Broadcasting (July - Dec 1940)

District Courts Get Jurisdiction In Station Sales Supreme Court Specifies New Procedure for Appeals BROADCAST station owners seeking relief from adverse rulings of the FCC having to do with voluntary assignments of their licenses henceforth must go to Federal District courts rather than the U. S. Court of Appeals for the District of Columbia. This was the finding of the Supreme Court of the United States Nov. 25, in an opinion delivered by Justice Felix Frankfurter, Upholding the FCC's refusal to sanction the transfer by lease of KSFO, San Francisco, to CBS. The decision, which involved only the question of jurisdiction, reversed the Washington appellate court, which had held that it could review FCC decisions in transfer cases. It marked the first victory in the Supreme Court for FCC General Counsel Telford Taylor since his appointment last May. It Came in a Hurry Acting with almost unpredecented speed, the Supreme Court heard oral arguments on the case Nov. 15 and handed down its opinion ten days later. Mr. Taylor argued the jurisdictional question for the Government, with Duke M. Patrick representing CBS. KSFO did not participate in the proceedings, although it was a direct party before the FCC and the lower court. While the opinion presumably leaves open procedure whereby CBS and KSFO could carry the case to the Federal Court for the Fifth Circuit, in New Orleans, there was no inkling from either party that they intended to pursue the litigation. The proposed lease arrangement was entered into in 1936, for a fiveyear period. Since virtually all of that time has elapsed and since CBS has disclosed plans to make KQW, San Jose, its San Francisco affiliate [Broadcasting, Nov. 15], it is thought the litigation probably will be dropped, insofar as the network is concerned. The arrangement contemplated annual payment of $25,000 per year to KSFO, plus a percentage of earnings, and also contained a reversionary clause which the FCC held improper in denying the KSFO-CBS application. The Supreme Court's ruling is destined to have an immediate effect on several appeals involving transfer cases now pending before the Washington Appellate Court. That court has withheld action pending the highest tribunal's ruling in the KSFO-CBS case. Among the transfer applications now pending and likely to be dismissed are those involving WAPI, Birmingham, in which CBS is a party; transfer of WLBZ, Bangor, Me., to Congress Square Hotel Co., Portland; and the KSFO case. It is expected that promptly following dismissal the appellants in the Washington court immediately will seek jurisdictional review of the FCC denials in the appropriate statutory three-judge courts. The Frankfurter opinion, after analyzing the appellate provisions of the statute and the Congressional debates relating to their enactment, held that proper recourse should be PIGGIE-BACK ride around the block was won by Al Yohe, Denver amusement park official, in an election bet with Howard Johnson (bottom), of KLZ engineering staff. Plug for Radio ONE MORE Government agency singing the praises of radio service is the Wage & Hour Division of the Labor Department. Col. Philip B. Fleming, administrator o f the Division, on Nov. 27 cited to Broadcasting the "splendid cooperation" secured from stations all over the country in publicizing the inception of the 40-hour week late in October. Some time before the Oct. 24 switch from a 42 to a 40-hour maximum workweek basis, in compliance with the Fair Labor Standards Act, wage hour field representatives arranged with stations to carry spot announcements calling attention of employers to the coming change. Fair and Complete Election Handling By Radio Draws Chairman Flfs Praise TRIBUTE to the broadcasting industi-y for its impartial and comprehensive handling of the political campaigns, climaxed by its election day broadcasts, was paid Nov. 26 by FCC Chairman James Lawrence Fly in an address over NBCBlue. Describing the job as "well done". Chairman Fly contrasted the radio technique to that of newspapers. He alluded to the "acrimony and bitterness which prevailed among newspaper commentators and editorial writers", while radio commentators on national networks and local stations "generally preferred dispassionate, analytical discussions". Radio, he said, has gained ground on other media of information, which he said "have hardly held their own". Industry Scrupulous "The right of people to have radio used for the communication of information and exchange of ideas, fairly and objectively presented, has been recognized by the broadcasting industry not only in theory but in practice," Chairman Fly said. "I can tell you that by far the greater part of the industry is becoming scrupulous in its attempts to carry that idea forward. "It is true that differences of opinion may arise as to just how far that approach shotild be taken. Should commentators be permitted to peddle their sponsors' views under the guise of news commentary? Should news reporters be permitted to inject their own or their si5onsor's views into ostensible factual reporting? But those are at present subsidiary matters. The important thing is that the basic in the Federal District Courts, rather than in the Washington tribunal. He pointed out that Under the specific language of the Act, only five types of appeals may be carried to the District of Columbia Court — from an order of the FCC granting or refusing an application and CP's, or license; for renewal of an existing license; for modification of an existing license; suspending a radio operator's license. By inference, he held that appeals of all other types of orders must be carried to the district courts. principle of objectivity has been accepted and placed into practice. Today the adoption of an editorial policy by a licensee of a broadcast station is virtually unknown." "Let me make it clear that what I am talking about is not mere idealism; the facts I have in mind represent the actual functioning of a great practical machine. Through the practical application of idealism in the administration of this country's broadcasting system _ we now can see important, practical, concrete results. Radio has, indeed, become a cornerstone of the democratic system. In the past few months we have seen its achievements grow in reporting news daily and from hour to hour, in carrying frequent debates on controversial issues and more especially, in its conduct of the political campaigns." Chairman Fly described the policy of impartial use of radio facilities as "the democratic system at its best". To radio, he said, much credit must be given for its part in stimulating the largest vote in the country's history. Election Returns Cited Perhaps the outstanding service which radio performed was "its complete and timely broadcast of election returns", Mr. Fly declared. Before some voting units in the western States had been closed "the radio had announced the partially complete election returns of some eastern States," he observed. Competent vote analysts kept the public informed on their views on trends, minute by minute, and before midnight — a few short hours after most polls closed — station after station carried the news of the election outcome." In introducing Chairman Fly to the network audience, NAB President Neville Miller pointed it was just 20 years ago, on the occasion of the Harding-Cox election, that returns were broadcast for the first time. During those two decades, he pointed out, radio has made steady improvement and has rendered a public service to the American people by bringing to the electorate the issues as presented by the principal candidates in their own words. CHERNOFF DIRECTS KEmEDY STATIOISS APPOINTMENT of Howard L. Chernoff, assistant general manager of the West Virginia Network, as managing director of the station group and of WCHS, Charleston, was announced Nov, 29 by John A. Kennedy, president and general manager. Stations in the group arc WCHS, W P A R, Parkersburg; WBLK, Clarksburg, and WSAZ, Huntington. Mr. Chernoff originally was employed as advertising manager of the Clarksburg Pub1 i s h i n g Co. in 193 6, coming A • from Mansfield, where he had ■■k. ^H^^^B worked on newspapers in that city and in Lorain. In 1938 he was transferred by Mr. Kennedy from the newspaper to WCHS as assistant general manager. Later he became assistant general manager of the network operation, holding that post until his elevation to the managing directorship. With the appointment Mr. Kennedy disclosed that he planned an extended trip through South and Central America during January, February and early March. Accompanied by Mrs. Kennedy, he plans to transcribe a series of interviews and commentaries o n Latin American activities, to be broadcast over his stations. The trip will be made primarily by Clipper. Mr. Chernofil: Newspaper Properties Disposed of by Kennedy SALE OF HIS interest in the Clarksburg Publishing Co., publishers of the morning Exponent, the afternoon Telegram, and the Sunday Exponent-Telegram, to the estate of the late Virgil L. Highland, was announced Nov. 21 by John A. Kennedy, president and general manager of the West Virginia Network. The transaction ended extensive litigation involving control of the newspaper properties. ' Mr. Kennedy announced the sale would enable him to devote full time to his expanded Interests in radio, which are demanding more and more attention. The West Virginia Network includes WCHS, Charleston; WBLK, Clarksburg; WPAR, Parkersburg, and WSAZ, Huntington, the latter owned in partnership with the Huntington Publishing Co. Birthday Ball Committees Set G. W. JOHNSTONE, director of radio for the Democratic National Committee, has been appointed a member of the executive committee of the President's Birthday Ball, to be held Jan. 30, 1941, as well as chairman of the radio division for the celebration. He will continue as radio director for the Democrats, maintaining offices both in the New York and Washington headquarters of that Committee. Active radio director for the Birthday Ball Committee is James H. Knox, former radio director for the Florida State exhibit at the New York World's Fair and more recently program director of WFTL, Fort Lauderdale, Fla. Eddie Cantor again will serve as chairman of the "March of Dimes" broadcast campaign. Page 24 • December 1, 1940 BROADCASTING • Broadcast Advertising