Summary

Portrait of Felix Frankfurter Felix Frankfurter Radio Station Wow v. Johnson — Opinion of the Court

But even if the Commission should decide that the federal interest requires this station to be operated by those who have obtained it by constructive fraud, I think the judgment of the state court of Nebraska would still be good. It has the power not only to compel restitution of property obtained from its corporations in violation of its laws but if by federal proceedings or otherwise the wrongdoers have put some part of the value of this station beyond their power to recapture, the State has the right to compel them to account for its value.
Source: Wikisource

Portrait of Felix Frankfurter Felix Frankfurter Radio Station Wow v. Johnson — Opinion of the Court

But insofar as the Nebraska decree orders the parties 'to do all things necessary' to secure the return of the license, it hampers the freedom of the Society not to continue in broadcasting and to restrict itself, as it properly may, to its insurance business. Equally does it prevent WOW from opposing a return to the Society, or, as the United States suggests, from seeking another license of its own. These are restrictions not merely upon the private rights of parties as to whom a State court may make appropriate findings of fraud.
Source: Wikisource

Portrait of Felix Frankfurter Felix Frankfurter Radio Station Wow v. Johnson — Opinion of the Court

Severance of the licensed facilities from the license so precipitously that the Federal Communications Commission is deprived of the opportunity of enabling the two to be kept together needlessly disables the Commission from protecting the public interest committed to its charge. This presents a practical and not a hypothetical situation. To carry out abruptly a State decree separating licensed facilities from the license deprives the public of those advantages of broadcasting which presumably led the Commission to grant a license.
Source: Wikisource

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