Broadcasting (Apr - June 1950)

AMBLING' HEARING Senaie Plgns Probe RICHARDS case CESSATION of three-week Congressional hearings on Justice Dept.'s bill to prohibit interstate transmission of gambling information and Senate approval of a farreaching crime probe highlighted developments on Capitol Hill last week. Meanwhile, speculation that the Senate Interstate Commerce communications subcommittee might subpoena radio and television broadcasters appeared to have subsided, for the time being at least, as Subcommittee Chairman Ernest McFarland (D-Ariz) announced Thursday that further hearings were recessed "subject to call of the chairman." The announcement followed Senate approval of a $150,000 sweeping crime investigation proposed by Sen. Estes Kefauver (D-Tenn.) which some authorities felt would only touch on phases already covered by the McFarland subcommittee in its communications probe. BEFORE leaving for Washington to take over his new post of general manager of NAB, William B. Ryan was feted by his KFI-AM-FM-TV staff. His secretary, Winifred Scott (I) makes the presentation of luggage while Mrs. Ryan looks on. Mr. Ryan has been general manager of KFI for the past seven years, and of KFI-TV since its start two years ago. The Kefauver plan (S Res 202) calls for a five-man committee, three members from the Senate Interstate Commerce group, and two from the Senate Judiciary Committee. While selection of members rests with Vice President Alban Barkley, it was generally believed that Sen. Kefauver would be named chairman of the special group, to include Sen. Edwin C. Johnson (D-Col.), Sen. Charles W. Tobey (R-N. H.) and Sen. McFarland, as well as Sen. Alexander Wiley (R-Wis.). Authorities close to Sen. Kefauver said last week that the probe probably will not get underway for at least one or two weeks pending compilation of necessary data and addition of staff personnel. Communications Secondary It was believed most of the witnesses already called by the Senate Commerce subcommittee would not be invited by the special committee to testify but rather that the communications phase would be secondary to the overall crime investigation, in which Sen. McFarland is expected to take part. Meanwhile, possibility was held out that the Senate communications subcommittee might hold further hearings, but they would not be extensive, authorities felt. The subcommittee will review testimony given during the past three weeks and compile necessary data with a view to preparing its report on the proposed Justice Dept. bill [May 1, April 24, 17, 10], which might be used by the special Kefauver committee. Sen. McFarland declined to comment on what action his subcommittee would take but already has indicated it may adopt a compromise version of the FCC plan and Justice Dept. bill (S3358). The subcommittee disclaimed any intention last week of subpoenaing broad William B. Ryan (center), formerly general manager of KFI-AM-TV Los Angeles, and now genera! manager of NAB, was honored guest at a farewell luncheon in Los Angeles before his departure for Washington. On hand to pledge cooperation in his new assignment were William J. Beaton (I), general manager of KWKW Pasadena, and Calvin J. Smith, general manager of KFAC Los Angeles. Mr. Beaton is president of Southern California Broadcasters Assn., luncheon hosts. Mr. Smith is NAB 16th District director. casters, with hearings now recessed, though Sen. McFarland twice expressed surprise during Wednesday's session that none had requested to appear. Once he remarked, "I take it that they favor the legislation." Chairman McFarland's comment came during testimony by Elmer Davis, president of Radio Correspondents Assn., who opposed the measure, as did representatives of AT&T Long Lines Dept., Western Union, Armstrong Daily Sports Inc., U. S. Independent Telephone Assn., AP, INS and Transradio Press Service Inc., and others. Four days running, Monday through Thursday, the subcomittee heard further views on Justice Dept.'s proposed bill which would outlaw interstate transmission of gambling data on sports events; require that stations delay broadcast of details at least an hour after completion of horse races, and limit stations and networks to one horse race broadcast per day — not including "special events." FCC's plan would eliminate transmission of all information on bets, odds, or prices paid in betting on any sports event in interstate commerce. The Commission's version seeks to limit definition of "gambling information" and would enable radio-TV stations to carry as many horse races as they chose if they abide provision on odds, bets and prices paid. Implications Outlined Mr. Davis told the McFarland group that ". . . If the principle is established that the transmission of certain kinds of news may be prohibited or delayed because evil men may use it for an evil purpose, you could prohibit the transmission of any other kind of news if Congress is persuaded that an evil purpose could be frustrated thereby." Recalling his opposition to similar bills on newspapers and contending that arguments advanced for the Justice Dept. bill could logically apply to them, Mr. Davis alluded to the lottery law governing broadcasting. "This served an undoubtedly worthy purpose; it also got the camel's nose inside the tent. S 3358 would get his ears inside too and about half his neck, and after that there is no telling where he would stop." Mr. Davis, appearing at the direction of the association's executive committee, said he thought FCC's proposed limitations on bets, odds and prices in all media would be "less obnoxious though the principle would be just as bad." Furthermore, since it would apply to newspapers as well, that would serve to unite them and kill the bill itself, he noted, adding that was "the wrong way to fight gambling, however." Mr. Davis said he had no opinions Cunningham To Preside FCC EXAMINER James D. Cunningham was designated late last week to succeed the late Examiner J. Fred Johnson Jr. as presiding officer in the G. A. (Dick) Richards news policy case, and it appeared likely FCC would be asked to start the hearings anew. Counsel for Mr. Richards, owner of KMPC Los Angeles, WGAR Cleveland and WJR Detroit, reportedly were set to petition for a fresh start in the hearing as a result of the death of Examiner Johnson (see story page 77). Three weeks of the hearing have been held, devoted to presentation of FCC's case in support of charges that Mr. Richards ordered KMPC staff members to slant newscasts against members of the late President Roosevelt's family and certain minority groups [BROADCASTING, March 20, 27, April 3, 10]. Judge Johnson had been scheduled to resume the hearings in Los Angeles May 15, but upon his death FCC postponed the resumption to June 5. A major contention of Mr. Richards' counsel relates to the credibility of FCC's witnesses. Counsel therefore are expected to insist upon a complete new start so that the presiding officer will be able to evaluate all witnesses' testimony for himself. Hugh Fulton, Washington and New York attorney who is chief trial counsel for Mr. Richards, was understood to be prepared to cite court decisions supporting the contention that failure to grant a new start would violate due process rights. Joined FCC in '34 The new examiner designated for the case is a government career man who has served with FCC since December 1934, except for almost six years' service with the Army, from which he was separated in May 1946 with rank of colonel. Among the many FCC cases in which Mr. Cunningham has participated are the WMEX Boston renewal proceedings and the hearings on the charge of Homer P. Rainey, then a candidate for governor of Texas, that four Dallas stations conspired to deny him the use of their radio facilities. on the proposed hour time lag but felt that permission to publish such news with the time lag requirement would be "useful to the publishers of evening newspapers, which would no longer be in danger of being beaten on racing news." Chairman McFarland told Mr. Davis his subcommittee had received no requests from radio or television stations opposing the legislation "to appear and comment on it" and remarked: "Evidently they favor it." Mr. Davis said he didn't know whether they favor it or not but countered that "so far (Continued on page UU) Page 30 • May 8, 1950 BROADCASTING • Telecasting