In the case of Federal Radio Commission v. Nelson Brothers Bond & Mortgage Co. (Station WIBO), 1932, the U.S Supreme Court upheld a decision by the Federal Radio Commission (FRC) to deny renewal of a radio broadcasting license for Station WIBO owned by Nelson Brothers Bond and Mortgage Company. The FRC had refused to renew their license due to concerns about monopolistic practices in Chicago's radio market where three stations were under common control or ownership, including Station WIBO. The court ruled that it was within the power of FRC not only to prevent monopoly but also promote diversity in programming and service viewpoints as part of public interest convenience or necessity standard under Communications Act 1927.

In the dissenting opinion for Federal Radio Commission v. Nelson Brothers Bond & Mortgage Co., Justice Stone argued that the majority's decision was a misinterpretation of the Radio Act of 1927. He believed that it did not grant absolute power to the Federal Radio Commission (FRC) to regulate radio frequencies and licenses without any judicial review or oversight. According to him, this unchecked authority could lead to potential abuses by FRC in arbitrarily denying licenses based on its own standards rather than objective criteria set out in law. Furthermore, he contended that such an interpretation would violate due process rights as there were no clear guidelines for licensees about what constitutes public interest, convenience or necessity - which are key factors considered during licensing decisions under the act. Therefore, he disagreed with majority’s view and felt courts should have a role in reviewing these administrative decisions.