Federal Radio Comm'n v. Nelson Brothers Bond & Mortgage Co. (Station WIBO)

289 U.S. 266, 53 S. Ct. 627, 77 L. Ed. 1166, 1933 U.S. LEXIS 179, 89 A.L.R. 406
CourtSupreme Court of the United States
DecidedMay 8, 1933
DocketNos. 657, 658, 659, 660
StatusPublished
Cited by338 cases

This text of 289 U.S. 266 (Federal Radio Comm'n v. Nelson Brothers Bond & Mortgage Co. (Station WIBO)) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Radio Comm'n v. Nelson Brothers Bond & Mortgage Co. (Station WIBO), 289 U.S. 266, 53 S. Ct. 627, 77 L. Ed. 1166, 1933 U.S. LEXIS 179, 89 A.L.R. 406 (1933).

Opinion

Mr. Chief Justice Hughes

delivered the opinion of the Court.

The Johnson-Kennedy. Radio Corporation, owning Station WJKS at Gary, Indiana, applied to the Federal •Radio Commission for modification of license so as to permit operation, with unlimited time, on the frequency of 560 kc. then assigned for the use of Station WIBO, owned by Nelson Brothers Bond & Mortgage Company, and Station WPCC, owned by the North Shore Church, both of Chicago, Illinois. . These owners appeared before the chief examiner, who, after taking voluminous testimony, recommended that the application be denied. The applicant filed exceptions and, on consideration of the evidence, the Commission granted the . application and directed a modified license to issue to the applicant authorizing the operation of Station WJKS on the frequency of 560 kc. and terminating the existing licenses theretofore issued for Stations WIBO and WPCC. On appeal, the Court of Appeals of the District of Columbia reversed the Commission’s decision upon the ground that it was “ in a legal sense arbitrary and capricious.” 61 App.D.C. 315; 62 F. (2d) 854. This Court granted certiorari.

The action of the Commission was taken under § 9 of the Radio Act of 192V (c. 169, 44 Stat. 1166), as amended . by § 5 o'f the Act of March 28, 1928, c. 263, 45 Stat. 373; *270 47 U.S.C. 89. 1 The findings of fact upon which the Commission based its order included -the following:

Gary, Indiana-, about 30 miles from Chicago, is the largest steel center in the world. It has a population of approximately 110,000 and is located in what is known as the Calumet region which has a populatioh of about 800,000, sixty per cent, of whom are foreign bom and represent over fifty nationalities. Station WJKS is thé only radio station in Gary and the programs it broadcasts are well designed to meet the needs of the foreign popula *271 tion. These programs include “ broadcasts for Hungarian, Italian, Mexican, Spanish, German, Russian, Polish, Croatian, Lithuanian, Scotch and Irish people,” and. “ are musical, educational and instructive in their nature and stress loyalty to the community and the Nation.” Programs are arranged and'supervised “to stimulate community and racial origin pride and rivalry and. to instruct in citizenship and American ideals and responsibilities.” “ Special safety prevention talks ” are given for workingmen, explaining the application of new safeguards of various types of machinery used in the steel mills. The children’s hour utilizes selections from various schools. There are “ good citizenship talks ” weekly by civic leaders. The facilities of the station are made available to the local police department and to all fraternal, charitable and religious organizations in the Calumet region, without charge. Sunday programs consist mainly “ of church service broadcasts ” including all churches and denominations desiring to participate. Although the Calumet area is served by a station at Fort Wayne and by several stations in Chicago, Station WJKS “ is the only station which serves’a substantial portion of the area with excellent or even good service.” While Station WJKS “ delivers a signal of sufficient strength to give good reception in its normal service area if not interfered with, heterodyne and cross-talk interference exist to within three miles of the transmitter and constant objection to interference is found in the good service area of the station, particularly to the south, southeast and east.” This interference has increased during the past two years.

Station WIBO is operated by Nelson Brothers Bond & Mortgage Company separately from its naortgage and real estate business. It employs 55 persons and its total monthly expenses average $17,000. In March, 1931, it earned a net profit of $9,000. It represents a total cost of $346,362.99 less a reserve for depreciation of $54,627.36, *272 and has been operated since April, 1925, Station WIBO was licensed to share time with' Station WPCC, the latter-being authorized to operate on Sundays during stated hours and by agreement has operated on certain week days in exchange for Sunday hours.

The licenses for ..Stations WIBO and WPCC, effective from September 1, 1931, to March 1,. 1932, were issued upon the following condition: “This license is issued ón a temporary basis and subject to such action as the Commission may take after hearing on the application filed by Station WJKS, Gary, Indiana,, fon the frequency 560 kc. No authority contained herein shall be- construed as a finding by the Federal Radio Commission that the operation of this station is or will be in the public interest beyond the term hereof.”

The programs broadcast by Station WIBO include a large number of chain programs originating in the National Broadcasting network and are almost entirely commercial in their nature. The same general type of programs broadcast by WIBO, including National Broadcasting chain programs, aré received in the service area of WIBO from many other stations located in the Chicago district.

Station WPCC, owned by the North Shore Church, has programs made up entirely of sermons, religio-us music and talks relating to the work and interests of the church. Contributions are solicited for the use of the church and to advance the matters in which it is interested; it is not used.by other denominations or societies. “Other stations in Chicago, including WMBI, owned by the Moody Bible Institute, devoting more time to programs of a religious nature than WPCC, are received in the service area of that station.”

. “ The State of Indiana is 2.08 units or 22 per cent, under-quota in station assignments and the State of Illinois is 12.49 units or 55 per cent, over-quota in such assignments. *273 The Fourth Zone, in which both States are located, is 21.00 units or 26 per cent, over-quota in station assignments. The granting of this application and deletion of WIBO and WPCC would reduce the over-quota status of the State of Illinois and the Fourth Zone by .88 unit and .45 unit, respectively, and would increase the quota of Indiana by .43 unit.”

Summarizing the grounds of its decision, the Commission found:

1. The applicant station (WJKS) now renders an excellent public service in the Calumet region and the granting df this application would enable that station to further extend and enlarge upon .that service.
“ 2. The deletion of Stations WIBO and WPCC would not deprive the persons within the service areas of those stations of any type of programs not how received from other stations.
“3. Objectionable interference is now experienced within the service area of'WJKS through the operation of other stations on the same and adjacent frequencies.
“ 4. The granting of this application and deletion of Stations WIBO and WPCC would not increase interference within the good service areas of any other stations.
" 5.

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289 U.S. 266, 53 S. Ct. 627, 77 L. Ed. 1166, 1933 U.S. LEXIS 179, 89 A.L.R. 406, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-radio-commn-v-nelson-brothers-bond-mortgage-co-station-wibo-scotus-1933.