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Report on Chain Broadcasting, U. S. Federal Communications Commission, May, 1941, pages 93-96:



Washington,  D. C.,  March  18,  1938.   

ORDER  No.  37

    Whereas under the provisions of section 303 of the Communications Act of 1934, as amended, "the Commission, from time to time, as public convenience, interest, or necessity requires, shall--(1) Have authority to make special regulations applicable to radio stations engaged in chain broadcasting"; and
    Whereas the Commission has not at this time sufficient information in fact upon which to base regulations regarding contractual relationships between chain companies and network stations, multiple ownership of radio broadcast stations of various classes, competitive practices of all classes of stations, networks, and chain companies, and other methods by which competition may be restrained or by which restricted use of facilities may result; Now therefore,
    It is ordered, That the Federal Communications Commission undertake an immediate investigation to determine what special regulations applicable to radio stations engaged in chain or other broadcasting are required in the public interest, convenience, or necessity; such investigation to include an inquiry into the following specific matters, as well as all other pertinent and related matters, including those covered in the report on social and economic data prepared by the Engineering Department of the Federal Communications Commission and filed with the Commission on January 20, 1938:
    1.  The contractual rights and obligations of stations engaged in chain broadcasting, arising out of their network agreements.
    2.  The extent of the control of programs, advertising contracts, and other matters exercised in practice by stations engaged in chain broadcasting.
    3.  The nature and extent of network program duplication by stations serving the same area.
    4.  Contract provisions in network agreements providing for exclusive affiliation with a single network and also provisions restricting networks from affiliation with other stations in a given area.
    5.  The extent to which single chains or networks have exclusive coverage in any service area.
    6.  Program policies adopted by the various national and other networks and chains, with respect to character of programs, diversification, and accommodation of program characteristics to the requirements of the area to be served.
    7.  The number and location of stations licensed to or affiliated with each of the various national and other networks. The number of hours and the specified time which such networks control over the station affiliates and the number of hours and the specified time actually used by such networks.
    8.  The rights and obligations of stations engaged in chain broadcasting so far as advertisers having network contracts are concerned.
    9.  Nature of service rendered by each station licensed to a chain or network organization, particularly with respect to amount of program origination for network purposes by such stations.
    10.  Competitive practices of stations engaged in chain broadcasting as compared with such practices in the broadcasting industry generally.
    11.  Effect of chain broadcasting upon stations not affiliated with or licensed to any chain or network organization.
    12.  Practices or agreements in restraint of trade or furtherance of monopoly in connection with chain broadcasting.
    13.  Extent and effects of concentration of control of stations locally, regionally, or nationally in the same or affiliated interests, by means of chain or network contracts or agreements, management contracts or agreements, common ownership or other means or devices, particularly insofar as the same tends toward or results in restraint of trade or monopoly.
    It is further ordered, That hearings be held in connection with such investigation at such times and places as the Commission shall designate.
    It is further ordered, That a copy of this order be posted in the office of the Secretary and that a copy of the same be mailed to each licensee of a broadcast station and to each chain and network organization.
    By the Commission.
T. J. SLOWIESecretary.          

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