Broadcasting (July - Dec 1939)

Petition by MBS Seeks FCC Limit On Net Contracts Declares NBC Crosley Pact Bar to Cincinnati Market A NEW PLEA that the FCC forthwith adopt a regulation restraining stations from contracting with NBC and CBS for affiliations beyond a specified date, premised largely on the negotiation of the new five-year contract of NBC with WLW and WSAI, Cincinnati, was made to the FCC July 6 by MBS. Urging the FCC to grant the oral motion made by Louis G. Caldwell, MBS attorney, when the socalled network-monopoly hearings were adjourned April 19, the MBS plea charged that NBC had negotiated the contract with the Crosley stations "for the purpose of preventing Mutual from having a satisfactory outlet in the Cincinnati area and of handicapping and injuring petitioner in its operation of a national network". The petition added that if NBC is successful in negotiating a Blue network contract with WCKY, Cincinnati, it would eliminate the possibility of MBS using any comparable facility in Cincinnati. Monopoly Alleged The original MBS motion, which precipitated a furore, has not been acted upon either by the NetworkMonopoly Committee or the FCC itself. While no formal announcement was made, it was pointed out that the FCC, upon its own motion, can take whatever action it regards as necessary with respect to exclusive affiliation contracts. The committee does not plan to submit its report to the full FCC until fall. It is generally expected that it will contain legislative recommendations dealing with licensing of networks as such, guaranteed time clearance and exclusive network affiliation requirements. The new MBS plea restated the reasons orally given by Mr. Caldwell for the suggested regulation terminating network affiliation agreements beyond a specified date, to be determined by the Commission. The petition bore the signatures of Mr. Caldwell, who is the MBS WGN counsel, Frank D. Scott, MBS-WOR counsel, and Percy H. Russell, Mr. Caldwell's associate. It was suggested the date be specified to allow sufficient time for the FCC committee to prepare a report, for parties to file exceptions and present oral argument, and for the Commission to announce its conclusions and issue regulations applicable to stations engaged in chain broadcasting. Among other things, the petition recited that NBC and CBS are engaged in securing and attempting to secure renewals of existing contracts for five-year periods, which in many instances would continue the existing situation until 1946. The petition alleged that most of the major network contracts contain provisions which, because of the limited number of stations in many important cities, "tend toward monopoly, restrain competition and prevent both the growth of existing networks and the establishment of new networks." It was contended (Continued on Page 73) Radio Itself EIGHT programs devoted to the story of radio itself, titled So This Is Radio, will be presented over CBS starting July 17, 10-10:30 p. m. (EDST). Columbia has assigned Norman Corwin, noted for his Words Without Music and Columbia Workshop productions, to write and direct the series. The programs are designed to take radio listeners behind-the-scenes and in dramatic form to answer questions most frequently asked by the audience. Adam Hat Signs Fights STARTING with the Henry Armstrong-Lou Ambers lightweight title bout Aug. 22, the entire fallwinter series of prizefights promoted by Mike Jacobs, comprising at least 16 encounters, will be sponsored exclusively over NBC-Blue by Adam Hat Stores Inc. (chain). Sam Taub and Bill Stern, who have handled the matches for the last two years, will announce. AN AFFILIATION of WCKY, Cincinnati, with CBS was consummated Julv 12 under an agreement whereby the new 50,000-watt NBC outlet joins the network this fall, probably Oct. 1. WKRC, CBSowned station in the city, will become an independent outlet and will probably be sold. Simultaneously, it was announced that WMT, Cedar Rapids, la., also has signed with CBS and will leave the NBC-Blue as of next May 1. Owned by the Des Moines Register & Tribune interests, also operating WNAX, Yankton, and KRNT, Des Moines, CBS outlets, and KSO, Des Moines, Blue outlet, WMT will become a part of a new CBS group in the Iowa-South Dakota area. The CBS-WCKY affiliation is an outgrowth of the controversy provoked by the new five-year contract of WLW and its sister station, WSAI, with NBC. Whereas all three Cincinnati stations have been optional Red and Blue outlets, the new NBC arrangement with the Crosley stations precluded WCKY's use for Red accounts. [Broadcasting, July 1]. New NBC Plan Rejected L. B. Wilson, president of WCKY, signed the agreement for the new affiliation with Edward Klauber, executive vice-president of CBS, both of whom were in Atlantic City for the NAB convention. The transaction followed preliminary conversations in New York the preceding week with CBS President William S. Paley, Mr. Klauber, Herbert V. Akerberg, station relations vice-president, and other CBS officials. Immediately following the signing of the WLW-NBC contract last month, Mr. Wilson rejected the NBC proposal that he become an exclusive Blue outlet. Because his present affiliation contract with NBC has until 1941 to run, there was some speculation as to possible Prefers Radio GEORGE W. TRENDLE efforts by NBC to resist the WCKY-CBS affiliation. Former Commissioner E. 0. Sykes, counsel for Mr. Wilson, participated in the negotiations. It is the view of WCKY, it is understood, that NBC, by virtue of its arrangement with the Crosely stations under which WCKY is denied Red programs, already has breached its affiliation contract with the station. It is expected that the rate for WCKY as a CBS outlet, will be $425 per hour. Its new transmitter already is installed and undergoing program tests, with regular operation expected to begin shortly, changing over from its present 10,000 watts. There were several conferences between Mr. Wilson and his attorney, Judge Sykes, with NBC President Lenox R. Lohr and other officials of that network prior to signing of the agreement July 12. It was reported that an alternative proposition was made for continued affiliation with the Blue but that it had been rejected. In the original conversations with Mr. Wilson, CBS discussed possible sale of WKRC to him as part of the transaction. This idea, it is understood, has been dropped, and the plan now is to dispose of the station in some other fashion after the new affiliation becomes effective. The affiliation of WMT with CBS was agreed to in conferences of CBS officials with Gardner Cowles Jr., president, and Luther L. Hill, vice-president of the Iowa Broadcasting System. As a basic CBS outlet, the station will have an evening hour rate of $225. JAMES W. BARRETT, head of Press-Radio Bureau, is offering a new service to stations throughout the country in the form of a weekly "news letter", which is timed for about 12 minutes and can be made available to sponsors. Charges are based on station power. Trendle Deserts Theatre for Radio RESIGNING as president and executive head of United Detroit Theatres Corp., one of the Midwest's most important theatre chains, George W. Trendle, president of King-Trendle Broadcasting Co., licensee of WXYZ, Detroit, and operator of WOOD-WASH, Grand Rapids, has announced that he will hereafter devote his entire time to his radio interests. "The nearness of television to actual commercial use and increasing responsibilities in the broadcasting field" are given officially as the reason for his retirement from the theatrical field. Mr. Trendle is also head of The Lone Ranger Inc., producer of the famous serial of the same name and also of the Green Hornet serial. He was the originator of both. He also is head of the Michigan Radio Network. It was announced that WXYZ is anticipating a power increase in the near future and has acquired a 20-acre site for a new transmitter. Mr. Trendle entered radio in 1930 j with John H. King, his associate in the theatre business. They purchased WXYZ, and it has continuously been under his direction. The station has long been prominent for its original programs. Yacht Race to Honolulu Is Covered for Seven-Up SEVEN-UP Bottling Co.. Los Angeles (beveraees) through Buchanan & Co., that city, on July 4 started for two weeks sponsoring' nightIv quarter-hour reports of the San Francisco-Honolulu yacht race now under way, on KNX, Hollywood. The programs were shortwaved from aboard the 100-foot schooner Gennnna. with Jimmy Wallinq'ton, CBS announcer, as commentator, and Alden Packard, engineer. Don Lee-Mutual network, as a sustaining special events feature, is also broadcasting nightly quarter-hour reports of the 14-day race direct from the 106-foot vawl Contender. Programs are shortwaved to amateur station W6QD, Hermosq Beach, Cal., and relayed to KHJ, , Los Aneeles, for release to the network. Dick Loynes, of Long Beach, Cal.. owner of the yacht and Don i Wallace, radio operator on board, participate in the nightly broadcasts along with the crew. Appeals WRNL Grant CLAIMING it would be seviously affected by loss of revenue. WRTD. Richmond, Va.. on Julv 10 appealed to the U. S. Court of Appeals for the District of Columbia from the FCC decision March 20 granting WRNL, Richmond, an increase from day to full time, and increase in power from 500 to 1,000 watts. Operation of WRNL as proposed, said Eliot C. Lovett, counsel for the Times-Dispatch Radio Corp., owner of WRTD, would adversely affect it by depriving it of program material and operating revenue and would "seriously jeopardize or actually destroy the ability of WRTD to carry on in the public interest". Beyond that, it was alleged that the decision technically is not good allocation practice and is contrary to the standards adopted by the FCC, as well as the provision of law which provides for fair, efficient and equitable distribution of broadcasting facilities. Wilson Signs CBS Affiliation For 50 Kw. WCKY, Cincinnati Page 28 • July 15, 1939 BROADCASTING • Broadcast Advertising