The statute called for assurance of a freewheeling inquiry into the relative merits of a challenge and an incumbent licensee. However, Commission history dictated the outcome in that Commission practices revealed a strong preference to renewal with such decisions be routinely affirmed by the courts. Cowles (D) has operated a station since it was purchased in 1966. D applied for a license for renewal in October 1969. Central (P) submitted its competing application for a new construction permit to operate on the same channel in January 1970. The Commission then inquired into the issues of diversification of media ownership, best practicable service, and certain special issues related to allegations that D has moved its main studio without prior Commission approval and whether alleged mail fraud by five related corporations supported inferences adverse to D's character. The ALJ made extensive findings, and the Commission affirmed the renewal of D's license. The findings were that D would get a demerit because its main studio was not in the community served, that D was insulated from its parent's fraud charges, that P earned a clear preference on the standard comparative issue of diversification, that the need for industry stability and D's local autonomy diminished P's preference, that D devised a plan for a minority group participation and that D's overall prior service record was thoroughly acceptable. P appealed.

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