Broadcasting (Jan - Mar 1949)

DISTINGUISHED Merit Awards in radio were made fortnight' ago by the National Conference of Christians and Jews [Broadcasting, Feb. 21]. Among those receiving the honor are: Left photo — Paul A. Loyet (I), vice president and resident manager, accepts the award for WHO and WHO-FM Des Moines from George O'Malley, chairman, 1949 Brotherhood Week; center photo — Justin Miller (r), NAB president and chairman of the Washington area radio committee for Brotherhood Week, makes the presentation to Secretary of Defense James Forrestal, who accepts on behalf of the Armed Forces Radio Services for its program. Miracle of Brooklyn. At left is Mrs. Frank A. Linzel, director, NCCJ Washington area office; right photo — Robert L. Coe (r), station manager of WPIX (TV) New York, accepts the citation for the station's Television Chapel program from Col. John J. Bennett Jr., deputy mayor of New York City. SPOT SCRAMBLE Networks, NARSR File Briefs THE BATTLE over networks' rights to represent affiliates in the sale of national spot advertising was resumed last week — on paper — as the principal adversaries filed briefs with FCC summarizing their arguments in the December -January hearings [Broadcasting, Dec. 6, 1948; Jan. 17]. The National Assn. of Radio Station Representatives, whose claims touched off the investigation originally, reiterated its contention that network activities in the representation field are contrary to the spirit if not the letter of the Commission's network rules, and should be stopped. The networks denied the charges and claimed FCC should drop the case. Filed by Fly and Fitts NARSR's brief, filed by former FCC Chairman James Lawrence Fly and William C. Fitts, of the law firm of Fly, Fitts & Shuebruk, maintained that there is a "basic" conflict between the sale of network and spot time, and that networks acting as affiliates' spot representatives are in a position to influence station rates and dominate station time. "If it is bad public policy for a national network to own in excess of seven standard broadcasting stations," NARSR insisted, "is it not equally bad public policy for a network, by combining the functions of station representative and network, to control from 65 to 95% of a station's revenue?" Arguments against network representation of AM stations apply "with even greater force" in television, the association continued. It told FCC that failure to act in this case "would be an open invitation to the networks to take over the station representation business without limit." NARSR's position was supported by Edward Retry & Co., a NARSR member, in a petition filed separately through Paul D. P. Spearman, Washington counsel. Referring to network represen tation of stations, the Petry brief said : "Whether anything wrong has been done up to date or not is beside the point . . . The only question for the Commission to decide is: Does the possibility of something wrong or against the public interest being done exist? The obvious answer to this question is in the affirmative." CBS' offer to limit itself to the representation of a maximum 15 stations, the Petry brief maintained, was an admission that network activity in this field "is fundamentally and clearly wrong." CBS, NBC, and ABC filed briefs supporting their right to represent stations and declaring that such representation actually enables the stations to render better public service. They were supported in briefs by KSL Salt Lake City and WRVA Richmond. 'For Their Benefit' NBC claimed that to rule networks out of this field would reduce competition and restrict the stations' freedom of choice, and would fail to benefit the stations financially. NARSR members are acting "for their benefit" in seeking to exclude the networks but have failed to make a case, the network contended. The brief, filed by Gustav B. Margraf, NBC vice president and general counsel, and by William R. Perdue Jr. and Thomas E. Ervin, insisted that spot representation creates no "conflict of interests" for the networks and violates neither the "letter or purpose" of the network regulations. The stations, NBC argued, "have full power to prevent any abuses." Through Judge Samuel I. Rosenman, Ralph F. Colin and Richard S. Salant, attorneys, CBS told the Commission that the evidence presented by NARSR "is theoretical, argumentative, and inaccurate, and is neither relevant nor probative." NARSR, the brief asserted, failed to establish the "existence or potentiality of evils" which would justify exclusion of the networks from spot representation activities. ABC similarly asserted that national spot and network broadcasting are "highly competitive" and that representation by net WBAL TRIAL Contempt Proceedings Today WBAL Baltimore faces trial today (March 7) in Baltimore Criminal Court on a contempt charge for allegedly broadcasting a news report about a confessed murderer. Sitting will be Judge John B. Gray Jr., who last Jan. 28 found three other Baltimore stations guilty on similar contempt charges [Broadcasting, Jan. 31]. These stations (WITH, WFBR, WCBM) were fined by Judge Gray. In an answer to the charges WBAL claimed last week through Attorney Karl F. Steinmann that Rule 904 of the Baltimore Supreme Bench, prohibiting publication of many facts in crime cases, is unconstitutional on several grounds and may not be properly applied to radio. Should the station be found guilty, Mr. Steinmann contended it should be released without penalty since there was no attempt to obstruct justice. He reminded that a committee of the Maryland Bar Assn., consisting largely of judges, has failed to reach a conclusion in a similar rule proposed for the state courts. works violates neither the law nor the public interest. The ABC brief was filed by Joseph A. McDonald, network vice president and general attorney, and David S. Smith, Andrew G. Haley, James A. McKenna Jr., and Vernon L. Wilkinson, counsel. The KSL brief was submitted by attorneys Ernest L. and Glen A. Wilkinson, and WRVA's by attorney Charles F. DuVall. In addition to their owned stations, CBS represents five affiliates (WAPI Birmingham, WBT Charlotte, WCAU Philadelphia, and WRVA and KSL); NBC one (WGY Schenectady), and ABC one (WMAL Washington). FOLSOM HONORED Russell Gives Party MEMBERS of the Cabinet, Congress, government and the military attended a cocktail party for Frank, M. Folsom, president of RCA,: March 2 at the Carlton Hotel, Washington. The party honoring Mr. Folsom was given by Frank M. Russell, Washington vice president of NBC. Mr. Folsom, who became RCA president last December, is well known in Washington circles after his war service there. He was one of the nation's first industrialists to enter government service before the war, having joined the National Defense Advisory Commission as assistant coordinator of purchases in 1940. In 1941 he was named special assistant to the Under Secretary of the Navy and Chief of Procurement. Members of the FCC present were Chairman Wayne Coy and Comrs. Freida Hennock, Rosel Hyde, Robert Jones and E. M. Webster. Mr. Folsom (center) and Mr. Russell (I) greet Hon. Charles Sawyer, Secretary of Commerce, at the cocktail party. BROADCASTING • Telecasting March 7, 1949 • Page 31