29. Question: You are aware, of course, that section 136 of the Legislative Reorganization Act of 1946, which is included in the Rules of the House of Representatives, provides that to assist Congress in "appraising the administration of the laws" each standing committee of the House of Representatives shall "exercise continuous watchfulness" of the execution of the laws by the administrative agencies of the Government within the jurisdiction of the committee?

Answer: Yes.

30. Question: Without getting into the merits of the application by the American Broadcasting Company for Commission approval of the transfer of 17 broadcasting stations to a new corporate subsidiary of International Telephone and Telegraph Company, and without getting into the mental processes by which the Commission members arrived at their various conclusions in this pending case-Docket No. 16828-I should like to ask a few questions for the purpose of appraising the Commission's administration of the law relating to approval of station transfers.

Answer: No answer required.

31. Question: It is correct, is it not, that by section 309 (h) of the Com munications Act a broadcasting license must be issued subject to the express conditions, among others, that the license shall not vest in the licensee any right to operate the station nor any right in the use of the frequencies designated in the license beyond the term thereof, nor, in any other manner than authorized therein; and that neither the license nor the right guaranteed thereunder shall be assigned or otherwise transferred in violation of the Act?

'Answer: Yes.

32. Question: It is also correct, is it not, that under section 310(b) of the Act no license may be transferred except upon a finding by the Commission that the public interest, convenience and necessity will be served thereby?

Answer: Yes.

33. Question: In the ABC-ITT transfer proceeding, who is representing the public interest?

Answer: The Broadcast Bureau and the Justice Department have been made parties to the hearing for the purpose of developing and presenting evidence on the issues. The Commission will make the final determination on the matter of the public interest.

34. Question: How many days of hearing have been held on the ABC application?

Answer: Two days of hearing before the Commission en banc were held in September 1966. A further hearing before an Examiner commenced on March 23, 1967 with a prehearing conference. A further conference is scheduled for April 7, and the hearing is scheduled to begin on April 10, 1967.

35. Question: Does the Commission accept at face value the statements made by a transfer applicant?

Answer: See answer to Question 11.

36. Question: What procedure does the Commission follow in testing the accuracy and completeness of the statements and evidence submitted on behalf of a transfer applicant?

Answer: See answer to Question 11.

37. Question: Does the Commission have any standards, policies, or criteria respecting what proof must be placed in the record to support its finding that the proposed transfer will serve the public interest?

Answer: The Commission's transfer application forms are designed to elicit the information necessary to pass on the qualifications of the parties and necessary to ascertain whether a grant of the application would be in the public interest. (See attached copy of the Commission's transfer and assignment forms.) The Commission considers the application together with all other pertinent information, under its general public interest standard. If questions are raised warranting a hearing it is conducted under Section 309, and the applicant normally has the burden of proof.

38. Question: Does the Commission take the position that because no one opposes a transfer application that it may automatically make a finding that the transfer is in the public interest?

Answer: No.

39. Question: Who has the burden of proof of showing that the proposed transfer will serve the public interest?

Answer: The applicants.

40. Question: Where the application is uncontested, who keeps the applicant's feet to the fire to make sure he sustains the burden of proving that the transfer is in the public interest?

Answer: The Commission, its staff and interested third parties. See also answer to Question 16.

41. Question: Does the Commission in a transfer proceeding require any proof concerning the value of the depreciated original cost of the tangible capital facilities involved?

Answer: Yes.

42. Question: Is it a fact that often in station transfers the asset having the greatest value is the station's exclusive broadcast license?

Answer: Yes.

43. Question: And this value in turn depends upon the station's advertising revenues?

Answer: Yes.

44. Question: Does the Commission make any effort to ascertain whether the barter and sale of an exclusive license will improve the quality of broadcasting service offered to the public or whether such barter and sale is primarily for the private commercial advantage of the transferor and transferee?

Answer: The Commission does review transfer applications to ascertain whether the proposal of the buyer is in the public interest and whether the buyer is qualified to be a licensee. The Commission does not make a comparative study to attempt to ascertain whether the proposed service of the buyer qualitatively is superior to the service of the seller.

THESE ARE THE ANSWERS TO QUESTIONS 45-57, RELATING TO EDUCATIONAL TELEVISION 45. Question: How many applications for educational television station licenses are pending before the Commission[

Answer: There are currently 20 pending applications for new educational television facilities.

46. Question: How many of these applications involve educational television broadcasting facilities under Section 390 of the Act?

Answer: (a) 16 applications request funds under Section 390 of the Act.

(b) 4 do not involve Section 390 grants.

47. Question: Does the Commission grant an educational television station license after a hearing and a finding that the grant is in the public interest? Answer: No. Normally, formal public hearings at which evidence is adduced are ordinarily not required. Generally, the public interest finding is made upon examination of the application.

48. Question: In cases where Sections 390-397 of the Act are not applicable, does the Commission ascertain what effect the grant will have upon existing educational broadcasting in the local area or region involved?

Answer: In the absence of any objections to the grant, the Commission will grant an application if it finds the applicant legally, technically, financially and otherwise qualified and if the grant will serve the public interest.

49. Question: Or does the Commission simply make the grant on the basis of first come first served?

Answer: If the Commission finds the applicant qualified and that grant will serve the public interest. However, any interested party may file objections to the grant or any qualified applicant, a competing application. See answer to Q.

55.

50. Question: In other words, is the license grant to a non-federally aided licensee based upon a finding that the applicant is financially and technically qualified to operate an educational broadcasting station without regard to how such stations will fit into the local existing setup of educational broadcasting? Answer: A grant is made on a finding that the public interest will be served. As to the procedural safeguards, see answer to Question 55.

51. Question: Who represents the public interest in proceedings for the issuance of an educational station broadcasting license?

Answer: The Commission-In addition, the statutory scheme provides that interested party or parties who establish legal standing may also represent the public interest. The Commission also considers comments and objections filed by citizens.

52. Question: In cases not involving federal grants of financial assistance, does the Commission require evidence that the applicant will engage strictly in educational as distinguished from commercial operations?

Answer fes-only non-commercial, non-profit educational institutions or foundations may file for educational channels and the Commission's Rules require that such stations must provide a non-profit, non-commercial television broadcast service, i.e. transmission of educational, cultural, entertainment and instructional programs. However, educational institutions may apply for commercial channels and are subject to the Rules applicable to commercial broadcasters if they choose to operate commercially on commercial channels.

53. Question: Please supply for the record a list of all educational broadcasting licenses issued to profit-making entities.

Answer: None.

54. Question: In license application proceedings for educational television broadcasting licenses where no federally aided facilities are involved, what standards, policies or criteria are used by the Commission to ascertain that the applicants' proposed operation will be coordinated with the operations of other existing and projected educational television broadcasting facilities in the locality, region or state involved?

Answer: There are no such criteria. The Commission acts upon the individual application. Thereafter, it is for the licensee to determine whether it will coordinate with existing or projected educational stations.

55. Question: Does the Commission provide an opportunity for local, regional. and state educational broadcasters to be heard in application proceedings for an educational station license?

Answer: Yes-The Communications Act and the Commission's Rules provide that an applicant for a new television station must give notice of the filing of the application by publication in a local newspaper of general circulation. The purpose of these provisions is to provide opportunity to all interested parties to make known to the Commission any objections to the application. In this connection, the Commission may not act upon any new application until 39 days after public notice of the filing of the application.

56. Question: Is there anyone in the Commission charged with the responsibility of ascertaining whether the impact of a new educational broadcasting station will be beneficial or harmful to the existing setup of educational broadcasting facilities?

Answer: If objections are directed to any application, they will be considered by the Commission in making its public interest determination.

57. Question: Does the Commission make any finding in this respect and, if so, who adduces the evidence upon which such finding is based?

Answer: If objections are filed, the Commission will determine whether the application can be granted without a formal evidentiary hearing. If such a hearing is required, evidence is adduced by the parties to the hearing who would normally be the applicant, the objector and the Broadcast Bureau.

58. Question: Does the Commission conduct hearings on license renewal applications?

Answer: Yes, where a substantial question is present.

59. Question: Explain the procedure followed in determining whether the public interest will be served by a station license renewal.

Answer: A detailed analysis is made on the technical, programming, financial and other information contained in the renewal application, as well as all other pertinent information available. The facilities of slightly over half of the stations in each renewal group are inspected by Commission field engineers prior to the license expiration date. Inspection reports are reviewed to determine whether any uncleared citations for rule violations are outstanding. The Commission's complaint files are also reviewed.

60. Question: How does the Commission ascertain whether licensee applying for renewal has faithfully performed the promises he made respecting public service broadcasting when the original license was issued to him?

Answer: Programming performance, as reflected in the pending renewal, is compared with prior programming proposals made by the licensee. The renewal forms require such information.

61. Question: Is it Commission practice to automatically renew licenses without a hearing unless there is an opposing application?

Answer: No. Applicant must be found qualified (see answers to questions 59 and 62).

62. Question: What purpose is served by requiring station licensees to supply information concerning their public service programming in their renewal applications if the Commission makes no use of this information in granting a license renewal?

Answer: Licenses are renewed when the Commission det rmines that the renewal applicant is technically, legally, financially and otherwise qualified under the following standards: Technical-the equipment of this station is being operated pursuant to the terms of the license and the Commission's rules and regulations; Legal-non-technical provisions of the Act and rules have been complied with and there is no outstanding questions concerning the applicant's character qualifications; Financial-the applicant appears capable of financing the continued operation of the station; Programming—the application is reviewed to ascertain the measures that the applicant has taken to determine the needs and interests of his community and service area and the manner in which he proposes to meet those needs and interests. The applicant is required to report on past and proposed programs and commercial practices. On October 24, 1966 the Commission sent the attached Commercial Practices Questionnaire to all broadcast licensees. (Ex. 1) Where the applicant is found otherwise qualified but the response submitted raises a doubt as to whether a renewal applicant's commercial policy is in fact developed in terms of service to the community, the license is renewed for a three year term, but the licensee is required to submit a report reviewing its commercial practices normally over a period of 18 months from the date of the grant.

63. Question: Is the determination of the question of license renewal left to the subjective judgment of the Chief of the Broadcast Bureau?

Answer: Yes, but in doing so he is required to follow the policies and guidelines established by the Commission. (See responses to Questions 59, 60, 62 thru 67.)

64. Question: What purpose is served by requiring station licensees to supply information concerning their public service programming in their renewal applications if the Commission makes no use of this information in granting a license renewal?

Answer: The Commission has no broad "public service" program category. For reporting purposes, programs are classified as: Agricultural; Entertainment; News; Public Affairs; Religious; Instructional and Sports. Sub-categories are: Editorials, Political programs and Educational Institution programs. See also answer to question 62.

65. Question: What action does the Commission take to insure that a station is adequately serving the needs of its local audience?

Answer: Stations are required to publish and broadcast a local public notice of the filing of the renewal application. This notice invites comments from the public. Complaints are evaluated and applicants are requested to comment on substantial complaints. Stations are required to report to the Commission substantial changes in programming occurring during the license terms. Past, and proposed programming is reviewed at renewal time. See also answer to question 62.

66. Question: If it appears that a licensee has devoted little or no broadcasting time to news, public affairs, religious, or instructional programming, what public interest consideration justifies the renewal of his license?

Answer: Many stations in larger markets serviced by a number of broadcast facilities may have specialized program formats. The need for a specialized program format must be justified by the applicant in his response to the questions relating to survey of community needs (Part I, Section IV-A of the renewal application).

67. Question: If it appears that a licensee has operated his station principally as a juke-box or as an advertising billboard, what public considerations justify the renewal of his license?

Answer: An all music station would have to justify the format in terms of community needs as reflected by his survey (See Part I, Section IV-A of the application.) Similarly, a station broadcasting an apparently excessive amount of commercial matter is required to justify his commercial policy. In this connection please refer to the attached Commercial Practices Questionnaire and the answer to question 62.

68. Question: What requirements must be met before a broadcast tower may be constructed?

Answer: An application for a construction permit must be filed and granted by the Commission. The application must contain information about the location and height of the proposed tower, its cost, and other information about the applicant which will permit the Commission to determine the legal, technical, financial, and other qualifications of the applicant. The Commission must also

find that grant of the application would serve the public interest, convenience and necessity.

69. Question: How many air accidents and fatalities have been caused by aircraft collisions with towers?

Answer: See attachment A.

70. Question: Besides meeting FAA Requirements, does the FCC have any provisions concerning the safety of towers?

Answer: No.

71. Question: The regulation as to towers contained in 47 U.S.C. 303 (q) pertains entirely to air navigation safety, doesn't it?

Answer: Yes.

72. Question: Does the FCC, aside from air navigation safety rules of its own or the FAA's, have any regulations as to the structural strength of the tower, materials used in its construction, or location with respect to proximity to densely populated areas?

Answer: No, not with respect to safety. The Commission's rules concerning signal strength over the community to be served do affect location of the tower, of course.

73. Question: Does the FCC require any certain size acreage as a base for the installation of towers?

Answer: No.

74. Question: Does the FCC have any regulations concerning height of towers in densely populated areas?

Answer: No.

75. Question: Since there are no FCC regulations concerning structural safety, size of lot upon which tower is based, and height in densely populated areas-the safety of residents nearby rests with local zoning laws, is that correct?

Answer: Essentially, yes. However, the Commission must consider any objections raised against a particular proposal in making its determination of the public interest.

76. Question: How many towers collapsed from any cause other than aircraft collision within the past five years?

Answer: See the answer to question 84.

77. Question: Are you aware of any collapses, other than those caused by aircraft?

Answer: See the answer to question 84.

78. Question: Does the FCC have the power under the Communications Act to require certain standards as to structural safety of such towers?

Answer: The Commission does probably have power under the Communications Act to require standards as to structural safety of towers. Should there be a question concerning the structural safety of a tower raised by an interested party, the Commission would consider the problem in making a finding of the public interest.

79. Question: Under section 319 (a) of the Communications Act the Commission has authority to insist that the application for a construction permit set forth such information as the Commission may require. Why doesn't the Commission require the applicant to furnish information concerning the structural and material safety of the broadcasting tower?

Answer: The Commission has not found it necessary to adopt general rules in this area because state and local governments almost without exception have requirements which must be met before authorization to construct a tower will be given locally.

80. Question [a] : Under section 319 (c) of the Act, upon completion of construction if it is made to appear that the terms, conditions and obligations of the construction permit have been fully met and that no cause or circumstance arising or first coming to the attention of the Commission since the granting of the construction permit which made the operation of such station against the public interest, the Commission shall issue a license to the permit holder for operation of the station. Has the Commission imposed a condition or obligation in the permit that the broadcasting tower satisfy safety standards, either as to engineering, design or materials?

Answer [a]: No.

Question [b]: Has the Commission ever granted a station license to a permit holder after the broadcasting tower involved has collapsed or been struck by aircraft?

Answer [b]: If the facility was licensed at the time it collapsed or was struck by aircraft, the licensee may rebuild the tower without any new authorization