Broadcasting (Oct - Dec 1949)

NETWORK RULES Sheppard Plans Action AN "AGGRESSIVE" approach to present radio network-station regulations, already under scrutiny by FCC, was predicted last week by Rep. Harry Sheppard (D-Calif.), looking toward action in the next session of the 81st Congress. Rep. Sheppard, author of legislation (HR 2410) which would divest networks and manufacturers of station properties, said he would press for hearings by the House Interstate & Foreign Commerce Committee early next year "because the functions of public service are not being lived up to under present chain broadcast regulations." He promised a thorough exploration of network-station relationships, ranging from the issuance of license permits to the increase in commercial or spon FRANK T. BOW Announces House Candidacy FRANK T. BOW, Canton, Ohio, attorney and former general counsel of the House Select Committee to investigate FCC, last Tuesday announced his candidacy in 1950 for the Republican nomination to Congress from Ohio's 16th district. A member of the Republican State Central and Executive C o mmittee since 1946, Mr. Bow is now a senior member of Bow, Ake and Thomas, with offices in Canton's First National Bank Bldg. He already has tendered his resignation to the Republican committee. Mr. Bow went to Washington in 1947 to act as general counsel to a House Expenditures subcommittee, organized to investigate propaganda and publicity in government circles. At the insistence of Rep. Forest A. Harness (R-Ind.), chairman of the House Select Committee, he remained as general counsel. On Jan. 1 he became legal advisor to Sen. Andrew P. Schoeppel (RKans.) . Issues commanding the attention of Mr. Bow during his tenure, which ended last January with the death of the old Harness committee, included investigations of FCC's controversial Blue Book, licensing practices, the Port Huron and Scott decisions and radio operations relating to Puerto Rico communications and FCC's grant to WIPR Rio Piedros, P. R. He favored revision of the Communications Act and urged Congress to spell out Commission control over program content. In the statement announcing his candidacy, Mr. Bow urged adoption of Hoover Commission recommendations for economy, and a cut in Marshall Plaii and deficit spending. Mr. Bow sored broadcasts by network stations. A similar bill, almost identical in its provisions, was introduced by Rep. Sheppard last year but no action was taken and the measure died in the 80th Congress [Broadcasting, May 3, 1948]. At that time, he conceded the measure probably was too stringent and would invite compromise, but promised to re-introduce it, if elected last November. Since then, the bill has stirred repercussions, and he has accumulated sufficient material to launch his push, he added. He re-introduced the measure last February. The Sheppard bill, by divorcing station operation from networkmanufacturer ownership, would if enacted throw roughly |150 million worth of properties on the market for sale. Other Provisions Other provisions would prohibit stations from carrying any two consecutive hours of network programming, limiting them to alternate hours, and forbid manufacturers to own networks. In addition, networks would be defined as two or more stations linked for simultaneous broadcast [Broadcasting, Feb. 14]. FCC, which has long felt the need for investigating the networkaffiliate setup, untouched since 1941, has already put 11 owned stations of CBS, NBC and ABC on temporary licenses pending review of network rules [Broadcasting, Nov. 7]. No investigation currently is underway, according to FCC Chairman Wayne Coy. Simultaneously last week. Rep. Sheppard denied published reports he would meet shortly with independent station operators to discuss network-station practices. He said he had not been approached by them, though he had received a "reasonably heavy" amount of mail protesting alleged "monopoly" by networks. He declined to identify the operators. The independents reportedly were seeking Congressional intervention with the Dept. of Justice. When queried, Dept. of Justice officials denied any study was underway. Congressman Sheppard said a number of House Interstate Commerce members favor an exploration of radio matters, and that Commerce Chairman Robert Grosser (D-Ohio) had received a number of communications, many in connection with the McFarland FCC procedure bill, from affiliates dissatisfied with present networkstation structure [Broadcasting, Aug. 22]. Common Complaints Most common complaints center around time options, sales representation, etc. Meanwhile, Sen. Edwin C. Johnson (D-Col.), chairman of the Senate Interstate & Foreign Commerce Committee, declined comment on the Sheppard bill. He said it had received "careful scrutiny" of committee members, but added he didn't know the committee's position as a whole. Some authorities think it significant, however, that neither Sen. Johnson, an avid anti-monopoly legislator, nor any other Senators introduced a companion piece to Rep. Sheppard's measure. The bill in its present form is so stringent as to militate against its chance for passage, they point out. A House Judiciary monopoly subcommittee has indicated a desire to review broadcast operations, and has hinted it may invite industry spokesmen, probably from NAB, to testify in next session. ^ !. — — — Ij Drawn for Broadcasting by Sid Hix E7; what? You'd rather try for the diamond ring instead of the lO-tb can of coffee?" FCC Actions THREE new AM stations granted by FCC and three existing stations given improved facilities. Five transfer approved, including sale by John A. Kennedy of WCHS Charleston, W. Va., for .$650,000 to Lewis C. Tierney interests. One TV outlet and four AM authorizations deleted. For details of these and other FCC actions, see FCC Roundup beginning on page 76 and Actions of the FCC beginning on page 68. Mr. Clyne TIME COSTS Night Rate To Drop — Clyne PREDICTION that station rate cards, possibly within the next two years, will no longer show nighttime costs at twice their daytime figures, was made by C. Terence Clyne, vice president of the Biow Co., at a joint luncheon meeting of the Boston Advei'tising and Radio Executives Clubs Tuesday (Nov. 29) at the Hotel Statler. "We may live to see the time when this ratio will drop to the extent where night costs will be half those of daytime," Mr. Clyne told the gathering of 250 advertising, agency, and radio executives. Citing a 90% TV tune-in as against 10% for radio between 8 and 10 p.m. in television homes, he declared that radio and TV are definitely competitive. Although convinced of the penetration of television, he said that it would be at least three to five years before half the radio homes have TV and that this lesser circulation will be the basis of radio's strength. "Radio is still the only true mass medium" he said. Mr. Clyne advised advertisers to take advantage of the impact of both radio and TV, but he suggested that they study how to use radio most elfectively in view of the competition of video. He asked them to consider the question: "Should we switch our money to daytime advertising?" NEW MAIONE SHOW To Start on ABC Dec. 12 ' TED MALONE, ABC's poet and \ story-teller, will start a new series of quarter-hour programs, sched j uled for Monday-Friday, 11:15 i 11:30 p.m., effective Dec. 12. The programs will replace Joe Hasel's sports round up and will be offered to local sponsors in ABC cities on a cooperative basis. The new program will be in addition to his current shows. BROADCASTING • Telecasting December 5, 1949 • Page 25