Television digest with electronic reports (Jan-Dec 1959)
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11
Kluge Concludes: Last week saw closing of the (leal reported here (Vol. 14:49) to be in progress between Paramount Pictures Corp. and John W. Kluge and associates for $4,000,000 eash purchase of Paramount’s 23% (335,200 shares) of Metropolitan Broadcasting Co. Paramount said it was selling to make funds available for movie production.
Kluge broadcasting interests, hitherto largely in radio, will now be important factors in control of Metropolitan’s two (independent) TV stations, WNEW-TV (Ch. 5) in New York and WTTG (Ch. 5) in Washington, D. C., as well as radio properties in New York (WNEW), Cleveland (WHK). Washington brokeiage firm of Jones, Kreeger and Co., which handled transaction for Kluge, already owns another 23.7% of Metropolitan, and its senior partner, Col. Robert C. Jones, is a member of Meti’opolitan’s board. Food broker Kluge says he will become a Metropolitan director and an active officer.
Metropolitan grossed about $16,000,000 in sales last year. Most recent statement showed cash earnings before depreciation & amortization for first 26 weeks of 1958 were $1,070,049 (69r per share) vs. $342,680 (220 same 1957 period.
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Miami Ch. 10 (Cont.) : Justice Dept, filed brief with FCC this week objecting to proposal by North Dade Video that celebrated Miami Ch. 10 “influence” case be settled after considering 4 original applicants on comparative basis at same time (Vol. 14:52). Reiterating view that L. B. Wilson is only one of 4 now eligible to compete. Justice said North Dade, Public Service TV (WPST-TV) & WKAT Inc. should be ruled out, that contest should be opened to new applicants. In separate briefs FCC assoc, counsel Edgar W. Holtz and Public Service also opposed North Dade’s motion. Meanwhile, Miami Church of Religious Science (1737 N. Bayshore Dr., Miami) applied for Ch. 10, proposing that it take over WPST-TV facilities. And start of trial of ex-FCC Comr. Richard A. Mack and Miami lawyer Thurman Whiteside on conspiracy charges in connection with case was postponed from Jan. 6 to Feb. 15 pending action on sevei’al petitions (e.g., request to move trial to Miami from D. C. Federal District Court).
“Concentration of ownership” is getting sharper scrutiny at FCC nowadays, latest evidence being bare 4-3 vote approving acquisition of remaining 51% of KNAC-TV, Ft. Smith, Ark. (Ch. 5) for $565,000 by Donald W. Reynolds, holder of 49%. Transfer from Harry Pollock was opposed by Comrs. Hyde, Bartley & Ford on ground that Reynolds will dominate city’s communications media — with ownership of sole vhf station plus AM, FM and both newspapers (Soutlnvcst American and Times Record). He also operates KLRJ-TV, Las Vegas (Ch. 2), KORK; KOLO-TV, Reno (Ch. 8) & KOLO; KGNS-TV, Laredo, Tex. (Ch. 8) ; I'adio stations KBRS, Springdale, Ark. & KHBG, Okmulgee, Okla. He also is Ch. 9 applicant in Hot Springs, Ark. and publishes newspapers in Ark., Nev., Okla. & Miss.
Religious radio station, programming to include news, sports, public service, music — but “no rock-’n’-roll” — is planned by evangelist Billy Graham. With associates, he’s formed non-profit corporation which hopes to build & operate 5000-watt station atop Black Top Mt. near his home at Montreat, N. C., one contributor already having donated $25,000 toward cost. If FCC approves and project is successful, Graham says, his “broad vision” encompasses plan for string of such stations in major cities.
New & Upcoming Stations: Year s first starter is educational KOED-TV, Tulsa (Ch. 11), which begins programming Jan. 12, making total of 36 non-commercial outlets on air. Over-all count of operating stations changes to 546 (83 uhf), with now starter and last week’s shift by WAST, formerly WTRl, Albany, N. Y. from Ch. 35 to Ch. 13.
KOED-TV has 2-kw RCA transmittci' in KOTV (Ch. (!) transmitter house and supergain antenna on KOTV tower. Ownei' Oklahoma Educational Television Authority also operates KETA, Oklahoma City (Ch. 13, educational). Key executives in charge of stations are John W. Dunn, director; Marcus W. Fuller, program director; Keith E. Staff, chief engineer.
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In our continuing survey of upcoming stations, these are latest reports from principals:
KTLE, Pocatello, Ida. (Ch. 6), with 10-kw RCA transmitter shipped Jan. 5, hopes to begin programming about April 1, reports pres. Howard D. Johnson, also pi’es. of Salt Lake City radio KNAK, which holds 70% control of TV grantee. It has transmitter house ready and remodeling of studios is underway. Only city within 100 mi. with TV outlet is Idaho Falls with KID-TV (Ch. 3). Rates not sot as yet. Rep will be Forjoe.
KHTV, Portland, Ore. (Ch. 27), delayed from fall start while awaiting appi'oval of new site on Signal Hill, hopes to start about 60 days after FCC grants change, writes pres. & 55% owner Wally Matson, also owner of CATV system there. RCA 1-kw transmitter and GE antenna formerly used by KPTV on same uhf channel are on hand in Portland. Stuart Nathanson, ex-KTRX, Kennewick, Wash., has been named sales mgr. Planning to operate as an independent, KHTV hopes to attract sponsor's because base $300 rate is far below Portland vhf’s. Rep not chosen.
Boston Ch. 5 Preliminaries: “influence” hearing in Boston Ch. 5 case is due to start March 2 after prehearing conference Jan. 26. That’s agreement reached by Jan. 5 pre-hearing conference of attorneys and examiner Judge Horace Stern. Hearing is to determine whether anyone attempted off-the-record persuasion on FCC members prior to the decision which awarded Ch. 5 to Boston Herald-Traveler's WHDH-TV (Vol. 14:31). FCC assoc, general counsel Edgar W. Holtz noted that Commission still needs to do considerable investigating to provide material for hearing, and that Harris subcommittee turned up relatively little to go on. He said his investigators have 19 more pi’ospective witnesses to interview, and he plans to supply list of witnesses Jan. 26. He estimated hearing will take about a month. Judge Stern will take advantage of Jan. 27-March 1 hiatus to take West Indies cruise with wife & daughter. As in Miami Ch. 10 case, FCC assumes burden of presenting main case. Principal attorneys involved in hearing: Holtz, for FCC gen. counsel’s office; Robert Rawson, FCC hearing div.; Win. Dempsey, WHDHTV; Richard Maguire, Greater Boston TV Corp.; James McKenna, Mass. Bay Telecasters; Wm. Roberts, Allen B. DuMont Labs; Robert Bicks, Justice Dept.
Final decisions were tonfafivciy voted by I'XX’ this week, directing staff to draft documents aflirming following initial decisions: CP for North Dakota Bestg. Inc., on Ch. 11, Fargo, N. D.; affirmation of CP of WTMA-TV, Charleston, S. C. (Ch. 4), over protest of WUSN-TV (Ch. 2); revocation of CP for KAKJ, Reno, Nev. (Ch. 4).