In 1921 the Commerce Department had tried to refuse to issue a renewal license to a point-to-point radiotelegraph station in New York City, operated by the Intercity Radio Company.
Commerce planned to request a review by the Supreme Court, but the case was rendered moot when Intercity decided to shut down the New York City station.
[3] On April 16, 1926, Judge James H. Wilkerson ruled in Zenith's favor,[4] which led to the Commerce Department largely losing control over broadcasting stations.
This reauthorization included a provision, known as the "Davis Amendment" after its sponsor Representative Ewin L. Davis (D-Tennessee), that required "a fair and equitable allocation of licenses, wave lengths, time for operation, and station power to each of the States, the District of Columbia, the Territories and possessions of the United States within each zone, according to population".
The law also transferred jurisdiction over communications common carriers, such as telephone and telegraph companies, from the Interstate Commerce Commission to the FCC.