mony and evidence may be obtained by granting immunity from Federal or State prosecution to those witnesses who invoke their privilege against self-incrimination, when the proceedings are an inquiry into alleged violations of these acts.

I will now state the legislative purpose of these proceedings and the legal basis upon which this subcommittee's authority and jurisdiction herein is founded. Before doing so, I should like to stress that every effort will be made to insure that all constitutional rights and privileges of each witness will be preserved and protected during the course of these hearings. Witnesses will be permitted to be accompanied by counsel, who may advise them of their constitutional rights.

The hearings beginning today have four principal purposes to ascertain whether:

First, has station WBBM-TV, Chicago, violated the Federal Communications Act of 1934, as amended.

Second, has this station also violated the Federal Trade Commission Act.

Third, have each of these commissions adequately administered the provisions in their organic statutes which pertain to the facts and circumstances involved in the proceedings before us.

Fourth, do the pertinent statutes and regulations contain provisions adequate to protect the public interest in the light of the testimony and evidence we will receive during the course of these proceedings. Before outlining the authority of this subcommitte to conduct these proceedings, I shall briefly summarize certain evidence already received by the subcommittee.

On November 1 and 2, 1967, station WBBM-TV broadcast as a news special a program called "Pot Party at a University."

In addition to being advertised in the Northwestern, a Northwestern University publication, this program was also advertised on November 1, 1967, in advance of its telecast in newspapers, including the Chicago Tribune, Daily News, American, and the Sun Times. These advertisements represented that the pot party to be, and which was telecast, occurred "in the heart of the university complex at a Chicago area university complex."

At this point I would like to place in the record copies of those advertisements.

Is there objection to their inclusion at this point in the record? Mr. LISHMAN. Mr. Chairman.

Mr. Moss. Mr. Lishman.

Mr. LISHMAN. There are several types of newspaper items that appear here:

(1) the broad category of advertising;

(2) a review of the pot party; and

(3) a news item concerning the pot party.

I would suggest that at the appropriate place later-
Mr. Moss. The ad only will be included at this point.

(Following is the four-column ad which appeared in the November 1, 1967, issue of the previously referred to Chicago papers:)

Mr. DINGELL. Mr. Chairman, I believe it would be appropriate to note the newspapers alluded to are in general circulation and in interstate commerce, which I think will help set the jurisdiction of the committee.

Mr. Moss. I think that is important, and the record will so indicate. Prior to the telecast, the pot party filmed was previewed by the station for the benefit of a newspaperman from one of the leading Chicago dailies. The station refused to give Northwestern University officials a preview. The telecast script states in its opening lines, as follows:

Now, WBBM Television News presents a "Pot Party at a University," Part 1 of a two-part series on marijuana smoking-why they do it and its effects. Occasionally a black mark will appear on your screen or the screen may go blank for a few seconds. This is to protect the identity of the persons involved.

Now, here's reporter Jack Missett with Part 1 of "Pot Party at a University":

(MUSIC)

This is a party on the campus of Northwestern University in Evanston. It appears to be a typical college get-together, with Northwestern students, a teacher and two college drop-outs. But this party is different and what makes it unusual is the "refreshments". For instead of just having soft drinks or beer at the party these young people are smoking marijuana—marijuana—or pot— is not just part of the party, it's the main topic of conversation.

(MUSIC AND BACKGROUND CONVERSATION OR COMMENTS)

In the eyes of the law you are witnessing a crime. Under Illinois law possession of marihuana is a crime punishable by imprisonment for two to ten years for first offense, and up to life imprisonment for repeaters.

According to evidence already received by the subcommittee, the pot party did not take place on the campus of Northwestern University. It was not typical, but was staged by the station. Establishing background shots were taken on the university grounds without the knowledge or consent of the university and telecast to further the deception that the party was on campus when in fact it was not. In fact we have proof that the party was filmed by the station in a privately owned residence and not university-controlled housing.

The first week in November was the beginning of a prime rating period. Ratings during this period are the yardstick in a highly competitive business.

Prior to this time we have evidence indicating that the news ratings of WBBM-TV were below those of its chief competitor. Allegations have been received by the subcommittee that the pot party was staged by WBBM-TV as a news special at this particular time in order to improve its news ratings posture and thereby increase its advertising

revenue.

The foregoing evidence and allegations indicate that station WBBM-TV has violated both the Federal Communications Act and the Federal Trade Commission Act. A false and deceptive broadcast. was telecast over a channel licensed only to serve the public interest. A rigged event was deceptively held out to the viewing public as a bona fide news special. The motive behind such rigging appears to have been the obtaining of a competitive advantage over station WBBM's chief Chicago competitor by getting a boost in its news ratings as a result of the widely touted rigged programs.

Under Illinois law, as stated in the telecast, possession of marihuana is a crime punishable by imprisonment for 2 to 10 years for a first offense, and up to life imprisonment for repeaters. Inducing others to possess or use marihuana is punishable up to 25 years' imprisonment. Under narcotics laws the pot party rigging would also constitute a Federal criminal offense.

Allegations have been received by the subcommittee that representatives and employees of station WBBM-TV arranged the pot party and induced participants to possess and use marihuana and hashish.

Testimony concerning these allegations will be received during the course of these proceedings. Such testimony will not be made public except upon the authorization of the House Committee on Interstate and Foreign Commerce.

The Special Subcommittee on Investigations has been duly established to assist the House Committee on Interstate and Foreign Commerce in carrying out the duties imposed by section 136 of the Reorganization Act of 1946 upon the standing committees of the Congress to "exercise continuous watchfulness of the execution by the administrative agencies concerned of any laws, the subject matter of which is within the jurisdiction of such committee." Communications is a subject matter within the jurisdiction of the Committee on Interstate and Foreign Commerce.

House Resolution No. 168, 90th Congress, first session, agreed to February 27, 1967, contains authorization implementing the Legislative Reorganization Act. A copy of this resolution has been inserted in this hearing record.

Such resolution authorizes the parent committee, or any subcommittee thereof to make investigations and studies into a number of matters including "*** ownership, control, and operations of communications and related facilities*** and the administration by the Federal Communications Commission and the Director of Telecommunications Management of statutes which they administer."

The resolution also authorizes this subcommittee to make investigations and studies into "advertising, fair competition, and labeling; and the administration by the Federal Trade Commission of the statutes which it administers."

The resolution further provides for the purposes of such investigations and studies the committee, or any subcommittee thereof, may sit and act during the present Congress at such times and places within or outside the United States, whether the House has recessed or has adjourned, to hold such hearings, and to require, by subpena or otherwise, the attendance and testimony of such witnesses and the production of such books, records, correspondence, memorandums, papers, and documents, as it deems necessary. Subpenas may be issued under the signature of the chairman of the committee or any member of the committee designated by him, and may be served by any person designated by such chairman or member.

The subcommittee in fulfilling the duties and responsibilities entrusted to it is proceeding on the basis that it will fully, and fairly examine the pertinent evidence and operations of the Federal Communications Commission and the Federal Trade Commission under the

statutes which each administers, and the operations of communications facilities.

In the performance of its task, the subcommittee has no desire and does not intend to ruin the good reputations of any innocent persons. In accomplishing its legislative duty, the subcommittee will observe scrupulously all the fundamental safeguards afforded by our Constitution to corporations and individuals.

In keeping with the comments of the opening statement, the further evidence of the advance preparation, the rigged nature of the show, as borne out by the news stories and the reviews, will be inserted in the record at this point, if there is no objection. (The material referred to follows:)

[From the Chicago Sun-Times, Nov. 2, 1967]

NU Vows PROBE OF STUDENTS ON TV MARIJUANA SHOW

(By Fred Frailey)

Northwestern University Thursday night promised an investigation of students portrayed smoking marijuana in a television documentary on college marijuana smoking.

The first of the two-part WBBM-TV film Wednesday night showed a pot party in progress reportedly on or near the NU campus and included interviews with several of the participants. Their faces were partially obscured and identities were kept secret by the station.

However, the university, in a statement released after the program, said it has asked its counsel to seek the help of State's Atty. John J. Stamos and U.S. Atty. Edward V. Hanrahan in instituting possible legal action against students who attended the party.

In its statement, the school said the party was "staged by the participants and others for the station's filming" in an Evanston apartment.

Possession of marijuana, the statement noted, is a violation of university regulations as well as state and federal law. The staging of such illegal activity was itself illegal, it said.

Earlier, a university official hinted that state or federal pressure might be brought to bear on the CBS-owned television outlet.

"There is a question of state and federal law involved here and narcotics or other officials might become involved," said Roland J. Hinz, vice president and dean of students at Northwestern. "I don't see how they could help but take notice of this."

Hinz said he is upset because "an event of this kind that is in violation of the law has been set up for filming purposes."

The program was produced and narrated by WBBM-TV reporter Jack Missett, a 1968 graduate of Northwestern's Madill School of Journalism.

The first segment of the documentary, lasting six and three-quarter minutes, viewed a marijuana cigaret and a pipe of pot allegedly being passed around by Northwestern students, a faculty member and two NU drop-outs.

Two of the participants then told reporter Missett they saw nothing wrong in the "past-time" and a third said marijuana is "better than booze."

The second half of the show, dealing with medical and legal aspects of marijuana consumption, will be presented Thursday night.

Robert Ferrante, news director of WBBM-TV, said the program was filmed three weeks ago.

"We worked on it for more than a month," said Ferrante. "So many people say these things don't really go on as much as they are led to believe, but we know differently. Our intention is to inform the public about what is going on, not to embarrass Northwestern. We withheld a great deal of information on two other universities in Chicago because we felt it did not reflect on this particular report and the problem in general."

Ferrante said Franklin M. Kreml, an NU vice president in charge of public relations, called him "to bring a few facts to our attention. The facts are very interesting, but they don't have any bearing on the program and I made the decision to go on the air with it."