Under the Radio Act of 1927 the Federal Radio Commission was formally organized on March 15, 1927. It immediately set about to reorganize the AM broadcast spectrum. Because the situation was so complex, with stations operating on frequencies reserved for Canada, on split channels, and in general wherever the station owner chose to, the first act of the Commission was to continue all radio amateur and ship licenses issued by the Department of Commerce and all coastal, point to point, technical, training, and experimental radio licenses, in order that attention might be concentrated on the pressing problems within the broadcasting band.
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