Radio Corp of America v. United States

• Citation: 71 S.Ct. 806,341 U.S. 412,95 L.Ed. 1062
• Decision Date: 28 May 1951
• Docket Number: No. 565,565
• Parties: RADIO CORP. OF AMERICA et al. v. UNITED STATES et al
• Court: United States Supreme Court

341 U.S. 412

71 S.Ct. 806

95 L.Ed. 1062

RADIO CORP. OF AMERICA et al.

v UNITED STATES et al.

No. 565.

Argued March 26, 27, 1951.

Decided May 28, 1951.

[Syllabus from 413 intentionally omitted] John T. Cahill, New York City, for appellants Radio Corp. of America and others.

Simon H. Rifkind, New York City, for appellant Emerson Radio & Phonograph Corp.

Alfred Kamin, Chicago, Ill., for appellant Local 1031, International Brotherhood of Electrical Workers, A.F.L.

Philip B. Perlman, Solicitor Gen., Washington, D.C., for appellees United States and Federal Communications Commission.

Samuel I. Rosenman, New York City, for appellee Columbia Broadcasting Co., Inc.

A. L. Schapiro, B. C. Schiff, Chicago, Ill., for intervenor-appellant Pilot Radio Corp.

Mr. Justice BLACK delivered the opinion of the Court.

Radio Corporation of America (RCA) and two of its subsidiaries brought this action in a three-judge District Court to enjoin and set aside an order of the Federal Communications Commission prescribing standards for transmission of color television.¹ The effect of the challenged order was to reject a color system proposed by RCA and to accept one proposed by the Columbia Broadcasting System (CBS).² The basis of RCA's complaint was that the order had been entered arbitrarily and capriciously, without the support of substantial evidence, against the public interest, and contrary to law. After hearing and oral argument, the District Court entered summary judgment sustaining the Commission, one judge dissenting.³ RCA and the other plaintiffs took this direct appeal under 28 U.S.C. § 1253 and § 2101(b).

At the outset we are faced with RCA's contention that the District Court failed to review the record as a whole in determining whether the Commission's order was supported by substantial evidence; it is urged that for this reason we should summarily reverse and remand the case for further consideration by that court. If RCA's premise were correct, the course which it suggests might be wholly appropriate. For as pointed out recently, in considering the question of sufficiency of evidence to support an administrative order this Court must and does rely largely on a first reviewing court's conclusion. Universal Camera Corp. v. National Labor Relations Board, 340 U.S. 474, 71 S.Ct. 456. The present case, however, need not be returned for further scrutiny below because we are convinced that the review already afforded did not fall short of that which is required. The District Court heard oral argument for three days and deliberated for about five weeks before handing down its decision. Both the majority and dissenting opinions show a familiarity with RCA's basic contention (and the minor ones as well) that could have come only from careful study of the record as a whole. To be sure, there was a casual statement in the majority opinion susceptible of the interpretation that the court in reaching the decision made an examination of the record less complete than it should have been.⁴ Fairly construed, however, the remark, while perhaps unfortunate, is entirely consistent with that conscientious review which we are satisfied was given this record by the District Court. We therefore pass to the question of validity of the Commission's order.

All parties agree, as they must, that given a justifiable fact situation, the Commission has power under 47 U.S.C. § 303(c), (e), (f), (g), 47 U.S.C.A. § 303(c, e—g)⁵ to do precisely what it did in this case, namely, to promulgate standards for transmission of color television that result in rejecting all but one of the several proposed systems. Moreover, it cannot be contended seriously that the Commission in taking such a course was without evidential support for its refusal to adopt the RCA system at this time.⁶ The real argu- ment, advanced at great length and in many different forms, boils down to this: Viewing the record as a whole, the Commission as a matter of law erred in concluding that the CBS color system had reached a state of development which justified its acceptance to the exclusion of RCA's and that of others. Consequently, before the Commission, the District Court and here, RCA's main attempt has been to persuade that no system has yet been proven worthy of acceptance for public use, that commercial color broadcasting must be postponed awaiting inventions that will achieve more nearly perfect results.

We sustain the Commissioner's power to reject this position and hold valid the challenged order, buttressed as it is by the District Court's approval. To explain our conclusion it is unnecessary to repeat the detailed statement of facts made in the majority and minority opinions of the Commission and District Court.⁷ Nor, for present purposes, it is necessary to attempt a translation of the technical terms invented to carry meanings in the rapidly growing television industry. It will suffice to give the following brief summary of the background of the Commission's findings and what was found:

Standards for black and white television transmission were first promulgated by the Commission in 1941. RCA's complaint alleges, and all apparently agree, that 'The quality of the present (black and white) service, the improvements and reductions in price to the public that have been made, the incredible expansion of the industry as a whole, are all due to the fact that manufacturers could build upon a single set of long-range high-quality standards.'⁸ From 1941 until now the Commission has been engaged in consideration of plans and proposals looking toward promulgation of a single set of color standards.⁹ CBS apparently made quicker progress in developing an acceptable system than did others.¹⁰ It was soon attacked, however, on the ground that it was utilizing old knowledge highly useful in the realm of the physical sciences and mechanical practices but incongruous in the new fields of electronics occupied by television. This is still the core of the objection to the CBS system, together with the objection that existing receiving sets are not constructed in such a way that they can, without considerable adjustments, receive CBS color broadcasts either in color or black and white. The fact that adjustments are required before a CBS color broadcast can be received in black and white on existing sets makes this system 'incompatible' with the millions of television receivers now in the hands of the public.

There is no doubt that a 'compatible' color television system would be desirable. Recognition of this fact seems to be the controlling reason why the Commission did not long ago approve the 'incompatible' CBS system. In the past, it has postponed adoption of standards with the hope that a satisfactory 'compatible' color television system would be developed. But this time, in light of previous experience, the Commission thought that further delay in making color available was too high a price to pay for possible, 'compatibility' in the future, despite RCA's claim that it was on the verge of discovering an acceptable 'compatible' system.

The Commission's special familiarity with the problems involved in adopting standards for color television is amply attested by the record. It has determined after hearing evidence on all sides that the CBS system will provide the public with color of good quality and that television viewers should be given an opportunity to re- ceive it if they so desire.¹¹ This determination certainly cannot be held capricious. It is true that the choice between adopting standards now or at a later date was not free from difficulties. Moreover, the wisdom of the decision made can be contested as is shown in the dissenting opinions of two Commissioners. But courts should not overrule an administrative decision merely because they disagree with its wisdom.¹² We cannot say the District Court misapprehended or misapplied the proper judicial standard in holding that the Commission's order was not arbitrary or against the public interest as a matter of law.¹³

Whether Commission should have reopened its proceeedings to permit RCA to offer proof of new discoveries for its system was a question within the discretion of the Commission which we find was not abused.¹⁴ We have considered other minor contentions made by RCA but are satisfied with the way the District Court disposed of them.

The District Court's judgment sustaining the order of the Commission is

Affirmed.

Mr. Justice FRANKFURTER, dubitante.

Since I am not alone in entertaining doubts about this case they had better be stated. The ultimate issue is the function of this Court in reviewing an order of the Federal Communications Commission, adopted October 10, 1950, whereby it promulgated standards for the transmission of color television. The significance of these standards lies in the sanction of a system of 'incompatible' color television, that is, a system requiring a change in existing receivers for the reception of black and white as well as colored pictures. The system sanctioned by the Commission's order will require the addition of an appropriate gadget to the millions of outstanding receiving sets at a variously estimated, but in any event substantial, cost. From the point of view of the public interest, it is highly desirable to have a color television system that is compatible. The Commission's order sanctioning an incompatible system is based not on the scientific unattainability of a compatible system, nor even on a forecast that its feasibility is remote. It rests on the determination that inasmuch as compatibility has not yet been achieved, while a workable incompatible system has proven itself, such a system, however intrinsically unsatisfactory, ought no longer to be withheld from the public.

After hearings on the Commission's proposals were closed, the Radio Corporation of America, persistent promotor of a compatible system, suggested to the Commission further consideration of the...