Broadcasting (Jan - June 1940)

Principals in Westinghouse Promotions NEW HIGH COMMAND of Westinghouse Radio Stations Inc. will formally take over full management of Westinghouse stations on July 1, when current program management contracts with NBC terminate. Promotions and new appointments, both by NBC and Westinghouse, were effected May 20 to complete the reorganization. At top is Walter C. Evans, vice-president of Westinghouse Radio Stations Inc. and manager of its radio department. At left center is Sherman D. Gregory, for the last two years general manager of KDKA, named manager of NBC's owned and operated stations with headquarters in New York, working •under NBC Vice-President William S. Hedges; at right center, John A. Holman, shifted from WBZ-WBZA to KDKA as general manager. Bottom row (1 to r) : Vincent F. Callahan, promoted from assistant general manager to general manager of WBZ, Boston, and WBZA, Springfield; Lee B. Wailes, former manager of NBC-ovmed and operated stations, named by Mr. Evans as manager of Westinghouse stations, with headquarters in Philadelphia; Griffith B. Thompson, sales manager of KYW, Philadelphia, named general sales manager of Westinghouse stations in addition to present duties, with headquarters in Philadelphia. Leslie Joy continues as general manager of KYW and W. C. Swartley as manager of WOWO-WGL, Fort Wayne, also Westinghouse-owned. J. B. Rock, for several years chief assistant to Mr. Evans, continues in that capacity. Like Mr. Evans, he will divide his time between Westinghouse manufacturing activities in Baltimore and broadcasting activities in Philadelphia. Mr. Rock, an engineer, has been intimately associated with Westinghouse broadcast activities for the last three years. Monopoly Group Again Postpones Proposed Report Delay Deliberate, Says Tobey, In Speech Before Senate RACING against time, the FCC Network Monopoly Committee met May 27 in an effort to put the finishing touches on its long-awaited report, but referred it to the staff for another in a long series of revisions. The committee wants to transmit the report to the full Commission in time for release prior to adjournment of Congress, now expected in mid-June. Committee members, it is understood, found they could not reconcile certain of the conclusions with the testimony adduced at the hearings held a year-and-a-half ago, probing all phases of network control, management and contractual relations as well as subsidiary phases of commercial broadcast operation. The committee is made up of Thad H. Brown, acting chairman, Paul A. Walker and F. I. Thompson. Frequent Revisions Members of the committee apparently were spurred into renewed action by charges of Senator Tobey (R-N.H.) alleging the report was being deliberately held up. Demanding action, he asked on the floor of the Senate: "Are there no guts in these committees?" In informed quarters, it was believed the substance of the report would be a digest of the voluminous testimony taken during the six months of hearings, along with suggested recommendations to Congress for changes in the law, to make possible reforms in regulatory practice. The report, however, is said to have undergone a number of revisions. Tobey's Denunciation The continued non-appearance of the network-monopoly report gained Congressional attention once more on May 15 when Sen. Tobey (R-N.H.) read into the Congressional Record his inquiry addressed to individual members of the FCC [Broadcasting, May 15] and replies received from three of the seven Commissioners — Commissioners Case, Craven and Payne — none of whom were members of the so-called Network-Monopoly Committee. He termed failure of the FCC to produce the report an "instance of impairment of efficiency and disservice to the American public". Commenting to Broadcasting, May 28, Sen. Tobey declared: "I have not yet received replies to my letter from any other members of the Commission, including the Chairman. Chairman Fly advised me some time ago I would receive a reply 'very shortly.' So far this has proved to be the same type assurance as that given to Congress by various members of the FCC over the past 19 months, in which Congress was advised repeatedly that the report would be ready in 60 days." The replies of Commissioners Case and Craven presented no specific information on prospects of action on the report, both indicat ing general interest in the matter but pointing out they were not members of the committee. However, Commissioner Payne declared in his May 5 reply: "Over a month ago I brought the matter up at meeting of the full Commission. I stated that, while I was not a member of the subcommittee on the radio-monopoly hearing, I felt that the report had been so long delayed that all the members of the Commission would very properly be charged with neglect if the subcommittee were to continue to withhold the report. Two of the members of the subcommittee. Commissioners Thompson and Walker, assured me that they had been trying to have the report forwarded to the full Commission. The third member of the subcommittee is Commissioner Brown, who is also chairman of the subcommittee. Personally, I am glad that you have taken the action that you have, and (Continued on page 32) Naming of Brown Thought Imminent REAPPOINTMENT of Thad H. Brown for a seven-year term as a member of the FCC prior to expiration of his present term June 30 is confidently expected in high Administration circles. An Ohio Republican, Col. Brown is the only remaining member of the former Federal Radio Commission now sitting on the FCC. He was named a member of the Radio Commission on Jan. 21, 1932, after having served as general counsel since 1929. He was carried over as a member of the FCC upon its creation on July 11, 1934, having been named for a six-year term. Several months ago Col. Brown had in mind retirement from the FCC to reenter private law practice in Ohio and Washington. It is understood, however, that he has decided to forego such plans. His nomination by President Roosevelt is expected in Administration quarters prior to adjournment of Congress, likely to come in mid-June. If Congress adjourns prior to confirmation the appointment would be for the duration of the Congressional recess with confirmation at the next session. WPAY Case Seen Test Of Newspaper Ownership SEEN as a test of the newspaper ownership issue is the hearing ordered June 6 before the full FCC on the proposal of the Brush-Moore Newspapers Inc., publishers of the Portsmouth Times and other Ohio dailies, to acquire 50% of the stock of WPAY, Portsmouth local, and thus become its sole owner. The newspaper company already owns 50% and seeks to purchase the remainder from Chester A. Thompson, Cleveland financier, for $20,000. The issue grows out of the fact that the newspaper and radio station are the only ones in the community, and full ownership of the station would give the newspaper company control of both. When permission to transfer the Thompson stock to the newspaper was sought recently, it was denied. The Commission was reported as voting 4 to 2 against the transfer with Commissioners Fly, Walker, Thompson and Payne opposed to Commissioners Brown and Craven. More than a dozen new station grants or transfers of ownership, in which the only station in the community went in whole or part to the only newspaper company, have been made by the FCC since Jan. 1, 1939, and the list of newspaper-owned stations compiled for the Broadcasting Yearbook shows this situation prevailing in several score cases among the 275 stations identified vidth newspaper ownership. AP Working on Radio MANAGEMENT of the Associated Press is engaged in reorganizing the AP radio policy to permit freer use of AP news on the air, but there are no results to announce as yet, according to W. J. McCambridge, assistant general manager. Many members have asked for a processed radio report, he said, and the management is attempting to work out a satisfactory way to supply it to them. Page 20 • June 1, 1940 BROADCASTING • Broadcast Advertising