Sykes v. Jenny Wren Co.

78 F.2d 729, 64 App. D.C. 379, 104 A.L.R. 864, 1935 U.S. App. LEXIS 3842
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 27, 1935
Docket6385
StatusPublished
Cited by27 cases

This text of 78 F.2d 729 (Sykes v. Jenny Wren Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sykes v. Jenny Wren Co., 78 F.2d 729, 64 App. D.C. 379, 104 A.L.R. 864, 1935 U.S. App. LEXIS 3842 (D.C. Cir. 1935).

Opinions

MARTIN, Chief Justice.

This is an appeal from an order of the Supreme Court of the District of Columbia denying a motion made by appellants to dismiss a bill of complaint for an injunction filed by appellee against appellants. The appeal, being from an interlocutory order only, is filed by special leave of court granted under section 226 of the D. C. Code (D. C. Code 1929, T. 18, § 26).

The appellee, Jenny Wren Company, was plaintiff below, and will be named as plaintiff in this opinion. The appellants are members of the Federal Communications Commission, created and organized under the Act of June 19, 1934 (Communications Act of 1934, 48 Stat. 1064). They [730]*730will be referred to herein as the Commission. ,

The following allegations are contained in the bill of complaint filed by plaintiff in the lower court:

The plaintiff is a corporation owning and operating a radio broadcasting station, known by the call letters WREN, located in Leavenworth, Kan. It is licensed to operate upon a frequency of 1,220 kcs with power of 1,000 watts unlimited time. It broadcasts programs from its own studios located at different points within its service area, and also national programs furnished by the National Broadcasting Company by wire from studios in New York, Chicago, San Francisco, and elsewhere. Plaintiff’s broadcasting station was established in the year 1927 and has operated continuously under federal license since that time. The station renders consistent and regular broadcasting coverage to an extensive audience in and about the cities of Leavenworth, Kan.; Lawrence, Kan.; Kansas City, Kan.; St. Joseph, Mo.; Kansas City, Mo.; and throughout the metropolitan area of the latter ■ city. The station has developed an extensive listening public throughout this area and enjoys an invaluable goodwill therein. The operating expenses of the station are in excess of $75,000 a year, and since 1927 plaintiff has incurred an operating loss in excess of $100,000. In order to provide a portion of the operating expenses, plaintiff has contracted with various firms in its' regular service area and elsewhere to sponsor programs to be broadcast by plaintiff, in which service the plaintiff’s extensive goodwill is an important factor.

In addition to the plaintiff, the following licensees render broadcasting service day and night to Kansas City and the area served by plaintiff’s station, to wit: Midland Broadcasting Co., KMBC; Kansas City Star Co., WDAF; the WLBF Broadcasting Co., WLBF; Wilson Duncan, KWICC.

The advertising revenue, high-grade program material, and listening audience in and about the Kansas City area are limited, and plaintiff is in severe and active competition with each of the preceding licensees, and they are in competition with each other and the plaintiff for program material, for the attention of the available listening audience and for commercial revenue. By reason of this competition plaintiff is not able to realize any profit and its revenues for advertising are barely sufficient to enable it to maintain operation in accordance with the standards required by the defendants.

In addition to the plaintiff and the other licensees, the Commission has authorized WHB Broadcasting Company, a Missouri corporation located at Kansas City, Mo., to operate a broadcasting station known by the call letters WHB, with power of 500 watts at a frequency of 860 kcs. Station WHB is in active competition with plaintiff for material, talent, and commercial revenues. Heretofore, station WHB has been restricted by the Commission to daytime operation only. However, on April 13, 1934, station WHB filed with the Commission an application for modification of its existing license so as to permit it to operate evening hours in addition to its present daytime schedule. This application bears the form and title of an “application for radio broadcast station special experimental authorization,” but is in truth and fact an application for regular authority to permanently and regularly operate evening hours so 'far as the Commission is authorized by law to permit the same.

Upon an examination of the application of WHB, the Commission on July 24, 1934, published an order for a public hearing to be held on the application on August 27, 1934. This order was issued without notice to or service upon the plaintiff, but came to the plaintiff’s knowledge on August 2, 1934.

Paragraph 59 of the rules and regulations of the defendants provides as follows: “Any governmental department or officer, any person, firm, company, or corporation, or any State or political subdivision thereof may, at any time, more than 10 days prior to the date of any hearing, file with the Commission a petition to intervene therein in support of, or in opposition to, any application- designated for hearing. If the petition discloses a substantial interest in the subject matter of the hearing the Commission will grant the same and permit the petitioner to be heard at such hearing subject to regulations hereinafter imposed.”

On August 4, 1934, plaintiff filed with the Commission a petition setting out the foregoing facts and requesting permission to intervene in the aforesaid application of WHB. In the petition the plaintiff alleged among other things' that WHB [731]*731Broadcasting Company intended to operate during the additional hours requested by it upon a regular basis, and that the operation in the evening hours, as requested in its application, will result in active competition with the plaintiff as to the distribution of audience of listeners, advertising revenue, and available material, talent, and sponsors; that such competition will reduce the quality and extent of the service now rendered in the public interest, convenience, and necessity, of the people of Kansas City. Wherefore, plaintiff prayed that the Commission permit it to intervene in the hearing of the application of WHB in accordance with the published regulations aforesaid, and also that the outstanding notice of the hearing be amended so as to add the following specifications of the issue: “To determine what if any experiments are proposed to be conducted by the applicant in accordance with the rules and regulations of the Commission. To determine the effect of the proposed operation upon the public service rendered by existing stations serving the Kansas City area.”

The Commission on August 14, 1934, denied the petition of plaintiff to intervene as requested by it.

Thereupon, on August 17, 1934, the plaintiff brought its present case in the Supreme Court of the District of Columbia, by filing a bill in equity setting out the foregoing facts which it alleged to be true, and stating that if plaintiff he permitted to appear at the hearing to be held by the commission on the application of WHB on August 27, 1934, plaintiff would be able to show that the application of WHB is in fact intended to be one for regular license and authority to operate evening hours on a regular basis in active commercial competition with the plaintiff; that such competition will depreciate plaintiff’s revenue to the point that the operation of its broadcasting station will be at a loss with consequent depreciation of its service to the public and endangering its right to receive continued renewal of license. Plaintiff also alleged that the present broadcasting service to the Kansas City area is adequate ; that additional inroads into the plaintiff’s listening evening audience and material and talent will adversely affect the public service.

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Bluebook (online)
78 F.2d 729, 64 App. D.C. 379, 104 A.L.R. 864, 1935 U.S. App. LEXIS 3842, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sykes-v-jenny-wren-co-cadc-1935.