Broadcasting (Jan - Mar 1949)

WHAS Hearing on Louisville Purchase Underway FCC HEARING on Crosley Broadcasting Corp.'s $1,925,000 purchase of the WHAS Louisville properties rounded out its first week last Friday with virtually no mention yet of what is considered the No. 1 issue— ^the question of overlap between WHAS and Crosley's WLW Cincinnati. The case, which includes the question of additional time for completion of WHAS-TV as one of the major issues, is expected to require much or all of this week for completion. The television extension occupied the first two days of last week's session, but much of this testimony was incorporated into the transfer proceeding. Crosley President James D. Shouse told FCC Examiner Leo Resnick that WHAS would become more of a "regional" station, with operations to a greater extent tailored for the entire service area, if the Crosley purchase is approved. Praises WHAS Praising WHAS operations as now conducted by the Louisville CourierJournal and Times, he said this was the only substantial change in Crosley plans, except to expand service wherever possible. The trend toward a greater regional operation would apply particularly to advertising and news and would give WHAS a type of operation more closely comparable to that of WLW, he said. WHAS authorities, formally asking for additional time to April 1 to complete WHAS-TV, but conceding that six to nine months or more may be needed, attributed their delay primarily to delays in construction of their new $10 million radio newspaper building, which will house all the radio stations. The AM-FM outlets are now slated to begin moving into the new building in April. Mr. Shouse said Crosley, which would set up the television station if the extension is granted and the transfer approved, could have WHAS-TV on the air with test pattern within six months "very easily," in view of Crosley's experience in building WLWT (TV), which is operating in Cincinnati, and WLWC (TV) Columbus and WLWD (TV) Dayton, which are scheduled to start test patterns within a week. WHAS spokesmen assured the Commission they would proceed with the TV construction in event the sale to Crosley is not approved. They have not yet ordered major video equipment because they were not in a position to use it until the new building is available, they declared. Orders for equipment will be placed, they reported, about July 1 or 30 days after FCC action on the WHAS transfer, whichever is later. No Changes Seen Mr. Shouse foresaw no staff changes for WHAS under Crosley ownership but said rate increases might be made and indicated an effort would be made to increase the proportion of commercial programs from the present 68% (1948 composite week) to about 81%. He said WLW and WHAS, both clear channel stations, would not be affiliated with the same networks and would be separate operations. WLW is now an NBC outlet and WHAS is affiliated with CBS, but ABC is known to be seriously interested in securing the affiliation of the Louisville station. WHAS is on 840 kc and WLW on 700 kc, both with 50 kw. Barry Bingham, who with his family owns all the outstanding stock of the Courier Journal and Times, WHAS parent, sketched the history of the clear-channel AM station and its FM and facsimile affiliates and outlined their overall service aims. Lisle Baker Jr., vice president and treasurer, detailed the corporate structures, reviewed the decision to sell the radio stations and outlined television plans. Explains Operations Victor A. Sholis, director of WHAS, explained AM operations, audio and "TV work, and traced the history of the TV permit, granted in September 1946, while Orrin Towner, technical director, went into the background and plans for television from an engineering standpoint. Mr. Shouse, key Crosley witness at the opening sessions, meanwhile saw television making a "terrific" impact on other media. In the next few years, he said, broadcasting is going through a phase of "uncertainty as to the future" such as it has never faced before. The impact is already being felt but "it's nothing compared to what it will PRINCIPALS in FCC's hearing on sale of WHAS Louisville to Crosley Broadcasting Co. and extension of time to complete WHAS-TV included (I to r): Top photo, David E. Partridge, sales promotion director of Crosley's WLW Cincinnati; Robert E. Dunville, Crosley vice president and general manager, and Crosley President James D. Shouse; second photo, FCC Attorneys Walter R. Powell Jr. and Sol Schildhause, and Examiner Leo Resnick (seated), who presided; third photo, Victor A. Sholis, WHAS director; Neville Miller, Washington attorney for WHAS; Lisle Baker Jr., vice president and treasurer of Louisville Courier Journal & Times Co. and its WHAS Inc., and Orrin Towner, WHAS technicol director; bottom photo, Frederic J. Ball and D. M. Patrick, Woshington counsel for Crosley; Dwight Martin, Crosley attorney, and H. Preston Coursen, general counsel of Avco Mfg. Corp., owner of Crosley. BROADCASTING • Telecasting be in a year," he predicted. He said he would expect to lose $150,000 to $175,000 in the first year's operation of WHAS-TV, whose construction he thought would cost Crosley around $500,000. This loss would compare with about $320,000 in WLWT's first year and about $170,000 expected for the first year of the Columbus station and $150,000 for the one at Dayton. Losses on the latter two, he said, should be less than on WLWT because programming costs will be kept down through the exchange of program via microwave relay. Examiner Resnick suggested at one point that it would be "helpful" if Crosley would furnish additional (Continued on page 66) March 7, 1949 • Page 27 [