F C C ederal ommunications • • ommlsslon 27th annual report Fiscal year ended June 30, 1961 wnh summa" and notaUon of subsequent Important deveIGpments. UNITEO STATES GOVERNMENT PRINTING OFFICE. WASHINGTON. 1961 For lal. by Ihe Superlntend,nt of Documents, U.S. Government 'tinting Office Washington 25, D.C. - Price 45 cents (paper cover) I ."", COMMISSIONERS Members of the Federal Communications Commission (As of June 30, 1961) NEWTON N. MINOW, Ohairman (Term.expires J nne 30, 1968) ROSEL H. HYDE (Term expires June 30, 1966) ROBERT T. BARTLEY (Term expires June 30, 1965) ROBERT E. LEE (Term expires June 30, 1967) T. A. M. CRAVEN (Term expires June 30, 19(3) FREDERICK 'V. FORD (Term expires June 30, 19(4) JOHN S. CROSS (Term expires June 30, 19(2) A list of present and past Commissioners appears on page IV. n LETTER OF TRANSMITTAL FEDER"\.L CO)UIUNICATIONS CO:UMISSION, Washington 135, D.C. To the Congress of the United States: Submitted herewith is the 27th annual report of the Federal Com munications Commission for the fiscal year 1961. The report furnishes particular information and data required by section 4(k) of the Communications Act of 1934, as amended; a sec tion 315 amendment concerning political broadcasts; also material responsive to recommendations made in 1959 by the House Legislative Oversight Sllbcommitt('e. Congressional attention is invited, in particular, to Commission ac tions in implementing the many changes to the act made in 1960, efforts of the Commission to make broadcasters more aware of their public interest responsibilities, the Commission's relation to and activ ities in national defense and space communication matters, and prob lems and policies reflected in the mushrooming growth of business and private communication services and the continued expansion of com mon carrier telephone and telegraph facilities. To serve as a more timely reference, the report notes important developments since the fiscal year closed on June 30, 1961. Respectfully, NEWTON N. MINOW, Chairman. m PAST AND PRESENT COMMISSIONERS Commi~rioner.Politic, SM. T,mu of umu *Eugene O. Sykes________ Dem____ Miss__~_ July 11, 1934-Apr. 5, 1939 Chairmau__________ -------- -------- July 11,1934-Mar. 8, 1935 *Thad H. BroWTI _________ Rep____ Ohio____ July 11, 1934-June 30,1940 . Paul A. Walker_________ Dem____ Ok1a ____ July 11, 1934-June 30, 1953 Acting Chairman____ -------- -------- Nov. 3,1947-Dec. 28, 1947 Chairman__________ -------- -------- Feb. 28, 1952-Apr. 17, 1953 - Norman S. Case_________ Rep____ RL____ July 11, 1934-June 30, 1945 Irvin Stewart___________ Dem____ Tex_____ July 11, 1934-June 30, 1937 *George Henry Payne___~_ Rep____ N.L ___ July 11, 1934-June 30, 1943 *Hampson Gary__________ Dem____ Tex_____ July 11, 1934-Jan. I, 1935 *Anning S. PralL_________ Dem____ N.y____ Jan. 17,1935-July 23. 1937 Chairman __________ -------- -------- Mar. 9. 1935-July 23, 1937 T. A. M. Craven________ Dem____ D.C____ Aug. 25, 1937-June 30, 1944 *Frank R. McNinch______ Dem____ N.C ____ Oct. 1, 1937-Aug. 31, 1939 Chairman __________ -------- -------- Oct. 1, 1937-Aug. 31, 1939 *Frederick I. Thompson___ Dem____ Ala_____ Apr. 13,1939-June 30, 1941 James Lawrence Fly_____ Dem____ Tex_____ Sept. 1, 1939-Nov. 13,1944 Chairman__________ -------- -------- Sept. 1,1939-Nov. 13, 1944 *Ray C. Wakefield_______ Rep____ CaliL___ ~ar.22, 1941-June 30, 1947 Clifford J. Durr_________ Dern____ Ala_____ Nov. I, 1941-June 30, 1948 Ewell K. Jett___________ Ind_____ Md_____ Feb. 15,1944-Dec. 31, 1947 Interim Chairmao___ -------- -------- Nov. 16, 1944-Dec. 20, 1944 Paul A. PorteL _________ Dem____ Ky _____ Dec. 21,1944-Feb. 25, 1946 Chairmao__________ -------- -------- Dec. 21,1944-Feb. 25, 1946 Charles R. Denny_______ Dem____ D.C____ Mar 30, 1945-0ct. 31, 1947 Acting Chairman____ -------- -------- Feb. 26, 1946-Dec. 3, 1946 Chairman __________ -------- -------- Dec. 4, 1946-0ct. 31, 1947 *'William R. Wills ________ Rep____ Vt______ July 23, 1945-Mar. 6, 1946 Rosel H. Hyde__________ Rep____ Idaho___ Apr. 17, 1946- Chairmao__________ -------- -------- Apr. 18,1953-Apr. 18, 1954 Acting Chairman____ -------- -------- Apr. 19, 1954-0ct. 3, 1954 Edward M. Webster_____ Ind_____ D.C____ Apr. 10, 1947-June 30, 1956 Robert F. Jones_________ Rcp____ Ohio____ Sept. 5, 1947-Sept. 19, 1952 *Wayne Coy_____________ Dcm____ Ind_____ Dec. 29,1947-Feb. 21, 1952 Chairman__________ -------- -------- Dec. 29,1947-Feb. 21, !fJ52 George E. Sterling_______ Rep____ Maine__ Jan. 2, 1948-Sept.30, 1954 *Frieda B. Rennock ______ Dem____ N.y____ July 6, 1948--June 3D, 1955 Robert T. Bartley_______ Dem____ Tex_____ Mar. 6, 1952- Eugene H. MerrilL ______ Dem____ Utah____ Oct. 14,1952-Apr. 14, 1953 John C. DoerfeL ________ Rep____ Wis_____ Apr. 15, 1953-Mar. 10, 1960 Chairman __________ -------- _._------ July 1, 1957-Mar. 10, 1960 Robert E. Lee___________ Rep____ Ill______ Oct. 6, 1953- George C. McConnaughey_ Rep ____ Ohio____ Oet. 4, 1954-Juoc 30,1957 Chairman__________ -------- -------- Oct. 4, 1954-June 3D, 1957 Richard A. Mack________ Dem____ Fla_____ July 7,1955-1\-'Iar. 3, 1958 T. A. M. Craven ________ Dem____ Va______ July 2, 1956- Frederick W. Ford_______ Rep ____ W. Va __ Aug. 29,1957- Chairman __________ -------- -------- Mar. 15, 196(}-Mar. 2, 1961 John S. Cross ___________ Dem____ Ala ___ - May 23, 1958- Charles H. King_________ Rep____ Mich___ July 19,1960-Mar. 2, 1961 Newton N.~inow_______ DenL__ IlL ___ Mar. 2,1961- Chairman ______ -------- Mar. 2,1961- -Deceased. IV Table of Contents p... REPORT SUMMARY___ __________________ _ __ ____ _ ___ 1 COMMISSION_____ ________ ____ ____ ____ ____ ____ ____ ____ ____ _ 11 Organization chart. ____ ______________________________ __ _____ 10 Purpose______________________________________________________ 11 Authority .., __ _ __ __ __ __ 11 Regulation__ .., _.., _..,..,..,.., __ .., _.., .., .., __ .., _.., .., _________________ 11 General__________________________________________________ 11 Common carriers .., _.., _.., __ .., _________ 12 Broadcast________________________________________________ 12 Safety and speciaL ..,____________________________________ 12 Commissioners .., _.., __ ..,'" __ .., _..,..,.., _.., _.., _.., _______ 13 Staff organization_____ _________________________________________ 14 Automatic data-processing study______________________ __ ________ 15 PersonneL___ __ ___ _______ __ ___ __ __ __ __ __ _ 15 Employee awards program___ _________ ________ _______________ 16 Appropriations and expenditures_ _______________________________ 16 Hearing examiners____ ____________________________________ _____ 17 Dockets______________________________________________________ 17 Authorizations_ __________________________ ______________ __ _____ 20 Applications_ _ ________________________________________________ 20 Correspondence_______________________________________________ 20 Releases ____ _________________________________________________ 21 Publications_ __ _________________________________________ ______ 21 Foreign technical assistance___ ________ __________________________ 21 LAW AND ENFORCEMENL______________________________ 22 Legislation_ _________________ _______ ____________ ____________ __ 22 FCC reorganization__ _____________ ________________ _______ __ 22 Other enacted laws_ _ __________ _____ _______________ ________ 23 FCC legislative program_ ____ ______________________________ 23 Other legislative proposals affecting the FCC_ ________________ 24 Congressional hearings_ _ ____________ _______ __ ______________ 25 Space hearings_ _____________ __________________________ 25 Litigation_ _ __ __ __ __ ___ __ __ __ __ __ 25 Important cases_ ___________________________ _______________ 26 Statistics_ _______________________ ______________________ ___ 28 Enforcement_ _____________________________ ____ ________________ 29 NATIONAL DEFENSE- _____ ______ ____ ____ ______ ____ ____ ___ 31 Cieneral______________________________________________________ 31 CONELRAD program ._ ____ 31 Military-FCC Emergency Communications Committee__ ___________ 33 State FM Defense Networks____________________________________ 33 Emergency Broadcast System__ ________________________________ _ 33 V VI TABLE OF CONTENTS NAllONAl DEFENSE-Continued Industry advisory committees_ _______________ _ _ Industry relatiolls~_ Defense coordinatioll____ ___ _~_ National Defense Executive Reserve _ Emergency communications facilities _ Operation Alert 196L~_ FCC family rendezvous poinL _ BROADCAST SERVICES _ ~ograrns__ ----------------- _ General , _ Programing policy~~_ TV network inquiry ________________________ _ _ Cornplaints~_ Hearings _ Program information form~_ Sponsorship identification~_ Political broadcasts _ Broadcast of controversial issues _ Assignment of licenses _ Local noticerequirement~, _ Other 1960 act amendments~_ Television (TV) broadcast service _ General~_ UHF promotion_ ______________________ _ _ Translators, repeaters, and boosters _ National spot sales representation by TV networks _ TV option time~_ Subscription TV _ Noncommercial educational TV _ Airborne TV instruction test _ TV agreements with Canada and Me:xico~_ Frequency modulation (FM) broadcast service _ General~_ Commercial FM _ Educational FM -' _ Stereophonic broadcasting _ Change in FM rules . -Standard (AM) broadcast service~~ (}eneral _ Class IV stations _ Clear channels~_ NARBA and United States-Mexican agreements _ International broadcast stations~_ Miscellaneous broadcast services _ Statistics~_ Current broadcast authorizations _ Status of broadcast authorizations~_ Broadcasting since 1949_~- _ Broadcast applications _ Broadcast industry financial data~_ Pag.. 33 34 34 34 35 35 36 37 37 37 37 38 39 40 41 42 43 45 46 47 47 48 48 48 50 50 51 51 52 53 53 53 53 54 54 54 55 55 55 56 56 57 57 58 58 58 58 59 60 62 TABLE OF CONTENTS VII Page SAFETY AND SPECIAL RADIO SERVICES___________________ 68 -' o Commission PURPOSE The Federal Communications Commission was established in 1934 to unify Federal regulation of wire, cable, and radio communication between the States and between this country and foreign points. Prior to that time this jurisdiction was shared by various Government agencies. AUTHORnv The Commission operates under the authority of the Communica tions Act of 1934, which created it, and subsequent amendments to that statute. Its jurisdiction extends over the continental United States and its territories and possessions, but not to communication facilities operated by the Federal Government. REGULATION General Three major fields of electrical communication are regnlated by the Commission. They cover telephone and telegraph services by com mon carriers operating by wire, cable, and radio; broadcast stations which transmit programs over the air; and a variety of nonbroadcast services used for safety and other special purposes. The law restricts FCC licensing to U.S. citizens. The Commission cannot license corporations in which any officer or director is an alien, or of which more than one-fifth of the capital stock is owned or con trolled by foreign interests. As far as radio in general is concerned, the Commission allocates bands of frequencies for the different domestic radio services; assigns particular frequencies and call signals to individual stations; author izes and licenses transmitters; licenses transmitter operators; and establishes and enforces rules and regulations governing radio oper- ation under its jurisdiction. • In addition, the Commission promotes the use of radio to protect life and property; encourages new and wider utilization of radio; curbs interference to radio communication; coordinates private com munication systems with the national defense program; and partici pates in formulating and administering domestically the telecom munications provisions of international agreements to which the United States is a party. 11 12 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Common Carriers Commission jurisdiction is of primary concern to common carriers furnishing interstate and international services. Carriers engaged in purely intrastate operations are under the authority of their respective State utility commissions. The Commission supervises rates and services of subject telephone and telegraph companies. It also revicws thc adequacy and the quality of their services. Its approval is required for such carriers to construct, acquire, or dispose of interstate or foreign facilities, to dis continue or curtail service, and for carriers to merge or consolidate. The Commission prescribes the forms of records and accounts kept by these carriers. Its authorization is required for any person to h01d office in more than one company. Subject to the approval of thc Secretary of State, the Commission can issue, deny, or revoke licenses to land or operate submarine cables in the United States. Broadcast Since the Communications Act declares broadcast stations are not common carriers, the Commission does not regulate broadcast station time charges, profits, salaries, employment, or internal management. The law also guarantees free speech on the air and enjoins the Com mission from censoring programs. The Commission's relation to broadcasting includes the assignment of frequencies, power, operating time, and call letters; the periodic inspection of transmitting equipment and otherwise checking tech nical operation; passing upon station transfers and assignments and other changes ill existing authorizations; modifying and renewing construction pennits and licenses; and reviewing the general service of eaeh station to determinc whether it has been operating in the public interest. Receiving sets are not liccnsed by the Commission, nor does it regu late their manufacture, sale, or servicing. However, limitations are imposed on receiver and other radiations to minimize their inter ference to radio commnnication. Safely and Special In complying with the law's mandate to encourage new uses for radio and to foster its employment to help protect life and property, the Commission is affording many opportnnities for such realization in its Safety and Special Radio Services. This gronp constitutes by far the largest number of stations, since it embraces practically all radio operations which are neither broadcast nor open for hire tothe general public. Inclnded are services dedicated to public safety (police, fire, REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 13 etc.); aviation and marine; land transportation; business and indus try; and amateurs and citizens interested in more personalized uses. COMMISSIONERS The Commission is composed of seven Commissioners who are ap pointed by the President and confirmed by the Senate. Appointment is for 7 years except in filling an unexpired term. Terms are staggered so that not more than one expires in a year. A Commissioner may serve until a successor takes office, but not beyond the close of the fol lowing congressiomtl session. Not more than four Commissioners may be members of the same political party. A Commissioner cannot have financial interest in any business which the Commission regulates, nor engage in any other business, vocation, profession, or employment while on the Commis sion. Also, he must be a U.S. citizen. The President designates one of the Commissioners to serve as Chairman. This appointment is not subject to Senate confirmation. The duration of a chairmanship is at the pleasure of the President. The law designates the Chairman as the Commission's chief executive officer and, as such, he is responsible for administering the internal affairs of the Commission. The Commissioners function as a body in making all policy deter minations. tVeekly meetings are held to transact business, except during the August recess when there is a single session to comply with sbLtutory requirement. In addition, the Commissioners hold monthly meetings with staff officers to review the work status and to determine priority for pressing matters. The Commissioners sit en bane in some major proceedings and hear oral arguments (required by law) on exceptions to initial decisions of hearing examiners. Certain responsibilities are delegated to individual Commissioners and committees of Commissioners. Examples in the first category are the Defense Commissioner, l\1:otions Commissioners, and Commis sioner membership in various groups representative 0:£ Government and industry telecommunication interests. tVithin the Commission, Telephone and Telegraph Committees function with Commissioners as members. Individual Commissioners also head or are members of U.S. delegations to international telecommlmications conferences. Actions taken by delegated authority-whether by individual Com missioners, committees of Commissioners, or staff units-are subject to petitions for review by the full Commission. CommiS6ion practices conform to the Communications Act, to the Administrative Procedure Act, and to other applicable laws. 14 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION On January 30, 1961, the President nominated Newton N. Minow to the Commission and on February 13 thereafter the Senate confirmed Mr. Minow as a Commissioner to fill out the term of Charles H. King, expiring June 30 of that year, also for the ensuing regular term to June 30, 1968. Mr. Minow's appointment as Chairman was pursuant to the President's announcement of January 9. Chairman Minow took office on March 2. STAFF ORGANIZATION The Commission staff has, since 1952, been organized into integrated bureaus and offices on the basis of its principal workload operations and other primary functions. In consequence, there are four bureaus, each with its own engineers, lawyers, accountants, and other necessary staffing. They are the Broadoast Bureau, which deals with AM, Fl\I, TV, and other broadcast services; Safety and Special Radio ServW6s Bureau, which administers to the nonbroadcast and noncommon carrier radio services (except for common carrier aspects of the marine services) ; Oommon Oarrier Bureau, which deals with telephone and telegraph rates and services, whether by wire, cable, or radio; and Field Engineering and Monitoring Bureau, which is responsible for field engineering work, including inspection of radio stations, monitor ing the radio spectrum, technical investigation and enforcement, ex· amination and licensing of radio operators, and special engineering studies. In addition, there are seven offices with specific functions, namely: Office of the General Counsel, which serves as chief legal adviser to the Commission in matters concerning litigation, legislation, administrative law and treaties, and regulation; Office of the Chief Engineer, which deals with the technical aspects of frequency allocations, treaty matters, technical research, and laboratory investigation; Offioe Of the Secretary, which has charge of the Commission's official records, processing of correspondence and official documents, and cer tain functions of au administrative nature; Office of Administration, under the direction of the Chairman, which handles the Commission's fiscal, personnel, and administrative serv ices, including data processing; reviews its organization and methods, and now includes a defense coordination division; Office Of Hearing Examiners, which conducts hearings and prepares and issues' initial decisions; Offioe of Opinions and Review, which assists the Commission in the preparation of decisions in cases of adjudication pursuant toCommis~ sion instructions (see "Legislation") ; and REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 15 Office of Reports and In.jormation, which is the central point tor issuing releases and other public information. An organization chart of the Commission as of June 30, 1961, ap pears as a separate page of this chapter. During the year the Commission delegated additional authority to its operating bureaus and certain of its offices to take routine actions which are largely automatic under the rules and do not involve policy considerations. This has relieved the Commission of considerable routine work and given it more time to devote to subjects of greater importance. AUTOMATIC DATA-PROCESSING STUDY During fiscal 1961 the Commission employed a permanent data processing staff which was organized as the Data Processing Divi sion under the Office of Administration. A definition of the current operations of the Commission was completed and a proposed elec tronic data-processing system was developed to accomplish many of its administrative functions. Specifically, the system is designed to accomplish the following objectives: (1) improve service to the public by reducing the application processing time; (2) provide uniform application of rules and regulations, thereby eliminating deficiencies resulting from individual interpretations; (3) achieve a maximum degree of accuracy and timeliness in recording data through the elimination of routine clerical functions; (4) facilitate the use of advanced mathematical techniques for engineering and technical functions; (5) furnish a means to retrieve information and data rapidly and accurately; and (6) provide the FCC field offices and monitoring stations with current information pertaining to all communications facilities. The specifications for the proposed system were presented to manu facturers of electronic computers for submission of equipment pro posals. The data-processing study is progressing on schedule and it is anticipated that a computer will be delivered and installed by the third quarter of fiscal 1963. PERSONNEL The Commission ended the fiscal year with 1,396 employees on its rolls. Included were 46 employed for the summer months only, and 64 performing work for other agencies on a reimbursable basis. The actual average employment for the entire year for staff engaged in "regular" Commission activities was 1303.8. This represents an in crease of 80 over 1960. The average employment for the various organization units was as follows: 16 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Field Total 0 47.2 0 36.7 0 30.' 0 ••• 1.0 gS.8 0 59.2 0 39.4 13.6 74.0 27.1 132. 9 8.0 162.2 0 232.' 317.5 330.' 0 6.0 367.2 1,303.8 47.2 31i.7 30.' ... ".8 59.2 39.4 60.' 105.8 154.2 232.' 62.9 6.0 936.6 Washington Commissioners' offices __ . •.~~_.__ . __ •• _. __ §i~~iti~,,~~!~~~;~O~::::::::::::::::::::::::::::::::: Office of Secretary .. _ Office of Oener:>l CounseL .'~._._ Office of Chief Englneer . _ Common Carrier Bureau . •.• _ Safety and Special Radio Services Bureau_. .• .••• _ Broadcast Bureau ._. >_. • __ Field Engineering and Monitoring Bureau. • _ UHF-TV Group •••••••• • __ • _ 1----c~I-~_c Total ••••• • ._.__ •• _ EMPLOYEE AWARDS PROGRAM During the past 10 years the Commission has operated a program of recognizing length-of-employee service by the presentation of serv ice emblems at annual gatherings to which all employees are invited. It has also recognized with cash awards especially noteworthy em ployee performance and employee suggestions for bettering work pro cedures. In the year just closed, 252 length-of-service emblems were presented, $10,630 was awarded 61 employees for superior perform ance, and $1,295 was paid 46 employees for suggestions adopted. APPROPRIATIONS AND EXPENDITURES The Commission's appropriation for fiscal 1961 was $13,085,000, which included $2 million for the New York City special UHF-TV study for the 2-year period of 1961-62. An additional $704,000 was appropriated to cover the cost of personal services due to the pay increase enacted in July of 1960. Personnel compensation plus personnel benefits accounted for 89 percent of the 1961 budget. A breakdown follows: Personnel compensation $9,835,142 Personnel benefits_______________________________________ 759,706 Travel 184,525 Transportation of things_________________________________ 44, 766 Rents, communication and utility serviees~__________322,821, Printing and reproduction________________________________ 95, 283 Other services___________________________________________ 164,326 Supplies and materials___________________________________ 172,298 Equipment 192,667 Land and structures_____________________________________ 17,440 Total amount obligated 11,788, 974 The source of these funds and the authority for expenditures there under is Public Law 626, 87th Congress. Expenditure details and REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 17 their justification are set forth at length in the FCC budget preseuta tion to Congress. The Commission again told Congress that it favors the collection of fees for its licensiug and other services if such Goverument reim bursement is applied to other Federal regulatory agencies. In 1954, at the request of the Bureau of the Budget, the FCC proposed a schedule of fees, but further action was stayed at congressional request. HEARING EXAMINERS During the year, 198 proceedings (involving 438 applications) were itssigned to the Commission's 15 hearing examiners. They held 293 prehearing conferences, 297 formal hearings, closed the records in 189 cases, and issued 171 initial decisions. During the same period, they issued 1,420 interlocutory and other orders, including 469 by the Chief Hearing Examiner. DOCKETS Docket statistics for the fiscal year follow: Dockets statistics ..... 00 " 7 258 .. 106 152 Applica. tions oovered by initial decisions 12 • 108 Initial dootslons Issued 28 6 73 37 18 26 53 16 37 15 • 11 68 22 .. 1 '-'-'._'-- .._---..__.. 2 ----_._-_ . . _-_ ...-.._. 6 6 _•.. ._. 21 15 , DIspOsed ollollowtng hearing 2 , I 66 3 Disposed of wi thout hearing 25 • ., 11 116 Total pending July I, 1960 Total TV broadcast dockets_ • ••••._ SubtotaL.. • ._.•_.•__ ._•.._... 84 41 20 2 20 11 ASS!:.'Qments andtranrers~._~._.___ 1 I 1 .._+ •• _ Rellcwnls... ._.__ ••.•_. ••• ••__ 1 1 •.. •__ .••_. ._. •.__ ..' .. .. _ xlro~:rS:::::::::::=::::::::::::::::::::-·····-30- :::::::::::= .. ---.--.- '--'--'---1- --- -.--....--..-.-- "-'-'-24- ·----·-·--2- ---.-- -2- :::::::::: :::::::::::: Broodcsst dockets: AM broadcast: New statlons_. ••••__ •• 194 182 17 60 18 62 27 9 183 Major changes. • •21~'+'50_:_1 97 12 3 00 5 2 lSI SubtotaL ._. • •• .__ 413 332 114 72 21 131 32 11 364. ~~~':~~:~_~~~.:~~~~~~~~~~~:~~=~~~~::------ ia-~~~~~:::~::::::::==::== _ 1 ---'-·--4- ==:::====: :=:::=::::=:1~ Licenses .______________ 2 1 __ ••_. .__ 1 ._____ 2 Ailothers_._._. •• •. • •~'-I:-::-'I--=-I---~+--__:c+-----~--_:_------------ ----- 2 Tota.l AM broadea.st doekeuL__ .______4~340 1141~~~~T~2~1-~=~22~I~~~13~.~I-~~~32~II,~=~~~1~1=1=~=3~82~~~~11~2~1~=~2~';8 FM broadcast:~~~=~I-=~~=II~~~~ New stations.~..~._.••_ Major cllanges__ • ._•• • •••_ ----=I-__cc:-!--~!--__ccl-----:-I-___=!-__cc!---II----:c:--I-----=-- S~lbtotld... ..._ 51 :hi 9 6 20 6 _. ...__ 34 18 26 AS5ignmentsand tmnsrers • ••__ • • ._______ _ • ., .- __ • •••__ • Renewals •• •• .___ 3 __ •• ._. _._._•._.. _'.' ._." . __ •__ .. .. . __ . __ ••..__ •__ ••• 3 _•. .•. •••.••.. Licenses__ . __ . __ • ._..__ ._.. .._•• __ ._..•_. __ ..•_. ._••._. __~. _..... . .. . ..•_••_._ ....•_.._._ •._ .. ... . •••.__ ••._._. All others_._._•.•_•••_.__ ._••__ .. •...••..__ •• _•• •• _.•. - .• ••_.. - ._ •.__ ••_•. ..__ •• ,,_,__ ,,_. - .._. .•__ .. ••••__ 102 211 177 73 17 15 -~--..----- - 3 24 , 15 -----------~7 , 2 , 1 1 34 10 29 ---------_.- 2 143 30 188 102 26 Other than broadcast dockets: Safety and special radio services~~_____ 38 51 10 Common carrier serviccs~___________ 64 21 23 Joint and gencralm3tters__ - - --- ----------- -"1---,,'-"+---22:::- 1 ---,14:- 1 ----,,+----:-1---"-'-'+---:::'-1-----1---''- 'l'otal other than broadcast dockets. . __-'~~ol~50~II==~""~1" Petitions, cease and deslst orders, rules, etc._ _ 32 38 21 Tot.'ll dockets . _i==:;79':'"I~~=:;5,,':"I=~1"96:"lo~~7.:o'i'===o':o1-~~~~"",:"I"~~~II~~~~I~~=c Other broadc!l3tservices_~--- --- -,~~"'Cl~3olo===o"10:"I"~~='"I"===o,,,2:"I-o-O-"-"--O-o-c--::-c-I-----------.--~----- ------------ 16~--------- -----------. Total broadcast dockets..._~612 422 128,~~"'C:'C'II~~"'C:'C'II~oo~"""" I Removed from hearing status and returned to processing lines. 20 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION AUTHORIZATIONS Nearly 3.3 million radio authorizations were on Commission record at the yearend. This was almost 470,000 more than the year previous. Comparative figures follow: BrOlldca.~tservlct's. . __ . • _ Safety and special services. . • __ . . _ Common canler senices.• _ Experimental services .. . _ Commercial radio operators.__ _ . • _ Amateur radio operators . • ._ TotaL. _• . _. __ • • . _ June 30, 1960 June 30.1961 Increase 11,179 13,845 2,666 6iil,9il3 770,505 118,512 4,386 4,959 573 728 757 ,. 1,947,368 2,282,148 334,780 1206,000 216,720 10,720 2,821.654 3,288,934 467,2RO \ Estimated. Because some service authorizations cover the use of more than one transmitter, radio station grants collectively represent the use of over 2.7 million transmitters. APPLICATIONS Applications of all kinds received by the Commission during the year exceeded 700,000, which was a slight increase over 1960. Application figures for the 2 fiscal years are: Class TotaL • __ •. . • _ 1900 1961 Incr('a..«e or (decww;e) 12,613 15,500 2,887 350.177 39'2,622 42,445 5,612 8,270 2,658 1,369 1,456 S7 329,744 291,366 \38,378) 699,515 709.214 9,69\l The net reduction in commercial operator authorizations was due to the Commission waiving the restricted operator permit for opera tion of semiautomatic transmitters used in certain services; also a general tendency for holders of lower grade permits to seek those of higher grades. Amateur radio operators are not listed here because their station and operator applications are combined in the safety and special services application total. CORRESPONDENCE More than 2 million pieces of mail were received or dispatched by the Commission's Washington office (exclusive of its Field Engineer ing and Monitoring Bureau) during the year. This was an increase of 330,000 over the previous year. Of the 1961 total, over 1.3 million were incoming and about 674,000 outgoing. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 21 RELEASES The Commission issues two general types of mimeographed re leases. One consists of public notices of actions, receipt of certain kinds of applications, petitions for rulemaking, hearing calendars, etc. The other comprises texts of orders, decisions, and other formal documents. Copies of the documents are served on the parties con cerned. No public mailing list is maintained for any of the Commission's issue. .Mimeographing for release and internal administrative use re quired 56,500 stencils, 13.5 million sheets of paper, and nearly 19.8 million prints during the year. An all-multilith reproduction system was put into operation by the Commission in September 1961. PUBLICATIONS The Commission does not make distribution of its printedpubli cations which are sold by the Government Printing Office. A list rtf such publications will be furnished by the Commission on request. The Government Printing Office sells the texts of the Commission's major decisions in a weekly pamphlet form on a subscription basis and, later, in bound-volume compilations. Printed copies of the Com mission's rules and regulations by categories are available from that same source. These, too, are sold to subscribers who also receive from the Government Printing Office subsequent amendments to the par ticular volume or volumes purchased. That Office additionally sells copies of the Commission's annual and special reports; a composite volume of the Communications Act, as amended, and the Administra tive Procedure Act and the Judicial Review Act; statistics of communications common carriers, etc. Further, all Commission hearing orders and rulemaking (both as proposed and finalized) are given official promulgation in the Federal Register, which may be subscribed to or single copies purchased through the Government Printing Office. FOREIGN TECHNICAL ASSISTANCE The Commission, cooperating with the International Cooperation Administration and the Department of State, continued to plan pro grams in behalf of foreign telecommunications experts and tech nicians for study of U.S. communication systems and industry. Domestic industry has partcipated in practically all instances and, along with various branches of the Commission, provided training to upward of 400 persons since Commission participation in this program started in 1051. Law and Enforcement LEGISLATION FCC Reorganization During the 1st session of the 87th Congress, a major portion of the Commission's legislative activity was concerned with the President's Reorganization Plan 2 affecting the FCC. About 5 days of hearing were held in both Houses before the two legislative committees-the Subcommittee on Regulatory Agencies of the House Interstate and Foreign Commerce Committee and the Subcommittee on Communica tions of the Senate Commerce Committee. In addition, the House Government Operations Committee held a full day of hearing and the Senate Government Operations Committee also conducted a hearing. Both Houses turned down the President's FCC reorganization pro posal mainly because of the powers that it would delegate the Chair man and undertook to accomplish the rest of his recommendations by legislative meaus. Following the hearing before the Senate committee, the Commission, at the request of that committee, submitted a draft of its own legisla tive proposal. This was introduced by Senator John O. Pastore as S. 2034 on June 7, 1961, and, following a hearing on June 28, a revised bill was recommended to the full committee. On the House side, Chairman Oren Harris introduced H.R. 7333 for the same purpose. A hearing was held on June 13, following which the House committee reported a new bill, H.R. 7856, which was intro duced on June 26. The Senate bill was passed by the Senate on July 27,1961, and the House, on August 3 thereafter, adopted a substantially similar measure in lieu of its bills. A subsequent conference agreed on revisions in S. 2034, which became law when signed by the President on August 31, 1961. This is the most important legislation affecting Commission organi zation and procedures since the extensive revisions of 1952. It is in tended to improve and expedite the Commission's functioning. Itcon forms largely to the President's reorganization plan except that it gives less powers to the Chairman than the Chief Executive's proposal. In substance, the Communications Act is changed to delegate more authority to the Commissioners-as panels or individuals-and to the staff to enable the Commissioners to devote more time to policy and other important matters; permits the Commission to deny review petitions without stating reasons; prohibits off-the-record approaches 22 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 23 in adjudicatory cases; deletes specific reference to the Office of Opinions and Review and permits the Commission staff to recom mend decisions; and, as is the practice in othel" Fedeml agencies, makes oral argument discretionary and allows Commissionel"S to consult with the General Counsel and Chief Engineel" on legal and technical considerations involved in adjudication, and examiners to consult with each other on points of law. Other Enacted Laws Following the close of the 1960 fiscal year, six other bills affecting the FCC were enacted into law by the 86th Congress. As noted in the 1960 annual report, these were- Public Law 86-609, enacted July 7, 1960, waiving the licensed operator and prior construction permit requirements for TV translators and boosters. Public Law 86-619, July 12, 1960, providing that a Commissioner continue to serve uDtil his successor is appointed and qualifies. Public Law 86-624, July 12, 1960, retaining the status quo with respect to consolidations and merger-s of telegral)h carriers in the light of Hawaii's entry into the union. Public Law 86-677. August 24, 1960, suspending for the 1960 campaign theequal~timerequirements for nominees for President and Vice President. PUblic Law 86--751, September 13, 1960, affinning the Commission's authority to regulate charges and services of common carriers using microwave and other point-to-DOint radio circuits. Public Law 86-752, September 13, 1960, providing a pregrant pro· cedure for certain broadcast and other applications; limitations on "payofl's" between broadcast applicants; disclosure of payments for broadcast of certain matter; prohibition of deceptive practices in broadcast contests; local notice by applicants for new stations, major changes or hearings; and short-term licenses or forfeitures for broad cast infractions. FCC Legislative Program Eight Commission proposals to amend the Communications Act were introduced during the 1st session of the 87th Congress. They were- An amendment to sections 219, 308, and 319 to eliminate the require ment of an oath or affinnation on certain documents filed with the Com mission (8.683, H.R. 4113). An amendment to section 504 (b) and a new section 510 to authorize forfeitures for violation of certain rules and regulations in the common carrier and safety and special radio fields (8.1668, B.R. 6581). An amendment to exempt persons serving in the FCC unit of the National Defense Executive Reserve, who are not otherwise employed by the Commission, from the conflict-of-interest provisions of section 4(b) ot the Communications Act and other statutes (S. 1689, B.R. 6579). 614399-61--3 24 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION An amendment to section SOO(q) which would give the Commission authority to require the painting and/or illumination of abandoned radio towers (S. 684, H.R. 4114). An amendment to subsection (e) of section 307 to remove the present restriction against the renewal of any license more than 30 days prior to its expiration in the safety and special services (S. 1371, H.R. 5710). An amendment to section 3 and a new section 303 which wouldau~ thorize the FCC to issue rules and regulations with respect tocom~ muulty antenna TV systems (S. 1044, H.R. 6840). An amendment to section 303 and a new section 330 \vbleb 'Would give the Commission authority to prescribe minimum performancecapabill~ ties for TV receivers (S. 2109, H.R. 8031). An amendment to provide for summary judgment procedure in the consideration of license applications in appropriate cases. This would clarify the situations in which a full evidentiary hearing would be re quired on applications filed under section 308 (S. 2108, H.R. 7895). Five of these bills had been passed by the Senate and were pending at the end of the fiscal year in the House-namely, those eliminating the oath or affirmation, providing monetary forfeitures for violations, marking abandoned towers, permitting early renewals, and improving the FCC's administrative process. Other Legislative Proposals Affecting the FCC Some 300 bills and resolutions affecting the Commission directly or indirectly were introdnced in the 1st session of the 87th Congress (ap proximately 240 in the House and over 75 in the Senate). Many of these were duplicated in both Heuses. Among them were more than 75 bills dealing with removmg the excise tax on telephone communications. Other bills concerned such subjects as- Establishing Federal matching grants for educational TV station construction. Extending the time for annual inspections of ship radio stations. Amending the Communications Act with respect to the hours of opera tion of certain broadcast stations. Limiting1<~CCauthority to shift TV stations from VHF to UHF. Providing civil remedies to persons damaged by unfair commercial activities. Reimbursement of political parties for broadcast expenditures in presidential election campaigns. Penalties for malicious damage to communication facilities. Providing for assessment and collection of fees to cover cost of opera tion of regulatory agencies. Making permanent the equal radio time suspension for candidates for President, Vice President, Senator, Representative, and Governor. REPORT OF THE FEDERALCO~CATIONSCO~SSION25 The Commission submitted to the Bureau of the Budget and com mittees of Congress written comments on more than 20 legislative proposals referred to it for study. In lieu of submitting comments on several other bills, statements were presented at some congressional hearings. Congressional Hearings The Communications Subcommittee of the Senate Commerce Com mittee and the Communications and Power Subcommittee of the House Interstate and Foreign Commerce Committee held hearings on various bills concerning the Commission, including those relating to section 315 as it pertained to presidential and vice presidential campaigns, educational TV, increasing the effectiveness of regula tory agencies, and other matters. The Commission surveyed all broadcast stations to deteI1nine the extent and terms under which ('acb station maxIe time uyailable for political broadcasting and re ported the results to Congress. The Senate Subcommittee on Freedom of Communications held hearings on section 315 complaints in the 1960 election. In addition, the Senate Subcommittee on Juvenile Delinquency investigated the effects on yonng people of violence and crime portrayed by TV. The House Subcommittee on the Judiciary held hearings on various subjects concerning which the Commission either testified or sub mitted statements. These included such matters as organized crime, antitrust aspects of space commnnication satellites, network practices with respect to "option time" and "must buy" practices, the telephone consent decree, the UHF problem, and competitive TV. Space hearings.-The Senate Committee on Aeronautical and Space St'iences held hearings in connection with the use of space communica tion satellites, at which the Commission presented a statement. Hear i"gs \";ere also held July 13, 1961, when Commissioner T. A. M. Craven testified before the companion committee in the House. The House Interstate and Foreign Commerce Committee held 4 days of hearings from .Tuy 25 to .Tuly 28, 1961, at which Chairman Newton N. Minow and Commissioner Craveu testified. On August 1 thcreafter the Commission also appeared before the Subcommittee on Communica tions of the Senate Commerce Committee, and on August 8 before the Senate Select Committee on Small Business, also on the same subject. LITIGATION The Commission was a party to a number of cases, mostly in the U.S. Court of Appeals for the District of Columbia Circuit, which enunciated principles of law having impact upon the Commission's 26 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION procedures and its administration 0' the Communications Act which, in some instances, had a bearing on the procedures of other Federal administrative agencies. Important Cases During the year, the following cases were decided in important"reas of Commission jurisdiction: In Interstate Broadcasting Oompany, Inc. v. United States ofA.mer~ ioo and Federal Com.nz,unications Commis8io-n. No. 15561, 109 U.S. App. D.C. 255, -it was held that immediate judicial re\'iew could be sought of a Commission order denying intervention in a comparative hearing. The court rejected the Commission's contention that review could not be sought until a final decision was issued in the proceeding, on the grounds that (1) it would be contrary to the legislative history of section 309(b) of the act which expressly confers upon parties in inter est the unconditional right to intervene in the Commission's proceed· lngs; (2) immediate review would eliminate the possibility of duplication of the entire administrative proceeding, since the Commis sion could stay the proceeding pending determination of the appeal if there was sufficient doubt as to the validity of its denial of inter vention; and (3) absent the allowance of immediate review under section 402(a) of the act, the Commission might be depriVed of evidence going to the "public interest, convenience, and necessity" introducoo by a party who might not be aggrieved by the final action upon the hearing. The court concluded that the denial or intervention under section 309 (b) is a final order reviewable under section 402 (a). It also found the alleged economic injury was sufficient to confer standing, partieu· larly since it was cumulative to other applications which would interfere with the signal of the same party. See alsoInter.'~tateBroadcasfi.ng Co. v. Federal Communications Oommission, No. 15046, for an enunciation of this latter doctrine. In MetropOlitan Television Company v. United States of America and FederalComm1tnication.~Commission, No. 15810, U.S. App. D.C. 289 F. 2d 874, the so--ealled "spot sales" case, the court affirmed theCom~ mission's action amending section 3.658 of its rules to prohibit any TV network from representing individual stations, atl:l:Hated with the net work organization, in the sale or nOllnetwork time. The court held that the Commission possessed the statutory authority to promulgate the regulation, on the authority of National Broadcasting 00. v. United States. 319 U.S. 190. Ridge Rad·io Oo-rporatiotJ. v. Federal Commnnica.tiolls Oommission, No. 15946, U.S. App. D.C. 292 F. 2d 770, the court reversed theCom~ mission for failure to provide adequate notice of the time within which an AM broadcast station applicant could be cut off' from comparative consideration with other applicants. However, the court sustained the validity of the~o-called"cutoff" rule (sec. 1.106(b) (1), and the Commis~ion'sinterpretation of thernle~The Commission had held that where an application on a published list was cut off under the rule from other later filed applications, in the I'ense that it could he granted without a hearing as against the other applicants who otherwise REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 27 woUld be mutually conflicting because of signal interference, it was also cut off as against applications not in direct conflict with it, but in conftict with anotber application wbieh was in direct conflict with the listed application. The rules sustained here and in Ranger et al. v. Federal Communica tiorrs Commission. Ko. 15714, U.S. App. D.C. 294- F. 2d 240, are impor tant in dealing with the expeditious processing of competing" appliea· tions and the problem of the chain readioD inherent in successive applications which present engineeringcont.lict~. In Clear Channel Broadcasting Service and WSM, Inc. v. United States ana Federal Communications Commission, No. 15552, 109 U.S. App. D,C. 88. 284 F. 2d 222, the petitioners. who represent 12 cJear channel class 1-A AM broadcasting stations, challenged the validity Qf the Commission's rules and standards relating to the problem of daytime skywave radiation. This type of radiation produces Interference during the transitional hours preceding sunrise and fOllowing sunset when radio waves radiated Into space and refracted back to the earth by the ionosphere gradually build up and decline from their nigbttime peak. These rules and standards, adopted in 1959 at the conclusion of the long pending daytime skywave proceeding in docket 8333, were intended to increase the protection of dass I-A statioD.s from the operations of class II stations. The gist of the petitioners' complaint was that the Com mission's final order promulgating rules and standards was inconsistent with the original afm of the proceedings. However, the court dt'dded that the Commission's rules and standards, being a reasonable balance between permitting excessive interference and imposing prohibitive re strictions on class IIstations, were adequately based on the evidence and within tbe broad powers of the Commission. In Massa-ehuseits Ray Teleca«ters v. Federal Oommunication3 Commis sion, Nos. 13896 and 13899, the eourt approved the Commission's findings and recommendation on remand in the Boston Chanuel 5 comparative TVca~,vacated the original grant to WHDH, Inc., and remanded the case for Commission reevaluation of the comparathT(>o qualifications of the applicants on the basis of the original record as supplemented by the record on remand. After hearing before a specially appointed examiner, the Commission reported to the court its findings that two of the appli cants were responsible for ex parte attempts to influence a former Com missioner and its conclusion that these activities rendered the original grant voidable and required a new comparative evaluation in which the ex parte actions would reflect adversely upon the responsible parties. On May 8, 1961, the Supreme Court denied a petition for certiorari flIed by WHDH, Inc. In WREN, Inc. v. Federal Communications CommiSSion, No. 16017, U.S. App. D.C. 290 F. 2d 743, the court held that the grant of a daytime only application for a new AM broadcast station constituted a modifi cation of license of an existlng station where conceded objectionable interference within its normally protected contonr would be caused it new station oPerated Dresunrise, and the CommiSsion's rules permit a daytime·onJy statton to operate presunrise subject to cessation upon complaint. The court, reversing the Commission, beld that the Com- 28 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION mission must either grant the appellant a hearing or condition the grant to probibit presunrise operation. In Great Lakes Broadcasting 00. v. Federal Communleationa Oom m'i8sion, No. 14638, U.S. App. D.C. 289 F. 2d 754, the court sustained the commission's determination in a comparative TV proceeding that the Commission need ascertain only whether the applicants' overall pro gram balance and structure meet the needs of the service area, and that a detailed comparison of individual programs is required only where significant differences appear in overall programming. In Lar Daly v. United State8 and Federal Oommunications Oommis sion, No. 13030 ([C.A. 7] 286 F. 2d 146), the court (Seventh Circuit) upheld the Commission's refusal to order or "recommend" that Columbia Broadcasting System afford petitioner access to its facilities to make a statement in opposition to a proposed amendment of section 315 of the Communications Act. CBS had previously presented a public service program devoted to the affirmative viewpoints of exempting var· lous kinds of news programs from the "equal-opportunities" require ment and, subsequently, had also allowed the presentation of opposing views. The Court decided the network had fulfilled its duty of pre senting a balanced presentation of this public issue of a controversial nature even though the petitioner, an unsuccessful candidate tor Mayor of Chicago, had been excluded from offering his personal views. In Triangle PUbUcations, Inc. v. Federal Communications Commis 8ion, Nos. 15970 and 15971, U.S. App. D.C. 291 F. 2d 342, the court affirmed a Commission decision denying an application for change of transmitter site by a VHF TV station where the effect of the move would be to adversely affect the operation in the public interest of UHF TV stations. Statistics During the fiscal year, the Commission was a party in 78 cases in the Federal courts. Thirty-eight of these were instituted during that period, 34 in the Court of Appeals for the District of Columbia Circuit, 3 on petition for writ of certiorari in the Supreme Court, and 1 in the U.S. District Court for the District of Columbia. The other 40 cases were pending at the beginning of theyear. All three petitions for certiorari, filed by other parties, were denied by the Supreme Court. In the courts of appeals, the Commission WllS affirmed in 20 cases and reversed in 7 others. Fourteen cases were dismissed by the appeals court on jurisdictional grounds, or remanded without decision on the merits. The district court dismissed one case. As of June 30, 1961, there were 33 cases pending in the Court of Appeals for the District of Columbia Circuit. Of these, six have been heard and are awaiting decision. No cases are pending in the Supreme Court. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 29 A tabulation of the litigation for the fiscal year follows: Suprame Court ot Court of District Court Appeals, Appeals, court Total 402(b) 4()2(a) --------------------------- Total •~_ 3 55 19 78 3 _. . .... _ o 28 5 0 g=r~~:~:t~~eg=~~~~=========::===::=::::::::::::: C~Sdismi$sedon jurlsdlctiolU\l groundsor by agree ment, or remanded. Den{al of cert10rarL . . ._. _ Cases pendin.J;! June 30, 1961.._. ...~__ 10 JO • " 7 .~._._ 10 4 1 '" 7 " 3 33 ENFORCEMENT As explained elsewhere in this report, certain types of industrial, scientific, and medical equipment, during operation, emit electro magnetic energy which may be a source of harmful interference to authorized radio communication. Part 18 of the FCC rules controls the operation of this equipment to preclude, insofar as possible, the possibility of such interference. The primary responsibility for the enforcement of part 18 lies with the Commission's Field Engineering and Monitoring Bureau. However, the General Counsel represents the Commission in any court proceedings which may be brought to enforce the rules. During late 1958 it was brought to the attention of the Commission that the widespread operation of industrial heating equipment in violation of part 18, particularly in the New York City area, was causing serious interference to air navigation radio aids, police, TV, and other services. Since many of the operators involved were not willing to cooperate voluntarily with the Commission in abating the interference and otherwise complying with the rules, it became ap parent that part 18 would have to be revised in order to expedite en forcement proceedings against those who declined to cooperate. The result was proposed rulemaking issued by the Commission On May 13,1960 (docket 13511). This notice afforded interested parties the opportunity to comment. After considering the responses of different parties, the new rules were adopted on March 8, 1961, effec tive April 30 thereafter. These new rules clarify the procedures which an operator of industrial heating equipment should follow in having it certified by a competent engineer as in compliance with the electromagnetic radiation restrictions. The principal change was the addition of a requirement that certi· fication should be made on an FCC form which provides for detailed statements as to the methods by which certification was arrived at. The form also requires the operator of the equipment to certify in 30 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION writing that he is familiar with part 18 with respect to operation of the equipment and that he has assured himself that it does not cause harmful interference; but if such interference should occur he will take prompt steps to eliminate it. A vigorous enforcement program commencing in early 1959 re sulted in the issuance of about 24 temporary restraining orders by the courts against persons who were operating industrial heating equipment in the New York City area. The publicity arising from these cases as well as stepped-up field enforcement have had im pressive results. Of six major interference cases referred to the Gen eral Counsel's office in fiscal 1961, only one offender refused to comply voluntarily with the rules. In that case a temporary restraining order was issued by the court at the Commission's request. In no instance has any court refused to issue such an order when sought by the Commission in such cases. In view of the attitude of the courts, the tightened procedures, as well as the high priority which has been given to this problem by the FCC, it probably will be less necessary in the future to seek court aid in enforcing part 18, although it will be sought when warranted. The number of cases referred to the Department of Justice for criminal prosecution under section 501 penal provisions of the Com munications Act remained at about the same level as in fiscal 1960. Approximately $2,600 in fines were imposed by the courts in addition to sentences of 1 year (suspended) and 3 years' probation. Title III, parts II and III, of the act requires the operation of radio transmitting equipment on certain types of vessels. Failure to comply with these requirements and the related FCC rules can result in the imposition of forfeitures against both the vessels in volved and their masters. Three marine forfeiture cases which had been referred to the Department of Justice were settled with the payment of $430 by the offenders into the U.S. Treasury. National Defense GENERAL The Federal Communications Commission is charged with broad national defense responsibilities involving wire and radio com munication. Section 1 of the Communications Act states that an objective in creating the FCC was "for the purpose of the national defense." Section 606 of the act provides for marshaling of wire and radio communication facilities in time of national emergency under special powersgiven to the President. By Executive Order 10312 in 1951, the FCC was directed to pre pare and put into effect plans for minimizing the nse of electromag. netic radiations of radio st..tions as an aid to navigation of hostile aircraft, guided missiles, and other devices capable of direct attack upon the United States. The Commission has since prepared such plans for the broadcast and nonbroadcastservices. The defense activities for which the Commission is responsible are under the direction of the Defense Commissioner (Robert T. Bartley) and two Alternate Defense Commissioners (Robert E. Lee, First Al ternate, and Newton N. Minow, Second Alternate) designated by the Commission. During fiscal 1961, significant accomplishments were made in vari· ous areas of the Commission's defense activities. CONELRAD PROGRAM Should the United States ever be subjected to direct enemy attack. CONELRAD and the national emergency broadcasting system will be vital to our defense. This carefully planned program would prevent an enemy from using our radio stations to assist him and yet permit emergency broadcasting such as you now hear. The voluntary par ticipation of the radio and television broadcasters of the nation at their own expense is a commendable example ot individual responsibility which is so essential to the survival of this Nation. So declared President Kennedy in an address over CONELRAD on April 28, 1961, during a civil defense drill. CONELRAD is the name given the program for controlling radio operation in event of an attack. It is a contraction of the words "OONtrol of ELectromagnetic RADiation." The prime purpose of 31 32 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION this program is to prevent radio signals from being used as beams to guide enemy aircraft or electronic missiles. In peacetime it renders an incidental, yet important, service in giving advance warning of serious threats of hurricanes and other storms, floods, and kindred acts of nature which might endangerlife and property. In time of armed emergency, it would alert all radio stations to leave the air except certain AM broadcast stations which, working in clusters in a system of rotation so as to confuse direction finding, will operate on 640 and 1240 kc to communicate civil defense and other pertinent information to the public. Some designated stations in other radio services would furnish essential emergency service under pre scribed controls. A special alerting communication system is used to send the CONELRAD alert to key broadcast stations for airing and pickup by other stations (broadcast and nonbroadcast) which monitor the key stations for that purpose. On May 17, 1961, a nationwide teletype alerting system was estab lished to replace largely the older telephone alerting system. The new system makes use of the established Associated Press and United Press-International press teletype networks, which operate on a con tinuous basis and to which most broadcast stations subscribe. A special control system makes it possible for the commander in chief of the North American Air Defense Command to utilize the two press networks for delivering the alerting message to broadcast stations. Advantages of the system are manifold-it expedites delivery of the alert, provides record copy of messages, eliminates human factors in volved in distributing the message by telephone, and makes use of an established system. As soon as the new teletype adjunct is fully tested and evaluated, the old telephone alerting system will be phased out. Tests started in September 1961. Simultaneously with implementation of the new alerting system, certain program and control lines, used to control broadcast trans mitters when operating in a cluster sequentially, are being eliminated at considerable monetary savings to the Department of Defense. This became feasible after an improved system for operating broadcast stations in a synchronous manner was developed and tested in cooperation with the U.S. Air Force. On April 28, 1961, a nationwide half-hour CONELRAD drill was held in conjunction with the Office of Civil and Defense Mobilization Operation Alert 1961. The drill was highly successful and included the participation of all radio services, except certain international, maritime, and aviation elements. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 33 MILITARY-FCC EMERGENCY COMMUNICATIONS COMMITTEE Under the direction of the Military-FCC Emergency Communica tions Committee, experimental feasibility studies were continued to evaluate and test the possibility of utilizing commercial broadcast and industrial radio facilities for emergency survival communication in event of war or disaster, to back up common carrier facilities which may be rendered inoperative by enemy action, indirect damage, or casualties of operating personnel. Evaluation reports are being submitted by the committee to the Joint Chiefs of Staff and to the FCC Chairman for review and consideration. STATE FM DEFENSE NETWORKS The Commission, with the help Rud cooperation of the State In dustry Advisory Committees and the commercial broadcasters, con tinued its efforts in establishing FM Defense Networks. These networks consist of emergency trunk circuits provided by off-the-air relay between FM broadcast stations in a contiguous area using the main channel andlor subcarrier channels, where available, for relay purposes. By this means, it is practical to provide the public with emergency communication when normal facilities are disrupted or destroyed. A notable test of the usefulness of such a system was demonstrated during Hurricane Donna in Florida in September 1960. Currently 33 States have implemented some form of EM Defense Network. EMERGENCY BROADCASTSYST~ On July 29, 1960, the Commission approved the National Industry Advisory Committee plan, "Technical Arrangements To Ensure No.· tionwide Continuity of the Emergency Broadcast System During Conelrad and the Period Following Issuance of the Conelrad Radio All Clear." This plan provides for the President and other Federal officials to conununicate with the public via the broadcast networks preceding, during, and following an enemy attack. It also assures continuity of communication between State and local civil defense directors and the general public within their respective jurisdictions. The plan is being amplified to permit the President to use the system from designated points in each State. INDUSTRY ADVISORY COMMITTEES During the fiscal year, terms of reference for the Industry Advisory Committees appointed by the Commission under the authority of see tion 8, Executive Order 10312, were approved and published. The 34 REPORT OF THE FEDERAL COMMUNICATIONS OOMMISSION National Industry Advisory Committee (NIAC), State Industry .A?-visory Committee (SIAC), and Local Industry Advisory Com nuttees (LIAC), through coordination and liaison, work toward a "national system of information dissemination by means of the Emergency Broadcast System and emergency communications, under conditions of war, or a threat of war, or a state of public peril or disaster or other National, State, or local emergency." Regional Industry Advisory Committees are also being organized. INDUSTRY RELATIONS The Commission sponsored and held an Annual Defense Com munications Seminar at Gettysburg, Pa., on August 3 and 4, 1960. Members of the National and State Industry Advisory Committees and representatives from the Department of Defense participated. The agenda included matters of mutual concern to the Commission and the communications industry dealing with emergency planning on a national scale. DEFENSE COORDINATION The FCC Division of Defense Coordination reports to the Defense Commissioner and is concerned primarily with agency mobilization planning and liaison with other Federal departments and agencies on defense matters other than CONELRAD and radiofrequency management activities. These matters include plans to assure the continuity of the Commission's essential functions in an emergency. During the year, the division provided for the training of the FCC unit of the National Defense Executive Reserve and FCC em ployees designated as communicators in the Interagency Communica tions System (U.S. Army Sigual Corps). Training included pro cedures in teletype, cryptography, and facsimile. The division also arranged for instructors and classes in first-aid procedures, firefighting and radiological detection. NATIONAL DEFENSE EXECUTIVE RESERVE The FCC unit of the National Defense Executive Reserve, estab lished pursuant to Executive Order 10660, February 15, 1956, assists in the execution of the agency's essential functions in a national emergency. It is comprised presently of 20 members who are tele communications experts from diverse branches of the communications industry and professions, and who train for the handling of myriad problems which would arise from discharging the essential functions of the FCC in the event of enemy attack. During the year, they participated in a defense communications seminar. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 35 EMERGENCY COMMUNICATIONS FACILITIES During the year, the Commission installed its Kineplex printer equipment at the agency emergency relocation site. This equipment is capable of a very rapid printout of the essential resource data from a central computer located at the OCDJ\! classified location and is used in support of FCC damage assessment activity. A mobile radio communication center, together with its associated emergency power supply, is stationed at the emergency relocation site. It is capable of providing emergency communication between the Commission's relocation site and stations in its monitoring net work and the OCDM classified location. The mobile center can handle radio teletype as well as radiotelegraph traffic. The range of the facility under normal propagation conditions is considered suffi cient to contact directly anyone of a number of the Commission's radio-equipped monitoring stations. If necessary, these stations could function as relay points to other stations. During Operation Alert 1961 and at other intervals throughout the year, these facilities were used in successful tests with other FCC stations and the OCDM classified location. Three FCC monitoring stations have or are constructing fallout protected operating positions. OPERATION ALERT 1961 Operation Alert 1961 was the eighth of a series of annual civil de fense and defense mobilization exercises. FCC headquarters in Phase I of the exercise included the assignment of a cadre of Commission task force personnel to the OCDM classified location, representation at the National Resources Evaluation Center, and the activation of the emergency communication facilities at the agency emergency re location site. Headquarters participants traveled to the OCDM classified location on the receipt of alert warnings from the OCDM. The Chairman and the Defense Commissioner went there by air transportation provided by the military, while the remaining par ticipants made the trip by automobile. The agency's essential operat ing records and documents were reviewed for currency and adequacy. Simulated emergency actions were executed in accordance with the developing situation. The line of succession of officials set forth in the Commission's rules for the Emergency Relocation Board was tested. Participation by FCC field personnel consisted primarily of dis patching FCC representatives to two of the eight OCDM regional headquarters offices and the activation of the relocation sites of nine 36 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION of the FCC district offices and the operational testing of emergency communication facilities. The Operation Alert exercise demonstrated the ability of the agency to execute its essential functions under the conditions posed by the attack assumptions. FCC FAMILY RENDEZVOUS POINT The rendezvous point is a facility for uniting FCC families in the event of separation during an emergency and for certain designated employees to receive emergency assignments. Facilities include mass feeding, and shelter and protection from radiation fallout. It is supplied with emergency communication equipment capable of link ing with other FCC stations, including relocation sites and mobile units. The facilities were tested during the year for readiness. On Memorial Day, May 30, a picnic for FCC families was held to orientate them on the routes to and facilities at the rendezvous point. Broadcast Services PROGRAMS General Broadcast regulation during the year was marked by intensified Commission effort to assure compliance with its rules and regulations, particularly in the matter of the broadcaster's responsibility to serve the public interest. A programing policy was enunciated, a closer check of station per formance was instituted-especially at license renewal time, and specia'! attention is being given to complaints and other indications of infractions. Stress was placed on the requirement that applicants and licensees ascertain the programing needs of their respective com munities and meet them with balanced programs. Applicants for new stations, major chauges, license renewals and transfers must now give local public notice of such intent. And hearings, insofar as possible, are held in the communities affected. Congress strengthened the Commission's hand to grant licenses for less than the norma,! 3-yoor period so as to, in effect, put a station on probation; also to impose forfeitures on stations for violations which do not warrant revocation proceedings. Cease-and-desist orders have now been invoked againstbroadcast violators. Additional legislation helped the Commission to deal with certain objectionable broadcast practices, such as making it illegal to accept payola for plugging records and other commercial services over the air without announcing such consideration, and providing penalties for those who "fix" quiz and other programs purporting to be based on knowledge, skill, or chance. Programing Policy On July 29, 1960, the Commission issued a report and statement of policy on programing in connection with its overall inquiry into TV network practices (docket 12782). Itsaid in part: In the fulfillment ot his obligation the broadcaster shOUld consider the tastes,. needs, and desires or the public he is licensed to serve in developing his programing, and should exercise conscientious efforts not only to ascertain them but also to carry them out as well as he reasonably can. He should reasonably attempt to meet all such needs and interests on an equitable basis. Particular areas ot interest and types or appropriate service may, ot course, dtll'er from community to 37 38 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION community, and from time to time. However, the Commission does expect its broadcast licensees to take the necessary steps to inform themselves of the real needs and interests of the areas they serve and to provide programing which in fact constitutes a diligent effort, in good faith, to provide for those needs and interests. The major elements usually necessary to meet the public interest, needs, and desires of the community in which the station is located as developed by the industry, and recognized by the Commission, have included: (1) opportunity for local self-expression, (2) the development and use of local talent, (3) programs for children, (4) religious programs, (5) educational programs, (6) public affairs pro grams, (7) editorialization by licensee, (8) political broadcasts, (9) agricultural programs, (10) news programs, (11) weather and market reports, (12) sports prO!,'Tams, (13) service to minority groups, (14) entertainment programing. The elements set out above are neither all-embracing nor constant. We reemphasize that they do not serve and have never been intended as a rigid mold or fixed formula for station operation. The ascertain ment of the needed elements of the broadcast matter to be provided by a particular licensee for the audience he is obligated to serve remains primarily the function of the licensee. His honest and prudent judg ments will be accorded great weight by the Commission. Indeed, any other course would tend to substitute the judgment of the Commission for that of the licensee. For the first time, the Commission denied an application for a new broadcast station solely on the grounds of inadequate program ing preparation. On June 28, 1961, it turned down the application of Suburban Broadcasters for a new FM station at Elizabeth, N.J., because it failed to determine the programing needs of the com munity intended to be served. TV Network Inquiry Under its order of February 26,1959 (docket 12782), the Commis sion continued the phase-by-phase study, by means of public hear ings, of the TV network program selection process. In October 19(;0 hearings were resumed at Los Angeles and exteu sive testimony was obtained from producers of TV films. Witnesses included spokesmen for several leading motion picture studios, inde pendent producers, and program "packagers," talent agents and broadcast personalities involved in TV film production. A major talent representation organization, which is also a TV program packager and film producer, refused to testify in public. In March 1961 the Los Angeles hearings were continued and testimony was re ceived from various persons who had been engaged in placing "hidden commercials" in TV progTams. The reluctant talent organization witness again refused to testify. The Commission recommended that the Department of Justice seck criminal sanctions. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 39 In June 1961 hearings in New York City received testimony from TV writers, directors, producers, and broadcast personalities concern ing the status of live and taped programing. In addition, they com mented on the development of drama, documentary programing, and "balance and diversity" in present-day TV schedules. These wit nesses included persous engaged in the creation, production, writing, casting, sale, and licensing of live TV programs for network showing. Because of the free expression of views at this hearing, the Commission warned at its conclusion that the testimony given should not be the basis for retaliatory action by any FCClicensees. Additional proceedings began in September to hear representatives of national advertisers who sponsor many of the TV network pro grams. After a review and analysis of the entire record, the national TV networks will be called to testify as to the roles, policies, and prac tices they pursue in the program selection process and other relevant matters. Concurrent with these hearings, the Office of Network Study has commenced a study of the nature and scope of network financial and proprietary interests in TV programing. It may assist in deter mining to what extent, if any, the networks employ their power of program selection for their own economic benefit. COMPLAINTS Publicity given to congressional inquiries into various broadcast practices, the Commission's programing inquiry and related actions and pronouncements, and the industry's promise and efforts to im prove program content, have raised the public voice in protesting many aspects of station and network programing. Mail of this nature to the FCC has correspondingly increased. Itis handled by a new unit in the Broadcast Bureau to deal especially with complaints and compliance matters. During the last 3 months of calendar 1960, the mail volume received by this division totaled nearly 1,150 pieces (not including 1,270 letters objecting to a single program a network rodeo presentation). For the first 5 months of 1961, this mail increased to about 4,300 letters. Of the 8-month total, nearly 1,800 complained about program bal ance, individual programs, profanity, program cancellations, and over 500 complained of excessive crime and violence on TV; some 390 others objected to slanted news and editorializing; 550 complained that com mercials were false or misleading, constituted lotteries, or disapproved advertising of liquor, tobacco, and underwear; nearly 350 complained about contests, publicity stunts, and other business practices; nearly 250 objected to excessive length and nature of commercials; and 100 614899--61,------40 40 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION alleged payola practices. Of the remainder, about 480 inquired as to Commission rules on various aspects of programing, and 570 were largely from civic and other groups lauding FCC efforts to improve programing. (The latter figure does not include letters received by Chairman Minow in response to his National Association of Broadcasters speech-now over 6,000.) During fiscal 1961, more revocation proceedings were instituted and more renewal applications were designated for hearing than in any other year in the Commission's history. In addition, the Commission invoked a cease-and-desist order for the first time in a broadcast case, also the new sanctions of short-term renewal and forfeiture. The first year of operation of the complaints and compliance unit was devoted largely to developing facts about payola practices, but it also found time to inquire into hidden ownership, unauthorized trans fers of control, misrepresentations in applications and other statements to the Commission, and violations of various rules and regulations. More effective liaison was established with the Federal Trade Com mission in matters relating to false and misleading advertising. At the close of the year, action on 558 applications by regular broad cast stations for renewal of licenses had been deferred pending resolve ment of a variety ofquestions. They included 446 AM, 76 FM, and 36 TV stations. (The licenses of these stations had expired in the mean time, but the law permits them to continue operating pending disposi tion of their respective cases.) HEARINGS During fiscal 1961, the Commission ordered certain stations to show cause why their licenses should not be revoked, and designated the re newal applications of some other broadcast licenses for hearing. The great majority of these proceedings relate to questions of concealment or misrepresentation on the part of the licensee, failure to live up to programing representations, and promoting fraudulent contests. Hearings were or are to be held in the communities concerned. A list follows: Palmetto Broadcasting Co. (dockets 13985-13986), bearing at Kings tree, S.C., on renewal and license applications for station WDKD there, concerned broadcast of allegedly vulgar, suggestive, and indecent material; misrepresentations made to the Commission; the extent of licensee control exercised over programing; the responsiveness ot the licensee's programing to meet the needs of the area; and Whether the licensee possesses the necessary qualifications to be a licensee. Wireline Radio. Inc. (docket 13972), scheduled at Lewisburg, Pa., involves question ot unauthorized transfer of control and misrepresen tations with respect to correction of technical deficiencies in station WITI' operations. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 41 KWK Radio, Inc. (docket 13827), revocation proceeding scheduled at St. Louis. Mo., involves questions of fraudulent contests conducted by the Ueeusee with re$pect to both the biding ot prizes and certain bonus <:lub operations. Gila Broadcasting Co. (dockets 13598 et a1.). Involves renewal applicR t1om; at five AM stations and one FM station in Arizona. Bearing was held in Phoenix on issues with respect to concealment of ownership and unauthorized transfer otcontrol. Eleven Ten Broadcasting Corp. (dockets 13622--13623), hearing beld in Pasadena, Calif., on application for renewal of license of RRLA on issues regarding fraudulent cOJltests. mislogging of programs, whether programing representations were made in good faith and whether an alien exercised control of the licensee contrary to section 310 of the Communications Act. Mandan Radio Association (docket 13855), revocation hearing held in Bismarck, N. Dak., on issues respecting unauthorized transfer of con trol, misrepresentations, and concealment of ownership of station KBOM. Leo JoseDh Theriot (docket 13925), revocation proceeding involves station KLFT, Golden Meadow, La.; hearing held at New Orleans on issues roDcerning misrepresentations and conceslment snd failure to comply with various technical rules. Seaway Broadcasting Co., Inc. (docket 14051), revocation proceeding scheduled to be held in Chicago, nt, on issues of misrepresentation and failure to make fUll disclosure of ()wnership of station WMPP. It is expected that even a greater number of these types of hearings will be held in the field. They involve important public interest issues bearing directly on the qualifications of licensees and require the as signment of a minimum of two FCC counsel who generally must spend many days both in the field and 'Vashington in connection with a hear ing. As the result, one-third of the attorneys in the Hearing Divi sion have been in the field at the same time on hearing assignments. This has made it ditlicut for the remaining staff to handle without un due delay the numerous pleadings and hearings for cases held in Washington. PROGRAM INFORMATION FORM On February 17, 1961, the Commission proposed rulemaking (docket 13961) looking toward amending section IV of the broadcast appli cation forms to require, among other things, a statement by the appli cants as to measures taken and efforts made by them to determine the tastes, needs, and desires of the communities served and the manner in which they propose to meet those needs and desires. The proposed changes would require a description of the service area, its needs and interests, the opportunities afforded community expression, specialized programing, more information about the pres entation of controversial issues of public importance (including edi- 42 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION torializing), data on program types, time devoted to commercial spot announcements, and measures taken by applicants to insure the main tenance of appropriate programing and advertising standards. The Commission concluded that certain revisions of its proposals were de sirable. Accordingly, on May 12, 1961, the date for filing comments was extended until further order. The Commission reviewed the com ments already received and held informal conferences with industry representatives and other interested parties. The principal objective of these discussions was to insure that questions proposed by the Com mission could be answered on the basis of reasonable efforts and rec ords to be kept by the applicants. A Notice of Further Proposed Rulemaking was issued on July 7, 1961, and on the following Octo ber 6 a public meeting was held with the National Association of Broadcasters to further discuss the contemplated revisions. SPONSORSHIP IDENTIFICATION On September 13, 1960, a bill (S. 1898) became law and amended section 317 of the act. Among other things, it redefined situations in which broadcast licensees must make sponsorship identification an nouncements. In addition, the new law (Public Law 86-752) added a new section 508 to the act requiring disclosure by persons other than broadcast licensees who provide or receive valuable consideration for the inclusion of any matter in a program intended for broadcast. The persons to whom section 508 relate had previously not been di rectly subject to provisions of the act. In adopting the new legislation, Congress cited 27 examples to illustrate the intended effect of the proviso clause in amended section 317(a). These examples were listed by the Commission in a public notice of September 21, 1960, at which time the Commission stated that until adoption of the new rules, it would interpret the new statute and existing rules in the light of these examples. Subsequent, to enactment of this legislation, the Commission held two informal conferences with interested parties to discuss what would be a reasonable approach to implement this law. The first confer ence, on September 21, 1960, was with representatives of the Motion Picture Association of America, the Alliance of Television Film Pro ducers, Inc., and several of the latter's member production organiza tions. The other, on November 4, 1960, was with representatives of the networks and the National Association of Broadcasters. On April 27, 1961, the Commission proposed rulemaking on the subject (docket 14094). A question of concern to the Commission was the applicability of the new statute to films shown on TV but not produced exclusively for TV. To avoid any uncertainty, the Com mission proposed to rule that any films made for commercial dis- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 43 tribution after the effective date of the proposed rules would be pre sumed to have been produced for laterTVshowing. The Commission proposed 9 interpretations of applicability of spon sor identification in addition to the 27 congressional examples. At the close of the fiscal year, the comments in this proceeding were being reviewed. POLITICAL BROADCASTS Congress amended section 315(a) of the act, effective September 14, 1959, to exempt from the "equal opportunities" requirement ap pearances by legally qualified candidates on bona fide newscasts, news interviews, news documentaries, or on-the-spot coverage of news events. In addition, the Commission is required to include in each annual report to Congress "a statement setting forth (1) the informa tion and data used by it in determining questions arising from or con nected with such amendment; and (2) such recommendations as it deems necessary in the public interest." The procedure generally followed by the Commission with respect to section 315 complaints is as follows: Immediately upon receipt a complaint is acknowledged and the complainant informed that the Commission is communicating with the licensee. ' At the same time, the licensee is advised of the complaint and directed to reply within. a given time. Such notice is given by telegram, letter, or telephone depending on the date of the election. 1Vhen necessary, and prac ticable, the licensee is informed of the specific factual data required to reach a determination. All section 315 matters are given priority consideration. When a determination is made, both the licensee and the complainant are ad vised by telegram, letter, or phone as may be required by the circum stances. In deciding whether a particular "use" of a station's facilities by a candidate comes within the section 315 exemptions, the Commission seeks factual information bearing on the determinative factors. For example, in a case in which the applicability of the exemptions was in issue, the Commission inquired into the following matters: Whether the candidate requesting "equal opportunities" was a "legally qualified candidate"; the format and content of the program on which he ap peared; whether the program was "regularly scheduled," and if so, the times of the day and week; when the program was first initiated and when the candidate who first appeared on the station commenced his appearances; whether controversial issues were dislOOk the use of station facilities under the "fairness doctrine." Since the licensee is permitted more discretion in applying the "fairness doctrine" than the "equal opportunities" provision, determinations as to compliance with the former are more difficult and time consuming. ASSIGNMENT OF LICENSES The consideration paid for broadcast properties continued to in crease. Record prices for AM stations were reached on negotiations to sell WMGM, New York City, to Crowell-Collier Broadcasting Corp. for $10,950,000 (since broken off), and to sell WINS, in the same city, to Storer Broadcasting Co. for $10 million (which faces a hearing). A record price was paid for a UHF TV station (ICJEO, Fresno, Calif., which sold for $3 million). On April 25, 1961, the Commission gave notice that a consolidated hearing appeared necessary on applications of (a) the National Broad casting Co. to assign WRCV, AM and TV, Philadelphia, to RICO General, Inc., in exchange for RICO's WNAC, AM, FM, and TV, in Boston; (b) NBC to assign WRC, AM and TV, Washington, to RICO; (a) RICO to assign WGMS, AM and FM, Washington, to Crowell Collier Broadcasting Corp.; and (d) NBC to purchase ICTVU (TV), San Francisco. Also involved in this proceeding are NBC's applica tions for renewal of licenses for the Philadelphia and Washington stations and competing applications by the Philco Corp. and the San Francisco Chronicle. Westinghouse Broadcasting Co. and the Chron icle were to be made parties to the hearing. The Commission pro posed, inaddition to the comparative considerations, to include issues relating to the qualifications of NBC and RKO; antitrust actions in volving NBC and/or RCA; conduct and activities of NBC to pur chase stations in Boston and San Francisco; possible trafficking in licenses by NBC, RICO, or ICTVU (TV); programing operations of Crowell-Collier; and multiple broadcast interests of RICO. The application for the sale of WGMS to Crowell-Collier was later with drawn. Due to the frequent turnover of a large number of broadcast stations and the concern which this has occasioned to Congress and the Com- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 47 mission, proposed rulemaking issued on December 9, 1960, looks toward hearings in transfers where a station has been held less than 3 years and a finding cannot otherwise be reached that changed circum stances justify the sale. The Commission is continuing its study of "trafficking" in broadcast licenses and is collection data on all station sales. The fiscal year saw an increase in the number of licensees who were selling a minority or even a majority of their shares to the general public. Such sales are normally made to raise capital for improving facilities or acquiring additional facilities. LOCAL NOTICE REQUIREMENT Public Law 86-752, approved September 13, 1960, requires, among other things, that applicants for new stations, major changes in exist ing stations, station sales and license renewals, also designations for hearing, give local public notice of such applications. Newspaper publication is required for applications for new or major changed facilities and hearings; and broadcast announcement for modifica tion, assigmnent, transfer, or license renewal. The Commission, on November 16 thereafter, amended its rules accordingly. On July 26, 1961, it clarified these requirements with respect to type of publication and time of broadcast announcement. In the case of notices relating to filing or designation for hearing of renewal applications, additional statements are required of the appli cant to inform the local community that those who desire to do so can write to the Commission to call its attention to facts for considera tion in determining whether a grant of an application would serve the public interest. On August 1, 1961, the Commission amended its rules to provide that whenever the only application for a broadcast facility in a community is sought to be withdrawn by agreement between compet ing applicants, and the withdrawal would impede the distribution of radio service, the withdrawing applicant shall give local public notice of the proposed withdrawal so that new parties may file substitute applications. OTHER 1960 ACT AMENDMENTS The Commission also implemented other changes required by Public Law 86-752. On September 28, 1960, the rules were amended to provide for issuing or renewing a broadcast station license for less than the statutory 3-year period in cases where the Commission deems it in the public interest to do so. 48 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION On November 16 thereafter, rule amendments eliminated the re quirement for section 309 (b) letters of notification prior to designa tion for hearing and the former "protest" procedure. It established a new pregrant procedure for handling objections. On January 11, 1961, a new section 311 (c) was adopted to insure that the Commission is apprised of all agreements proposing to re move a conflict between mutually exclusive broadcast applications. Applicants are required to furnish information which will enable the Commission to determine whether effectuation of such an agree ment would serve the public interest. The new rule is designed to curb "payoffs." On February 7, 1961 the rules were changed to reflect amendments to sections 503 and 504 of the act which provide for monetary for feitures (payable to the U.S. Treasurer) against a broadcast licensee for willful or repeated infractions of the rules. (The first notice of such a forfeiture was issued March 22, 1961, against the Crowell Collier Broadcasting Corp. for apparent liability in the amount of $10,000 for continued improper technical operation of its station KDWB, St. Paul, Minn. On July 26 thereafter an order of forfeiture of $2,500 was issued.) TELEVISION lTV) BROADCAST SERVICE General Television is an integral part of American life. As of .June 30, 1961, it reached into 90 percent of this country's homes. Some 54 million TV receivers were in t,he h",nds of the public. Of the number authorized to go on the air, 456 VHF "'nd 76 UHF commercial stations were operating in 273 markets at the end of the fiscal year. UHF Promotion Yet, one of the most perplexing questions still facing the Commis sion is the TV allocations problem-how to get at least three or four signals into every home and to provide for the future growth of video. It is impossible to have a competitive TV system for the N",tion's growing needs in the commercial and educational fields with the present 12 VHF ch"'nnels alone. Unless prospective broadcasters can be interested in utilizing the 70 lffiF channels, the TV system will have no room in which to expand. A general study has explored various possibilities for major long range changes. One possible basic course of action is the shift of all or a major part of TV to the UHF band. The FCC has undertaken a large-scale program of experimentation and demonstration in Now York City to compare VHF and UHF transmission side by side. It is hopeful that from this test will grow", renewed interest in the REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 49 feasibility of adequately covering major population centers through the use of improved UHF transmission and receiving equipment. The Commission has also requested legislation which would require that all TV sets shipped in interstate commerce be equipped for UHF as well as VHF reception. If all-channel receivers are available throughout the Nation, a substantial incentive will be provided for revived interest in UHF broadcasting. Action has also boon taken to improve opportunities for effective competition among a greater number of stations in individual mar kets. In some cities, tbe Commission is endeavoring to do this by deintermixture, namely, deleting VHF channels in order to make the area completely or substantially UHF; in other cities, it is seeking to squeeze in VHF channels at less than standard spacings. In a substantial step to encourage more general use of the UHF channels, the Commission on July 28, 1961, proposed a comprehensive program (docket 14229) which would- Eliminate the UHF table of assignments and permit application in a given community for any workable UHF channel without the neces· alty for rule making to change the assignment table. Permit dual operation of both UHF and VHF stations in the same city by those already broadcasting in the VHF band. Reserve a pool of UHF channels for future use by existing VHF broadcasters and educational Interests. Adopt a first-eome.ftrst·served policy so that a qualified application tor,a UHF channel may be granted without comparative bearing against possible competition for the channel. Relax various technical requirements to reduce costs In the con struction and operation of a UHF station, and Employ UHF translators to bring TV service to remaining white areas. As a part of this program, the Commission additionally proposed to establish competitive balance in particular communities where UHF service is struggling for survival against VHF competition. In Madison, ·Wis.; Rockford, Ill.; Hartford, Conn.; Erie, Pa.; Bing hamton, N.Y.; Champaign-Urbana-Danville-Springfield-Decatur, Ill.; Columbia, S.C.; and Montgomery, Ala., the Commission would remove the single VHF assignment and make each of these markets all UHF. (During fiscal 1961, Fresno and Bakersfield, Calif., were deintermixed to make the San Joaquin Valley a UHF area.) At the same time, and in order to meet pressing need for a third competitive facility in some of the largest two-station markets, the Commission added new VHF channels in Syracuse and Rochester, N.Y., and in Grand Rapids, Mich., and proposed to add a new VHF channel at less-than-minimum mileage separation in Baton Rouge, La.; Birmingham, Ala.; Charlotte, N.C.; Dayton, Ohio; Jacksonville, Fla. ; Johnstown, Pa.; Knoxville, Tenn.; and Oklahoma City, Okla. 50 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION In July 1961, the Commission sponsored an exhibition at 'Washing ton of UHF video equipment in which leading receiver and UHF translator manufacturers as well as educational organizations partici pated. The FCC provided an information booth at which both its own and industry engineers answered questions regarding UHF trans missions and reception. This exhibit was keyed with the advent of a UHF educational station at the Nation's Capital. Translators, Repeaters, and Boosters In an effort to bring TV to areas not getting adequate service, the Commission has since 1956 authorized UHF translator stations. Translator stations provide a means whereby the signals of a regular TV station may be received, converted (translated) to another chan nel, amplified and retransmitted at comparatively low cost, for reception in a small community where other direct reception is unsatis factory. On .Iuly 27, 1960, the Commission established regulations for the operation of low power (1 watt) translators in the VHF band (docket 12116) and, at the same time, scheduled a procedure enabling existing unauthorized repeaters (boosters, similar t.o translators in nature and operation) which were constructed before July 7, 1960, to apply for temporary authorization to continue operation until Octo ber 31, 1961, pending their compliance with the new translator re quirements. Members of the Commission's broadcast, legal, and field engineering units held a series of meetings in western areas where most of the unlicensed booster stations are located to assist their oper ators obtain interim authority while preparing to convert to the new low power VHF translator stations. As of June 30, 1961, the Commission had authorized 703 TV trans lator stations (345 UHF and 358 VHF), and had 705 applications (45 UHF and 640 VHF) for others on file; also, 1,044 TV repeater authorizations were issued and 39 such applications were pending. It appeared that some VHF translator applications were being filed by VHF stations for the purpose of extending the latter's cover age beyond normal service areas, so the Commission on June 29, 1961, proposed rules which would preclude licensing VHF translators to TV broadcast stations except under prescribed circumstances. On May 17, 1961, UHF translator licensees were permitted to use ol\-channel "boosters" to supplement service, particularly in areas Mable to obtain good reception because of terrain barriers. At the close of fiscal 1961, one UHF booster application had been granted and another was pending. National Spot Sales Representation by TV Networks Pursuant to a recommendation of the 1957 network study report, the Commission adopted a rule prohibiting TV stations other than REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 51 those licensed to a network from being represented in national spot sales by an organization which operates the network with which the station is affiliated. On March 2, 1961, the appeals court unani· mously upheld the Commission action. (See "Litigation".) The af fected stations must conform by December 31, 1961. TV Option Time On September 14, 1960, after a public hearing, the Commission concluded that the option time rules should be amended to prohibit TV stations from optioning to networks more than 2% hours in each of four time segments (docket 12S59). At the same time, it made other changes with respect to option-time arrangements to allow for greater selection flexibility by stations. The effect was to permit any TV station which had contracted with a network to carry a particular program series to reject such series on the grounds that it was unsatisfactory, unsuitable, or contrary to the public interest. The new rules also provide that a TV station may substitute for a network program one \vhich, in the station's opinion, is of greater local or national importance. The Commission's decision was appealed to the court. On April 19, 1961, the Commission announced its intent to reconsider its previous action and the court remanded the proceeding at the Commission's request. On May 4, 1961, the Commission invited comments on whether time optioning is in the public interest and, if found contrari wise, what rule should be adopted to prohibit the practice. Subscription TV On June 22, 1960, the Commission received an application (the first) to conduct trial subscription TV operations over WHCT on channel IS at Hartford, Conn. In the following October it conducted a hearing on issues to assess the proposal's compliance with the con ditions for trial operations set out in the third report on subscription TV released March 24, 1959 (docket 11279), and to hear objections by five Connecticut motion picture theater owners and the Connecticut Committee Against Pay TV. Upon consideration of the record of the 5-day hearing and subse quent pleadings, the Commission on February 23, 1961, granted the requested trial authorization. In doing so, it found that the trial operation posed no threat to the free TV services available at Hart ford. An appeal from the Commission's grant is pending in court. Among conditions laid down by the Commission was that the Hart ford toll-TV test should start no later than 6 months after the de cision (i.e., by August 23, 1961), but, on good cause shown, the commencement date was extended to July 1, 1962. 52 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION No other completed application for a subscription television trial authorization has been received. Noncommercial Educational TV During the 9 years since 1952, when it first provided for noncom mercial educational TV operation, the Commission has made special effort to encourage the development of this service. Though 273 channels are reserved for this purpose, only slightly more than 50 ETV stations are on the air. Ilowe-ver, their success is an incentive to other educators to speed their plans to take advantage of this modern visual teaching medium. Two cities each had two operating ETVstations~OklahomaCity, Okla. (one on a commercial channel), and Pittsburgh, Pa., and in 1961 a second channel was reserved in Ogden, Utah, and Milwaukee, 'Wis. The Commission is considering proposals to add a second reservation in Albany, N.Y. Several petitions to delete educational reservations have been denied and a number of reservfLtions have been added to se-veral communities, including Presque Isle and Augusta, lIIaine, and Newark, Ohio. Alabama, Connecticut, Georgia, Ohio, and Texm;; h.aye thref' or more operating ETV stations. Florida has an ETV network of 5 VHF stations and h>!s asked that 12 additional UHF channels he reserved for this educational network. On June 15, 1961, the Greater 1Vashington Educational Telcvision Association received a construction permit for the first ETV station to serve the Xational Capital are>!. It will operate on a UHF channel in an area where four VI-IF commercial stations are on the air. On~fa.rch29, ID(H, the- Commission undertook an inquiry into means to make anlilable for cdncationul use one of the seven VHF channels which serve the :IIew York City and Los Angeles metro po1itfin areas. On June 30, 1961, an application was filed to assign the license of WNTA-TV,,, commercial station, to a New York City citizens gronp organized as Educational Television for the Metropolitan Area, Inc., which proposes to operate it. as an edueational station. The sale was opposed by the State of Xew .Tersey. The station operates on channel 1~,which is assigned to New Jersey, but (as in the case of the other six VHF stations in New York City) has its transmitter atop the Empire St.ate Building to serve a large area. including northern New .Tersey. The Commission approved the transfer on October 25, 1961. Xew .Tersey appealed to court but Inter w-ithdn'w. On October 2:;, 1961, the Commission established an Educational Broadcasting Branch, reorganizing its former Economics Division as the Hesearch and Education Division for that purpose. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 53 Airborne TV Instruction Test Purdue University reported substantial progress in activating an experimental system of TV instruction using airborne transmitters operating on UHF channels 72 and 76. This is pursuant to a Decem ber 22, 1959, Commission grant for the purpose of air-telecasting educational courses to elementary and secondary schools, colleges, and universities located within 200 miles of Montpelier, Ind. The project employs two De--6 AB airplanes, each with two UHF transmitters, flying, one at a time, in a 10-mile circle at an altitude of 23,000 feet over central Indiana. Test flights were made during the first 2 weeks of May 1961. Be ginning Jnne 19, the airborne transmitters were used for 3 weeks to provide informaton on the courses of instruction to summer work shops for school teachers and administrators. Good-to-excellent re ception was reported from places 200 miles distant from the aircraft. Regular tclecasts for the school year 1961-62, 4 days a week and 6 hours a day, were scheduled to commence September 11, 1961. The~fic1w('stProgram on A.il'borne Television Instruction, a co operating organization, has prepared video tape for 15 courses con sisting of 1,344 telecasts including such subjects as arithmetic; French, Spanish, and Russian languages; elelnentary and general science; music; world history and geography; American history; government and civics; and art. These tapes will be made available to noncommercial educational TV stations and educational cJosed circuit installations throughout the country. Also, ETV stations located within the service areas of the airborne transmitters will be granted permi.ssion to rebroadcast their sibFl1als. TV Agreements With Canada and Mexico In March of 1961 a "working arrangement" was agreed to with Canada to deal with certain technical problems which have developed in administering the 10;')2 joint agreement concerning T\t assignments within 250 miles of the border. In October 1060 a general basis of agreement was reached with Mexico of assignment of VHF stations within 250 miles of that border and negotiation of details continues. There is a joint 1958 agreement between the two countries on UHF assignments within 200 miles of the border. FREQUENCY MODULATION IFMI BROADCAST SERVICE General Increased interest in FM broadcast outlets is being evinced by mounting applications and more competition for facilities. This is due, in large measure, to the growing scarcity ofA~foutlets, the opportunity for ]":\1 stations to obtain additional revenue by furnish- 54 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION ing subsidiary services and, more recently, by the blanket authority given them to engage in stereophonic broadcasting. The growing number of FM stations and certain changes in the FM rules made it necessary to confer with Canada looking to possible modifications of a 1947 agreement which governs the assignment of FM stations along the border. Because of potential detrimental effect by portable FM receivers on electronic equipment on aircraft, the Federal Aviation Agency banned carrying such receivers aloft beginning May 25, 1961. Commercial FM As of June 30, 1961, there were 1,092 commercial FM stations authorized; of these, 889 were on the air. The previous high in authorizations was about 1,020 in 1948, from which peak the number decreased to around 550 in the middle 1950's. In 1957 the upward trend began and is still continuing. Of the operating commercial FM stations at the close of fiscal 1961, 275 held subsidiary communi cations authorizations. During the year, the first commercial FM grant was made for 'Vyoming. All other States now have commercial FM stations ex cept North and South Dakota, Montana, and Vermont. Educational FM In contrast to commercial FM, the noncommercial educational FM broadcast service has continued a slow and steady increase since its inception. As of June 30, 1961, of 199 stations authorized, 186 were on the air. The rules were amended during the year to enable educational FM stations to engage in subsidiary services of a noncommercial nature, such as programing for classroom and other specialized audiences, relaying programs between educational FM stations, and remote cue ing and other functions relating to station operation. The changes permit these stations to present material for which the only consid eration is the matter furnished and/or the payment of any line charges involved. Stereophonic Broadcasting On June 1, 1961, the Commission amended its rules to permit the transmission of stereophonic programs by FM broadcast stations on a multiplex basis. Any FM station may transmit these programs without further Commission authorization. A subcarrier is used in conjunction with the main channel operation of stations offering the service. The Commission considered several proposed "stereo" sys tems, but adopted the one which provided the best quality of trans mission with only negligible effect on the listener who is receiving only the main channel program. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 55 By early July 1961, approximately six stations had begun stereo phonic broadcasting and others were expected to follow. It is antic ipated that FM stereo receiving equipment will appear on the market in the relatively near future. While FM stereo must be regarded as an adjunct to aural FM serv ices, the Commission is hopeful that it will add a new dimension to FM listening. On September 27, 1961, the Commission denied petitions to insti tute proceedings looking toward adoption of stereo standards for AM broadcast stations at this time. Change in FM Rules The need for a revision of the FM rules is due to many technical and other developments since this service was started 20 years ago. The demand for FM facilities is now such as to pose many of the prob lems which beset AM broadcasting. Therefore, on June 29, 1961, the Commission started an inquiry looking toward revamping the FM rules. The considerations relate to two general questions: (1) whether the present system of FM station assignmenta is the best one for optimum development of this important service; and (2) how the development and expansion of FM can be achieved without the administrative burdens and delays inherent in present AM station assignment process. The Commission specifically proposes an overall plan of new FM station assignments based on minimum mileage separations with re spect to existing stations and also, to some extent, on maximum sep arations. Three classes of commercial FM stations are proposed----{)ne with a nominal protected service range of 25 miles, another of 50 miles, and the third of 100 miles. In addition, educational stations would be divided into two classes-one of low power (10 watts) and the other with powers and ranges equal to the commercial stations. It also will consider whether duplication of AM programs on FM stations should be curtailed. In order to expedite application processing and to remove many administrative burdens on the part of the Commission and handicaps for the prospective applicants, a simple go-no-go type of assignment principles is contemplated. Many other technical and procedural changes are proposed to update the FM broadcast service to accom modate its growth in the most efficient manner possible. STANDARD IAMI BROADCAST SERVICE General AM radio continues to withstand the onslaught of TV. As of June 30, 1961, there were 3,602 AM stations on the air and 155 under construction. 6W89~1---6 56 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Cia.. IV Station. On May 28, 1958, the Commission increased the limit on daytime power of class IV (local) stations from 250 watts to 1 kilowatt. The great majority of resulting applications involved interference prob lems in violation of section 3.28(c) (10-percent rule). So the Com mission, on December 14, 1960, exempted existing class IV stations seeking daytime power increases from that provision. This helped in processing class IV applications, but a substantial backlog delayed realization of the public benefits to be derived from increasing the daytime power ceiling on local channels. It also delayed the process ing of other classes of applications. There is a total of 1,110 class IV stations. By March 13, 1961, 308 applications to increase to 1 kilowatt had been granted and 343 were pending. Therefore, on May 3, 1961, the Commission took further steps to expedite the granting of these applications. Section 1.354 (c) was amended to permit simultaneous consideration of related pending class IV applications for increased power, thus eliminating much of the delay and many hearings. Clear Channel. In initiating this proceeding (docket 6741) in 1945, the Commission noted that there are still large areas of the United States which had no radio service during the daytime and no primary radio service at night. The basic question presented was whether any changes should be made in use of these clear channels. There are 23 domestic class I-A frequencies which are given complete nighttime protection from objectionable cochannel interference to enable them to render wide area nighttime secondary (skywave) service to remote communities and rural areas not reached by other AM stations. Only a little more than 50 percent of the land area of the United States receives a primary (groundwave) nighttime AM service. Parties to this proceeding have, in a voluminous and complex record, advocated numerous and diverse approaches to the problem. There are two general divergent views. One urged that class I-A stations could provide a satisfactory signal to wide areas through the use of increased power and by limiting the operation (during night time hours) of cochannel stations. The conflicting view contended for an increase in the number of unlimited-time stations on the clear channels. Since the original record in this proceeding, numerous changes have occurred in the broadcasting industry. TV expanded and radio listen ing habits changed substantially. There were 900 operating AM sta tions when this proceeding began; in 1958 there were 3,000. Therefore, in the latter year the Commission reopened the record and invited REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 57 comments on proposals to open 12 specified clear channels for addi tional unlimited-time assignments and to reserve for later determina tion proposals to increase power on the remaining clear channels. Subsequently, in 1959, it asked for comments on a proposal to assign new class II stations on 23 clear channels, the new stations to be located in certain selected and designated States. After considering the subsequent record, the Commission on Sep tember 13, 1961, concluded the clear-channel proceeding by rule amendments opening the way to the assignment of one unlimited-time class II station on each of 13 clear channels, under controlled condi tions, to provide service to underserved or white areas. The action will not affect present use of the remaining 12 clear channels. NARBA and United States-Mexican Agreements Within the past year, two international agreements concerning AM broadcasting entered into force. One was the North American Regional Broadcasting Agreement (NARBA), effective April 19, 1960, between Canada, Cuba, and the United States and, on May 4, 1961, with the Dominican Republic. The other was the United States Mexican agreement which became operative June 9, 1961. They com plement each other and afford a sound basis for continued coordination of AM broadcast assignments among the North American countries. On June 21,1961, and on July 12, 1961, the Commission amended its rules to conform with the above agreements. Except in certain areas near the Mexican border, U.S. class II stations on Mexican I-A chan nels may now operate with power up to 5 kilowatts instead of the former ceiling of 1 kilowatt. The new rules contain substantially the same provisions as now con cerning consideration of applications by class IV stations to operate with up to 1 kilowatt power daytime, even though under NARBA the ceiling on class IV stations is 250 watts, both daytime and nighttime. Such applications will be considered where the proposed operation would not cause objectionable interference to a foreign station and where the applying station is not located within certain areas near the Mexican border or in Florida close to Cuba. INTERNATIONAL BROADCAST STATIONS International (or high frequency) broadcast stations extend service to foreign countries. There were two such non-Government stations in operation and one under construction in the United States. KGEI, at Belmont, Calif., directs programs to Central and South America and has an application to broadcast to Japan. WRUL, Scituate, Mass., now operated by Metro Media, Inc., broadcasts to Europe, 58 REPORT OF THE .FEDERAL COMMum:CATIONS COMMISSION Africa, and Central and South America. Station WINB, Red Lion, Pa., indicates it will commence operations shortly. One experimental station in Cincinnati, Ohio, USes an international broadcast frequency to provide a continuous signal used in propagation studies by the National Bureau of Standards. All other international broadcast facilities in the United States are operated by the U.S. Information Agency. MISCELLANEOUS BROADCAST SERVICES There are more than 6,300 broadcast adjuncts. About 5,000 of these are used for remote pickup purposes; others link studios and transmitters, and still others provide facilities for development and experimentation. On July 27, 1961, the Commission proposed doing away with the separate classifications of AM, FM, and TV (aural) studio-transmitter links and combining them in a single category to becalled aural broadcast STLstations. STATISTICS Current Broadcast Authorization. At the close of fiscal 1961, outstanding broadcast authorizations of all classes totaled 13,845, representing a net gain of 2,666 collectively for the year. A breakdown of authorizations for the different classes of broadcast services at the yearend follows: June 30, 1900 June 30,1961 Increase 0' (decrease) Commercial AM •~_••~••__ 3,581 3,757 176 Commercial TV ._. .____ 653 650 (3) TV translators •• 302 703 401 TV repeaters ". ._. • •.• ._ 0 I,Oi4 1,044 TV boosters __ . __ • •• • .___ 0 } 1 Educational TV. •••• • .w________________ 64 67 3 Auxiliary TV_, • •__~~_1,~1,~i161 ExperImental TV._~______________3 Commercial FM~._.~._______912 1,092 ISO EducatiollRl FM •~.__ 181 199 18 internationaL •• 5 4 (1) Remote plckup ••__~• __~.________ 4,279 4,94~664 Btudlo-transmltter-Ilnk_ _ 65 Ull 4 Developmental." • " 4 3f 0 Low-power auxiliary (cueing) _•••••_._. •~~-1-~,,--:':16=-1--__c:_:'+-_::_:::1::_5 TotaL__~• • • • ._ 11,179 13,845 2,666 Status of Broadcast Authorizations There were 7,513 AM, TV, and FM broadcast stations authorized at the close of fiscal 1961, of which 6,955 had authorizations to go on the air and 548 others held construction permits. A breakdown follows: REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 59 Operating Class authorizations Construction permits Commercial AM. .. ._. .. 3,~165 Commercial TV. .._.. . .. ._._ ""'" 97 TV translators•. _. __ . ... . ._._. ._ 637 66 TV repeaters. .. . .... ... 1,0« 0 TV boosters.• ... ._. .__ 0 1 Educational TV. __ . ._. .. . . " .._._____ M 13 Commerc1al F1L.... . ._. ..... . __ .._. __ 889 203 Educational FM_. _.. --..-.-- __ ..-..__ . __--__ --_---..-~.---_ _1 -::-:18::6+ --:'::'3 TotaL_._. ._.. .. . .._~__6,965 548 Also, 275 commercial FM stations held subsidiary communications authorizations to engage in functional (background) music and other multiplexed operations. Broadcasting Since 1949 Until 1949 Commission reports of broadcast totals did not give figures for stations actually on the air. The following table shows the number of authorized, licensed, and operating broadcast stations, and pending applications at the close of the past 13 fiscal years; also the number of stations deleted during those years : COMMERCIAL AM COMMERCIAL TV 1949__________~______________ 200 65 382 1,963 43 2,006 173 2,170 1950. ______ . __~._____ . ___ .._. 194 70 277 2,118 26 2,144 169 2,303 1951~~____ •••_~__ . ____~______ 116 3S 270 2,248 33 2,281 104 2,3815 1952__ ____ . ___~_________.~... 60 25 323 2,333 22 2,355 65 2, "" 1953_. ________~_____ . __~.____ 187 23 250 2,439 19 2,458 126 ,,""19M____~_~_._______~_• ___ _.~ 146 29 226 2,565 18 2,583 11' 2,697 1955______________ . ______ . ___ 161 18 304 2,719 13 2,732 10' 2,840 1956..______..______ ...______ 197 18 389 2,871 26 2,896 124 3,020 1957 ___ .._._______~__~____~._ 232 14 431 3,044 36 3,079 169 3,238 1958_~_______ .._____ ___~..___ 132 17 636 3,218 36 3,253 160 3,363 1959~_____ •__ •_____ ••________ 169 12 679 3,328 49 3,377 123 3, WI) 1960_ . _____________~__ ___ ..__ 92 11 822 3,442 41 3,483 98 3,/iS1 1961_ .._____..._. ____ .....___ 178 2 702 3,545 67 3.602 165 3,757 1949_ . . _____ . __ . ____~~_______ 15 , 323 13 50 69 48 117 1950. __ _..._______ ._.____~~~_ 0 8 351 47 67 104 6 109 1951 __ • _____~.__ • _____ ••_____ 0 0 416 81 26 107 2 109 1952~••__•••________~••______ 0 1 716 00 12 lOS 0 lOS 1953 __ _._~_______~~_______ . __ 231 6 672 lOl fI7 198 28IJ 48.'1 1954 __ . _____~..______________ 174 81 200 104 298 402 171 6,. 1955 __ ___ . __________~______~~ 67 63 127 137 321 '63 124 ... 1956_~.___ ___~_. _. ___ __~~~___ 60 26 128 186 310 '00 113 ... 1957 __~_____~_._______~______ 65 13 129 '44 175 519 132 65' 1958__ .... _____~..._______ .._ 35 21 126 427 129 566 109 6lllI 19ii9 __ . ________ ..______~.____ 24 22 11' 475 91 566 101 66' 1900••____ •_.~_______~.~~___~ 22 36 '06 48' 98 679 74 653 1961 ___ .._____ ....______ ...._ 23 36 80 ..., 66 M2 fI7 660 TV TRANSLATER 1957_ . ..___~~~__..__~...__ . __ 74 0 48 17 24 41 23 ,. 19li8_. _____....__~__ . . _. ____~ 88 • 34 02 0 02 64 166 19511.~_...____ _~~._____ ____ ._ 00 , 27 '68 0 168 67 ... 1960_~~_.___ _.~.__ . ___~....__ 60 3 10 23' 0 233 •• "" 19tH. __~...__~____.~..__._.~. "" 10 8M 2'11l 0 279 424 '03 ·10 not on B!r. 60 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 1961.-------------------••---1 1 , 044 1 1961-------------------------1 1 I TV REPEATER TV BOOSTER oI EDUCATIONAL TV 1,044 19fj2~• ••• _ 1953 _ 1954. ._.__ 1965 _ 1956. • . _ 1%7. _. _ 1958. _ 1969. • _ 1960. • _ 1961 • _ o 17 13 5 7 8 • 6 6 • o o o 1 o o o o 1 1 1 29 17 I' n 8 • 7 7 • o o o 1 1 I' 29 37 40 43 o 1 6 10 19 12 3 6 7 n o 1 6 n 20 26 32 43 47 64 o 16 24 23 21 23 21 I' 17 13 o 17 30 "'1 .. 53 " 64 67 COMMERCIAL FM 1949_________________________ 57 212 65 an 360 737 129 865 1950__ ••_____________________ 35 169 17 .93 193 691 41 732 195L________________________ 15 '1 10 53. n5 64. 10 65. 1952_____________·____________ 24 36 • 532 47 629 I' 649 1963. ________________________ 29 79 8 551 29 580 21 001 19&'- __,______________________ 27 " 6 629 24 M3 16 56. 19S5~__~_~__________________~ 27 44 6 525 15 540 12 552 1956_________________________ 31 37 10 519 11 530 16 646 1951.~~~__~_______________~__ 40 26 24 51. 11 530 31 500 191i8_________________________ 98 24 57 626 22 648 86 684 1959••_______________________ 153 18 71 578 44 622 147 76'1960__ • ______________________ 165 22 11' 700 41 741 171 912 196L________________ •_______ 200 20 97 829 60 88. 203 1,092 EDUCATIONAL FM 1949•••_. ___ • ________________ 18 7 • 81 3 " 24 68 1951L ________________________ 26 • 3 61 1 62 20 82 1951__ •___________________~__ I' 6 2 82 1 83 12 96 1952_________________________ 12 2 2 91 1 ... 12 104 19S,'L. _______________________ 13 1 3 106 0 106 10 116 1954________ • ________________ • 2 1 117 0 117 6 123 1955_. _______________________ 7 3 1 121 3 124 3 127 1956__ • ______________________ 13 • 5 126 0 126 10 100 1951_________________________ 17 5 2 135 0 135 13 148 1958_. ___________________~___ 11 3 6 14. 3 147 10 157 1959_________________________ 16 8 2 150 • 164 11 165 1960_~_______________________ 20 • 11 161 • 165 16 181 19til•••___ ,._________________ 21 3 • 176 10 186 13 199 Reinstatement of some deleted authorizations and other considera tions not detailed in this table account for any seeming discrepancy in the relation of grants and deletions during the year to the total yearend anthorizations. Stations actually operating or holding authorizations to operate are covered by the term "on the air." "CP's" indicate construction permit status. Broadcast Applications During the year, 15,500 broadcast applications were received, or 2,88'7 more than the year previous. The following is a breakdown of broadcast applications in nonhearing status at the end of the fiscal year (for docket statistics, see "Commission" chapter) : REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 61 Incoming workloa.d Disposed Pend- Returned Pend· Appltcatlons Ing to prooossing DIs- Desig- Ing July 1, missed, nated June 30, 1000 Now Granted dellied, fo, 1961 Hm'l Non· returned bear- ing Hear- ing Ing STANDARD BROADCAST (AM) New statlODS____________________ 628 293 '" 3 105 138 182 '" Mo.jor changes_____._~_______~___ 656 "" 3 2 '" " '''' ... ------------ ---- --- ------ SubtotaL__________________ 1,284 596 23 , 344 217 332 I,QUi Assignments and transfers_______ 125 770 1 1 631 90 2 '" Renewals_____________ . __________ 597 1,553 _. 3 1,195 82 , 87' Licenses__________ •______________ 206 601 -------- , 4<8 23 1 33' All others. ______________________ 188 1,216 -------- 1 1,062 74 1 286 --------------- --------- Total applicatlons_________ 2,308 4,736 24 " 3,880 ... 340 2, "" FREQUENCY MODULATION (FM) I New stations _ Major changes. _ 85 " 25<3 25' • 1 2 1 216 224 33 15 25 , 73 " SubtotaL. .______ 126 510 3 440 48 29 127 Assignments and transferg~___29 186 152 24 39 Renewals________________________ 188 339~_______295 14 • 218 L1censes~___71 313 248 16 120 Allothers~___67 614 .__ 2 543 31_~______109 -~~-----------~-------~- Total appUcatlons~__ • 481 1,962 5 5 1,678 133 29 613 TELEVISION (TV) 2 New statlons _ Major changes 4~_ SubtotaL~_ Assignments and transfers~_ Renewals _ Llcenses. • _ All others • _ " " 1 ------3- 28 12 " 38 " " 1 78 8 12 42 --------------- --------- 87 143 2 3 106 20 81 78 24 108 --------~--_..-- " g 1 .. 97 195 -------- 2 165 5 1 123 ,.. 86 -----+-- 3 78 • 153 87 15' -------- '" 18 85 Total appllcations~_ '" 891 8 590 53 ". TV TRANSLATOR, BOOSTER, REPEATER New stations • .___ 28 2,360 6 1,473 191 0 725 Major changes~___8 28 2 21 3 2 12 ------~----------------- SubtotaL~___36 2,388 8 1,494 194 7 737 Assignments and transfers_._.___ 11._~_____11 • Renewals ₯____ 55 249 124 --------if _::::::: -----i71 Llcenses_________________________ 29 97 66 14 46 All others ._____ 7 34 33 3 Ii Totalapplicatlons.~•__ 127 2,779 _ ALLOTHER3 8 1,728 220 7 95' Newstatlons_~.___ 164 1,190 1,111 96 147 Major changcs .___ 60 514 475 33 66 --------------~--------- SubtotaL .___ 224 1,704 1,586 129 213 Assignments and transfers~__47 309 ._______ 289 11 54 Rencwals .___ 649 1,807 1,375 81 1,000 Llcenses_________________________ 442 1,389 1,333 69 429 Allothcrs._________________ 16 125 .___ 113 21 'l TotalappUcatlons 1,378 5,332 4,696 311 1,703 ======= Total Donhearlng appli- cations 4,823 15,500 81 12,372 1,203 4096,~1S I Includes noncommercial educatIOnal. I Includes noncommercial educational. I Includes: International, relay and studio link, developmental, experimental TV, remote pickup, TV 8u:l1l1ar1ee. 62 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Broadcast Industry Financial Data The radio and television industry for the calendar year 1960 re ported total revenues (which are derived from the sale of time, talent, and program materials to advertisers) of $1,866.3 million. Total radio revenues increased by 6.7 percent to $597.7 million while total television revenues rose to $1,268.6 million, or 9.0 percent above 1959. Total radio and television profits were $290.0 million, an increase of 9.6 percent above 1959. Television broadcast profits of $244.1 mil lion were 9.8 percent higher and radio profits of $45.9 million were 8.3 percent greater than 1959. The following tables show the comparative calendar 1959-60 finan cial data for the radio and television broadcast industries. Broadcast Revenues, Expenses and Income of Networks and Stations of Radio I and Television Broadcast Services, 1959-60 [$ MIllions] Service 1959 '96011n~~i:~~r (decrease) Total broadcast revenues Radlo • ••_•••._~• • • .• $560.0 $597. 7 6.1 Television. • ._•••_•• ._••~.._. ••__ 1, HiS. 9 1,268.6 9.0- Indulitry totaL•.• • •••••_.•••••• • • ._ $1,723. \} $1,866.3 8.3 Total broadcast expenses Radio__ •••• • . • .•• $517.6 $551. 8 6.6 Televlsion • • ._.__ 941.6 1,024.5 8.8 Industry total • • ._•••__ •• $1,459.2 $1,576.3 8.0 Broadcast income (before Federal income tax) Radio • • • .___________________________________________ $42.4 $45.9 8.3 Television ---------__ --••----------.--------_-----.-------------I__ 222 C-,.'.3+__'_44_,'_1 "_'• Industry total_ _ $264.7 $290.0 9.6 I Includes AM and FM broadcasting. NOTE: 1960 radio data cover the operations of 4 nationwide networks, 3,470 AM and AM-FM and 218 independent FM stations. Excluded are 40 AM and AM-FM stations and 3 Independent FM stations whose reports were filed too late for tabulation. 1959 data are for 4 nationwide networks, 3,380 AM and AM-FM and 148 independent FM stations. 1960 TV data cover the operations of 3 networks and 0530 statIons. 1959 TV data cover the oprations of 3 networks and 519 stations. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 63 Nationwide Networks Only, 1959-60 [Including owned and operated stations} 1!J5' Item (willons) 1000 (millions) Percentln~ crease or (decrease) Total broadcast revenues.~~._.~~._••~.__ •~_$636.6 $703.7 10. 6 1---,,---:-1---:::--1----, Radlo~__••~__ •• • •• '.______ 60.4 63.0 4.3 TelEivlsloD. ••~.I~~~'~'~6.~1+~~64Q~.~7ol===;1~1.~2 Total broadcast ex:pensel!i.-.--.----------•.-----.-••---~-------I""c"'.~l+--=6~1l~·~'-I---~1~"_:. RadJo••••••_••~• ••__• • •~._.. 64.9 66.0 1.1 TelevlsIon •• •• •• • •••~1~~~.~88.~2+~~,..~.~'+~~~1~1.;;,7 Broadcast income (before FooemllnoolJ1e t8X) •• •I---=83.~.+_-~92.~2+_-~1~":.:. Rad1o __ ••__ ••_~•• ._._.____________________ (4.6) (3. 0) _ TelevisioD_. • • • • •• ._______ 87.9 96.2 8.3 NOTE 1: Radio data include the operations ot 19 nationwide network-owned AM stations in 1969 and 1960. NOTE 2: Television data luclude the operatIons of 17 network-owned stations in 1959 and 15m 1960. Investment in Tangible Broadcast Property of4 Nationwide Networks, Their 19 Owned and Operated Stations and 3,451 Other Radio 1 Stations, 1960 Investment In tangible broadcast property ltem Original oost Depreciated ($ tbousands) cost ($ thousands) • natlonwtde networks_. ••• • .__ $8, 740 $4,472 19 network owned and operated stat10D8_. •__ • ••_~_.__ • •• 8., 947 4,496 3,461 other stations • • • ••__I--~3~"'~,~06~31--_....:2~'O~,~...::. Tot8l...._••• •• • •~.___ 414, 740 219, 861 I Excludes 218 Independently operated FM stations. 64 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION ComparatitJe Financial Data of 4- Nationwide AM Radio Networks and 3,470 AM Stations, 1959-60 [In thousands] Item 4 nation wide networks 19 owned and operated stations 3,451 stations Amount 1960 total 4 nationwide networks and 3,470 stations Percent or Increase Of" d""""", $35,026 (1.7) 202,102 7.' 3&5.346 7.3 587,448 7.3 622,474 6.8 "== l656 $7,445 23,790 178.312 10,749 374,597 34,539 .'i52. 909 35,195 560,354 6,815 55,255 2-8,380 505,099 8,190 2,438 12,203 22,831 1,2W 620 11,575 13,445 9,«<> 3,008 23,778 36,276 31,548 31,438 628, 877 591,863 38,443 Zl,561 477,553 043,557 (6,895) 3,877 51,324 48,306 Revenues from the sale ot time: Network time sales: Sale otnetwork time to advertisers. $31,917 I-'--'---I-~~-I-~~I="'----I-~'-­ Total network time sales __ -- __ •'1~~~3~1~,9~1~7=1;-~--~-~-~-~--~-~-~-_;1;--~-~-;--~-~-;--~-~-I;-~-~--~-~-;--~-~-=--;I;--~-~-;--~-~-;--;;- Deductions from network's revenue from sale or time to advertisers: Paid to owned and operated sta· tions ._______ 656 Paid to afillIated stations----- -----I---='c'336-,-[-__--C-C-C--C-C-C-C--:IC--C-C-C--C-C-C--C-_-I:-C--C-C-C-C--C-_-_--_IC--C-C-C--C-C-C--C-C- Total participation by others (excluding commissions) in revenue from sale of network time .____________________ 4,992 _ Total retentions !rOm sale of net-I=~~"=~I~~~~~I~~~~=I=~~~~=I=~~==~ work time. •__._~_I~~~26~,92.5;;;;=I=~~~~=I~~~~;;;;I~~;;;;;;;;~I~==~;;;;~ Non-network time sales; National and regional advertisers _ Local advertioors __ • .~_ I-~-I-~'--'---I-'--'--~ii~"'----I-~­ Total non-network timesales_~__I_=-=-=--==-==-~~I==~~~I~;;;;~~=I=~;;;;;;;;~ Total ttme sales_. •.1~=~26~,"";;;5=1=~;;;;;;;;;;;=I~~;;;;;;;;;;;I~~;~,;;~ Deduct~Commlsslon8to agencies, representatives,etc-------------·~·--I---'c'8_'_7-r-__e-_I e-_I--C66.e- SS - 7 -i--- 6 -.-'- Net time sales •I~~=22~,I"08;;;I~~;:;;~~I.~~~;;;;=I=~~55~5~,~5;87=I.~~~6~..;...8 Revenues from incidental broadcasta~ tivities: Talent_.~__ •• 2.5 Sundry broadcastrevenues-----~.-.---I---'-+----ii_--'-I---'_-I---0.-3 Total incidental broadcast activities. 1.7 Total broadcast revenues__I=~===~~I=~~~~I~;;;;;;;;;;.;+~·~;;;'C=1~~~=6~.=:=5 Total broadcast expenses__________________ 6.2 Broadcast income (belore Federal income tax) • ••__ •~__~_________9.8 NOTE: Data lor 1959 cover the operations of 4 nationwide networks flnd their 19 o.....-oed and operated stations. 1960 data lor owned and operated stations reflect the sale of I station by one network and the acquisition of 1 station by another network ( ) Denotes loss. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 65 Broadcast Revenues, Expenses, Income, InIJestment in Tangible Broadcast Property 0/ Frequency Modulation (FM) Stations Operated by Non-AM Licensees, 1959-60 Broadcast revennes, expenses, sndl income Item Total FM broadcast revenoes .., ------------ 337 --------i.f& 153 $1.4 2M 148 .., 218 '.. 662 ., "" ,.. FM stations operated by: AM Itoonsees: Reporting DO FM revenues•••••~__ Reporting FM revenues . ••• _ Non-AM ucensees_._•••__ • I -"-'-I I~+_ Total FM statlons •• •• •• Total FM broacast expenses FM stations operated by: Non-AM licensees. ." __ • _ Industry totaL _ Investmentin tangible broadcast property 1960 Original cost ($ tbouslmds) Depreciated cost ($ thousands) $8,171 $6,258 I 01 this arommt $1.3 million was reported as incidental broadcast revenues Including revenues from providing functional music or other special services. I In view 01 the difficulty in a joint AM-FM operation in allocating FM operation expense separately from AM station operation expense, licensees OlSUM stations were not required to report FM station expense separately. As a result, FM industry totals lor expense and income arc not available. AM-FM licensees, however, were requested to report separately the revenues, 11 any, attributable to FM station operation. ( ) Denotes loss. Investment in Tangible Broadcast Property of Television Networks and Stations, 1960 Investment in tangible broadcast property ''''m Number 01 stations Orij:dnal cost ($ thousands) Depreciated cost ($ thousands) 3 networks and their owned and operated stations_ ._. •••• I 15 $140,505 $76,796 Pre·freeze stations • w. __ •••~_._~.__ w._w. ••• _w ••• •• 1 '_'+__16_''-.,_''_1' '''-.,_''_ Total pre-freeze statIons__ ••__ •w. _. • __ w __ •••_. __~•••••__.:~==';I08~I~~:108;;:,'42;;;'=I=~~I~'~I,;,;;;.. Post·m-eze stations: VHF ._w_.w_.w••• w._ •• _. __ •• _••_.._•• w•• _.w•••••• __• ..__ 346 248,524 134,353 UHF -••• -- w. _ -- -- _ •••••- •• w __ ----__1 '_6_ 1 3_''-''_"'_1 ",-,OM_ Total post-freeze stations. __ •_••_. • •• • w __.I~~~'~22~II~=284=,~.'~'~4'I=~~I~"~,"'~' Grand totaL._ •••.•••_•••_._ ••••_._ ••••_._ •••__ •••__ ••_._____ _ 530 592, 803 303,0536 I Includes one post-freeze VHF station owned and operated by 8 network. 66 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION TV Broadcast Revenues, Expenses and Income, 1960 [In mUllons] room 115 network 3 networks owned and operated TV stations 51.5 other TV stations Total 3 networks and 630 TV stations Revenues from the sale of t.1JDe: Network time sales: Sale of network time to advertisers. ----. '1__~_=.~8+--------__-_-_-__-_-I_--_-_--_-_-_--_-_---I--~-_-_--_-_--_-_--_- Total network time saIes_._. ._..I~==...;;;.;8+-;--~-;--~-;--;-;--;1;--~-;--;-;--;-;-;--+-;-;--;-;-;--~-;--~- Dednctfons from network's revenue from sale of time to advertIsers •••__ • _ Paid to owned and operated stations. .____ 29.9 . . __ Paid to Bffillated stations.______________________ 132.0 ._. .. _ Total participation by others (e%cludlng commissions) in revenue from sale 01 net- workt1me--·------~-------·----------------I~=;1~6~1.~'+-;--~-;--~-~--~-~--;[;--~-~--~-~--~-~--~-l-;-;--~-;--~-~-~--~- Total retentions from sale of network time.___~._306.9 $29.9 1$134.8 $471.6 Non-network time sales: National and regional advertisers••_____________ _.---.. __ ._. 100.8 358.9 459. 2 Local advert1sers ___ •__ •_____________________•__ -_._-~------8.8 185.0 215.8 Total non-network time sales_______ • ____ •• ___ -----~------ 131.1 543.' 675.0 Total time sales_____~____ •__~___ •_______ •___ • 306.' 161.0 678.7 1,146.6 Deduct-CommIssJons to agencies. representatives, 6tC_______ • ___ • __________~______________ • __ • ______ 70.4 24.• 99.7 1ll4. 7 Net time sales.______~______________ •__ •______ "".. 136.4 579.0 951. 9 ltevenues from Incidental broadcast activities: Talent. ______ •_. _. _________________ •_______ •___._._ "'l.! 3.6 10.6 234.3 Sundry broadcast revenues_._.___••••__ •________ ••_ 3&, 6.' 88.3 82.' TotaJ.incldental broadcast actlvlt1es••_________._. 258.3 ,.. cedures which made all safety and special grants subject to postgrant protests, only specified categories of applications in these services are subject to the pregrant procedures; (2) a public notice is regnlarly issued listing those applications filed which are subject to the pre grant procedures; and (3) applications of which public notice is given are not acted upon for at least 30 days during which interested parties may file petitions to deny. At the close of the fiscal year, after nearly 7 months of operation under the new procedures, no petition had been filed to deny any application in the safety and special services. Informal Inquiry Concerning Defendants in Electrical Antitrust Cases The Commission undertook an informal inquiry and consideration of the defendants in the recent Philadelphia electrical price-fixing antitrust cases who are licensees or may become applicants in all radio services regulated by the Commission. At the close of the year the Commission was still gathering facts and had reached no determination. MARINE RADIO SERVICES Safety at Sea The Commission administers the requirements of domestic law and international agreement that certain vessels must carry radio installa tions for safety purposes. Distress studies.-The Commission continued its study of ship dis tress communications as a basis for regnlating radio to promote safety of life and property. During the fiscal year, the radiotelegraph dis tress signal "8 0 8" was used on behalf of 235 vessels and aircraft. These calls for help were intercepted by 910 non-Government ships and coast stations in addition to U.S. Coast Guard ships and shore stations. There were 150 reports of auto alarms being actuated to alert off-duty ship radiotelegraph operators of distress calls. In many cases vessels more than 1,000 miles from the distress scene were alerted by the radiotelegraph alarm signal. Radiotelegraph gener ally functioned satisfactorily for such distress communications. Studies were also made of distress cases involving small vessels equipped with radiotelephone. Of 27 cases studied, the radiotele phone functioned satisfactorily in 15 instances; in 8 cases operation was unsatisfactory due to radio equipment failures or other causes; and in the 4 remaining cases there was no opportunity to use the radio telephone installation to summon aid. To increase sources of in formation with regard to use of radiotelephone in distress, the Com mission requested public coast telephone stations to furnish copies of radio logs containing intercepts of radiotelephone distress traffic. 70 REPORT OF ,THE FEDERAL COMMUNICATIONS COMMISSION Ewemptions from compulsory radio requirement8.-The Commis sion is authorized by section 352 (b) of the Communications Act to grant exemptions from compulsory ship radio requirements. Exemp tion applications haudled during fiscal 1961 were: ReceIved durin~fis- Granted Denied cal 1961 From compulsory radIotelegrapb requirements.•____ . _____ ._._••••______ '36 ." 1 From compulsory radiotelephone requirements••._____ •___ •______ •_____ '29 20 • I Not induded in this table a1'6 11 temporaryradiotele~aphexemptions granted. t All of theso wore granted on conditIonth~tspecified radiotelephono requirements are met. I Not Included in this table are 7 temporary radiotelephone exemptions granted, Public coast radiotelephone stations operating in the 2-Mc band are normally required to keep a safety watch on the radiotelephone distress frequency 2182 kc. On May 11, 1961, the Commission ex empted the New York Telephone Coo's public coast telephone station WOX from this requirement for a period of 12 months on the basis that the watch is adequately covered by Coast Guard radio facilities in that area. Licensees and operators of affected ship stations were requested to comment concerning further extension of this exemption. Propo8ed legislation.-Two identical bills, S. 1288 and H.E. 4743, were introduced during the fiscal year which would amend section 362 (b) of the Communications Act. That section now provides that radio equipment and apparatus required to be installed on board vessels subject to title III, part II of the act, be inspected at least once a year. The proposed amendment would allow the time lapse between inspections to be extended by the Commission in certain circum stances. The Commission favors enactment of such legislation. Radio Technical Commission for Marine Services IRTCMI The RTCM, a cooperative association of Government agencies and industry groups interested in marine telecommunications, is conclud ingtechnical studies of shipboard radio antennas; present and future communication requirements for voluntarily equipped noncommer cial vessels; introduction of the radiotelephone auto alarm signal in the United States; and use of the 9300-9500-Mc radar baud. During the fiscal year, three additional committees were organized. One committee is studying the overall problems of maritime telecommuni cations; a second will report on recommended uses for newly avail able single sideband working frequencies and double sideband calling frequencies; and the third is investigating the relative merits of various selective calling devices for use in the maritime mobile service. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 71 Marine Radio Communications Systems RUle amerulments.-The Commission provided up to 5-year license terms for certain maritime land and shipboard stations in lieu of the present shorter terms. Increased efficiency in processing applications is anticipated. The rules were changed (docket 13523) to permit calls between ships on frequencies other than the calling frequency 2182 kc, under speci fied conditions. The time limit for anyone exchange of intership communication was reduced from 5 to 3 minutes, aud the time interval before communications between the same stations may be resumed was increased from 5 to 10 minutes. These changes were made to bring about more efficient use of the 2-3-Mc ship radiotelephone frequencies. Other rule changes make public correspondence frequencies in the 2-3-Mc band available for assignment in the vicinity of St. Thomas, Virgin Islands (docket 13898) ; and Lake AIlatoona and Lake Sydney Lanier, both Georgia (docket 13983). Construction permits have been issued for the establishment of public coast ststions at these locations. An additional rule amendment (docket 13588) made the frequency pair 2466 kc (coast)-2382 kc (ship) available for public ship-shore use in the Los Angeles-San Diego area on a 24-hour basis. The frequencies 2003 kc and 156.6 and 156.7 Me were provided for ship stations to communicate with Goverument coast stations con cerning passage of vessels on the St. Lawrence Seaway and on the St. Mary's River (docket 13447). Proposed rule changes.-The Commission proposed to make the intership frequencies 2738 and 2830 kc available to limited coast sta tions at causeways, bridges, waterways, and similar locations where there is need for ship-to-shore communication (docket 14160). Under the proposal, communications serving the safety and related naviga tional needs of all types of vessels would be permissible. Proposals were still outstanding in two additional rulemaking pro ceedings. One (docket 13952) would implement certain require ments of the 1959 Geneva radio regulations concerning, principally, frequencies for coast and ship stations. The other would ease the requirements applicable to ship stations (particularly small boats) concerning measurement of transmitter frequencies (docket 14161). A uthorizations of special interest.-The Lorain County Radio Corp., Illinois Bell Telephone Co., and RCA Communications were authorized developmental stations to use single sideband for ship shore commnnication on the Great Lakes and Mississippi River sys tem. Because of operational requirements in the safety service, complete conversion to a single sideband cannot be realized in the near future. However, increased use of this technique for nonsafety 61489~1~6 72 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION communication could increase the number of available communica tions channels. The Commission on May 1, 1961, provided for the shifting of fre quencies of ship stations and certain coast stations operating in the international maritime bands between 4 and 27.5 Me in accordance with the Geneva regulations. The purpose was to conform the opera tion of U.S. ship and coast stations with the Geneva frequency assigmuent plan. Additional coast station facility e8tablished.-The Chesapeake & Potomac Telephone Co. of Maryland constructed a public coast sta tion at Ridge, Md., to make VHF service available to vessels through out the entire Chesapeake Bay area. VHF radiotelephony for navigational communication.-Since Au gust 1959, ship radio stations have been licensed to use VHF on a developmental basis for "bridge-to-bridge" communication on U.S. oceangoing ships in the interests of safety of navigation. The devel opmental period was extended by the Commission to allow additional time to evaluate the operation. Approximately 55 ships are partic ipating. The Pilots Association for the Bay and River Delaware are licensed for 100 marine utility stations so pilots may communicat., "bridge-to-bridge" with other ships in the immediate area. Radio communication in Alaska.-The Alaska Communication Sys tem (ACS) operates the main trunklines in Alaska connecting all communication facilities in that State with the rest of the United States and other parts of the world. Alaska-public fixed stations may communicate with each other or with ACS facilities. Special fre quencies are allocated to Alaska for public point-to-point and ship shore communication. Since landline facilities are not generally available in Alaska, com munities depend largely on radio for safety and business purposes. Also, the increase in oil exploration and industrial production has added greatly to the use of existing frequencies. Additional fre quencies are not available between 2-8 Mc for further expansion. Very high frequencies (152--162-Me band) have been provided for ship-shore communication in Alaska. However, these frequencies have not been used due to their short range, usually limited to line of sight. AVIATION RADIO SERVICES The Commission's responsibilities include control over non-Govern ment use of radio for aviation communication, aeronautical radio navigation, and other safety and operational applications in that industry. The Aviation Radio Services include stations aboard aircraft and the necessary ground stations to serve them in communicating, navi- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 73 gating, and other specialized USes. These stations are classed as air carrier aircraft, private aircraft, aeronautical en route, aeronautical metropolitan, areonautical utility mobile, airdrome control, flight test, flying school, radionavigation, aeronautical public service, aero nautical search and rescue mobile, and Civil Air Patrol. The ad ministration of these services requires close coordination with various technical and policy making groups, which are described below. Radio Technical Commission for Aeronautics The RTCA is a nonprofit cooperative association of Government and industry organizations concerned with aeronautical telecommuni cations matters. The findings and reports of this organization are submitted to responsible agencies and are frequently used by Federal bodies as the basis for proposing regulatory measures affecting the aviation industry. The Commission is represented on the RTCA Executive Committee and on many of its special committees handling specific technical matters. During the past year, Commission representatives took part in special committee consideration of such subjects as minimum per formance standards for airborne radio receiving and transmitting equipment operating within the frequency range 117.957-136.000 Mc; frequency requirements and utilization for common system air traffic control in the band 108-136 Mc; development of revised environ mental test procedures for airborne electronic equipment; a study of utilization of the hand 9300-9500 Mc for radionavigation; develop ment of standardized procedures for measurement of RF energy emitted from aircraft radio receivers; and development of minimum performance standards for airborne receiving and direction finding equipment operating within the range of 200-415 kc. Air Coordinating Committee The ACC, which was aholished by Executive order during the past year, was responsible to the President for coordinating Federal policy in the field of aviation. The duties of this group insofar as inter national aviation matters are concerned have largely been assumed by the Interagency Group on International Aviation (IGIA). Mat ters concerning domestic policy are currently being coordinated by direct liaison between responsible agencies as, for example, continued FAA-FCC cooperation in the matter of antenna structures. International Aviation Communication Coordination The Interagency Group on International Aviation (IGIA) formu lates policies for the guidance of U.S. representatives to international meetings such as the International Telecommunication Union (ITU) and the International Civil Aviation Organization (ICAO). ICAO is a specialized agency of the United Nations. Its task is to recom- 74 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION mend practices relative to international aviation matters, one of which is the use of radio. The Commission participated during the year in preparing the U.S. position for the foIlowing ICAO meetings: Limited Sonth American/South Atlantic (SAM/SAT) Regional Air Navigation Meeting; Rules of the Air and Commnnication (RAC/COM) Re gional Air Navigation Meeting; Informal Rnles of the Air and Air Traffic Services/Aeronautical Communications and Electronic Aids Meeting; Second ICAO Pacific Regional Air Navigation (PAC/ RAN) Meeting; Fourth North Atlantic Regional Air Navigation (NAT/RAN) Meeting; Seventh Session of the Communications Division Meeting (VII COM) ; Seventh Session of the Aerodromes, Air Routes, and Ground Aids Division (AGA) ; and Fifth Personnel Licensing/Aviation Medicine (PEL/MED) Division Meeting. Problems considered concerned such matters as views on develop ments in the VHF forward scatter technique for increasing coverage of air-ground communication; proposals with respect to functional use of the four teletypewriter channels of the ICAO North Atlantic ca ble system; proposed reply to comments by the Republic of the Philip pines concerning distance-measuring equipment specification contained in Amendment 35 to Annex 10 to the Convention on International Avi ation; serious deficiencies in air navigation facilities and services in the various ICAO regions; and proposed reply to ICAO regarding recom mendations on utilization of the band 9300-9500 Mc for marine and aeromobile radars. Rule Amendments and Waivers The Commission continued to keep its applicable rules current with the expanding aviation industry. Some of the year's more significant rule changes foIlow : Amendment of part 9 to specify the applicable technical standards for voluntary use of single sideband (SSB) emissions. Making the frequency 122.6 Mc available for use by air carrier air craft until July 1, 1962, to aIlow participation in an FAA direct pilot to-weather forecaster test. It is intended to provide weather data to pilots and traffic controIlers. One objective is to determine the best method for doing this. Rulemaking which has been initiated but not yet finalized foIlows: A new subpart to cover aviation developmental operations. It par aIlels existing developmental rules in other radio services. Authori zations for aviation stations engaged in developmental operation would be made on a temporary basis for a specific period of time, buL inno event longer than 1 year. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 75 Proposal to allow the use of the frequencies 4602.5 and 4630 kc by land and mobile stations of the Civil Air Patrol, the civilian adjunct of the Air Force, within certain specified States. An amendment to permit activation of airport lights by means of radio signals transmitted from aircraft. This would make it possible for pilots to turn on landing and related lights at airfields which are not normally manned during the hours of darkness. Proposal to make frequencies available for an aviation service at ter minal areas for use by stations located aboard ground vehicles (includ ing aircraft on the ground) orcarried by persons performing functions of service and supply to aircraft on the airdrome. Current and Future Problems As previously reported 2 Me of non-Government aviation frequen cies have been relinquished, along with 3 Me of space by Government users, for Government and non-Government use in air traffic control. This required reassignment of frequencies to about 800 non-Govern ment ground aviation stations, with close liaison with Canada in areas where such reassigned frequencies might result in interference to sta tions of either country. Most of thenecessary reassignmentshave been completed; however, problems with reference to possible interference between stations in Canada and this country require continuous study and coordination. PUBLIC SAFETY RADIO SERVICES The Public Safety Radio Services enable licensees to establish radio communication facilities to assist in meeting emergency conditions and to aid in the administration of local governmental activities. The specific services available are the police, fire, forestry-conservation, highway maintenance, special emergency, State gnard, and local government. Developments and Rule Changes The first implementing phase of the Commission's channel-splitting program has been completed. This was the August 1, 1960, require ment that wide-band licensees reduce the frequency deviation of their transmitters. This has helped to minimize frequency interference in these services; however, the full value of the program will not be rea lized until licensees comply with all of the narrow-band technical standards. The date for this final requirement is Novemmber 1, 1963. In response to the numerous requests for additional frequencies, the Commission made available approximately 75 split-channel frequen cies for use in the 42--50- and 150.8-162-Mc bands (docket 13273). A petition to split channels in the 25-42-Mc band and rulemakiDg 76 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION (docket 13847) for similar action in the 450-Mc band are both under consideration. If channel splitting is undertaken in these bands, this source of additional frequencies for these services will be exhausted. Thus, serving the ever-increasing demands of growth will require technical proficiency on the part of all users to develop the maximum usage of the available frequencies. Though a petition to create a separate Medical Emergency Radio Service was rejected, a hospital category in the Special Emergency Radio Service was established with five frequencies for the exclusive use of hospitals and hospital-connected ambulances (docket 13273). In addition, the elegibilty of physicians and veterinarians was ex panded to include urban as well as rural practitioners. Under consideration is a rulemaking proceeding (docket 14111) which contemplates that split-channel frequencies assigned in a block to the police, fire, highway maintenance, and forestry-conservation radio services be coordinated by frequency advisory committees, thus easing the present frequency coordination procedure. One of the increased uses of radio facilities in these services is re flected in two current rulemaking proceedings concerning traffic signal control. The first (docket 13953) would provide for the allocation of a frequency for omnidirectional use in traffic signal control. The sec ond (docket 13971) proposes that a frequency be assigned for low power use in the Local Government Radio Service to activate traffic signal devices by emergency vehicles in transit. Police Radio Service The widening use of pocket radio equipment is emphasized by a cur rent rulemaking proceeding (docket 14028) to permit police mobile units to be used for the automatic relay of transmissions from sub miniature mobile equipment to base stations. Fire Radio Service Two frequencies were designated for intersystem use in this service. In addition, the coordination requirements applicable to those frequen cies were relaxed to permit this by frequency advisory committees (docket 13851). Itnow appears that additional frequencies for coor dinated operation within and between districts, counties, and States may be required. Rulemaking (docket 14139) to designate such addi tional "mutual aid" frequencies was under consideration. Special Emergency 'Radio Service This service, with its recently expanded coverage, now includes all physicians and veterinarians; most hospitals, ambulance, and rescue vehicle operators; lifesaving beach patrols; school bus operators; dis aster relief organizations; and persons in certain isolated areas. The provision permitting the licensing of hospitals and urban medical practitioners was met by allocating 13 of the newly desig- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 77 nated split-channel frequencies in the 152-162-Mc band, with 5 being reserved to hospitals and their ambulance operators on an exclusive basis. In this service, also, coordination requirements applicable to certain split-channel frequencies were eased by deleting the require ment for a showing of coordination with other licensees in the service (docket 13475). DISASTER COMMUNICATIONS SERVICE This service furnishes communication facilities in the 175G--1800-kc band for use in emergencies such as storm, flood, and war. Authorized stations may transmit any communication necessary to civil defense or relief work during disaster. At other times, communications are limited to those necessary in drills and tests to assure efficient func tioning of equipment and competency of personnel. Over 85 percent of the Disaster Communications Service licensees are civil defense organizations. Of the civil defense organizations, 76 percent are also using the Radio Amateur Civil Emergency Service (RACES) for civil defense communication. LAND TRANSPORTATION RADIO SERVICES The Land Transportation Radio Services provide for the use of radio to facilitate interstate or local transportation of passengers or freight by rail, truck, bus, streetcar, and taxicab. These services also enable the rapid dispatch of vehicles rendering emergency road service to disabled automobiles. Motor Carrier Radio Service This service continues to show a substantial growth, particularly stations operating in the 150-160-Mc band. The expausion reflects both the Commission's and the motor carrier industry's efforts over approximately 11 years to fulfill needs both as to permissible radio operation and the availability of frequencies-especially in the 15G- 160-Mc band. As a part of industry's efforts to utilize fully the frequencies available to it in this band, a substantial number of grants have been made for 15-kc channel separations, rather than 30 kc. Reports indicate that these 15-kc systems are proving satisfactory and are suitable in many areas. The first license for the use of microwave frequencies in the Motor Carrier Radio Service was granted. This system will be ntilized to convey billing, scheduling, and other administrative information between freight terminal points and offices. It is understood that other motor carriers are studying the feasibility of microwave radio systems in connection with their trucking activities. 78 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION A limited number of licensees using frequencies in the 450-460-Mc 'band have indicated an interest in employing power input in excess of 120 watts, which is the maximum now permitted. Several develop mental grants were made to determine the merits of higher power under certain conditions. Only one such authorization is now outstanding. Railroad Radio Service Railroads continue to discover new techniques and uses of radio to promote efficiency and safety in the movement of trains and maintenance operations. The trend is toward greater use of microwave frequencies by rail lines. Such systems are not only capable of handling a comparatively greater volume of voice communications in connection with rail opera tion, but are also useful for data processing; safety, reliability, and economy of operation; coordination of traffic movements; freight car distribution and accounting procedures, including a systemwide data gathering process, Microwave facilities are also employed by rail roads for teletype, control functions in counection with the operation of associated mobile systems, and for facsimile. Consistent with the Commission's policy of using microwave frequencies above 10,000 Mc for "links" or "spurs," one railroad has filed applications involving limited use of frequencies in the 12,000-Mc band. Such equipment became available only recently and it is expected that this particular operation will provide valuable information about the use of microwaves in this part of the spectrum. Based on the 1959 Geneva frequency plan which allocated 161.61 Mc to the Maritime Mobile Service, a rule amendment was proposed (docket 13824) to require licensees in the Railroad Radio Service using 161.61 Mc to change to another frequency as of May 1, 1961. However, the Commission determined that the continued use of that frequency by the railroads on a noninterference basis would be com patible with the Geneva agreement. This action was of substantial economic importance to a number of railroads, some of which operate tlxtensive systems on 161.61 Mc. Also of importance to this service was the rule change which pro vides that certain station transmitter measurements be made ouly once each year rather than every 6 months. Compliance with the ,former requirement was often difficult for the larger railroads which {)perate over vast areas. This relaxation was possible because of ,technical improvements in the stability of radio equipment. A proposal (docket 14042), if adopted, would permit railroad use until October 31, 1963, of low power (3 watts or less input) trans mitters that do not meet the frequency deviation requirements now generally applicable. Many of these low power units are used ex tensively in yard and terminal operations, but cannot he modified REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 79 readily to meet frequency deviation requirements. This equipment is presently being operated under a temporary waiver of the rules. The proposed change would avoid making obsolete a large number of transmitters of this type. Taxicab Radio Service The taxicab industry continues to conduct the greater part of its radio operations in the 150-160-Mc band. It has shown little interest toward more use of the 450--460-Mc band. A limited number of requests have been received to use plate power input in excess of the present 120-watts limit in the 450--460-Mc band. However, only developmental operation has been authorized for the purpose of obtaining additional information. A pending proposed rule change (docket 13690) of importance to the taxicab industry looks to redefining eligibility requirements and to specifying locations of base stations. Itcontemplates, in part, that persons who have applied to the appropriate local authorities for a franchise to operate taxicabs may be considered eligible for an FCC authorization. A second proposal would require that base stations be located in the geographic area within which the licensee is per mitted to both pick up and discharge passengers; however, such limitations would not apply if locating a base station in such area would be prohibited by local ordinances and if the location of such proposed station outside the pickup and discharge area would not result in a material increase in radio interference to other taxicab operations. INDUSTRIAL RADIO SERVICES Ten radio services constitute the Industrial Radio Services. Many of the names of these services are descriptive of the industries they serve, as for example: Petroleum Radio Service, Power (Utilities) Radio Service, Forest Products Radio Service, Manufacturers Radio Service, Motion Picture Radio Service, Relay Press Radio Service, and the Telephone Maintenance Radio Service. Other segments of industry are provided for in the Special Industrial Radio Service which serves such business functions as farming and ranching, min ing, heavy construction, pipeline service activities, ready mix concrete and asphalt. Offshore oil exploration, large area land surveying, and non-Government storm and weather forecasting activities utiliz ing rMlio techniques are eligible in the Industrial Radiolocation Serv ice. There is, finally, the Business Radio Service, which includes within its eligibility provisions many and diverse industries and commercial activities as the general term "business" may suggest. In essence, any person engaged in a legitimate commercial activity may apply for a radio license in one or more of the various services that constitute the Industrial Radio Services. 80 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The number of industrial station authorizations continues to mount. Such growth takes place within a relatively small portion of the radio spectrum. Consequently, as each new station commences operation, a further compression of the available radio space takes place. The problem of channel scarcity received much consideration during the past year. It has been slightly alleviated by various proceedings which have effected a more efficient use of the available spectrum space and, iu one instance, by the allocation of more frequencies. During the year the Commission issued authorizations in its Busi ness Radio Service to the Uuiversity of Texas for the construction of an educational closed-circuit TV intercity microwave relay system. It covers a distance of over 100 miles and permits lectures, classroom instructions, and other educational program material originating in either San Antonio Or Austin to be relayed to 10 colleges and universi ties. This is the first microwave system of its kind granted by the FCC. Another development in the nse of microwave for a point-to-point system was the issuance in the same service to a large retail dry goods company in the San Francisco Bay area for communication between its main store, branch stores, and warehouse. Licensee recordkeeping and notification requirements in all services were relaxed or modified to couform with modern operating methods. This rule change relieved many licensees of administrative duties, which were found to be no louger necessary, while at the same time gave the Commission's field engineering staff an opportunity to con centrate on more important matters. The frequency scarcity in the industrial services was mitigated slightly when the Commission returned four channels in the 49-Mc band to these services (docket 13616). The channels in question had been withdrawn in 1957 for non-Govermnent international communi cation employing forward propagation by ionospheric scatter (FPIS), but they were not utilized for that purpose. Of the four frequencies regained, two were assigned to the Special Industrial Radio Service on an exclusive basis while the other two were assigued on a shared basis to Special Iudustrial aud Forest Products Radio Services. The Power Radio Service, which is one of the older services in the two-way radio field, was subjected to a number of substantial rule changes in fiscal 1961. Of significance were new rules which allow extensive tone or impulse signaling for purposes of warning respon sible personnel of impending equipment failures and, most important, for automatically and remotely controlling equipment during an emergency. This is a breakthrough in the field of radio automation, or pushbutton radio control of power generators, circuit breakers, and many other pieces ofheavy utilities equipment. The utilizatiou of toue signaling devices in the Power Radio Service is an example of the Commission's search for more effective utilization REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 81 of available channels. This form of signaling is condncted on a li censee's regnlar mobile service channel Or channels on a basis second ary to that of normal voice commnnication. In some instances both voice and tone signals may be transmitted simultaneously without one interfering with the other. Another of the older industrial services which envisions a need for tone signaling is the Petroleum Radio Service. Because of the nature of radio usage within this service, the petroleum industry has re quested that tone signaling be allowed only for warning of equipment or apparatus failures. Equipment and apparatus control by means of secondary tone signaling are not desired by that industry. Covering rulemaking proceedings are in progress. Perhaps the most significant proposal affecting the Business Radio Service is that relating to the use of 15 kc or tertiary "split" channels in the 150-Mc band. Under present operating requirements, channel assignments in this band are made at 30-kc intervals. With the advent of new and improved equipment it has been shown that operation at 15-kc intervals is feasible under certain circumstances. Accord ingly, the Commission has proposed that operation on 15-kc or "split" channels be allowed on a regular basis in the business service. If the Commission's proposal is adopted, 13 new channels will relieve the channel scarcity situation in that service. Two proceedings relating to the use of radio in telephone wireline maintenance activities were conducted in fiscal 1961. The first pro ceeding concluded with a modification of the rules whereby Power Radio Service licensees may use their facilities to maintain wirelines which employ the same poles, ducts, or other distribution systems as that of the electric power company. Previously, two separate radio systems were required to maintain and repair a single distribution system. One of these was required to be licensed in the Telephone Maintenance Radio Service, while the other had to be in the Power Radio Service. In the other proceeding, which is still in progress, it has been pro posed that mobile relay-type operations be allowed in the Telephone Maintenance Radio Service on frequencies in the 150-Me band. This proposal, if adopted, would enable telephone companies to operate more efficiently in their wireline maintenance role. CITIZENS RADIO SERVICE The Citizens Radio Service has become the fastest growing of all the radio services. Its biggest expansion occurred during fiscal 1961. At the close of that year, over 206,000 citizens stations employing 657" 500 transmitters had been authorized. This was 80,000 more stations than the year previous. The unprecedented volume of slightly over 10,000 citizens applica tions a month in itself poses an administrative problem. A large 82 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION number of these applications are defective and must he returned because of omissions orother nonconformity. The citizens service is particularly attractive to the individual or small husiness. In general, it can be employed for short-distance personal or business communication, or a combination of the two, or for remote control of objects such as garage doors, model airplanes, and for paging purposes. Furthermore, citizens service equipment is less costly than for otherservices. In the citizens service especially, the Commission has to deal with many individuals who are using radio for the first time, have little or no technical knowledge of the subject, have difficulty in understand ing the rules, and require special advice and guidance to keep them from using the frequencies indiscriminately for superfluous or other unauthorized communication. At the same time the Commission received many requests for basic information about the service and for interpretations of the rules. In an effort to reduce the volume of inquiries, as well as to curtail improper operation, the Commission issued many bulletins spelling out the intent and purposes of the service in lay terms. In addition, it has encouraged the formation of user groups for self regulation. There is increased interest in the use of citizens radio for civil defense activities. In many areas, local civil defense agencies are recognizing the value of citizens communication for emergency situa tions, and some individual citizens licensees have coordinated with local authorities in organizing emergency communication systems. AMATEUR RADIO SERVICE Public service is the keynote of amateur radio operation. A large part of disaster emergency and civil defense communication services is performed through the Radio Amateur Civil Emergency Service (RACES). In addition to peacetime operation, RACES would func tion during wartime, when other amateur activities must cease, so that amateur radio may continue to furnish essential public service communication. Technical development as an amateur radio contribution was emphasized during the year with the announcement of Project Oscar (Orbital Satellite Carrying Amateur Radio) and by the successful houncing of amateurUHF signals off the moon. The continuing growth in this service creates application process ing delays and administrative problems. One possible remedy pres ently under study is the use of automation for routine actions. Rulemaking under consideration includes a proposal (docket 14026) to permit maritime mobile operation on a worldwide basis in the 14.00-14.35-Mc band and (docket 14025) to permit applicants REPOIlT OF THE FEDERAL COMMUNICATIONS COMMISSION 83 residing temporarily outside the United States to take an examina tion for a conditional class license even if the residence in the United States is less than 75 miles from a legal Commission examination point. ENFORCEMENT During the year, the Commission adopted rule changes to reduce complex formalities in its revocation and cease-and-desist proceedings. In brief, when a respondent waives a hearing, the resultant processing eliminates a number ofinterim formal pleadings and interim decisions. These changes conserve the services of personnel and speed issuance of a final decision. A continuing enforcement difficulty concerns minor violations by station licensees, with particular reference to stations being used for the safety of life. In these cases the Commission at present has avail able only the warning letter technique, which does not serve the desired purpose, or station revocation, which is too severe and may eliminate a vital safety usage of radio. Thus, the Commission has requested Congress to permit the imposition of small fines or forfeit ures for violations in the safety and special services. This would be more effective than a warning letter and yet less drastic than revocation. The phenomenal growth in the Citizens Radio Service has brought with it a proportional increase in the number of violations committed by licensees in this service, as well as unlicensed operation by persons who have applied for, but have not received, a station license. Over 1,500 citizens rnle violation notices were issued during the year. There were 20 station license revocation proceedings and 23 amateur operators suspension proceedings in the safety and special services dur ing fiscal 1961. Two of these cases involved the transmission of pr2 $1,790,6.59 $86,975, 831 $76,885,077 $10,090,7M $4,510,983 $7,991,209 $1,423.468 139,469 24,590,278 1,041,376 II,Oll $-l7, 635, 567 Percent of increase or (<1ecrease) 3.96 (1. 28) 9.90 4.57 '.24 .47 3.08 7.19 (20.24) (22.43) (4.05) (29.30) 13.41 .39 (1.88) (2.03) 6.97 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 109 Radiotelegraph carriers Item ~umberot carriers .~_ Book cost of plant (as of Dec. 31) _ Depreciation and amortization reserves. " _ Net book cost of plant- . _ .:\-lessage revenues; Domestic 1 ••__ Transocemlic _ l\larine_ __ _ __ _ _ Total operating re'Venues _ Operating expenses, depreciation, and other operating revenue deductions . __ . _ Net operating revenues _ Provision for Federal income taxes _ ~etincome " _ Dividends declared _ Number of revenue mcssages bandIed: Domestic 3,________ _ _ Transoceanic_ . _ :\larine _ ).lumber of employees at end ot Oetober~_ Total compensation of employees for the year _ Percent ot 1959 1900 increase or (decrease) 6 6 $58, 234, 372 $65,240,198 12.03 $23,318,432 $24,864,004 6.63 $34, 915, 940 $40,376,194 15.64 $2,814,912 $2,931,774 4.15 $28, 680, 259 $28,572, 709 (.37) $1,782,284 $1,790,659 .47 $47,777,980 $50,806,434 6.34 $38,138,853 $42, 202, 554 10.66 $9,639,127 $8,603,880 (I0.74) $4,705,21.5 $3,640,983 (2'2.62) $.5,707,102 $7,153,221 25.34 $1,660,000 $1,070,000 (35.54) 52,428 72,020 37.37 13,842,854 13,571,407 (1. 96) 1,061,348 1,041,376 (1. 88) 45,371 (5.397 .48 $26,677, 489 $28,550,634 7.02 Ocean cable carriers (including lVcstern Union cable operations) I"'m ;\umber of carriers . _ Book cost of plant las of De('. 31) _____ ___ [lepreriation and amortization reSCf\'es _ );('t book cost otplant. . _ :\Ies.s'lge revenues: Domestic 1_______ ___ . _ Transoceanic _ 'I'otal operating re\'enups__ _ . _. _ Operating expenses, depreciation, and other operating re\"Cliue deductions _ Net operating rtwenues_ Provision for Fedewl income taxes _ Net income _ Dividends d",.cla.re,d 3 _ ;\Tumher of revenue messages handled; Domestic~• _ Transoce.anic . _ Number of employeesl~tend of October _ Total compensation of employecs for the year_ Percent of 1959 HUm increase or (decrease) 3 " $99,322,860 $98,558,069 (0.77) $6'),360.759 $57,7-1.5,917 (4.33) $::18,1;162,101 $40,812,152 4.75 $236,972 $259,532 9.52 $26, 135, !JSi ! $29, 439, 943 11. 33 $36,598, 738 $36, Hi9, 31:17 n.17) $33, 586, 614 $34,682,523 3.26 $3,012,124 $1. 486, 874 (50.64) $1,110.000 $S70,000 (21.62) $2,621. 156 $837,988 (68. (3) $353,468 $353,4.68 7t!,55.5 6i.H\l (4.40) 10,651,008 11,018.871 3.45 I S,868~1J,614 (4.33) $17,853,276 $19,084,933 6. !lO \ Inclulles revenue of 2: ocean-cable carriers and the raillOl:.elegraph carriers from thE' domestic transmission of transoceanie and marine messages outside of points of entry or departure in the rnited 8t:ltes, and reve Dues from domestic-elassitlcstion messages (primarily Canadian and -'[exiran). ~All dividends declared by Western Fnion Telegraph Co. h:we been reported in the table ilbove relating to the domestic landline operations of that company and are excluded from this table. l Hepr('sents dom('stic-elassification messages (primarily Canadian and \-Ie:;:ira'l). 4 Certflin employees of I radiotelewaph carrlf'r and 2 ocean-cable cilrriers serve ,Dore than 1 of the com panies. The amounts of compensation reported for each of these companies "re after interCoIllllan;y charges and credits. As a [('suit, tlle number of employees and total compensation shown are not on the same bflsls. 5 Transoceanic message revenues for 1960 are not comparable with those shown for 1959 ror the reuson that All America Cables & Hadio, Inc., effective July 1, 1959, revised U.s method of determining the revenues classified as cable transoceanic so that they are substantially greater than under theforn~prmethod. All America's I!Idiotelewaph transoceanic messagc rev{'nues, $2,207,821 in 1960 and~1,405,146in 1959, are not included in the message revenue data in this series of tables. International Telegraph and Telephone Trallie During calendar year 1960 a total of 637,995,000 words were handled into and out of the United States by international cable and radio telegraph carriers. In the outbound direction 330,320,000 words were transmitted, while 307,675,000 were inbound. There were, also, during 110 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION calendar year 1960, 1,669,800 telephone calls outhound from the United States and 1,544,200 calls inbound. The word volume of international telegraph traffic and the number of telephone calls between the United States and each of the principal countries of the world during calen dar year 1960 are set forth in the following table: u.s. international telegraph (radio and cable) traffic in words and teleplwtte ca118 (radio and cable), 1960 (Includes traffic transitlng the United States) Country Telegraph traffic (number of words (in thousands» Telel'hone trame 1 (numbElf of calls (in hundreds» Outbound from the United Sta"" Inbound to the United Sta"" Ont-bound from the United Sta"" Inbound t~the Unitl'd States 14 6 778 636 47 34 497 276 6 11 3 10 108 105 144 Il9 364 242 15 18 Ii; 13 10 23 1,834 1,871 -----·--237- -----·---isa 84 47 10- -·-·------is 21 15 ··········7- ····--·---i4 96 40 --------i10- --·-·-----70 13 14 Europe, Africa, and the Near Eagt Ascension Island (Hahrain relay) • _ All!'erh~••4._~_____200 165 Arabla . 1,085 1,048 Austria . .________ _ __ 1, 538 1, 143 Azores_ ________ _ ____ _ ___ __ 105 55 Belgian Congo___________________ 471 428 Bel~um.__ 4,970 4,167 British Ea.'.. t Africa . ._____ 917 627 British West Alrica_. ._____________________ 1,209 969 Bulearla . 151 lOS Canary Islands_ ___ 175 111 Ozechoslovakia .______ 779 720 Denmark ._. __ .+ .0_________ __ 2,282 1,746 EgypL .___ 2,669 2,755 Ethiopia . .___________ 335 336 Finland___ _ _ ____ 656 681 France . .__ __ 16,464 15,998 French Equatorial Alrica______________________________ 89 334 French West Africa +________ 434 2li2 Germany . .. 19,41i9 15,654 Greec.e_ _ _ 2,019 1,640 Hungary_________________ 303 445 Iceland . • 243 224 Iran . . ._.________ 1,375 1,405 Iraq_______ _ 654 1,285 Irl'land____ _ ____ ___ _____ __ _ _ 1,090 1,070 Israel. . . ._____________ _ _ 3,076 2,909 Italy_ _ _ IS, 193 11,961 Lebanon_ . . . .__ 1,244 1,422 Liberia_______________________________________ _ 1,250 1,290 Libya 509 226 Luxembourl\' 157 141 Madagascar _ __ 101 82 Morocco: Frencb ._._.•_ 134 130 Tangier___ 419 404- Netherlands . ._. • 8,307 7, O&l Norway_. .____ 3,072 606 2, 134 Persian Gull. . . ._ __ 579 Poland .____ 905 1,123 PortugaL . . 1,357 1,053 Rhodesia • .______________________ 192 231 Rumania . __ .__ 483 321 Spain -' . .________ 4,591 2,866 Sweden_ ___ 4,339 4, 141 ~~ia~~~~~~~===~~==~=======~======================:==== 10, g: 7,~~~ Transjordanla__ 278 250 Tunisia . __ .____ 357 239 Turkey____ __ _ _ 1,539 1,691 Union of South Africa______________ 2,950 2,787 U .S.S.R . _. • ..__ .._... 4,511 4,471 UnUed Kingdom . . __ ..__ .._...__ .._. 51,070 49,478 Yugoslavia _.._ _.._.._.._ .. 1,068 1,079 All other places -- -.__ -..•- -.-..__ 1 '_'_'+__',~'_9_'_1---_-_--_-_--_-_--_-1-_-_--_-_--_-_--~-~- Total • • __ • __ .•.•.I~~17S;:;;;,60:::;;7ol=~'~60~,~086;::;,I~~=6~,~05~';"I,~~~.~,6~96~ See footnote9 at end of table. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 111 V.S. international telegraph (radio and cable) traffle in words and telepho-ne calla (radio and cable). 1960-Continned (Includes traffic transiting the United States) Country Te.legraph traffic (Dumber of words (In thQus8LJds» Telephone trallle 1 (number of calls (in hundreds» Outbound from the United States Inbound to the Unit~d States Outbound from the rnited States Inbound to the United States 53 57 176 170 ]61 193 -----i------------ 191 18 520 25 107 76 93 37 38 46 59 2a