Broadcasting (Oct - Dec 1949)

WINS CASE ILGWU Applies for Facilities CEREMONY held Wednesday (Dec. 14) in Washington, marking presentation of Treasury Dept. plaque to WCCO Minneapolis for its contribution to the promotion of U. S. Savings Bonds, is attended by (I to r): Bob Woodbury, WCCO traffic manager; Eugene Wilkey, WCCO assistant general manager and general sales manager, and Vernon L. Clark, national director, U. S. Savings Bonds Div. Mr. Wilkey received the citation on behalf of General Manager Wendell Campbell. THE BATTLE over Generoso Pope's proposed purchase of WINS New York took a new turn last Thursday as the International Ladies Garment Workers Union, owner of WFDR (FM) New York, applied to FCC for the Crosleyowned WINS' 1010 kc, 50 kw day, 10 kw night assignment. The application was filed in the name of ILGWU's WFDR Broadcasting Corp., which asked FCC to call a consolidated hearing on (1) the WINS license-renewal application; (2) the union subsidiary's application for the WINS facilities, and (3) the application for transfer of WINS from Crosley Broadcasting Corp. to Mr. Pope's II Progresso Italo-Americano PublishingCo. Though FCC has abandoned its Avco Rule permitting competing bids on stations up for sale, WFDR Broadcasting said if its application is successful it "will be ready, able and willing to purchase all of the existing facilities of Station WINS on the identical terms and conditions" of Crosley's |512,500 con tract for sale to II Progresso. Mr. Pope's proposal to convert WINS into a foreign-language station after the style of his WHOM Jersey City was projected as a major issue for the requested hearing. The union's program plans envisioned "a broad, allpurpose service." The union's application was filed by the New York law firm of Fly, Fitts & Shuebruk, whose James Lawrence Fly, former FCC Chairman, represents a committee of WINS employes opposing sale to the Pope interests. Counsel for II Progresso meanwhile told FCC it should "acknowledge receipt" but "give no further consideration to" the objections filed by Mr. Fly on behalf of the WINS employes' committee [Broadcasting, Dec. 12]. In reply to the WINS committee's attack on the "questionable principle" of foreign-language programming, the II Progresso memorandum quoted from some of Mr. Fly's own statements on the value of such programming. Mr. Fly was quoted as saying in SESAC MU CREATION of a negotiating committee to draw up rate schedules for SESAC music, just as the industry has done in the case of ASCAP's library, was proposed Thursday by Melvin Drake, vice president and station manager of WDGY Minneapolis. Mr. Drake is president of the Minnesota Broadcasters Assn. and a member of the NAB Unaffiliated Stations Executive Committee. Such a committee could negotiate rates for different classes of stations, he said, including per program charges along with blanket fees. NAB District 14 (Mountain states) Dec. 6 urged that per program licensing be discussed with SESAC, with the copyright group expressing willingness to meet with an NAB committee [Broadcasting, Dec. 12]. District 14 also urged at its Salt Lake City meeting that BMI and NAB consider purchase of the SESAC library. Mr. Drake recalled that the industry had established BMI "to take care of industry problems with ASCAP. Here comes another group which is becoming an important factor in station operation." Last Wednesday, Mr. Drake said, K. M. Parker, SESAC field representative, told him WDGY's SESAC rate will be $2,400 a year starting next October. WDGY's present contract calls for a payment of $540 a year based on its former 5 kw power, Mr. Drake added, with the new rate ascribed to the station's increase to 25 kw Drake Urges Negotiation Group night and 50 kw daytime. "I said that starting Oct. 1, 1950, we start doing without SESAC," Mr. Drake said he told Mr. Parker, and then was told a representative would cheek the station's programs. "I was assured that $2,400 was the minimum rate for 25 kw and 50 kw stations," Mr. Drake continued. A check with another 50 kw station disclosed that outlet was pay ing $1,500 a year, Mr. Drake said. "This morning," he continued, "the SESAC representative returned, offering a rate of $1,500 for the first two years and $1,800 for the next three years. I am willing to pay a higher rate as a 50 kw station but feel that it should be the subject of negotiation. In 18 years of business I've never before been told what to pay without a chance to discuss or negotiate the figure." an address in 1941 that foreignlanguage stations "can, and in large measure do, serve a constructive purpose." A few month later, FCC was told, he said that "in my opinion, foreign-language broadcasts are of considerable value," and, in 1942, that "foreignlanguage broadcasting, since the outbreak of the war, has assumed vital importance to civilian morale and national security." The II Progresso memo, prepared by Marcus Cohn of the Washington law firm of Cohn & Marks, also noted that FCC had approved Mr. Pope's acquisition of WHOM upon his "express representation" that it proposed to increase the station's foreign-language programming. II Progresso Answer The WINS committee's complaint, II Progresso contended, is "only that their particular jobs might be lost" if the station changed over to foreign-language programming. Actually, FCC'was told, all but 22 (and perhaps fewer) of the 64 on the committee are in jobs which can be handled with or without a knowledge of foreign languages. The memo also challenged the committee's contention that the number of metropolitan New Yorkers who desire foreign-language programming is not substantial, and that those who do wish such programs are sufficiently served by other stations. Accompanying the memo was an affidavit of Mr. Pope branding as "false" the committee's claim that he had personally told the committee that WINS under his ownership "could do no more than absorb (Continued on page h7) SESAC Statement Objecting to Story's Heading THIS LETTER is directed to you in the interest of SESAC Inc., as a result of the article which appeared in Broadcasting, Dec. 12, 1949 issue, on Page 29. The heading of the article reading, "SESAC PURCHASE BY BMI," which reviews the NAB District 14 meeting at Salt Lake City, has and will create an unfortunate rumor among the licensees of SESAC. As you are aware, the article appeared in your magazine shortly after the opening day of the NAB meeting in Portland, Ore., where the 17th District convened. Mr. Kolin Hager, assistant to the president and Mr. David R. Milsten, western counsel, both of SESAC, were present in Portland, where copies of the issue were made available to the attending broadcasters. Mr. Hager and Mr. Milsten were immediately confronted with the question, "Has BMI Purchased SESAC?" Mr. Taishoff, we feel that SESAC has been unjustly placed in an awkward position by reason of what, in our opinion, was a most misleading heading of the release. We also feel that you will concur in our position. For your information, Mr. Carl Haverlin president of BMI, made a public statement on the floor of the Portland session, in which he expressed regret that the heading of the article left the impression that a purchase of SESAC music repertory had been consummated. Mr. Haverlin further stated that the heading of the article was not factual and he desired that the broadcasting industry, and particularly those present, be informed that there are not any negotiations under way for a purchase of SESAC's music repertory and that none had been authorized by the officials of either BMI or SESAC and he hoped that his clarification would lay to rest any such unfortunate rumor. We desire to add to Mr. Haverlin's very fair and frank statement, that SESAC does not contemplate, nor has it ever considered the sale of its music repertory or that such a proposition has ever been au 8ROADCASTING • Telecasting thorized by SESAC. We do not believe that it is the policy of your magazine to create a situation which doesn't exist. There will probably be repercussions in the industry and other trade papers as well as numerous inquiries to BMI and SESAC, resulting from the unfounded and non-factual heading of the release. We respectfully solicit your cooperation in correcting this matter by publishing this letter in its entirety in your next issue of Broadcasting, thereby dispelling the erroneous rumor. We hope you will give this letter equal prominence to that of the misleading headline. Knowing that your editorial policy and the conduct of your magazine is equitable, we feel confident that this matter will have your immediate attention. We are certain that if corroboration is desired, Mr. Haverlin, for whom we have profound respect, will be happy to give it. Paul Heinecke, President SESAC Inc. December 19, 1949 • Page 27