KFAY's history is generally traced to the fall of 1921, when four radio enthusiasts—Elmer Morrison, Sam Jordan, owner of an automotive and electronics shop, Floyd Rush, a veteran radio operator, and William ("Bill") Virgin—constructed a 5-watt transmitter in Morrison's garage at 1049 Ashland Street in Ashland.
[2] Effective December 1, 1921, the Department of Commerce, the current regulators of radio, adopted regulations to formally establish a broadcast service category, which set aside the wavelength of 360 meters (833 kHz) for "entertainment" broadcasting, and 485 meters (619 kHz) for "market and weather reports".
"[5] Three days later an additional newspaper report stated that Virgin was setting up the station at the family's milling site at Central Point, and was preparing to "broadcast the status of fruit and grain prospects throughout the valley".
[6] KFAY received its first license in August 1922, which was issued to the E. J. Virgin Milling Co. in Central Point, for operation on the 360 meter "entertainment" wavelength.
The owner was changed to Virgin's Radio Service, and it was announced that construction had started to set up the station on the Jackson County fairgrounds in Medford.
[13] In January 1924 Virgin's radio store and the broadcasting station were moved from the fairgrounds to the Springer-Lee location on West Main Street.
[19] In 1924, the American Telephone & Telegraph Company (AT&T), which held a number of important radio patents, announced that existing stations would have to pay for the right to use its patents, and the company started legal proceeding against infringers, beginning with a widely publicized suit against station WHN (now WEPN) in New York City.