Broadcasting (July - Dec 1938)

Sale of Four Hearst Stations In Texas Near Consummation Stoer Goes to Texas to Handle Arrangements; Sale of KYA to Hart Group in Negotiation WITH E. M. Stoer, comptroller of Hearst Radio, in Texas to consummate arrangements, sale of the four Hearst Southwest stations for approximately $750,000 is anticipated shortly. Stations involved in the transactions are KTSA, San Antonio; KOMA, Oklahoma City; WACO, Waco, and KNOW, Austin. Contracts covering their disposition, subject to customary FCC approval, already have been drawn. Mr. Stoer has been in Fort Worth for the last fornight, conferring with Elliott Roosevelt, Hearst Radio president, and with the prospective purchasers. Meanwhile, conversations were in progress for the sale of KYA, San Francisco, at a reported figure of $150,000 to a group headed by Fred J. Hart, former owner of KQW, San Jose, and until recently president and general manager of Honolulu Broadcasting Co., operating KGMB and KHBC, Hilo. . Stoer in Charge With the recent promotion of Joseph V. Connolly, chairman of the board of Hearst Radio, as head of other Hearst enterprises, the task of consummating sales negotiations for the Hearst stations has been assigned Mr. Stoer, it was learned. Presumably, he does not plan to take up the KYA negotiations until after the Texas affairs have been cleaned up. Two of the ten Hearst stations — KEHE, Los Angeles, and WINS, New York — already are under sales contract, subject to FCC approval. KEHE was sold to Earl C. Anthony, operator of KFI and KECA, Los Angeles, for $400,000. Purchase of WINS was arranged by Col. Arthur O'Brien, prominent Washington State and Washington, D. C, attorneys for $250,000. Apparently some hitch has developed in the WINS sale. Col. O'Brien, it is learned, has not perfected the sales contract and has not been in conversation with Hearst officials for some weeks. Similarly, his Washington attorneys are said to be unaware of the status of the arrangement. Because of this, it is reported new negotiations have been undertaken looking toward the sale of the New York outlet to other parties or individuals. Here again, it is understood, Hearst officials do not desire to begin conversations until the Southwest deals are consummated. Contracts covering the sale of KTSA, CBS outlet, to Gene Howe and O. L. (Ted) Taylor, Texas publishers and broadcasters, for $300,000 already have been entered. All indications are that the arrangements will be completed shortly. Sale of WACO and KNOW, likewise CBS outlets, to S. W. Richardson and Charles F. Roeser, millionaire Fort Worth oil operators, for $50,000 each likewise was re garded as practically completed. Messrs. Richardson and Roeser are financially interested in the new Texas State Network venture, headed by Mr. Roosevelt and with Neal Barrett, Hearst Radio vicepresident, as executive vice-president. KOMA in Negotiation The fourth Southwest Hearst station, KOMA, is understood to be in process of consideration by a syndicate of individual oil operators in Oklahoma City for $350,000. Some doubt is expressed regarding this transaction, however. The only name thus far mentioned is that of Harrison Smith, Oklahoma City industrialist. It has been definitely asserted in the past by Hearst executives that WCAE, Pittsburgh, is not on the market. Owned by Hearst Consolidated Newspapers, the station is under different ownership than the others, which are 100% owned by Hearst Radio. The remaining two Hearst stations, WBAL, Baltimore, and WISN, Milwaukee, have been considered by a number of groups but up to this time all offers have been rejected. There is a possibility, it is understood, that these stations also will be withdrawn from sale. In any event, this matter has been discussed though no definite conclusion has been reached.' O'Daniel Returns to Air On Texas State Network W. LEE O'DANIEL, governordesignate of Texas, is expected to continue his commercial broadcasts in behalf of his flour brand, according to advices from Texas, although it had been reported that he would have a half-hour broadcast each Sunday night on the new Texas State Network for "Fireside Chats" and in addition purchase commercial time for his flour. Mr. O'Daniel's phenomenal campaign was waged almost entirely by radio and his statewide popularity sprang largely from commercial broadcasts over the Texas Quality Network. In behalf of the latter, it was stated Aug. 26 that several of the stations declined to give Mr. O'Daniel time for "Fireside Chats" because it was held he is in fact only a candidate for office and not until after the November elections will be governorelect. If the station or stations give him time before the November elections, it was held, then under the law they would have to give all other political candidates time under the same conditions. It was also stated on behalf of TQN that the network has been unable to clear acceptable time for Mr. O'Daniel to resume his Hillbilly Flour broadcasts. Texas State Network, of which Elliott Roosevelt is the president, is scheduled to begin operation Sept. 15 over a 23-station hookup in 22 Texas cities. Out of Season WITH the Tennessee temperature hovering around 100 degrees, W M P S, Memphis donated time Aug. 26 to a coal dealer, a Turkish bath proprietor, a furnace salesman, a fur coat store and a winter underwear salesman — to prove there are harder selling jobs than peddling ice boxes to Eskimos. Representatives of each firm were given carte blanche to deliver commercials for their respective businesses on the local broadcast, which immediately followed the NBCBlue interview with Jim Moran from Juneau, Alaska, where he ostensibly had gone to sell ice boxes to Eskimos. Educational Grant To New York City Paves Way for a Long Range School-Radio Development WITH the granting of a construction permit by the FCC Aug. 16 to the Board of Education of New York City for an educational broadcast station to operate on 41,100 kc. with 500 watts power unlimited time, which will cooperate with WNYC, New York municipal station, a long range development of educational shortwave broadcast ^programs suitable for use in metropolitan schools took definite shape. [Broadcasting, Aug. 1]. .. The new high-frequency transmitter, to be constructed by the Board of Education at 29 Green Place, Brooklyn, has been given the call letters W2XRG and will have Western , Electric equipment throughout. It will supplement and extend the experimental classroom program service supplied by WNYC during the last school year in cooperation with the High School Principals Assn. of New York City. The development carries on a two-fold program that involves increasing WNYC's facilities as well as the additional service of the special shortwave transmitter. The program is a joint venture of the Board of Education and the municipal station. Solves the Time Problem Facilities will include one medium-sized studio for dramatics and speakers and a large auditorium-studio seating 250 persons for special programs at Brooklyn Municipal High School. When completed, the studios will serve as the official studios of the Board of Education and as auxiliary studios for WNYC. The new setup will solve the problem of supplying programs to schools at times when they can be heard most conveniently. The shortwave station can rebroadcast at several different times a program which has already gone on the air. When only the facilities of WNYC were available, many classes missed the program designed for them, since classes in the same subject over the city meet at different times throughout the day. AMERICAN CIGARETTE & CIGAR Co., New York, has appointed Young & Rubicam, New York, as agency for Pall Mall cigarettes. PETER PAUL PLANS TWO SPOT SERIES PETER PAUL Inc., Naugatuck, Conn., is launching two spot series, a 37-station campaign for its Mounds candy bar and an 18-station campaign for its Ten Crown charcoal chewing gum. The series follow successful tests in seven eastern cities. The Mound list includes five oneminute transcriptions a week on WHO WTCN KOA WGST WSM WREC KMBC WOW WCSH WJAR WTIC WFBR WCKY WHK WAVE WNEW WEAN WKBN WCAE WBEN WGBI WHP WFAA KTUL WPTF WSOC WSJS KSD WBBM WWL WMBG WDBJ WBEO WJMS WHDF CJIC and an unselected Birmingham station. For its Ten Crown, the firm will place five-weekly live announcements on WTCN KFEL WGST WDAF WAAB WMAL WJR WAVE WSMB WIP WGBI WBRE WSOC WSJS WFMD WRVA WDBJ and an unselected station. Agency for both products is Platt-Forbes, New York. Texas Quality Network To Observe Anniversary TEXAS QUALITY NETWORK will celebrate its fourth anniversary Sept. 10 with a series of programs originating in the studios of member stations — WFAA, Dallas; WBAP, Fort Worth; KPRC, Houston, and WOAI, San Antonio. The annual meeting of TQN station officials was to be held in Fort Worth Aug. 30, when final plans for the celebration were to . be formulated. When the Texas Quality Network was organized in 1934, the now disbanded Southwest Broadcasting System was in operation. In spite of this, however, TQN was a success from the outset and currently carries, or has scheduled, more than 35 quarter-hour and half-hour programs for national and regional advertisers. Sustaining service includes broadcasting of the Texas Farm & Home Pro ' gram from Texas A & M College six days weekly. Lohr Denies ASCAP Deal ' BLANKET denial of published re i ports (elsewhere) that NBC is ne , gotiating with ASCAP on renewal of its music copyright contract was issued Aug. 24 by NBC President Lohr. His formal announcement follows : "It is the policy of the National Broadcasting Company in any discussion of licensing arrangements with the American Society of Composers, Authors and Publishers, to make no move independently, but to work in the closest cooperation at every step with its affiliated stations, the Indepent Radio Network Affiliates and the " National Association of Broadcasters. "A printed statement that A. L. Ashby, NBC vice-president and general counsel, had approached ASCAP regarding preliminary discussions for a separate contract with the networks is untrue and without the slightest foundation in fact." THE Lutheran Laymen's League, St. Louis, for several years a user of radio on a special MBS hookup, returns to the air this year on , Oct. 23, using 59 stations, using i t the 1-1:30 p. m. period on Sundays, with repeat at 4:30. Agency again is Kelly, Stuhlman & Zahrndt, St. Louis. Page 16 • September I, 1938 BROADCASTING • Broadcast Advertising