F ederal C ommunications C ommlsslon•• . C~~{r'·0/' • I. 20th an~1 report Fiscal year ended June 30, 1954 With introductory summar, and notations throughout of subsequent important developments. UNIT.EO STATES G.O.VERNMENT PRINTING OFFICE· WASHINGTON .1955 For sal. by the Superint."denf of Documenf., U. 5. Govemment Frina.." ORI:c. Washington 15, D. C. • Price 50 cenb COMMISSIONERS Memhers of the Federal Communications Commission (As of June 30, 1954) ROSEL H. Hn>E; Chainnan (Term expire, June 30.1959) EDWARD M. WEBSTER (Term expire.lune 3D, 1956) GEORGE E. STERLING2 (Term txpirellJune 30, 1957) FRIEDA B. HENNOCK (Term expire, June 30, 1955) ROBERT T. BARTLEY (Teem expirea June 3D, 195&) JOHN C. DOERFER' (Term expire8 June 3D, 1961) ROBERT E. LEE' (Term expires June 3D, 1960) 1Succeeded as Chairman October 4. 1954. by George C. McConnaughey. I Rcei8ned 8S of September 30, 1954; succeeded by George C. McConnaughey October 4, 1954. I Reappointed June 4, 1954; confi.rmed June 29, 1954. ~Took office October 6, 1953; ~ueceeded Poul A. Walker. II LETTER OF TRANSMITTAL FEDERAL COMMUNICATIONS COMMISSION, WMhington25, D. C., SeptembeT 29, 1954. 1'0 the Congress of the United States .. In compliance with section 4 (k) of the Communications Act of 1934, as amended in 1952, there is herewith submitted the annual report of the Federal Communications Commission for the fiscal year 1954. This report is of particular interest because it marks the 20th anni­ versary of Government regulation of electrical communication services as coordinated in and exercised by this Commission. Therefore, in addition to reporting on events of the year ending June 30, 1954, this report contains background historical reference and notations of subsequent important developments up to the time of going to press. Biographical data with respect to persons taken into the employ­ ment of the Commission during the year, together with the names of persons who have left its employ during that period, are being trans­ mitted as a nonprinted supplement to this report. Respectfully, ROSEL H. HYDE, Chairman. 1lI [ Page IV in the original document is intentionally blank 1 Table of Contents Pare INTRODUCTORY SUMMARY 1 Anniversary highlights 1 GENERAL 11 20th anniversa.ry 11 Commission .. 14 Organization chart 10 Staff organization. .. 15 Personnel ....•• 15 Appropriation and expenditures 15 Fees .......... 16 Seek less paper, more speed 16 Hearings 17 Legislation. ..... 18 Litigation ...... 20 Applications and other filings 24 Correspondence 24 Releases and publications . 24 Technical assistance activity 24 NATIONAL DEFENSE •• 27 General ....... 27 CO NELRAD program 27 Citizenship requirements 29 Other defense activities . 29 COMMON CARRIER SERVICES 31 Domestic telephone. .. 31 General ......• 31 Services and facilities . 33 Construction of facilities. 33 Discontinuance, reduction or impainnent of service 34 Speed of service ....... 34 Acquisitions and consolidations. 34 Interlocking directorates. .. 34 Reclassification of companies. 34 New techniques ...... 34 Foreign attachment cases .. 35 Bell lease and maintenance of radio equipment. 35 Domestic public land mobile radio service ... 35 Rules governing domestic public radio services . 36 Rural subscriber and short-haul toll radiotelephone services. 36 Community TV antenna servicing 37 State radio opera.tion .... 37 Coastal and Alaskan services. .. 37 v VI TABLE OF CONTENTS COMMON CARRIER SERVICES-Continued p... Domestic telephone-Continued Rates and tariffs ... 37 Tariff schedules 37 Special permissions .. 37 Inereased mes,age toll telephone rates. 38 Investigation of Bell Sy&tem rates 38 Teletypewriter exchange (TWX) service rates 38 Bell System video program transmission rates 39 Interstate telephone exchange service rates. 39 Telephone rates between United States and Alaska. 39 Telephone excise taxes reduced. 40 Other regulatory matters 40 Depreciation. ......•. 40 Separation procedures. .... 41 Interstate telephone service within large metropolitan areas. 41 Bell System Federal income taxes 41 Western Electric earnings and prices 42 Pensions and relief .... 42 Uniform system of accounts 42 Accounting research. ... 42 Plant accounting practices. 43 Restatement of plant accounts on basis of original cost 43 Continuing property records .........•.. 43 NARUC committees on depreciation and accounts and statistics. ...... 43 Annual and other reports 44 Domestic telegraph. .. 44 General ...... 44 Services and facilities 45 Speed of service 45 Western Union modernization program 46 Construction of wire facilities 47 Discontinuance, reduction or impairment of service 48 Messenger delivery limits 48 Rates and tariffs ...... 48 Tariff schedules 48 Domestic telegraph rates 48 Ticker rental charges .. 49 Other regulatory matters 49 Original cost of plant and continuing property records 49 Depreciation. ......... 49 MiscellAneous accounting matters. 49 Uniform system of accounts . 50 International telegraph and telephone . 50 General. •..... 50 International services . 51 Telegraph facilities 51 Telephone oircuits 52 Applications ... 53 l\Ierger •.... 53 Licensing of submarine cables 53 TABLE OF CONTENTS vn <OMMON CARRIER SERVICES-Conlinued International telegraph and telephone-Continued Docket cases. ......•....... 54 Western Union-Globe and Tropical contracts. 54 Western Union divestment. .•..•... 54 Buccaneer application. •... • ..... 55 Mackay circuits to Netherlands and Portugal 55 RCAC complaint on Canadian t.raffic 56 Rates and tariffs .. 56 Rate levels. ..•.... .. 56 Tariff schedules. ..•.... " 56 Contracts and divisions of tolls . 56 Other regulatory matters 56 Depreciation. ...... 56 Continuing property records 57 Relief and pensions. .•. 57 Reclassification of plant. 57 Miscellaneous accounting matterS. 58 Statistics ...... 58 General ........•...•• 58 Telephone carriers .....•.•. 58 Business and residence telephones by States 59 Land line telegraph. ..•...•. 59 Radiotelegraph and ocean~cable carriers 60 International telegraph traffic . 61 Common carrier radio facilities. • 62 Common carrier applications. .. 62 SAFETY AND SPECIAL RADIO SERVICES 65 General . 65 Marine radio services ........ 66 Safety at sea. ......... 66 The International Convention for the Safety of Life at Sea. 66 Title III, Pact II, of the Communications Act .. 67 Great Lakes Agreement and Ship Act of 1910 •• 67 Exemptions from compulsory safety requirements. 67 Distress studies. .........•... 68 Radiotelephone calling and distress frequency 68 Radio aids to navigation. ....•.... 69 General marine radio communication systems 69 Maritime fixed services ...•...... 71 Alaska fixed public and maritime mobile services 71 Radio Technical Commission for Marine Services. 71 Aviation services .•.......... 73 Aviation organizations and conferences ....• 73 Aircraft radio stations. ...••....... 74 Aeronautical enroute and aeronautical fixed radio stations 74 Civil air patrol radio stations. ... 75 Airdrome control stations ........ 75 Aeronautical mobile utility stations. ..• 75 Aeronautical navigational aid radio stations 75 Flying school radio stations ...• 75 Flight test radio stations. .••.... 76 Aeronautical advisory radio stations. .• 76 Aeronautical public service radio stations 76 TABLE OF CONTENTS SAFETY AND SPECIAL RADIO SERVICES-Continued Pa.. Public safety radio services 76 Police radio service •...... 77 Fire radio service. ....... 77 Forestry-conservation radio service 78 Highway maintenance radio service. 78 Special emergency radio service. 79 State guard radio service ....• 79 Disaster communications service .... 79 Industrial and land transportation radio services . 80 Citizens radio service . 81 Amateur radio service . 82 Enforcement unit. .. 85 Statistics ....•. 85 Stations in safety and special radio services 85 Applications in safety and special radio services 87 Transmitters in safety and special radio services 88 BROADCAST SERVICES .....• 89 Television (TV) broadcast service 89 Authorizations ...... 89 Commercial ..•.... 89 Noncommercial educational 90 Color TV .••..... 90 UHF problems. ..... 91 "Satellite" and "booster" TV stations. 92 Community antenna TV systems 92 Subscription TV ...•. 93 "Party in interest" protests 93 Three-year TV license. .. 93 TV assignment table ... 94 Standard (AM) broadcast service. 94 Authorizations ....... 94 North American Regional Broadcasting Agreement (NARBA) 94 Clear channels .... 95 Revision of "10% rule" .....••.. 96 540 kilocycles ............. 97 Frequency modulation (FM) broadcast service . 97 Commercial ...•.......... 97 "Functional music," "storecasting," and "transit radio" . 97 Noncommercial educationtLl FM 98 Facsimile broadcast service 99 Experimental broadcast services .• 99 Experimental TV stations ... 99 Developmental broadcast stations 99 Experimental facsimile broadcast stations 99 Auxiliary broadcast services ••... 99 Remote pickup broadcast stations 100 Aural broadcast BTL stations 100 FM broadcast intercity relay stations 100 TV pickup stations .••. 100 Television STL stations. 101 TV intercity relay stations. 101 TABLE OF CONTENTS IX 8ROADCAST SERVICES-Continued p ... Hearings . 101 Multiple ownership rules 103 Po1itical broadcasts. .. 103 Other broadcast rule changes. 104 Statistics ....••... 105 Broadcast authorizations 105 Broadcasting since 1949 . 105 Broadcast applications 106 Pending broadcast applications . 107 Receiving sets .......• 109 Networks . 109 Broadcast industry financial data. 110 fiELD ENGINEERING AND MONITORING 11& General . 11& Monitoring ...... 116 Monitoring