Report No. DC95-9          ACTION IN DOCKET CASE           January 12, 1995


       COMMISSION DENIES MOTION TO DISMISS THE APPLICATION OF GALAXY
           COMMUNICATIONS FOR A NEW FM STATION AT SELBYVILLE, DE
                          (MM DOCKET NO. 87-504)

     The Commission has denied Anchor Broadcasting Limited
Partnership and Susan M. Bechtel's joint motion to dismiss the
application of Galaxy Communications, Inc., or to grant other
similar relief. 

     In this proceeding, the Commission granted the application
of Anchor Broadcasting Limited Partnership for a new FM station
on Channel 250A in Selbyville, DE, and denied the competing
applications of Galaxy and Bechtel.  Anchor and Galaxy received
preferences over Bechtel for proposing 100 percent integration of 
ownership into management, whereas Bechtel proposed no
integration.  Anchor was preferred over Galaxy based principally
on Anchor's minority ownership.

     On appeal, the United States Court of Appeals rejected
Galaxy's challenges to the reliability of Anchor's integration
proposal and to the constitutionality of Anchor's minority
ownership preference.  The Court, however, remanded the
proceeding for the Commission to consider Bechtel's challenge to
the validity of the integration criterion.

     While the case was on remand, the Supreme Court denied
Galaxy's petition for certiorari, which was based on Galaxy's
challenges to Anchor's integration proposal and the
constitutionality of Anchor's minority preference.  Following the
remand, the Commission reaffirmed the grant of Anchor and offered
further justification for the continued use of the integration
criterion.

     Again, Bechtel and Galaxy appealed and the Court reversed
and remanded, and vacated the grant to Anchor.  The Court held
that the integration criterion was arbitrary and capricious.  The
Court directed the Commission to consider Bechtel's application
using criteria not including integration  and left to the
Commission, in the first instance, the question of Galaxy's
continuing right to participate in the proceeding.

                                  (over)



                                    -2-

     Upon review of the joint motion to dismiss Galaxy's
application, the Commission found force to the argument that
Galaxy should no longer be deemed a party to this proceeding. 
The Commission stated that final denial of Galaxy's appeal by the
courts appears to have undercut the viability of its application,
and the elimination of integration, per se, does not appear to
assist Galaxy. 

     Nevertheless, the Commission said it was troubled by the
seeming inconsistency between this analysis and a statement made
to the Supreme Court in opposition to Galaxy's petition for
certiorari that this case was "interlocutory," which could be
read to mean that the government was representing to the Supreme
Court that Galaxy would be entitled to participate in this remand
proceeding.

     The Commission noted also that the Court of Appeals' denied
an earlier attempt by Bechtel  to terminate Galaxy's
participation in this proceeding.  Accordingly, although the
Court of Appeals left to the Commission, in the first instance,
to rule on Galaxy's status, the Commission declined to dismiss
Galaxy's application.

     Action by the Commission December 22, 1994, by Memorandum
Opinion and Order (FCC 94-336).  Chairman Hundt, Commissioners
Quello, Barrett, Ness, and Chong.

                                   -FCC-

     News Media contact: Patricia A. Chew at (202) 418-0500.