Television digest with electronic reports (Jan-Dec 1952)

Record Details:

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6 WITH ITS ANTI-TRUST “past” behind it. Paramount Pictures Corp. should now appear “clean” as a TV licensee, in eyes of FCC. At least, that’s what company’s top executives testified this week as second phase of complex “monopoly” hearing began. This week, also, Paramount president Barney Balaban enlarged on his thesis that there’s no basic conflict between TV and movies, that the two can get along “like brother and sister.” At week’s end, DuMont counsel filed motion for severance from rest of hearing, arguing that first phase of hearing (Vol. 8:3-4) proved Paramount has never controlled, and cannot control, DuMont through its 25% stock interest (electing 3 of 8-man board). But there are some at Commission who say sevei'ance motion is academic — that Commission can’t sever DuMont without pre-judging Paramount case inasmuch as 3 Paramount men sit on DuMont board. Second phase of hearing, which may last 4-8 weeks, will inquire into: (1) Renewals of licenses of KTLA, Los Angeles, and WBKB, Chicago. (2) Transfers of those 2 stations to the 2 corporations — Paramount Pictures Corp. and United Paramount Theatres — which resulted from consent decree splitup of old Paramount Pictures Inc. (3) Proposed mei'ger of ABC-UPT, involving $6,000,000 sale of WBKB to CBS. Balaban and Stanton Griffis, chairman of Paramount’s executive committee, and until recently U. S. Ambassador to Spain, testified that Paramount showed early faith in TV by investing in DuMont and other TV companies and by building Los Angeles & Chicago stations. Balaban said Paramount spends over $1,000,000 a year on TV research. Paramount has no ban on releasing movies to TV, Balaban said — -it’s just that TV hasn’t been able to pay the price. Only $35,000-$50,000 per film can be realized from 108 TV stations, compared with $125,000-$750,000 from reissues to theatres. With 1000 stations, he said, TV may be able to compete. He believes subscription TV will be next big development in TV. Personal Notes: Craig Lawrence, ex-mgr. of WCOP, Boston, & ex-v.p., Cowles Broadcasting Co., succeeds G. Richard Swift as gen. mgr. of WCBS-TV, N. Y., effective Feb. 18; Mr. Swift goes to Bolling Co., rep firm, as v.p. in charge of TV . . . Hulbert Taft Jr., president of WKRC & WKRC-TV, Cincinnati, had narrow escape Jan. 27, suffered only minor bruises, when Beechcraft plane he was piloting to Cleveland hit high tension wire coming down in fog at N. Lewisburg, O. . . . Worthington Miner, producer of CBS-TV’s Westinghouse-sponsored Studio One, quits that network April 1 to become NBC-TV producer; show continues under Donald Davis and Dorothy Matthews . . . Richard Pack, ex-WNEW, New York, joins WNRT as program mgr. March 10, succeeding Ivan Reiner, who becomes TV production supervisor; Pack was WNEW program director under gen. mgr. Ted Cott, now mgr. of NBC’s WNBT & WNBC . . . Fred Shawn, TV operations chief, named to head NBC station relations for radio, succeeding Norman Cash, now with WLWT . . . Richard A. Schlegel promoted to operations mgr., WCAU-TV, Philadelphia . . . Phil Hoffman, mgr. of ABC’s KECA-TV, Los Angeles, now reporting to Wm. Phillipson, network’s westeiTi div. director, in separation ordered by president Robert Kintner; Don Tatum now in charge of network & regional TV in Hollywood, Robert Laws in charge of network sales, Wm. Larimer named ABC national spot sales mgr. in Los Angeles . . . J. Norman Nelson, exABC western div. sales promotion mgr., named managing director, Southern California Broadcasters Assn. . . .Arthur C. Schofield, exRaymer, named sales promotion mgr. of Fort Industry Co. (Storer) stations, with headquarters in New' York under As far as movie business is concerned, Balaban said, his company moved quickly “to put its house in order” after consent decree. He said he has been a progressive business man; his theatres were first with air-conditioning, he said, and he conceived the deluxe theatre that became industry’s model. Commission counsel Fred Ford’s cross-examination tried to determine, even though Paramount has complied with anti-trust consent decree, whether Balaban’s old business philosophy is still same. Ford asked how he now felt about such outlawed movie-distribution practices as pooling agreements, setting of minimum admission prices, block booking. Balaban answered that he thought practices were good from business viewpoint, but that they were abandoned when ruled illegal. Balaban was questioned closely about past business relations with his brother John, president of Balaban & Katz theatre company and a UPT director. Ford evidently sought to find out whether there might still be liaison between the producing and distributing firms through this family relationship — despite divorcement. Ford wanted to know if Paramount’s interest in “free” TV, subscription TV (50% interest in Telemeter), theatre TV, and in conventional movie distribution might lead to conflicts — presumably to detriment of TV through stifling of competition. Which would Paramount favor in the event all such media bid for same picture? Balaban answered that he didn’t think there would be any conflict, that a certain type of film probably would go to each. Griffis related how Paramount in late 1930’s foresaw future of TV, at first failed in attempt to “ally” itself with Farnsworth, AT&T or RCA, finally bought into the then small firm of DuMont. He testified that it was purely a financial and scientific investment, with no thought of trying to control DuMont. Paramount, he said, has always considered public interest above profit making, keeping hands off companies in which it has invested. sales v.p. Tom Harker . . . James H. Ferguson, program director, WSAZ, Huntington, W. Va., moves to WSAZ-TV as sales director . . . Richard M. Allerton, ex-Free & Peters and ex-Crossley Inc., named NARTB director of research, succeeding Dr. Kenneth R. Baker, who resigned last Sept, to organize Standard Audience Measurement Service, N. Y. “Weep no tears for radio stations in markets where TV stations are operating,” reads Feb. 6 press release from BAB, which reports that confidential poll of radio station managers in the 6 cities with highest TV penetration — New York, Philadelphia, Boston, Chicago, Detroit, Los Angeles — showed 1951 was best year in history for many: 55% reported billings ahead of 1950, 15% no appreciable change, 30% less. Gains or losses ran 5% to 10% of 1950, highest gain being 45%, largest loss 24%. Said BAB president: “This survey proves again that radio has not been affected substantially by TV . . .” Dropping its third and last FM station, WFDR in New York, International Ladies Garment Workers Union estimated it had sunk some $1,500,000 into FM. It’s probable that Morris Novik, union’s radio consultant, will buy station, make it adjunct to AM station WLIB, in which he and his brother are principal stockholders. ILGWU had previously closed down Chattanooga station and sold Los Angeles outlet to KFWB. TV is blamed for 1951 closings of 91 out of Chicago’s 336 movie theatres, or more than in preceding 25 years combined, by City Collector Wm. T. Prendergast, who reported movie slump has cost municipal treasury $1,000,000 in license fees and amusement taxes in 3 years.