The Supreme Court has at last passed squarely upon the broad powers of the Federal Radio Commission over the business of broadcasting and has upheld them in a sweeping manner in the case of Federal Radio Commission v. Nelson Bros. Bond & Mortgage Co. The general authority conferred on the Commission by the act of 1927 was enlarged in 1928 by provisions directing the Commission to maintain as great equality as possible in the allocating of broadcasting licenses among the zones created and further to distribute such licenses fairly and reasonably to the states within each zone according to population. In 1930, it appeared that Illinois had 55 per cent more than its quota of stations, while Indiana had 22 per cent under its quota. The Commission assigned to station WJKS at Gary, Indiana, operating rights on a frequency theretofore used by two Chicago stations. One of these, operated commercially by the respondent, used much National Broadcasting Company program material; the other, operated by the North Shore Church of Chicago, broadcast only religious programs. The effect of the order was to rule these stations off the air. It appeared that the Gary station had suffered from interference, and was furthermore equipped to serve its audiences with programs of unique interest.
