Broadcasting (Jan - June 1940)

Concealed Control Cited in Revoking 6 Texas Stations Other Actions Are Foreseen As FCC Continues Probe PURSUING its plan to ferret out purported hidden ownership or control of broadcast stations, the FCC Feb. 8 issued orders of revocation of licenses against five local Texas stations, alleging undisclosed interest in them by Rev. James G. Ulmer, Texas broadcaster-minister, and Roy G. Terry, chief owner and manager of KOCA, Kilgore. The stations cited, with the revocations effective Feb. 24 unless they petition for hearing, are KSAM, Huntsville; KAND, Corsicana; KRBA, Lufkin; KTBC, Austin; KNET, Palestine. On Feb. 13, the FCC ordered revocation of the license of KGKB, Tyler, Tex., on grounds of "hidden ownership, operation and control" effective March 1. The FCC said an investigation revealed that actual control has been in the hands of Rev. Ulmer. Scrutinizing Others Also The revocation orders follow others issued in recent months by the FCC under its comparatively new legal procedure. The license of KUMA, Yuma, Ariz., recently was revoked [Broadcasting, Feb. 1] and proceedings are in progress involving somewhat parallel actions against several other stations. Questions of control involving WSAL Salisbury, Md., WQDM, St. Albans, Vt., WBAX, Wilkes-Barre, Pa., also are under scrutiny. In connection wth the Texas actions, the Commission announced that the orders resulted from for 0.^,"^^^*^^^*^°" instituted Jan. lb. The onset of this proceeding It was learned, grew out of a visit to Texas by Ralph L. Walker, FCC principal attorney. Upon his return to Washington in latter December Hugh B. Hutchison FCC broadcast attorney on Jan. 26 was dispatched to the Lone Star State for an investigation. Recorded Ownership The orders specify that the licenses of the five stations, all is"associations" as distinguished from corporations, be revoked effective Feb. 24 "because of applicants' failure to make full disclosure to the Commission concerning ownership, management, financing and control of stations." Under FCC procedure, the applicants have 15 days in which to request hearing, with the revocation orders automatically stayed pending the outcome of the hearings. Ihe i'CC said it is "indicated" that original constniction permits and licenses for the five stations "ZL ^f^^^ Commission upon false and fraudulent statements and representations and because of the failure of the applicants to make full disclosure to the Commission concerning the financing o± station construction and operation, as well as ownership, management and control thereof, in violation of the law, and that, had the actual facts in this connection been made known to the Commission, it would have been warranted in relusing to license these stations " Dr. Ulnier appears of record in the Commission files as 48% owner Drawn for Broadcasting by Sid Hix "Better Hold Tight Now, Pete! She's Ready to Smash the Bottle of Champagne!" of KGKB, Tyler, with Mrs. Ulmer owning another 12% and as a director with 5% ownership in KGFI, Brownsville, in which Erol E. Wilson and Ernest E. Wilson are recorded as 44% stockholders each. Mr. Terry, manager of KOCA, Kilgore, is listed as 40% owner of that station, with Mrs. Terry as owner of an additional 40%. KSAM, Huntsville, is shown as having been dedicated Oct. 2, 1938 and as having been licensed to Sam Houston Broadcasting Assn. Listed as members of this company are H. G. Webster, banker, president; Dr. C. N. Shaver, president of Sam Houston State Teachers College, and W. Bryan Shaver, his son. KAND, Corsicana, is licensed to Navarro Broadcasting Assn., of which J. C. West is president and is listed with Frederick Slauson as sole owner. Mr. West is also owner of Wolf Brand Products, Corsicana, a food manufacturing firm. The station went on the air in 1937. KRBA, Lufkin, is licensed to Red Lands Broadcasting Assn., and went on the air May 5, 1938. Members of the association are listed as Ben T. Wilson, auto dealer; R. A. Corbett, wholesale oil and gas distributor, and Thomas W. Baker, road engineer and banker. One Station Sold KTBC, Austin, is licensed to State Capitol Broadcasting Assn., and went on the air Aug. 1, 1939. One-third owners each are listed as R. B. Anderson, former president of the State Tax Commission ; R. A. Stuart, former State Senator, now practicing law in Fort Worth, and A. W. Walker Jr., professor of law at the U of Texas. Last month an application was filed for sale of their holdings for $50,000 to J. M. West, owner of the Dallas Dispatch Journal and the Austin Daily Tribune and one of the wealthiest industralists in the State. KNET, Palestine, is licensed to the Palestine Broadcasting Assn., in which the principals are listed as Bonner Frizzell, superintendent of the local schools ; William M. Keller, insurance agent, and John Calvin Welch, minister. NAB Convention Date WHILE San Francisco is definitely set as the locale for the 1940 NAB convention, the national political conventions may play havoc with original plans for a mid-July meeting. When the NAB last summer selected the West Coast city, it recommended July as the month, but left to President Neville Miller the actual designation of dates. An early August convention is indicated by the Democratic National Committee in Chicago. The Republicans plan their convention probably in advance of that date and perhaps in the same city. Because many broadcasters, especially at networks, would be loathe to leave their desks during preparations for the convention, it is considered likely the NAB convention will be held after the Democratic meeting — probably in August. Dr. Ulmer was also named as being "directly or indirectly" interested in the ownership, control or operation of a proposed station in Greenville, Tex., in a petition for rehearing filed Aug. 20, 1937 by the Louis G. Caldwell law firm. The Commission had granted a new local to the Hunt Broadcasting Assn., Greenville, to operate on 1200 kc. with 100 watts. Protest was entered on behalf of WOAI, San Antonio, a 50,000 watter on 1190 kc, on grounds of potential interference. The grant was later revoked when one of the partners in the association died, thus legally dissolving the association. In the Caldwell petition the charge was made that Dr. Ulmer, in addition to his known ownership in KGKB, was also interested in KNET, KAND, KOCA and KLUF, Galveston, and in various other applications pending at the time. Washington Givei New Local Outle Heller Application Grantee New Local for Kingsport A FIFTH station for Washingtc was authorized by the FCC Feb. ] when it granted the application ( Lawrence J. Heller, local attorne; for a 250-watt unlimited time st; tion on 1310 kc. The FCC last 0 tober had denied the application c technical grounds. Simultaneously, the Commissio authorized a new station in King port, Tenn., on application ( Kingsport Broadcasting Co. T? station will operate on 1370 kc, 2.! watts unlimited time. Principals ai C. P. Edwards Jr., Kingsport ii surance man, and Howard Lon present Postmaster and forme managing editor of the Kingspo)] Times. Synchronous Amplifier The new Washington gran which had been hotly contested, als, authorized a 50-watt synchronou amplifier in addition to its regula 250 watt assignment to afford fu metropolitan area coverage. Th exact transmitter sites, studio loc; tion and type of antennas to be en ployed are subject to FCC approva It is the first grant of a Iocs "booster" in the same city eve authorized, and may be the fore runner of similar authorizations ii cities which cannot be adequate]; covered by 250-watt stations. There is also pending an applica tion of the Capital Broadcastin; Co., for a new local in Washingtoi to employ the same facilities grant ed Mr. Heller. Edwin M. Spenc secretary treasurer of the NAB would hold an interest in this com pany. Filed with the FCC Feb. 13 wat an application for a new station ii Kingsport by Kingsul Broadcastinj^fc Corp., a subsidiary of Kingsu Theatres. It seeks assignment oi 1420 kc with 250 watts fulltime. if' i. jti h KTUC Sale Approved SALE of KTUC, Tucson, by the Tucson Motor Service Co. to the Tucson Broadcasting Co. for $20,000 was approved Feb. 13 by the FCC. Officers and stockholders of the new licensee company are Dow Ben Roush, Tucson, president 39 1/3% stockholder; John Merino Safford, Ariz., part owner of KGLU vice-president and 39 1/3% stockholder; Carleton W. Morris, Lowell, Ariz., part owner of KSUN, 10%; Louis Long, Safford theatre manj also interested in KGLU, 10%. The station is a local on 1370 kc, and^ has been operated by the company of which R. A. Craig and H. L Stevenson, both of Phoenix, were: chief stockholders. WGES Control Shifted TRANSFER of control of WGES Chicago, passed from T. H. Guyon, Chicago chain restaurant owner, to other associates, with the approval Feb. 13 by the FCC of transfer of a gift of ten shares of stock to his sister, Irene M. Cowen. Under the new ownership setup T. H. Guyon will hold 151/2 shares, H. J. Guyon 10 shares, Louis E. Moulds, ballroom manager, 9% shares, Irene M. Cowen 10 shares. Gene T. Dyer, manager, who is also interested in WSBC and WCBD, Chicago, and WEMP, Milwaukee, holds one-half share. tt: I Page 12 • February 15, 1940 BROADCASTING • Broadcast Advertisingh