# Appendix — Federal Communications Commission v. National Citizens Committee for Broadcasting

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385004_1574%3A06

## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1978
- **Citation:** 436 U.S. 775

## Text

APPENDIX

IN THE

SUPREME COURT OF THE UNITED STATES

OCTOBER TERM, 1977

Nos. 76-1471, 76-1521, 76-1595,
76-1604, 76-1624, 76-1685

FEDERAL COMMUNICATIONS COMMISSION;
CHANNEL TWO TELEVISION COMPANY, et al. ;
NATIONAL ASSOCIATION OF BROADCASTERS;

AMERICAN NEWSPAPER PUBLISHERS ASSOCIATION;
ILLINOIS BROADCASTING COMPANY, INC.; and
Post CoMPANY, et al,

Petitioners,

NATIONAL CITIZENS COMMITTEE FOR BROADCASTING,
FEDERAL COMMUNICATIONS COMMISSION, and
UNITED STATES OF AMERICA,

Respondents.

ON WRITS OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS FOR
THE DISTRICT OF COLUMBIA CIRCUIT

Volume I — Pages 1-444

| eee a TSS, 2 TIT
Washington, 0.C. + THIEL PRESS + (202) 638-4521

PETITIONS FOR WRITS OF CERTIORARI FILED
April 22, 1977; May 2, 1977; May 13, 1977;
May 16, 1977; May 20, 1977; and May 27, 1977;
CERTIORARI GRANTED OCTOBER 3, 1977

(i)
TABLE OF CONTENTS

VOLUME I:

DOCKET ENTRIES IN THE UNITED STATES COURT
OF APPEALS FOR THE DISTRICT OF COLUMBIA
CIRCUIT IN NOS. 75-1064, 75-1152, 75-1263, 75-1289,
75-1327, 75-1379, 75-1386, 75-1387, 75-1388, 75-1567,
TE-2G14G, TE-1GIG ccc cc cccccccccccccees _

FEDERAL COMMUNICATIONS ACT OF 1934, AS
AMENDED, 47 U.S.C. §151 et seq.

FIRST REPORT AND ORDER (Docket No. 18110),
Roe Ff Til, Berererrerrerrrrerrrrrrre

FURTHER NOTICE OF PROPOSED RULEMAKING
(Docket No. 18110), 22 FCC 2d 339 (1970) ........

MEMORANDUM OPINION AND ORDER (Docket
No. 18110), 45 FCC 2d 768 (1974) ............-

SECOND REPORT AND ORDER (Docket No. 18110),
50 FCC 2d 1046 (1975) (text of rules adopted by
FCC appears at 50 FCC 2d 1099) ............-44.-

MEMORANDUM OPINION AND ORDER (ON RE-
CONSIDERATION) (Docket No. 18110), 53 FCC
2d 589 (1975) (modification of certain rules adopted
by FCC appears at 53 FCC 2d 599) ...... seecueeces

OPINION OF THE UNITED STATES COURT OF
APPEALS FOR THE DISTRICT OF COLUMBIA
CIRCUIT, 555 F.24 988 (1977) 2... cc cccccccces

(1)

JUDGMENT OF THE UNITED STATES COURT OF
APPEALS FOR THE DISTRICT OF COLUMBIA

REED LOE ILE OTE IO TT

OPINION OF THE UNITED STATES COURT OF
APPEALS FOR THE DISTRICT OF COLUMBIA
CIRCUIT ON MOTION FOR STAY OF MAN-

DATE, 555 F.26 967 (1977) oc. cece cece ene

VOLUME II (Exhibits):

LEGAL OPINION OF FCC GENERAL COUNSEL
HAMPSON GARY SUBMITTED TO THE
SENATE INTERSTATE COMMERCE

COMMITTEE, January 25, 1937 ...........4-.

M.H. SEIDEN & ASSOCIATES, INC., “MASS
COMMUNICATIONS IN THE UNITED STATES —
1970,” SUMMARY VOLUME (1971) (RESEARCH
CONDUCTED ON BEHALF OF THE NATIONAL

ASSOCIATION OF BROADCASTERS) ........--.-

ANDERSON, “BROADCAST STATIONS AND
NEWSPAPERS: THE PROBLEM OF INFORMA-
TION CONTROL: A CONTENT ANALYSIS OF
LOCAL NEWS PRESENTATIONS” (1971)

(NAB EXHIBIT E), pp. 1-46.............-005:
COMMENTS OF NAB (1971), pp. 11-24; 59-63 ......

STERLING, “OWNERSHIP CHARACTERISTICS
OF BROADCASTING STATIONS AND NEWS-
PAPERS IN THE TOP 100 MARKETS: 1922-
1967” (March 5, 1971) (NAB Exhibit C),

ae 0)

ROBBINS, “A STUDY OF PIONEER AM RADIO
STATIONS AND PIONEER TELEVISION STA-

TIONS” (April 1971) (NAB Exhibit D), pp. 1-21 ....
COMMENTS OF ANPA (April 2, 1971), pp. 5458 ....

COMMENTS OF THE HOUSTON POST COMPANY,
CHANNEL TWO TELEVISION COMPANY, AND
KPRC RADIO COMPANY (May 17, 1971),

PP. 16-25 ... eee e cece cevees TTTTTITL Lt

432

435

445

466

-- 5938

659

Bo

(ut)

COMMENTS OF A.H. BELO CORPORATION

a A: HI a os cues s

COMMENTS OF THE WASHINGTON POST
COMPANY AND POST-NEWSWEEK STA-
TIONS, CAPITOL AREA, INC. (May 17, 1971),

Ss BS cc escecesecceseeseecncesoecececcs

COMMENTS OF THE PULITZER PUBLISHING

COMPANY (May 17, 1971) .............ee00-

VOLUME III (Exhibits):

NAB REPLY COMMENTS AND ARGUMENTS ON
THE PROPOSED RULES, APPENDICES B, C,

AND D (August 18,1971) ............eeeee

REPLY COMMENTS OF STEPHEN R. BARNETT
(August 19, 1971), pp. 17-22; 27-40; 73-81;
147-159; 190-194

COMMENTS OF POST-NEWSWEEK STATIONS,
CAPITOL AREA, INC. (May 1974), pp. 6-17

FURTHER COMMENTS OF NCCB (May 15, 1974)
SUPPLEMENT TO NAB EXHIBIT C REGARDING

CROSS-OWNERSHIP OF BROADCAST STATIONS

AND NEWSPAPERS (May 1974)

SUPPLEMENTAL STATEMENT OF NAB AND
EXHIBIT F REGARDING RECENT TRANSFERS
OF BROADCASTING STATIONS (REVISED)
(May 1974)

FURTHER COMMENTS OF THE PULITZER
PUBLISHING COMPANY AND KSD/KSD-TV,
INC. (May 15, 1974)

REPLY COMMENTS OF POST-NEWSWEEK STA-
TIONS, CAPITOL AREA, INC. (June 17, 1974)

FCC PUBLIC NOTICE 26054-B, “HEARING
CALENDAR” (July 15, 1974)

TRANSCRIPT OF ORAL ARGUMENT IN DOCKET

18110 (July 1974), pp. 130-145; 158-161; 179-181;
186-194; 380-385; 440-445

a me wees eeee ees

"ee eeeeeeeeeCcerceCet@et@eeeee& 6 ee 6 8

734

743

774

(w)

RAND CORPORATION STUDY, R-1585-MF, “NEWS-
PAPER-TELEVISION STATION CROSS—
OWNERSHIP: OPTIONS FOR FEDERAL
ACTION: (September 1974), Tables 7-10 ....------ 967

LETTER TO CHAIRMAN WILEY AND COM-
MISSIONER HOOKS AND EDWARD HAYES
ON BEHALF OF THE NATIONAL BLACK
MEDIA COALITION (September 9, 1974) ...------- 983

BARNETT, S., “CROSS-OWNERSHIP OF MASS
MEDIA IN THE SAME CITY: A REPORT
TO THE JOHN AND MARY MARKLE
FOUNDATION: (Sept. 23, 1974), pp. 1-2;

General Docket

United States Court of Appeals
for the
District of Columbia Circuit

Nos. 75-1064, 75-1152, 75-1263, 75-1289,
75-1327, 75-1379, 75-1386, 75-1387, 75-1388,
75-1567, 75-1614, 75-1618*

Date Filings — Proceedings

1975

Jan. 28 National Citizens Committee for Broadcasting

(NCCB) petition for review of an order of the
FCC [75-1064]

28 Certified copy of petition for review of an
order of the FCC was mailed to FCC
[75-1064]

31 NCCB’s motion for leave to amend Petition
for Review [75-1064]
Feb. 13 Certificate of Service for Petition for Review
[75-1064]

18 Motion of Elyria-Lorain Broadcasting Com-
pany for leave to intervene [75-1064]

*Case numbers, listed in brackets, denote the Docket in which
the pleading is recorded. As case Nos. 75-1152, 75-1263,
75-1289, 75-1327, 75-1379, 75-1386, 75-1387, 75-1388,
75-1567, 75-1614, and 75-1618 are consolidated with No.
75-1064, only No. 75-1064 is listed as a reference, when

appropriate.

18

20

21

24

24

26

26

26

26

26

26

27

27

27

2

Motion of WEEU Broadcasting Company for
leave to intervene [75-1064]

Owosso Broadcasting Company’s, Inc. petition
for review for an order of the FCC [75-1152]

Certified copy of a petition for review of an
order of the FCC was mailed to FCC U.S.
Attorney General [75-1152]

Order per CJ Bazelon granting NCCB’s
motion for leave to amend petition for review
[75-1064]

Amended petition for review [75-1064]

Motion of The Hearst Corp., for leave to
intervene [75-1064]

Motion of Scripps-Howard Broadcasting Co.,
et al., for leave to intervene [75-1064]

Motion of Belo Broadcasting Corp., for leave
to intervene [75-1064]

Motion of Washington Post Co., et al., for
leave to intervene [75-1064]

Motion of WHAS, Inc., for leave to intervene
[75-1064]

Motion of the American Newspaper Publishers
Assoc., for leave to intervene [75-1064]

Motion of General Electric Broadcasting
Company, Inc. for leave to intervene
[75-1064]

Motion of Forward Communications Corpora-
tion, et al. for leave to intervene [75-1064]

Motion of American Broadcasting Companies,
Inc. for leave to intervene [75-1064]

27

27

27

28

28

28

Mar. 6
10

12

14

3

Motion of Lee Enterprises, Inc., et al. for
leave to intervene [75-1064]

Motion of Illinois Broadcasting Company, Inc.
et al., for leave to intervene [75-1064]

Motion of Houston Post Company, et al. for
leave to intervene [75-1064]

Motion of Louisiana Television Broadcasting
Corp. for leave to intervene [75-1064]

Motion of KUTV, Inc. for leave to intervene
[75-1064]

Clerk’s order granting motions of Elyria-
Lorain Broadcasting Co., WEEU Broadcasting
Company, The Hearst Corp., Scripps-Howard
Broadcasting Co., Belo Breadcasting Corp.,
Washington Post Co., et al., WHAS, Inc., and
the American Newspaper Publishers Associ-
ation for leave to intervene herein; counsel
for the intervenors are encouraged to file
joint briefs wherever practicable and may
participate in oral argument only to the
extent all are able under Rule 12 of the
General Rules of this Court [75-1064]

Certified index to record [75-1064]

Clerk's order sua sponte, that the first
paragraph of the order filed February 28,
1975 is amended by adding the words “and
the W.E. Scripps Company” [75-1064]

FCC’s and US’s motion to consolidate
75-1064 and 75-1152 [75-1064, 75-1152]

Clerk’s order granting motions for General
Electric Broadcasting Co., Inc.; Forward
Communications Corp. et al.; American

Apr.

18

18

21

24

24

28

31

4

Broadcasting Co. Inc.; Lee Enterprises, Inc.;
Illinois Broadcasting Co. Inc.; Houston Post
Co. et al.; Louisiana Television Broadcasting
Corp., and KUTV Inc. for leave to intervene;
counsel for the intervenors are encouraged to
file joint briefs wherever practicable and may
participate in oral argument only to the
extent allowable under Rule 12 of the
General Rules of this Court [75-1064!

Gazette Printing Company’s petition for
review of an order of the FCC [75-1263]

Certified copy of a petition for review of an
order of the FCC mailed to the FCC and the
Attorney General [75-1263]

FCC’s motion to hold in abeyance [75-1064,
75-1152]

National Association of Broadcasters’ (NAB)
petition for review of an order of the FCC
[75-1289]

Certified copy of the petition for review of
an order of the FCC was mailed to the FCC
and the U.S. Attorney General [75-1289]

Clerk’s order granting FCC’s motion to
consolidate and Nos. 75-1064 and 75-1152
are consolidated for consideration on the
merits [75-1064, 75-1152]

United States petition for review of an order
of the FCC [75-1327]

Response of U.S. to motion of FCC to hold
in abeyance [75-1064]

Certified copy of a petition for review of an
order of the FCC was mailed to FCC and the
U.S. Attorney General [75-1327]

10

5

Joint motion of Lee Enterprises, Inc. and
WKY Television System, Inc. for leave to
intervene [75-1327]

NCCB’s motion for leave to file a response to
motion to hold in abeyance [75-1064]

Proceedings transferred from the United
States Court of Appeals for the 4th Circuit
75-1386, 75-1387, 75-1388]

Order granting motion of WHAS, Inc. for
leave to intervene (filed in 4th Circuit)
[ 75-1386, 75-1387, 75-1388]

Order granting motion of Louisiana Television
Broadcasting Corporation for leave to inter-
vene (filed in 4th Circuit) [75-1386, 75-1387,
75-1388]

Motion of the National Citizens Committee
for Broadcasting for leave to intervene (filed
in 4th Circuit) [75-1386, 75-1387, 75-1388]

Order granting consolidation of 75-1387,
75-1388 (filed in 4th Circuit) [75-1386,
75-1387, 75-1388]

FCC’s and US’s motion to further consolidate
case with Nos. 75-1263, 75-1289 and 75-1327
[75-1064, 75-1327, 75-1289, 75-1263]

Order per Wright ACJ, that the time for filing
NCCB’s brief in the consolidated cases is
extended to June 8, 1975 [75-1064]

Response of National Citizens Committee for
Broadcasting, to the FCC’s motion to hold in
abeyance [75-1064]

Clerk’s order granting NCCB’s motion to
accept late filed response to FCC’s motion to

10

11

11

11

11

16

23

23

6

hold in abeyance and the Clerk is directed to
file NCCB’s response to the motion to hold in
abeyance [75-1064]

Response of NCCB to the FCC’s motion to
hold in abeyance [75-1064]

Proceedings transferred from the U.S. Court
of Appeals for the 8th District [75-1379,
75-1064]

Motion of WHAS, Inc. for leave to intervene
(filed in 8th Circuit) [75-1379, 75-1064]

Motion of Louisiana Television Broadcasting
Corp. for leave to intervene (filed in 8th
Circuit) [75-1379, 75-1064]

FCC’s and US’s motion to transfer (filed in
8th Circuit) [75-1379, 75-1064]

WJAG’s, Inc. opposition for motion to
transfer (filed in 8th Circuit) [75-1379,
75-1064]

Clerk’s order granting motion by WHAS, Inc.
and Louisiana Television Corporation for
leave to intervene in this case. Counsel for the
intervenor may participate in oral argument
only to the extent allowable under Rule 12

of the General Rules of the Court [75-1379,

75-1064]

Motion of Chronicle Publishing Company, et
al. for leave to intervene [75-1327]

Clerk’s order granting FCC's and US’s motion
to consolidate and Nos. 75-1064, 75-1152,
75-1263, 75-1289, and 75-1327 are consoli-
dated for consideration on the merits
[75-1064, 75-1327, 75-1289, 75-1263]

24

29

30

12

7

Motion of Houston Post Company and
Channel Two Television Company for leave to
intervene [75-1327]

Motion of Pulitzer Publishing Company and
KSD/KSD-TV Inc. for leave to intervene
[75-1327]

Motion of American Newspaper Publishers
Association (ANPA) for leave to intervene
[75-1327]

Motion of KNUJ and Michelson Media Inc.
for leave to intervene [75-1327]

Motion of the Post Co. for leave to intervene
[75-1327]

Motion of KSL Inc. for leave to intervene
[75-1327]

Clerk’s Order granting motions of Lee Enter-
prises, Inc. and WKY Television System, Inc.,
Chronicle Publishing Company, et al., Hous-
ton Post Company, and Channel Two Tele-
vision Company, Pulitzer Publishing Com-
pany, and KSD/KSD-TV Inc., American
Newspaper Publishers Association, KNUJ and
Michelson Media Inc., Post Company and
KSL, Inc. for leave to intervene herein.
Counsel for the intervenors may participate in
oral argument only to the extent allowable
under Rule 12 of the general rules of this
Court [75-1327]

FCC’s and US’s motion to further consolidate
cases with 75-1379, 75-1386, 75-1387 and
75-1388 [75-1064, 75-1386, 75-1379]

Clerk’s order that FCC’s and US’s motions are
granted and Nos. 75-1379, 75-1386, 75-1387

12

15

20

20

21

22

and 75-1388 are consolidated with Nos.
75-1064, 75-1152, 75-1263 and 75-1289 and
75-1327 for consideration on the merits; and
the certified list of record filed in case No.
75-1064 be deemed filed in the consolidated
cases as of the date of this order [75-1064,
75-1386, 75-1379]

Certified index to record (originally filed in
No. 75-1064) [75-1289, 75-1263, 75-1152,
75-1327, 75-1387, 75-1386, 75-1379,
75-1388]

NAB’s motion for clarification of proceedings
and establishment of briefing schedule
[75-1289]

FCC’s and US’s response to NAB’s motion of
clarification of proceedings and establishment

of briefing schedule (filed by FCC) [75-1289]

Statement of Gazette Printing Company in
75-1263 in support of NAB’s motion for
clarification proceedings and establishment of
briefing schedule [75-1289]

Gazette Printing Company’s statement in
support of the motion for clarification of
proceedings and establishment of briefing
schedule filed in No. 75-1289 [75-1263]

United States’ response to NAB’s motion for
clarification of proceedings and establishment
of briefing schedule [75-1289]

Comments of Daily Telegraph Printing Com-
pany in Nos. 75-1387, in support of NAB’s mo-
tion for clarification of proceedings in establish-
ment of briefing schedule [75-1289, 75-1387]

June

27

27

30

11

9

Response of NCCB in No. 75-1064 to NAB’s
motion for clarification on proceedings in
establishment of briefing schedule [75-1289]

NCCB’s response to motion of NAB in No.

75-1289 for clarification of proceedings and
establishment of briefing schedule [75-1064]

NAB’s motion to dismiss petition in No.
75-1327 and strike pleadings filed by Justice
Department in all consolidated cases [75-1289,
75-1327]

Response of US in No. 75-1327 to motion to
dismiss petition and_ strike pleadings
[ 75-1327, 75-1289]

Order per CJ Bazelon that the time for filing
petitioners briefs in the consolidated cases is
extended to September 30th; no further
extensions of time for filing petitioners briefs

will be granted except for extraordinary cause
shown [75-1386, 75-1379, 75-1064]

ANPA’s petition for review of an order of the
FCC [75-1567]

Certified copy of petition for review of an
order of the FCC was mailed to the FCC and
the Attorney General of the United States by
certified mail return receipt requested
[75-1567]

FCC’s response to the motion to dismiss
petition and strike pleadings [75-1289]

NAB’s reply to response of United States, in
No. 75-1327 to motion to dismiss petition
and strike pleadings [75-1289, 75-1327]

16
24

25

25

July 8

1]

15

10

Notice of Substitution of attorney for
intervenor, WHAS, Inc. [75-1064, 75-1379]

Brockway Company’s petition for review of
an order of the FCC [75-1614]

Certified copy of petition for review of an
order of the FCC was mailed to FCC and the
U.S. Attorney General; petition for review
was sent by certified mail return receipt
requested [75-1614, 75-1618]

Gray Communications Systems, Inc. petition
for review of an order of the FCC [75-1618,

75-1614]

Return receipt for copy of petition for review
of an order of the FCC from Attorney
General of the U.S. and FCC [75-1614]

FCC’s motion to consolidate case with Nos.
75-1567, 75-1614, and 75-1618 and motion
to deem record filed [75-1064, 75-1614,
75-1567, 75-1618, 75-1386, 75-1379]

Motion of WKY TV to change name to
Gaylord Broadcasting Company on the court
records [75-1064]

Clerk’s order granting FCC’s and US’s motion
to consolidate and Nos. 75-1064, 75-1152,
75-1263, 75-1289, 75-1327, 75-1379,
75-1386, 75-1387, and 75-1388 are hereby
consolidated for consideration on the merits;
the certified index to the record in 75-1064 is
deemed to be the certified index to the
record in 75-1567, 75-1614 and 75-1618
[75-1064, 75-1614, 75-1567, 75-1618,
75-1386, 75-1379]

16

18

28

31

31

Sept. 5

16

11

Clerk’s order, sua sponte, that this Court’s
order of July 14, 1975 is amended by
deleting the second paragraph thereof and
substituting therefor the following: the mo-
tion is granted and 75-1064, 75-1152,
75-1263, 75-1289, 75-1327, 75-1379,
75-1386, 75-1387, 75-1388, 75-1567,
75-1614, and 75-1618 are hereby consoli-
dated for consideration on the merits
(75-1064, 75-1614, 75-1618, 75-1567,
75-1379, 75-1386]

Clerk’s order granting motion of WKY
Television System Inc. to change name on
Court records and the Clerk is directed to
change the name of WKY Television System
Inc. in case Nos. 75-1064 and 75-1327 to
Gaylord Broadcasting Co. [75-1064]

FCC’s motion to leave to supplement the
record in Nos. 75-1567, 75-1614, and
75-1618 [75-1614, 75-1567, 75-1618]

Clerk’s order granting FCC motion for leave
to supplement the record in No. 75-1567,
75-1614, 75-1618 [75-1614, 75-1567,
75-1618]

Supplement to certified index to record
[75-1614, 75-1618, 75-1567]

Brockway Company’s motion to correct the
record in this case [75-1614]

Clerk’s order granting NCCB’s motion to
correct record in No, 75-1614 and counsel for
the party shall make appropriate arrangements
to include the Oct. 11, 1974 letter with
attachments from James W. Higgins, General

Oct.

19

30

12

Manager of the Brockway Company to
Richard E. Wiley, Chairman of the FCC as a
supplement item to the certified index to
record in these cases [75-1064]

Petitioner’s joint motion to proceed under

Rule 30(c) [75-1289, 75-1387]

Clerk’s order granting joint motion to proceed
under Rule 30(c) and counsel for parties in
the consolidated cases are granted leave to
proceed under the provision of Rule 30(c) of
the FRAP; in lieu of submitting one copy of
the typewritten or page proof brief provided
under Rule 30(c) of the FRAP, counsel for
the parties shall submit seven copies thereof
for filing; counsel for the parties are en-
couraged to file joint briefs wherever prac-
ticable [75-1064]

Brockway Company’s brief [75-1614]

Motion of Public Interest Research Group, et
al. for leave to file brief as amicus curiae
[75-1064]
Gray Communications Systems brief
[75-1618]
Owosso Broadcasting Company’s Inc. brief
[75-1152, 75-1289, 75-1263, 75-1387,
75-1614]

WJAG’s Inc. brief [75-1379]

US’s motion to dismiss petition for review
[75-1327]

NCCB’s motion for leave to file brief time
having expired [75-1064]

14

14
14

16

16

17

20

20

20

13

Order per CJ Bazelon granting NCCB’s
motion in No. 75-1064, for leave to file brief
time having expired, conditioned upon the
brief being brought into compliance with the
rules of this Court [75-1064]

NCCB’s brief [75-1064]

FCC’s motion to revise briefing schedule
[75-1064]

Motion of The Post Company for leave to file
motion for leave for change of intervention

[75-1064]

Motion of KNUJ, Inc. and Michelson Media,
Inc. for leave to file motion for leave for
change of intervention [75-1064]

Motion of the Chronicle Publishing Company,

et al. for leave to intervene, time having
expired [75-1064]

Clerk’s order granting FCC’s and US’s motion
to revise briefing schedule and the followiug
schedule shall apply; FCC’s and US’s brief -
January 5, 1976; reply brief February 10,
1976 [75-1064]

Per Curiam order that NCCB’s motion to
dismiss its petition in No. 75-1327 granted,
and the motion of NAB’s in No. 75-1289, to
dismiss petition, and stay pleadings, is dis-
missed as moot; Wright and McGowan, CJ
[75-1064]

Clerk’s order granting motion for leave to file
brief amicus curiae of the Public Interest
Research Group, et al. and the Clerk is
directed to file the brief of the Public Interest
Research Group, et al. [75-1064]

Nov.

20

22

14

Brief for amicus curiae Public Interest Re-
search Group, et al. [75-1064]

Motion of KSL, Inc. for leave to file motion
for leave to intervene [75-1064]

Motion of Pulitzer Publishing Company and
KSD/KSD-TV, Inc. for leave to file motion
for leave to change intervention from
#75-1327 to #75-1064 [75-1064]

Clerk’s order directing the Clerk to file the
motions for change of intervention of The
Post Co. and KNUJ, Inc. and Mickelson
Media, Inc. for leave to intervene [75-1064]

Clerk’s order directing the Clerk to file the
motions for change of intervention of The
Post Co. and KNUJ, Inc. and Mickelson Media,
Inc. and also Chronicle Publishing Co.;
Chronicle Broadcasting Co.; Buffalo Evening
News, Inc. and WBEN, Inc.; all aforesaid mo-
tions for leave to intervene are granted;
counsel for the intervenors may participate in
oral argument only to the extent allowable
under Rule 12 of the General Rules of this
Court [75-1064]

KNUJ, Inc. and Mickelson Media, Inc. motion
for leave for change of intervention
[75-1064]

The Post Company motion for leave for
change of intervention [75-1064]

Order per CJ Bazelon directing the Clerk to
file the motion of Pulitzer Publishing Co. and
KSD/KSD-TV, Inc. for leave for change of
interventior a No. 75-1064 and the motion
of KSL, ! for leave to intervene in the

Dec.

21

10

24

15

consolidated cases; the motions for interven-
tion are granted and counsel for the inter-
venors are encouraged to file joint briefs
wherever practicable and may participate in
oral argument only to the extent allowable
under Rule 12 of the General Rules of this
Court [75-1064]

The Pulitzer Publishing Co. and KSD/KSD-TV
Inc. motion for leave for change of interven-
tion [75-1064]

Motion of KSL Inc. for leave to intervene -
granted [75-1064]

FCC’s motion to revise briefing schedule
[75-1064]

Clerk’s order that the time for filing respon-
sive briefs in the cases is extended to January
26, 1976; the time for filing reply briefs, if
any, to US and FCC and supporting inter-
venors; briefs are extended until 45 days after
service of the brief [75-1064]

Owosso Broadcasting Company’s Inc. brief
[75-1152]

FCC’s motion to revise briefing schedule
[75-1064]

1976

Jan. 9 Clerk’s order granting FCC’s and US’s motion

to revise briefing schedule and the times for
filing the remaining papers in the consolidated
cases are extended as follows: Respondent’s
and supporting intervenors’ briefs shall be
filed by February 17, 1976; and Petitioners’
and supporting intervenors’ reply briefs, if

13

30

Feb. 10

10

17

16

any, shall be filed within 45 days after service
of respondents’ briefs [75-1064]

Intervenors’ (Elyria-Lorain Broadcasting Co.,
WEEU Broadcasting Co., WHAS, Inc., Louisi-
ana Television Broadcasting Corp., Belo
Broadcasting Corp., Hearst Corp., Scripps-
Howard Broadcasting Co., W.E. Scripps Co.,
Chronicle Broadcasting Co., Chronicle Publish-
ing Co., Buffalo Evening News, Inc., WBEN,
Inc., Lee Enterprises, Inc., Gaylord Broadcast-
ing Co., Houston Post Co., Channel Two TV
Co., KPRC Radio Co., Illinois Broadcasting
Co., Inc., and Lindsay-Schaub Newspapers,
Inc.) motion to adopt in toto brief of
intervenor, American Newspaper Publishers
Association [75-1618]

FCC’s motion for an order prohibiting Gray
Communications System’s Inc. and counsel
from prosecuting inaction which is now
pending in the U.S. District Court for the
middle district of Georgia [75-1618]

Gray Communications System’s response to
motion for an order prohibiting further
prosecution of the case pending in another
court [75-1618]

FCC’s reply to response to motion of an
order prohibiting prosecution of the case
pending in another court [75-1618]

Clerk’s order, sua sponte, that the order filed
November 6, 1975 is amended by adding the
number 75-1379 and deleting the number
75-1329 [75-1064]

17

17

17
17

17

18

19

19

19

20
20

17

American Newspaper Publishers Association’s
brief [75-1064]

KNUJ’s Inc.; Michelson Media’s, Inc. and the
Post Company’s joint brief [75-1064]
WHAS'’s, Inc. brief [75-1064]

Elyria-Lorain Broadcasting Company, WEEU
Broadcasting Company, Louisiana Television
Broadcasting Corp., to adopt in toto brief of
intervenor, The Washington Post Company
and Post-Newsweek Stations, Inc. [75-1064]

KSL’s Inc. brief [75-1064]

The Washington Post Company and Post-
Newswee® Stations, Capital Area’s, Inc. brief
[75-1064]

FCC’s motion for leave to file supplement to
reply filed February 10 [75-1618]

Washington Post Company and Post-
Newsweek Station’s et al. motion for leave to
amend brief [75-1064]

US’s brief [75-1064]
FCC’s brief [75-1064]

Clerk’s order granting intervenors’ Elyria-
Lorain Broadcasting Co., WEEU Broadcasting
Co., WHAS, Inc., and Louisiana Television
Broadcasting Corp., et al. motion to adopt in
toto brief of intervenor, American Newspaper
Publishers Association and the Clerk is
directed to transmit a copy of ANPA’s
motion to the division of this Court assigned
to consider the cases on the merits [75-1064]

23

23

25

25

27

Mar. 11

18

Clerk’s order granting intervenors’ Elyria-
Lorain Broadcasting Company, et al. to adopt
in toto brief of intervenors the Washington
Post Company and Post-Newsweek Stations,
Inc.; the Clerk is directed to transmit a copy
of the motion to the division of this Court
assigned to consider the case on the merits
[75-1064]

FCC’s motion for leave to file reply brief to
brief of US filed 2/17/76 [75-1064]

Clerk’s order granting FCC’s motion for leave
to file supplement to the reply [75-1618]

FCC supplement to reply to respond to
motion for an order prohibiting further
prosecution of the case pending in another
court [75-1618]

Clerk’s order granting intervenor’s (The Wash-
ington Post Company and Post-Newsweek
Station, Inc. et al.) motion for leave to
amend brief and counsel for the intervenors
shall make appropriate arrangements to insert
the substitute page [75-1064]

Order per CJ Bazelon that respondent, FCC,
is granted leave to file a reply brief the brief
of the United States not to exceed 25 pages,
and intervenors on its side are granted leave
to file a joint reply brief not to exceed 35
pages on or before April 5, 1976; sua sponte,
that the time for filing petitioners’ reply
briefs is extended until 45 days from the date
of service of the aforesaid reply briefs
[75-1064]

11

16

26

29

30

19

ANPA in No. 75-1567 motion to extend time
to file joint appendix to 21 days after service
of all reply briefs [75-1064]

Clerk’s order granting motion of American
Newspaper Publishers Association motion on
behalf of all petitioners to extend date for
submission of joint appendix and the time for
filing the joint appendix is extended to April
26th [75-1064]

ANPA’s motion to extend time to file joint
appendix to 21 days beyond filing petitioner’s
reply brief [75-1567]

NCCB’s motion to have this case and No.

75-1308 argued before the same _ panel
[75-1064]

Clerk’s order that the motion of ANPA’s
supplemental to extend date for submission
of joint appendix in case no. 75-1567 is
granted and the time for filing the joint
appendix of the parties in these consolidated
proceedings is extended to June 10, 1976
[75-1064]

FCC’s opposition to motion to have this case,
and No. 75-1308 argued before the same
panel (filed in No. 75-1308 only) [75-1064]

Motion of Intervenors’ (Chronicle Broadcast-
ing Co., The Chronicle Publishing Co., Buffalo
Evening News, Inc., WBEN, Inc., Houston
Post Co., Channel Two Television Co., KPRC
Radio Co., Illinois Broadcasting Co., Inc., and
Lindsay-Schaub Newspapers Inc.) to adopt in
toto the reply brief of Respondent, FCC
[75-1064]

13

21

20

Intervenors’ (Belo Broadcasting Corp., WHAS,
Inc., The Washington Post Co., and Post-
Newsweek Stations, Capital Area, Inc.) joint
reply brief [75-1064]

FCC’s brief (This is FCC reply brief)
[75-1064]

FCC’s opposition to motion to have this case
and No. 75-1308 argued before the same
panel [75-1064]

Intervenors’ (Washington Post Co., Post-
Newsweek Stations, Capital Area, Inc., Belo
Broadcasting Corp., WHAS, Inc., Louisiana
Television Broadcasting Corp.) motion to
substitute pages in joint reply brief [75-1064]
Clerk’s order granting intervenors’ (Washing-
ton Post Co., Post-Newsweek Stations, Capital
Area, Inc., Belo Broadcasting Corp., WHAS,
Inc., Louisiana Television Broadcasting Corp.)
motion filed April 7, 1976 to substitute pages
in joint reply brief and counsel for inter-
venors herein shall make appropriate arrange-
ments to correct the joint reply brief
[75-1064]

Clerk’s order granting intervenors’ (Chronicle
Broadcasting Co., et al.) motion to allow
intervenors to adopt in toto reply brief of
respondent FCC [75-1064]

Order per CJ Bazelon denying appellant’s
motion in No. 75-1308 for consecutive

amendment with Nos. 75-1604 et al.

[75-1064]

28

May 7

14

18

ae

21
28

21

Per Curiam order that US’s and FCC’s motion
for an order prohibiting petitioners and
counsel from prosecuting an action which is
now pending in the US District Court for the
middle district of Georgia is referred to the
division of this Court assigned to hear this
case on the merits for disposition Robinson
and Wilkey [75-1618]

NAB’s motion to strike brief of the Depart-
ment of Justice and bar further participation
of de facto petitioner [75-1289]

Motion of the United States of America for
extension of time within which to respond to
motion of the National Association of
Broadcasters to strike [75-1289]

Clerk’s order granting motion of the United
States of America to extend time to respond
to NAB’s motion to strike to May 26, 1976
[75-1289]

NAB’s reply brief [75-1289, 75-1567]

The Brockway Company’s reply _ brief
[75-1614, 75-i6i8]

NCCB’s reply brief [75-1064]

US’s and FCC’s motion for leave to file
response to motion to strike brief of the
Department of Justice and bar further
participation of de facto petitioner [75-1289]

Motion of Pulitzer Publishing Co., et al. for
leave to withdraw intervention in consolidated

proceedings for review of FCC order
[75-1064]

10

21

22

23
23
23
24

24

24

22

Clerk’s order granting respondent (US) mo-
tion for leave to file response to motion to
strike brief of the Department of Justice and
bar further participation as de facto petitioner
[75-1289]

Response of US to motion to strike brief of
the Department of Justice and bar further
participation of the de facto petitioner
[75-1289]

Joint appendix volumes 1 and 2 [75-1152,
75-1263, 75-1387, 75-1614, 75-1567,
75-1618, 75-1386, 75-1379, 75-1388]

Clerk’s order that the motion of the Pulitzer
Publishing Co. and KSD/KSD-TV, Inc. for
leave to withdraw intervention in consolidated
proceedings is granted and the Clerk is
directed to remove the Pulitzer Publishing Co.
and KSD/KSD-TV, Inc. from the dockets as
an intervenor herein [75-1064]

Interventor’s, (KNUJ, Inc., Michelson Media,
Inc., and The Post Company) joint brief
[75-1064]

NAB’s brief [75-1289]
NAB’s reply brief [75-1289]
The Brockway Company’s brief [75-1614]

Intervenor’s (American Newspaper Publishers
Association) brief [75-1064]

Intervenors’ (The Washington Post Company,
Post-Newsweek Stations, Capital Area, Inc.)
brief [75-1064]

ANPA’s brief [75-1567]

24
24

25
25
28
July 13

22

22

Aug. 23

23

27

Sept. 9
14

23

ANPA’s reply brief [75-1567]

Intervenors’ (Belo Broadcasting Corporation
and WHAS, Inc., Louisiana Television Broad-
casting Corporation and The Washington Post
Co. and Post-Newsweek Stations, etc.) joint
reply brief [75-1064]

NCCB’s brief [75-1064]
NCCB’s reply brief [75-1064]
Respondent’s (FCC) brief [75-1064]

Respondent’s (US) motion for leave to file
printed brief late [75-1064]

Clerk’s order granting respondent’s (US)
motion for leave to file printed brief late
[75-1064]

Respondent’s (US) brief [75-1064] .

Clerk’s order that Gray Communications
System’s Inc. motion to strike brief of the
Department of Justice and bar further
participation as de facto petitioner is denied
[75-1064]

Clerk’s order that consideration of the motion
of FCC’s and US’s for an order prohibiting
further prosecution of the case pending in
another court is deferred pending oral argu-
ment on September 17, 1976 [75-1618]

FCC’s consent motion to enlarge and allocate
the time to present oral argument [75-1064]

Joint motion to dismiss [75-1263]

Clerk’s order that the FCC’s and US’s motion
to extend and allocate time to present
argument is granted and the following allot-

17

17

23

Nov. 26

24

ment of time shall control oral argument; 40
minutes to be allocated among: Petitioner
ANPA,; Petitioner NAB: Counsel representing
individual Petitioners subject to the Divesti-
ture requirement; 40 minutes to be allocated
among: Petitioner NCCB; Respondent U.S.A.;
40 minutes to be allocated among: Respon-
dent FCC; Intervenors The Washington Post
Co., Post-Newsweek Stations, Capital Area,
Inc.; individual parties shall promptly notify
the Court of the identity of counsel to
present argument and the total time to be
taken within each allotment [75-1064]

Argued before CJ Bazelon; Wright and
Robinson, CJ; The Court granted counsel for
the petitioner in No. 75-1289 to lodge 4
volumes of Mass Communications in the U.S.
- 1970 with the Clerk [75-1064]

Volumes of Mass Communications of the US -
lodged in File Room [75-1064]

Per Curiam order granting joint motion to
dismiss and the petition for review is
dismissed. CJ] Bazelon; Wright and Robinson,
CJ [75-1263]

Per Curiam order that the motion of the
respondent, FCC, for an order restraining
further prosecution by petitioner, Gray Com-
munications Systems, Inc. is hereby denied
without prejudice, however, to renewal as
warranted by any change in present circum-
stances [75-1618]

Mar.

25

1977

l

Opinion for the Court filed by Chief Judge
Bazelon [75-1064]

Judgment that the rulemaking order under
review herein is affirmed only insofar as it
operates prospectively; those portions of said
order that have a retroactive effect and those
portions dealing with existing combinations
are vacated; and the record is remanded to
the commission for adoption of rules not
inconsistent with the opinion of this Court
filed herein this date [75-1064]

FCC’s motion for stay of mandate [75-1064]

NAB’s statement in support of motion for
stay of mandate [75-1289]

NCCB’s partial opposition to motion for stay
of mandate [75-1064]

FCC’s reply to partial opposition to motion
for stay of mandate [75-1064]

Respondent’s (US) response to motion for
stay of mandate [75-1064]

Motion of San Joaquin Communications
Corp. for leave to submit opposition to
motion for stay of mandate as an’ amicus
curiae [75-1064]

FCC’s opposition to motion of San Joaquin
Communications Corp. for leave to submit
Opposition to motion for stay of mandate as
an amicus curiae [75-1064]

11

11

17

18

25

June 6

26

Opinion per cunam on motion to stay
mandate. (ISSUED IN XEROX FORM BUT
TO BE PRINTED AT A LATER DATE.)
[75-1064]

Per Curiam order that the motion of the FCC
is granted and the Clerk is directed not to
issue the mandate in these cases prior to April
23, 1977 for the reasons set forth in the
opinion of this Court released this day in
xeroxed form, and in accordance therewith
CJ Bazelon; Wright and Robinson [75-1064]

Per Curiam order amending opinion of April
5, 1977 [75-1064]

Printed copies of opinion of April 5, 1977
released this date [75-1064]

Certified copy of notice from Clerk, S.C.,
that writ of certiorari was filed on 4-22-77 in
S.C. No. 76-1471 [75-1064]

Notice of filing petition for writ of certiorari
in S.C. No. 76-1521 on May 2, 1977
[75-1064]

Notice of filing petition for writ of certiorari
in S.C. No. 76-1595 on May 13, 1977
[75-1289]

Notice of filing of a petition for writ of
certiorari in S.C. No. 76-1604 on May 16,
1977 [75-1064]

Notice of filing petition of writ of certiorari
in S.C. No. 76-1624 on May 20, 1977
[75-1064] .

Certified copy of notice from Clerk, Supreme
Court that writ of certiorari was filed on May
27, 1977 in S.C. No. 76-1685 [75-1064]

27

Communications Act of 1934, .48 Stat. 1064, as

amended, 47 U.S.C. 151 et seq.

§ 152. Application of chapter.

(a) The provisions of this chapter shall apply to
all interstate and foreign communication by wire or
radio and all interstate and foreign transmission of
energy by radio, which originates and/or is received
within the United States, and to all persons engaged
within the United States in such communication or
such transmission of energy by radio, and to the
licensing and regulating of all radio stations as here-
inafter provided; but it shall not apply to persons
engaged in wire or radio communication or trans-
mission in the Canal Zone, or to wire or radio com-

~ ene, or transmission wholly within the Canal
one.

§ 154. Federal Communications Commission.
* * * * & &

(i) Duties and powers.

The Commission may perform any and all acts,
make such rules and regulations, and issue such
orders, not inconsistent with this chapter, as may be
necessary in the execution of its functions.

(j) Conduct of proceedings; hearings.

The Commission may conduct its proceedings in
such manner as will best conduct to the proper
dispatch of business and to the end of justice. No
commissioner shall participate in any hearing or
proceedings in which he has a pecuniary interest.
Any party may appear before the Commission and
be heard im person or by attorney. Every vote and
official act of the Commission shall be entered of

record, and its proceedings shall be public upon the

28

request of any party interested. The Commission
is authorized to withhold publication of records or
proceedings containing secret information affecting
the national defense.

§ 301. License for radio communication or transmis-
sion of energy.

It is the purpose of this chapter, among other
things, to maintain the control of the United States
over all the channels of interstate and foreign radio
transmission; and to provide for the use of such
channels, but not the ownership thereof, by persons
for limited periods of time, under licenses granted
by Federal authority, and no such license shall be
construed to create any right, beyond the terms,
conditions, and periods of the license. No person
shall use or operate any apparatus for the transmis-
sion of energy or communications or signals by
radio (a) from one place in any Territory or pos-
session of the United States or in the District of
Columbia to another place in the same Territory,
possession, or Distnct; or (b) from any State, Ter-
ritory, or possession of the United States, or from
the District of Columbia to any other State, Termi-
tory, or possession of the United States: or (c) from
any place in any State, Territory, or possession of
the United States, or in the District of Columbia,
to any place in any foreign country or to any ves-
sel; or (d) within any State when the effects of such
use extend beyond the borders of said State, or
when interference is caused by such use or opera-
tion with the transmission of such energy, commu-
nications, or signals from within said State to any
place beyond its borders, or from any place beyond
its borders to any place within said State, or with
the transmission or reception of such energy, com-

29

munications, or signals from and/or to places
beyond the borders of said State; or (ec) upon any
vessel or aircraft of the United States; or (f) upon
any other mobile stations within the jurisdiction of
the United States, except under and in accordance
with this chapter and with a license in that behalf
granted under the provisions of this chapter.

§ 303. Powers and duties of Commission.

Except as other wise provided in this chapter, the
Commission from time to time, as public conven-
lence, interest, or necessity requires, shall—

i a ee

(g) Study new uses for radio, provide for experi-
mental uses of frequencies, and generally encourage
the larger and more effective use of radio in the
public interest;

n @¢.8 8 6

(r) Make such rules and regulations and prescribe
such restrictions and conditions, not inconsistent
with law, as may be necessary to carry out the pro-
visions of this chapter, or any international radio or
wire communications treaty or convention, or regu-
lations annexed thereto, including any treaty or con-
vention insofar as it relates to the use of radio, to
which the United States is or may hereafter become
a party.

§307. Licenses; allocation of facilities; terms;
renewals.

(a) The Commission, if public convenience,

interest, or necessity will be served thereby, subject

to ro nigrewe of this chapter, shall sre to ras

applicant therefor a station license i

aun provided for by

i Sa a i

30

(d) No license granted for the operation of a
broadcasting station shall be for a longer term than
threee years and no license so granted for any other
class of station shall be for a longer term than five
years, and any license granted may be revoked as
hereinafter provided. Upon the expiration of any
license, upon application therefor, a renewal of such
license may be granted from time to time for a
term of not to exceed three years in the case of
broadcasting licenses, and not to exceed five years
in the case of other licenses, if the Commission finds
that public interest, convenience, and necessity
would be served thereby. In order to expedite action
on applications for renewal of broadcasting station
licenses and in order to avoid needless expense to
applicants for such renewals, the Commission shall
not require any such applicant to file any informa-
tion which previously has been furnished to the
Commission or which is not directly material to the
considerations that affect the granting or denial
of such application, but the Commission may
require any new or additional facts it deems neces-
sary to make its findings. Pending any hearing and
final decision on such an application and the dispo-
sition of any petition for rehearing pursuant to sec-
tion 405 of this title, the Commission shall continue
such license in effect. Consistently with the forego-
ing provisions of this subsection, the commission
may by rule prescribe the period or periods for
which licenses shall be granted and renewed for par-
ticular classes of stations, but the commission may
not adopt or follow any rule which would preclude
it, in any case involving a station of a particular
class, from granting or renewing a license for a
shorter period than that prescribed for stations of
such class if, in its judgment, public interest, conven-
ience, or necessity would be served by such action.

31

§ 309. Application for license.
(a) Considerations in granting application.

Subject to the provisions of this section, the
Commission shall determine, in the case of each
application filed with it to which section 308 of this
title applies, whether the public interest, conven-
lence and necessity will be served by the granting
of such application, and, if the Commission, upon
examination of such application and upon consid-
eration of such other matters as the Commission
may officially notice, shall find that public interest,
convenience, and necessity would be served by the
granting thereof, it shall grant such application.

ia he es

(d) Petition to deny application; time; contents;
reply ; findings.

(1) Any party in interest may file with the Com-
mission a petition to deny any application (whether
as originally filed or as amended) to which sub-
section (b) of this section applies at any time prior
to the day of Commission grant thereof without
hearing or the day of formal designation thereof
for hearing; except that with respect to any classi-
fication of applications, the Commission from time
to time by rule may specify a shorter period (no
less than thirty days following the issuance of public
notice by the Commission of the acceptance for
filing of such application or of any substantial
amendment thereof), which shorter period shall be
reasonably related to the time when the applica-
tions would normally be reached for processing.
The Petitioner shall serve a copy of such petition
on the applicant. The petition shall contain specific
allegations of fact sufficient to show that the peti-
tioner is a party in interest and that a grant of the
application would be prima facie inconsistent with
subsection (a) of this section. Such allegations of

32

fact shall, except for those of which official notice
may be taken, be supported by affidavit of a person
or persons with personal knowledge thereof. The
applicant shall be given the opportunity to file a
reply in which allegations of fact or denials thereof
shall similarly be supported by affidavit.

33
[22 F.C.C. 2d 306] F.C.C. 70-310
BEFORE THE

FEDERAL COMMUNICATIONS COMMISSION
Washington, D.C. 20554

Docket No. 18110

In the Matter of
Amendment of Sections 73.35, 73.240 and
73.636 of the Commission Rules Relating
to Multiple Ownership of Standard, FM
and Television Broadcast Stations.

First Report and Order
(Adopted March 25, 1970)

By the Commission: Chairman Burch concurring in part
and dissenting in part and issuing a statement:
Commissioner Robert E. Lee dissenting: Commis-
sioner Wells dissenting and issuing a statement.

1. The Commission has before it (1) a “Notice of
Proposed Rulemaking” (33 F.R. 5315) adopted March
27, 1968, which commenced this proceeding and
established an interim policy! for dealing with
applications for broadcast station authorizations during
the pendency of the proceeding: (2) a “Memorandum
Opinion and Order” (12 F.C.C. 2d 912), adopted May
15, 1968, which denied petitions for reconsideration of

'The interim policy is discussed in pars. 74-78, infra.

34

the interim policy, answered questions that had arisen
concerning that policy, and clarified the proposed rule
amendments contained in the notice; and (3) com-
ments, reply comments, and other material filed in
response to the notice.”

THE COMMISSION’S PROPOSAL

2. In this proceeding, the Commission proposed to
amend the present multiple-ownership rules so as to
prohibit the granting of any application for a broadcast
license if after the grant the licensee would own,
operate, or control two or more full-time broadcast
stations within the market. The proposed amended rules
would apply to all applications for new stations and for
assignment of license or transfer of control except
assignment and transfer applications filed pursuant to
the provisions of section 1.540(b) or i.541(b) of the
rules (i.c., pro forma or involuntary assignments and
transfers) and applications for [307] assignment or
transfer to heirs or legatees by will or intestacy.
Divestiture, by any licensee, of existing facilities would
not be required. The remainder of this section sets the

proposal in perspective.

2 Approximately 120 parties participated in the proceeding.
They are listed in appendix A. If a party consisted of two or
more entities making a joint filing, the names of the entities are
listed under the name of the lead entity. The short designation
of every party referred to in the present document appears in
parentheses following the full name in appendix A. Participating
parties include the three major networks, Mutual Broadcasting
System, Inc., the National Association of Broadcasters, numerous
State broadcasters associations, the All-Channel Television
Society, the Association of Broadcasting Standards, Inc., the
Community Broadcasters Association, Inc., individual and
multiple owners and the Department of Justice.

35

3. The multiple-ownership rules of the Commission
have a twofold objective: (1) Fostering maximum
competition in broadcasting, and (2) promoting diversi-
fication of programing sources and viewpoints. The
rules are essentially the same for the standard, FM, and
television broadcast services and, respectively, appcar in
47 CFR §§73.35, 73.240, and 73.636 (1969). Each of
these sections is divided into two parts, the first of
which is known as the d@uopoly rule, and the second of
which is often called the concentration of control rule.*

4. The concentration of control rules aim at
achieving the aforementioned twotold objective na-
tionally and regionally by providing that a license for a
broadcast station will mot be granted *o a party if the
grant would resulf m chat party's owming, operating, or
controlling more than a specified number of stations in
the same broadcast service. For AM the number is 7,
for FM ix is 7, and for TV it is 7, with no more than 5
being VHF. The rules also provide that a grant will not
be made, cwem though it would not result in exceeding
these specified maximums, if it would result in undue
concentration of control contyary to the public interest
(some of the criteria for making such a determination
are contained in the rules).

SFor a brief history of the duopoly and concentration of
control rules, see Multiple Ownership (docket No. 14711), 27
F.R. 6846, at par. 3 (1962); Multipie Ownership (docket No.
16068), 30 F.R. 8166, at par. 3 (1965), 33 F.R. 3078,
concurring opinion of Commissioner Loevinger in which
Commissioner Wadsworth joined (1968); Network Broadcasting,
H.R. 1297, 85th Cong., 2d sess., 553-599 (1958). Recent rule
amendments not covered in the foregoing appear in Multiple
Ownership of AM, FM, and TV Stations, 13 F.C.C. 2d 07
(1968). A pending proposal to amend the rules with regard to
bank holdings of broadcast stocks appears in Multiple Ownership
(docket No. 18751), 34 F.R. 19032 (1969).

36

5. While the comcentration of comsrol rules aim at
attaining the twofold objectwe nationally and re-
gionally, the duopoly rules are designed to attain it
locally and regionally by providing that a license for a
broadcast station will not be granted to a party that
owns, operates, or controls a station in the same
broadcast service a specified contour of which would
overlap the same contour of the station proposed to be
licensed. (For AM stations the predicted or measured
i-mv./m. groundwave contours must not overlap: for
FM, the predicted l-mv./m. contours; for TV, the
predicted grade B contours.) In broader language, the
duopoly rules prohibit a party from owning, operating,
or controlling more than one station in the same
broadcast service in the same area. However, they do
not prevent a single party from owning, operating, or
controlling more than one station in the same area if
each station is in a different service. Hence, a single
licensee often has a standard, an FM, and a television
broadcast station in one community.

6. The proposal in this proceeding is in essence an
extension of the present duopoly rules, since it would
proscribe common ownership, operation, or control of
more than one unlimited-time broadcast station in the
same area, regardless of the type of broadcast service
involved.*

THE RULES ADOPTED HEREIN

{308} 7. All but four of the commenting parties op-

posed the proposal. Some opponents urge that if the
Commission, over the objections they raise, should

*The proposal applies to commercial stations and not to
noncommercial educational stations.

37

decide to adopt rules they should not be the ones
proposed in the notice but a modification thereof
(various modifications are suggested). The four parties
supporting the proposal believe that it does not go far
enough and urge the Commission to take various
further steps. We have carefully considered all of the
comments and other material filed in this proceeding
and, for the reasons set forth hereinafter, are of the
view that it is in the public interest to adopt the rules
contained in appendix B hereto. With some exceptions,
they are the same as those which we proposed in the
notice as clarified by the memorandum opinion and
order. A brief description of the rules follows.

8. The memorandum opinion and order (par. 1,
supra) noted that since the rules proposed in the notice
were in essence an extension of the present duopoly
rules, the Commission would (without intending to
prejudice the meaning of “‘market” in any rules that
might be adopted) use the overlap concept in the
present duopoly rules for purposes of administering the
interim policy. As previously stated (par. 5, supra),
those rules proscribe overlapping of specific service
contours of commonly owned stations. We determined
that for the interim policy if granting an application
would result in one party’s owning, operating, or
controlling two or more full-time broadcast stations
with overlap of those contours, the stations would be
considered to be in the same market and the
application would not be acted on until the termination
of this proceeding. Thus, for example, if an application
were for a TV license and the grade B contour of the
proposed station would overlap the 1-mv./m. contour of
a commonly owned, operated, or controlled full-time
aural station, the application would be held in abeyance
until the termination of this proceeding.

38

9. The concept of market in the rules adopted today
differs from that used in administering the interim
policy. The new rules retain the previous duopoly rules
intact, that is, they proscribe common ownership of
television stations if the grade B contours overlap, of
AM stations if the l-mv./m. contours overlap, and of
FM stations if the l-mv./m. contours overlap. However,
in extending the duopoly rules to proscribe common
ownership of stations in different broadcast services in
the same area, the standard is different: Common
ownership of a TV station and an AM< station is
prohibited if the grade A contour of the former
encompasses the entire community of license of the
latter, or if the 2-mv./m. contour of the latter
encompasses the entire community of license of the
former. The same principle applies to FM stations in
relation to TV or AM< stations, with the 1-mv./m.
contour of the FM station being the criterion, for
example, if the 1l-mv./m. contour of the FM station
encompasses the entire community of license of an AM
station or the 2-mv./m. contour of the AM station
encompasses the entire community of license of the FM
station, common ownership of the stations is not
permitted. The aforementioned encompassment stand-
ard applies whether the stations in question are licensed
to serve the same community or different communities.

[309] 10. The new rules are phrased in terms of
proscribed overlap, for stations in the same broadcast
service (that is, the previously existing duopoly rules),
and proscribed encompassment, for stations in different
broadcast services: they do not use the term “market.”
However, since the proposal in the notice used the term
and invited comments on how it should be defined, and
since the comments therefore use it, the following

39

discussion herein uses it also. When used, of course, it
means stations with the proscribed overlap or encom-
passment.

11. With one exception, the rules adopted provide
that no license for an AM (daytime or full time), FM,
or television broadcast station will be granted to a party
that already owns, operates, or controls one or more
full-time stations which, if the grant were made, would
be in the same market as the proposed station. The
exception: The licensee of a class IV AM station.which
is licensed to serve a community of less than 10,000
population will be permitted to obtain a license for an
FM station even though the two stations would be in
the same market. (This would not be permitted,
however, if the FM station would also be in the same

market as a commonly owned, operated, or controlled
TV station.)

12. The licensee of a daytime-only AM station not
having a license for an FM station in the area may
obtain a license for an FM station that would be in the
same market. Note, however, that according to the
statement in the previous paragraph, an FM licensee
could not obtain a daytime-only AM license in the same
market.

13. A party having no broadcast stations in a
community may obtain a license for only one station
there—TV, AM (daytime only or full time), or FM.
However, such a party may obtain licenses for an
et eee ts Oe cane mates by
way of assignment or transfer if a proper showing is
made by the seller that for economic or technical
reasons the stations cannot be sold and operated
separately.

40

14. No divestiture, by any licensee, of existing
facilities will be required at this time. The rules will
apply to all applications for new stations and for
assignment of license or transfer of control except
assignment and transfer applications filed pursuant to
the provisions of section 1.540(b) or 1.541(b) of the
rules (that is, pro forma or involuntary assignments or
transfers) or applications for assignment or transfer to
heirs or legatees by will or intestacy that would not
result in violation (for example, the licensee of an
existing full-time station could not, as heir or legatee,
be the assignee or transferee of other stations that
would be in the same market as the existing station).
Applications involving television satellite stations and
aural stations in the same market will be handled on a
case-by-case basis. With some exceptions, for example,
applications for increases in power by class IV AM
stations, the rules will apply to applications for major
changes in facilities, but certain applications of that
type (and of all other types) pertaining to UHF stations
will be handled on a case-by-case basis.

15. An examination of notes 7 and 8 in the present
duopoly rules and notes 7 and 8 in the new rules in
appendix B will show that the topics mentioned in the
preceding paragraph generally are covered therein and
that the latter notes merely modify the former to
embrace the broader concept of duopoly contained in
the new rules.

[310] THE BASIS AND PURPOSE OF THE RULES

16. Basic to our form of government is the belief
that “the widest possible dissemination of information
from diverse and antagonistic sources is essential to the

41

welfare of the public.” (Associated Press v. United
States, 326 U.S. 1, 20 (1945).)° Thus, our Constitution
rests upon the ground that “the ultimate good desired
is better reached by free trade in ideas—that the best
test of truth is the power of the thought to get itself
accepted in the competition of the market.” Justice

Holmes dissenting in Abrams v. United States, 250 U.S.
616, 630 (1919).

17. These principles, upon which Judge Learned
Hand observed that we had staked our all, are the
wellspring, together with a concomitant desire to
prevent undue economic concentration, of the Com-
mission’s policy of diversifying control of the powertul
medium of broadcasting. For, centralization of control
over the media of mass communications is, like
monopolization of economic power, per se undesirable.
The power to control what the public hears and sees
over the airwaves matters, whatever the degree of
self-restraint which may withhold its arbitrary use.

18. It is accordingly firmly established that in
licensing the use of the radio spectrum for broadcasting,
we are to be guided by the sound public policy of
placing into many, rather than a few hands, the control
of this powerful medium of public communication.
(“Amendment of Sections 3.35, etc.,” 18 F.C.C. 288
(1953), affirmed United States v. Storer Broadcasting

‘This is because “right conclusions are more likely to be
gathered out of a multitude of tongues, than through any kind
of authoritative selection.” (United States v. Associated Press, 52
F. Supp. 362, 372 (S.D. N.Y., 1943), affirmed 326 U.S. 1
(1945).) Thus, our rules are not based upon the proposition
disputed by Prof. George H. Litwin, in his study submitted on
behalf of the NAB, that common ownership within one medium
or of more than one medium results in any particular degree of
control of what people think and how they act.

42

Co., 351 U.S. 192 (1956); 99 U.S. App. D.C. 369, 240
F. 2d 55 (1956).) This basic principle, enforcible in ad
hoc proceedings or through rulemaking, applies to the
judgment of whether an individual application should
be granted as well as to the comparison of competing
applicants. (United States v. Storer Broadcasting Co.,
supra; Clarksburg Publishing Co. v. Federal Communica-
tions Commission, 96 U.S. App. D.C, 211,225 F. 2d
511 (1955); Scripps-Howard Radio, Inc. »v. Federal
Communications Commission, 89 U.S. App. D.C. 13,
189 F.2d 677 (1951), cert. den. 342 U.S. 830; Plains
Radio Broadcasting Co. v. Federal Communications
Commission, 85 U.S. App. D.C. 48, 175 F. 2d 359
(1949).°

19. It is true that section 315 of the Communica-
tions Act, the Commission’s Fairness Doctrine, and the
Commission’s rules relating to personal attacks and
station editorials on candidates for public office all
contribute substantially toward insuring that, whatever
a station’s ownership, and the views of the licensee,
each station will present conflicting viewpoints on
controversial issues. However, this is not enough. For,
as was stated in Scripps-Howard Radio, Inc. v. Federal
Communications Commission, 89 U.S. App. D.C. 13,
19, 189 F.2d 677, 683 [311] (1951), cert. den. 342
U.S. 830, the key to the question is the public interest
in acquiring information from diverse and antagonistic
sources, and news communicated to the public is
subject to selection and, through selection, to editing,
and * * * in addition there may be diversity in methods,

6 such consideration is not the arbitrary discrimination which
has been said in a dictum, Stahiman v. Federal Communications
Commission, 75 U.S. App. D.C. 176, 126 F. 2d 124 (1942), to
be beyond the Commission's legitimate powers.

43

manner and emphasis of presentation, This is true not
only with respect to news programs, but also the entire
range of a station’s treatment of programs dealing with
public affairs.

20. As pointed out above, the governing considera-
tion here is power, and power can be realistically
tempered on a structural basis. It is therefore no answer
to the problem to insist upon a finding of some specific
improper conduct or practice. The effects of joint
ownership are likely in any event to be so intangible as
not to be susceptible of precise definition. The law is
clear that specific findings of improper harmful conduct
are not a necessary element in Commission action in
this area, and that remedial action need not await the
feared result.

21. Application of the principles set forth above
dictates that one person should not be licensed to
operate more than one broadcast station in the same
place, and serving substantially the same public, unless
some other relevant public interest consideration is
found to outweigh the importance of diversifying
control. It is elementary that the number of frequencies
available for licensing is limited. In any particular area
there may be many voices that would like to be heard,
but not all can be licensed. A proper objective is the
maximum diversity of ownership that technology
permits in each area. We are of the view that 60
different licensees are more desirable than 50, and even
that 51 are more desirable than 50. In a rapidly
changing social climate, communication of ideas is vital.
If a aty has 60 frequencies available but they are
licensed to only 50 different licensees, the number of
sources for ideas is not maximized. It might be the 51st
licensee that would become the communication channel

44

for a solution to a severe local social crisis. No one can
say that present licensees are broadcasting everything
worthwhile that can be communicated. We see no
existing public interest reason for being wedded to our
present policy that permits a licensee to acquire more
than one station in the same area.’

7MBS states its conviction that it can only become stable and
viable as a network by having AM, FM, and perhaps TV, stations
in major markets. It avers that it presently owns no broadcast
stations, that it has publicly announced its intention to acquire
AM, FM, and TV stations, and that the rule would prevent it
from having more than one station in a market, At the same
time, the networks with which it competes would not be
divested, so that MBS could not achieve parity with them. It
argues that the importance of competition among networks has
been recognized in the KOB case (American Broadcasting-
Paramount Theatres, Inc. v. FCC, 108 U.S. App. D.C. 83, 280 F.
2d 631 (1960), 345, F. 2d 954 (1965) and that under the
decision in that case the Commission is required to provide
comparable facilities for all networks. Hence, as a matter of law,
MBS says, the Commission could not apply the rules, if adopted,
to MBS.

Adoption of rules herein does not mean an end to a flexibility
that would, for example, permit the Commission to allow MBS
to acquire more than one station in a market, for as the Supreme
Court said in National Broadcasting Co. v. United States, 319
U.S. 190, 225 (1943), sustaining the chain broadcasting
regulations:

“The Commission * * * did not bind itself inflexibly to the
licensing policies expressed in the Regulations. In each case that
comes before it the Commission must still exercise an ultimate
judgment whether the grant of a license would serve the ‘public
interest, convenience, or necessity.’ ”

And Storer, supra, in sustaining the concentration of control
portion of the multiple ownership rules, quoted that statement
from National Broadcasting Co. and went on to say (at 205):

“That flexibility is here under the present §309(a) and (b)
and the FCC's regulations * * * We read the Act and Regulations
as providing a ‘full hearing’ for applicants who have reached the
existing limit of stations, upon their presentation of applications

[footnote continued]

45

[312] 22. It is true that many communities have
multiple broadcast and other communications media,
But it is also true that the number of daily newspapers
has been decreasing, a fact which increases the
significance of the broadcast medium. Material attached
to the NAB reply comments shows the number of cities
with commercially competing local dailies to be 45 in
1968. In 1962 the figure was 61.° In our view, as we
have made clear above, there is no optimum degree of
diversification, and we do not feel competent to say or
hold that any particular number of outlets of
expression is enough. We believe that the increased
amount of broadcast service now available also forms
the basis for the conclusion that, with the exceptions
mentioned later herein, it is no longer necessary to
permit the licensing of combined operations in the same
market, as was the case in the early days of
broadcasting, in order to bring service to the public. It

conforming to Rules 1.361(c) and 1.702, that set out adequate
reasons why the Rules should be waived or amended. The Act,
considered as a whole, requires no more.”

It is not clear that MBS could not achieve a competitive
posture through the ownership of the permissible number of AM,
FM, and TV stations in separate markets. However, MBS would
be entitled to a full hearing if it filed applications with requests
for waiver of the new rules setting out adequate reasons why it
should be permitted to obtain more than one station in an area.

A full hearing could similarly be obtained by ABC, which
argues that its competitive position could be improved by
merging with a larger company, but that the advantages of
merger would be nullified by the new rules which would require
it to divest of all but one of its owned and operated stations in
each market it is licensed to serve in order to obtain approval of
the merger request.

8 Raymond B. Nixon, “Trends in U.S. Newspaper Ownership:
Concentration with Competition,” Gazette, vol. XIV, No. 3
1968, PP- 8-9.

46

is urged that the Commission not only permitted but
encouraged AM licensees to become TV licensees in
their own area, and again, later, to acquire FM stations
in their area, that it is inequitable now not to permit
such common ownership for it robs such owners of the
fruits of their risk taking, and that the rules will hinder
FM and UHF development. At the time that such
encouragement was given to AM licensees, we con-
sidered that the objective of encouraging the larger and
more effective use of radio was overriding, for TV and
FM channels were lying unused, But conditions have
changed, and we are obligated to change the priority of
our objectives, in the public interest.

23. It is said that the good profit position of a
multiple owner in the same market results in more
in-depth informational programs being broadcast and,
thus, in more meaningful diversity. We do not doubt
that some multiple owners may have a greater capacity
to so program, but the record does not demonstrate
that they generally do so. The citations and honors for
exceptional programing appear to be continually
awarded to a very few licensees—perhaps a dozen or so
multiple owners out of a total of hundreds of such
owners. Although multiple owners may have more
funds for experimental programing and innovation,
there has been no showing that the funds are spent for
these purposes. However, accepting arguendo that some
multiple licensees do a better programing job in this
respect than do single station licensees, we are not
reducing the holdings of multiple licensees. Moreover,
the further notice being issued today, which would
require divestiture over a period of time, would not
reduce the financial strength of multiple owners that
presumably leads to an ability to engage in such

47

programing. Rather, it would maximize the number of
different licensees in each market but would permit the
purchase by divested licensees of a similar number of
stations in other markets.

[313] 24. Finally, the argument is made that rules
prohibiting a present owner of a single full-time station
in a community from obtaining additional stations there
would be illegally discriminatory because they would
prevent him from competing effectively with combina-
tion owners in the area and would make a privileged
class out of combination owners. Therefore, it is
argued, if the rules are adopted, divestiture should be
required. The decision to refuse to permit additional
local concentration in the future does not necessarily
require that existing situations all be uprooted. On an
overall basis, there has been no showing that single
Stations cannot compete effectively with combination
owners. We are herewith instituting new rulemaking to
consider the need for divestiture and will there consider
the arguments in its favor.® Individual cases can of
course always be dealt with where necessary to preserve
adequate competition. But a line must be drawn
somewhere, and the application of new policy to new
applications is a clearly reasonable approach.

25. Although the principal purpose of the proposed
rules is to promote diversity of viewpoints in the same
area, and it is on this ground that our above discussion
is primarily based, we think it clear that promoting
diversity of ownership also promotes competition. A
number of comments were made with respect to the
competitive advantage that licensees of coowned
stations have over the single station licensee in the same

See par. 68, infra.

48

area. Thus, the Department of Justice points out that
AM, FM, and TV are for many purposes sufficiently
interchangeable to be directly competitive, and that
competitive considerations support adoption of the
rules. It mentions that one effect of combined
ownership of broadcast media in the same market is to
lessen the degree of competition for advertising among
the alternative media. Another, it is averred, is that a
combined owner may use practices which exploit his
advantage over the single station owner. These practices
may include special discounts for advertisers using more
than one medium, or cumulative volume discounts
covering advertising placed on more than one medium.
Mount Wilson, Freddot, and Lunde present similar
arguments about such practices.'®

26. Opponents of the proposed rules state that there
is no hard evidence that multiple licensees generally
engage in practices of this kind. CBS says that the
argument about such practices provides no justification
for the rules for the Commission long ago addressed
itself to the matter (Combination Advertising Rates, 24
Pike & Fischer, R.R. 930 (1963) ), and there is no
significant problem in this area. A study commissioned
by WGN and others purports to find no statistical
evidence that revenue yields for multiple owners are
significantly different from yields of single-station

OT Ke topic is outside the scope of this docket. If rules were
contemplated, they would have to be handled in a separate
proceeding. The same would be true of the question of call
letters. Comments herein suggest that the use of identical letters
for commonly owned stations in the same community has
anticompetitive effects and that rules should be adopted
requiring the use of separate call letters. A petition for
rulemaking on this subject (RM-1451), filed May 5, 1969, by
Lincoln Broadcasting Co., is pending.

49

owners (using revenue per thousand audience as an
indication of superiority). However, we note that it
does show significantly higher revenue yields for
multiply owned radio stations, [314] particularly in
their national spot business, which appears to hold true
in all sizes of markets (at pp. 17-20 of the study).

27. NBC, in its reply comments (directed against the
Justice comments), argues that the market shares of the
largest owners in the larger markets are well below the
points which are generally considered danger points by
antitrust standards. The basic data on market shares
which it presents, in spite of the conclusion of NBC, do
show high concentration in some markets. For example,
in Washington, D.C., if the market is considered to be
only the broadcast media, the top three owners have a
64-percent market share; if the market is considered to
be broadcast and arwepeper media, the top two owners
have a 68-percent share.'! In any event, we find that
distributing ownership more broadly will strengthen
competition by removing the potential of competitive
advantage over single station owners. There is no need
to find specific abuses in order to provide a healthier
competitive environment of benefit to smaller licensees.

28. In sum, as we have stated before (18 F.C.C.
288,291-2):

It is our view that the operation of broadcast
Stations by a large group of diversified licensees
will better serve the public interest than the

11 :
NBC obtains a much smaller market share figure by using
the revenue of the broadcast owner, excluding newspaper
revenues, but dividing it by the base of total broadcast and

newspaper advertising revenue in the market (NBC reply
comments, p. 13).

50

operation of broadcast stations by a small and
limited group of licensees. The vitality of our
system of broadcasting depends in large part on
the introduction into this field of licensees who
are prepared and qualified to serve the varied and
divergent needs of the public for radio service.
Simply stated, the fundamental purpose of this
facet of the multiple ownership rules is to promote
diversification of ownership in order to maximize
diversification of program and service viewpoints as
well as to prevent any undue concentration of
economic power contrary to the public interest.

DISCUSSION OF THE RULES

Stations in the same “‘market”’

29. The notice proposed rules that would limit
common ownership of full-time broadcast facilities in
the same market, but did not define the latter term.
The memorandum opinion and order announced what
“market” would mean for purposes of administering the
interim policy (see par. 8, supra) and stated that the
interim usage would not prejudice ultimate decisions on
the meaning of “market” in any rules which might be
adopted in this proceeding.

30. Although comments were invited on what
“market” should mean if the proposed rules were
adopted, few were received. The most appealing
suggestion was that a “market” should be a standard
metropolitan statistical area (SMSA) as defined by the
1960 or subsequent censuses and that the rules should
apply to stations licensed to any community within the
same SMSA. We have given consideration to use of the
SMSA but reject it because although it might have some

51

advantages, it has drawbacks as well. For example, not
all communities are located within an SMSA. If an
SMSA “market” were used, it would be necessary to
use a separate standard for communities lying outside
an SMSA. We think it best to have a fixed standard
that can be applied uniformly in all cases.

[315] 31. Paragraphs 9 and 10 set forth the standard
used in the rules adopted today. (They also point out
that the rules are worded in terms of overlap or
encompassment and do not use the term “market.” The
deliberate omission is intended to avoid confusion since
“market” is given various meanings in the broadcast
industry.) The new encompassment standard to be
applied to cases involving commonly owned stations in
different broadcast services is less restrictive than the
standard used for such stations under the interim
policy. For example, under the interim policy if the
l-mv./m. contour of an FM station licensed to serve
one community overlapped the grade B contour of a
TV station proposed to be licensed to serve another
community, the stations were considered to be in the
same market. But under the new rules, in such a case
the 1-mv./m. contour of the FM station must not only
overlap the grade A contour of the TV station (as
contrasted with the grade B contour) but must
encompass the entire community of license of the TV
station. In other words, the stations must be closer
together in order to fall under the proscription against
common ownership.

32. In arriving at a practical criterion for commonly
owned stations in different broadcast services, we
decided that the overlap standard of the interim policy
went further than we thought necessary to achieve the
desired ends of the proposed rules. We are of the view

52

that the concept of a usable signal for a primary service
from cach of two stations (in different broadcast
services) to the principal community of one of them
should be determinative. However, we still believe that
for stations in the same broadcast service the previously
existing overlap standard should apply and as para-
graphs 8 and 9 indicate, the new rules therefore retain a
proscription against overlap of TV grade B contours,
AM 1-mvy./m. contours, and FM 1-mv./m. contours. ! ?

33. A final point about the criteria of the new rules
should be mentioned. It pertains to major changes.
Under the new rules, as under the previous duopoly
rules, increases in overlap of specified contours between
commonly owned stations in the same broadcast service
are proscribed. Thus, for example, an application to
increase power of one of two commonly owned AM
stations with overlapping l-mv./m. contours would be
prohibited since this would result in increased overlap.
However, for commonly owned stations in different
broadcast services the standard is not one of contour
overlap but, rather, one of community encompass-
ment—a standard aimed at preventing a single owner
from bringing more than one primary service to a
community of license. Hence the method of treating
major changes will be different. The new rules are silent
on the point, but we here announce that if proscribed
encompassment already exists and if after grant of an
application for major change it would still exist, the
rules will not bar the grant.

34. The concept is best illustrated by an example:
Assume that an owner is licensed to serve community A

12 For explanation of the basis of this retained standard, see
“Multiple Ownership” (docket No. 14711), 29 F.R. 7535 (1964).

53

with an FM station and community B with an AM
station, and that the 2-mv./m. contour [316] of the
latter station just barely encompasses all of community
A. Grant of an application for increase in power of the
AM station would result in the 2-mv./m. contour of the
Station easily encompassing community A and going
quite some distance beyond it. Such a change would
not be barred by the rules since both before and after
the change the situation would still be one in which a
single owner was bringing more than one primary
service to the community (albeit after the change
community A would be receiving a stronger signal). The
principle is not limited to power changes but would
apply to al) major changes, for example, to changes in
transmitter site. In contrast to the foregoing result, if
the stations in community A and B had both been in
the same broadcast service (that is, AM) and had
previously existing proscribed overlap, the power change
would be denied since it would result in increased
overlap.

Characteristics of different “markets”

35. A widely held view of opponents is that the
proposed rules are too sweeping and not tailored to the
specific requirements of particular situations. It is said
that all markets are not alike and that the rules should
treat different markets differently. Some urge that large
markets should be exempted because of the great
number of independently owned mass media serving
them. Others urge exemption for small markets because
viability there often depends on having combined
operations, and point to the fact that the Commission
recognized financial difficulties in smaller markets when
it exempted them from the AM-FM duplication rules.

54

Still others proposed that if a market has a specified
number of “voices,” it be exempted on the ground that
it presumptively has an adequate amount of diversity so
that the rules are not needed. And some suggest that
weights or points be given for various types of media
and that a single owner be permitted to have only a
specified number of points in a market.!*

36. The Litwin report (note 5, supra) suggests that
across-the-board rules limiting common _ ownership
would be detrimental to the public interest in the
majority of cases. We find weaknesses in the study so
greatly affecting the conclusions reached therein as to
render them of little value in our deliberations.

37. Thus, for example, the study relies largely on
statements of interviewees for obtaining the information
on which most of its conclusions are based. The
technique of relying on statements of interviewees
rather than on more solid factual data is open to
question. For example, it would appear the better
course to ascertain the hours of news broadcast per day
by a station by examining the last renewal application
or the station logs rather than inquiring of media
personnel. Admittedly, some of the _ information
gathered from the interviewees would, by its nature (for
example, opinions about the amount of influence of
various media personnel on media policy), not be

'S air Trails suggests an incentive plan that might encourage
owners to break up local combinations by permitting them to
own a greater number of stations nationally than is permitted
under present rules. This would increase diversity locally at the
expense of increasing concentration of control nationally. We
think it more in the public interest to adopt rules that would
increase local diversity while at the same time not increasing
national concentration to the degree suggested.

55

available in factual data, and could only be obtained by
Interviews. How-[317] ever, a weakness of any interview
situation is that the interviewee, intentionally or
unintentionally, may not say what is actually true. It
does not appear that any attempt was made to ask
questions designed to provide a crosscheck on some of
the answers given.

38. The study matched markets demographically,
chose markets with close to the same number of media
outlets in each media category, and so on, in an effort
to show how singly owned stations differ from stations
which are commonly owned with other stations in a
single market. If differences between commonly owned
and singly owned stations are to be attributed to the
ownership factor one must be sure that the media
compared differ little or not at all in other important
respects. It would appear that the study fails to meet
this test. For example, it shows the number of media
personnel interviewed in the commonly owned and
singly owned categories in each market, but does not
indicate with what specific media they were associated.
At the request of the staff, Dr. Litwin submitted a
letter which indicated that in the commonly owned
sample (covering six markets used in the study) there
were nine VHF and one UHF TV stations all of which
were network affiliated. In the singly owned sample
there were five TV stations—two VHF affiliates, one
VHF independent, and two UHF independents. The
total profits (before taxes) of the TV stations in the
former group were $12.7 million in the 1968 as
compared to $3.9 million for the latter group in the
same year. Conclusions reached about these stations
could just as well be attributed to their profit position
as to their being commonly or singly owned. One could

56

argue that even if a station were singly owned, if it
were a VHF station in a large market with a CBS
affiliation it would be in an excellent position to
provide excellent news and public affairs service to the
public, a type of programing which Litwin suggests 1s
more likely to be broadcast by commonly owned
stations. Moreover, some singly owned stations and
some of the stations commonly owned in the same
market were owned by parties who also owned stations
elsewhere in the Nation, but the effect of this factor
was not examined.

39. Another weakness is that although in many
instances statistically significant differences were the
basis for statements of how commonly owned and
singly owned operations differ, often statements were
made that were based on differences that were not
indicated to be statistically significant in the tables
contained in the report.

40. Finally, some assumptions of the study are open
to question. For example, it assumes that singly owned
stations go hand in hand with lack of financial
resources; that a single owner’s personal involvement in
operating his stations is contrary to the public interest;
and that editorial stands in highly controversial areas,
which it finds single owners have more of a tendency to
take, are inflammatory.

41. We agree with those who say that rules should
be reasonably related to the ends sought, and believe
that the rules adopted herein are. They represent a
particularization of our conception of the public
interest (National Broadcasting Co., supra, at 218), and
deal with a recurring problem which we believe is best
dealt with by general rules. Though they are general in
nature, they take into account the precarious positions

57

of many existing FM stations, the lack of aural [318]
service in small markets with class IV stations, the
needs of some daytime AM stations for nighttime
service that will benefit a community, peculiar problems
of satellite television stations, the policy of fostering
UHF development, and other matters.

Comparability of A.M., F.M. and TV'*

42. Opponents of the proposal aver that the three
services are not comparable and therefore that the rules
are imapt since the different services have different
audiences in kind and size and eliminating common
ownership in the same market does not mean that

individual members of the public will receive more
voices.

43. What opponents appear to be saying is that if,
for example, one owner has three stations in the same
market and each serves the same audience, then if the
stations were sold and became separately owned that
audience would be exposed to three voices instead of
one and diversity of viewpoints would have been
promoted. However, according to their argument, if
each of the stations serves a different audience, and
they say each would, then having three separate owners
instead of one merely means that although each
audience would be exposed to a different voice, it
would still be just one voice, and the listeners would
have no increased diversity.

l4This section deals only with comparability of the services
with regard to their broadcasting of diverse viewpoints. As to

comparability in terms of economic competition, see pars, 25-28
supra.

58

44. The rules are designed to prevent any possible
undue influence on local public opinion by relatively
few persons or groups. They can do this by either
bringing more voices to the same audience, or by
assuring that no one person or entity transmits its single
voice to each of three audiences. Assuming separate
audiences for each of the three services, a commonly
owned AM-FM-TV combination sends a single voice to
the sum of all three audiences which might well
constitute most of the community. With three separate
owners, no one person or entity could so reach the
entire community. Each would reach a part of it, and
this would act to reduce possible undue influence.
Insofar as there is overlap of audiences of the three
services, separate ownership, of course, would being
more voices to the overlapping audiences. Such overlap
may be substantial.

FM and UHF development

45. Some parties urge that the rules would be
contrary to the policy of fostering UHF development,
since often the local AM licensee might be the only one
willing to undertake to build a UHF station, so that
may be the only way that UHF may develop in many
communities. Moreover, in many communities, we are
told, independent FM operation is not viable. If this is
the case, it is argued, it is difficult to see how the rules
would achieve diversity. Channels would lie fallow that
otherwise might have been used by licensees of other
local stations. Moreover, when AM-FM combinations are
sold, there may often be no buyer for the FM station,
with the result that it would go off the air. This,
opponents contend, would be unfair to AM licensees
who went into FM operations in the same community

59

as the result of Commission encouragement since it
would deny them the fruits of their risk [319] taking
by depressing property values at the time of sale.
Consequently, it is argued, many might be disinclined
to enter into new areas of communications in the
future, thereby slowing development in new areas, and
this would be contrary to the public interest. It is also
pointed out that the AM-FM_ nonduplication rule
recognized that AM-FM combinations in small markets
are not in a position to program even 50 percent
separately, yet the rules proposed herein would not
only require 100-percent separate programing, but
separate ownership as well.

46. As opposed to the foregoing, supporters of the
proposal hold that the clear effect of combined
ownership of stations in the same market is to reduce
diversity of news and information sources available and
to lessen the degree of competition for advertising: that
separate ownership of AM and FM stations would
require completely separate programing instead of the
amount presently permitted under the non-duplication
rules and that this would give the public a greater
choice of programing; that it is difficult to imagine that
a dual owner would carry conservative editorials on its
AM station and liberal editorials on its FM station—
separate owners give more views; and that common
ownership of AM and FM sstations restricts FM
development.!®

15 Several parties suggest amendment of the AM-FM nondupli-
cation rules in a way that would require more nonduplicated
programing. See “Broadcast Station Assignment Standards”
(docket No. 18651), 19 F.C.C. 2d 472, 488 (1969), where we

said that a document dealing with this matter will be issued in
the near future.

60

47. We find the arguments of opponents persuasive.
Surely independent UHF stations still need all the
support they can receive. Although AM stations have
shown little inclination in the past to build or acquire
such UHF stations,'® combinations of UHF with AM
stations, or, should the occasion arise, with FM stations
or with AM-FM combinations, will be dealt with on an
ad hoc basis, as indicated in note 7 to the revised
section 73.636.

48. With respect to existing AM-FM combinations in
the same area, we recognize that in most cases the
operations may be economically and/or technically
interdependent. Financial data reported by FM stations
indicate that they are generally losing money.! 7? We are,
therefore, in the rules adopted today, permitting
assignments or transfers of combined AM-FM stations
to a single party where a showing is made that
establishes the interdependence of the stations and the
impracticability of selling and operating them as
separate stations. Although this will not faster our
objective of increasing diversity, it will preclude the
possible demise of many FM stations, which could only
decrease diversity.'®

'©We note only two cases of UHF-radio combinations in the
top 50 markets (Department of Justice comments, app. A).

'7 Operating statements showing revenues, expenses, and
income are reported to the Commission by FM stations which
operate independently of an AM station in the same community.
Reports of combined AM-FM stations do not show income for
the FM separately. In 1968, of the 433 independent FM stations
reporting, only 148 showed a profit. Their average profit, before
Federal income taxes, was $15,308. The average loss for the
other 285 stations was $21,599.

Sin the light of our view, expressed at various times in
recent years, that FM should not be an adjunct or supplement of

[footnote continued]

61

49. However, although we take the aforementioned
step as to existing AM-FM combiantions, licensees of
FM stations or of full-time AM stations (with the
exception of certain class [V’s) will not be permitted to
[320] obtain a second aural authorization in the same
market. We believe that there is no general shortage of
aural service, and have decided to prevent any further
concentration of ownership of such stations. The
excepted class IV stations are those in markets with a
shortage of local annual service, as explained below. For
reasons also set forth below, daytime-only AM stations
will be permitted to obtain FM licenses.

Exemptions—daytime AM and some class IV AM
stations

50. Our proposal in the notice, as clarified in the
memorandum opinion and order, was that a daytime
AM station could obtain a license for a full-time station
in the same market and conversely, a full-time station
could obtain a license for a daytime AM station.
However, no full-time station could obtain a license for
another full-time station in the market.

51. The rules we adopt provide that a daytimer
may obtain an FM station in the same market. But no
FM station will be permitted to acquire a daytime AM
station. Moreover, and contrary to the proposal,
licensees of class [TV AM stations in communities under
10,000 will be permitted to acquire an FM station.

AM, but that both AM and FM should be integral parts of a
total aural service, it is our intent to study further the entire
questions of combined AM-FM ownership in the same area. This
will be done in docket No, 18651 (note 19, infra) or otherwise.

62

52. Arguments are made that all class IV stations
should be treated like daytime stations and permitted
to obtain licenses for FM stations in the same market
because class IV stations have very limited nighttime
coverage and therefore resemble daytimers. A similar
argument is made for full-time stations with DA
patterns restricting nighttime coverage. Additionally, it
is argued that daytimers could also be nighttimers if
they were willing to invest in night directional facilities,
and therefore should not be given preference over those
who have made such investments, with respect to the
right to acquire FM facilities.

53. It is said that in establishing the table of
assignments for FM channels (docket No. 14185), the
third and sixth priorities were to provide each
community with at least one FM station, especially
where the community has just a daytime-only or local
class IV station; and to provide a substitute for AM
operations, which, because they are daytimers or suffer
serious interference at night, are marginal from a
technical standpoint. It is said that the Commission
obviously envisioned that, where practicable, daytime-
only and class IV stations would have an FM channel
available to them. We are told that the new rules would
for the first time make a distinction between the two
types of stations.

54. It is also averred that the Commission has
encouraged AM-FM combinations as an alternate means
of providing aural broadcast service if daytimers could
not provide adequate service within the restrictions of
the AM rules, or to overcome service losses caused by
interference resulting from presunrise operation of
daytime-only stations.

63

55. Against the aforementioned argument for class
IV exemption, Mount Wilson, a single FM station
licensee and a supporter of our proposal, states that
even with reduced nighttime coverage, the competitive
influence of such stations can be far reaching, and that
to exempt class IV’s would impede the development of
FM (see par. 46, supra).

56. Citizens Committee, also a supporter, takes the
position that radio is now primarily a daytime medium
so that it is important that efforts be made to achieve
diversity of programing, especially in small communities
where local issues may be covered only by radio. It
therefore urges that consideration be given to not
exempting daytime AM stations from the rules.

57. It cannot be denied that past encouragement has
been given to AM licensees to engage in joint AM-FM
operations. However, as stated elsewhere (par. 22,
supra), changing conditions require a re-evaluation of
objectives, which may result in rule changes.'? For
example, for a long time 100 percent duplication of
AM-FM programing was permitted. However, that was
changed by the adoption of the AM-FM nonduplication

'9The case of those arguing that the Commission has
encouraged such joint operations may be overstated. For
example, they cite our statement in the report and order which
established new AM assignment standards in 1964, where we
said, in presenting reasons for restricting the construction of new
nighttime AM stations, that “* * * such needs for nighttime aural
service as dO exist may be met far more efficiently by FM
stations, * * *” (“AM Assignment Station Assignment Standards”
docket No. 15084, 2 Pike & Fischer, R.R. 2d 1658, 1672
(1964),) This statement does not necessarily mean that the FM
stations should be operated by AM licensees in the same
community. Similarly, the third and sixth priorities in docket
— 14185, mentioned above, did not necessarily have that

port.

64

rules. It is noted that at the time that those rules were
adopted, we referred to our previously expressed view
that separate ownership of AM and FM stations in the
same community was a desirable long-range goal that
was not being gone into at that time in view of the fact
that the subject of possible general revisions of the
multiple ownership rules was then under study (Id., at
1678).

58. For public interest reasons previously mentioned,
we have fashioned the rules to give special consideration
to the sale of AM-FM combinations. Additionally, for
reasons mentioned below, class IV AM stations in
communities with less than 10,000 population, and all
daytime AM stations, will be permitted an FM station
in the same community. Beyond this we are not
prepared to go in the matter of dual ownership of AM
and FM stations.

59. We now turn to the exemption of daytime AM
stations. As was proposed, such stations will be
permitted to obtain FM licenses. This is done in the
interest of bringing nighttime service to areas served by
daytimers, thereby adding a voice for nighttime
listeners.2° We think this purpose outweighs the
argument of Citizens Committee that daytime AM
stations should not be exempted.

20Not only will we permit daytimers to use FM to bring
nighttime serve, but in many cases we shall require them to use
FM if they wish to provide such service. In a notice of proposed
rulemaking and notice of inquiry looking toward revision of the
AM station assignment standards (“Broadcast Station Assignment
Standards” docket No. 18651, 19 F.C.C. 2d 472 (1969)), we
have proposed rules (and stated reasons in support thereof) that
would require a daytimer seeking new nighttime AM service to
show that there is available in his community no commercial FM
channel on which he could operate a station (at 475-6).

65

60. The reasons for permitting daytimers to obtain
FM do not apply in reverse. Therefore, contrary to the
proposal, the rules do not permit an FM station to
obtain a daytime AM license since the FM station is
already giving both day and night service.* ! Similarly,
we do not generally permit full-time AM stations,
whether class IV or stations with DA _ patterns
restricting nighttime coverage, to obtain authorizations
for FM stations in the same area. Such AM stations are
already licensed to serve both day and night. Though
they may have restricted [322] service areas at night,
and though they might, by using FM, bring an
additional voice to areas not now served by them at
night, it would be at the expense of having their voice
over two channels in their present daytime and
nighttime service areas. We are willing to permit a
daytimer to have two daytime channels (AM and FM)
and one nighttime channel (FM) in the interest of
adding a nighttime voice. But we are unwilling to
permit full-time AM stations to have two daytime
channels (AM and FM) serving the community of
license and outlying areas, and two nighttime channels
serving a more restricted area which includes the
community of license,?? in order to add a voice (FM)
to outlying areas.

2IThe new rules prevent an FM licensee from obtaining, in
any manner (new station, assignment, transfer), an authorization
for a daytime station serving the same area. Additional reasons
for restricting authorizations of new daytime stations, whether or
not the applicant is an FM licensee, appear in the notice of
proposed rulemaking and notice of inquiry in docket No. 18651,
note 19, supra.

22 Present rules require a licensee to serve all of its community
of license, day or night.

66

61. However, with regard to class IV stations in
communities under 10,000 population, a special factor
convinces us that they should be permitted to obtain
FM licenses: Generally there is no other station licensed
to the same community to give nighttime service, so
that the areas lying outside the nighttime service area of
the class IV usually receive no nighttime aural service
from local stations. On the other hand, for communities
over 10,000 population, generally the outlying areas
receive at least one aural service from a local station.
We have previously said that because there is no general
shortage of aural service we would prevent further
concentration of ownership. However, in the case of
outlying areas of communities under 10,000 population,
there appears to be a shortage, and class IV stations will
be permitted to alleviate it by obtaining FM licenses if
they desire them.

62. Finally, on the matter of full-time AM stations
alleging the need for an FM license in order to
compensate for presunrise interference they receive,
such applications for FM licenses will be handled on an
ad hoc basis. A factor that would be considered in such
cases is the relative importance of the alleged loss of
service for a few presunrise hours as against the
importance of achieving diversity of programing on two
channels in the same area for the entire remainder of
the day and night.

Miscellaneous matters

63. Television satellite stations are handled on a
case-by-case basis under the present duopoly rules
because of special problems pertaining to them (see
“Multiple Ownership” (docket No. 14711), 29 F.R.
7535, 7539 (1964)). This practice, for the same
reasons, is carried over into the new rules.

67

64. Pursuant to our general plan of permitting power
increases for all class [V AM stations, applications for
such increases are exempted from the operation of the
new rules. However, in view of our expressed intent to
discontinue the policy of encouraging class IV power
increases as of September 1970 or later in some cases
(“Broadcast Station Assignment Standards,” 19 F.C.C.
472, 486-7 (1969) ), this exemption will be eliminated
in like manner.

The nondivestiture provision

65. Some parties urge that although the rules are
intended to be prospective and not require divestiture,
it is likely that they would produce results contrary to
the expressed intent to “grandfather” existing licensees
because implicit in the rules is the determination that it
is contrary to the public interest for any licensee,
prospective or existing, to own more than one station
in a market. It is asserted that a flood of competing
applications filed at renewal time by new applicants
with no broadcast interests in the market, but
possessing highly impressive traditional qualifications,
would prevail either at the Commission level or on
review by the courts, and that this would thwart the
intent to grandfather.?>

66. We believe that our policy statement of January
15, 1970, on comparative hearings at renewal time

23 some opponents suggest that, in addition to the foregoing,
the WHDH decision (WHDH, Inc., 16 F.C.C. 2d 1, 17 F.C.C. 2d
856 (1969)) would invite filing of competing applications at
renewal time. Citizens Committee, a supporter of our proposal,
believes that this would not be so because of the uncertain effect
of the decision and the reluctance of competitors to file.

68

adequately covers this question (35 F.R. 822,
F.C.C. 2d ). Moreover, as to the fears which are
expressed, our experience since we adopted the fixed
overlap duopoly rules, which “grandfathered” existing
licensees, has shown that there has been no great
shower of competing applications filed against renewal
applications for stations the service contours of which
overlap those of commonly owned stations.

67. It is appropriate here to mention briefly the
arguments which opponents to the rules make with
regard to divestiture. Typical is that of Air Trails which
says that because of the relative stability of the tenure
of ownership and the relatively small number of new
applications to be expected in the future as compared
with the past, the restructuring of the industry would
be slow, and except over a very long period of time,
quite minor. (Also see par. 24, supra.) However,
opponents are generally quick to state that they oppose
divestiture since it would not be feasible or equitable,
and would be disruptive and inconstent with the overall
broadcast regulatory system. Supporters of the rule are
of the view that without divestiture the rules would not
be effective. Justice, without using the term, appears to
Suggest divestiture at renewal time. Citizens Committee
and Freddot, Ltd., recommend that divestiture take
place in stages to ease the impact.

68. When the notice was issued we believed that it
was in the public interest to “grandfather” existing
licensees (partly because of the disruptive effect of
divestiture), although requiring them to break up
combinations when selling their stations. Consideration
of the record, however, has given us pause. Being now
of the view that the rules we adopt, even though
providing for no divestiture, are a reasonable start

69

toward diversity and are in the public interest, but that
divestiture may further serve the public interest, we
should like to explore the matter more fully.
Accordingly, we are today issuing a further notice of
proposed rulemaking looking toward divestiture in order
to develop more information on the subject and to give
interested parties an opportunity to comment on the
matter. For similar reasons, the matter of newspaper
ownership, mentioned by various parties, is also dealt
with in the further notice.

[324] Minority cross-interests

69. ABC, Auburn, and GEBCO assert that the
present duopoly portions of the multiple-ownership
rules contain no mention of minority-ownership in-
terests. In this connection, they direct our attention to
Radio Athens, Inc. v. FCC, 13 U.S. App. D.C. 333, 401
F.2d 398 (1968). In that case, Radio Athens, licensee
of AM station WATH, filed an application to increase
power. A 70-percent stockholder of Radio Athens was,
additionally, an officer and director thereof, and also
owned less than one-third of the stock of the licensee
of a neighboring AM station and was an officer and
director of that licensee. Grant of the application would
have resulted in the type of overlap vf contours
proscribed by the duopoly rules.

70. The decision pointed out that the duopoly rules
state that a broadcast station license will not be granted
to parties directly or indirectly owning, operating, or
controlling one or more stations in the same broadcast
service if the grant of the license will result in any
overlap of specified service contours. The court held
that the rules by themselves did not advise a person
that ownership of less than one-third of the stock of a

70

close corporation of which he was an officer and
director constituted, as a matter of law, such control as
to make the application patently violative of the
Commission’s rules and subject to being not accepted
for filing by the Commission.

71. The court stated that various constructions
which the Commission had in the past made of the
duopoly rule to make it operative in cases of
cross-interest, whether or not the interest is tantamount
to ownership, operation, or control, did not operate to
give an applicant fair notice that its application was
patently not in accordance with the rules and therefore
subject to being rejected. It said that in circumstances
where such a drastic step as dismissal of an application
without any consideration is involved more clarity of
notice to an applicant was needed and suggested that
this should be given by the adoption of rules. However,
it also said that agencies may rightly expect attention
to be accorded to their interpretative rulings and expect
attention to be accorded to their interpretative rulings
and indicated that in cases not involving outright
dismissal of an application such an expectation would
be justiiied.

72. ABC, Auburn, and GEBCO state that since the
notice did not mention minority cross-interests, they
assume that the present proceeding is not directed at
broadening the duopoly rules to embrace such interests,
and that if the Commission decides to take such a step
they will be given an opportunity to comment pursuant
to provisions of the Administrative Procedure Act. We
agree that the notice did not refer to minority
cross-interests, and the rules we adopt today contain no

71

new language thereon.** Inasmuch as the new rules are
an extension of the present duopoly rules, we are
announcing that the rulings that we have made in the
past On minority cross-interests in duopoly cases will
be carried over and applied to cases involving such
interest under [325] the new rules.*5 However, of
course, situations under the new rules that are like that
which arose in Radio Athens, in which an application
was dismissed as not acceptable for filing, will be
treated consistently with the holding of that case.

73. The subject of minority cross-interests, involving,
for example, less than complete cross-ownership,
interlocking directorates, partial ownership in one
station and employment by another, and other matters,
is in need of reexamination and we intend to give it
consideration which may lead to actions looking toward
the issuance of interpretative or other regulations.

24Ry a report and order in docket No. 15627 (“Multiple
Ownership of AM, FM, and TV Stations,” 13 F.C.C. 2d 357
(1968)) amendments to the multiple-ownership rules were
adopted. They became effective about 3 weeks after the decision
in Radio Athens. Although not going into the question of
minority cross-ownership interests in detail, new note 2 of the
rules as amended therein states that partial as well as total
ownership interests in corporate broadcast licensees are con-
sidered in administering the duopoly rules.

25 See conditions applied against cross-interests in two
overlapping television stations, WECT-TV, Wilmington, N.C.,
public notice of Jan. 13, 1966, mimeograph No. 78695, Roy H.
Park, who held control of one of two overlapping stations,
WNCT-TV, Greenville, N.C., and also a minority stock interest in
WECT-TV, Wilmington, N.C. (the second overlapping station),

was precluded from holding an office in or participating in the
management of WECT-TV.

72
THE INTERIM POLICY

74. The notice, as clarified by the memorandum
opinion and order, provided that all applications within
the scope of the proposed rules tendered for filing on
or before April 3, 1968 (the date the notice was
published in the Federal Register) and subsequently
accepted for filing would be processed according to
existing rules and precedents. However, as an interim
policy, applications falling within the scope of the
proposed rules that were tendered for filing after that
date would be accepted for filing if they otherwise
complied with Commission rules or other requirements,
but would not be acted on until the Commission had
determined the action to be taken on the proposed
rules.

75. If applications were mutually exclusive and some
or all of them fell under the provisions of the interim
policy, the applications were not to be designated for
hearing, but were to be held in a pending file without
further action until decisions were reached in this
proceeding. However, to avoid the creation of a
backlog, this aspect of the policy was subsequently
modified (Seaborn Rudolph Hubbard et al., 15 F.C.C.
2d 690 (1968), 16 F.C.C. 2d 312 (1969)) to provide
that such mutually exclusive applications would be
designated for hearing. If in such a hearing an
application not in conflict with the proposed rules were
preferred, a grant would be made in the usual manner.
If the preferred application were one falling within the
scope of the proposed rules, then it and all other
applications remaining in the proceeding would be held
in hearing until resolution of the rulemaking proceed-
ing, with appropriate action being taken in the light of
the disposition of the rulemaking proceeding.

73

76. On relatively few occasions the Commission, in
dealing with applications that fell within the scope of
the proposed rules and that were not mutually exclusive
with other applications, has for good cause waived the
interim policy and made an unconditional grant; or a
grant subject to the condition that the purchaser of
more than one full-time station in the same market
dispose of the excess stations as soon as possible, or
within a specified period of tine: or a grant subject to
the outcome of this proceeding.

[326] 77. Our unconditional grants and those with
the condition of divestiture will, of course, stand. With
regard to grants subject to the outcome of this
proceeding which involve assignment or transfer of
AM-FM combinations that are in the same market
under the new rules, we shall, if the material on file
contains sufficient information to show that the
stations cannot be separately sold and operated, and if
they would not be in the same market as a commonly
owned TV station, make the grant final. If more
information is needed for a decision on such cases it
will be requested of the applicants. In cases where the
proper showing is not made, the AM-FM facilities must
be separated. Grants involving TV and aural facilities in
the same market will also be required to be separated.
Applications for waiver will be considered. Grants
involving TV satellite stations will be reviewed on an ad
hoc basis.

78. The new rules will be effective as to pending
applications tendered for filing after April 3, 1968,
whether or not in hearing status. Pending applications
may be amended to bring them into compliance with
the new rules. If possible, such amendment should be
made prior to the effective date of the rules.

74

Applications which are in hearing status may be
amended, subject to the usual rules governing removal
from hearing status. All applications (in hearing or
otherwise) which are not amended to achieve compli-
ance will be dismissed when the new rules become
effective unless good cause is shown for not having so
amended prior to the effective date.

ORDER

79. In view of the foregoing, /t is ordered, That part
73. of the Commission’s rules and regulations /s
amended, effective May 15, 1970, as set forth in the
attached appendix B.

80. Authority for the adoption of the rules herein is
contained in sections 4(i) and (j), and 303 of the
Communications Act of 1934, as amended.

Federal Communications Commission,
Ben F. Waple, Secretary.

APPENDIX A

PARTIES FILING COMMENTS
(*Indicates reply comments also filed)

Air Trails, Inc., et al.
Air Trails, Inc.
Bulletin Co.
Great Trails Broadcasting Corp.
KPAT, Inc.
Radio Voice of Springfield, Inc.

75

Reams Broadcasting Corp.

RKO General, Inc.

Royal Street Corp.

Roywood Corp.

Time-Life Broadcast, Inc.

WEZE, Inc.

WKY Television System, Inc.

WRIT, Inc.
Alexandria Broadcasting Corp. (Alexandria)
[327] The All-Channel Television Society (ACTS)
American Broadcasting Cos., Inc.* (ABC)
Armstrong Broadcasting Corp. (Armstrong)
Association On Broadcasting Standards, Inc. (ABS)
Atlantic States Industries, Inc.* (Atlantic)
Auburn Broadcasting Corp., et al. (Auburn)

Auburn Broadcasting Corp.

Babcock Cos., Inc.

Channel 10, Inc.

Group One Broadcasting Co.

Group One Broadcasting Co. of Texas

Guaranty Broadcasting Corp.

Island Teleradio Service, Inc.

KAKC of Tulsa, Inc.

KFAB Broadcasting Co.

KMAP, Inc.

May Broadcasting Co.

Plains Television Corp.

Sagre De Cristo Broadcasting Corp.

Summit Radio Corp.

WKNE Corp.

WKRG-TYV, Inc.

Spanish International Broadcasting Co.

Augusta Broadcasting Co. (Augusta)
Basic Communications, Inc., et al. (Basic Communications)

_ Basic Communications, Inc.

76

Binghamton Press Co., Inc.

Central California Communications Corp.
Daily Telegraph Printing Co.
Daytona Broadcasting, Inc.

Evans Communications System, Inc.
Gannett Florida Corp.

Golden West Broadcasters

Golden West Broadcasters, Inc.

Guy Gannett Broadcasting Services
James Broadcasting Co.

Lake Shore Broadcasting Co., Inc.

Mount Hood Radio & Television Broadcasting Corp.

Multimedia, Inc.

New Hampshire-Vermont Broadcasting Corp.
Newhouse Broadcasting Corp.
Northwestern Publishing Corp.
Palmer Broadcasting Co.

Plough Broadcasting Co., Inc.
Providence Journal Co.

Radio Medfor

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385004_1574%3A06. Public record. Not legal advice.
