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07/30/64 Jefferson Radio Company, v. Federal Communications

July 30, 1964

JEFFERSON RADIO COMPANY, INC., APPELLANT

v.

FEDERAL COMMUNICATIONS COMMISSION, APPELLEE, W. D. FRINK, T/A JEFFERSON RADIO COMPANY, PERMITTEE OF STATION WIXI, IRONDALE, ALABAMA, INTERVENOR. JEFFERSON RADIO COMPANY, INC., PETITIONER,

v.

FEDERAL COMMUNICATIONS COMMISSION AND UNITED STATES OF AMERICA, RESPONDENTS, W. D. FRINK, T/A



Before WILBUR K. MILLER, FAHY and BASTIAN, Circuit Judges.

UNITED STATES COURT OF APPEALS DISTRICT OF COLUMBIA CIRCUIT. 1964.CDC.109

Jefferson Radio Company, Permittee of Station WIXI,

Irondale, Alabama, Intervenor.

Nos. 18296, 18297.

July 30, 1964.

DECISION OF THE COURT DELIVERED BY THE HONORABLE JUDGE BASTIAN

BASTIAN, Circuit Judge:

This appeal and petition for review involve a dismissal by the Federal Communications Commission of an application for assignment of a construction permit filed by the appellant-assignee.

In 1956, mutually exclusive proposals for a construction permit for a standard broadcast station were submitted by W. D. Frink, t/a Jefferson Radio Company, intervenor, and Bessemer Broadcasting Company, Inc., controlled by one Dorsey E. Newman.Following extensive hearings and proceedings before the Commission and a remand to the hearing examiner for further hearing, the applicants agreed to resolve their differences and merge their interests.

On December 19, 1959, an agreement was entered into by the two parties, providing in pertinent part that in return for an option to secure a one-half interest in Frink's proposed station at Irondale, Alabama , Bessemer would dismiss its conflicting application. The agreement further provided for the disposal by Bessemer of its interest in its station at Bessemer, Alabama . The merger agreement was duly filed with the Commission, and the subsequent sale of WEZB by Bessemer was approved.

On October 12, 1960, the Commission granted Frink's application for a construction permit and dismissed Bessemer's application, observing that "there is nothing about the arrangements and contemplated transactions between the parties which would reflect adversely upon on either Bessemer or Jefferson." Jefferson Radio Co., 299 F.C.C. 873, 877 (1960). In November 1960, Frink filed an application for license to cover his construction permit.

In January 1961, an application was filed requesting the Commission's consent to the assignment of Frink's construction permit to Jefferson Radio Company, Inc. (appellant), a newly formed corporation jointly owned by Frink and Newman, and seeking to effectuate the merger agreement between Frink and Bessemer.

Before any action was taken by the Commission on the assignment application, however, certain questions arose regarding Frink's activities and his qualifications to be a licensee. A hearing was held on Frink's license application and, on September 13, 1963, the Commission adopted the hearing examiner's initial decision that the application should be denied. The Commission further ordered Station WIXI ...


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