ANNUAL REPORT OF THE FEDERAL RADIO COMMISSION :TO THE : CONGRESS OF THE UNITED STATES FOR THE FISCAL YEAR ENDED JUNE 30, Vernon A . Spring Assistant Chief, Safety and Special ,Radio Services Bureau, ng fBie S coo " t vi r 0 04 c ANNUAL REPORT OF THE FEDERAL RADIO CO TO THE CONGRESS OF THE UNITED STATES FOR THE FISCAL YEAR ENDED JUNE 30, 1927 UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON 1927 MISSION CONTENTS Page Assignment of commissioners_________________________________________ 2Public hearings helpful_______________________________________________ 3Prominent persons offer suggestions___________________________________ 3Questionnaire sent to all applicants___________________________________, 4Canadian channels cleared____________________________________________ 4Aim and purpose of temporary permits________________________________ 5An open-door policy adopted__________________________________________ 5An appalling responsibility____________________________________________ 6' Hard to measure conflicting claims________________________________ 6Public must guard freedom of air_________________________________ 7Listeners to decide future course of radio__________________________ 7Power reduced in residential districts--------------------------------- 8"Fans" tell how to solve problems___________________________________ 8New allocation of frequencies reduces interference_____________________ 8Short-term licenses issued____________________________________________ 9Consolidation of stations_____________________________________________ 9Preliminary work of the commission__________________________________ 10New law brought relief__________________________________________ 11Reallocation of all stations________________________________________ 11Public hearing docket________________________________________________ 12General orders adopted_______________________________________________ 12Extension of amateur and ship licenses____________________________ 12Public hearings__________________________________________________ 12Extension of licenses_____________________________________________ 13Broadcasting frequency band_____________________________________ 13Extension of broadcast licenses____________________________________ 13Licenses for portable stations------------------------------------- 13Only half kilocycle deviation allowed______________________________ 14Plan to check frequencies---------------------------------------- 14To prevent speculation in radio stations_______________ __________ 14Daytime power increased in special cases__________________________ 14Terminates temporary permits_______________________________ 15Rules for hearings before commission______________________________ 15New licenses made effective June 15, 1927__________________________ 16Testimony as guide to commission---------------------------------- 16Interference hearings_______________________________16 ANNUAL REPORT OF THE FEDERAL RADIO COMMISSION FOR THE FISCAL YEAR 1927 FEDERAL RADIO COMMISSION, Washington, July 1, 1927. To the CONGRESS OF THE UNITED STATES The Federal Radio Commission submits herewith its report for the fiscal year ended June 30, 1927. The passage of the radio act of 1927 presented a situation without parallel in the history of American executive departments. A wholly new Federal body was called into being to deal with a condi- tion which had become almost hopelessly involved during the months following July 3, 1926, when it had become clear that the Depart- ment of Commerce had no authoritv under the 1912 radio law to allocate frequencies, withhold radio licenses, or regulate power orhours of transmission . The new law itself was, of course, totally untested, and the Federal Radio Commission was called upon to administer it with no clear knowledge as to the limitations which might be created by subsequent court action. The act embraces the whole field of radio communication, but public interest was concentrated almost wholly on the single section of it devoted to radio broadcasting . The problems of point-to-point radio communication, of radiotelegraphy, of marine wireless, of power transmission, etc., though of vast importance, did not present such an urgent need for immediate action as the utter confusion within the broadcasting band . Public opinion assumed that theprime purpose of the law in creating the Federal Radio Commission was the immediate establishment of a sound basis, in, the interest of the radio broadcast listener, for the orderly development of American broadcasting . For this reason the work of the Federal Radio Commission from its first meeting, on March 15, 1927, up to June 30, was devotedalmost exclusively to clearing up the broadcasting situation. Withthe physical capacity of the available channels, or wave lengths, already far exceeded by the number of stations actually in operation,and with no provision in the law for the Federal acquisition or con-demnation of broadcasting stations in order to reduce the total num-ber, the commission found it necessary to evolve some plan whereby,without any unconstitutional exercise of arbitrary authority, thelistening public could receive more dependable broadcasting service,and whereby a gradual and orderly development could be counted onto bring about a progressive reduction in radio interference.The following record, taken largely from the orders and bulletinsof the commission, outlines the steps whereby this plan was evolvedand put into execution. These steps were, in brief, four : First, thedetermination of the best scientific opinion through a series of public 2 REPORT OF THE FEDERAL RADIO COMMISSION hearings ; second, the internal organization of the commission, handi-capped as it was by lack of funds, to handle the enormous amountof documentary material which was required ; third, the protection ofthe broadcasters against liability for unlicensed broadcasting until asuitable basis for the new licenses could be worked out ; and, fourth,a complete new allocation of frequencies, power, and hours of opera-tion for all of the existing 732 broadcasting stations to provide ade-quate local separation and a basis for the gradual elimination ofdistant interference.Under the radio act of 1927 the Federal Radio Commission wasformally organized on March 15, 1927, as follows :Rear Admiral W. H. G. Bullard, of Media, Pa., commissioner fromthe second zone, chairman ; Judge Eugene O. Sykes, of Jackson,Miss., commissioner from the third zone, vice chairman ; O. H. Cald-well of New York, N. Y., commissioner from the first zone ; HenryA. B ellows, of Minneapolis, Minn., commissioner from the four htzone ; Col. John F. Dillon, of San Francisco, Calif., commissionerfrom the fifth zone .Sam Pickard, chief of the radio division, Department of Agricul-ture, was engaged as acting secretary when the commission wasorganized. Mr. Pickard was made permanent secretary on April 20 .1927. ASSIGNMENT OF COMMISSIONERS Chairman Bullard took direct charge of the radio stations in thesecond zone, embracing Pennsylvania, Virginia, West Virginia, Ohio,Michigan, and Kentucky.Commissioner Sykes took charge of the third zone, embracingNorth Carolina, South Carolina, Georgia, Florida, Alabama, Ten-nessee, Mississippi, Arkansas, Louisiana, Texas, and Oklahoma .Commissioner Caldwell took charge of the first zone, embracingMaine, New Hampshire, Vermont, Massachusetts, Connecticut, RhodeIsland, New York, New Jersey, Delaware, Maryland, District ofColumbia, Porto Rico, and the Virgin Islands .Commissioner Bellows took charge of the fourth zone, embracingIndiana, Illinois, Wisconsin, Minnesota, North Dakota, South Dakota,Iowa, Nebraska, Kansas, and Missouri .Commissioner Dillon took charge of the fifth zone, embracingMontana, Idaho, Wyoming, Colorado, New Mexico, Arizona, Utah,Nevada, Washington, Oregon, California, Hawaii, and Alaska .Due to the lack of funds, the commission was forced to open itsoffices at the Department of Commerce, where Secretary Hoover pro-vided a suite of rooms formerly occupied by the Bureau of Naviga-tion . It was possible to engage only a small office force, and it hasbeen necessary to economize in ever possible way..When the Federal Radio Commission was inaugurated it founda chaotic condition prevailing in the radio field, for after Govern-ment control broke down in 1926 many broadcasters jumped theirwaves, seeking more desirable channels, regardless of their existingoccupants . Even the channels reserved for Canada were appro-priated, and split frequencies were used, with only a slight separa-tion of from 1 to 5 kilocycles in many instances.The problem confronting the commission was to try and bringorder out of chaos by placing the 732 broadcasting stations on 89 REPORT OF THE FEDERAL RADIO COMMISSION wave lengths, so as not to create serious interference . The first actof the commission was to continue in force all radio amateur andship licenses issued by the Department of Commerce and all coastal,point to point, technical, training, and experimental radio licenses,in order that attention might be concentrated on the pressing prob-lems within the broadcasting band . PUBLIC HEARINGS HELPFUL For the purpose of providing opportunity for the presentation ofgeneral suggestions by the public and by qualified experts as to themethods for reducing interference within the broadcasting law, atits first meeting the commission arranged for a series of public hear-ings for March 29 to April 1, inclusive.The subjects assigned for discussion were : Broadening the broad-casting band, limitation of power, reducing frequency separation,simultaneous broadcasting with the same Frequency, chain broad- .casting, division of time, consolidation of broadcasting service, limit-ing the members of broadcasting stations, and general discussion .United opposition to widening the broadcasting band in order toaccommodate more stations was expressed at the hearings by repre-sentatives of the radio art, science, and industry. Diverse views werepresented regarding limitation of the power output, with the generalopinion prevailing that this should be determined on the basis ofarea to be served by the respective stations . Stout opposition wasregistered also against reducing the frequency separation betweenchannels from 10 to 7 kilocycles, while chain broadcasting in themain was indorsed . It was agreed that a division of time by stationsis absolutely necessary to relieve to some extent the congestion onthe ether channels. PROMINENT PERSONS OFFER SUGGESTIONS Among those who took part in the public hearings and made sug-gestions for the guidance of the commission were : Paul B . Klugh, representing the National Association of Broadcasters .Frank D . Scott, general counsel of the National Association of Broadcastersand the Radio Manufacturers' Association . Jack Binns, treasurer of the Hazeltine Corporation .R. H . Langley, treasurer of the Crosley Radio Corporation .Dr. F. A . Kolster, Federal Telegraph Co . of California.Dr. Alfred N . Goldsmith, chairman of the board of consulting engineers ofthe National Broadcasting Co .C. Francis Jenkins, a noted inventor, of Washington, D. C.Alfred P. Thom, Jr., counsel for the American Railway Association .George T. Stanton, chairman of committee No. 12, radio and wire carriersystem, American Railway Association .Lamden Kay, Atlanta, Ga ., director of station operated by the Atlanta Journal .L . P. F. Raycroft, vice president of National Electrical Manufacturers'Association .Ray H. Manson, chief engineer,hag Co .Robert H . Marriott, consultingIndependent Wireless Telegraph Co.L. W . Wallace, secretary of the American EngineeringPaul Godley, radio engineer of Newark, N . J .Samuel A. Waite, Worcester Telegram Publishing Co ., Worcester, Mass .L . C . F . Horle, Federal Radio Corporation, Buffalo, N. Y .H . B . Hough, Fort Worth, Tex ., radio announcer. Stromberg-Carlson Telephone Manufactur- engineer of New York, representing the Council. REPORT OF THE FEDERAL RADIO COMMISSION AIM AND PURPOSE OF TEMPORARY PERMITS 5 On April 24, 1927, the commission granted temporary permits toall broadcasters who held a license, or an extension thereof, issued bythe Secretary of Commerce under the act of 1912. That was donemainly to allow stations to operate without rendering their Ownersliable to the penalties provided by the radio act of 1927 . Explaining the aim and purpose of the temporary permits, thecommission issued this statement Although the temporary permits to broadcasting stations now being issuedby the Federal Radio Commission are designed chiefly to protect broadcasterswho were licensed under the 1912 law from incurring the penalties providedby the 1927 act for operating without a license, they will also provide animmediate measure of real relief to the radio listeners . When the new lawwent into effect there were 129 broadcasting stations operating on frequenciesoutside of the regularly authorized scale.Originally licenses were issued by the Department of Commerce to usefrequencies on a decimal basis, thereby maintaining the necessary separationof 10 kilocycles between frequencies . After July 1, 1926, however,, a consid-erable number of stations selected intermediate frequencies, realizing that theDepartment of Commerce had no power to prevent such action . Each stationthus operating has created interference on three different wave lengths-onthe one on which it is actually operated and on the nearest regular wave lengthsabove and below.As no temporary permits are being issued for these intermediate frequencies,and as the Federal supervisors are being instructed to watch carefully forany violation of the terms of these permits, all of the 129 stations whichhave been creating interference on two wave lengths besides their own willwithin the next week or 10 days be operating on frequencies where they willcreate interference only with other stations on the same wave length . In manycases it has not been found practicable, on account of interference, to movethe stations to the nearest authorized frequency, and accordingly many ofthem have been assigned to frequencies in less congested parts of the broad-casting band.Furthermore, the temporary permits state the maximum permissible power,and in a number of cases, particularly where stations are located in congestedresidential districts, this maximum power is being materially cut down in theinterests of the listening public . Thus, although the temporary permits do notrepresent any complete attempt to solve the broadcasting problem, which willbegin with the issuing of short-time licenses as soon as possible after April 24,the commission believes that these temporary permits will in themselves bringabout a certain amount of immediate and very desirable relief to the radiolisteners of the entire country. AN OPEN-DOOR POLICY ADOPTED An "open-door "policy was agreed upon by the commission . Com-missioner Bellows was named director of publicity, and twice- a weekhe held conferences with the Washington correspondents. On theseoccasions Commissioner Bellows outlined as far as practical the plansof the commission and explained action already taken. The keeninterest in the problems before the commission was evidenced by thelarge attendance at the press conferences. Chairman Bullard inexplaining the views of the commission with relation to its contactwith the public said on one occasion The commission has no desire to arrive at any conclusions without taking thepublic into its fullest confidence, and while its membership is limited by lawto five members yet the commission would like to consider that really everylistener and every broadcaster, whether owner or operator, is a potential mem-ber for submitting constructive ideas to keep the other channels clear that just REPORT OF THE FEDERAL RADIO COMMISSION as many stations may operate as possible. To use the words of a formerPresident, the commission believes in " open covenants openly arrived at." The only motto we have is the doormat welcome, and there are no czars, as somenewspapers like to suggest ; we are all equals-the commission and the public-striving to solve many difficult problems and propitiate the ire of perhaps some disgruntled ones . AN APPALLING RESPONSIBILITY The spirit with which the commission approached its task wasexpressed b7 Commissioner Bellows in an address before the Leagueof Women oters at a dinner in Washington on April 29, 1927 . Atthat time he said Congress has grasped the significance of radio as a vital force in Americanlife and has recently enacted a law which in many ways is absolutely unique.I know of no other activity, conducted entirely through private enterprise,which has seemed to Congress so Important and so complex in its problems as . to require the creation of a new and separate branch of the Government exclu-sively for its regulation. Nor do I know of any other law which, like the radio act of 1927, sets up as the sole guide for the body charged with its administra-tion the interest, convenience, or necessity of the public. That, in just fourwords, is what Congress has told us to do . We are to determine who shall andwho shall not broadcast and how such broadcasting shall be carried on, simplyin accordance with our conception of public interest, convenience, or necessity. It is a rather appalling responsibility. The law tells us that we shall haveno right of censorship over radio programs, but the physical facts of radiotransmission compel what is, in effect, a censorship of the most extraordinarykind . A broadcasting station is in many ways akin to a newspaper, but withthis fundamental difference there is no arbitrary limit to the number of dif-ferent newspapers which may be published, whereas there is a definite limit, anda very low one, to the number of broadcasting stations which can operatesimultaneously within the entire length and breadth of our country . This limithas not only been reached, it has been far overpassed ; the demand from everysection of the country is to cut down the number of broadcasting stations in theinterests of the listening public .What does this mean? It means that the Federal Radio Commission mustsay to this person, "You may broadcast," and to that person, "You may notbroadcast : there is no room for you ." It means, In actual practice, that wecan not find suitable frequencies, or wave lengths, even for all, of the stationsalready built and in operation, and that to several hundred applicants fornew construction permits we can say only, "We are sorry, but we can see nopresent hope for you ." We must say to John Doe, "You are rendering a serviceof great value in the interest, convenience, or necessity of the public, and you shall have a good wave length, plenty of time, and ample power," whileae any to Richard Roe, " We find your service of less value to the public ; soyon shall have a poorer wave length, less time, and less power, or perhaps no wave length, time, or power at all." HARD TO MEASURE CONFLICTING CLAIMS We can not evade this responsibility, for it is the thing which Congress hastold us we must do, and it is the thing which the people of America rightlydemand shall be done . The variety of broadcasting service has become infinite ;how shall we measure the conflicting claims of grand opera and religious serv-tees, of market reports and direct advertising, of jazz orchestras and lectures onthe diseases of hogs? It is for help in making such decisions, wisely and justly, that the FederalRadio Commission turns to you and to those who, like you, have the largerand truer vision of what radio can mean in our national life. Congress hassaid that we shall administer the radio law in the public Interest ; we in turnask you to help us define public interest in such a way that this marvelousagency shall be free to play the great part it ought to play in building up andstrengthening the understanding of our people.Every broadcasting station exists for one sole purpose-the creation of publicgood will for its owners or for the sponsors of its programs. It will broadcast REPORT OF THE FEDERAL RADIO COMMISSION 7 whatever it belleves will best create and maintain that good will. Veryrightly, Congress has held that the broadcaster shall not be subject to govern-mental dictation as to the character of the material he sends out ; the FederalRadio Commission, under the present law, can not and will not interfere with any broadcaster's right to control and censor his own programs. In that mat-ter his relations are not with the Government, not with the commission, butwith you . It is for you, the listeners, not for us, to censor his programs . It isfor you to tell him when he is rendering, or failing to render, real service tothe public, and you may be sure that he will listen to your voices. PUBLIC MUST GUARD FREEDOM OF AIR Above all, it is for you, not for us of the commission, to safeguard theso-called freedom of the air . Here is a problem which, because you are . pri-marily interested in radio as a means of political education, touches you veryclosely. You would be quick to see the danger if there could be .only a fixedand rather small number of newspapers and magazines published in the UnitedStates ; you would rightly fear that the newcomer, the nonconformist, the repre-sentative of the minority, would have small chance to present his ideas to thepublic . This is just the situation which exists in broadcasting and whichinevitably must continue to exist unless some fundamental change in the scienceof radio transmission comes about as the result of new discovery, to makepossible a totally unforeseen increase in the number of stations which canbroadcast simultaneously.The radio law tells us that we shall not fix any condition "which shallinterfere with the right of free speech by means of radio communication,"and yet, if radio communication of any kind is to be possible at all we mustsharply limit the number of broadcasting stations . The safeguarding of thatright of free speech which is essential to intellectual growth lies in the handsof the broadcasters themselves, and, ultimately, in yours, for it is your goodwill that the broadcasters are seeking. If they and you do not so safeguardit-if you do not make it clear that your understanding of public interest,convenience, and necessity involves a very broad conception of the obligationsof the broadcaster to his listeners-then it may be that Congress will feel thatthere is need for some amendment to the present radio law, an amendmentcalling for such Government regulation of radio programs as would manifestlybe deplorable if it can possibly be avoided . LISTENERS TO DECIDE FUTURE COURSE OF RADIO The future of radio broadcasting is in your hands . The broadcasters existsolely to serve you as listeners ; they charge you nothing and they ask onlyyour good will. Congress, recognizing the full significance of the problem,has created this new Federal body, of which I have the honor to be a member,solely to administer the law in your interests. The vast scope of this newmedium of transmitting ideas passes all comprehension. Your imaginationscan not conceive, even though guesswork may boldly state numbers, of theaudience which may listen to a single voice . And it is for you to say whetherthis potent agency shall be used rightly or wrongly. It is for you to saywhether it shall degenerate into a mere plaything or develop into one of thegreatest forces in the molding of our entire civilization. It is for you toestablish close relations with the broadcasters who serve your communities antito show them that it is to their advantage to use their stations for the highesttype of public service.It is as such a mighty power for linking together all parts of our nationallife, for making better and wiser citizens of our great country, that the FederalCommission conceives of broadcasting. But we can- do only what you tell us,you want done . Our present problem is to clear the channels of radio com-munication ; yours is to say what commodities of human thought; of reason, andof art shall be borne on those channels to millions of listeners . Our task is notan easy one ; yours is, I believe, in the long run, even harder. But I knowthe broadcasters, many of them, well, and I know that they are eager for yourhelp and cooperation . It is the glory of democracy that the will of the peoplerules, and to-dny the Federal Radio Commission, created to serve the peopleof the United States, asks of you that you will do your utmost to create ademand for that kind of radio service which will make our country a betterand happier and finer place in which to live . 67979-27-2 REPORT OF THE FEDERAL RADIO COMMISSION POWER REDUCED IN RESIDENTIAL DISTRICTS Owing to constant complaints of interference caused by broadcast- ing stations using too much power within residential sections, the commission issued an order on May 4, 1927, reducing the power of many stations in the large cities. To improve radio reception in New York, Chicago, and other large cities the commission decided that a separation of 50 kilocycles is necessary between local stations . All allocations were made on that basis . From the beginning of its existence the commission has been liter- ally swamped, almost daily, with letters and telegrams from listeners and broadcasters . At first the listeners confined themselves to sug- gestions as to ways and means to improve radio reception . Later many of them were enlisted by certain broadcasters in their fight for special consideration in the allotment of waves and power . FANS " TELL HOW TO SOLVE PROBLEMS Some of the proposals of the " fans " were very helpful to the com- mission, while others were fantastical and impractical. For the guid- ance of the commission, Ira L. Grimshaw, of the Department of Commerce, spent several weeks reading 3,000 letters and telegrams . His digest was very illuminating. In brief, it follows The following suggestions seem to have been made with considerableregularity and unanimity1 . Whatever plan is followed, every station must remain exactly on itsassigned wave length. A crystal or other control should be required to accom-plish this purpose .2 . Stations logically should be classified into the big and the little, or the highpower and the low power-the local and the national-the general and thespecial. The higher-grade stations should have greater range and signalstrength and more desirable frequencies upon which to operate . They shouldbe subjected to the minimum of regulation by the Government. The other classshould take what is left. They should be purely secondary in everything butregulation.3. Pirates should be given no consideration . Fundamentally they are personanon grata with the rank and file of radio listeners. They simply interfere withgood programs.4. Directly advertising wares must be either entirely prohibited or greatlyrestricted . It has been suggested daylight hours only be used for advertisingdirectly .5 . All transmitters should be located outside of cities and congested areas,particularly outside of residential districts .6 . Telegraphic interference is either ruining or seriously jeopardizing broad-cast reception in many specific localities . . Foreign ships and wandering,amateurs are charged with this high misdemeanor .7 . Chain broadcasting is either the greatest blessing or curse of broadcasting .The conclusion is dependent entirely upon either the location of the listener orhis particular taste. It is noteworthy that but few suggest the elimination ofchain broadcasting . Hours of operations and power limitations and specificfrequencies come in for appropriate attention when discussing this subject . NEW ALLOCATION OF FREQUENCIES REDUCES INTERFERENCE After spending considerable time and thought on formulating important policies and basic principles the members of the commis- sion mapped out a new allocation of frequencies and power which was announced on May 24 to become effective June 15, 1927. The members of the commission found it possible to reassign the stations to frequencies which would, in their judgment, serve as a REPORT OF THE FEDERAL RADIO COMMISSION sound basis for the development of good broadcasting to all sec- tions of the country with comparatively little interference and heterodyning . In working out the new national traffic system for broadcasting the commission's first consideration was to devise ways and means to improve radio reception throughout the United States . While large groups of stations-more than 100-were operating in two centers, New York and Chicago, they were given secondary consid- eration and were not allowed to dominate the situation. Practically all stations were given new assignments, and listeners were obliged to scrap their old logs . It was found necessary to place :several stations on the same wave and to provide for a division'of time, in many instances, in order to give all qualified broadcasters .a place on the air . For the most part the broadcasters accepted the new assignments with good grace and showed a fine spirit of coop- eration . A few of them demurred and instituted court proceedings. But after a more careful study two of them announced that their suits had been withdrawn. SHORT-TERM LICENSES ISSUED In announcing the issuance of the new licenses the commission made the following statement The new licenses are all for 60 days, during which period the new allocations can be tested by actual practice. The law provides that any broadcaster . whois dissatisfied with his allocation may have a public hearing before the commis-sion, and at such a hearing his claim for a specific frequency or_ power will beconsidered in all its relations.The commission recognizes that no scheme of reallocation which does notat the very outset eliminate at least 400 broadcasting stations can possibly putan end to interference . Accordingly, it regards the new allocations, not ascreating in any sense an ideal broadcasting situation, but as providing for thefirst time a sound basis for radio service to the listener. With the cooperationof the public and the broadcasters, the commission believes that it will be pos-sible to improve conditions progressively by an orderly process of actualexperience.Until such experience has been gained, both the listeners and the broadcastersare urged to exercise patience. The listener will, of necessity, have to reloghis receiving set and may find considerable difficulty in locating all the stations he desires to hear. The broadcasters will doubtless find that many of theirlisteners are at first somewhat bewildered by the changes in frequencies. Itis the belief of the commission, however, that within a very few weeks thematerial reduction of local or regional interference, the redistribution of fre-quencies so as to clear most of the broadcasting channels, and the decrease ofpower for stations in residential districts will combine to render radio recep-tion in general very much better than it has been in a long time . Special attention is called to the fact that the commission has no unusedfrequencies to allocate. Every broadcasting channel is filled to its apparent capacity and in some cases possibly overcrowded . Accordingly, any listenerwho wants a different allocation of frequency or power for his favorite station,or any broadcaster who seeks increased facilities for service, must be preparedto show specifically what other station should be required to give up its fre-quency or have its power reduced in order to make possible the desiredreallocation. CONSOLIDATION OF STATIONS In an address before the National Press Club, on April 30, 1927, which was widely broadcast, Chairman Bullard said One of the plans whereby the commission hopes and expects to help thepublic to get better broadcasting service, and at the same time to bring about REPORT OF THE FEDERAL RADIO COMMISSION far greater economy and efficiency in broadcasting service, is that of encourag- ing the consolidation of radio stations through the use of two or more sets ofcall letters for a single transmitter . This plan has actually been put intooperation in a number of places, with admirable results, and the commissionis definitely encouraging it as one way to provide better service for the listeningpublic. In reviewing the work of the commission up to that time, Chairman Bullard said When the commission began its work less than six weeks ago, it was apparentthat the first requisite was complete and accurate information as to the actualbroadcasting situation . The license applications on file with the Departmentof Commerce merely showed what the applicants asked for ; they did not giveany adequate information as to just what power and time each station wasactually using, and in some cases they did not even indicate whether the station.was actually in operation. The sworn statements made by the broadcasters in .their new applications for license, together with the applications for construc-tion permits and the detailed reports of the Federal radio supervisors, havegiven the commission a complete and accurate picture of the broadcasting situa-tion as it really is to-day, and it is on the basis of this picture that the commis-sion is going ahead with the task of reassigning frequencies, power, and time .Remember, that all this assembling of information had to be done by an entirely-new body, with no previously existing staff and with very limited funds . Con-sidering the difficulties which had to be overcome, the commission feels thatthese six weeks have shown a very satisfactory amount of progress and givethe listeners just reason to hope and believe that within the next month or twothe commission will have gone far toward solving the problem of untangling thetraffic on the channels of radio communication.Although the temporary permits now in force were issued primarily to savethe broadcasters themselves from liabilities under the law, they have resultedin a most gratifying improvement in broadcasting conditions. The six wavesreserved for Canada have been entirely cleared, and thus an international radioproblem has been very largely solved . One hundred and twenty-nine stationswhich were operating on " split kilocycle frequencies "-that is to say, on wavelengths where each station caused heterodyning both above and below itself-have been reallocated . Maximum power allowances have been materially cutdown for stations located within congested residential districts and in caseswhere acute interference was reported. Although the definite nation-wide reallocat'on has yet to be carried out, the progress thus far made is mostencouraging and helpful . PRELIMINARY WORK OF THE COMMISSION Reviewing the preliminary work of the commission while discuss- ing "The big job yet to be done in radio," Commissioner Caldwell, in an address in Chicago June 11, 1927, said in part : We have had about six years of radio broadcasting. It was in 1921 thatthe first station (KDKA) started operating, and soon other stations followed.From 1922 to the middle of 1926 radio grew and grew in popularity, salesmounted, and a great new industry was in the making . Then somethinghappened .In July, 1926, just 10 months ago, the Attorney General of the United Statesrendered his famous opinion that the Secretary of Commerce, under the radiolaw of 1912, was without power to control the broadcasting situation or toassign wave lengths. Thus, after five years of orderly development, controlwas off. Beginning with August, 1926, anarchy reigned in the ether.As the result many stations jumped without restraint to new wave lengthswhich suited them better, regardless of the interference which they m'ght thusbe causing to other stations . Proper separation between established stationswas destroyed by other stations coming in and camping in the middle of anyopen spaces they could find, each interloper thus impairing reception of threestations-his own and two others.Instead of the necessary 50-kilocycle separation between stations in the samecommunity, the condition soon developed where separations of 20 and 10 kilo-cycles, and even 8, 5, and 2 kilocycles, existed . Under such separations, of REPORT OF THE FEDERAL RADIO COMMISSION course, stations were soon wildly blanketing each other while distracted listenerswere assailed with scrambled programs .Wave lengths assigned to Canada were violated, in spite of repeated warnings from the Government and even personal appeals from members of the Presi-dent's Cabinet that national good faith and international good will were atstake . Meanwhile 250 new stations bad injected themselves into the alreadyovercrowded situation and undertook to find perches on which to light, withoutrespect to the existing stations .Some of the older stations also jumped their power, increasing 5 to 10 times their output, and as a result delivering terrific heterodyne interference to dis-tant stations that had been previously undisturbed under the orderly radiopattern developed by the former supervising authorities and heterodyne inter-ference between broadcasters on the same wave length became so bad at manypoints on the dial that the listener might suppose instead of a receiving set hehad a peanut roaster with assorted whistles . Indeed, every human ingenuity and selfish impulse seemed to have been exerted to complicate the tangle inthe ether. NEW LAW BROUGHT RELIEF On February 23 of this year Congress passed the new radio law of 1927,putting great powers of radio control in the hands of a commission appointedby the President to serve full time for one year in clearing up the radio con-fusion . For the first 60 days of the law, or until April 23, no penalties wereenforceable ; but on April 24, when tines up to $5,000 and penitentiary sen- tences up to five years became effective, the commission actively put into effectits plans and operations to clear out the interference .The first steps were (a) to transfer all stations to authorized channels on"even tens" of kilocycles, (b) to clear the Canadian waves, and (c) to com-bine interfering stations and tuck them in wherever possible in the spectrum,in order to keep them in operation without interfering with those stationswho bad remained faithfully on their assigned channels. This was accom-plished for the period of the temporary permits, beginning April 24 . REALLOCATION OF ALL STATIONS During the meantime, with the public given partial relief, it was possible for the commission to make a careful study of the situation, and by pains-taking planning arrange for the second big step-a reallocation of all stations in the best interests of the listening public. When this reallocation took effectlisteners found that (a) for each locality local, stations were well distributedalong the dial, with minimum separations of 50 kilocycles ; (b) stations wererecognized in terms of position and time on the basis of their demonstratedcapacity to serve the public ; and (c) heterodyne interference between distantstations, in general, diminished . These improvements have been accomplished by repacking the channels accord'ng to an orderly plan, actually increasing thecapacity of the 89 channels available, in much the same way that a lumber binwhich appeared full when lumber had been carelessly thrown into it from alldirections can hold considerably more when the lumber is packed in an orderly fashion and the former wasted open spaces avoided .Sixty-day licenses issued for June 15 to August 15, and the operation of the new allocation will be carefully watched in the light of actual experience duringthis period, so that necessary changes can be made where interference is experi-enced . Such actual experience is necessary in view of the irregular and unpre-dictable transmission in different directions which almost every station sendsout . If the ordinary station's radiation went out equally in all directions,making the station's interference area a big circle, the task of fitting stationstogether without interference at minimum distances would be simple ; but asevery listener knows, some stations are unaccountably heard for many milesin one or more directions while being shut off by natural "barriers" in otherdirections. Advantage must be taken of all these curious unpredictable phe-nomena and adjustments made before the new station set-up will be reallyworking at its best. Here only actual experience, and not engineering theory,can be the guide. The commission is therefore likely to continue issuing onlyshort-term licenses of 60 to 90 day duration on through the winter months, in order to test out the transmission conditions during the cold-weather period ofgreatest radio effectiveness, before any long-term licenses are granted . 12 REPORT OF THE FEDERAL RADIO COMMISSION PUBLIC HEARING DOCKET Under General Order No. 12, the commission held 16 hearings before June 30, 1927-the period covered by this report--of broad- casters who were dissatisfied with the allocation as to frequency, power, or time division granted them under the 60-day licenses, effec- tive June 15 . Because of his legal training and experience, Commis- sioner Sykes presided at the hearings at the request of Chairman Bullard . The first hearing was held on May 27, 1927, upon applica- tion of Station WJAZ, Mount Prospect, Ill., which sought a change in frequency from 1,140 kilocycles to 770 kilocycles. That application was denied . The other hearings, with decisions of the commission, follow May 81.-Station WGS, New York, asked for a change in frequency from 1,170 kilocycles to 710 kilocycles . Denied. Station WGL, New York, assigned 1,170 kilocycles, sought 1,070 kilocycles. Denied. June 1.--Station WDWM, Newark, N. J., licensed to operate on 1,270 kilo- cycles, sought 1,070 kilocycles. Application denied .June E.-Station WGES, Chicago, assigned 1,240 kilocycles, sought 920 kilo- cycles. Denied . June 8.-Station WGCP, Newark, N . J., assigned 1,070 kilocycles, sought 810kilocycles . Denied . Station WLWL, New York, assigned 1,020 kilocycles,sought 810 kilocycles. Approved . June 10.-Station WBT, Charlotte, N . C ., assigned 500 watts power, sought1,000 watts . Application approved for period 7 a . m. to 7 p. m. Station WGBI,Scranton, Pa ., assigned 100 watts, sought 500 watts . Granted 250 watts. June 1.--Station WBBR, Brooklyn, Assigned 1,170 kilocycles, sought 660kilocycles . Denied . June 21.--Station WCGU, Sea Gate, New York Harbor, assigned 1,420 kilo-cycles, sought 970 kilocycles . Denied. Station WBRS, Brooklyn, N . Y ., assigned 1,420 kilocycles, sought 760 kilocycles . Denied . June 22.-Station WBNY, New York, assigned 1,270 kilocycles, sought 1,070kilocycles . Denied. Station NHAP, New York, assigned 1,270 kilocycles, sought 1,070 kilocycles . Denied . Station WGBB, Freeport, N . Y., applied for permis-sion to remain at assigned frequency of 1,220 kilocycles . Granted . GENERAL ORDERS ADOPTED General orders adopted by the commission outline succinctly the policies agreed upon as the most effective way to put into effect the radio act of 1927 . Those approved up to July 1, 1927, follow EXTENSION OF AMATEUR AND SHIP LICENSES [General Order No. 1, March 15, 19271 The Federal Radio Commission, under authority of the act of February 23, 1927, hereby extends the force and effect of all radio amateur and ship licenses issued by the Department of Commerce from and after this date until furtherorders from this commission, this extension to be of the same force and effectas though new licenses had been issued by this commission, subject to such gen-eral regulations as this commission may from time to time issue . PUBLIC HEARINGS [General Order No . 2, March 15, 1927] For the purpose of providing opportunity for the presentation to the FederalRadio Commission of general suggestions as to methods for reducing interfer-ence within the broadcasting band, but not for hearing individual claims orcomplaints, the Federal Radio Commission hereby sets the dates of Tuesday, REPORT OF THE FEDERAL RADIO COMMISSION March 29, Wednesday, March 30, Thursday, March 31, and Friday, April 1, forpublic hearings, to be held in the offices of the Federal Radio Commission,Commerce Build:ng, Washington, beginning each morning at 10 o'clock . EXTENSION OF LICENSES [General Order No. 3, March 29, 19271 All coastal, point-to-point, technical and training, and experimental radio- station licenses in force on the 22d day of February, 1927, are hereby extendeduntil the further order of the commission . BROADCASTING FREQUENCY BAND [General Order No. 4, April 5, 19271 In view of the manifest inconvenience to the listening public which wouldresult from any immediate widening of the frequency band devoted to radiobroadcasting, the Federal Radio Commission will not at this time allocate to broadcasting stations frequencies other than those between 550 and 1,500kilocycles (545 .1 to 199.9 meters), except on specific request of such stations . It believes, however, that the band between 1,500 and 2,000 kilocycles (199.9 to149.9 meters) should, so far as may be practicable, be held open for experimentalwork in broadcasting and allied forms of radio service, to the end that, withthe further development of the art, this band may be eventually made availablefor broadcasting, whether for the ear or the eye, if it shall prove particularlywell adapted to such type of service to the public . EXTENSION OF BROADCAST LICENSES [General Order No . 5, April 5, 19271 On Sunday, April 24, at 11.59 p . m ., terminates the period of 60 days duringwhich, under section 40 of the radio act of 1927, no holder of a license or anextension thereof issued by the Secretary of Commerce under the act of August13, 1912, is subject to the penalties provided in the radio act of 1927 for operating a station without a license. .The Federal Radio Commission will issue a temporary permit to operate aradio broadcasting station, good only until final action is taken by the commis-sion on the application for license, to each holder of a license or an extensionthereof from the Secretary of Commerce under the act of August 13, 1912, whoseapplication for a license under the radio act of 1927 has been received by the Federal Radio Commission on or before April 24, 1927, and such temporarypermit shall, until withdrawn, be considered as having the force and effect of a license in so far as the penalties provided in the radio act of 1927 are concerned.After April 24, 1927, any person operating a radio broadcasting station other- wise than under the authority of such a temporary permit or a license issuedby the Federal Radio Commission will be deemed by the commission to beoperating a broadcasting station without a license . LICENSES FOR PORTABLE STATIONS [General Order No . 6, April 26, 1927) 1 3 Since the exact location of any radio broadcasting transmitter is an essentialfeature of the license, the Federal Radio Commission, as already announced,will not consider any application for a broadcasting license, except for a verylimited period of time, in which the permanent location of the transmitter isnot specified . However, for the purpose of enabling so-called portable stationswhich were duly licensed under the law of 1912 to render service to the publicduring the spring and summer months, the Federal Radio Commission will issue to such stations licenses for not more than 120 days, to operate with not morethan 100 watts power output, and with frequencies of 1,470 and 1,490 kilocyclesonly. Any such permit may be revoked by the commission at any time if itbe shown that the operation of the station thus licensed is causing interferenceprejudicial to the public interest . 14 REPORT OF THE FEDERAL RADIO COMMISSION ONLY HALF KILOCYCLE DEVIATION ALLOWED [General Order No. 7, April 28,1927] The Federal Radio Commission hereby fixes a maximum of one-half kilocycleas the extreme deviation from authorized frequency which will be permittedto any broadcasting station operating under permit or license issued under theterms of the radio act of 1927. The Department of Commerce is hereby re-quested to notify its proper agents immediately of this order and to directthem to report promptly any apparent violations thereof . Maintenance of theassigned frequency within the limits herein prescribed is the duty of each radiobroadcasting station, and violation of this order will be deemed by the FederalRadio Commission cause for revocation of license under section 14 of the radioact of 1927.To facilitate the execution of this order, each radio broadcasting station ishereby directed, effective 12.01 a . m., local time, Monday, May 9, to announcetwice each day, at the beginning and end of its program, that it is broadcastingon a frequency of- kilocycles by authority of the Federal Radio Commission . PLAN TO CHECK FREQUENCIES [General Order No. 8, May 5, 1927] For the purpose of facilitating a more accurate check on station frequenciesboth by the Federal radio supervisors of the Department of Commerce and bythe public, each radio broadcasting station, licensed under the radio act of 1927,is hereby directed to announce its call letters and location as frequently as maybe practicable while it is broadcasting, and in any event not less than onceduring each 15 minutes of transmission.It is understood, however, that this requirement is waived when such an-nouncement would interrupt a single consecutive speech or . musical number,and in such cases the announcement of the call letters and location shall bemade at the beginning and end of such number .This order becomes effective at 12.01 a . m . Wednesday, May 11, 1927, andwill remain in force until further notice . TO PREVENT SPECULATION IN RADIO STATION'S [General Order No. 9, May 13, 1927] Section 12 of the Federal radio act provides that no station license shall betransferred or assigned, either voluntarily or involuntarily, without the consentin writing of the licensing authorities .It is hereby ordered that any person desiring to purchase a broadcastingstation shall make application for a new license to the commission on theapplication blank forms . In addition thereto, the proposed seller or assignorof the station must also write a letter to the commission to the effect that hedesires to sell or transfer this station to the applicant for the above-namedlicense and wishes a license issued to this applicant in place and instead ofhimself.The commission may either grant or refuse the license or grant with modifica-tion as to frequency and power . DAYTIME POWER INCREASED IN SPECIAL CASES [General Order No. 10, May 18, 1927] For the purpose of facilitating wider and better reception of daytime serviceprograms, such as those of educational and religious institutions, civic organi-zations, and distributors of market and other news, the Federal Radio Com-mission will consider applications from holders of broadcasting station licensesfor the use, between the hours of 6 a . m . and 6 p. m . local time only, of alarger power output than is authorized by such licenses. Applications for thisdaytime privilege must be made to the commission in writing and shall specifythe maximum daytime power to be used, the approximate daytime broadcastingschedule, and the reasons why, in the applicant's estimation, the granting ofsuch privilege would be in the interest, convenience, or necessity of the public. REPORT OF THE FEDERAL RADIO COMMISSION In each case where such privilege is granted the Federal Radio Commissionwill notify the radio division of the Department of Commerce, requesting thisdivision, through the Federal, radio supervisors, to check carefully the use of power by such station, both day and night . Any failure to revert to the powerspecified in the license between 6 p . m. and 6 a. m. will be held cause not onlyfor immediate withdrawal of the daytime power privilege but for reduction ofthe maximum power authorized for use at night. TERMINATES TEMPORARY PERMITS (General Order No . 11, May 21, 19271 The Federal Radio Commission hereby orders that all temporary permits tooperate radlobroadcasting stations under the terms of the radio act of 1927shall terminate at 3 o'clock, local standard time, on the morning of Wednes-day, June 1, 1927, and that thereafter all radiobroadcasting stations subject to the provisions of the radio act of 1927 shall be operated solely in accordancewith the provisions of the licenses issued as of June 1, 1927, by the Federal Radio Commission. RULES FOR HEARINGS BEFORE COMMISSION [General Order No . 12, May 26, 1927] 15 In all cases in which the 60-day license, effective June 1, offered the licenseeis not in accord with the application, the applicant is hereby notified that thecommission has not determined that public interest, convenience, or necessitywould be served by the granting of such application .Any applicant for license who is dissatisfied with the allocation as to fre- quency, power, or time division granted him in the 60-day license issued by thecommission which is effective June 1, and who desires a hearing upon his appli-cation, may notify the commission in writing of such desire by June 15, 1927 .The commission will thereupon fix a time and place for such hearing. Pend-ing the hearing and the decision thereon by the commission, the applicant willbe permitted to broadcast only under the terms and conditions and in accord-ance with his 60-day license issued by the commission.The applicant for license may introduce at the hearing before the FederalRadio Commission any witnesses he may desire. In addition thereto, he mayintroduce any affidavits relating to relevant facts .The fact in issue is whether or not public interest, convenience, or necessitl-will be served by granting to the' applicant a license upon the wave length or frequency requested in the application, or in the application as amended inthe request for hearing, and with the power therein requested and the placefor said station therein designated .All persons interested in the granting or refusal of the application and thefrequency therein applied for, including other licensees authorized to use thefrequency requested, licensees upon frequencies where interference is claimed,other applicants for the same frequency, and representatives of the public ingeneral, may appear and will be heard upon any relevant matters. The com-mission may likewise introduce witnesses or affidavits .All applications for licenses or copies thereof on file with the commission may be introduced in evidence at the hearing. All temporary permits, temporarylicenses or copies thereof, and other records on file with either the FederalRadio Commission or the Department of Commerce may be introduced in evi-dence at the hearing without any further verification .The witnesses introduced at the hearing, before testifying will be sworn bya member of the commission . The commission will pass upon the .relevancyand competency of the testimony offered to be introduced before it . After theconclusion of the hearing and within a reasonable time the commission willrender its decision in writing .The testimony and proceedings at these hearings will be taken down byshorthand reporters designated by the commission, so that the entire record of the proceedings and hearings may be preserved in case of appeal, as providedby section 16 of the radio act of 1927 . All hearings provided for by this orderwill be public and will be held at the offices of the Federal Radio Commissionin Washington . 16 REPORT OF THE FEDERAL RADIO COMMISSION In consideration of the fact that a certain amount of time is required inmany cases for making the changes of equipment required by changes of station frequency and for securing suitable control equipment to maintain fre-quency without serious variation, the Federal Radio Commission hereby amends General Order No. 11, dated May 21, 1927, to read as follows : "The FederalRadio Commission hereby orders that all temporary permits to operate radiobroadcasting stations under the terms of the radio act of 1927 shall terminateat 3 o'clock, local standard time, on the morning of Wednesday, June 15, 1927,and that thereafter all radio broadcasting stations subject to the provisions of the radio act of 1927 shall be operated solely in accordance with the provisionsof the licenses issued as of Jane 1, 1927, by the Federal Radio Commission."The Federal Radio Commission hereby orders that all licenses for the periodof 60 days, issued as of June 1, 1927, shall not become effective until 3 o'clock,local standard time, on the morning of Wednesday, June 15, 1927, and shall con-tinue in effect unless previously revoked or modified by order of the commission,for a period of 60 days after June 15, 1927. Respectfully, NEW LICENSES MADE EFFECTIVE JUNE 15, 1927 [General Order No . 13, May 28, 1927] TESTIMONY AS GUIDE TO COMMISSION [General Order No . 14, June 3, 1927] Testimony introduced at any hearing relative - to any particular station orany particular frequency will, when relevant, be considered as testimony bythe commission at any of its subsequent hearings . Applicants may examine these records . INTERFERENCE HEARINGS [General Order No . 15, June 7, 1927] For the purpose of providing an orderly method for the reduction and eventualelimination of interference between radio broadcasting stations operating onthe same or on closely adjacent frequencies, the Federal Radio Commissionannounces the following procedure : "At any time after July 15, 1927, any radiobroadcasting station operating under license from the Federal Radio Commis- sion may file with the commission an affidavit certifying that unreasonable andinjurious interference with its signals is being caused by the simultaneousoperation of another radio broadcasting station, the name or call letters of which must be specified in the affidavit . The affidavit must likewise specify not lessthan two occasions on which such interference was observed, with the name andaddress of the person making each of such observations, the type of receiving setused, and the date and hour thereof . On receipt of such affidavit, and if in thejudgment of the Federal Radio Commission the interference complained of is actually unreasonable and injurious to the affiant, the commission will appointa date for a hearing, at its convenience, will notify thereof the parties interested,and on the basis of the testimony presented at such hearing will order suchchanges of frequency, power, or hours of operation as may appear best to servepublic interest, convenience, or necessity ." W. H. G. BULLARD,Chairman Federal Radio Commission . ADDITIONAL COPIES OF THIS PUBLICATION MAY BE PROCURED FROMTHE SUPERINTENDENT OF DOCUMENTSU. S. GOVERNMENT PRINTING OFFICEWASHINGTON, D . C.AT 5 CENTS PER COPY