Broadcasting (Oct - Dec 1945)

dCourt Jurisdiction In Tax Suit Argued 'PM' Settles Luotto Libel Suit After Hearing on New Mexico Sales Tax Legality in January EFFORT of the State of New Mexico to slap a 2% gross sales tax on broadcasting stations on the premise that they operate in intrastate commerce has developed into a running legal battle between the state and NAB. Hearing on the courts' jurisdiction was heard last Monday but argument on the merits of the case was postponed to late January in a ruling at Santa Fe last Monday by the U. S. District Court, District of New Mexico. 7 The three-judge Federal court granted request of the New Mexico attorney general to postpone argument on the merits on the ground that the state was not prepared to offer technical testimony. Engineering data to support the contention of NAB and New Mexi. co stations that broadcasting is in: terstate in character had been pre'. pared by Howard S. Frazier, NAB 1 director of engineering, who had taken measurements in neighboring states. The court offered to hear his evidence while he was in [ Santa Fe but NAB counsel — John [ Morgan Davis, NAB general coun, sel, and Milton J. Kibler, his assistant— decided to submit it when . the argument is heard in January. The court heard argument on its jurisdiction, though on Nov. 5 it had rejected a request by the state ! to dismiss the broadcast petition i on jurisdictional grounds [Broad; casting, Nov. 5, 19]. No witnesses were heard on this phase. The court asked both sides to submit p briefs within 10 days. Several New L' Mexico stations had filed petitions [ to restrain the state from collectr ing the tax but the court consoli[ dated the cases. gued Jury Finds for Radio Advertising Man Gates Radio Co. Opening New York Branch Office GATES RADIO Co., Quincy, 111., last week announced the opening of a branch office in New York to offer "engineering service, sales, and the stocking of equipment". Gates has manufactured radio transmitting equipment since 1922. Parker S. Gates is general manager. The New York office is at 40 Exchange Place, Telephone Hanover 2-0198. AWARDED judgment against PM in his libel action, Andre Luotto, New York publisher and radio advertising executive, received settlement out of court it was learned last week. Although the amount was not disclosed it was understood to have run well into five figures. A jury in Kings County Supreme Court brought in a unanimous verdict for Mr. Luotto, but couldn't agree on the amount of damages. Mr. Luotto, who had sued PM and Marshall Field, its publisher, after the newspaper published an article and editorial in July 1942 opposing the sale WCV New York R. W. Dumm in Charge Of KXOA Broadcasts ROBERT W. DUMM was appointed director of broadcasts of KXOA Sacramento, Mutual Don Lee station, effective Nov. 19, according to Lincoln Dellar, KXOA owner and manager. He is the son of Wesley I. Dumm, president of Associated Broadcasters Inc., which operates KSFO San Francisco and affiliated radio activities. Mr. Dumm, 32, released from the Navy as a lieutenant after duty in the Pacific, has 10 years' experience in broadcasting, successively as announcer, producer, sportscaster, special events director, and program director of KSFO. During the first year of the war, before entering the Navy, he also served as program director of International Station KWID and originated many programs for overseas servicemen including the first international shortwave broadcast of recreated major league baseball games. Roblee Shoes Sign MBS For Ed Thorgersen Show FORTY Mutual stations will be used by Roblee Men's Shoes for first radio test starting Dec. 2 and featuring Ed Thorgersen, sports reporter. Time is Sunday 9:45-10 p.m., and not Monday through Friday 5:45-6 p.m. as previously reported. Leo Burnett Co., Chicago, is agency. Local dealer tie-in is to be used. War Fund Praises NAB PRAISE to the NAB and broadcast stations for their part in the National War Fund was extended >last week by Winthrop W. Aldrich, <:und president. "Radio played a major role in the success of the National War Fund by projecting :he War Fund appeals to the American public," he stated. "In io doing the radio industry served humanity well and added to its ■ecord of achievements in the public lervice." BROADCASTING • Telecasting Controversial Time TIME ON AMERICAN for controversial issues will be sold by network only between 10 and 11 p.m. on any evening of the week, network announced last week. New ruling was put into effect in order to give the opposing party an equal opportunity to reply, with network showing no favoritism in its time-selling slots. Nervine Renews MILES LABORATORIES, Elkhart, Ind. (Nervine), Nov. 26 renews "Historical Almanac of the Air" for 52 weeks on 130 Keystone stations, five days a week for one-minute broadcasts. Agency is Wade Advertising, Chicago. by Arde Bulova and Harry D. Henshel to Murray and Meyer Mester for $300,000. The PM article was carried under the headline, "Former Fascist Rooter May Direct New York Radio Station." Mr. Luotto appeared before the House Special Committee to Investigate the FCC in August 1943 and charged that his radio advertising business had suffered because of an alleged "smear" campaign by employees of the FCC and OWI during the foreign-language station investigations. The Committee charged that the FCC refused to approve the sale of WOV in 1941 because Mr. Luotto was to have been manager for the Mester brothers. During subsequent testimony before the House Committee, Commissioner Charles R. Denny Jr., then FCC general counsel, testified that the FCC had "nothing" on Mr. Luotto and that he was a "good loyal American". Mr. Denny later issued a statement affirming his testimony [Broadcasting, April 30]. Mr. Luotto's libel action, brought in the Kings County Supreme Court, was heard by Judge Wenzel, who directed that, the fact of libel being established, the case be sent to a new jury to determine the amount of damages. Settlement out of court made another hearing unnecessary. SET MAKERS TO USE CHANNEL NUMBERS EIGHT of nine manufacturers of receiving sets with FM dials will use the new channel numbering system adopted Nov. 16 by the FCC, they reported to Robert T. Bartley, director of the NAB FM Dept. Mr. Bartley expects to receive additional replies to his request for manufacturer reaction to the FCC action, taken on recommendation of the NAB. Lone refusal to follow the numbering system came from Pilot Radio Corp., New York, which said it prefers direct frequency markings on the dial scale as used for years on broadcast and shortwave bands. Companies announcing they would use channel numbers were Admiral Corp., Ansley Radio Corp., Farnsworth Television & Radio Corp., Fried Radio Corp., Philharmonic Radio Corp., Stromberg Carlson Co., Meissner Radio Corp., WellsGardner & Co. Newman Promoted CY NEWMAN, assistant manager of WSSV Petersburg, Va., has been promoted to manager. President Louis H. Peterson said Mr. Newman would continue in active supervision of the commercial and program departments, in addition to his duties as manager. Fuller Out Soon SAM PULLER, expected to be released from the Navy soon, is said to be succeeding Carlton Alsop as radio director of Sherman & Marquette, N. Y. Mr. Alsop joined MGM in Hollywood last month. Hon. George Stanton McCann-Erickson, Inc. First National Bank Bldg. Minneapolis, Minn. Dear George: 'Course you know about this "Women's 580 Club" we have here at WCHS . . . well, sir, the funniest thing happened the other day . . . one of the club members (they total nigh on to 50,000 now) wrote in ard asked "Miss 580" if she'd play a certain popular tune for her son stationed in Japan . . . now this isn't anything unusual, dedicatin' tunes, but listen to this . . . meanwhile the club member writes to her son in Tokyo and says ". . , listen in each day to WCHS at 2 o'clock and you will hear your tune played . . ." We sure are proud of our "coverage" down here in West Virginia but '"Miss 580" had to write the club member and tell her that at the present we don't have enough power to "cover Tokyo". Yrs., Algy WCHS Charleston, W. Va. KOIN We Work Today for the Northwest's Limitless Tomorrow PORTLAND, OREGON CBS Affiliate FREE & PETERS, Inc., Natl Rep. « l 0 W U November 26, 1945 • Page 79