TV market rankings according to ARB total net weekly circulation, The CHAIRMAN. I believe that it would be appropriate to incorporate in the record by reference the hearing record on H.R. 7715 which was heard last year. This way we shall have a complete record and there will be no need to repeat information presented at the earlier hearings. CATV has brought America and the world vividly into the homes of millions of American people that would not have had an apportunity to watch the picture and the news and information which accompany it if it hadn't been for CATV. The future of CATV depends on its responsiveness to the general good. It is important that it does conform to reasonable standards for the general good. Our first witness this morning Mr. ROGERS of Texas. Mr. Chairman The CHAIRMAN. Mr. Rogers? Mr. ROGERS of Texas. Before we hear the witnesses, I want the record to be completely and absolutely clear on one point with regard to my bill. My bill was not introduced for the purpose of affecting or not affecting any phase of the communications industry, as such. It was introduced to spell out in plain English that the Federal Communications Commission does not have jurisdiction of the reception by people in this country, regardless of what business they are engaged in, or what social activities they are engaged in, and that is the purpose of the bill. Whatever effect it might have on any phase of the communications industry is something that comes about because of basic policy. I just wanted the record clear on this, so that there won't be any misunderstanding about it. I do not believe that any Federal agency ought to have jurisdiction of what the people in this country receive, unless we are ready to open the door for a Radio Free Europe activity in this country, and I don't think the American people would stand for that. The CHAIRMAN. I thank the gentleman for his statement. I will let him testify, too. Mr. ROGERS of Texas. Yes, sir; I will be happy to. The CHAIRMAN. Our first witness this morning will be E. William Henry, Chairman of the Federal Communications Commission. Mr. Henry, would you state who you have with you for the record, please, and then you may proceed as you see fit. STATEMENT OF HON. E. WILLIAM HENRY, CHAIRMAN, FEDERAL COMMUNICATIONS COMMISSION; ACCOMPANIED BY COMMISSIONERS ROSEL H. HYDE, ROBERT T. BARTLEY, ROBERT E. LEE, AND KENNETH A. COX Mr. HENRY. Thank you, Mr. Chairman. With me today are my colleagues, Commissioners Hyde, Bartley, Lee, and Cox. Commissioner Loevinger is out of the country as a member of a U.S. delegation on a telecommunications matter, and Commissioner Wadsworth is not feeling well, but he hopes to be here later this morning. If I may, Mr. Chairman, I have a prepared statement which I would like to read to the committee on behalf of the Commission. I do have a personal statement of my own which is an attempt to clarify one particular matter, and then Commissioner Bartley has a separate statement. If I may, I will proceed with the presentation of the Commission's statement. The CHAIRMAN. You may proceed. Mr. HENRY. I am here today to discuss with the committee the Commission's recent actions with respect to community antenna television systems which were taken by our second report and order in Docket No. 15971, released March 8, 1966, and to explain the legislative proposals which we have made on the same subject. The relationship of community antenna television systems to traditional television broadcasting has been one of the most difficult problems facing the Commission in recent years. It is also one of the most important issues, since its resolution may affect the basic structure of television for many years to come. It is for these reasonsand particularly because the Commission believes that congressional guidance is most desirable on certain aspects of the problem-that I am pleased to review the entire subject with the committee at this time. I will first discuss the action already taken by the Commission, and then take up our proposals on new legislation H.R. 13286, the bill which incorporates our own legislative proposals to the Congress, as well as our comments on H.R. 12914, introduced by Mr. Rogers. It will probably be most helpful to the committee if I limit this discussion to fundamentals, and then take up in more detail any particular questions which the committee may have. A community antenna television system, as we have defined it, and as it is commonly understood, is a facility which receives television signals off the air, either directly or by means of microwave from a more distant reception point, and distributes them by wire to subscribing members of the public who pay for the service. Our rules, for more efficient administration, exclude small systems which serve fewer than 50 subscribers, or which act merely as an apartment house antenna. Mr. Chairman, I have some charts with me which I think might be of help in explaining CATV generally to the committee, and would perhaps serve as an introduction to the subject before we take up the more detailed consideration of it. If I may, I would like to show you those charts at this time. Mr. Chairman, this is very basic material, and I apologize to those of you who have heard it all before, but I did think it helpful to talk about it in pretty basic terms first. It helps me, if nothing else. Figure 1 is an attempt to depict a typical off-the-air system, in that it takes the signal from what we have labeled "Big city TV" transmitters here in the distance. It takes those signals which are in the air off the air and transmitts them or redistributes them by wire to homes in the CATV community. It does this by means of a head end antenna, or a master antenna which is generally located on a higher point of ground and which is a tower which has individual receiving antennas on it. Each antenna picks up one particular television signal. It then takes those signals, runs them through what we have labeled a master control unit, amplifies them, and otherwise processes them. It runs them down through wires or cable, through additional control units and amplifiers, into the town. These cables are generally strung on telephone poles, and permission to do so is either obtained from the telephone compnay, or under some form of franchise or contract with the local authorities. Mr. YOUNGER. Mr. Chairman, just one question there, Mr. Henry. You say that the antenna picks up only one signal? Do they have to have a different antenna to pick up each signal? Mr. HENRY. Usually, yes, sir. I will come to that in a minute. Now, the first chart was an off-the-air system, where you simply, with a head end or master antenna, go from the master antenna into the town. Now, figure 2 depicts a CATV system which receives its signals by microwave relay. Here is the big city again, broadcasting its television signals into the air. The CATV owner, or some independent company, common carrier, sometimes, will erect the head end or master antenna which, again, through the use of individual antennas on the top of a tower, picks the distant signals out of the air, and then instead of taking it directly from the first master antenna and leading it into the town by means of wire, as we showed in the first instance, it relays it by means of microwave from one microwave tower to another, and then on into the final tower or distribution point, and then into the town. The difference between the two is simply that you need microwave to get the signals from the point where they are originally picked off the air to the point where they will be distributed, and this is simply a matter of distance from the originating city. Now, next are some photographs blown up of actual receiving antennas in CATV systems. This first photograph, figure 3, shows a high master or head end antenna tower, with a group of individual antennas up here to receive the various signals that are in the air. Each of those generally is oriented directionally and otherwise turned to receive a particular signal off the air, so that it can receive it in the best possible form. The next photograph, figure 4, is simply a closeup of one such master antenna tower, showing the actual antennas that are located on the top of the tower. I don't know how many are here I suppose 15 or 20-but each of them is tuned to a particular channel to receive it off the air. The next series of photographs show some of the operations of the CATV system once it picks the signals off the air. This next photograph, figure 5, is what I would call the master control unit, and in particular it shows the amplifiers that are used to amplify and process each incoming signal. The Commission and some of its staff visited a system in Harrisburg, Pa. Its master control unit was up on the hill right next to the master antenna and was enclosed in a stone or concrete house, and as it was explained to us, one signal was run through each of these separate amplifying units and otherwise processed so that when it came out, to be transmitted into the city, each signal was pretty much the same, or as similar as it could be made. The purpose of this is to give it extra strength, if necessary. Sometimes, I understand, they tone it down somewhat, but at any rate, it is to give each signal uniformity and strength. The next picture, figure 6, shows an employee of a CATV system stringing the cable on a telephone pole in the city to be served by the |