. Experimental testing of several systems has been permitted in the past, but the Commission's present rules do not authorize subscription operations on a regular basis. In February of 1955 the Commission instituted a proceeding to de termine whether its rules should be amended to permit TV stations to furnish a subscription service. Comments were invited on petitions filed by proponents of subscription TV and on certain legal, policy, and technical questions involved. These questions relate to such mat ters as the authority of the Commission to authorize toll TV, its possible impact on the broadcasting industry and the public, regulatory controls which may be needed, and factual data relating to technical operation, program resources, types of programs contemplated, and the plans of organizations intending to engage in subscription operations. More comments were received than in any other docket case of the Commission. They fill about 70 reference volumes and number more than.25,000 formal pleadings, letters, postcards, etc. The comments express views both for and against the subscription TV, take different positions as to the circumstances for authorization and the limitations which should be imposed, and propose different technical means for operation. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 101 The voluminous record and the difficult questions involved do not permit ready analysis and prompt decision. Study of the record is notyet completed. Before a final determination isreached by the Com mission as to whether the public interest would be served by authoriz ing such a service, it may be necessary to schedule further proceedings, including oral hearing and demonstrations. Color TV During the year the TV industry launched its biggest color drive since the standards for the present system of compatible color TV were adopted in December of 1953. Many technical improvements were made in transmitting equipment and receivers. The networks ex panded their color facilities and stepped up their color broadcasts, and they have scheduled a greater amount of color broadcasting for the ensuing year. One network plans to include a major color program nightly on a regl}lar basis in addition to its daytime color schedule. By midsummer of 1955, the number of TV stations equipped to color cast network color programs tripled the number of stations so equipped at the same time in 1954-fromsome 60 to nearly 200-and the number now approaches 300. Of these stations, more than 60 are able to broadcast color slides and films locally, and about 30 have equipment for local live colorcasts. In April of 1956 WNBQ, Chicago, began telecasting all of its local studio programs in color, devoting about 7 hours a day to color. The industry also reports that advertisers are spending more than $45 million a year on color TV. A noteworthy step was taken by several manufacturers when they announced in the spring of 1956 that they would have 21-inch color sets on the market before the end of 1956 selling in the $500 range. The industry has long contended that the public would not buy color sets in quantity until the retail price could be brought down to $500 or less, and that thereafter color TV growth would accelerate greatly. The number of color TV sets in circulation is expected to reach about 300,000 by the end of 1956. Dual MainSt~diosand Station Identification TV stations are now licensed to serve only a single "principal" com munity, and the rules require that the main studio be located in the principal community served except where, on a showing of good cause, the Commission waives this requirement. 'While stations may estab lish auxiliary studios outside the principal community to better serve portions of their service area, these rules are intended to insure that stations will be primarily concerned with the needs and interests of the principal communities they are lieensed to serve. 404807-56-8 102 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION On March 21, 1956, in response to 2 petitions, the Commission instituted rulemaking to consider whether there are any situations where it would be in the public interest to permit TV stations to main tain more. than 1 main studio to serve more than 1 community and to include more than 1 principal community in station identification announcements. Among the situations under consideration are those where a station is authorized to use a channel in 2 or more hyphenated cities in the table of assignments. Hyphenated cities are adjoining cities or cities in the same general area which have been allocated the same channel. Another situation involves stations located in a community within 15 miles of the principal community to be served under the 15-mile rule. Comments were invited also on such questions as whether dllilllllain studios and identification should be permitted, only upon a basis that a sufficient community of interest exists between the communities in question, and what criteria could be used to determine such interest, and what percentage of programming should originate from each main studio. Noncommercial Educational TV During the year 8 additional stations commenced operation on channels reserved for educational use, bringing the total to 20. At the year's end there were outstanding construction permits for 21 addi tional noncommercial stations, and pending applications for 11 more. It is estimated that 50 million persons live within service range of educational TV stations now on the air. They operate an aggregate of 500 hours per week. Soon after the close of the fiscal year, the Commission for the first time granted a petition to make a VHF reserved channelas..~ignment available for commercial use, exchanging it for a UHF channel. This action, affecting channel 3 at College Station, Tex., will bring a first local TV outlet to the area, and was taken after the Commission deter mined that there was no realistic prospect for noncommercial educa tional use of the VHF assignment in the foreseeable future. At the same time, the Commission, after a rule-making proceeding, denied a petition requesting that channel 11, reserved for noncom mercial education use at Des Moines, Iowa, be made available for commercial use in that community. It was noted that the Des Moines area receives service from 3 stations operating on commercial VHF channels, and that local educational and civic groups were pursuing active efforts to utilize the channel. The total number of channels assigned for edncational use remains unchanged at 258. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 103 STANDARD (AMI BROADCAST SERVICE AM stations continue increase.-During the year, the number of authorized AM broadcast stations, for the first time, passed the 3,000 mark. Their net gain was 180 for the year. Most of the newcomers engage in low power daytime-only operation. At the year's close 2,896 AM stations were on the air and 274 applications for new stations were pending. UClear Channel" and "Daytime Skywave" Proceedings Work on TV allocation problems necessitated carrying over dispo sition of two major AM allocation proceedings. One of these, the "clear channel" proceeding (Docket 6741), encom pas>'M TV AM I Total Commer- Educa· Commer- Educa· cial tional oial tIonal Alabama_____~________________________ Q8 16 1 10 3 128 Arizona. ______________ --------------- 33 3 1 • 0 46 Arkansas. _________ ------------------ " 6 0 8 0 n California______ ---------------------- 158 .0 J! 38 1 248 Colorado __ ._. ___________ . ____________ . 47 5 1 • 1 63 Connecticut. _______________________ ._ 26 7 0 8 3 .. Delaware_ -- ----.---------- 0 2 0 1 0 12 District of Columbia___ -------------- 7 7 0 5 0 19 l<'lorida._~___________ J!' 21 • 22 1 162 Georgia_________ • 109 16 1 15 1 142 Idaho___________~______ -------------- 27 0 0 7 0 34 Illinois.._. ______ • ___________________~_ 90 30 • 20 2 148 Indlana_________ • _____________________ 59 21 10 16 0 106 Iowa__________________________________ 61 8 • 12 0 85 Kansas_________~_____________________ 45 1 5 9 1 61 Kentucky______~_________ ----------- 69 14 3 10 0 9. Louisiana_.~__________ --------------- 69 10 1 12 2 94 Maine_____ __________________________ 20 1 0 7 0 28 Maryland_____________ "_ ------------ 33 8 1 • 0 48 Massachusetts_________ -------------- 54 15 7 11 1 88 l\'lichlgan_________________________ • ___ 85 22 • 18 2 131 MimU'..sota ____________________________ 56 6 1 8 0 71 MIssissippL ___________ -------------- 65 2 1 7 0 75 MissourL__________ ------------------ 74 9 1 16 1 101 Montana______ ----------- 31 0 0 5 0 36 Nebraska_____________ --------------- 29 0 0 , 0 38 Nevada._~____________________________ 15 1 0 5 0 21 New Hampshire______________________ 13 • 0 2 0 19 New,Tcrsey_______ ------------------- 23 8 2 5 1 39 New Mexico __ --------------- 35 3 1 7 0 46 New York____________________________ 112 45 7 31 7 002 North Carolina______________________ 127 33 3 16 1 UIO North Dakota_______________ 17 0 0 8 0 25 Ol1io __________________ --------------- 84 34 10 28 2 158 Oklahorna_______ --------------- 52 1 5 12 2 72 Oregon__________________ . ___ . ________ 65 8 3 0 0 85 ~i~r;fl1~i~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 137 43 7 37 2 226 12 5 0 3 0 20 South CaroUna____________ . __________ 62 14 1 10 0 87 South Dakota__ . ___ .,________________ 18 0 0 3 0 21 Tennessoo ________ . __________ . __ •_____ 01 12 2 13 1 11'Texas________________ • ________________ 222 18 7 41 1 269 Utah ____ •____________________________ 23 3 2 3 0 31 Vermont____________________ ._ 14 0 0 1 0 15 Virginia_____________ ---------------- 79 17 3 1. 0 113 Washington _ --_.---------------- 70 6 4 13 1 94 West Virginia____________ -----._----- .. 11 0 11 0 66 Wlsconsin_____________ -------------- 73 14 • 16 1 113 Wyomlng_________ . ------------- 20 0 0 1 0 21 Alaska __~________________ ------------ 13 0 0 5 0 18 Guarn_. _. ___________ ._ -------------- 1 0 0 1 0 2 HawaiL ________ ._._______________ 14 1 2 I 6 0 23 Puerto Rico____________ . ------------ 27 2 0 5 1 35 Virgin 1sI8nds_________ -------------- 3 1 0 0 0 4 Broadcast Authorizations by Cities New York City (37) has more AM, FM, and. TV authorizations together than any other city. Chicago (33), Los Angeles (28), and Philadelphia (26) follow. . New York City and Chicago (15 each) head the AM list, followed by Los Angeles (13) and Denver and New Orleans (11 each). Los Angeles (8) has the most commercial authorizations; New York City and Chicago (7 each) team for second place. Under the 404807-56--9 118 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION TV channel-allocation plan, no city has more than 1 educational TV grant. In the commercial FM field, New York City (12) leads, followed by Chicago (9) and Philadelphia and Washington (7 each). Boston, Philadelphia and Madison (Wis.) each have 3 educational FM stations. Following is a tabulation of the number of broadcast stations authorized in the particular cities listed. It does not include neighbor ing stations which also serve those cities. FM TV AM Total Cammer- Educa- Cammer- Educa· cial tional ,"'1 tlonal New York____________________________ 15 12 2 7 , 37 Chicago________~_.____________________ 15 • , 7 1 33 ~u~~'~~k===~== ===== === ===: =:::::: 13 6 1 8 0 28 10 7 3 , 1 28 San Fmncillco__________________ . ______ 10 3 1 , 1 20 A t1a.nta.. ______________________________ • , , , 1 ,. Bostou______ . __ ._.____________________ 8 , 3 , 0 ,. Cleveland___________________ • ________ 7 • , 5 0 ,. Washingtou.•__ . __________ •______ . _._ 7 7 0 5 0 1. Denvor______________________ . ________ 11 2 0 , , 18 M Inneapolis-St. Paul._.______________ 10 3 , , 0 18 New Or1ool1ll______________________ 11 3 0 3 1 18 Plttsburgh____________________________ 7 , , 5 1 18 b~jt=~_~~~~·!~:==================== 10 , 0 , 0 18 8 3 3 2 0 16 Dctroit________~______________________ 5 5 1 , 1 I' lIoustOll_______~______________________ 8 2 1 , 1 16 M iatnL_______________________________ • , 1 4 1 16 San Antonio__________________________ • , 0 3 0 16 8eattle._______________________________ • 3 1 2 1 16 Baltlmore_____________________________ 7 2 1 5 0 15 Binningham__________________________ 8 3 0 , 1 15 Buftalo______________________ •________ • 4 ·0 , 1 15 Richmond____ • _______________________ 8 , 0 , 0 15 CincinnatL___________________________ • 3 0 4 , H Fresno________________________________ 7 , 0 , 0 H :racksonvllle__________________~_______ 8 3 0 3 0 H Mempb18_____________________________ , 1 0 3 1 H St. 1.ou18_____________________~_______ 8 1 , , 1 l' t~~~~~_~~~!~~===================== 5 2 2 3 1 13 7 0 2 , 0 I' Milwaukee•••________________~_______ 7 1 0 5 0 13 Providence___________________~_______ • , 0 3 0 13 Rochester_____________________________ • 2 0 , 1 13 ~1~~~t1~~~~===================== , • 0 3 0 13 • , 2 3 0 12 • 1 2 3 0 12 Madison (W18.) •••___ •________~_______ , , 1 3 1 12 Oklahoma City__ •________._._~_••___ • 7 0 1 3 , 12 Sbreveport________ • ___ •___ ••_.~~______ 7 , 0 2 0 12 ti:_~~=~============= =============== • , 1 2 0 12 • 0 1 , 1 12 Des Molnes__________._.______~_______ 6 1 1 3 0 11 Syracuse______________________~_______ 5 2 1 2 1 11 Albuquerque______________ •__~_______ 5 1 1 , 0 10 Baton Rouge__ • __ •__ ._.___• __~____ • __ 5 2 1 2 0 10 Columbia (8. C.) ••_______ •___~__ •____ 5 2 , 2 0 10 Grand Rapids_____________ •__~_____ •• • 2 0 2 0 10 XaIlBllS City (Mo.). _._.______~__ •____ • 1 0 3 0 10 NasbvJlJe____________________•••______ 7 1 0 2 0 10 8avannah__ •___________ •••_•__~___~___ • 2 0 2 0 10 Scranton__ ••______ •__~_.______~_______ , 1 1 3 0 10 BpoklUl0. ____ ••_••________ ••_. ________ • 1 0 3 0 10 Tole include noncommercial educattonalstations. Miscellaneous j,ncludes relay and studio lInks; expertmental, etc. REPORT OF THE FEDERAL COMM.UNICATIONS COMMISSION 121 Pending Broadcast Applications The number of pendingnonhearing broadcast applications increased from about 1,800 at the close of fiscal 1955 to some 2,400 at the end of 1956. The age of the currently pending applications is indicated in the following table: Service ------~--= = '" 15 5 8 " 27 , 1 2 37 17 0 0 1 18 11;1) 121 18 82 821 ---- --------- --- 220 143 24 43 430 = = = = 73 16 , 11 10' 10 0 1 0 11 125 12 , 6 148 167 171 15' 11;1) 64' ------------ --- 375 199 169 167 910 AM New stations . _ ChangE'B ..__ _ _ . __ Renewals. _ Other . • . _ AM totaL . . _ F.JU New stations__ . . _ Changes. _ . _ Renewals ._, . . _ Other__ _ .... . __ FM totat~_ TV New stations . . _ Changes. _ Renewals . __ . . Otller ._._ TV totaL ... _ _"""1i8ceUaneou8 New stations__ _~_ Changes . _ Renewals__________ _ . _ Other. __ * • _ Miscellaneous totaL~__ . _ '62 12 , 39 23 78 850 2 1 6 6 17 30 o o o o o 123 1 1 o 2 , '64 " 6 ,. 33 99 Grand totaL • _ ===== .1 I, 135 709 223 336 2,403 Receiving Sets The manufacture, sale, and use of receiving sets are not subject to Commission licensing. The Commission does, however, have juris diction over radiation from all apparatus which interferes with radio communication. New rules, effective February 1, 1956, for the first time, put limitations on the amount of permissible radiation from receivers operatiug between 30 and 890 megacycles, which include FM and TV sets. The Commission does not tabulate the number of receiving sets. Industry estimates that aural broadcast receivers in use now exceed 125 million. Sets in automobiles number 35 million. The same sources count nearly 39 million TV sets in operation, 33 million of which are VHF only. A July 1956 survey by the Census Bureau reveals that 4 out of every 5 city homes and half of the farm homes now have TVsets. 122 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Broadcast Industry Financial Data In the calendar year 1955, the radio and television industry's total revenues (which are derived from the sale of time, talent and program materials to advertisers) were reported at $1,198.1 million. Total radio revenues rose 0.9 percent to $453.4 million while TV revenues reached $744.7 million, or 26 percent above 1954. Total radio and TV profits of $196.2 million in 1955 were 48 percent above 1954. Television broadcast profits of $150.2 million were 66 percent higher and radio profits of $46.0 million were 10 percent higher. The following tables show the comparative calendar 1954-55 finan cial data for the radio and television broadcast industries: All Networks and Stations, 1954-55 Item Percent 1954 1955 increase (millions) (millions) or (de c.rCl1$) 1D "55 $1,042.5 $1,198.1 449.5 453.4 593.0 744.7 910.4 1,001.9 107.7 407.4 502.7 594. .5 132 I I 100.2 41.8 46.0 00.3 150.2 I Radio inclUdes AM and FM broadcasting, Note. 1955 radlo data oover the operations of 4 natIonwide Dl'tworks and 3 regional networks, 2,104 AM and AM-FM and 381ndependent FM stations. 1954 data are for the same networks and 2,554 AM and AM-FM and 43 Independent FM stations. 1955 TV data cover the operations of 4 networks (3 networks after Sept. 15, 1965, when DuMont ceased network operations) and 437 statIOIlB. 1954 TV data cover the operations of4 networks and 410 stations. Nationwide Network8 only, 1951,-55 lIncludJng owned and operated stations} Item 19....... (milllWa) Percent increase or (rIe crease) in "'" Radio ._.__ •• ••._._~•• 5.1 Televisloll •••~.•~_..~____68.0 $391.2 14.6 84.5 (11.8) 306.7 21.9 347.2 &1 77,0 (9.9) 270.2 13.2 44.• 66.1 7.' (32.0) aa, 8.8 Nott 1. Radio data Include the operations of 16network-owned stations In 1954and 1l.JOO. Nou I. Television datainclude the operatIons of 16 statl0ll81n 1954 and 1955. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 123 AM Radio 1 Broadcast Revenues, Expenses, Income and Investment, 1954-55 [In thousands] 4 nationwide 3 regional net- All other networks andwork~and their stations 3 Industry total Item their stations I stations 2 1954 1955 "54 1955 1954 1955 1954 1955 --------------------- Total broadcast revenues___._~______ $84,484 $74,511 $4,109 $3,814 $360,192 $314,013 $448, 785 $452,338 Total broadcast expenses_____~______ 76,981 69,449 3,4£2 2,"" 325,890 333,1>65 406,333 405,982 Total broadcast income (before Fed- efal income tax) ___________________ 7,MJ3 5,062 6<7 54' 34,802 40,448 42,452 oM,866 Investment in tangible broadcast property: Original C05t ___ .• _______._~._.___ 21,714 17,196 1,737 1,440 256,331 266, 157 278, 782 284,793 Depreciation to date_____________ 11,701 9,198 1,074 007 120,557 130,082 133,332 }4U,267 Depreciated cosL___ • _____~______ 10,013 7, OIlS 662 453 134,774 136,075 145,450 144,526 I Excludes iudependently operated FM stattons, 43 in 1954 and 38 in 1955- 2 Includes th(l operations of 21 network owned stations in 1954 and 19 network owned stations in 1955. 3 Includes 2,533 stations in 1954 and 2,685 stations in 1955. FM Broadcast Revenues, Expenses and Income, 1954-55 ''''' Item 1955 Number Amount Number Amount olstatlons (millions) ofstations (millions) Total FM broadcafjt revemull' FM stations OPerated by: AM licensees: ReportinK no FM revenues. ._. _ Non~A~rn~~~~"~.\:~~~~~~~~~~~~~~~~~~:~~~~~:~::~~::::::: 35ti _. __ • _ 130 $1.1 43 .8 52' Total FM statlons ._._. .•••••_. ._•• _ Total FM broadCUllt expt1UJtll' FM stations operated by non-AM lI('ensees_.. ._____________ 43 Industry totaL ., . . • ••_•••_ FM broadcafjt income (before Federal income tax) FM stations OPerated by non·AM 11oonsees__ ._________________ 43 Industry totaL ,___ _ •__*.~. .. l.O ,., (') (1)(·6) "" 38 38 1. , 1.4 (') (.4) (') I In view of the difficulty In a joint AM·FM operation in allocating FM operation expense~parately from AM station operation expense, llcensees of such stations were not required to report FM stationeJ:~ pense separately. As a result, FM industry totals for expense and income are not available. AM-FM IIcensoos, however t were requested to report separately the revenues, if any, attributable to FM station operation if SUch aata were reAdily available. In only a few Instances did AM·FM licensees state they were tmable to segregate the FM revenues. ( ) Deuotes loss. 124 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION TV Broadcast RevemLes, Expenses and Income, 1955 Item 4 networks and theIr 16 owned and oper ated TV stations I 421 other TV stations (millions) Total 4 networks and 437 TV statlons ( J 3 notworks after Sept. 15, 1955, when DuMont ceased network operations. I Of thIs amoWlt 47.0 mlllioll is applicable to the total sale of network time. Interference-Its Cause and Cure GENERAL PROBLEM One problem that is plaguing radio communication in general and the Federal Communications Commission in particular is the extent and magnitude of the interference situation. This is brought about by a combination of developments among which are the mushrooming of transmitters (now more than 1,100,000 in non-Government use); the expansion of radio operations in the higher frequency regions; the widening use of industrial, medical, and household devices which, though not used for communication, emit radiations which disrupt radio services; lllultiplying closed circuit and carrier current systems, and inadequately shielded TV and other receivers which not only receive but also release annoying signals. GENERAL REMEDIES It is no longer sufficient to control and regulate the transmissions of radio stations. It has become necessary to impose some degree of regulation on all factors responsible, particularly the nonradio users of radio frequency energy. The Commission is tackling this problem through rules governing the emissions of nonradio apparatus, approving certain types of equipment before it is put into use, and enlisting the cooperation of all concerned to repel these vexatious, and often dangerous, intruders upon our airwaves. INDUSTRIAL, SCIENTIFIC, AND MEDICAL EQUIPMENT Part 18 of the Commission's rules governs the use of industrial heating, medical diathermy, arc welding and other equipment which generates radio frequency energy. The waste emissions from some of this apparatus have been known to skip-jump clear across the cOillltry to blot out safety messages in transit thousands of miles away. Besides the hazard it presents, this is energy lost to the user. Regulation of these devices is based on the principle of providing particular frequencies to absorb excess radiation without harm and, at the same time, imposing curbs on invasion of any other frequency. The frequencies on which unl!mited radiation is permitted are called 125 126 REPOIlT OF THE FEDEIlAL COMMUNICATIONS COMMISSION "ISM" (from the initials of the words "industrial, scientific, and med ical") and are available for communication use on a secondary basis subject to accepting ISM interference. Interference from industrial heaters and diathermy equipment has lessened to some extent, but the problem of radio frequency stabilized arc welders remains unresolved. These welders, which operate in an inert gas atmosphere to prevent oxidation of the metal being welded, are used in the fabrication of stainless steel and certain nonferrous metals such as aluminum. They are operating under temporary regu lations until a general method can be devised for reducing their radiation. In May 1956 the Commission invited specific information needed to formulate permanent rules. INCIDENTAL AND RESTRICTED RADIATION DEVICES As originally promulgated in 1938, part 15 of the Commission's rules was intended to control the radiation of certain unlicensed low power devices, such as wireless phono-oscillators and equipment used for remote control purposes. These rules were also applied to curb the leakage radiation from carrier current systems which transmit radio frequency signals over wire lines. They were revised on Decem ber 22, 1955, in the light of many recent developments. Devices subject to part 15 are separated into two categories-those involving "restricted" radiation and others involving "incidental" radiation. "Restricted" radiation devices are those which intentionally generate and use radio frequency energy, such as radio receivers and devices for very short-range contact. This category also includes radiation which leaks from carrier current systems and a wide variety of gadgets that have become household conveniences. "Incidental" radiation devices are those which radiate radio fre quency energy unintentionally. Examples are electric motors, switches, automotive ignition systems and, in fact, any electrical con trivance that produces arcing. Considering the almost infinite variety of incidental radiation devices and present lack of knowledge as to what limitations should be applied, the Commission is, for the time being, regulating them on the basis that any harmful interference they cause to the regular radio reception must be promptly eliminated. The rules pertaining to radio receivers mark the entry of Commis sion regulation into a new field. They are the result of a concerted effort by the Government and industry to find a practical solution to the widespread interference caused by radiating receivers, especially TV and FM sets. They are primarily directed to make new receivers Jess prone to radiate. Since it is not feasible to suppress radiation from the millions of existing receivers, their interference will continue to be handled on an individual basis. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 127 On July 12, 1956, the Commission added rules specifically applicable to radiation of community lIJltenna TVsystems. Italso anticipates adopting rules concerningother types ofrestricted radiation devices as soon as related problems are resolved. Chief among these is the group of low power communication devices, essen tially miniature transmitters, which radiate for distances up to 50 to 100 feet, such as controllers for garage-door openers, wireless micro" phones, and the like. Another group of restricted radiation devices which requires addi tional consideration is the various types of carrier current systems used for industrial and broadcast purposes. One example is electrical transmission systems used by power utility compauies for telemetering, for load control and for voice commnnication between the generating plants and the control centers. The problem here is how to curb the leakage while permitting the system to continue its primary service. TYPE APPROVAL AND TYPE ACCEPTANCE As a means of preventing interference before its starts, the Com mission requires certain equipment to be "type approved" or "type accepted" prior to its manufacture, distribution, sale, and use. The distinction between "type approval" and "type acceptance" is that the former is given after laboratory tests by the Commission, while "type acceptance" is based upon Commission evaluation of test data sub mitted by the manufacturer. MONITORING FOR INTERFERENCE One of the Commission's monitoring functions is to identify sources of actual or potential radio interference, make engineering measure ments and observations to determine the reason for it, and help locate the source. During the year, in addition to its own airwave surveillance, it received more than 5,700 requests for monitoring service in connection with interference complaints. This was 2,000 more than in 1955. A breakdown follows: F1scall{l6(i Fiscal 1006 337 112 66 61 42 66 28 11' 76' '" 1,62/1 ~144 0,764 287 139 00 64 65 38 24 177 462 38 1,878 2."" 8,726 U. S. Air Force. . • . •." _ U. S. Army . . __ . ._. , }!:~:if~lt-(iliar(f.-_-~~~=~===~======::::: =::::::::::::::::::::::::::::::::::: Civil Aeronautics AdminIstration. c __ •• • _ Other Government agencies .~~, Law enforcement a.genctes _ Commercial airlin£'-s~.__" . Commercial oouC('·rns • , _ Foreign governments~_._~~~~~__ I---:--=-·I--~ Misce~~:al::ros~s5::::::::::::::::::::::::::::::::-:::::::::::::::: I===;':==I=~~ Orand totaL •• • ..._~_.•~__. .•_. • 128 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The following examples illustrate the effectiveness of the monitering network in quickly resolving widespread interference complaints: The Air Force reported interference to some of its airway communi cation stations caused by a steady unmodulated signal. Within 5 min utes the FCC pinpointed the source at a military installation near the nation's capital. Within another few minutes the defective transmit ter was singled out and removed from service. The Commission was successful in identifying a number of interfer ence sources at the request of foreign countries. In one instance the cause was determined to originate in the same European country mak ing the request; one of its radio navigation stations was interfering with overseas reception of one of its fixed point-to-point stations. Closer home, the FCC net quickly directed the mobile direction finding car of the Chicago district office to the Chicago Midway Air port, enabling it to find a defective aeronautical transmitter which had been causing serious disruption to communications of another airline. This interference was heard as far away as the FCC monitoring station in Hawaii, which furnished one of the bearings used to locate the malfunctioning transmitter. Another airline reported widespread interference from an unidenti fied signal which frequently drifted across one of its busy frequencies. The FCC net speedily fixed the general area, and a mobile unit from the Norfolk district office completed the search by locating a radiating industrial heater in a manufacturing plant at Bristol, Va. Weak SOS distress signals heard over the midwestern and eastern part of the nation caused concern to the Air Force and Coast Guard. They were found by the FCC net and mobile units to be originating from a factory at Kokomo, Ind., which was bench-testing small auto matic distress transmitters used in planes and boats. The company promised to confine future testing to screened rooms. INTERFERENCE COMPLAINTS During fiscal 1956, the number of interference complaints requiring field investigation amounted to 19,345, an increase of 1,383 as compared with 1955. Of these, 15,042 involved interference to TV reception, while 2,520 related to interference to AM and FM broadcasting. Only 5 complaints concerned interference to color TV. The other 1,7'83 complaints covered a wide range as to types of non broadcast cases, including serious interference to important communi cations or radio navigation facilities on land, on sea, and in the air. Although improved sensitivity of receivers to permit utilization of very weak signals may permit reception at greater distances than might otherwise be possible, dependency upon such weak signals simul taneously increases the probability of interference, inasmuch as many REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 129 stray man-made electrical disturbances which would not bother a strong signal will result in devastating interference to receivers which must depend on very weak signals. By helping individuals and stations to help themselves, the Com mission's limited investigative field staff was able to concentrate on cases involving interference to safety services, to investigate the more difficult interference cases, and to inquire into illegal radio activity. The 522 Commission-sponsored Television Interference Committees established in 491 communities throughout the country proved to be of outstanding assistance to TV viewers by promptly investigating local interference complaints, facilitating correction or referring cases to the Commission's nearest field office for further possible investiga tion. A Cooperative Interference Committee organized in the Los An geles area, comprised of persons associated withinterference~conscious electronics and radio communicntiolls industries, has set a pattern for coordinated self-help in resolving a wide range of interference prob lems. Like groups are active in New Orleans, San Francisco, Phila· delphia, and Atlanta. Intercst expressed in other parts of the country in fornling similar committees is being encouraged by the Commission. By such means, many interference complaints can be resolved locally without referral to the Commission field offices. The following'case iIlustnltes an instance in which self-help effort might have effected speedier relief, at the same time permitting a Comnlission engineer to work 011 more serious matters: Neal' San Francisco, a complaint of interference to reception at a coast station, referred to the Commission, was traced to one of the company's own transmitters about 15 miles away. Though still weil below the figure of 576 for fiscal 1954, the number of complaints of interference from industrial, scientific, and medical equipment increased to 247 in 1956, as compared with 223 in 1955. This may have been due in part to inability, because of personnel lim itations for the FCC field staff to engage in any appreciable "inter ference-prevention"' efforts. The number of "interference-prevention" visits to offices with diathermy machines that were possible in fiscal 1956 was less than 600 compared with 5,093 in 1955. Among safety services experiencing interference from electric arc welders were the Civil Aeronautics Administration, Northeast Air lines, Northwest Airlines, United States Weather Bureau, Third Naval District Training Center, United States Engineers, an Air Defense group and the Portland, Oreg., police. Radio services interfered with by errant radiation from electronic industrial heaters were AM and TV broadcast; municipal, county and State police; fire departments; airlines and the military. 130 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION In addition to excessive radiation from industrial electronic equip ment, spurious radiation from improperly operating radio trans mitters can also cause serious interference as indicated by the following cases : Spurious radiation from a Navy transmitter disabled fire depart ment communication, causing serious interference to at lea-st 10 fire stations in Hawaii and rendering reception from fire trucks almost impossible. Spurious radiation from an FM broadcast station at Elmwood Park, Ill., fell on an aircraft instrument landing frequency. The broadcast station remained off the air most of a day until adjustments and tests showed the potential hazard to aircraft safety had been eliminated. Interference to taxicab radio reception throughout a Virginia city was traced to a police transmitter which was imposing a strong hum on the taxicab frequency. At Miami, interference to police radio reception was caused by harmonic radiation from an FM broadcast station. Spurious radiation from a new radar being installed at a Chicago l1irport resulted in interference to airline and AM and TV broadcast reception. Interference to an aircraft emergency and distress frequency at Pearl Harbor and Hickam Field, near Honolulu, was traced to a transmitter which had accidentally been left on. Some examples of the sometimes serious interference that can be caused by low-power devices not intended to transmit radio signals were: At Martinez, Calif., a defective TV ,'eceiver booster amplifier was found to be causing interference to about 500 receivers in an area of about 130 square blocks, with interfereuce to other persons living as far'as 5 miles away. At Dallas, channel 8 TV reception was practically obliterated in a 2-block area due to a radiating TV receiver. A peculiarity in this instance was that the trouble in the TV set resulted in its rebroadcast ing channel 4 programs on channel 8 in a distorted form, A coast station at Martinsville, N, Y., reported severe interference on the marine distress frequency 2182 kilocycles. The clliprit was found to be an electric fence where sparks were jumping to a chicken wire coop in which a number of dogs were kept. Persistent and annoying interference to radio reception by patients in a Honolulu hospital was traced to fluorescent lights nsed in the hospital. A potential interference source found at Nevada City, Calif., was electrical power line leakage to trees, as visually evidenced by burned or singed leaves where branches had brushed against the wires. REPORT OF THE FEDERAL COMMUNICATIONSCO~MISSION131 SMALL BOAT INTERFERENCE The Commission's program of inspection, harmonic certification, and monitoring in connection with the use of small boat frequencies has accomplished a degree of improvement, but the surface has only been scratched due to the large number of radio-equipped small vessels and their wide dispersion both as to areaS of operation and the locations of outfitting or headquarters points, as well as to the fact that the vessels are in port for such brief periods. The Commission continues its efforts in identifying and notifying owners of vessels whose trans mitters emit harmonics which play hob with the frequencies used in the aviation service. The licensees of these ship radio stations are required to eliminate the trouble, and to obtain a certification to this effect from radio experienced maintenance personnel. The Commission is still trying to remedy the chaotic condition which exists on the distress frequency 2182 kilocycles, caused, principally, by the personnel of some of the thousands of small vessels engaged in commercial operations or for pleasure. To them, apart from the safety aspects provided, radio communication is an interesting and convenient method of exchanging idle "chit-chat" which is not con nected with safety matters or boat operations. Also, the Commission is doing everything possible under its budget ary limitations to cope with the special problem presented by indis criminate use on small boat frequencies of obscene and profane language. These law violators avoid identification by a form of "un derground operation", using nicknames, previously agreed upon, but consistently avoiding the use of their call signs which are required by Commission rules and international treaty. In spite of efforts by the Commission field staff through talks to small-boat operators and "user committees," distribution of hundreds of thousands of pieces of information, and continuous liaison with the various small boat operators, there still remains a serious problem in apprehending boat operators who cause instability and outright malicious interference on these vital safety frequencies. FCC-GOVERNMENT INTERFERENCE CASES During the past year, approximately 400 cases of harmful inter ference between United States Government stations and FCC licensees were referred to top Federal level for settlement. Detailed procedures have been developed for handling such cases. Consequently, regardless of who is at fault, agreement ordinarily can be reached quickly once all of the factual details have been set forth. Developing these de tails, however, is a difficult and frequently time-consUlp.ing task because the stations involved often are thousands of miles apart. Cases in- 132 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION volving safety of life and property, such as interference on inter national distress frequencies or on aviation traffic control frequencies, are given special handling. The majority of serious interference cases of this nature result from human error or ignorance rather than equipment malfunction. INTERNATIONAL INTERFERENCE AND INFRACTIONS Indications are that the rapidly increasing sunspot activity is affect ing radio propagation in such a way that more international inter ference conflicts have to be resolved than ever before. This work involves considerable research and engineering evaluation, but in spite of this many cases are adjusted in a short time. Cases which cannot be settled at technical levels are handled by the Department of State. Of considerable importance to the interference-prevention program was the forwarding to foreign administrations of over 3,500 reports of technical treaty infractions by foreign stations in the past year. These reports of observed off-frequency operations, spurious emissions, etc., serve to remind the responsible authorities of the importance of keeping their radio "highways" open. The procedure for reporting such infractions is agreed to internationally. The United States re ceives its share of similar infractions by its licensees noted by other countries. Such reports are referred to the propel' enforcement au thorities for disposition. A highlight of the interference-control program during the year was trial of a uniform procedure for processing the official data which must accompany international interference negotiations. Cooperation of the communication companies involved has been an important asset to this trial. . Permanent institution of this procedure in revised form is planned for the coming year. Field Engineering and Monitoring GENERAL The Commission's enforcement and "grass roots" contacts are ac complished largely through its field engineering and monitoring staff. The latter performs licensing functions for radio operators and certain classes of radio stations. It inspects all types of radio stations. It locates and closes unlicensed radio operation. It investigates and solves thousands of interference complaints. Itmonitors the spectrum for technical violators, and assists in locating lost or disabled aircraft and ships. It renders particular services to governmental agencies, station licensees, and the public. This is made possible by a field organization of 23 district offices, 6 suboffices, 1 ship office, and 18 monitoring stations. The latter are connected to Washington headquarters through a rapid communica tion system. Six regional offices were discontinued at the close of the fiscal year. MONITORING Monitoring Facilities The monitoring and direction-finding network comprises 10 primary and 8 secondary stations. (See list in appendix of this report.) The Muskogee, Okla., and the Anchorage, Alaska, secondary moni toring stations were relocated during the past year. The former was moved to a site near Ambrose, Tex., and the Anchorage station to Point Campbell, still in the vicinity of Anchorage. Both are now on Government-owned land and in new buildings erected especially for monitoring purposes. It is planned to move the Twin Falls secondary station, now on inadequate leased property, to a new site obtained by the Commission near Douglas, Ariz. This will further improve the long-range direc tion finder network through backup support to the Santa Ana primary station and by coverage of border territory in the southwest. The Commission has obtained Government land near Chillicothe, Ohio, for its secondary monitoring station, n01-Y on leased property near there. Unfortunately, even the sites of some of the larger primary moni toring stations are ontgrown or have become progressively unsuitable 404S07--f)G---IO 133 134 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION due to encroachments by residential and industrial expansion. In consequence, the Commission is seeking better sites for eventual moves of three primary stations. All monitoring stations are now equipped with remote-controlled, long-range high-frequency direction finders. In addition, seven sta tions near the seacoasts have medium-frequency direction finders. During the year higher-powered radio transmitters were installed at some stations. Development of radioteletype communication between stations is dependent on the availability of funds. Long-range plans contemplate the eventual conversion of all mv radiotelegraph alerting and net-control radio circuits to radioteletype for increased efficiency and speed of operations. Monitoring for Defense The Commission continued to give requested monitoring and direc tion-finding service to the Department of Defense research programs. The FCC's coordinated network is the only one capable of providing this specialized service. Military agencies contract with the Commis sion for the work at a considerable saving compared to the cost of establishing duplicate facilities. The largest contract ($143,000) provided for direction-finder track ing and monitoring interception of telemetering information relating to high-altitude weather balloons launched by the Air Force Cam bridge Research Center. Similar work for the Navy Bureau of Aeronautics and the Naval Research Laboratory amounted to $74,750. Included in work for the Navy was assistance in tracking free-floating radio-equipped buoys planted in the ocean in the expected path of hurricanes. The monitoring portion of special ionospheric propaga tion studies of field intensity recordings for the Army accounted for $16,775. Collectively, these monitoring contracts totaled $234,525. Monitoring Surveys The United States is obligated under international agreements to furnish frequency usage and band occupancy monitoring data to the International Frequency Registration Board (IFRB) of the Interna tional Telecommunication Union (lTD) at Geneva, Switzerland. This information assists in efficiently allocating the scarce radio fre quencies useful for international communications and thereby directly benefits the United States commercial and Government users of these radio channels. The Commission's monitoring stations continue to be tlie principal United States source of this monitoring data. However, five large domestic commercial companies now participate in the program. The data they obtain are included with that forwarded by the Commission. In fiscal 1956, 178,300 monitoring items were forwarded to the IFRB ll>lPOllT OF TH>l F>lD>lllAL COMMUNICATIONS COMMISSION 135 by the United States. Of these about 154,300 were obtained by FCC monitoring stations and 24,000 by commercial companies. The Commission made 22 special monitoring surveys during the year compared with 36 last year. On the surface this appears to be about a 35-percent reduction but actually the work decreased only slightly because 6 of these cases were continued throughout the entire year for the purpose of placing particular emphasis on observation of certain frequency bands where detailed occupancy data were re quired by the Conunission in allocating frequencies and in determining the extent of interference resulting from new or modified allocations. Direction Finding Without its effective 18-unit long-range direction finder network, the Commission's monitoring service would be operating "blind" in attempting to locate signals that do not transmit call signs or other identification. Also, it wonld not be able to render the "fixing" service that it does in search and reSCue operations involving planes and ships. Its monitoring network is also a strong deterrent to illegal transmission because such operations can be quickly run down by radio bearings once they are detected. FCC monitoring stations re ported a total of 117,726 bearings during the year, although many more unrecorded bearings were taken as aids in local monitoring work. A considerable portion of the direction-finder workload is accounted for under the balloon-tracking contracts for the military agencies. Such bearings totaled 62,280 during the year, which was an increase of 19,290 from the year previous. A total of 1,700 bearings were taken in the air-sea search and rescue program of assistance to lost or disabled planes and boats. There were 117 separate emergency cases of this type during the year compared to 110 last year. Some typical cases were: Emergency assistance to planes.-A Pan American Stratoclipper carrying 60 persons was prevented by an overcast from using celestial navigation and by a magnetic disturbance caused by sunspots from relying on its compass and other navigational aids. It was off course in the Pacific en route from Australia to Honolulu and was trying to find Canton Island before it ran out of gasoline. The CAA requested FCC assistance. The resulting fix assisted in guiding the plane to a landing at British Samoa with 90 minutes fuel left. The CAA requested assistance to locate an Air Force plane having engine trouble while en route to Travis Air Force Base from Hickam Field, Hawaii. Three FCC fixes assisted a Coast Guard plane in mak ing contact with the disabled craft about 175 miles off San Francisco and escorting it tobase. A Navy plane over the Pacific heading for Pescadero, Calif., was down to only 700 feet due to engine trouble. Aided by 2 FCC fixes, 136 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION a Coast Guard plane found the faltering craft 200 miles out at sea and guided it into a safe landing at Alameda. A military plane was reported by CAA to be in need of direction finder assistance because of a damaged wing and uncertain position in the Gulf of Mexico. The FCC positioned the craft 450 miles south east of New Orleans. It was brought into a safe landing at Brookley Air Force Base. Another instance concerned a military plane in the Atlantic with a fire on board but under control. As a precaution, a Coast Guard plane used an FCC fix to confirm the plane's reported position. It was able to escort the other plane 600 miles to a safe landing in Bermuda. Emergency assistance to ships.-The Coast Guard asked FCC assistance to locate a balsa raft, named the Caututa, carrying 4 men and 1 woman trying to duplicate the Kou-Tiki'8 feat of sailing from Peru to the Polynesian Islands. The crew of the raft had radio equip ment and sent out a distress call after their food supply became low and a current stalled their progress. The Navy Hydrographic survey ship Rehoboth was enabled to pick up the raft about 1,000 miles northwest of the Galapagos Islands. The FCC also assisted the Coast Guard in tracing unidentified distress signals which appeared to come from a small hand-cranked emergency transmitter known as a "Gibson Girl". Two fixes indicated a point in lower Chesapeake Bay at which a Navy plane found a rubber liferaft carrying 5 persons from the 68-foot auxiliary yawl Tol' batro88 which had hit a submerged object and sunk while en route to Florida. There was no loss of life and the raft passengers were rescued byhelicopter. Other instances of FCC assistance furnished at the request of the Coast Guard included positioning the fishing vessel M-E Second lost in a fog off California; the fishing vessel Skilligolee caught in heavy seas and leaking off Cape Cod; the disabled vessel Oarlyle Bay off Bermuda carrying a crew that had been without water for 3 days, and the trawler Jean Lafitte lost in the Gulf of Mexico with engine trouble. Other Monitoring Cases In addition to interference-type monitoring cases, others involved the detection and location of illegal transmitters, enforcement of the Communications Act and radio regulations, and special projects to assist the Commission and other Government agencies. The number of such cases totaled 1,301 compared to 1,127 last year. In addition, 6,548 local monitoring cases involving subjects unrelated to inter ference were handled in the field. This compared with 4,315 such cases in 1955. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 137 Additional monitoringstatistics follow: Fiscal 1955 Fillcal1956 Alerts, unknown or suspicious signals . , . Ic:rontlficatioll tUG sllps . _ Monitorin~citations served.~__ Requests for monttorlnR coverage (noninterference cases): FIeld Engineering and Monitoring Bureau originations _ Other FCC Divisions/Bureaus.~• _ Other Government agencles__________________ _ _ Amateurs. . • . __ . Commercial concerns. _ Foreign governments____________ _ _ () 730 154;'739 11,192 138 50 133 79 23 21) 10,104 187,236 13,674 137 45 167 77 22 '" Monitoring Training Program Pursuant to Presidential directive of January 11, 1955, requiring the training of Government employees, a training program was started to provide class instruction to supplement on-the-job training for moni toring observers and monitoring-control watch officers. The COurse is designed to train lnonitoring personnel to perform their duties at the highest level of efficiency and individual usefulness, particularly as they must work the larger part of the time without close supervision. Furthermore, because of budgetary limitations on staffing, each man may be called upon to assist in almost every phase of monitoring station operation and maintenance. Because of the specialized nature of the Commission's monitoring operations, there are few sources for recruiting adequately trained per sons for staffing its stations. It must, therefore, depend heavily on its own resources for training its monitoring observers. The coverage of this training program includes approximately 130 employees engaged in monitoring activities in the field and in Wash ington. Instruction consists of one hour per week class work sup plemented by study assignments. The program has been coordinated with the Civil Service Commission. INSPECTIONS Fewer inspections of radio stations could be accomplished during fiscal 1956 than in 1955 due to continued budgetary limitations. Broadcast Station Inspedions Accurate maintenance of important operating characteristics is es sential to assure that broadcast stations render a service of high techni cal quality to the public. Inspections of the stations are necessary to make these determinations and to assure that certain safety require ments such as the painting and lighting of extremely high towers are of a quality to afford proper safeguard to air navigation and that auto matic devices for the flashing or rotating beacon function in accordance with requirements. Observations of the station's transmissions are 138 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION also essential at intervals to assure that interference is not caused to other stations, including those in the vital safety service, through ac tual or imminent misadjustment. It is also necessary to see that the station is operated at all times by the appropriate grade of radio telephone operator as required by Commission regulations. A total of 1,059 broadcast station inspections was made during fiscal 1956 as against 661 in 1955. At the same time, in5 citation notices were issued to the licensees pointing out discrepancies. This consti tuted an increase of 50 percent over the year previous. Ship Radio Inspections In order to maintain, at the highest possible level of reliability, the radio equipment on board passenger vessels and certain freight-carry ing vessels and to assure that this equipment will be ready for com munication in times of emergency, regular inspections are made of the radio equipment on board these vessels under the provisions of the Safety of Life at Sea Convention 1948, and the Communications Act. Geographically, the FCC's marine-inspection activities encompass the continental United States, territories, and possessions. Approxi mately 52,000 vessels ranging from the largest ocean liners to small pleasure boats are subject to inspection of their radio equipment at intervals. Drastic curtailment of the Commission's ship inspection program has been mandatory since 1953, following a decrease of 50 percent of field personnel available for this work. As a result, inspections of radio installations on Ameriean passenger ships can be made not oftener than at 6-month intervals and those of American cargo ships only once per year. On the Great Lakes, once-a-year inspections are made as provided under the Great Lakes Treaty. On voluntarily equipped vessels, inspeetions can be made only infrequently; inspec tions of ships of convention countries are made only upon request, while those of nonconvention countries are not inspected. During 1955 and 1956 ship inspections were as follows: United States Ships , Foreign Ships __________________1_1_'''_~I19M - 19.56 47,959 163 122 SO,9S2~.. _ 495 __ . .. . __ . __ ._. 453 _. . CompukOTU ship stations Number of stat.iOllS . . 1,635 Number of inspections 1________________________________________ I, i08 Number of deficiency notices served .. 1,089 Number of violations corrected during inspections 1____________ 2,149 Voluntary ship 8tatiom Number of stations. __ . . _ Number of inspections __ . . _. . . _ Number of deficiency notices served . . _ t Not including "call backs" to verify correction of vIolations. I For which deficiency notices were not served. 1,653 1,697 1,127 2,481 o 381 191 330 o 315 109 375 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 139 Portabl~radiotelegraph lifeboat equipments totaling 1,390 were inspected at the request of the Coast Guard in order to facilitate the certification of this equipment for issuance of safety equipment certificates. Issuance of Great Lakes agreement radiotelephony certificates, which began on November 13, 1954, continues. During 1955 a total of 95 were issued, which increased to 457 in 1956. The issuance of safety radiotelegraphy and safety radiotelephony certificates commenced on December 13, 1954, in accordance with provisions of the International Convention for the Safety of Life at Sea. These certificates had formerly been issued by the United States Coast Guard based upon inspection made by the Commission. During fiscal 1956 about 1,100 safety radiotelegraphy certificates were issued to United States ocean-going ships as compared with 1,186 in 1955. The number of such certificates issued to foreign vessels during 1956 and 1955 was 285 and 315, respectively. Forty safety radiotelephony certificates were issued in 1956 as compared with 11 during 1955. Other Radio Station Inspections During fiscal 1956 there were 7,073 inspections of radio stations in other services while 4,202 such inspections were made in 1955. Dis crepancies of a technical nature totaling 1,444 were found in 1956, as compared with 722 in 1955. INTERIM SHIP STATION LICENSES The Commission continues to assist small vessel owners in obtaining radio operating authorizations promptly. This is accomplished through field issuance of "90 day" interim ship radiotelephone station licenses and authorizations (to those who must sail promptly) without the delay which would otherwise be occasioned by awaiting the regular full-term radio operating authorization or full-term license from the Washington office. In making these interim requests, it is necessary that the applicant also apply for the regular (new or modified) ship station license. A total of 5,292 such interim ship radiotelephone licenses were issued in the field during fiscal i956, or 1,606 more than in 1955. INVESTIGATIONS Investigation of Unlicensed Stations During the year 147 unlicensed stations were located by mobile investigative units, an increase of 42 over those located in 1955. A hoax distress transmission responsible for an extensive but futile search by air and sea for a vessel purportedly afire and sinking off the 140 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Atlantic Coast resulted in an undetermined term of up to 6 years in a Federal correctional institution for one participant and 2 years probation for his younger associate. Willful operation of an unlicensed station in amateur radio bands resulted in indictment of a 37-year-old operator near Los Angeles and a $50 fine. A false statement in an application for a radio operator license, affirming that he was a citizen, led to an alien receiving a suspended sentence of 3 years, being placed on probation, and facing possible deportation. An illegal station signing as the "Phantom of Fairlawn" was quickly traced to Fairlawn, N. J., where the culprit was found to be a man who apparently had been imbibing too freely. Perhaps the most widespread instance of deliberate interference occurring during the year involved the jamming of reception at an unattended TV relay point on a mountaintop in Idaho, thus prevent ing a planned TV rebroadcast throughout the State on the first day of the world series baseball game. The potential hazard to safety and other radio communications which can resnlt from operation of unlicensed stations was illustrated when an unlicensed TV "booster" station in the mountainous tVest was found also to be "accidentally" picking up an aviation radio navigation (fan marker) signal and retransmitting it on another frequency. COMMERCIAL RADIO OPERATORS Genera' Except for those operated by the Federal Government, all radio stations in the United States and territories are required, in general, to be operated by citizens holding Commission issued operator licenses. Examination is required for the higher grade licenses, but certain operating "permits" are obtainable upon a simple showing by the applicant that he is properly qualified. The grade of each operator license testifies to the skill and qualifica tions demonstrated by the possessor. License-holding requirements are determined by the class of station, type of operation, or complexity of the equipment to be operated, as well as the degree to which the station contributes to the promotion of safety of life and property. Normal duties of radio operators are divers;fied, ranging from manipulation of high-speed sending equipment at certain types of powerful stations in the international services to the operation of shipboard stations installed and continuously manned while the vessel is at sea. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 141 Radio operators must, in general, be familiar with all aspects of radio station operation through training and experience since they are often the only available persons with radio knowledge and ability, as for example on certain vessels or at outlying stations. Frequently their duties include the keeping of station records and the accomplish ment of technical maintenance or even construction duties. In all cases the qualifications which the operator must possess are taken into account in the examination questions for that class of operator license. Operator requirements for certain semiautomatic or pushbutton type of station transmitters have been waived by the Commission. Rule Changes The Commission amended its rules to require operators of aircraft radiotelephone stations with antenna powers ranging from 50 through 250 watts to hold radiotelephone third class operator permits. This permit is 1 grade higher than the operator permit heretofore held and is considered necessary in order to meet treaty requirements (Intenational Radio Regulations, Atlantic City, 1947). This amend ment was intended to become effective August 1, 1956; however, petitions for rehearing were filed by aviation industry groups and these were under consideration at the end of the year. The Commission instituted further rule-making proceedings looking toward a requirement of third-class operator permits for ship radio telephone stations with antenna power not exceeding 250 watts. This proposal would discontinue the authority under the restricted radio telephone operator permit with respect to ship stations. It goes beyond the minimum operator license requirements of treaty. It was considered necessary to deal with chaotic conditions in the medium frequency ship radiotelephone channels resulting from widespread disregard of established operating procedures and regulations. This proposal was still pending. The Commission amended its rules so that third-class radiotelegraph operators applying for a radiotelegraph second-class operator license during the first year of the third-class license ternl are given credit for and need not repeat the code test. The Commission also amended its commercial radio operator rules to place an age limit on applicants for the restricted radiotelephone operator permit. This grade of operator license is issued upon a signed declaration by the applicant, without requiring proof of qualifications. The amendment requires that applicants be at least 14 years of age. The Commission still has under consideration the question of denying radio operator licenses to members of subversive groups, following oral argument held March 7, 1955, on this proposal. 142 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Operator Suspensions and Denials The Commission took remedial action against 10 commercial radio operators through suspension of their liceuses. In 2 of these cases, hearings were requested and suspensions were meanwhile held in abeyance. Five commercial radio operator applications were dismissed without prejudice for failure of the applicants to furnish information requested by the Commission. Renewals requested by three operators have not been granted pending inquiry into their present or past affiliations. One operator had the issuance of his high-grade license deferred pending an investigation into his prior conduct and misrepresentation of the operating authority which he then possessed. Another operator's permit was declared void on the grounds that he had obtained this permit by falsely stating that he was a citizen. Operator Examinations Radio-operator candidates are offered examinations at points throughout the United States and territories at regular intervals, based on the extent of the demand in each case. On this basis, quar terly, semiannual or annual examinations are offered at various places, while at 30 FCC offices examinations are available daily, biweekly, or upon special arrangement with the engineer in charge. The dates on which these examinations are held at the respective cities are published semiannually in a Radio Operator Examination Schedule available at any of the district engineering field offices listed in the appendix to this report. In addition to commercial-type radio operator examinations, ama teur examinations of the general and extra classes are also offered at the several examining points. Radiotelephone operator examinations continue to be given on hoard Great Lakes vessels, as well as on coastwise or other oceangoing vessels from 500 to 1,600 gross tons. This examination is nontechnical, is written, and based on practice, procedure, and regulations applicable to radiotelephone communication in the mobile service. There was an increase of 13.8 percent in the numoor of amateur operator examinations in 1956, when there were 52,657 examinations as compared with 46,238 in 1955. Commercial Radio Operator Authorizations Out of 265,968 applications in 1956, 218,768 commercial radio operator authorizations were issued. This constituted an increase of 16.2 percent over the 188,504 figure for 1955. Thus, outstanding commercial operator licenses of all classes total more than 1,113,158 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 143 at the end of the year, or more than 126,795 in excess of those at the close of 1955. Comparative figures by grades of licenses follow: Class of lIcense June 80, 1955 June 30, 1956 Net Increase or(~ecrcase) Tot8L~.~• . __~_._ Radiotelegraph: 1st c1ass ._._______________________________ 6,183 6,756 573 2d class . . • . __ . ._____ 10,083 10,795 712 3d class .____________________________ 2,063 2,142 79 Temporary ltmfted, 2d class 1__ • ._____________ 635 482 (153) RadIotelephone: 1st class_______________________________________ 53,415 S9, 155 5,740 2d c1ass ••__~._. • • •• ._____ 32,333 34,011 1,678 3d class ••• 25,214 'n,604 2.290 Restricted permits J~•• _. __ •._._._.~__ ._. ._.._~.~.795, OIl 927,302 132,291 Aircraft a.uthorizations t __ • ___ _~._. •_~.••••••_1__.:-'1::,:=426:::+_---"::',-"OI.:-I_I__:...(I:...~.:-41c::') 986,363 I, 113, 158 126,795 I ThIs class of license discontinued. J Restricted pannU.s Issued for UfoUrne of operator. FIELD ENGINEERING PROJECTS AND FACILITIES This has been a year of progress in improving and modernizing field engineering enforcement and monitoring facilities. The first mobile TV monitoring unit, which was constructed at the FCC laboratory, commenced regular operation in September 1955. This nnit contains various specialized precision measnring and analy sis instruments for measuring the technical characteristics of TV broadcast transmissions to determine compliance with engineering standards. Major equipment or operational deficiences which resulted in degradation of the pictnre or sound transmissions were noted in about two-thirds of the TV stations checked with the new mobile unit. Remedial action by the stations resulted in a marked improve ment in performance. A second mobile TV monitoring unit is now be ing completed at the laboratory and will be placed in service during the coming year. Monitoring of the spectrum in the microwave regions above 1000 megacycles cannot be effectively accomplished at fixed monitoring stations because of the high rate of attenuation of microwave signals and becanse of the highly directional antennas used by stations operat ing on these frequencies. To provide microwave monitoring facilities to intercept and locate possible clandestine stations or sources of interference to commnnication, navigation and other services operat ing in the microwave regions, microwave mobile monitoring and frequency-measuring installations were made in two of the engineer ing test cars. These vehicles are equipped with receivers, special bigh-gain antennas and frequency-measuring instruments covering frequencies from 1000 to 11750 megacycles. A new high-resolution type of spectrum analyzer was placed in service at three monitoring stations. This instrument, as modified 144 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION by the Commission's laboratory, permits a determination of the characteristics of and the bandwidth occupied by many classes of emissions which could not be accomplished with the previously avail able spectrum analyzers. The Commission now has the technical facilities for determination of spectrum occupancy, a necessary func tion for maximum utilization of the available spectrum and for assist ing industry and Government in the solution of interference problems. Continued progress was made in replacing the old long-range direction finders with new high-speed models having symmetrical all metal structures. The new remotely controlled high-speed drive sys tem, which was designed by the Commission at its Powder Springs primary monitoring station, provides a means of obtaining more rapid bearing fixes than was possible with earlier remote control devices. The new direction finders are now in operation at the An chorage, Ambrose, and Fort Lauderdale monitoring stations, and construction of Seven additional units is under way. The need for improved receiving facilities in the VHF ranges, and particularly in the frequency bands assigned for mobile radiotele phone operations, was met during the year by purchase of new, more selective receivers for use by the field engineers in solving interference problems and for other investigative activities requiring the use of a selective VHF receiver. Progress was made in improving the precision frequency-measuring facilities at the monitoring stations by installation of more accurate frequency standards at three stations and by utilization of electronic counter-measuring techniques. Electronic counters have proven to be particularly useful in providing more accurate and rapid frequency measurements of frequency-modulated signals and certain other emis sions where the carrier frequency varies with modulation. An average of 20 continuous signal field-intensity recorders were in operation at certain monitoring stations to obtain radio propagation data required by the Commission in its allocations and rule-making activities. Most of the recorders were operated in the VHF and UHF ranges. Mobile field-intensity surveys were also made to provide cov erage data and information concerning the interference potentialities of various classes of stations and electronic devices. ANTENNA OBSTRUCTION MARKING In administering part 17 of the rules concerning the construction, marking, and lighting of antenna towers and their supporting struc tures, the criteria set forth in subpart B are applied to all proposals for new or modified antenna structures. Proposals that exceed these criteria are referred for special aeronautical study to appropriate Regional Airspace Subcommittees (ASP) of the Air Coordinating REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 145 Committee (ACC) created by Executive order to examine and make recommendation on aviation matters affecting~Federaldepartments. The antenna proposals that conform to the criteria are approved by the Commission which prescribes obstruction markings pursuant to subpart C of part 17. The number of applications requiring antenna processing reached a record total during fiscal 1956 of 13,294, an increase of 3,438 over fiscal 1955. Of this number, antenna proposals for safety and special radio services inceased from 8,065 to over 11,000. The number of antenna proposals processed by the Commission for all radio services during fiscal 1956 totaled 13,089, an increase above fiscal 1955 of over 325 applications per month, of which approximately 300 were for safety and special services. The number of antenna proposals requir ing special aeronautical study by the FCC was more than double the number during fiscal 1955. Referrals of broadcast and common carrier proposals increl'sed approximately in proportion to the in crease in applications processed for each service, while referrals of safety and special radio services proposals increased from 211 to 530. lt is significant that a high percentage of the latter antenna proposals were under 170 feet in height. Section 17.14 of the rules, which provides that certain antenna structures are exempt from special aeronautical study, was amended by the Commission to exclude from that exemption antenna additions of 20 feet or less to existing antenna structures. Pursuant to recommendations of Joint Industry-Government Tall Structure Committee (JIGTSC) which were approved by the ACC on October 18, 1955, the Commission proposed rule making to amend part 17 to require applicants proposing transmitting towers in excess of 500 feet in height to specify antenna sites within areas suitable for grouping towers (designated "antenna farm areas"), on existing struc tures, or to demonstrate why their antennas cannot be so located. Changes in criteria contained in part 17 to achieve these objectives are under study. During the year, WFAA-TV and KRLD-TV, each with an overall antenna height of 1,521 feet above ground, began operations from their combined "candelabra type" tower at Dallas, Tex. The Com mission held a hearing on the Deep South Broadcasting Co., Selma, Ala., antenna proposal for 1,993 feet. Decision was still pending. During the year, the ACC approved a program of operational and field evaluation of special lighting and marking techniques for tall towers developed by its Subcommittee on Aerodromes, Air Routes,an~ Ground Aids. Pursuant to recommendations of the ACC, the Com mission has prescribed experimental marking for several new tall towers selected for their height, terrain background and prevailing 146 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION visibility conditions. Evaluations made by observations taken in controlled tests in the areas of the experimental towers will determine the nature and degree of increments in detectability and conspicuity of the towers resulting from the new marking and lighting systems. Statistics of antenna construction proposals processed duriug the fiscal year follow: Pending Received I Cleared Pending July 1955 InASB byASB June 30,19.56 " 85l 856 4() 1 94 94 1 20 6'" 668 26 0 0 0 0 0 12 12 0 66 1,630 1,630 66 8<16 11,089 10,919 1,036 14 575 54() 4. 946 13,294 13,089 1,151 Grand totaL • • _ Broodcast: AM. ..•. _ FM ..•__._ •••~._.•__._+~__, _ TV .~_ InternationaL. _ ExperimentaL~__ •• ·_·· • I----+---''_:-I-----c-I---- TotaL _. . •__ ._. • _ Safety and special radio services. • _ Oommon carrier ._ 1--..,-, Services The number of proposals referred to the Regional Airspace Subcom mittees for special aerouautical study follow: ServIces Broadcast: AM•• •~• _ FM • .. TV~_ Inrernatlonal••• •~_ Experimental • _ TotaL •__ •. •__ •_~_._ Sarety and special radio services • _ Common carrier _.. .._ _.._. __ ...••_ Orand totaL.._...__ . . __ ..__ . . __ PendJngat Sent to I Reoolved Pending at airspace airspace rrom airspaCll airspace July I, 1955 during year during year June 30,1956 28 "" 186 36 0 , 7 1 14 115 112 17 0 0 0 0 0 0 0 0 42 817 '()6 54 28 630 '54 104 4 47 42 , 74 '94 802 '66 More than 40 TV broadcast station towers 1,000 feet or higher are now in use. Research arul Laboratory TECHNICAL RESEARCH General Basic engineering problems which occupy the Commission include the application of radio propagation theory and data to allocation and assignment planning, and development of uniform teclmical standards for transmitting systems as well as nontransmitting electrical and electronic equipment capable of interfering with radio communica tion. Also, under its obligation to study new uses for radio, th" Com mission encourages experimentation and, itself, must keep abreast of technical developments and improvements in both radio and wire transmission. Government-Industry Cooperation .DeaHng as it does with technical matters affecting the entire radio field, the Commission necessarily devoted much time to conferences with representatives of industry and engineering IlJ1d scientific associa tions, besides being represented on many Federal and industry-Gov ernment working groups. Through such contacts, the Commission is kept informed of technical developments. Many problems can frequently be resolved through such cooperation. Typical of these groups are the Interdepartmental Council on Radio Propagation of the Central Radio Propagation Laboratory (CPRL), the Radio Propagation Advisory Committee (RPAC), Committee C63 of the American Standards Association (ASA) , the various com mittees of the International Scientific Radio Union (URSI) and the International Radio Consultative Committee (CCIR), the In stitute of Radio Engineers (IRE), the Radio Technical Commission for Marine Services (RTCM), the Radio Technical Commission for Aeronautics (RTCA), the American Institute of Electrical Engineers (AlEE), the Radio-Electronics-Television Manufacturers Associa tion (RETMA), and the National Association of Radio and Television Broadcasters (NARTB). VHF and UHF PropagGtion Research During theyear an appreciable amount of new information onVHF and UHF propagation was developed from field strength recordings. 147 148 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION This is largely due to the increased transmitter powers and the higher <1ntenna efficiencies of TV stations which result in the radiation of stronger fields making it possible to obtain more extensive and more accurate measurements of field strength. As a result, new VHF field strength curves have been prepared. These curves, after coordination with the other United States members of the CCIR Study Group will be presented by the United States delegation at the CCIR plenary Ineeting in 'Vnrsaw. The Commission also carried out an extensive study of the dis crimination to be expected from cross polarization of TV signals; that is, the discrimination of a vertical antenna to TV signals that aro normally horizontally polarized. The results were used by the Com mission in severol service studies. A special study was made of VHF propagation as applied to marine communications in the Great Lakes region. :Many reports and memo randa were prepared applying VIII" and UHF propagation infor mation to allocation and other problems of the various radio and TV services. The Commission surpervised a project under contract with the Army Signal Corps and prepared quarterly reports on the results ob tained. This information is also nseful to the work of the Commis sion. Arrangements have been completed and preliminary work started on a new contract in which the COffilnission is furnishing engineering assistance in a Signal Corps project involving a study of spectrum utilization. AM Broadcast Propagation Research The overriding importance of TV propagation studies required a cutback in standard broadcast propagation research. However, a study was made of the effective coverage of AM broadcast stations, the results of which were useful to the CONELRAD program and the Commission's broadcastwork. Sunspot Cycle Recording The SUllSJX>t cyele reeording program has now been in operation for nearly two ll-year sunspot cycles. This is believed to be the only set of measurements in the world covering as much as a complete sun spot cycle. Originally, recordings in this project were made over several dozen paths. During fiscal 1956 recordings of field strength of AM broadcast stations were made at three FCC monitoring stations using 6 different paths. The pressure of more urgent work in connection with VHF and UHF propagation research prevented ipunediate analysis of these records. It is expected to continue re cording the same 6 paths through the sunspot maximum during 1957. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 149 Technical Standards Work continued on improving the technical standards through out the Commission's rules. Particular emphasis was given to re duction of extraneous emissions, improved bandwidth specifications and reduced spectrum occnpancy by means of single sideband tech niques or by reduction of FM frequency deviation. Proposed rule making was initiated to require use of single sideband for radio telephony below 25 megacycles and to specify technical staudards for such operation. The utilization of single sideband would reduce by a factor of one-half the spectrum space occupied by present double sideband emissions, in addition to other advantages which .wonld ac crue, including improved cOffilllunica.tion efficiency and lower cost. Consideration w.ns given to comnlents filed in the narrow hand ru]e making proceeding for the land mobile services (Docket 11253) look ing toward final rules and teclmical standards for split-channel oper ations in these services. The specification of spurious emissions in the vicinity of the assigned frequency is being examined, pursuant to rule-making proceeding in Docket 11654, for all of the radio services. This rule making resulted from fundamental limitations on the degree of spurious emission sup pression which can be achieved in the vicinity of the assigned fre quency, which became apparent in connection with measurements of spurious emissions for type acceptance purposes. The new class of translator TV broadcast statiOJ1s, which was pro vided for during the year, required suitable technical standal'ds Which, while meeting the objective of economy for this class of station, will assure satisfactory TV operation and will adequately protect other services from interference. Proposed technical standards for the aviation services were issued (Docket IHi19), including type acceptance requirements. Final rules are being drafted. Particular attention is being given to formulation of technical stand ards for services operating above aoo megacycles, including private microwave stations and land mobile stations, which are presently authorized on a developmental basis pending promulgation of tech nical standards. The necessity for minimizing interference between stations in order to obtain maximum spectrum ntilization leads to consideration of various technical expedients for this purpose. Studies are being made of polarization discrimination in the TV broadcast service to deter mine quantitatively the improvement which might be obtained. Im proved frequency stabilization of transmitters may lead to reduction of interference by adjacent stations and cochannel stations. In the latter case, the advantages of "frequency offset" techniques are being 404807--56----11 150 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION studied with regard to possible refinements useful in TV broadcasting and the use of such techniques in the land mobile service. Type Acceptance of Transmitters The Commission's activity with regard to type acceptance of trans mitters increased during the year. Type acceptance requirements which became effective June 30, 1955, for AM, FM, and TV broadcast transmitters were followed by issuance during the year of parts A and B of the Radio Equipment List, for TV and aural broadcast equip ment, respectively. Part A consists of 3 entries (1 yet unpublished), and part B, including the 3 supplements issued during the year, com prises 259 entries. The issue of part C (for radio services other than broadcast) on July 1, 1955, was supplemented September 29,1955. A complete reprint of part C was issued January 12, 1956, and this with the entries added by the 2 subsequent supplements consists of 1,401 entries compared with 1,322 last year. Additional type acceptance rules were adopted for ship radiotele phone transmitters, to bring those below 30 megacycles into the type acceptance program, which previously has applied only to those above 30 megacycles. Rules for type acceptance in the Domestic Public Radio Services were adopted, becoming effective in September 1956. Requirements for field intensity measurements of spurious emissions in connection with type acceptance were postponed until December 1956 to allow additional time for development of adequate measure ment methods. Of the 14 type acceptance applications pending at the beginning of the year and 106 subsequently received, 65 were granted and 14 dis missed. Three were removed from pending status because of the ap plicants' failure to pursue them and 9 were removed because they were superseded by applications later granted. There are now pend ing 29 applications for type acceptance. Technical details concerning 180 equipments were filed during the year for applicatiou reference purposes. Experimental Radio Services The Experimental Radio Services, covered by part 5 of the rules, are designed to "provide for the experimental uses of frequencies" as required by the Communications Act. These rules cover the use of radio in connection with basic research in radio such as investigations of propagation, exploration of the various ionized layers in the ionosphere, studies of tropospheric effects, research in new circuitry, and modulation techniques. The rules also enable experimentation in connection with the development of new radio services as well as the development of new techniques and pro cedures in existing services. Many of these investigations, both re- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 151 search and developmental, are on behalf of Federal agencies, chiefly the Department of Defense. Experimental stations operated by manufacturers and develop mental laboratories are engaged primarily in development of new radio and electronic techniques. Narrow band, split-channel com munication is receiving increased attention. New aids to navigation are being developed, including high definition radar sets as well as lightweight radar equipments for small craft. Experiments in the development and application of industrial TV are being pushed rapidly. Broad band, multiple-channel microwave experimentation as well as ionospheric scatter tests are receiving increasing attention from both civilian and military interests. Hundreds of experimental stations are operated by persons engaged in the development or testing of radio equipment under contractual agreements with Govermnent agencies. Most of these contracts are with the Department of Defense and are classified. However, the techniques developed by these investigations, as well as any technical knowledge that is acquired, eventually show up as improvements in civilian radio facilities. The most difficult problem involved in the administration of the experimental radio services lies in the finding of frequencies which can be used for experimentation. Previous to the implementation of the Atlantic City agreement, specific frequencies were reserved for experimental operations. Now that practically all usable frequency bands in the spectrum have been allocated to the regular radio serv ices it is necessary to borrow frequencies from these regular services in order to permit experimentation. The difficulties involved in find ing usuable frequencies for this purpose are compelling the Commis sion to restudy its allocation policy and the frequency assigrunent procedures relative to experimental operations. Revision of the experimental rules and of the application forms used in this service are long past due. However, because of the ur gency of pending applications and the present limited staff, little or no long-range planning can be carried on. Statistics covering the experimental radio services for the fiscal years 1952-1956 follow: Fiscal year ending- June 30,1952. . _ Jun630,1953 ._____ .. _ June 30,1954 ._._._. . _ June 30,1955____________ _ _ JWle 30, 1956 . _ Special tem- poraryauth· Stations Applications orlzatlons licensed received granted 140 3119 915 168 444 1,056 300 "" 976 ,,. 626 1,447 643 71. 1,507 152 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION A less well known function under the experimental service is the provision for making field surveys in order to determine what type of a radio installation is required to meet the communication needs of a prospective customer. This function also provides for the use of radio for technical demonstrations of equipment. A frequency for a surveyor a demonstration is assigned for a limited period of time and for use at a specific location. The demand for special temporary authorizations to conduct field surveys and to demonstrate equipment has increased 360 percent in 4 years. Since both the applications and the resulting authoriza tions are handled in the form of telegrams, there is constant pressure to expedite these cases. Because most cases involve the clearance of frequencies to prevent interference, simplified procedures are impractical. Practically all applications for experimental authorizations are ac companied with, and followed up by, insistent demands for expedi tious handling. While the rapid processing of applications is highly desirable, the increasing workload and the current limits on personnel make quicker action impossible. During the past year the backlog of work has increaflBd and the average application processing delay is from 8 to 10 weeks. LABORATORY General The Commission's laboratory near Laurel, Md., makes engineering studies of systems and equipment, both as to the service that may be rendered and the interference that may result. Besides studies of communications equipment, the laboratory investigates the interfm' ence caused by other electronic and electrical equipment. Calibrations and adjustments are made to various engineering meas urement instruments and equipments used by the Commission's field engineering and monitoring installations. In addition, special moni toring equipment is developed at the laboratory. Type Approval Testing In the type approval procedure the manufacturer of certain types of equipment submits a sample unit to the laboratory for tests, and if satisfactory the unit is approved. 'When an applicant files for license he then only needs to indicate that he proposes to use a type approved transmitter and need not furnish complete technical details, and the Commission does not have to examine this technical data in individual cases. Some equipments not normally licensed, such as diathermy ma chines, industrial heating equipment, ultrasonic apparatus, epilators, radio-frequency-excited welders and certain electric signs, are also REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 153 tested and type approved at the laboratory. One of these types, the ultrasonic medical unit, generally operates in the AM broadcast band. Over 50 of these machines were submitted for test during fiscal 1956 and about 25 were approved, mostly after modifications. Some of these modifications reduced the interference potentialities materially. Television Propagation During the year the laboratory conducted a pilot-scale project to determine. whether home TV receiver installations are sufficiently in sensitive to vertically polarized transmissions to permit further spectrum economy through the addition of some vertically polarized TV station assignments. ,Vhile the results are not extensive enough for final conclusions, indications are that only a lnodest discrimina tion against the cross-polarized transmission is available. In furtherance of the same aim, the laboratory is currently engaged in studies to determine whether TV stations may be spaced at smaller distances apart through the use of precise control of the operating frequencies. Cooperation With Other Groups The laboratory has participated in the work of a number of engi neering groups working toward the wider and better use of radio and the reduction of interference. It participated extensively durillg the past year in the IRE com mittee activities which led to the standardization of methods for measurement of TV receiver oscillator radiations now extensively employed by manufacturers. The laboratory also assisted the Coast Guard in the evaluation of several transmitting antennas for use in the latter's land-mobile opera tions. Tests of a line noise filter device were made at the request of the Post Office Department. ( Page 154 in the original document is intentionally blank ] Frequency Allocation ROUTING INVISIBLE TRAFFIC Some knowledge of radio frequencies and their allocation is a neces sary background for understanding the details of various types of radio operation and regulation which are set forth in other chapters. Allocation of radio frequencies is a very complex subject. In brief, it involves designating portions of the radio spectrum for the use of particular radio services and assigning specific frequencies within those segments for the operation of individual radio stations. In some respects, frequency allocation cun be likened to building land highways. However, the planning und development of invisi ble communication lanes is much more complicated than road build ing. There is still a wide choice of land highway routes but radio paths are limited in number and many are congested. And, unlike land traffic, radio transmissions can not be routed by underpasses and overpasses. Neither can they obey traffic signals to allow other traffic to pass, or to stop at any given point. For radio waves spread out in all directions, crossing State lines and international boundaries. As land traffic increases, highways are widened and alternate routes provided when necessary. Likewise, radio highways can handle only a certain amount of traffic before additional lanes are needed and more exacting operating controls invoked. RADIO PATHS DIFFER However, not all radio paths are the same width. Some types of transmissions require wider lanes than others. For example, an FM broadcast needs a channel 20 times wider than that used by an AM station, while a TV station's combination of picture and sound re quires about 200 times the spectrum space occupied by an AM program. In the nonbroadcast field, too, channel widths differ according to the nature and requirements of the particular services. Furthermore, not all radio frequencies behave alike. Also, those in the various portions of the spectrum have different characteristics. For example, 1000 kilocycles is suitable for AM broadcasting but not for FM or TV broadcasting. Similarly, 415 kilocycles is good for ship navigation by direction finding but not for ship navigation by 155 156 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION radar. Consequently, each radio band has particular qualities which must be taken into account in determining the type of service which can best operate on it. Use of frequency bands, especially in the upper reaches of the radio spectrum, is further determined by the development and availability of apparatus to operate there. Also, there are certain limitations in any radio system which govern its use. It goes without saying that mobile and portable transmitters require frequencies of limited range. On the other hand, transmis sions which cross the seas need frequencies with long-range charac teristics. RADIO BANDS, CHANNELS, AND FREQUENCIES It is customary to speak of the spectrum space occupied by each radio service as n "band", meaning a group of frequencies allocated for the use or a particular service. These bands are in turn broken down into "channels", which are the traffic lanes assigned for the transmissions of individual stations in that service. 'Within these channels each station operates on a designated "fre quency". This means that it transmits its electrical impulses at so many"cycles'~(vibrations also called "·waves") a second. These emis sions are nleasured in "kilocycles" and "megacycles". A kilocycle denotes a thousand of these waves a second, while a megacycle is a short way of indicating 1000 kilocycles. Radio waves of certain fre quencies travel great distances, others have shorter range. The lowest frequency nsefnl for radio communication is 10000 cycles (10 kilocycles) per second. This, then, is the bottom of the useful radio spectrum. The latter embraces that part of the electromag netic spectrmn which can be used for communication purposes. It i3 arranged progressively according to the respective wave lengths grad uating" upwards from "long waves" to "shortwaves~'. For convenience, the radio speetrurll below 30kilo(~yclesis known as the VLF (very-low frequency) range; from 30 to 300 kilocycles, LF (low frequency) ; from 300 kilocycles to 3 megacycles, MF (me dium frequency) ; 3 to 30 megacycles, HF (high frequeney) ; 30 to 300 megacycles, VHF (very high frequency); 300 to 3000 megacycles, UHF (ultra high frequency); 3000 to 30000 megacycles, SHF (super high frequency) ; and 30000 to 300000 megacycles, EHF (extremely high frequency). RADIO SPECTRUM Before 'World 'War II, the usable portion of the radio spectrum was limited to between 10 kilocycles and 300 megacycles. Electronic developments spurred by that conflict nULde it possible to extend the commercially useful spectrum to 30000 megacycles. REPom' OF THE FEDERAL COMMUNICATIONS COMMISSION 157 For layman purposes, the radio spectrum may be compared to a long vertical ruler with inches 01' fractions of inches marking off, but in il'l'egular fashion, the relative bands used by the different radio serVIces. That portion between 10 and 040 kilocycles is employed largely by radiotelegraph stations and radio beacons for ships and aircraft. The sectiou between f>4(J aud lli(JO kilocycles is the familiar AM broadcast baud. Between 1600 kilocye1es ana 25 megacycles are bands for long dist~lnceradiotelegraph and radiotelephone communication, for ships at sea and planes in the air, find for international broadcasting. F~Iand TV hroadellst, as well as various safety and special serv ices, are individually provided for in the segment between 25 and 900 megacycles. Above that, extending to aoooo megacye1es, are bands for radio navigation, common carrier, mobile, and a host of other specialized radio services. Spectrum spaee beyond the latter figure is employed mainly for ex perimental an(L developmental work in connection with prospective new or improved services and equipment. It is difficult to spell out an exact spectrum chart because various servi('es~~l1lehas (3-overnment., amateur, etc.-have scattered al lorations, and many bands must be shared by different services. In effect, the spectrumchal~tlHay be likened to a gigantic club sand wieh, with the diH'erent1:t~yel'Hlind overlapping fillers representing an assortment of services. It is interesting to note that the space o('.cupied by AJf broadcasting is only one thirty-thousandth of the ent,irc known radio spectrnm. III addition to hands for broadcasting, there are bands foJ' aviation, marine, poliee, fire, industrial, land transportatioll, amateur, citizens, common carrier, experimental and other uses, Also, there are por tions of the radio spectrum in which noncommunications equiplnent such as medical, industrial and other eleetronic devices----can re lease their excess energy withont cftusing interferencc to radio chan nels used for communication purposes. ALLOCATION CONSIDERATIONS It would be "-llsteful and chaoti{' to operate a broadcast station on CIlC fn_'fluency and, say, a police station and a ship station 011 adjacent frequencies. Ther£' Illllst he l'l'spcctive and appropriate han(ls offre~ quencies for the some 6t; clill'erent rlulio selTices with which the Fecl {oral ('omnlllllii'Htions Commission now has to deal, and within these !):mds nssignlllents Innst lle rnade for the opel'Htion of more than 1.2 million fixed :llld mobile transmitters. 158 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Hence a fundamental task of the Commission is to allocate the radio spectrum to the various radio services and to write the rules and regu lations which govern their operation. In the early days of radio, a few kilocycles one way or another was of little importance. Later, with increasing use of the spectrum, the problem of interference be tween stations grew proportionately, and it became necessary to define more precise channel boundaries, engineering standards and other requirements. Since maximum utilization of the radio spectrum depends upon proper allocation of working bands and upon proper use of the fre quencies assigned therein, an essential function of the Commission is to study the behavior of radio waves, to laboratory test apparatus and performance, and to monitor the technical quality of emissions. RADIO HOUSING SHORTAGE The primary obstacle to expanded radio use is the scarcity or non availability of channels for certain fast-growing services, particularly in the nonbroadcast field. Technical developments have made it pos sible to move further "upstairs" in spectrum occupancy but, at the same time, the number of industrial and business firms desiring to em ploy radio has expanded even more rapidly. The result is that there is a dearth of frequencies for certain new or expanding services. In consequence, some frequency rationing is required in order to . provide the maximum benefit to the greatest number of people. Basi cally, preference in the use of radio is given those services on which the safety of life and property depends, followed by those which serve the public in other ways. Some increased use of nonbroadcast radio channels in short supply is obtained by increasing the amount of frequency sharing in an area. There is prospect of further relief through so-called "split channel", "single side-band", "tropospheric scatter", and other technical re finements. Splitting channels and using a single side band would permit more stations to operate in closer proximity.Tr~pospheric scatter concerns over-the-horizon communication, to the inclusion of television, on frequencies formerly considered limited to line-of-sight transmission. The utilization of radio by industry has, in particular, exceeded the most optimistic expectations of 10 years ago. Cooperative effort, in cluding a higher degree of efficiency in the use of frequencies, is re quired to open the door to new groups as well as to take care of the mushrooming of existing services. Tn addition to spectrum space allocated to, but little used by, some services, there are many frequencies which bear heavy traffic in some areas but go begging elsewhere. Means must be found to put these REPORT OF THE FEDERAL COMMUNICATIOKS COMMISSION 159 fanow radio lanes to work. But it must be done without discommod ing services unduly, and without causing interference complications. Any extensive rerouting of traffic over the invisible radio paths re quires complex planning and execution. A mass of facts and figures relating to the use of the radio spectrum must be studied, plotted and applied. In some respects the work resembles a giant checkerboard. For example, changing the frequency of one station may mean moving it to another band, and one in the latter iJand being moved to still another, and so on until a chain reaction of shifts is completed in order to accommodate the first move without inviting interference headaches. In the reverse order, the shift of a frequency can cause a reshuftling of many other channels. . INTERNATIONAL ASPECTS As the radio spectrum becomes more crowded the interference prob lem grows in seriousness. It can come not only from domestic radio stations (not to mention the increasing number of electronic gadgets), but also from foreign radio stations. That is why mutual radio operating arrangements between nations are necessary. Bands allocated for radiotelephone and radiotelegraph must be used by such stations of all nations, and the ship and aeronautical bands must likewise be shared, and so must the broadcast bands. A French plane over New York must be abie to talk to the local airfielcl on the same frequency that an American plane over Paris communi4 cates with the airfield there. By the same token, merchant ships the world over must be able to communicate on frequencies common to ffiaTIne use. The international aspect of radio has developed to such an extent that almost no major frequency allocation can be made without con sidering worldwide usage. In consequence, the primary allocation of frequency bands is now determined by international treaty and other agreement, and assignment of individual channels within those bands is made by the member nations accordingly. ALLOCATIONS AND THE FCC Constant study by the Commission of the radio spectrum is required so that domestic allocations and use of frequencies keep pace with advancements in electronics and shifting public demand. Continual changes and readjustments are the price of progress. Since it is not possible to re-examine in detail each year all uses of radio in all parts of the spectrum, current FCC scrutiny is of the YHF ancllower UHF parts (roughly 25-1000 megacycles), where TY nnll land mobile, among other fast growing services, are located. 160 REPORT OF THE FEDERAL CmI:\IUXICATIONS COMMISSION l\Ieallwhile, the worldwide etf'Ol't to complete the tens of thousands of chan,ges in frequency assig"nmellts lleCeSSHl'sporL ::\luine ~pokl1llf>,'''ash. "'Twinl<~alls.Idllho. Fort Landerdale, Fla. Ambrose, Tex. )lnskogee, Okla. Anchorage, Alaska. Fairbanks, Alaska. COMMON CARRIER BUREAU New York, K. Y., 90 Churdl ::;t. St. Louis, 1\10., 81;:-; Olive ::;;t. San~~rancisco,Calif., 11'10~ew)'iontgomel'Y St. PUBLICATIONS Following is R list of the Commission's printed publications. They are not distributed by the Commission but may be purchased direct from the. Superintendent of Documents, \Vashington 25, D. C., at the prices indicated. On the back page of ea(·h part of the Tilles and regulations is a form which, when filled ;Hlt and sent the Commission, entitles the purchaser to receive allY subsequent changes until a. complete revi sion is printed. Title Communications Act of 1!l;H, with amellliments and index, revised to May 19~4_ Amendments only from )"Iay 11)54 to If'eb. 1, 19fi6 _ Federal Communications Commission reports (bound volumes of deeisions and reports exclusive of annual reports) : Vol. 5, Nov. 16, 19.'37, to .Juue .30, 11)38 _ Vol. 6, July 1,In::~H,to Feb. 2.'3, l!mn _ Vol. 11, .July 1, In45, to .Tune ao, 1947 . _ Yol. 12, July I, 1947, to .Tune 30, 1948 _ Vol. 13, .July 1, 194.'3, to .June 30, 194!.L _ Vol. 14, .July 1, 1949, to .Tune ao, 1950 _ Annuul reports of the Commission: lath Annual Report-fiscal yeur 1947- _ 14th Annual Report-fiscal year 1H48 _ 17th Annual Report-fiscal year 1951 _ ·To be replaced b",' Douglas, Ariz., In Ifl57. Price $0.70 .4;) 1.50 1. 50 :3.75 3.50 4.25 4. 75 .25 .30 .40 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 'l'Ule .\ullual reports of the COlllInissiOll-Continued 18th Annual RellOrt-fiscalyear U)52~~__ __,------------ HHh Annual Heport-fis('al :rear 195:L _ ~2d.\nnual Report-tiscHI seat' 1!):J6~~__ (Report..- for years unlisted are Ol1t of print and ullayuilnble.) Rtatistics of the comnlllllications ilHlnstry: For the year 1!H:L~~_ ~'orthe year1!)4~__~~~_ POl' the year l!)4(L~_ For the year 1947~~~_ },'or the year 1948, sections A and B__~~_ For the year 194D--sections A