Evening Star Newspaper, October 15, 1929, Page 39

SUPREME: COURT TOHEAR WGY CASE Grants Commission a Review Involving Many Major Radio Law Points. BY MARTIN CODEL. Final adjudication by the Supreme Court of the United States of the now famous WGY case, Points of the radio law and raising sev- | eral questions about the way it is being administered, is assured with the grant- ing of the Federal Radio Commission's petition for a review of the case. The sult will probably be argued some time in December. In agreeing to pass judgment on the first case testing the Federal radio au- thority ever to come before it, the Supreme Court will review a decision of the Court of Appeals of the District of Columbia. That tribunal last February ruled inst the order of the Federal Radio mmission limiting the opera- tlmu of Station WGY, Schenectady, un- the broadcasting reallocation of Nuvzmber, 1928. To Test Board’s Power. ‘The sweeping reallocation order, af- fecting radio reception throughout the United States, and the Davis equaliza- tion amendment, under which it was effected, will thus be subjected to the scrutiny of the highest court of the land. The muit over the rights of WGY itself is of secondary importance to the test of the power of the Federal Radio Commission it embraces and the defini- tions of certain features of the radio act of 1927 that may be forthcoming as & result of it. In clarifying the law and the power of the commission to administer it, the Supreme Court will help guide the fu- ture administration of radio. Not the least important question that may arise i whether a radio station can acquire property, priority or vested rights in the use of radio channels. m WGY appealed to the Court of Appeals against the commission’s or- der assigning it daylight operation only on & cleared channels which had been allocated under the territorial equaliza- tion order of the fifth zone of Western States. The station, owned by the m Electric Co., and one of the Rhighest powered in "the country, ob- M to such limited time. ‘The commission, however, had in a frevious order ruled that WGY's involving rnnny! likewise has only seven. length was one of the eight cleared channels that should be assigned, under the equal division of channels, for ex- clusive night-time use by stations in the Western zone. The station sued for unlimited opera~ tion on the channel and was upheld, chiefly on its public service merit, by the appellate court. Accordingly, the commission was ordered to permit WGY to continue operating on the channel under the terms of its previous license. In the reallocation another station owned by oenernbleemectrlc. K¢ ttedly other, though the felt in the immediate vicinity of either station . ‘The effect has been to give the first zone, in which WGY is situated, only seven cleared channels. The fifth zone This disparity [in the original reallocation continues, |while a howl is the only sound that most listeners living outside the imme- diate service ranges of both stations can tune-in on their mutual wave length. Case Extremely Involved. Since the scarcity of wave lengths makes all radio assignments relative and complicates the scientific problem of keeping channels free from hetero- dyne interference, the case was ex- tremely involved. Charles Evans Hughes, arguing before the court on behalf of WGY, did not oppose the constitutionality of the radio Bring sunshine and color into your home with “61” Quick Drying Enamel. Eighteen beautiful colorful pastel shades. Harmonious. Refined. “61” Quick Drying Enamel dries hard in_four hours. Easily applied. Being self-leveling it leaves a hard, velvety surface free from ali brush marks. A quart can will completely redecorate the furniture in a sun parlor or kitchen, Be sure to sce our THE EVENING act, but raised the point that if Con- ge= ooum aelegne nuv.homy to the o Commission to alter the optrl"ng conditions of a broadcasting station, it in effect gave the commission authority to confiscate property. ‘The Supreme Court will be asked to determine whether the commission was wrong in the interpretation of public interest, convenience and necessity un- der which WGY's time was to be cur- tailed in favor of other stations; whether the radio act gives the Court ct Ap] power to review decisions of the ral Radio Commission, and whether the Court of Appeals can dis- regard the commission’s administrative order establishing the basic pattern for the allocation of the limited frequen- cies in accordance’ with the interpre- tation it gave to the Davis equalization amendment. #ew Radio Corporation. Formation of the General Motors Ra- dio Corporation as a jointly owned sub- sidiary of the General Motors Corpora- tlon, the Radio Corporation of America and the General Electric Co. and the Westinghouse Electric & Manufacturing Co. will be definitely announced today by Alfred P. Sloan, jr, president of General Motors Corporation, and David Sarnoff, executive vice president of the Radio Corporation of America. The corporation, which, according to & joint statement, proposes “to enter the radio business in a large way,” has been organized with a capital stock of Mpyr. “Paint-Up” Says— Brighten Up Your Home Now, For Winter Quarts only $1.80 assortment of transfers which cost but little yet add a finish touch to your furniture. BUTLER-FLYNN Paint Company 607-609 C St. Phone Metropolitan 0151 STAR, WASHINGTON, $10,000,000 of preferred and $1,000,000 of common shares of no par value. The radio group is to contribute $4,900,000 in cash and to grant licenses under all its patents covering radio sound and picture receiving and reproducing sets for use in homes and automotive vehicles. General Motors Corporation is to subscribe $5,100,000 in cash, and will n.uf:eme the management of the enter- prise. ‘The radio group, it is stated, will own 49 per cent and General Motors 51 per cent of the total stock. The division in the radio group itself was not stated. Both General Electric and Westing- house contribute patents to and par- ticipate in the ownership and manage- ment of the Radio Corporation of America. For Auto Usage. That the new company will not merely devote itself to the production of radio for automobile installations— though that is part of its program, and new cars have already been installed D € with radio—is indicated in the follow- ing_statement of the two executives: “Not only do we believe that there is|& great oppounity for the development of the radio business as an adjunct to the automobile but the radio fleld in general is one that is closely related to the automobile and electric appliance business. The Radio Corporation of America will operate independently, as heretofore, both as to the manufacture and distribution of its products, and the General Motors Corporation will co- [ operate to make these new arrange- ments a success.” J. Emmert was named president of the General Motors Radio Corpora- tion, sitting on a board of directors with John Thomas Smith, vice presi- dent and general counsel of General Motors, as chairman. Others on the board were Gen. James G. 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