Federal Radio Commission

The Federal Radio Commission (FRC) was a government agency that regulated United States radio communication from its creation in 1927 until 1934, when it was succeeded by the Federal Communications Commission (FCC). The FRC was established by the Radio Act of 1927, which replaced the Radio Act of 1912 after the earlier law was found to lack sufficient oversight provisions, especially for regulating broadcasting stations. In addition to increased regulatory powers, the FRC introduced the standard that, in order to receive a license, a radio station had to be shown to be "in the public interest, convenience, or necessity".

Previous regulation Radio Act of 1912

Although radio communication (originally known as "wireless telegraphy") was developed in the late 1890s, it was largely unregulated in the United States until the passage of the Radio Act of 1912. This law set up procedures for the Department of Commerce to license radio transmitters, which initially consisted primarily of maritime and amateur stations. The broadcasting of news and entertainment to the general public, which began to be developed early 1920s, was not foreseen by this legislation."An Act to regulate radio communication", approved August 13, 1912, Radio Communication Laws of the United States (July 27, 1914, edition), pages 6-14.

The first Commerce Department regulations specifically addressing broadcasting were adopted on December 1, 1921, when two wavelengths were set aside for stations making broadcasts intended for a general audience: 360 meters (833 kHz) for "entertainment", and 485 meters (619 kHz) for "market and weather reports"."Amendments to Regulations", Radio Service Bulletin, January 3, 1922, page 10. The number of broadcasting stations grew tremendously in 1922, numbering over 500 in the United States by the end of the year. The number of reserved transmitting frequencies also expanded, and by 1925, the "broadcast band" consisted of the frequencies from 550 kHz to 1500 kHz, in ten kHz steps.

Herbert Hoover became the secretary of commerce in March 1921, and thus assumed primary responsibility for shaping radio broadcasting during its earliest days, which was a difficult task in a fast-changing environment. To aid decision-making, he sponsored a series of four national conferences from 1922 to 1925, where invited industry leaders participated in setting standards for radio in general.

Legal challenges

During his tenure Hoover was aware that some of his actions were on shaky legal ground, given the limited powers assigned to him by the 1912 Act. In particular, in 1921 the department had tried to refuse to issue a renewal license to a point-to-point radiotelegraph station in New York City, operated by the Intercity Radio Company, on the grounds that it was causing excessive interference to earlier radiotelegraph stations operating nearby. Intercity appealed, and in 1923 the Court of Appeals of the District of Columbia sided with Intercity, stating the 1912 Act did not provide for licensing decisions at "the discretion of an executive officer". The Department of Commerce planned to request a review by the Supreme Court, but the case was rendered moot when Intercity decided to shut down the New York City station. Still, it had raised significant questions about the extent of Hoover's authority.Intercity Radio Company case, The Law of Radio Communication by Stephen Davis, 1927, page 37.

A second, ultimately successful, challenge occurred in 1926. The Zenith Radio Corporation in late 1925 established a high-powered radio station, WJAZ, with a transmitter site outside Chicago, Illinois. After being informed that there might not be an available frequency for the station to use, company president E. F. McDonald proposed that, because they only wanted to broadcast two hours a week, they would be happy with an assignment on 930 kHz that was limited to 10:00 p.m. to midnight Central time on Thursday nights, when the only other station on the frequency, KOA in Denver, Colorado, was normally off the air. Despite McDonald's initial expression of satisfaction with a schedule of just two hours per week, his tone soon changed. At this time the United States had an informal agreement with Canada that six designated AM band frequencies would be used exclusively by Canadian stations. In early January 1926, McDonald directed WJAZ to move from its 930 kHz assignment to 910 kHz, one of the restricted Canadian frequencies, and begin expanded hours of operation.The Beginning of Broadcast Regulation in the Twentieth Century by Marvin R. Bensman (Boone NC: McFarland & Co., 2000) pp.159-160.

Invoking the Intercity Radio Company case rulings, Zenith ignored the Commerce Department's order to return WJAZ to its assigned frequency. On January 20, 1926, a federal court suit, United States versus Zenith Radio Corporation and E. F. McDonald, was filed in Chicago. McDonald expected a narrow ruling in his favor, claiming that only a small number of stations, including WJAZ, held the "Class D Developmental" licenses that were free from normal restrictions. However, the actual outcome was sweeping. On April 16, 1926, Judge James H. Wilkerson's ruling stated that, under the 1912 Act, the Commerce Department in fact could not limit the number of broadcasting licenses issued, or designate station frequencies. The government reviewed whether to try to appeal this decision, but Acting Attorney General William J. Donovan's analysis concurred with the court's decision."Federal Regulation of Radio Broadcasting" (July 8, 1926) by Acting Attorney General William J. Donovan, Official Opinions of the Attorneys General of the United States, Volume 35, 1929, pages 126-132.

The immediate result was that, until Congress passed new legislation, the Commerce Department could not limit the number of new broadcasting stations, which were now free to operate on any frequency and use any power they wished. Many stations showed restraint, while others took the opportunity to increase powers and move to new frequencies (derisively called "wave jumping"). The extent to which this new environment resulted in disruption for the average listener is difficult to judge, but the term "chaos" started to appear in discussions."Radio Chaos to End Tomorrow Night", Washington (D.C.) Evening Star, April 22, 1927, page 2.

Federal Radio Commission

Radio Act of 1927

Prior to the early 1926 adverse ruling on the Commerce Department's regulatory authority, there had been numerous efforts in the U.S. Congress to replace the Radio Act of 1912 with a more comprehensive bill, but none of these efforts made much headway. The need for new legislation gained additional importance because, in the absence of federal regulation, stations were taking their individual disputes to the courts, which began to render decisions favoring incumbent stations. This effectively was granting established stations "property rights" in the use of their assignments, which the government wanted to avoid, because it generally considered the radio spectrum to be a public resource.

Despite the recognition that new legislation was needed, there was a lack of consensus whether it should increase the authority of the Secretary of Commerce, which opponents argued would create a too-powerful "Radio Czar", or if an independent regulatory body was needed, which some disputed was unneeded and overly expansive. The legislation ultimately passed was known as the Dill-White Bill, which was proposed and sponsored by Senator Clarence Dill (D-Washington) and Representative Wallace H. White Jr. (R-Maine) on December 21, 1926. It was brought to the Senate floor on January 28, 1927, and, as a compromise, specified that a five member commission would be given the power to reorganize radio regulation, but most of its duties would end after one year. After a month of debates this bill was passed on February 18, 1927, as the Radio Act of 1927,Radio Act of 1927 (Public Law 69-632), February 23, 1927, pages 186-200. and signed into law by President Calvin Coolidge on February 23, 1927."The Federal Radio Commission" History of Communications-electronics in the United States by Captain Linwood S. Howeth, 1963, pages 505-506. The Commission's organizational meeting was held on March 15.

Commissioners

The Radio Act of 1927 subdivided the country into five geographical zones, and specified that one commissioner would be appointed who resided within each zone. Terms were initially for up to six years, although this was later reduced to one year, and no more than three commissioners could be members of the same political party. The FRC's commissioners, by zone, from 1927 to 1934 were:

Orestes H. Caldwell (New York), (editor of Radio Retailing magazine); Caldwell resigned February 23, 1929, and was replaced by W. D. L. Starbuck (New York), Patent Attorney, appointed May 1929. William H. G. Bullard (Pennsylvania); Bullard died November 24, 1927, and was replaced by Ira E. Robinson (West Virginia), State Supreme Court judge, who resigned January 1932, and was succeeded by the March 28, 1932, appointment of Col. Thad H. Brown (Ohio), lawyer and politico holding various offices including Ohio's Secretary of State, who served for the remainder of the FRC's existence and was appointed to the FCC in 1934. Eugene O. Sykes (Mississippi) served the entire time the FRC existed and was appointed to the FCC in 1934. Henry Adams Bellows (Minnesota); Bellows was forced to resign October 31, 1927, and later became chairman of the National Association of Broadcasters. He was replaced by Sam Pickard (Kansas), who resigned January 31, 1929, and was succeeded by Charles McKinley Saltzman (Iowa), who was appointed May 1929, resigned in June 1932, and was succeeded by James H. Hanley John F. Dillon (California); Dillon died October 8, 1927, and was replaced by Harold A. Lafount (Utah); Lafount stayed on the FRC until its replacement by the FCC, but he was not appointed to that body. In the late 1930s he became president of the National Independent Broadcasters.

The five initial appointments, made by President Coolidge on March 2, 1927, were: Admiral William H. G. Bullard as chairman, Colonel John F. Dillon, Eugene O. Sykes, Henry A. Bellows, and Orestes H. Caldwell. Bullard, Dillon and Sykes were confirmed on March 4, but action on Bellows and Caldwell was deferred, so they initially participated without pay. In October 1927 Dillon died and Bellows resigned. During the next month Bullard died, and Harold Lafount and Sam Pickard were appointed. It was not until March 1928, after Caldwell was approved by a one vote margin and Ira E. Robinson was appointed as chairman, that all five commissioner posts were filled with confirmed members.

Responsibilities

To rectify the limitations of the 1912 act, the FRC was given the power to grant and deny licenses, assign station frequencies and power levels, and issue fines for violations. The opening paragraph of the Radio Act of 1927 summarized its objectives as: "...this Act is intended to regulate all forms of interstate and foreign radio transmissions and communications within the United States, its Territories and possessions; to maintain the control of the United States over all the channels of interstate and foreign radio transmission; and to provide for the use of such channels, but not the ownership thereof, by individuals, firms, or corporations, for limited periods of time, under licenses granted by Federal authority, and no such license shall be construed to create any right, beyond the terms, conditions, and periods of the license."