Broadcasting (Jan - June 1940)

Local Monopoly^ Financings Absentee Ownership Issues Are Raised by Fly WHEN WSAI, Cincinnati, was named first prize winner of the station promotion contest conducted by Canada Dry Ginger Ale for its NBC-Blue Information Please program, Dewey Long, manager of the station (center), came to New York to receive the silver plaque and $50 from Roy W. Moore, president of Canada Dry, in that company's offices [Broadcasting, April 15]. At left is J. M. Mathes, president of J. M. Mathes Inc., New York, agency handling the account. Announcement of the award also was made on the April 16th broadcast of Information Please, and full list of runners-up and honorable mentions was published in the April 15 Broadcasting. LOCAL monopoly of radio-newspaper ownership, sources of finances and non-resident ownership were raised as policy issues again in a decision of the FCC April 15 in which Chairman Fly dissented from the majority vote adopting a final order granting William C. Barnes and Jonas Weiland, partners, authority to erect a new local station, 100 watts night and 250 day on 1420 kc, in Martinsville, Va. Call letters are WMVA. Original proposed findings favoring the BarnesWeiland application over that of Patrick Henry Broadcasting Co., seeking the same facilities, had been issued last Jan. 11 [Broadcasting, Jan. 15]. Chairman Fly's dissent, in which he reported that Commissioner Case concurred and with some of the reasoning of which Commissioner Walker also concurred though he voted with the majority, was significant for the arguments propound ed in which Mr. Fly favored the competing Patrick Henry application largely on grounds of local monopoly, financial responsibility and the absentee interest represented by Mr. Weiland, who is owner of WFTC, Kinston, N. C, and part owner of WGBR, Goldsboro, N. C. Mr. Weiland's partner, Mr. Barnes, is publisher of the Martinsville Bulletin. Inconsistent, Says Fly The majority's decision, Mr. Fly stated, is inconsistent with the case of two competing Port Huron, Mich., applicants, one a newspaper publisher, in which the Commission had held that the granting of the nonnewspaper station (now WHLS) would add competition in the dissemination of news and information. Mr. Fly pointed out that the views expressed in the Port Huron case "were not intended to be ap Tonight, our family is "talking over" a new tractor. Yesterday morning, they agreed to switch to a new cereal. Tomorrow, they may decide for or against your product. And right there is where WIBW can be of tremendous influence in making that decision favorable. Do this! Come with us in our daily, intimate visits into these 1,321,980 homes throughout Kansas and adjoining states. Sit down with our family as a welcome visitor and tell them the story of your product as they "talk over" their purchases. The results will amaze vou! plied generally toward all newspaper applicants but only when the grant would tend toward creating a local monopoly in the channels for public expression of news and information and when at the same time a competing application was presented." In his opinion, he said, "this policy is sound and I find no justification for a failure to apply it here." Comparing the two applicants, Chairman Fly said that while the Weiland Barnes combination appai'ently has adequate net worth, the amount of cash available to them at the time of hearing was "far too small for this purpose and, except in a general way, no indication was given of the expected source of the required capital." On the other hand, the Patrick Henry group was held to have shown greater resources and to have demonstrated specifically where and how more than the necessary finances would readily be made available. An Absentee Partner Mr. Weiland, it is further pointed out, lives in Kinston, 160 miles away, and Mr. Barnes has lived in Martinsville only three years. On the other hand, S. S. Walker and J. R. Walker, two of the three partners in the Patrick Henry group, were said to be closely associated with local government and local organizations and have lived in Martinsville for more than 30 years. Moreover, Chairman Fly's dissent pointed out, Weiland is only 27 years old, and his radio experience, which apparently weighed with the majority, is offset by the fact that the Walkers in "their considerable business ventures have been successful" and proposed "to engage a staff of qualified persons to operate the station". S. S. Walker is director and stockholder in various Martinsville corporations and member of many civic organizations, according to the original findings. J. R. Walker is vice-mayor of the community, president of the city council and secretary-treasurer of the local ice and storage board. A third partner, C. F. Walker, is in the laundry business in Rocky Mount, N. C, 154 miles away, but visits Martinsville eight or ten times yearly. The Walkers are brothers and partners in the proposed radio venture. In a statement concurring with the majority but also upholding the "general policy" expounded by Mr. Fly, Chairman Walker said: "I am of the opinion that it may well be said that the granting of the license herein to the later applicant will mean a monopoly of the news in the hands of the Patrick Henry Broadcasting Co., through such control of advertising as may mean the elimination of the newspaper, through such loss of advertising revenues as to make impossible continued operation of the newspaper by the present owner. "With the general policy regarding monopoly of news through unity of ownership of all means of communications, as stated in the dissenting opinion herein, I fully agree, but I am of the opinion the instant case is not the proper one for beginning the application of this policy. "I therefore concur in the grant to Wm. C. Barnes and Jonas Weiland, co-partners, trading as Martinsville Broadcasting Co." WI BW ^o^^L%ice.cf'T&,t^ Jl WW ,„nv COLUMBIA OUTLET FOR KANSAS : BEN LU DY, Gen. Mgr. ■ REPRESENTED BY CAPPER PUBLICATIONS INC WYORK DETROIT CHICAGO KANSAS CITY SAN FRANCISCO Page 44 • May 1, 1940 BROADCASTING • Broadcast Advertising