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Folkways Broadcasting Company, Inc. v. Federal Communications Commission, F. L. Crowder T/a Harriman Broadcasting Co., Intervenor
375 F.2d 299
D.C. Cir.
1967
Check Treatment

*1 COMPA- BROADCASTING FOLKWAYS Inc., Appellant, NY, COM-

FEDERAL COMMUNICATIONS MISSION, Appellee, Harriman L. Crowder

F. t/a Co., Intervenor.

No. 19971. Appeals

United Court of States District of Columbia Circuit.

Argued Sept.

Decided Jan.

Tamm, Judge, dissented. Circuit *2 Before Bazelon, Chief Judge,

Fahy Judges. Circuit Tamm, FAHY, Judge: Circuit years ago trading Crowder, F. L. Five Broadcasting Co., Harriman interven- appeal or on this and referred to as Crowder, applied to the Federal Commu- appellee, Commission, nications for new Harriman, standard broadcast Folkways Broadcasting Tennessee. Com- pany, Inc., appellant, is the licensee station, WHBT, AM radio in Harriman. petitioned to Commission application alternatively designate hearing it for a on issues by Folkways. Commission, set forth however, 14, January 1966, on without granted application for permit construction for the station. Two Commissioners dissented and another concurring filed a The latter statement. expressed disapproval of “Carroll” issue adopted previously standards the Com- mission in Missouri-Illinois Co., Reg. 3 Pike & Radio Fischer 2d independently but concluded those standards that WHBT had failed to make prima injury. out a ease of facie question Folkways Our is whether evidentiary hearing entitled presented. of the issues it Folkways’ right de- to such deny, pends petition its support, and data considered with the reply properly of Crowder and other data Commission, require- before met the 309(d) forth in ments set Section 1934.1 Communications Act of This sec- spe- requires petition to contain Kenkel, Washington, C., Mr. John B. D. petitioner’s cific in- show Schroeder, with whom Mr. Arthur H. party, terests as a raise such sub- and to C., Washington, brief, D. questions stantial and material of fact as appellant. evidentiary hearing necessitate Ehrig, Counsel, Mrs. Lenore G. Federal grant enable Commission to find that Commission, Communications with whom Geller, Counsel, Henry Messrs. General Folkways, interest. sta- licensee Conlin, John H. Coun- Associate General competition tion which would with sel, Counsel, Fishman, and William L. party Crowder’s was a This in interest. Commission, Federal Communications disputed. is not appellee. were on the brief Bilger, Washington, Mr. presented Donald E. D. of the issues One C., for Folkways intervenor. is whether made ef amended, 309(d). Stat. § As 47 U.S.C. community knowledge so, extent, and, of the business forts sufficient agreed served, esti tastes, that Crowder’s and desires needs determine served, anticipated first for the mate of revenues Harriman and area to be together year operations, com required the standards established assets, July capital suf mitted release brought “Report ficienty call entitled and Statement *3 evidentiary insist an Policy En Banc Pro the court to Re: Commission FCC, Henry hearing gramming Inquiry.” unn found In which the Commission ecessary.3 U.S.App.D.C. 257, 260, F.2d 112 302 Broadcasters, 194, affirming Suburban trafficking issue —wheth On the under these 30 F.C.C. that we held trafficking engaged has er Crowder “simply wheth standards the authorizations, and wheth of broadcast may require that er Commission grant present would er of its applicant inter demonstrate an earnest opportunity traf another for such create serving community by evi est in a local ficking, public in inconsistent with familiarity dencing particular a its with hearing a terest —we conclude In and an needs effort to meet them.” sup should have held.4 The record been present case states the Commission ports forth the factual set situation now that, judgment, matter of the man “as a as relevant to this issue. survey ner in leaves was made ownership obtained sole Mr. Crowder something desired,” which we to be 5 operated and in 1950 of station WHBT agree; but our the record review of it 1956 station until he sold us leaves unconvinced that Commis Sep- 61,000 In profit dollars. of some sion’s clearance of on this issue granted construc- he tember mind should be set aside. of like We are WDEH, permit for Sweet- misrepresentation, on the related op- water, commenced Tennessee. He fact, or failure to material disclose February init and sold 1955 eration community regarding survey dollars, profit January 57,500 tastes, However, and needs desires. 22,000 approximately dollars.6 though influences, it record this issue granted applied also for and was 1956 he control, does not our on the traf decision WLIV, permit for station construction ficking issue discussed infra2 Livingston, Tennessee, held in which he Appellant fifty interest, per also raised an issue sold cent which he Folkways’ qualifications. responding as to Crowder’s financial in 1964. Considering applicant’s experience present trafficking in the area, including experience, represents proceeding, broadcast Mr. Crowder making indicates that the Commission must be satisfied think required survey prom- applicant’s ability fixed seven letters from all to meet of an organizations during operating expenses charges were inent local citizens including year operations, “com- solicited Crowder’s former the first manager.” eight expenses. mercial A a matter These staff organizations right letters from outside the Act are sat- when the criteria of the community protesting party. business filed with were isfied developed It three Commission. 4. One of the bases for Commissioner letters, though the solicited written Bartley’s of the dissent the refusal organization, of a local the letterhead hearing on this is- to order a organiza- were not official views of the sue. signers tion, also and the of these letters maintained sta- 5. He had an interest disassociated themselves some possible implications tion since 1946. letters. of the pe- figures, brief, mistakenly 6. These taken from 3. The Commission’s deny, part contends, think, so, are on rec- tition based to do seems dis- are not ords puted by Commission and To this was a matter of discretion. grant grant Crowder. not a or not We matter of Commission discretion. he that, forced ill sell health to it arose at all. As to events which begin his interests in WHBT WDEH: did are until 1956 sufficient to “Upon require evidentiary advice probing doctor’s Mr. Crowder re- completely hearing. tired participa- from active industry.” tion in the radio broadcast We also think the Carroll issue However, applied when he for Commis- needs further consideration Com approval sion two sales in mission, is, the issue whether the give though he failed to this reason economics would situation lead Commission asked for a fuller statement degradation of service of his reasons. was not until application granted. In Car suggested. that health reasons were FCC, roll Co. v. 103 U.S. Moreover, “retiring when he was App.D.C. 346, 440, relying 258 F.2d heav completely broadcasting from the radio ily upon FCC v. Bros. Radio Sta Sanders industry,” applying li- was also for a *4 tion, 693, 309 L.Ed. U.S. 60 84 S.Ct. Livingston station, repre- cense for the held we that while economic senting fifty per that he towas be a cent existing ground to an a station not for is partner general manager and the of the denying application, a new basic the station.7 requires charter of the to Commission it public imposes act in the interest. This accept cannot Com The court the duty Commission to determine the a inconsistency mission’s of no conclusion the whether economic effect another representations in these the damage licensee in an area be to would trafficking before the Commission. The destroy incompati service to an extent affecting vitally is a sensitive one public interest, depend ble ing upon the this public represented by the Act interest the problem the facts. The arises Li administered the Commission. protestant, or, case, when a as in this one granted public censes cannot in be in the petitions application who that an be de terest to who seek those them for sale nied, prove offers to reasons that the may rather than a service. There be suggested grant thus the would be detri reconciling rep basis for the inconsistent public sup mental to interest and the prevents resentations in a manner which ports position showing this a that is disqualification Crowder, sub but the enough genuine substantial to create ject hearing. needed examination at a live factual issue. Carroll was decided in There is substance to the of Com dissent Congress 1958. amended the statute in Bartley, expressing missioner view his 1960.9 Thereafter considered petition that WHBT’s to raised problem Operating in anew Southwestern question trafficking, requir serious ing to FCC, U.S.App.D.C. 137, Co. v. 122 138 evidentiary hearing to resolve n.2, n.2, 351 F.2d 835 decided response matter.8 re fails to 1965, stating legislation, that new Crowder, solve it. fact that as the The' states, operated deny, petition station to created the device selling WHBT from to 1956 before advance of hear which must be filed ing it question; and, does not indeed, answer the it clear that made question trafficking petition is not whether need if be held prior intent specific but arose to “contain failed supplemental 7. In his statement on an “as-needed basis.” to be an advisor present proceeding present application Crowder stated also In.the partner manager”; “general because his the WLIV sta- will he be a claims inexperienced urged personal tion was he consented it his but this time expertise supervisory position “gen- participation hold a termed and the venture manager.” granting eral He now states that considered are factors be wholly descriptive,” application. title was “not for he capacity during was to in this serve 4, supra. 8. note See stages preparatory application. of the broadcasting 889, amending Once the station was § Stat. U.S.C. Judge ergy. Bazelon’s dissent peti- See Chief that the of fact sufficient show delay factor loses in Southwestern. party is a in interest and tioner good significance pres- deal in grant application be would light long unex- ent case in prima pub- facie with [the inconsistent plained delay proceedings unrelat- interest, and neces- lic convenience * * hearing.11 309(d) ed desire for a sity] U.S.C. § specificity, toAs adverse economic (1). If are no “there substantial * * * impact an exist- questions new material of fact ing degree im- one grant pact detrimental, public all, interest] consistent with [the ” * ** subject interest, are exact calcula- petition not shall denied hearing. grant of these the licensee. Assessment and the made without * * ordinarily judg- effects is an informed 309(d) (2). 47 U.S.C. [But] § having quality prophecy. ment some if “a substantial material might knowledge of At times presented there be a of fact is or the Commission specific financial loss and detri- unable to make the reason is consequence programming, [public finding,” mental but applica- interest] hearing may nearing we think a is- Carroll tion shall be on the set for pre-knowledge limited to a case in which raised. sues exact economics of the situation pointed We out Southwestern necessarily Requiring available. such temptation existing “the to an licensee *5 precision would eliminate doctrine the postpone long the advent practical hear- matter. If the Carroll by competition special of care warrants ing continue, adjustment is to then some scrutiny the Commission in re the required. allega- specificity is The hearing quests for in Carroll circum 309(d) tions to in must referred Section stances.” But held that we nevertheless require not be construed to such exact- papers the with the Commission filed practically impossible. ness as is and that case materi “raised substantial al issues fact which should have been placed Folkways and intervenor exposed give-and-take of an evi the good deal before the dentiary hearing.” supra Southwestern, subject economic data at 351 F.2d at 837.10 general area12 third in the same station WHBT, subsidiary There are several would lead to degradation considerations, con, pro lead to and which arise which in turn would therefore, administering and, area of this In of service in Harriman Act. public order to interest. serve the inconsistent with basic interest public defending in court its denial the Commission is entitled to allega appel sist states more than conclusional the Commission easily which, position be, accepted, principally, tions and lant’s made unjustified (1) disregarding delay consump entail and Commission erred engage in a rate of the Commission’s time en- threat and “Crowder’s Subsequent prior past tice, decisions to Carroll in the Commission’s 10. required, otherwise, Southwestern Television, KGMO Radio- that more would be we decided FCC, U.S.App. petition not be We Inc. should denied.” 1, 3, 920, 922, holding D.C. case to the Commission. F.2d remanded the denying a the decision of the Commission filed Octo- Intervenor’s was petition because the reconsideration granted January 4, 1961, ber showing comply did not of the licensee requirements Carroll with the stand County WHBT, Commission, ards, 12. In Roane addition as construed station, WKRH, operat- although because, also another “it has was erroneous ing Rockwood, Tennessee, authority within the to re Commission’s quire appellant ten miles Harriman. more than information * * * gave appellant had no no- since war,” insisting (2) original requiring firmed his crepancies statement. dis- showing injury. among too detailed a We within and af- these think torily relationships the Commission has not satisfac- fidavits and the close be- parties met criticisms. As to al- tween these dem- the affiants and legedly war, hearing, opportunity rate threatened Commis- onstrate that a simply sion states would offer show further evidence and cross-ex- advertising proposed witnesses, amine ing needful in was resolv- substantially rates would be Folkways’ present lower than rate war issue. This substantial though rates. issue Commis- was left unresolved Crow- says, sug- sion proposed no der evidence to “There contended his rates were gest fifty per has threatened to en- fact than cent lower those of gage competitive practice unfair WHBT. likely or that he But would do so.” considering issue, Carroll subject. was taken on the evidence opinion Commission’s sets forth Folk- yet And threatened rate ways’ allegations that addition of Folkways war to drive out of business inadequate another station mean would fully raised which if WHBT, revenues for a reduction of its posed pub- true a substantial staff, curtailment service lic interest under the Carroll doctrine. programs community activities personnel, whereas no as- there is Folkways’ petition to was accom- surance the Crowder station would be Willis, panied by Mr. the affidavit of a replace able to lost. The service petition opposition and Crowder’s to this showing Folkways respects in these accompanied the counter-affida- inadequate though partially, held Scarbrough. vit of a af- Mr. two These entirely, because advertising respectively fiants opportunity When afforded an to show manager salesman and of a station in what advertisers would shift their ad- Oneida, appears Tennessee. vertising station, to the new WHBT riding together they discussed work *6 ‘speculate’ declined to on the contin- advertising problems frequently gency. WHBT asserts that the estab- among disparity dwelt on the of rates lishment of another station would re- many area Willis’ affidavit at- stations. ‘significant sult ain reduction de- or by Scarbrough tests that that he was told service, struction’ of but does not indi- charge fifty planned per Crowder rates signifi- cate the extent or nature of the charged by cent lower than those WHBT * * * cant reduction or destruction. acquire in order to WHBT’s commercial appropriate showing, Absent an includ- Furthermore, advertisers. “in said dis- ing showing specific a relation- Scarborough cussion Mr. indicated that ship any between assumed losses in and Mr. Crowder understood that this particu- revenue to the withdrawal of would out of ‘drive WHBT business’ programs service, lar program or Scarborough which Mr. and Mr. Crowder Commission cannot conclude that glad happen.” would be to have On the WHBT has raised issue which Scarbrough’s hand, affidavit hearing. require would a “complete brands Willis’ a statement Scarbrough having requirement Such a falsehood.” admits seems us to come knowledge many plans, of of too Crowder’s close nullification of the Car- knowledge having pro- but roll denies doctrine of which we have above posed require specific He warned. structure. states that Wil- To rate a advance attempted showing particular program lis information from to draw would him, completely “I be but denied and abso- abandoned should the lutely ensue talk about of Mr. would would not to force de- advance plans I knew cision about.” where some latitude should be left management. subsequent In a Willis reaf- affidavit The is wheth- degradation Com- to the er reverse and remand this case there us, I necessary Upon resulting the record before service mission. program programs affirm the Commission. abandonment of a or would range programs within a some

which would have to be abandoned. Ex- I position hearing the matter majority opinion concludes simply should not be denied because a held a hear- have Commission should petitioner specified pro- has not the exact trafficking ing Traffick- issue. on the gram alleged loss would cause context, de- ing, of art in this term So, too, abandoned. as to loss acquisition notes, essentially, judg- advertisers. Here reasonable rather than for licenses resale broadcast ment reached, the licensee must be operation. practice of traffick- supported in its reasonableness regarded by consistently ing been has strong showing, only but it need be such contrary pub- being judgment, not an exact of facts— detail of Part amendment lic interest. See example, knowledge necessarily Rules, Pike the Commission’s specific advertising shifts. determining Fischer R.R. 1503. The court does not relish the exist, trafficking conditions devising task of different standards from timing, intention, Commission considers adopted by those the Commission. Un Broadcasting Corp. price (Atlantic Coast due interference the court is itself Fischer, R.R. Charleston), 22 Pike contrary public interest, but we history applicant’s entire 1045 and the suggest respectfully the Commission acquisition and resale. radio license ground seek which the CarroU (Franklin Broadcasting Co., 22 Pike can doctrine stand which will avoid un necessary 880). consuming hearings and time Fischer R.R. but which at the same time will not make applicant-inter- Crowder, L. F. right to a practically un part had a proceedings, venor in these attainable. We decide the rea WHBT ownership in Radio Station given by sons the Commission for the re owner sole early and became as 1946 jection of the CarroU are not sat the station He sold that station isfactory. having in whole it owned after By reason of the data before the Com- years. part for ten alleged mission on the threat of a rate WDEH of Radio Station the sole owner war, and possibility of unfair Prior years from 1954 for two *7 competition, ruinous think an evi- only other application, his present to his dentiary CarroU required. broadcasting operation was interest in respects the CarroU should issue ownership fifty of WLIV per cent consistently reconsidered with the then, follows, over to 1964. expressed views above and a further evi- has eighteen-year period, Crowder this dentiary hearing petitioner afforded radio three in proprietary interest had upon such reconsideration as we indicate years, one for for 10 one stations: the Commission is unable resolve the years. There is years for 2 and one present matter on the Moreover, record. ac- that Crowder in evidence the previously stated, evidentiary hear- for the any stations quired of these one ing on trafficking the required. issue is & n selling profit; nor purpose it at The case is reversed and any party remanded by any contention there proceedings further any price not inconsistent resale proceedings opinion. with this exorbitant stations of Crowder’s fair current the then at variance with Judge TAMM, (dissenting): Circuit holdings. con- market value respectfully I Com- sistency of the dissent from those con- of the trafficking my clusions of upon they cases policies brethren in mission’s sion, applying case in in the current in factual situation license for by operation Commission action in illustrated of a radio station in Liv- Television, Inc., ingston, Tennessee, Versluis Radio and that he would abe Radio, 1123; fifty per general partner Pike and R.R. Good Fischer cent and man- 1036; ager Inc., inconsistency and Fischer R.R. Pike of the station. The Broadcasters, allegedly serving general Laramie 20 Pike relates to his agree manager Although I R.R. 423. Fischer new radio station in Liv- trafficking ingston majority disposing issue interests while his affecting vitally “is sensitive one in Harriman and stations Sweetwater nevertheless, public interest,” I, upon cannot reason of ill health. Called case, Commission, facts in viewed conclude this as a result of light rulings, challenge, enlarge upon question, in the of Commission this trafficking requiring Crowder informa- issue submitted additional suggested by substance, is even the record. tion to Commission. replied Crowder to the Commission that “general manager” the term II “wholly descriptive” very of the limited express in their My concern brethren activity actually contemplated he trafficking rel- of the consideration performed. explained Crowder that be- representa- “inconsistent to the ative brother-in-law, cause his desired reasons as to the tions” made Crowder go broadcasting business, he, into the sale, interests of his for his Crowder, agreed supervisory in “a act they WDEH WHBT and Stations capacity preparatory stages accept the Commis- therefore decline application, and until the station went on already have sion’s conclusion. As I air, point and after that he time out, ownership in- pointed Crowder’s would act advisor an as- spanned a radio stations terests in three needed basis.” his Crowder affirmed years. nearly twenty Each period of fifty per station, ownership cent relating purchase or transaction recounted that he recommended and approved been had sale those interests attorneys engineers, purchased hired including Commission, equipment, “and the like.” Crowder stat- appellant’s present that, ed station. When to the Commission in- sale after his began itial activities when the station appellant question, the Com- raised this broadcasting, he was not active in supple- mission called Crowder capacity other than as an advisor to his pleading respect, and ment his accept- brother-in-law. The Commission Upon supplemented did so. explanations they ed these and found that alleged record, the found the were not inconsistent with informa- apparent than inconsistencies “more tion furnished the Commission in 1956. Although Crowder, real.” stat- specific allegation Absent some of fac- inter- ed as his reason for the sale of his inaccuracy matters, tual in these est Stations WHBL and WDEH Commission’s action seems to to be me quit “wanted the broadcast busi- completely reasonable, within the orbit Sweetwater,” ness in Harriman and authority, lacking any *8 its semblance Commission found in that his statement requiring justifying of a situation proceedings the current and ill health hearing. Appraised realistically, I think reason not for these sales the entire record of “inconsist- these charge so of inconsistent as to warrant a encies” is a mountainous molehill of triv- contrary misrepresentation. me, To iality successfully injected pro- into the capricious. conclusion would be ceedings solely purpose for the effec- of tuating delay alleged inconsistency Commission’s and relates disposition to Crowder’s statement to Commis- court’s of the case. competition applicant, from III recognition public. serve It their majority record finds principles of concluded in these that we issue,”1 est, id “Carroll Carroll, supra, that: situation the economics of the granting of affected existing so “economic to an sta- deg- applicant a license to as to lead to a tion, while not in and of itself a mat- public, radation of to the service moment, important ter becomes for remands this issue to the Commission spells when on the it diminution facts I is “further consideration.” think it or destruction service.” 258 F.2d well recall of life the economic facts (Emphasis supplied.) at 443. application for a when an exist Recognizing, however, potential competition new radio station threatens weapon delay presented for that Carroll existing to the revenue of an station. existing by compe- stations threatened Operating We observed in Southwestern potential license, tition from a new Comm’n, Co. v. Federal Communications cautioned: 835, U.S.App.D.C. 137, 834, 351 F.2d (1965), opinion temptation n.2 “This that to be construed or “the applied existing postpone long as licensee to as a mandate the Commis- competition sion to hear the advent of war- and decide the economic special every grant. rants care effects of the Commission new license meaning. scrutiny that, requests has no such for We hold fear, existing is, when an Carroll There I offers circumstances.” licensee prove tendency that to extend the doctrine of the the economic effect beyond expressed Carroll far another station case would be detrimental teaching. Recalling interest, was bot- Carroll Supreme opinion opportunity pres- should tomed afford an Court’s for * * proof entation of such Federal Comm’n Ibid. Communications (Emphasis Station, supplied.) Sanders Bros. Radio U.S. (1940), 60 S.Ct. 84 L.Ed. 869 This is the standard we created for the appears important emphasize it guidance of the Commission. in that case on of economic in- the issue Appellant’s initial of eco- jury the Court said: .injury inability nomic because of the resulting “We hold in- community support covered anoth- jury not, to a rival in and station er supplemented radio station were itself, apart from considerations additional data furnished at the Com- public convenience, interest, or ne- request specific mission’s factual cessity, petitioner an element point. by way data, data on this These (Federal Commis- Communications enumeration, of illustration and not of sion) weigh must and as to which it alleged, alia, county inter where findings, passing must make on an applicant’s radio station would be located broadcasting license.” operates where U.S., S.Ct., (Em- at 696. period declining economy. was in a phasis supplied). However, other data before the Commis- Thereafter, Supreme pointed population figures, per- sion showed that Court out, course, income, deposits, sonal the economic effect bank and retail competition might increasing sales have a “vital and im- increased and were over significant portant bearing ability periods. upon the The Commission applicant adequately public.” appel- also to serve his attested to a rise equally applicable $65,019.00 This statement lant’s broadcast income ability existing stations, during $80,476.00 in 1961 to faced *9 Broadcasting Comm’n, U.S.App.D.C. Carroll Co. v. Federal Communications (1958). F.2d 440 years appellant’s oper- pellant, any which station was nor was estimate of the cost employees. Ap- public nine ated with a staff of of service activities the sta- pellant furnished, furnished Commission with other than an of estimate money might of to 425 estimates the existence of 400 the sums of have which potential in income-producing businesses which clients been were earned if time advertising area, public radio which had local of been substituted for the serv- among appellant’s 278 were ac- oppor- numbered ice announcements. Afforded two-year appel- tunity period. per- for a If counts to indicate the nature of the figures accepted by changes lant’s the Com- appel- were sonnel or curtailment that mission, busi- there remained some 150 lant would forced to make of because operations potential blight resulting ness available economic from inter- applicant. impact operation, of clients figures of these venor’s the Commission was however, significant, merely in Folkways’ is more advised that staff Folkways’ view of own statement would have to be reduced. 125 of all of these establish- charge appellant At no time did regularly ments on station advertise applicant unwilling would be unable or WHBT. proposed public pro- fulfill its service Appellant grams. estimated the available advertising of amount revenue for radio Intervenor, course, data submitted being approxi- in the Harriman area as support application of its which was mately $125,000.00 year. As indicated justify intended to the issuance of its heretofore, Folkways reve- license, appellant and of course submit- year highest nues for in- its ted material other than that recounted record, approxi- come shown justification demand heretofore mately $80,000.00; by appel- so there is— for a on the issue. Ob- Carroll figures $45,000.00 lant’s own ad- —some viously, my appellant’s enumeration of potential ditional radio revenue some sampling claims is confined to broad station in Harriman. Folkways’ pleadings il- intended to Although opportunity my afforded to lustrate the factual basis for con- required, clusion that a not demonstrate to the Commissionwhich ad- justified, or even the record before the vertisers on station would Commission, because, simply, ap- quite applicant’s transfer their accounts pellant showing potential made no station, appellant “speculate” declined to public through interest loss contingency. Certainly, this was degradation programming service significant a most and essential element applicant’s license issued. measuring impact 309(d), permits Section Title U.S.C. upon appellant’s new station future abil- grants the Commission to make of licens- ity service; adequate public to render hearing, es without after consideration yet the Commission in- was furnished no plead- of the ings, upon relevant all Appellant, formation whatsoever. finding that there are general terms, alleged most es- questions substantial outstanding material of fact tablishment of intervenor’s station would grant and that “significant result in a or de- reduction public interest. This section of Com- original peti- struction of service.” In its munications Act amended ap- application, tion to intervenor’s Congress intention pellant Folkways public identified four requiring: programs might cur- service programs substantially stronger showing tailed. One only these is carried “a greater year, probative frequency once value than is now necessary post grant broadcast a second is even record- the case of a protest. allegation ed. No schedule of curtailment of of ultimate programs general by ap- conclusionary service facts was furnished or mere

309 advertising belief, charging allegations station from lower information Supreme general competitor’s. supported by is The affidavits as rates than recognized Sanders, supra, “that possible protests not Court in is suf- now broadcasting Cong., one of free 1st the field ficient.” S.R. 86th S.Ct., competition.” U.S., at 60 Sess. at 697. Capitol Federal Co. v. blurred; U.S.App. then, Comm’n, 116 picture, Communications becomes The (1963), we held F.2d 402 obscured; D.C. contam- the record the required in the ab majority fear, of the inated; and, I the sence of substantial factual filing deceived, by the coun- panel the which, true, prima facie establish a if majority affidavits described ter application. the case for denial the gossip question- opinion. Back fence Operating Case, supra, we Southwestern admissability of law a court able stated that: lofty of “evidence” level the elevated to form. “Congress by presentation affidavit in the FCC intended vest employ- departed other’s the affiant large One time-con- discretion to avoid filing inter- subsequent the ment suming hearings in field this whenever application and entered * * venor’s license F.2d, *.” 351 at 835. appellant. The coun- employment of My conclusion the record on the affiliation affiant had some business ter by succinctly expressed Carroll issue is intervenor-ap- Crowder, the L. with F. our observation in Radio-Tele KGMO apparently plicant, to serve—at vision, Inc. v. Federal Communications staff of Crow- rumor—on the least Commission, U.S.App.D.C. 1, F. granted. license were station if der’s (1964), 2d a somewhat each cross-label label and affiants The record, similar “it is within liars, unequivocal a conclusion authority require more Commission’s any- capricious arbitrary neither nor gave.” appellant information than grasp of the obvious. a minimal one with majority opinion Recognizing impossibility, as well The holds that undesirability, attempting satisfactorily eval- Commission to appear- “has not met” credibility testimony contention that “Crowder’s uate the engage presented conflicting affidavits, ing factual threat to in rate war” hearing. here, however, two question requiring disclosed a factual situation Applicant obviously persons motivated filed with the Commission —each gain willing listing at- proposed personal rate card the rates reasons — charged making advertising of oral state- new test or anyone but presence of radio station if license out of the were issued. ments is, substantially resulting proposed The The situation rates themselves. were charged which, being consequently, lower than for sim- one those affidavits, Folkways. by appellant The ilar time issue is created proposed rates, however, required, in order identical were Commission appellant, find with the which Crowder had to decide in favor rates alleged by charged successfully operat- Willis when had conversations he Livingston, despite true, the vehement ed Radio Tennessee, Station WLIV fact Scarbrough. comparable and were those denials of charged further, he, find, fact Crowder, that the had when would have appellant successfully operated employment Radio Station Willis’ filing application WHBT, station, appellant’s present after throughout Harriman, (apparently) cur- point, To entire Tennessee. charge certainly proceedings affect the cred- supports did not no rent testimony. ibility regula- members rate war. his There is statute find prohibits have to tion cited a radio of the Commission would to us which *11 judges fact, credibility BROWN, Jr., that the Appellant, Rhozier T. Willis, affiant, one was not affected v. employment the termination of his America, UNITED STATES Scarbrough, conversely re- but that this Appellee. reliability lationship influenced the IRBY, Appellant, Scarbrough’s testimony. John D. v. course, inconceivable, It is that this America, UNITED STATES of permit court would the determination Appellee. by the contested of material fact issues administrative Commission—or JONES, Appellant, L. Robert solely agency —without conflicting affidavits.2 basis America, UNITED STATES of however, Appellee. believe, I do not form affidavit utilization of the Nos. mere 19890-19892. per conflicting se present statements Appeals United States Court of automatically is- a controverted creates District of Columbia Circuit. my view, the sue material fact. Argued 28, Sept. 1966. did, should, as the court 30, Decided Dec. 1966. analysis of the affidavits amake careful light of their them evaluate Rehearing Petition for En Banc effect contents and the testimony 13, Denied Feb. 1967. ques- upon the of the affiants Certiorari Denied June 1967. If the Commission. tion to be decided See 87 S.Ct. present factual statements the affidavits reason- evidence and relevant of material ably they knowledge, affiants’ within the

obviously the affiants demand that

exposed examination test to the Com- insure

cross-examination to reliability facts ex-

mission the pressed. however, hand, I On the unwilling completely hold con- am by any

flicting affidavits, reason- name appraisal result in a can

able

calling when contest between the affiants in oral hear-

confronted each other

ing, of substance meet the standard may require as

which the Commission

constituting “specific of fact” meaning U.S.C., within the Sec. Edgerton, Judge, Senior Circuit dis- (1). 309(d) sented. dissenting, I the Com- conclude legally properly, acted mission finding it, without the record before grant to intervenor- that the applicant permit to construct new public in- station would radio serve necessity.

terest, convenience Washington (1950); Bonnett, Compare U.S.App.D.C. Terminal Minor v. Vale v. U.S.App.D.C. (1951). Co., F.2d 10 191 F.2d 334

Case Details

Case Name: Folkways Broadcasting Company, Inc. v. Federal Communications Commission, F. L. Crowder T/a Harriman Broadcasting Co., Intervenor
Court Name: Court of Appeals for the D.C. Circuit
Date Published: Jan 5, 1967
Citation: 375 F.2d 299
Docket Number: 19971_1
Court Abbreviation: D.C. Cir.
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