INDEX DIGEST

ACQUISITION AND CONSOLIDATION. See CONSOLIDATION.

ADMINISTRATIVE LAW.

Primarily an administrative ruling must be reasonable. World Broadcasting System, Inc., 40 (43).

ADVANCEMENT OF RADIO ART. See EXPERIMENTAL STATIONS.

ADVERTISING. See COMMERCIAL SUPPORT FOR BROADCAST STATION.

AMATEUR OPERATOR AND STATION LICENSE.

Suspension and Revocation: Amateur operator license suspended and amateur station license revoked for violations of Sections 301 and 303 (m-4) of the Communications Act of 1934 as amended, and Rules 207, 381, 384, and 386 of the Commission's Regulations. Ziegelheim, 612.

ANSWER.

Held, Failure of respondent to file its answer in accordance with Rules 104.6 and 105.26 precludes such respondent from being heard in connection with application for broadcast station. Central Broadcasting Company, 290.

APPARATUS. See BROADCAST STATION EQUIPMENT.

APPEARANCE.

Failure to Appear at Hearing: See DEFAULT.

APPLICANT FOR BROADCAST FACILITIES.

Qualifications of: See QUALIFICATIONS OF APPLICANT FOR BROADCAST FACILITIES. APPLICATIONS INVOLVING BROADCAST FACILITIES.

Assignment of License: See ASSIGNMENT OF LICENSE.

Construction Permit: See CONSTRUCTION PERMIT.

Modification of License: See MODIFICATION OF LICENSE.

Renewal of License: See RENEWAL OF BROADCAST LICENSE.

ASSIGNMENT OF BROADCAST LICENSE. See also TRANSFER OF CONTROL OF LICENSEE CORPORATION.

Application for consent to voluntary assignment of broadcast station license granted. First Congregational Church of Berkeley, et al., 417.

BROADCAST STATION, WIRE SERVICE FOR. See JURISDICTION OF COMMISSION.

BROADCAST STATION EQUIPMENT.

Equipment proposed to be used by applicant for new or increased broadcast facilities found to be in compliance with the Commission's requisites. Bairey, 48; Radio Sales Corporation, 70; Hathaway, et al., 73; Merced Star Publishing Co., 83; Bell Broadcasting Company, 90; Indianapolis Broadcasting, Inc., 105; Black Hills Broadcasting Company, 111; Mason City Broadcast Company, et al., 116; Voice of Longview, et al., 124; Atkinson, 137; Krebsbach, 142; Shepard Broadcasting Service, Inc., 198; Utah Radio Educational Society, et al., 246; Regan and Bostwick, 269; Evansville on the Air, Inc., 287; Jacobson, et al., 328;

BROADCAST STATION EQUIPMENT-Continued.

Missouri Broadcasting Corporation, et al., 349; Hayes, et al., 366; Sioux Falls Broadcast Association, Inc., 398; Navarro Broadcasting Association, 422; Pollard, et al., 430; Northern Broadcasting Company Inc., 440; American Broadcasting Company, 497; Roberts-MacNab Company, 510; Press Democrat Publishing Company, et al., 544; Iowa Broadcasting Company (KRNT), 577; Roderick, 616.

Equipment proposed by applicant for new broadcast station found not to conform to the standards of efficiency fixed by the Rules and Regulations of the Commission. Pierce, et al., 146.

BURDEN OF PROOF.

Classification of Telephone Companies: See CLASSIFICATION OF TELEPHONE COMPANIES.

CARRIERS.

Interlocking Directorates: See INTERLOCKING DIRECTORATES.

CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY.

Certificate issued authorizing the Southwestern Associated Telephone Company to purchase properties of The Western Telephone Corporation of Texas, The Western Telephone Corporation of Oklahoma, The Western Telephone Corporation (Kansas), subsidiaries of the Western Light and Telephone Co., Southwestern Associated Tel. Co., et al. 334.

Held, not to be in the public interest to issue certificate upon application of Crown Point Tel. Co. for authority to acquire properties of Northwestern Ind. Tel. Co., Crown Point Tel. Co., et al., 152.

CHARACTER OF SERVICE AREA. See NEED FOR BROADCAST SERVICE (Elements of a Showing as to Need).

CITIZENSHIP OF APPLICANT FOR BROADCAST FACILITIES. See QUALIFICATIONS OF APPLICANT FOR BROADCAST FACILITIES (Legal Qualifications). CLASSIFICATION OF TELEPHONE COMPANIES.

In General: Every wire telephone carrier owning, maintaining, or operating a toll line which crosses a state or national boundary is subject to all the provisions of the Communications Act of 1934.

A wire telephone carrier which neither demands nor receives any charge, compensation, or commission for interstate communications or service is not subject to the Act.

Every wire telephone carrier with one or more exchanges, or one or more toll lines within a single state, participating in interstate communication by physical connection with another wire telephone carrier within the same state, is subject to Sections 201 to 205 only of the Act, except where the matter of control referred to in Section 2 (b) (2) of the Act is involved. Classification of Telephone Companies, 37.

The phrase "directly or indirectly controlling or controlled by, or under direct or indirect common control with," as used in Sec. 2 (b) (2) of the Communications Act of 1934, contemplates a mixed question of fact and law to be determined in each case. Capital City Telephone Company, 189; Champaign Telephone Company, 379; Chillicothe Telephone Company, 233; Citizens Telephone Company of Clay County, 203; DeKalb-Ogle Telephone Company, 239; Classification of Telephone Companies, 37; Intra State Telephone Company, 170; Mansfield Telephone Company, 263; Rochester Telephone Corporation, 476. Telephone company held subject to all the provisions of the Communications Act where it is shown to be under direct control of an interstate telephone company. Cass County Telephone Company, 406.

CLASSIFICATION OF TELEPHONE COMPANIES-Continued. Burden of Proof Under Section 2 (b) (2): The burden of proof is upon the carrier claiming exemption under Sec. 2 (b) (2) to support such contention with sufficient evidence to show that it falls within the scope of such exemption. Intra State Telephone Company, 170; Citizens Telephone Company of Clay County, 203; DeKalb-Ogle Telephone Company, 239; Garrett Telephone Company, 320; Champaign Telephone Company, 379; Rochester Telephone Corporation, 476.

Companies Held Subject to all Provisions of the Communications Act: Garrett Telephone Company, 320; Champaign Telephone Company, 379; Cass County Telephone Company, 406; Rochester Telephone Corporation, 476.

Companies Held Subject to Sections 201–205, only: Intra State Telephone Company, 170; Capital City Telephone Company, 189; Citizens Telephone Company of Clay County, 203; Chillicothe Telephone Company, 233; DeKalb-Ogle Telephone Company, 239; Mansfield Telephone Company, 263.

CLEAR CHANNEL BROADCAST STATIONS.

In general: Application for increased facilities on a clear channel frequency denied when operation as proposed would be expected to limit the secondary service of the dominant station. Berks Broadcasting Co., et al., 54.

COASTAL HARBOR RADIOTELEPHONE STATIONS.

Need for service established and technical facilities shown to be adequate. New York Telephone Company, et al., 224.

COMMERCIAL SUPPORT FOR BROADCAST STATION.

New broadcast station authorized to be established when it appeared that sufficient commercial support would be available to reasonably insure the continued operation of the proposed station. Bell Broadcasting Company, 90; Roberts-MacNab Company, 510; Roderick, 616; Southwest Broadcasting Company, et al., 630.

Held, Evidence submitted by respondent not sufficient to justify the Commission in concluding that the proposed service area will not be able to commercially support two radio broadcast stations. Atkinson, 137.

Application for new broadcast station denied when no showing was made that business houses, manufacturing concerns, and/or private individuals of the proposed service area would patronize the station. Pierce, et al., 146; Taylor, 281.

Application for authority to move broadcast station from one city to another granted when it was found that insufficient commercial support was available in the city from which it was sought to move. Liberty Broadcasting Company, et al., 213.

Evidence that the church organization to which the license was granted had been unable to operate the station successfully from a commercial standpoint and the income from the station and contributions from the church membership were not sufficient to continue the operation thereof; and that the operation under the new management would be supervised by a business organization capable of successfully managing the affairs of the station and that said station would engage generally in commercial business and present programs of general interest which may be expected to produce an income sufficient for the maintenance of the station, considered by the Commission in approving assignment of a broadcast station license. First Congregational Church of Berkeley, et al., 417.

COMMERCIAL SUPPORT FOR BROADCAST STATION-Continued.

Failure of applicant to make investigations in an attempt to determine the prospects of commercial support considered by the Commission in denying application for new broadcast station. Union Tribune Publishing Company, 451.

Application for new broadcast station denied when there was insufficient evidence of the cost of the proposed station or that it would be self-supporting, nor was there assurance that the applicant would continue the operation of the station if it proved unprofitable. Martin, 461.

Absence of proof that the proposed new station would be supported by local business men considered by the Commission in denying application for new broadcast station. Heaton, 507.

Evidence obtained from a survey made by the applicant to the effect that local business men would patronize the proposed station considered by the Commission in authorizing the establishment of a new broadcast station. Press Democrat Publishing Company, et al., 544.

Application for new broadcast station denied when it did not appear that there was sufficient commercial support in the area proposed to be served to reasonably assure the continued operation of the proposed station. Kidd and Kidd, 644.

Authority to move broadcast station from one city to another granted when it appeared that the station had operated at a loss for several years because of insufficient commercial support and the expected commercial support appeared available in the larger city. Havens, Woodward, Jones, and Wood, et al., 666. COMPETING APPLICATIONS FOR BROADCAST FACILITIES.

Application for new broadcast station denied when the Commission found that public interest, convenience, and necessity would be better served by the grant of a competing application, simultaneously considered. Mason City Broadcast Company, et al., 116; Voice of Longview, et al., 124; Miller, et al., 209; Utah Radio Educational Society, et al., 246; Standiford, et al., 648.

New broadcast station granted when applicant was found to be better qualified to serve public interest, convenience, and necessity than a competing applicant, whose application was simultaneously considered and denied. Mason City Brodcast Company, et al., 116; Voice of Longview, et al., 124; Miller, et al., 209; Utah Radio Educational Society, et al., 246; Standiford, et al., 648. CONSIDERATION.

Transfer of Control of Broadcast Licensee Corporation: Held, consideration for the stock authorized to be transferred was not excessive when it appeared that present and contemplated earnings of station are and will be such as to produce a reasonable return on investment while at the same time affording the public a meritorious service. Western Broadcast Company, 179.

Application for authority to transfer control of licensee corporation granted when proposed consideration for stock was held not to be excessive in view of past expenditures of present stockholders and present earnings of the corporation. Oklahoma Broadcasting Company, Inc., 464.

CONSOLIDATION.

In an acquisition and consolidation case the Commission will consider all factors recognized by the courts for ascertainment of value.

In estimating the depreciation of telephone properties, consideration should

be given to the factors of inadequacy and obsolescence.

Proposed acquisition found to be of advantage to the persons to whom service is to be rendered. Crown Point Telephone Company, et al., 152; Southwestern Associated Telephone Company, et al., 334.