History
  • No items yet
midpage
National Broadcasting Co. v. Federal Communications Commission
132 F.2d 545
D.C. Cir.
1943
Check Treatment

*1 v. CO., Inc., BROADCASTING NATIONAL COM COMMUNICATIONS FEDERAL Inc., CO., (MATHESON RADIO MISSION Intervenors). al., et

No. 7933. Appeals Court

United States of Columbia. District Sept. 1942. Reargument Decided On 18, 1943. Jan. Granted Certiorari

ofWrit Patrick, Mr. D. M. with whom Mr. Phil- 526, L.Ed.-. 63 S.Ct. See ip Hennessey, Jr., both Washington, J. C.,D. brief, on appellant. Taylor, Mr. Counsel, Telford General Commission, Federal Communications wit h Harris, whom Thomas E. Assistant Gener Counsel, al Harry Messrs. M. Plotkin Meyer, and Daniel W. all Washington, C., Counsel, D. brief, were on the for the Federal Commission. Messrs. Denny, Charles Jr., R. and Bene Cottone, dict P. Washington, C., both of D. appearances also entered for the Federal Communications Commission. Pierson, Mr. W. Theodore with whom Haley, Mr. Andrew ton, Washing- G. both of C., brief, D. for Matheson Company, Inc., Radio Intervenor. Messrs. Arthur H. Schroeder and Geo. Sutton, C., O. both of Washington, D. filed a brief on behalf of Berks Broadcasting Company, Intervenor. GRONER, Justice, Before Chief MILLER, STEPHENS, VINSON, EDG- ERTON, RUTLEDGE, Associate Jus- tices. RUTLEDGE, Associate Justice. appeal is from an of the Com- order appli- April entered mission Inc.) op- (Matheson Company, cant Radio Boston, WHDH at Massa- Station erates chusetts, Appel- is intervenor here. Denver, Col- operates KOA lant Station kc, orado, frequency, same upon the American 850 kc under the North Re- now Agreement. Broadcasting The or- gional in power authorized increases and time der ag- claims it for WHDH. interests grieved and its af- Hence it fected the order. both asserts appeal and one to Commission, which denies both. The whether, principal questions are therefore (cid:127) made, showing (1) appellant has on the appeal; (2) standing to arbitrarily erroneously in refusing acted permit it intervene as a proceedings. administrative *2 5á6 area; station, operating degrading Station status of Class I KOA is a kw KOA from channel re- 50 a clear station channel with a clear since on it; though classifying and, in effect not By classification

power.1 of this virtue terms, re- operating modifying fre its in these only on its license was the station below, spects. appears As quency night prior order also now at question. changes only had been asserts these affected its 1930 WHDH From substantially adversely, daytime until and but 1 kw interests operating station upon had like effect sunset time. order modified Denver The secondary within operation depriving for unlimit listeners permit its license to jeop- power. service area of its service also in No formal and and with kw ed time ardizing frequency status of un- made in KOA’s this or literal modification Regional Broad- of der the North American license modifying but Agreement.3 casting interference created electrical aft WHDH ¿OA’s secondary service area. er sunset however, injuries both The substantive Roughly region lying public, are set forth and to or more east Denver. To ac 700 miles substantive redress primarily not to secure complish change, this the Commission had appeal, (1) appel- in this to establish but 850, frequency to transfer on which appeal; (2) standing lant’s and to show operate, (a) both stations from subdivision had a intervene (b) its to subdivision of Section 3.25 of which it the Commission’s Accordingly provided rules.2 the order deprived arbitrarily has either or er- this transfer. again roneously. The case therefore raises injury appel- concerning The substantive the troublesome appeal complains entitled from the Commission’s consisted therefore in cre- lant ating showing, and what and additional electrical inter- new orders ference, provisions of the in this affecting secondary its service nebulous statute 090, 1,130, 1,150, 1,170 1,190 kilo- and 3.25 of the Under Sections 3.22 cycles. power Regulations, I stations Class Rules concerning following, on provisions these channels shall not than clear be less 50 kw. stations are made: channel “(b) poioer To standard each the channels below Glasses “§ 3.22 assigned Class I and there Class (a) Glass I station. broadcast stations — 680, 710, 970, 1,020, II stations: I a dominant station station’ is A ‘Class 1,040, 1,060, designed 1,050, 1,080, 1,- 1,100, 1,110, operating channel and on clear secondary 140, 1,160, 1,180, 1,460, 1,470, 1,480, primary service render 1,490 kilocycles.” Fed.Reg. relatively (Supp. at Code area and over an extended 1939) 2742, long primary service area 2744. Its distances. objectionable interference from is free supra. See note Various conten and ad- on the same from stations change, secondary tions with reference to this made jacent channels, serv- being “legislative” policy, interference, except one in or from ice area free “judicial” character, adjacent channel, made hear on the stations same, improper ing" official, e., i. before channel stations and from etc., herein, examiner, designation are not considered channel with the accordance important ‘Engi- more since other and issues with the or in accordance in neering 3.25 § dispose appeal. page are sufficient Allocation’ Standards treaty 8(d) B, II power of Part of this operating Par. shall be not period provides: “If within the of this than 50 kw kw nor more than 10 less country Agreement power to which a clear (a) limi- (see further 3.25 § also assigned shall channel has been have tation).” the channel not in the channels; made use “jj class Olear 3.25 following frequencies described not to the ex manner above II. by- provisions designated tent chan- clear tabulation- country Agreement, such shall be con assigned the classes for use nels and por having relinquished given: sidered stations as which it used “(a) below of the channels To each expiration agreement, assigned at the I Class one will be there assigned shall thereto other countries or more there fit, right, operating see if with have limited time II stations Class privileges from only: 660, 670, unused daytime draw country reassign 800, 810, 820, them to and to 750, 760, 770, 720, 740, 1,- 1,070, 980, 1,000, countries.” interested 830, 850, 860, 870, all of difficult, like- perhaps financially be able respect;4 hurt will equally and the ly appeal. who, will anyone, they probably It is true inquiry, more unsettled proceed- necessary intervene as in its financial resources others, litigation. ings granting, modifying follow that denying *3 adversely though who equally be affected cloudy provisions license under the financially, relating willing will be nor able to these neither matters. appeal. to Appeal contrary assumption ignores Right I. The broadcasting facts that is not exclu- radio appeal. standing has sively a matter of financial business ag upon “person The statute confers this gain, public it is the grieved whose interests are private primarily at right, which is Fed (b) (2). 402 affected.” Section Unfortunately, appeal. stake v. Communications Sanders eral enterprise Comm. taken over commercial has 1940, 470, Station, 309 U.S. Radio Brothers Unfortunately, share of field. lion’s 869, 1037, 642, 693, 698, 60 84 L.Ed. S.Ct. becatlse, infancy, when radio was its Supreme held that the licensee Court many persons hoped work that much of its likely competing be finan religious educational, be done would appeal. cially injured qualifies It went institutions, eleemosynary more than Congress "may further and asserted that permitted. Notwithstanding event has opinion likely that one to be have been of policy which has so favored commer- injured by the license financially issue of a operators, cial there is a considerable vol- person a suffi only having be the broadcasting. of noncommercial ume bring cient interest attention place through supported takes stations appellate court errors ac of law in the churches, by advertising “plugs,” the li granting tion of the Commission in universities, colleges, charitable founda- “Financially” (Italics supplied.) cense.” profit-mak- tions and others no opinion was inserted amendment of the hope ing Many revenues. still after decision was handed down. first apparently evils inherent in commercial guarded not follow that broadcasting yet may larger bring about a speculative injury makes dictum economic frequencies allocation of whose licensees appeal, the sole criterion of status objects primarily are not making and WHDH contend. The money. only involved Sanders case on facts its appeals financially Limiting injury. financial The court held that suf practical injured would have effect Though suggested possible ficient. denying nonprofit-seeking them to broad- insufficiency injury, of other kinds of Conceivably, very casters. instanc- rare question concerning them was before it. es, operators could such show financial in- The decision therefore cannot be taken as obviously they jury. But could not so do deciding such an issue. which circumstances commercial frequently strong why There are reasons able dictum most to dem- stations accepted possible should not be incidence. The view as either or onstrate stating forecasting accepted the law. can Nothing stat- these stations cannot appeal specifies only showing ute when some action Com- injury practical destroy- financial as the effect mission exclusive basis to has hypotheses appeal. capital Nor are the tenable investment. Such a view sort, injury only that such is the be consistent with sub- would not kind, likely stantial occur or that interest and is the foundation 4 presented Comm., 1939, here Federal Communications v. 788; Supreme App.D.C. 265, Court 105 F.2d Pitts and in the numerous 70 Supply burgh g., Sanders Bros. Radio House E. Radio Sta- v. Federal cases. Comm., Comm., 1938, App. 69 Federal Communications Communications tion v. App.D.C. 297, 303; 321, 22, 1939, 98 F.2d Red River Broad F.2d D.C. casting grounds, 1940, Co. v. Federal Communications 309 U.S. reversed App.D.C. 642, 693, Comm., 1938, 1, 869, 470, 98 F.2d 84 L.Ed. 60 S.Ct. Inc., 282, 1938, 1037; WOKO, denied, certiorari 305 U.S. Federal Communi- v. Comm., 625, 400; 1940, App.D.C. 228, L.Ed. Pulitzer cations 59 S.Ct. 665; Network, Inc., Communications 109 F.2d Yankee v. Pub. Co. v. Federal App.D.C. Comm., Comm., F.2d Federal Communications App.D.C. 212; 11, 107 F.2d Stuart

5á8 primarily ondary service to total obliteration areas broadcasting and

of all designed in primary Notwithstanding field. appeal broadcaster’s commercial view,7 contrary apparently protect. Federal Station, su- Radio the latter effect would than a to be more Bros. Sanders Comm. v. pub- appeal, whether or not likely utilize the sufficient for to for pra. The latter showing injury could be protecting his financial vehicle lic interest as a Likewise, end, that made. at the it seems tentative private standing, however in- doubtful that an amount of New business infinitesimal legal status. may be public new electrical create the defense interference rush to stitutions appeal. standing affected in they are not weal when operators, way. As between private therefore, Presumably the Sand- decision in broad- noncommercial and the Supreme ers case the intended Court *4 knight held caster, latter cannot be something injury financial be the more than nominal or must to unwilling battle unworthy, unable or highly speculative. appellate good lists of general opin- It seems not unreasonable to read the to intention Congress had no litigation. requiring by implication that there ion ap- nonprofit taking from stations exclude peals, probable injury of char- be a substantial practical ef- absolutely inor either way seems by acter. much of limitation So showing appeal by if can And fect necessary prevent vindication to so can injury, also than financial other ap- mass turning interest from into operators. commercial industry result- peals by large, with injury however ing hopeless clogging of economic of administrative Absence Likewise, presence of suf- process by judicial amount to review. interference, injury. Appellant hardly asserts neces- ficient enough electrical sary it is championship by creates electrical appellate that the order secure to now every This affected in interference. broadcaster be apparent position denies, only in reversal of its remote and insubstantial manner. interference, decision.5 with- the Sanders It out a that electrical prior to follows interference, regard- showing injury, that of financial argues electrical effect, appeal. create But standing amount creates to of sufficient less points out support purpose this it there be a appeal for this must reasonable of To regulation, in- will And possibility occasion substantial. the whole that that license, held, from appear, of arises from cluding feature must we have this frequencies appeal and number of and statement rea- the limited the notice of of cause, Network, Inc., electrical interference sons. Yankee v. Federal chaos cause,6 Comm., 1939, App.D.C. there were au- did indeed Communications power allo- thority vested with of F.2d 212. police. cation sufficiently case the notice dis- however, necessary, go appealable so It states that closes interest. appellant. present stage appellant aggrieved In the and its interests are far with radio, very changes, by few either fre- its peti- of order power, denial quency or can without reaffirmance made on creating degree rehearing; interfer- some electrical tion for sets forth detail the range steps from minute and nature before ence. interruption Commission; states, among practically harmless with re- rea- very upon, occasional listeners in sec- sons relied that the order: mote controversy case, pre- in that Part Federal Com- concerning viously, 402(b) (2) (1940) mission whether with reference financial was being injury apparently position sufficient, was position injury, injury whether or not result financial the Commission’s interference, electrical interference the most from electrical is suf from necessarily Congress appeal enacting means that had in mind ficient interference financial electrical without section. regardless injury, of the extent or effect Prior Radio Act of 1927 and interference, following would be no basis the decision in United States v. Generally, D.C.N.D.Ill.1926, appeal. course, Corp., extensive Radio Zenith injury. Attorney financial would cause and the General’s interference F.2d Ops. Att’y opinion, (1926) not clear this would be true of it is Gen. 126. See Attorney necessarily, perhaps, Monograph nonprofit stations General’s always Procedure, in other cases. on Administration Committee appellant, positions on taken modifica- in a substantial “(a) Results * * * hand, that such a arises by appellant held license proc- Fifth Amendment as matter opportunity an having afforded it without law, ess (b) required heard WHDH, other, Congress has of 1934.” Act the Communications discretion absolute former (Italics supplied) inhibits nothing in the Constitution “(b) change in class Results in a or limits. * ** frequency character of the with- ap- right of existence of a is said that out consent or Sec- peal presupposes intervene. (f).” tion 303 expressly provide. But does not so statute in “(c) degradation Results in a of service conclusion, for reasons view our (850 prejudi- on 830 kc which will be kc) stated, entitled priority rights cial of the United intervene, necessary is not decide Paragraph States on this channel under some unusual circumstance one B 8 (d) Part II North American party might not entitled to become a Regional Broadcasting Agreement without peal. affording appellant hand, On the Commission’s heard on its own behalf and on behalf *5 argument has untenable that the listeners it serves.” no to be heard because has vest- no “(d) against Results in a discrimination frequency, ed or in license its service to rural in order to fur- listeners thereunder, Federal or status Communica- nish additional service residents tions Comm. v. Sanders Bros. Sta- Radio City of Boston and as such is violative tion, supra, empowers or because the statute requirements 307 (b) Section regula- the Commission to make rules Act of 1934.” tions, 154 (i), “conduct its assigned Other reasons include asserted- proceedings in such manner as will best ly improper procedures changing Com- dispatch conduce the proper of business policy, mission appli- failure to return justice.” and to ends of Section 154 rules, required by cation as amendment fallacy (j). The that one no who has notice, improper of the rules under insuffi- proce- has vested therefore ciency support of the evidence de- protections dural in relation to the more cision, hearing according denial of to due rights, privileges pos- tenuous sesses.8 Whatever its or status he law, process of etc. label, proper “qual- face, therefore, charg- On its the notice “status,” “privilege,” right,” ified “li- substantially es order modified censee,” appellant acquired something of KOA, changed license the class and by value virtue of and the stat- its license frequency, character of its degraded the important. ute. The label is that The fact station’s service under North American statutory has fulfilled condi- Agreement; jeopardized thereby not advantag- tions and statutory has received appellant’s priority rights but the of es, protections important. status and the United States and ests, present the inter- therefore States, 1926, 568, Tutun v. United 46 270 U.S. future, listening S.Ct. 70 738. That it L.Ed. public, and created against discrimination deprived of these and that the Commission rural and in favor of urban listeners con- away, wholly them discretion to take trary statutory requirements. These rea- part, not mean that do do so can sons to be a sufficient showing of hearing.9 unfair manner without private both interest and of protections procedural process The due adverse affectation to appeal. sustain the disappear because the do not substantive They require that it considered on the right full-grown vested merits, is, question on the right like that in one’s castle at the com- pellant was wrongfully refused a appeal capital mon law. The before Commission. entirely statutory. criminal cases is entirely put beyond consti- II. The Right Hearing Huff, Boykin tutional limitation. Cf. v. 865, The extent conflict concern App.D.C. 73 121 F.2d appears intervention from the extreme Similarly, though authorities cited. statu- 8 Davis, Requirement Op See 1118-25, and authorities cited and dis- portunity to be Heard in the Administra cussed therein. (1942) 9 tive Process 52 Tale L.J. Ibid.

550 occupational the statu- er. forth tory rights license, tion, will aid first to set in the nature of tory provisions concerning hearing discre in administrative revocable provided Rules “property” purposes the Commission’s not be those and to pertinent both Regulations are due protections by substantive afforded then against and to intervention. These process, they unguarded are not light of what considered in the arbitrary action.10 Procedural administrative Commission, by appellant against them process protects d this, ue done notwithstanding and does so Statutory Provisions A. The power rule-making broad given and discretion Hearings Scheme of concerning the man Commission conducting ner of its business. hearings con- concerning Provisions (a), (a), (f), tained Sections therefore comes down issue crucial Act,11 (a) in addition (b), and deprived to whether has been 154(i), (j) referred to above. to Section to which an it was entitled either fair applications (a) by the statute or relates to license, prongs and for modifica- elementary process. may The two renewal togeth- is authorized to is- be considered tion. quired from grant warrant (cid:127)consent of the station licensee (cid:127)changes n !by ’hereof, or because after shall determine that station, an (cid:127)application revoked (cid:127)of this .promote thereon, power, (cid:127)or will serve visions of (cid:127)complied scribe.” license essary notice of cision with rules and that cessity inconsistent with law it thereof, renewal, application the renewal such stations and to the Commission (a), (b), 409(a) (1941). cordance (1934), § § § 11 48Stat. such statements of fact as opportunity to 303(f). 309(a). “If 312(a). applicant ibid. public application a a license on an may or in the times of chapter: Provided, however, would be served the Commission shall for false statements either in shall not be made without public it and shall afford such with.” the Commission in with public or modification thereof this a time prevent TJ.S.C. respect thereto, shall authorize the regulations for a station or in “Any interest, “Make such be or the 1082, 1085, 1086, 1087, 1096 time public thez’eof, said chapter upon modification upon carry convenience does not reach such de- frequencies, station license the statement of §§ of conditions finding. be heard under such interference necessity, examination convenience, examination of 303(f), 309(a), time which would such out the shall will be more place original applica- operation the Commission regulations not license it shall changes the In the fix and section refusing or may or the authorized provisions may deem determine a station applicant issuance, granting revealed between may hearing unless, or for or ne- of notify event That fully nec- pro- give pre- fact will any any any the ac- re- be permit mission licensee final ing such order has been teen ten judgment as the Commission will June shall restrictions notified ter or treaty of revocation shall plied order, this ence, tunity sion Provided, however, said fifteen sions the conclusion said shall latzozz of or to the Commission at mission either the date ly tion, or for failure to § § modification the 409(a). 312(b). United the duz’ation of the term application license promote chapter days’ issued, order authorized stand until with: have been set forth hearing to show cause ratified required hereby cause for Commission, may affirm, modify, or grounds may this any regulation necessity, or notice in writing given of revocation.” States upon suspended the holder of such outstand- days “Any and conditions of this may failure or or of the Commission Provided, “Any chapter conducted should not issue.” make written for a modification of said granted said permit be modified or reasons the public interest, to the licensee. Such the will be more of the member or examiner any treaty may prescribe. Upon to observe station writing thereof, That no such order take effect proposed revocation, order filing limited time or until the conclusion operate or why hearing upon howevez-, hearing reasonable any shall have chapter under such rules thereof, if the and after United States: of the Commis- such an order of such of revocation license shall become provisions therefor and time construction such action substantial- director of application or for vio- any of z-atified fully the the Com- the *6 until That conveni- within revoke oppor- action pz’ovi- chap- Com- writ- after com- stat- such such been the fif- if, noted, (j) sue, upon (i), As modify license renew Section power application, it deter- the Commission examination confers broad lawful regulations, to make issue rules and convenience mines it. of con- orders and determine the manner necessity by granting would be served ex- ducting it does on its business. If not reach such decision set amining then it must the application, may turning we regulations Before appli- hearing, “notify the matter for note in terms 309(a) that Section * * * * * * cant afford guarantee applicant anyone an else a applicant be heard under may hearing in all be de- cases.' The matter pre- and regulations such rules as it applica- termined examination of (Italics supplied.) scribe.” tion, if in that manner Commission is able application to conclude that the (f) Under Section 303 granted. words, applicant In regulations authorized to “make such is not hearing deem entitled to a if the action is not inconsistent with law hand, prevent to be in his necessary to interference between favor. On the other provisions carry for him out cannot decide stations merely proviso examining application, Act must [chapter],” this but with frequencies, “changes hearing author him notice. afford with due short, power, operation deny ized or in the times cannot without station, necessary without applicant shall not is a made unless, licensee party. consent of station Whether other after public hearing, affected, licensees, de Commission shall including existing are or changes promote termine that such will is not deter- entitled to a public convenience or interest or will serve explicitly perhaps implicitly by mined provisions public necessity, or the primarily applicants’ section. [chapter] complied fully will more Act chiefly, though section and deals not nec- * * (Italics supplied.) These with essarily exclusively, applicants’ rights. with important provisions present are the most 312(a) (b) (modifi- (revocation), ly involved. cation), hand, primarily on deals (b) (a), existing Hearing licensees. prescribed. notice to licensee ques- notice is When pro- revocation or modification of license is tion is modification the licensee must be *7 posed. In case of modification the li- given “reasonable to show “given oppor- censee is to be reasonable why cause” the order not issue. tunity why cause” to show the order When is revocation is to be issue, having should not after notice under such “conducted rules as the Commis- writing. may prescribe.” sion In contrast with Sec- 309(a), expressly tion Section deals By (a) Section 409 a or commissioner applicants therefore with primarily, not examiner or director of a division rights, their but with designated licensees empowered, when by the Com- rights. mission, applicants Under the one hearings, except cannot be to hold ex- an may hearing; affected without a aminer un- not do so administration der licensees the other respect Title III with cannot so affected a matter involv- by revoking modifying or ing: “(1) a the license with- change policy by the Com- mission, out purports a Neither section (2) revocation of li- station a cense, parte (3) developments hearing provided make the devices or ex new or to radio, (4) applicants, or a new kind limit it in the one case to frequen- of use of purports In all heard licensees. cies. cases an examiner But neither to- arguments bring give the Commission shall hear oral or them others a to come request sup- party.” either (Italics Though expressly in. others are on not ex- plied.) cluded, theory seems be in each in- powers' respect involving duly division, designated by with to a matter purpose, may change policy by (1) Commission, for such hold sign hearings, subpenas, (2) issue ad- the revocation of station oaths, witnesses, (3) developments radio, minister examine new devices or any place (4) frequencies. evidence receive or Unit- a new kind of use of designated by Commission; States ed except In all cases heard an examiner arguments administration of sec- Commission shall hear oral on request party.” tions 301-362 of this title examiner of either may not be authorized to exercise prevent principally, stations hearing is between stance that though interference exclusively, carry provisions for the and to Act necessarily out the case, [chapter].” supplied.) prin- applicant (Italics benefit of the in the one interference, cipal section the licensee in Neither concern of section is the other. explicitly proviso, including to take designed face and the limitations of the its requirement hearing, relate mat- the interests of care of the an where situation directly likely applicant existing licensee or of ters most cause and most and an related In with two so. to interference. contrast licensees or do clash pri- 312(b), Sections 309 which are (a) and terms, 303(f) particularly Section is in marily one-party sections, 303(f) proviso, 312(a), (b), much like Section necessarily subject deals matter provides expressly public frequencies, in that it hear parties in private involves at least two ad- ing “changes in the concerning Commission, * * * prin- dition to the cipal with the power, times authorized dispute be- occasion for difference and operation,” licensee” unless “the station interference, them, among namely, tween or change. consents to the explicitly It is not stated with the causes of this. sec- and tion is chief he is notice and entitled to basically two-party therefore that seems section, multiple-party counting clearly implied provision for hear notwithstanding Commission. true prohibition ing changes with of these primary clause is cast in terms of dele- Furthermore, unless he out it consents. power gating rule-making to the Commis- explicit section statement con contains no subject It is concerning sion matter. participation by any cerning notice multiple-party subject matter. nevertheless pro person. On face therefore the parties be two or more 303(f) concerning hear visions of Section stations, they may existing be one or participation are and the licensee’s applicant more such stations and 312(b) dealing much like those of Section The section does not plicants for license. modification, though in terms literally “the designate others than entirely In sense identical.12 a broad contemplates, necessarily licensee”. But it both be said deal with modification matter, very subject nature from the require hearing, unless the li and both to similarly situated will be simi- that others change. censee affected consents to only persons who larly affected, and the true, notwithstanding (f) This is Section 303 are other licensees and be-so affected is, authority principal grant in its as is applicants. later, primarily rule-making or noted section, proviso “legislative” paramount my judgment this fact is aspect a limitation the Commis importance, determining what is both power. rule-making sion’s frequencies, by “changes in the au- meant thorized * ** opera- regard merely power, times of duplicate provision the nature and character or alternative tion” and to Sec- required, each a matter in funda- 312(b), protection licensee *8 dispute Conceding, as I think here. his license is to be modified adverse- mental when may, 309(a) (b) Sections and ly, practically superfluous. we would make it is, sections, one-party primarily ignore primary clause are This would also ordinarily party in addition one 303(f), Section as well as involve purpose and hearings itself, and express in the Commission differences terms of two to chiefly, though not neces- merely they provide are proviso inci- sections.13 The an is sarily exclusively, determining for matters provision, main or limitation of the dent between the Commis- power in instance grant is a to the the first which Commis- applicant in the one and it regulations case “make such not incon- sion and sion to prospect having may licensee necessary deem under law as it sistent with * * * power, quencies, 312(b) or is cast in terms of no Section .authorized broadly operation,” cause,” specifying not with times “to tice and show given operator as of station does li whose notice modification 312(b). 303(f) 303(f) lim- Section is not Section is to he modified. Section cense changes express provision in the li- in terms to made for ited no notice and itself, 312(b) “public hearing” merely requires is so while Section cense in its terms. not limited station licensee” does consent “the supra, change. 303(f) proposed and circa note note See Section “changes supra. only in fre- deals also other, required to But is in the in its it not changed discretion. terms his license apparent no such admit it becomes 303(f) is outset them until Section from the essentially may one affected. also one-sided matter. affecting issues which the start raises from very thing, how- strange It would be a Commission, per- also other only the but ever, notice Congress for to insist opposed among are sons who themselves as merely between hearing lie when the issues not, even in the The conflict interest. party, and one Commission-applicant, merely stage, initial entirely licensee, plicant ignore 309(a), or Commission-licen- in Section provision much fail make similar see, It is Commission- 312(b). in Section three-party highly situa- more controversial licensee-applicant or Commission-licensee- strange for even more tion. It would be three-way, turn licensee. safeguards one of guarantee these ways. three out to be adverse situation, parties against in the latter party in- and the other both the Commission my opinion In fact makes paramount terested, or leave deny it latter provided hearing 303(f) Section entirely within his be heard hearing or essentially stage different kind of discretion, especial- unlimited in hearing provided from those only ad- ly be the one when he is or 309(a) In the first 312(b). Sections versely my opinion Congress affected. place, hearing from the it differentiates that 309(a) and Framing neither. Sections did pre- provided 312(b) Section one conflicts, one-way it left primarily for duplicate becoming vents from mere complex multiple-party situation the more issues, If their alternative of the latter. 303(f). And to be dealt with identical, purposes application were so, doing gave while there be no need two such ex- for would power, it large rule-making discretion and plicit, inconsistent, pro- and to some extent up- provided specifically for mere fact visions changes relating to the most proposed modifications which involved important interference and causes of 312(b) under Section are be- dispute between licensees or conflict and spec- broader and more inclusive those than applicants. section tween them and explain ified in Section distinguishable Sections therefore is duplicate provision, since the latter includes necessarily bringing 309(a) 312(b), important respects the most in which modi- parties together private start from the might be required fication interests, as the Com- clashing well as (b). beyond this, But two sections have odds, each mission with which likely entirely are to have different con- disposition providing and in sequences. Many of the modifications Congress, providing issues. these under Section 312 only did not intend (b) affecting only relate to matters and be parties have notice Commission and particular licensee, heard.14 words, do affect other licensees applicants. They such things aptly drawn, particu- involve is not The section equipment, regulations larly observance language provides etc., broadcasting, essentially only superficial Commission- hearing. reading would Hence, only licensee issues and such. lead the conclusion one of the cases, these there parties need for interested to a hear- giving participate read, notice and merely ing. Literally the section re- persons. provision Consequently for quires hearing changes specified if the *9 such notice and was not in- the to be made “without the consent of cluded and the provides Section pro- provision, these There is station licensee.” no as only for person necessarily tections the 309(a) is 312(a), (b), and there in Sections and affected, ordinarily any specified the licensee person, faced with for notice or to be possible said, only modification the terms of his li- heard. is im- As has it others, cense. not It does exclude plication the condition “the station gives right no them in at this stage. pro- to come failure to consent to licensee’s” the The permit protections Commission them posed change that his in do so these support request arguments This view derives some oral either also provisions recognizing right party,” explicitly 409(a), from the Section the person supra, party. note 11 that “In all cases more than one heard supplied.) (Italics an examiner the Commission shall hear respects “of,” is, can the section’s “in” within between whether found much, however, necessary, “change terms. in frequency” “change So is means “public frequency,” unless the is to be hearing” one if the two forms not which no would mean same thing one but and that well what right appear participate. have the one as what the other The asserts. con- trolling principles great- of construction important, isWhat more section does prepositional er hairsplittings. than in identify not terms licensee” “station interpretation, though whose hearing consent is if is dis- possible upon pensed who, ignore by implication, language, is en- would hearing subject titled to fundamental if he not consent. character of the does Presumably, matter though by and of the inference, he controversies as well is or interests; conflict of section’s licensee in make the of whose terms provision one-sided; license exclude change hearing some proposed. is But the private and, one say parties section does in explicitly. not interested In this respect instances, case, only some one also it differs in terms from Section affected; 312(b). make section a expressly latter relates license,” merely duplicate narrower modification Section pro- “station making (b), taking hibits without account of dif- order until “the holder of terms, purposes ordinarily such ferences outstanding license” is notice situations; applicable and, finally, con- so No explicit such terms strued, there would Section be serious con- 303(f). It nowhere mentions cerning validity. the section’s That con- “station license” or li- “modification” of incongruous cense. struction create the situ- It does licensee,” refer to “station applicant ation that way, in no for a license except by but tion, possible implica- facing licensee literal “modification” would identify him as “holder of be entitled of the Act to hear- outstanding terms license” which is to be ing action, adverse terms, before but a licensee “modified” in or exclude the licensee equally seriously or more operations whose “affected” seriously more affected, granting chang- another’s even destroyed, by favorable license changes ing favorably another’s would have made in operator’s another license. except no to be heard short, the Commis- In section 303(f) is drawn in dif- Logically sion’s discretion. this would and, ferent terms my opinion, for dif- true, notwithstanding the interference thus purposes, ferent 312(a), from Section (b). might blot created out the sta- Literally “affected” the hearing provision relates to operations. tion’s commer- “changes this view a frequencies, authorized * * * wipe nonprofit cial could out a

power, operation,” times of and, completely by licensed un- interference to “modification” of li- outstanding argument the Commission’s der that finan- Literally censes. also it the con- injury only cial appeal, basis’ for sent licensee,” “of the station if change latter would have no be- to be heard made without fore either Commission or courts. given. such consent is it does not injured If the station were also commer- specify whether the licensee is one in the injury, cial one could show financial of whose terms license change is to be appeal, could but would have no only made or one by change made before be heard If Commission. in another’s license granting a new injury, could show financial it would be application. This further narrows the cru- nonprofit with the boat station. the same issue. cial contrary only person Such a construction would run asserts the every entitled to policy provision under the station licensee in whose Act. Not license change Hence, itself, view, made. (f) 309(a) but in Sections and 312 KOA dispenses (a), had the statute heard, (b), with hear- section since there change was no the action to be in its taken is license and favorable person, applicant licensee, it continued free operate on the same *10 power frequency, directly and time interests are immediate- after whose WHDH’s application granted ly provide was as involved. It is zealous to before. This is presented vigor view with hearing the is when decision or be ad- combatted equal Yet, situation, force. Much argument the him. of verse to KOA pedantically the only adversely revolved about difference is the The affected. 303(f) my judgment In Section therefore It is action favorable to WHDH. construction, given be the narrow existing cannot merely applicant. an an KOA was purpose duplicating function merely the two, station. As if either between the the Commis- 312(b), of Section protection, it would greater entitled to the to In addition contend. sion WHDH or seem to be taken KOA. If the action the injustice, contradiction WHDH, obvious proposed had. been to adverse to policy, failure hearing general statute’s in fact statutory hearing, right had a to two of the differences take account the respected it. Yet when subject matter language, sections in point the reached decision with, dealt of the controversies character KOA, WHDH’s and adverse favor to recognize to refuses the view Commission’s hear- denied that the latter had to than rather of interference the fact ing, whether statutory or constitutional. li- terms of change mere literal the perverts policy Act. hearing of the is what causes harm and chaos cense is sta-. dispense That de- when affected, industry, and to tions affected, cision is favorable to the one accepted, public. raise If it would also require it is adverse. when it Section concerning the question section’s serious (f) exception. specify is no It does 'not validity, minima both for of essential want terms who shall heard or have notice. oppor- in some procedural process provides But it public hearing want tunity and for to be heard as “station licensee” does not consent to the favoring inter- play fair essential proposed change frequency, power or unduly Nei- against another. ested as say time. It does not “the licensee whose public nor preservation ther of the interest license is Unquestion- modified in terms.” power and dis- broad ably amply pro- it includes But he him. is disposing cretion to conduct its functions by 312(b). tected Section Whether he or acceptance public’s business station or stations affected will interpretation unfair. of an so doubtful and injured depends, not on the mere fact altered, his license is but how it foregoing necessarily The contem- views changed, favorably whether to him or to plate provided by that the posits others. Commission’s view proviso, 303(f), under the has in such who “quasi-judicial” application as this rather likely hurt, is hurt or as do-the merely “legislative” effect. than That sections, whose letter of license is true, my opinion, notwithstanding the likely altered changed. ignores or to be power principal grant of is to Section’s realities, consequences effects and in favor this, rules. In make such an formal and literal nature of the the. making relating rules defined change. killeth; spirit “The letter necessarily changes existing rights affects keepeth 303(f) alive.” Section does them, by changing that is true as if in terms exclude the station licensee who change were made order than rather injured by changes li- favorable to other achieved, When effect rule. applicants. censees or Such licensees by the one form of action whether or only injured be the or other, ordinary distinction between (and affected the action. such a case “quasi-judicial” “quasi-legislative” and ac- one), posit hearing this is upon the want way gives elementary re- before consent of the licensee in whose favor destroyed quirement be not or deprive is made would be the decision proviso hearing. The impaired without re- only person injured capable being quires change whether is in through him injured, public he “legislative” “judicial.” form serves, to be heard. Such a Regulations Ap- and Their B. an in- pervert section into view plication suppressing protest all strument likely hurt, except person hurt regu- remains consider raise possibly lations, applied, he his voice on have been vio- appellant’s right only, to a peal, then the Commission’s lated view, he above to to be with the answer that met construction every before mean that licensee right to be heard it. It would who way, representation minutely however in some or re- suppress also change primary purpose motely, is the affected, he surmise that will protect and secure. consider statute *11 is entitled hearing to a Affirmatively, or that however, the op- two the rules must judicial full-panoplied proceed- differently. erate The practical effect ing. questions Further (1) are: therefore old (Rule one 105.19) was that affected What injury interest or must an li- parties affected licensees became disclosing in have, disclosed, censee petition and how this be must “substantial interest the sub- in order for him right ject to assert the hear- Upon showing, matter.” interven- ing; (2) by what hearing; (3) meant effective, became right. a matter of So may does the arise and when may having rule complied taken as properly be asserted ? implicit requirements of Section 303(f). Broadcasting River Red Co. v. may Interference only a affect few sta- Comm., 1938, Federal Communications many. tions frequencies With crowded App.D.C. 1, 98 F.2d 262. Persons substan- are, as a change frequency, in the tially action under that power or time of one station affect section in. dozens, had the to come That possibly others, some hundreds nominally was process exercised as a of in- seriously, some only Expedition slightly. tervention, by filing petition showing Commission’s functions nature of than rather re- hearings not become radio conventions or ceiving parties and being regarded notice as interminable receivership trials like some outset, from the was no more than a rea- proceedings. There must therefore be some sonable concession to the dif- limit persons to the number of entitled to ficulty ascertaining in advance who participate parties as and to the extent to sufficiently and of con- interested part. so those entitled take fining within reasonable bounds. Apart applicants from licensees faced Broadcasting Red River Co. v. Federal with modification or revocation of Comm., supra. Communications express provision statute makes no for The determining (Section 1.102), however, necessary parties, new rule persons substantially interested, excludes in- per- of intervention “affected,” cluding existing sons unless entitled notice and status from licensees petition inception states their “in- With facts to show the two exceptions, public tervention be in will interest.” stated the Commission has purpose The cut down the treated the matter as intended intervention participating number old prescribing the basis under the rule.16 rules requirement The language which “affected” of the new and others stations ambiguous. regulation, Under If it were that the come in. its former meant Rule 105.19, public Regulations (1935), Rules and intervenor must show that the inter- dis- up substantially private est is his tied closure of “a substantial interest the sub- one, he ject proved so that would be matter” sufficient. This unsatisfactory15 champion both, perhaps analogy has revised to necessary appeal, requirement petition conditions add the that the also case, sustain petitioner stated in Sanders “the on show facts claim further limitation. bases his intervention will his public be in Rules Regu- interest.” rule, however, ap been so (1939), lations Section 1.102. plied. interpreted The Commission has not regulations specific alike in calling merely two exclud- it as for a statement of ing persons who show public cannot substantial fa to show that cts There petitioner’s operations, interest. would seem to no valid is involved in the objection Participation parties to this. substantially will be affected persons insubstantially consequently or remote- change proposed, ly necessary or affected is not petitioner’s participation interested will be protection private right public of either in championship of and the both its own Exclusion Rather, interest. of such interest. as counsel have necessary brief, stated the the decisions matter efficient appellant’s right conduct Commission’s func- intervene were denying keep hearings tions and within man- “not lack interest. based on ageable bounds. held whether or not Commission Attorney Monograph See Gen Law —Cases Comments ministrative (1940) eral’s Committee Administrative Pro

cedure, Federal Part Ibid. (1940) 16ff., Gellhorn, Ad *12 that, ed, exclusive or in Commission’s the it had sufficient it, discretion, aid it not be able to because permitted not be to intervene the for to hear furnishes no basis refusal participation how its failed to show case, the facts or on the side the whether on of hearing any assistance would of bought at Efficiency the law. is the involvedRe- determination issues of price Cf. Bran such a to essential fairness. former ferring practice under the to the States, deis, Myers J., pro- dissenting in United v. 105.19), said (Rule is also rule 52, 240, L.Ed. im- 272 U.S. it made S.Ct. because cedure abolished “was applied 160. If rule been therefore has possible an efficient administration appar- appellant in this this manner and with ef became again, Act.” thus And “It fect, complaint. it has for Whether an insufficient cause ent alone was interest ** Virtually applied it has been so such con *. test for intervention sequence remaining question. many persons is the every application involves * * * Most interested. who claim to be important, Upon that facts are com- facilities in a applications are for questions are also dis- sta- dr more munity already has one which public closed its own interest and petition may be tions which fearful sufficiently. both In- affectation of * * * which cause for are facilities what volved also kind existing stations. interference to electrical hearing entitled to have. was factors combine many In both situations my opinion improper In there was no potentially interest- number increase the hearing prior denial of the denial ** every practically in- *. In persons ed petition second intervention De- filed claim persons stance the who 16, 1940, gave cember Commission whose existing licensees proceedings are notice KOA others by protracted promoted interests private findings grant- and conclusions favorable to long possible delay application. WHDH’s Until then it competing facilities. the establishment wholly possible application, was filed wonder facts In view of these there 309(a), under Section would be denied. did not rule con- that the intervention old was, proceeding Until time the dispatch of business and proper duce ‘to the pointed out, essentially one-way been mat- ” justice.’ to the ends of ter, involving questions primarily and initi- best applied, the rule down at So comes ally applicant between the Commis- efficiency, controlling re- without had sion. It been unable to decide from interest, public private, how gard to application applicant. in favor of the affected; at worst to one of far it Accordingly, required, put as the section per- Commission mere convenience the matter and notified down is the functions. That this forming its gave to others WHDH. also notice rule, as it has meaning effect of KOA, affected, including though appears ar- applied, from the require the section did terms this. briefs, gument but also from petitioned then for intervention key support decision Commission’s denied, petition a pe- and the was as were Hazelwood, policy, Application re In action tition to review this and a motion 5698), the undue reli- (Docket Inc. appellant to dismiss the on the placed argument breadth ance did ground it not conform to rules. discretion rule- this was there of the Com- none of abuse making action taken power, and from the powers or discretion or mission’s violation this case. statutory constitutional stage posits rights. A In this initial the burden basic was rule applicant exclusively upon mere to convince the Commis- convenience applica- prima granting its petition- facie that to the or whether the sion Commission interest. The er’s “will be of would be assistance issues,” determining leaving very the matter fact set discretion, solely indication the in its a tentative decision determined applicant.17 be adverse a denial of not reasonable. laboring had therefore oar. That be inconvenient WHDH convinced the Commis- time-consuming body such a and until it to hear Unless substantially apparently ground, valid interested affect- there was sion Attorney cedure, Monograph 3, Federal Communications Part Gener- (1940) 13. Pro- al’s on Administrative Committee *13 case, the file prima granting facie mitted it to brief amicus curiae. It least a participated so application, harm or could be did and no was done in this character in Hence, the argument upon until oral done stations. the to other appeared stage adopting the total proposed findings. from this initial the On March 27, 1941, process proposed that some harm to findings administrative and conclu similarly possibly adopted by situated sions KOA and were others a vote of three to two, result, was no es- probably partici dr there would two Commissioners not process pating. in sential in The members voting nega reason either due (a) 303 tive filed provisions vigorous dissenting opinion. and of Sections 1941, F.C.C.Rep. then the (f) bringing in. Until -. them decision be discretion, came by as effective April entitled in its formal order Commission was Appellant’s 1941. petition contemplated, rehearing treat 309(a) exclusively was then appeal matter as between itself denied one and and this followed. by way applicant. of conces- So much stage the final decisive of the general sion, terms and the not action, therefore, Commission’s statute, efficiency scheme but also to party, notwithstanding was excluded as functions, performing Commission’s permitted appear brief to file a is reasonable. argument oral as amicus curiae. Unless gave these it all which it concessions statute, Concomitant this view of the by way was entitled the exclu- however, requirement is the that the conclu- justified. sion as This is be- cannot stand by sions law and fact reached Com- cause the basis on which it was made was stage, concerning mission in the initial is- necessary regard not valid. It parties sues which sub- affect other invalid, since, may Section 1.102 as tentative, stantially, not final and possible apply it with valid effect. How- conclusive, were favorable to ever, ap- the manner has been This, fact, applicant. appears to have invalid, plied generally in this case is observed, findings since the and con- being contrary both to Section “proposed,” clusions were issued as not as elementary also to possibly the Act decisive, concerning and notice final play required process. fair proposed given per- action was to affected sons. Conceding its sub- character, denying stantial its substan- however, point, At this the clash between tial relation to interest or that WHDH, the interests of KOA and appellant’s private this as well constituencies, respective public their be- adversely order, might be affected apparent, possibility with the of the came recognize appellant Commission refused to had iatter’s WHDH succeeded in success. petition ground did not discharging burden. The neces- its initial disclose facts to show how its sary effect of action in its favor would be to proceedings helpful would be to or create electrical interference with KOA and would assist the Commission deciding require also to its reclassification under the issues. It then belied action an- then, stage, rules. At this Commission’s nouncing in the order of denial that longer primarily become matter had one pellant might a brief file amicus curiae. Commission, between WHDH and the them, primarily between on the one In view of the basis for the Commission’s hand, stations adverse- action, and KOA other perhaps necessary it is in- affected, Though proc- ly on the other. quire petition, under some 309(a) ess initiated under Section would interpretation or some other rule complete final and until not become con- present one, sufficient. made, provi- clusive decision had been reason, for an invalid was denied and that 303(f) then first sions of Section came com- require in itself is sufficient error re- overlapping pellingly play, into the final versal, unless its effects were cured phase Section 309 allowing as amicus (a), substantially curiae. de- petition, however, more than com- opportunity present cision be rule, apart plied with the from the invalid case. side of the interpretation. petitioner’s set forth clear point At interest as dominant channel station filed its second intervention, kc, petition frequency on the with freedom was denied interference, However, January night; per- granting order actually right. deprived substantial elec- of no would cause WHDH’s interference; refinement require change presents the final trical of the issue. frequency under classification of KOA’s rules; degrada- result peti- claims too much. preju- frequency 830 kc tion of service on tion, “re- among things, sought to the United rights of priority dicial to the peti- open proceeding to afford order Regional American States under North evi- tioner dence, to introduce *14 against discriminate Agreement; Broadcast witnesses, all to cross-examine in favor service to rural listeners and proceed- fully participate in the otherwise served; stated already ones well urban proposed find- ings; upon such record file repeat. This necessary reasons not to other admittedly law; have ings of fact and conclusions the sub- show sufficient to was proposed any right exceptions to to file interest, petitioner’s stantial character ; issued Commission decision thereafter to relation substantial and in addition its request argument oral to service public including thereto; exceptions decisions and its areas, against possible rural discrimination respects in the im- participate fully in all pos- regions, in of urban them favor application” portant in the issues involved rights injury priority sible to nation’s not short, appellant sought of WHDH. In treaty, together under international participate party to the final as possible probable substantial in- process under Sec- stage crucial privately appellant and to jury both to repeat reopen, 303(f), tion but also to appearing, interest. So much Sec- participate stage initial respect with petition complied every party in 309(a) fully tion as would 1.102, except the construction judicial proceedings equity with to the will of assistance “intervention evidence, present to cross-examine “will judgment” in its own witnesses, including all who had been for the Commission.” be convenient petition exceptions, submit previously, heard take rule in compliedwith the therefore part argument, etc. Such findings,’take aspects, have all its valid a view of the would convert granted. judicial trial in the essentially them into a novo, stage reexamination de so final however, argues, The Commission demand, appellant might far of issues appellant accorded in substance was initial one. presented and matters notwithstanding it right full to right my judgment In no such extensive first, because, party, excluded as a contemplated participation is Sec- appear to and to was in file a brief allowed section, or is re- curiae; and, as amicus argument oral quired by process, and enforce due to had, second, appellant 1.195 under Rule scheme, statutory pervert con- exercise, present but failed to to requirement vert of fair administra- sub- as it choose to such evidence judicial pro- for a tive into one provides maintaining Rule 1.195 mit. cedure, bring clogging about a secretary a record the office work and functions incon- Commission’s relating to received all communications nature, complexity their sistent with any application, together with the merits of performance. addresses senders. the names and set, appellant sec- Both the Commission and When the date for is posi- far in their gone have notify persons these therefore too retary to hand, appellant’s right tions. On the they to will absolutely not hearing is conditioned Under the rule give evidence. and are discretion, as it would any rele- precluded giving “from in the Commission’s participation argument competent testimony” limited because vant facts presenting and in justify amicus curiae lack “a sufficient as under the they * * * ” * * * 1.195, provisions of Rule party. intervention as public. members of the Its plicable to all things these view of so had, waived, participate is to do as a matter op- says appellant full (cid:127) party. That evidence, present right, grace, and as a portunity and had true, extent of notwithstanding the argument, opportunity for oral full also and effect, grace thus, as matter written, upon legal participation allowed issues— nearly substantially Be appear upon discretion both facts and or entitled what identical with therefore the law. asserts to hand, tic right. interest,” have as a matter On the formulae of “substantial “ad- versely affected,” full- not entitled etc. So much least judicial dress dictate would seem proceeding conceded, properly to be regard extent participation, discretion, of its without but to the necessity reasonable limitations which that it be distinguish enabled to imposed by achieve or- with the Commission to certainty reasonable between derly hearings. unduly and not extended entitled come in as of and others must mark not Some middle therefore ground so claiming entitled but this status on grounds appellant’s right boundary out the between insufficient once the actual facts of power. and the Commission’s situation apparent. become If at difficulty, times there there is in dispose enough It would be judicial proceedings, determining what appeal excluded from merely are basic distinguished appearing as a matter and allowed facts, evidentiary reasonable latitude to- grace. limited as a matter of *15 important ward including some of the more this, more, But to do would leave without of the latter resolve will it. error if The the further problems in doubt. Two any should be made the side of stat- distinguished, must be one the ing more rather than less than be par- appellant’s right determination of actually necessary. ticipate, right. the extent the other of that problem, The other involving the extent The former is not a matter discretion participate, properly with- appellant’s with the Commission. inOne in the Commission’s discretion under its position must be heard issues such as power, broad rule-making reasonably exer- proceeding stage, this final involved cised, beyond a few essential re- minima 303(f). under is not Section quired by elementary play. notions of fair inconsistent with the Commission’s re- Neither the statute nor the Fifth Amend- quiring its shown some- existence to be prescribes ment specifically what these general allegations thing more mere than Nor minima are. has it been made clear interested, substantially holder by judicial decision what constitutes a affected, substantially will public and that the be compliance process minimum with due will be like- interest is involved and way hearing. administrative Pre- wise affected. If this were all that could sumably vary will to a considerable required, practically everyone be affected extent with the nature substantive way, immediately remotely, sub- right, complexity the character and slightly, his stantially or could come issues, the kinds of evidence and fac- option by alleging generalities. these On material,19 particular body tual or of- hand, it is not necessary to set ficial, and the administrative functions in- pre- forth the evidence which would be words, volved in the In other es- merits, requiring sented on the nor would sential fairness of some re- bears Between these be reasonable. two ex- factors, certain, beyond lation to these though very may but ground may tremes middle a found few, requirements which basic enable the Commission to determine that hearings, fair be common to all injury, public the interest and the parties extent of private, are real rather substantial and than regulation by a matter stat- others is visionary, insubstantial or stantially and are sub- properly au- rule-making ute or thority. conferred Perhaps analogy related. judicial proceedings can taken from required, in findings which of fact are The Commission deals Communications evidentiary complex highly distinctions which involve technical and en- facts, facts re- gineering lations, basic and ultimate facts.18 and economic functions and highly organized There could be no undue limitation of crowded a requiring industry primarily public existence serving posited private it is incen- strongly the ultimate facts which but regulatory to be shown statement of such basic are both Its functions tive. facts, quasi-judicial. single Its action in a so that persons, many more than the vacuis- guided by something case often affects Broadcasting Requirement Saginaw Davis, Op- v. Federal Co. See App.D. portunity Comm., to be Heard in Administra- (1942) 96 F.2d 554. tive Process 51 Yale L.J. C. 1106, 1117.

Kfil compel there- cretion hearings reproduction licensees and others. Its of all testi- ones, mony produced. then many-party fore which tend to be Such a view would par- force the appearing large each as one seeks Commission to incur the waste of ticipation holding issues possible. preliminary Often certain hearing upon the some, parties. Yet affect not other under 309(a) but and then in, party tendency repeating once come his has all had been done in it when it goes apparent, to have a on. Cross- hand in all becomes pro- from the posed especially itself to abuse examination lends determination favorable to the op- plicant, in such a situation.20 does the So final stage testimony.21 portunity present expert must gone through Consequently, in the funda- with in order contrast with appellant’s afford in, present position mental to come' to be his to be heard. heard, way much in the contemplates statute no such waste- discretion must be conceded Com- process, ful my opinion and in process controlling the extent to mission parties require does not Adequate protection it. participate. may be allowed to rights can be secured with- keeping, objective this, out and in full consonance with the hearings is to manageable within bounds statutory scheme. contemplates, achieved, therefore, not as said, has been a preliminary hearing in attempted by right- excluding applicant to be in, controlling fully should come present private party. become through- regulation the extent reasonable *16 final, if the decision is him. adverse to they may part. which take As to this to so, harmed, If others affected will not be may rightfully Commission has and presence stage their in this specific authority in exercise much various clutter proceedings and the record. ways. not, If then hearing to hearing The essential minima for fair arises 303(f). nothing under Section But op- would seem reasonable to include in the in the act or Constitution portunity present concerning entirely to evidence this to de enough be novo. It is disputed upon argument adequate.23 issues of fact that proper it be At the stage tendering intervention, issues affecting party of law pre- record in the them, party liminary do both as a to the hearing may to has been made. It proceeding, merely not in the character of made available to the intervenor. From present multiplicity on sufferance favor. In the or of evidence and of'issues respect mean, require neither specify, however does this it is not unfair to him to think, may party way, seems to that a least general the issues he at require retracing steps meet, proposes all taken before the the evidence he wishes contradict, stage at which come in arises concerning his and other matters may throughout or that he wander objection. which he wishes to raise This upon parties, affecting other particularity, record issues be done with not should substantially.22 merely by charge against but not himself broadside therefore, mean, case, previous proceedings. it does not entire With the assumed, pellant require self-limited, that it could it will then issues so whether, prior proceedings entire to the time of its determine Commission to discretion, reopened quasi-judicial proper intervention to with the exercise of its part cross-examine all wit- right on the intervenor’s its limited, produc- preliminary stage relation to the nesses heard further evidence, cross-examination, and, apparently, argu- 309(a) in its dis- body nized rule Monograph, ernmental pra 20 id. give note This seems Particularly satisfied technical disinterested 1103. at technical action at op. if at ’ engineering issues or 16, 17. implicit cit. when the becomes Monograph, experts, supra process expert opinion time questions. staff, note final, agency such as the requirements before op. well-recog competent hearings cit. at 19. has a upon gov See su primarily involved. See directly judicial action, ed initial are allowed either excluded interests ; at Ibid. Monograph, op. cit., 1104, 1136-40, stages or become until a later immediately of a interests of others Davis, directly therefore and authorities cit op. phase administrative or affected in the cit. supra immediately supra note may involve note not all of the petition second hearing. demanded in its incidents of relief ment other normal petition restrict- may be to intervene party In this manner each participation rehearing, fairly issues another ed case, required, allowed be reason- than in the Commission’s pertinent rather to his discretion, up- itself ably confine through roam the entire exercised to on matters relevant others, indicated, not to out with point as has been and to he portions reasonable concerning particularity the himself or matters Perhaps previous proceedings considerable objection. features of the has no part may be accom- wishes to challenge. such confinement by appropriate plished the issuance of amount, does not in substance by that general regulations. effect, acceptance of the Commission’s case, particular method or action view that can excluded for affording the the result be achieved failure set forth facts its to show hearing, adequate with- intervenor fair and intervention will be of assistance to him permitting at the time out same deciding Commission in That the issues. all nullify away run pertinent factor is how far intervention, un- gone has before appellant may participate, perhaps though fair beyond what duly extend the not conclusive of it. It is the criterion rights and the protection of his fact, may, to be heard. require. is, exactly opposite effect, have necessary to extend the discus legal may present intervention facts or suf shown sion further. tentatively argument, contrary to ac- those in. It should ficiently right to come Commission, cepted by the make which will so, party to do been allowed have to the Commission its purpose is one decision more That difficult. merely a friend of proceeding, Nor this view public. member of aor present posit the right to be and to take true, the extent notwithstanding That part exercise of the Commission’s participation actually allowed es- discretion With that favor. was en substantially all tablished, every protection, other has *17 have, though statement it titled to attempted is there some if violation that this true. That is not intimated was respect of discretion exercise is question need not be determined. corrected, be- by argument it first present party, and a as thing to be as itself, fore the not Commission it is if is right. a another to matter of there, by appeal. corrected then still upon It is favor or sufferance. attempting Without therefore to blue- particular heard a fashion another to be procedure print to be with followed particular stage., time or at a partici- respect appellant’s to the extent of arose, Appellant’s right not when the leave pation another we applica preliminary proceedings upon the judg- to matters begun were nor when the matter was tion ment, properly subject belong, where prior hearing, nor set for thereafter require- compliance only to with the basic “Proposed Findings of issuance of opportun- play adequate ments of fair Conclusions”; when these Fact and ity to be heard. time, upon the issued. At that show were appellant excluding For error petition, ing made in should party participation as a in the final recognized as a and al have been stage of proceeding, and controversial contrary participate thereafter that lowed requirement of Section basis.24 Act, the order be re- 303(f) of the must right participate, of its The extent versed, appellant directions to afford with however, largely within the discre accordance with opportunity for Commission, having regard tion of that provisions of section. principles above stated. to the right as a Reversed remanded. not entitled matter of 909; Comment, Ne- is not as S.Ct. 78 L.Ed. statement intended cessity Hearing Enforcing meaning adequate hearing might not Or- Before stage, at Commission afforded a later der Interstate Commerce have been 1300; op. Davis, appropriate petition (1934) regulation, cit. Yale L.J. rehearing. supra Il at 1136-40. Cf. United States note v. Ry., 1934, linois Central U.S. VINSON, GRONER, (con- application Com J., Here the Matheson C. J. pany is for an extension its facilities curring) . said, application, we have effect an Judges concur GRONER and VINSON will, of which substance granting in the conclusion of RUTLEDGE Judge appel regarded, modify the license ap- only circumstances, think Sec lant. we (2) peal 402(b) this court under both 312(b) applicable Act, (2), but 402(b) 47 U.S.C.A. § Company were appellant and the Matheson proceed- also intervene participate proceedings in the entitled are, there- ing before the Commission. We parties rights parties. We fore, and with the agreement RUT- Judge think the statute contemplates case reversed LEDGE that should be de right, although licensee’s limited hearing. remanded further destroyed feasible, shall not be modified or importance prin- In view of the without a To allow desirable, ciples involved, we consider of fact have findings after however, separate to set out in a our word par deprive appellant of been made is to those meaning views and effect of ticipation period during crucial all Sections of the Act which we is, evidence proceeding when the —that agree the decision must turn. up. made being taken and the record being agreement Judge We are in RUT- be Appellant’s from the interest existed 303(f), LEDGE that under Section in that that enough ginning, 303(f), U.S.C.A. § by the terest was considered Commission. par- accorded will It is axiomatic that one whose ticipate party. in the as a affected, engage only may himself opinion that, we are also since in affirma protection, but do so in their must apparent of this case facts every proceed tively step at in the granting of the Mathe- consequences of his de take the ings —or Company, Inc., Radio operators son Fed Broadcasting Co. v. Red River fault. Boston, Station result WHDH Commission, App. eral Communications amounts, if regarded in what substance no default D.C. 98 F.2d 282. There was form, rather than modification in this case. pellant’s 312(b) Act, provides 312(b), U.S.C.A. also § STEPHENS, (con- Associate Justice that application. While curring) longer is no here— material Judge I in the conclusion concur that, *18 present since assume in state we the appellant the has not Rutledge that record, the the Commission' will re- of. appeal to court the under § open permit the the inter- Act, of the 47 402(b) (2) Communications express as party vention of a —we (2), that it had also 402(b) U.S.C.A. § Judge disagreement with the view of our proceeding intervene in the the Commission, that the in RUTLEDGE discretion, its Commission, therefore I am before the par- may exclude Judge Rutledge that agreement with ticipation. findings proposed until after the and the case should be reversed the order of fact have been It is our made. view further I am also remanded for participation in that the under the conclu- agreement with views and 312(b), either Section or Section expressed by Judges Groner and Vin- sions appel- have been accorded both separate opinion. in their I desire to son Company and to Matheson from the lant following: the add true that 309(a), outset. It is provisions that appears I aware the 309(a), contemplate am U.S.C.A. § speak Act hearings for examination Communications of an and rights of licenses which are or the renewal or station a terms alteration, thereof, suspension undergoing or revo- the Commission shall modification through direct action of the Com- determination in favor of the cation make a. thereon, and in terms plication, it need not of the accord a to mission think, applicant. existing licensees —such as those rights we whatever the be, impaired will may otherwise of this section the effect —which inapplicable action of the facts of this the direct Commission it is case. Co., licensee. Radio extending the facilities of another Nelson Bros. v. 1933, implication 266, But I think that clear 627, U.S. L.Ed. S.Ct. 1166, safeguards operate the Act A.L.R. 406. In the case Pottsville appellant. benefit a Court sure, of such licensee said: “To be the laws under For it that the modifica- cannot doubted these agen- [administrative] operate of cies prescribe tion —in instant the extension case the fundamentals of right may have facilities —of one license fair play. They require that interested consequence even of impairing, or parties be afforded an Bros, destroying, li- the business of another hearing.” In the Nelson case censee; modifi- practical effect is a Court said: “Whether cation or revocation of his license. A con- applies legislative validly standards trary regard rather than view would form up, set whether it authority acts within the granting substance. of new or That it, conferred goes beyond whether its may additional station have con- proceedings satisfy pertinent demands sequence destroying impairing process, whether, short, of due there recog- existing business licensee is compliance legal requirements with the nized in Federal Commis- Communications province which fix the of the Commission Station, 1940, v. sion Sanders Bros. Radio govern action, appropriate 869,, 470, 693, U.S. 84 L.Ed. 60 S.Ct. questions judicial decision.” view 1037, Court, Supreme where the after Bros, cases, of the Pottsville Nelson purpose it not the of the stating and in provisions view of of the Com- competi- against Act licensee a protect munications Act recognize rights, protect public, tion but to that Con- limited time quality by the terms of gress competition in the intended to leave issued, the licenses in station licensees broadcasting, also: business stated 301, (see especially 309(b) (1), (2), §§ 319(b), 309(b) (1, “This 47 U.S.C.A. say is not to §§ competition proposed 2), 319(b), I think it clear a station between a license issued operating existing under li- under the Communications Act for a definite term entirely disregarded by cense is to be for the conduct of Commission, and, indeed, broadcasting requiring business substan- practice privi- disregard shows that it does tial is more than a mere investment question. lege gratuity. not it vital Whether or important bearing upon ability technically right, the be it property called a applicant public; adequately to serve his thing person whom value indicate that ex- both stations —the business conducted is issued under, isting go subject injury. I think be the —will portion the result that a of the listen- Supreme in the Sanders case Court adequate will left without “anything its reference to absence service; may that, by indicate a division re- property of a as a in the nature field, stations will be Com- both using license” was granting sult of inadequate pelled render service. ...” of a property right in the sense the term 60 S.Ct. 84 L.Ed. U.S. is clear indefeasible. right absolute or 869, 1037. that under the of course *19 rights subject licensee’s are Act station a It that in the -the is true Sanders case modification, revocation, to or even to policy is made that the statement public interest. But I do not think person “anything Act is that no have to decision was intended to taken Sanders property right of a re in the nature as a that even of a limited meaning no granting sult of of a license.” But the defeasible nature exists in a licensee. opinion recognizes that case also that I think that in- Nor do decision was financially licensees in existing mean that an broad- tended to by compet a license jured issue of to a casting station and investment therein quoted station. first language injured destroyed by or the intro- opin be read connection with the must competition through or the ex- duction of ion as a whole in connection with the Supreme tension or modification of the facilities of the Court Fed utterances a hearing other licensees without Commission v. Potts of eral Communications before 1940, question Co., whether the Commission on Broadcasting ville U.S. interest, public and neces- 84 L.Ed. and Federal convenience 60 S.Ct. Surely sity will be served or de is not injury enough, such standing to secure appeal struction. on the basis of affectation in- terest aggrievement, or in- electrical Even if the Act were beyond terference previous- will occur recognition doubtful its of the existence ly occurring. Surely injury, some actual rights provision licensees and its or anticipated, should be the minimum re- for hearings upon whether quirement. injury And has occurred public the reduction threatened, or is what other test or meas- or rights, destruction of such I think ure substantiality could there be duty would of the courts to construe than that isit financial ? the Act as recognizing such providing hearings for such this for In the Supreme Sanders case the Court —and First, two reasons. in the in- absence of said: “Congress purpose had some in en dubitably language clear a requiring such acting section 402(b) (2). conclusion, it would be unthinkable to con- opinion been of that one likely to be finan clude that Congress provide would cially injured by the issue of a license the granting of station licenses radio would be the only person having a sufficient broadcasting in connection contemplating, interest to bring attention station, with operating a investment in appellate court errors of law in the action space building equipment, hiring of the Commission in granting the lic talent, the contracting advertising, ense.”1 course, supplied.] Of [Italics labor, employment at the speculative as it stated inis form concern recognize same time fail to what- ing legislative purpose, possible it is called, ever technical they might name argue that language this only was not intended property rights whether rights, or license say person a likely to be finan arise, interests would in the to cially injured interest, has a sufficient with granted, whom licenses were which should in meaning (2). 402(b) impaired play a matter of fair not be But I think that exactly what the Su destroyed by the Communications Com- preme say. Court intended to theAs Com ques- mission without a points out, mission in its brief the word public interest would be financially, italicized, which I have impairment served Right or destruction. opinion added after the first released.2 injury by to a before intangibles While such prestige, government public interest is one position, in world broadcasting guaranteed the fundamental decencies licensee, seem a valuable still democratic institutions. guard is the safe- unimportant view of that free com- —in system Anglo-American legal petition Congress intended should against arbitrary public capricious action exist broadcasting- in the field of —unless purpose authorities. should be No injury them would result in financial deny Congress right. attributed to such a injury. If, example, prestige loss of Second, language construe doubtful then, should result in -loss of advertising impairment Congress permitting perhaps, tangible injured a interest would destruction of licensee’s interests with- a give standing which would invalidate, out be to interest, peal. But if there is of such process clause the Fifth Amend- character, that it will reveal itself in terms ment, Congress. the action of That injury, financial then there is no suf- arbitrary protects against im- clause appeal. give standing interest to ficient pairment destruction of substantial is true even of licensee which is though by the they are limited rights even basis, nonprofit operating college, open doubt. Cf. is not church, or a benevolent institution. Fin- French, 1924, 131 Cedar Co. v. Northern backing is to maintain ancial P. Wash. *20 threatened, injury If the licensee. a dangers en- MILLER, (dissenting). Associate backing that then financial the li- Justice appeal; standing injury censee have other- allegation no substantial I find any else appellant’s appeal. wise not. Where could the line be reasons for 1 2 See Federal Communications Comm. Federal Communications Comm. v. Station, Station, Brothers Radio Brothers Radio 309 U. v. Sanders 309 Sanders 642, 693, 693, 477, 698, 642, 470, 84 S.Ct. 84 L.Ed. 1037. 60 S.Ct. U.S. S. 869, 1037. L.Ed. signal KOA, that it sufficient a reception

drawn? from and Would that their aggrieved organization signal was that Methodist would be made a little worse preached Baptist WHDH’s doctrine modification. I think such an area; college allegation listening or that would not standing same show peal. songs appellant’s and cheers Since allegation should disturbed actual more, learning? accept of a rival institution of mean no it we can showing standing to appeal only if we case, present apparent in there It is waive the that rule are to pleadings fore, was that unless interference electrical against construed the pleader. likely injury to result in financial person aggrieved was not an If we take that step, I think we should And meaning within statute. affirm. I find nothing in the Communica- result, likely injury if financial tions Act which spelled fact licensee could out have that give appellant quite a hearing; the con- appeal. imposes no his reasons for trary. Yet the gave Commission judicial upon one seeks undue burden hearing. a It violated neither the Act decision, review of the Commission’s process. nor due clearly, unequivo require specify that he The Commission was and asked did precisely, alleged cally, the nature his modify the license of WHDH. Sec. 309 This, do.3 injury. appellant has failed to (a) of provides the Communications Act appeal. Consequently, I would dismiss in effect that may grant, EDGERTON, (dis- Associate though .may deny, an Justice senting). modification without a Most modifications of affect other “person licenses li- aggrieved I think that or whose censees, Congress and easily might have interests affected” contem- required that other licensees who stand to injury distinguished plates a substantial lose given a hearing. It did not. So trifling negligible one. I should from a therefore, concerned, far as the Act is suppose interference affect necessary. True, Sec. signal adversely, reception so of KOA’s area, the licensee of station be important large over so if the Commission injury give as to cause substantial change “frequencies, station’s author- appeal, whether or standing to * * * opera- ized power, or times of loss. it caused financial inter- term; applicable tion.” But that section is not be of ference is an elastic here, pow- frequency, neither the since minimal any degree. interference is Some er, KOA, appellant’s the time of Appellant’s nor sta- practically harmless. tion, changed. Similarly, being Sec. appeal, though alleges “sub- notice of 312(b) forbids “modification” license alleges of its stantial modification” the licensee to show without injury any nor facts substantial neither why license not be cause fied; modi- injury. al- constitute substantial applicable, that section injurious than “inter- nothing leges more being is not since license modi- in areas where KOA’s ference KOA particular.1 merely Its license fied in is now interference free.” signal operate specified authorized with supported if it were allegation would time, area, frequency, power, equipment, thousands small some shown Denver, operate it to with the same still authorizes and of no actual from of miles frequency, power, equipment, and time. importance appellant, potential appellant’s frequency or say did at inter- rare To listeners could few interference, being “changed” or “modified” feeble license is get, without vals injury particular to a threat show Federal Stuart v. distinguished own, 265, 267, App.D.C. F.2d Comm., Co., 790; public’s 788, the administra- Lukens v. Steel Perkins 113, 125, law.” . 60 S.Ct. U.S. including respondents (f), deals a sum- “Nor can vin- 1108: See. L.Ed. way mary “powers any general with the and duties of interest which the dicate including (b), Sec. in the construction Commission.” way Secretary a detailed and which must deals in “revocation Act process. Respond- political of licenses and modification” left hearing.” standing court, ents, must “notice to have

557 speech. iant’s case inapposite figure me of is somewhat similar that of seems to an to rules, a until licensed operator automobile It true the Commission’s is these demand that he hearing of a before changed were in course be speed I stronger limits proceedings, only one Class are reduced. stated that is frequency respect; is, appellant in assigned” “will particular not, operator kilocycles. of is more of 850 But statement automobile anyone policy likely was purpose or than else be affected the Commission’s to to, appel proposed. incorporated, change is referred But it weaker not, respect; appellant can another license. Therefore license lant’s not, construction, is, operator do the automobile forbidden to unless liberal a most change ex any to after the he was free do regarded as intended make what to change. of appellant, Only consequences before the grant clusive to appellant’s activities, time. activi- equipment, frequency, power, or of themselves, change Appellant’s ties are affected license is no more exclusive respect than the Commission has made in the frequency, power, to and time which Appellant license of in sub- respect equipment. to settled WHDH. °And the stantially position strict con same owner rule not a liberal a liquor garage of a licensed store who struction franchises and licenses.2 of Moreover, competition by the provides subjected new Section 301 Act to of * * * a his licensing “no license con similar business nearer shall be possible beyond any right, the own than would have been under strued to create terms, conditions, periods regulations the li were force cense,” Supreme license issued. and the has said: his own Court policy that no “The of the Act is clear was, as a matter person anything nature process, entitled some sort property grant as a result of the a proceedings are limited ing a license. Licenses aspect, and more fact-finding a were had duration, may years’ three a maximum of affect interests than likely to revoked, renewed. and need person. those presently occupied re Thus the channels hearing which should not entitled assignment main free a new another a trial in court.”5 “the incidents of include listening in the interest of the licensee being may be “heard” without Persons public.”3 intervene, thus become “permitted to not, no my opin- parties.”6 was entitled to The Constitution reasonably adequate ion, hear- than give to a full more prac- reasonably type, protect its interests and ing, of the trial public; and the In the the Commission. absence ticable before words, opportunity to statute, a fair are usual- licensing authorities arguments the Com- duty give any bring of hear- its facts ly sort hear- It had changing rules mission’s attention.7 license holders before ing to need grace we Appel- of licenses.4 affect the value —whether 320, Railway City 2 268, 317, v. of De 68 667. 44 S.Ct. L.Ed. Detroit United ‘hearing’ 697, 39, troit, is the evidence S.Ct. 57 L.Ed. “The 229 33 U.S. Morgan Light argument.” 1056; & v. v. United Power Co. Piedmont 480, 906, 468, States, Graham, 56 193, 298 U.S. S.Ct. 253 U.S. 40 S.Ct. Town 453, 911, 1288. 80 L.Ed. 855. 64 L.Ed. 7 importer has contested the When 3 Comm. v. Federal Communications goods the customs valuation his Station, Radio 309 U.S. Bros. Sanders service, and exercises his to have 693, 697, 642, 475, 470, 60 84 L. S.Ct. by appraisers, them valued 869, 1037. Ed. appraisers before the “is not tried Corp. 4 Lacquer & Chemical v. Cf. judi in a suit if it were issue 697; Mills, D.C.E.D.N.Y., 22 af F.2d Hedden, v. tribunal.” Auffmordt 137 cial Cir., 700; 22 F.2d certiorari 2 firmed 103, 323, 106, 310, 11 34 L. U.S. S.Ct. 617, 212, 48 S.Ct. 72 L. denied U.S. If “is afforded such Ed. he notice 674. 733. Ed. give him enables his Products Co. v. Norwegian Nitrogen respect his contention in make views 294, goods, 317, States, 316, he cannot com U.S. of the value his United Origet Hedden, 350, plain.” 358, 228, v. 77 L.Ed. U.S. S.Ct. Chicago Case, Junction U.S. 15 S.Ct. L.Ed. 130. *22 do, inquire. majority as the Pursuant the Commission’s of the court effect 1.195, therefore, Rule it was to that the-Commission’s action erroneous, present cramp the administrative evidence. chose to, did, process very mold permitted to do so. It was into the forcing file a brief argument. designed oral Noth- to avoid.8 Since make which it required. primarily more It was not formal- had to decide ly party, aspects incidentally question policy and some a trial at law, fact, including opportunity technique for cross-ex- of a trial amination, rule, clumsy may have been absent. To have been and wasteful.9 Process, Federal Cf. Communications Comm. v. istrative 51 Tale L.J. Broadcasting Co., Pottsville 309 U.S. 60 S.Ct. 84 L.Ed. 656. could have had a type comply the trial if it chosen had Requirement Davis, Op- regarding pe- Cf. with the Commission’s rule portunity to he Heard in Admin- titions to intervene.

Case Details

Case Name: National Broadcasting Co. v. Federal Communications Commission
Court Name: Court of Appeals for the D.C. Circuit
Date Published: Jan 18, 1943
Citation: 132 F.2d 545
Docket Number: 7933
Court Abbreviation: D.C. Cir.
AI-generated responses must be verified and are not legal advice.