"(Any station license shall be revocable by the commission) Any station license may be revoked, modified, or suspended by the commission."

Said section is further amended by striking out all of the proviso and by inserting in lieu thereof the following: "[Provided, That no such order of revocation shall take effect until thirty days' notice in writing thereof, stating the cause for the proposed revocation, has been given to the parties known by the commission to be interested in such license. Any person in interest aggrieved by said order may make written application to the commission at any time within said thirty days for a hearing upon such order, and upon the filing of such written application said order of revocation shall stand suspended until the conclusion of the hearing herein directed. Notice in writing of said hearing shall be given by the commission to all the parties known to it to be interested in such license twenty days prior to the time of said hearing. Said hearing shall be conducted under such rules and in such manner as the commission may prescribe. Upon the conclusion hereof the commission may affirm, modify, or revoke said orders of revocation.]" "Provided, however, That no license shall be revoked, modified, or suspended until the licensee shall have been notified in writing of the proceedings for such revocation, modification, or suspension, the cause for the proposed action, and shall have been given reasonable opportunity to show cause why an order of revocation, modification, or suspension should not be issued."

SEC. 10. Section 16 of the radio act of 1927, as amended (U. S. C., Supp. V, title 47, sec. 96) is amended, striking out the whole of said section and by inserting in lieu thereof the following:

"[SEC. 16. Any applicant for a construction permit, for a station license, or for the renewal or modification of an existing station license whose application is refused by the licensing authority shall have the right to appeal from said decision to the Court of Appeals of the District of Columbia; and any licensee whose license is revoked by the commission shall have the right to appeal from such decision of revocation to said Court of Appeals of the District of Columbia or to the district court of the United States in which the apparatus licensed is operated, by filing with said court, within twenty days after the decision complained of is effective, notice in writing of said appeal and of the reasons therefor.]"

"[The licensing authority from whose decision an appeal is taken shall be notified of said appeal by service upon it, prior to the filing thereof, of a certified copy of said appeal and of the reasons therefor. Within twenty days after the filing of said appeal the licensing authority shall file with the court the originals or certified copies of all papers and evidence presented to it upon the original application for a permit or license, or in the hearing upon said order of revocation, and also a like copy of its decision thereon and a full statement in writing of the facts and the grounds for its decision as found and given by it. Within twenty days after the filing of said statement by the licensing authority either party may give notice to the court of his desire to adduce additional evidence. Said notice shall be in the form of a verified petition stating the nature and character of said additional evidence, and the court may thereupon order such evidence to be taken in such manner and upon such terms and conditions as it may deem proper.]"

[At the earliest convenient time the court shall hear, review, and determine the appeal upon said record and evidence, and may alter or revise the decision appealed from and enter such judgment as to it may seem just. The revision by the court shall be confined to the points set forth in the reasons of appeal.]" SEC. 16. (a) An appeal may be taken in the manner hereinafter provided to the Court of Appeals of the District of Columbia from any decision or order of the commission granting or denying, in whole or in part, an application for a station license, for the renewal or modification of a station license, for a construction permit, or from any decision or order of the commission revoking, suspending, or modifying, or refusing to revoke, suspend, or modify, a station license or a construction permit. Such appeal may be taken by any party to the proceeding in which the order was made, whether an applicant, licensee, permittee, or intervenor, except that, in case of a decision or order revoking or suspending a station license, the appeal may be taken by the licensee only.

(b) Such appeal shall be taken by filing with said court, within twenty days after the decision or order complained of is effective, a notice in writing of such appeal and a statement of the reasons therefor, together with (1) proof of personal service of a true copy of said notice and statement upon the commission, and of service thereof by registered mail upon all other parties to the proceeding in which the order complained of was made (such service to be deemed complete upon proof of the deposit in the United States mails of a duly registered envelope containing a copy of said notice and statement, addressed to the party to be served, or to his attorney of record,

at the address of either as shown by the records of the commission), and (2) a bond in such sum as the court may direct, conditioned that the party appealing will pay the costs of the proceedings if such costs be finally assessed against him. Unless a later date is specified by the commission as part of its decision or order, the decision or order complained of shall be considered to be effective as of the date on which public announcement thereof is made at the office of the commission in the city of Washington. (c) Within thirty days after the service of said notice upon it, the commission shall file with the court the originals or certified copies of all papers and evidence filed with or presented to it in the proceeding in which the decision or order appealed from was made, together with a copy of its decision or order and its findings of fact upon which its decision or order was based.

(d) Any party to the proceeding before the commission may join in the appeal or appear as a party respondent by filing with the court a notice of appearance, together with proof of service thereof by registered mail upon the party appealing and upon the commission, within thirty days after the service of said notice upon him, or any other person may be permitted by the court to intervene upon a showing of interest in the subject matter and reasonable cause for failure to appear before the commission. Any person may at any time be made a party to the proceedings by the court if, in the opinion of the court, his presence is necessary or proper to a complete determination of the cause.

(e) At the earliest convenient time the court shall hear and determine the appeal upon the record before it, and shall have power, upon such record, to enter a judgment affirming or reversing the decision or order of the commission, and, in event the court shall render a decision and enter an order reversing the decision of the commission, it shall remand the case to the commission to carry out the judgment of the court: Provided, however, That the review of the court shall be limited to questions of law and that findings of fact by the commission, if supported by substantial evidence, shall be conclusive unless it shall clearly appear that the findings of the commission are arbitrary or capricious.

The court may, subject to the foregoing limitation, upon notice to the commission and to all other parties to the appeal, after hearing, and for good cause shown, enter an order staying action of the commission under the order appealed from, in whole or in part, upon the giving of a bond by the party applying for the stay in such amount and with such terms and conditions as the court may deem proper. Pending a hearing upon the application for stay, the court may enter a temporary stay for a period of not to exceed fifteen days.

(g) The jurisdiction of the Court of Appeals of the District of Columbia under this section to review any decision or order of the commission shall be exclusive, and the judgment of said court shall be final, except that it shall be subject to review by the Supreme Court of the United States upon certiorari as provided in section 240 of Judicial Code, as amended (U. S. C., title 28, sec. 347), and that nothing in this section shall be construed to prevent the application of section 239 of the Judicial Code, as amended (relating to certification of questions of law) (U. Š. C., title 28, sec. 346), to cases in the Court of Appeals of the District of Columbia arising under this section.

SEC. 11. Section 30 of the radio act of 1927 (U. S. C., Supp. V, title 47, sec. 110) is amended by inserting in the first proviso thereof after the word "Alaska" the words "Guam, Eastern Samoa," so that the section as amended shall read: "SEC. 30. The Secretary of the Navy is hereby authorized unless restrained by international agreement, under the terms and conditions and at rates prescribed by him, which rates shall be just and reasonable, and which, upon complaint, shall be subject to review and revision by the Interstate Commerce Commission, to use all radio stations and apparatus, wherever located, owned by the United States and under the control of the Navy Department (a) for the reception and transmission of press messages offered by any newspaper published in the United States, its Territories or possessions, or published by citizens of the United States in foreign countries, or by any press association of the United States, and (b) for the reception and transmission of private commercial messages between ships, between ship and shore, between localities in Alaska and between Alaska and the continental United States: Provided, That the rates fixed for the reception and transmission of all such messages, other than press messages between the Pacific coast of the United States, Hawaii, Alaska, Guam, eastern Samoa, the Philippine Islands, and the Orient, and between the United States and the Virgin Islands, shall not be less than the rates charged by privately owned and operated stations for like messages and service: Provided further, That the right to use such stations for any of the purposes named in this section shall terminate and cease as between any countries or localities or between any locality and privately operated ships whenever privately owned and operated stations are

capable of meeting the normal communication requirements between such countries or localities or between any locality and privately operated ships, and the licensing authority shall have notified the Secretary of the Navy thereof." SEC. 12. Section 32 of the radio act of 1927 (U. S. C., Supp. V, title 47, sec. 112) is amended by striking out the last four words and by inserting in lieu thereof the following: "each and every day during which such offense occurs", so that the section as amended shall read as follows:

"SEC. 32. Any person, firm, company, or corporation failing or refusing to observe or violating any rule, regulation, restriction, or condition made or imposed by the licensing authority under the authority of this act or of any international radio convention or treaty ratified or adhered to by the United States, in addition to any other penalties provided by law, upon conviction thereof by a court of competent jurisdiction, shall be punished by a fine of not more than $500 for [each and every offense.] each and every day during which such offense occurs.' The following new section is added:

SEC. 13. No person shall broadcast by means of any radio station for which a license is required by any law of the United States, any information concerning any lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance, or any information concerning any ticket, certificate, or instrument representing any chance, share, or interest in or dependent upon the event of any lottery, gift enterprise, or similar scheme offering prizes dependent in whole or in part upon lot or chance, or any list of prizes or information concerning any list of prizes awarded by means of any such scheme, and any person so doing, upon conviction thereof, shall be fined not more than $1,000 or imprisoned not more than one year, or both.

ANALYSIS OF THE BILL

This bill amends 12 different sections of the radio act of 1927 by clarifying and amplifying provisions dealing chiefly with procedure and administration, and also contains a section forbidding the broadcast by means of any radio station, any information concerning any lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance, and fixing a penalty for such violation.

No attempt has been made in this bill to change any provision of substantive law dealing with radio, with the exception of the lottery section.

All of the provisions in the bill have been considered by the Federal Radio Commission and its counsel, and have their approval and recommendation.

Section 1 simply adds the words "the jurisdiction of" before the words "United States" in line 8 of page 1. This amendment was originally suggested by counsel for the Radio Commission.

Section 2 excludes the Virgin Islands, Porto Rico, Alaska, Guam, eastern Samoa, and the Hawaiian Islands from the equality allocations of the broadcasting zone system, but provides that other portions of the radio act shall apply to them.

The amendment to section 3 provides for a fixed term for the chairman instead of leaving it indefinite and also provides for a vice chairman to function during the absence or disability of the chairman.

Section 4 amends paragraph (f) of section 4 of the act by omitting the words "in the character of emitted signals," which do not properly belong in the paragraph, and also provides that changes in wave lengths, authorized power or in the times of operation shall not be made until after a hearing. No hearing is required by existing law. Paragraph (k) of the same section is amended by setting forth with more particularity the procedure under which the commission shall conduct its hearings. The amendment specifically authorizes the holding of public hearings, provides they may be held at any desig

nated place, and designates who may hold hearings and the authority of such persons.

A further amendment to paragraph (k) requires that the commission file with its decisions opinions or memorandum opinions stating the reasons for its decisions or orders and that where a hearing or investigation has been held it shall file findings of fact and conclusions. There is no such requirement under existing law, and the commission is permitted to file a statement of grounds for its decision within 20 days after an appeal has been taken.

In general, the procedural provisions of paragraph (k) as amended conform to similar sections in other laws.

Section 5 authorizes the commission to require the painting and/or elimination of radio towers if in its judgment such towers constitute, or may constitute a menace to air navigation.

Section 6 of the bill amends section 9 by eliminating the territories and possessions from the zone system, and also by subjecting renewals of licenses to the same restrictions governing the original granting

thereof.

Section 7 amends section 10 of the act by clarifying the purpose of the first sentence in the section. Provision is also made for the issuance of licenses, renewals, and modifications without formal written application in cases of emergency, but for terms no longer than three months. Provision is also made for the issuance of emergency permit to vessels of the United States at sea.

Section 8 limits the prohibition in section 12 of the act against granting licenses to aliens by permitting such grant when radio facilities are required by act of Congress or a treaty to which the United States is a party. This amendment is necessary because certain vessels of American registry, which are required by other provisions of the radio laws to be equipped with radio, are owned by aliens or by corporations over 20 per cent of the stock of which is owned by aliens. This amendment will remedy the present inconsistency in the laws. This amendment further restricts alienation by including indirect transfers by transfer of control of corporations.

Section 9 clarifies the language in section 14 of the act and simplifies the procedure under which licenses may be revoked, modified, or suspended.

Section 10 substitutes for section 16 of the act a simpler and more efficacious procedure in appeals.

Section 11 of the bill makes the same change as in section 2.

Section 12 amends section 32 of the act by providing the same penalty for offenses as is usual in similar cases in other governmentally regulated activities.

Section 13 is a new provision in the radio law, and provides that no person shall broadcast by means of any radio station, for which a license is required by any law of the United States, any information concerning any lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance, etc., and provides penalties for such offense, upon conviction thereof.

The committee does not think that the United States should permit any radio station, licensed and regulated by the Government. to engage in such unlawful practices.

Furthermore, the broadcast of such information is unfair to the newspapers, which are forbidden the use of the mails, if they contain such information.

Your committee recommends amendments to House bill as follows: On page 2, line 22, page 8, line 11, and page 21, line 6, strike out "Eastern" and insert "American." This is for the purpose of making the designation of that island conform to the name used in referring to Samoa.

On page 10, line 1, after the word "which" strike out the words "any officer or director is an alien" and insert the words "more than one-fifth of the officers or directors are aliens." The purpose of this amendment is to make the provision regarding directors or officers of any corporation that might directly or indirectly control licenses conform to the provision of the present law that provides that not more than one-fifth of the capital stock of the corporation may be voted by aliens or their representatives.

Your committee held hearings on this provision, at which representatives of the Navy Department and representatives of the International Telephone & Telegraph Co. appeared and discussed the matter quite fully. While it is the belief of the committee that radio communications should be kept strictly under the control of American citizens and American corporations, it is believed no serious injury or handicap will result from permitting not to exceed onefifth of the officers to be aliens or one-fifth of the capital stock to be voted by aliens. Whatever apparent objection there might be to this provision from the standpoint of war or emergency leading to war becomes of little importance when it is remembered that under the radio law of 1927 the President has full power to seize all radio stations in the United States in case of war or threat of war. To prohibit a corporation from having any alien representation whatsoever among its officers, or in the ownership of its stock would probably seriously handicap the operation of those organizations that carry on international communications and have large interests in foreign countries in connection with their international communications. Your committee believes such a restriction is entirely unnecessary.

On page 11, line 9, after the word "given" strike out the words "reasonable opportunity" and insert in lieu thereof "fifteen days". Under the present law a licensee has 30 days in which to make a showing as to why his license should not be revoked. Your committee believes that is a longer period of time than is necessary but thinks some definite period of protection should be given, especially since the House amendment to section 14 enlarges the power of the commission to the point of suspending a license.

On page 11, line 16, your committee struck out all the rest of page 11, all of pages 12, 13, 14, and 15 down to line 7 on page 15, and inserted in lieu thereof another appeal section which the committee prepared with care.

The most important difference between this amendment and the House provision is that under this amendment a licensee whose license is revoked or suspended may appeal to the local district court instead of being required to prosecute his appeal in the District Court of Appeals in the District of Columbia. This is of particular advantage to the owners of small stations located a long distance from the District of Columbia. It will result also in questions of radio law being submitted to judges of the district courts and circuit courts of