Broadcasting (Apr - June 1950)

I 5. iff HOLDINGS Go °" Sgle Todgy THOMAS S. LEE Enterprises Inc., Los Angeles, including Don Lee Broadcasting System, KTSL (TV) and other accumulated properties, will be offered for sale effective today (May 15) at the direction of Public Administrator Ben Brown of Los Angeles and at the request of R. D. Merrill of Seattle, 83-yearold sole heir of the late Mr. Lee. Competitive bids will be received but the offers will not be opened until a date to be determined — possibly 10 days or two weeks hence. Ray Wright of Seattle, attorney for Mr. Merrill, last week entered separate negotiations having to do with disposition of the Cadillac dealerships held by Thomas S. Lee Enterprises. Conferences were held in Detroit last week looking toward sale of these California agencies to General Motors Inc. The figure mentioned was in the neighborhood of $2,500,000, with the likelihood that certain of these dealerships would be turned back to present executives of Don Lee Motor Corp. Because of the nature of the California law, there can be no formal bidding until the Public Administrator so declares. A number of interests, however, it is reported, have conferred informally with the Public Administrator and Mr. Merrill's associates. No Formal List While no formal list has yet been released, it was variously reported that among organizations interested are CBS, primarily for KSTL (TV) and possibly certain real estate; Music Corp. of America, said to be acting as agent for other interests; Ed Pauley, oil magnate, Col. A. L. Lintner, capitalist and businessman who maintains his headquarters in Anchorage, Alaska, and two brokerage houses acting on behalf of clients, Dean Witter & Co. and Blyth & Co. Both Lewis Allen Weiss, chairman of the board, and Willet Brown, president of Don Lee, are understood to figure prominently in a number of the offers on a management basis. Mr. Brown has also directed certain of the Cadillac operations and it was expected that he would retain the Hollywood distributorship. Reports were current that bids under $8,700,000 for the entire Don Lee structure would not be entertained. Involved are 5,750 shares of stock in Thomas S. Lee Enterprises Inc., issued in a single certificate and held by Public Administrator Brown. Separable sale of the various properties, however, is regarded as not only permissible, but likely. Don Lee Broadcasting System, embracing the four AM stations (KHJ Los Angeles, KFRC San Francisco, KDB Santa Barbara, KGB San Diego), the TV station and one FM outlet (KFJ-FM), as well as 19% interest in Mutual, is not a separate entity but does business under that style as a unit of Thomas S. Lee Enterprises Inc. The radio properties, which in addition to those enumerated include Pacific Northwest Broadcasting System Inc., have a book value of $3,700,000. The overall properties are understood to have a book value of $8,700,000. Thomas S. Lee Enterprises Inc. is said to have several million in cash assets. The inheritance tax liability is believed to be in excess of $4 million. CITES OLYMPIA Honored tor Safety Spots YEAR-LONG public service spot campaign has won national recognition for the Olympia Brewing Co., Olympia, Wash. National Safety Council has awarded a public interest award for "exceptional service to safety" during 1949, to Olympia for its traffic safety spot drive sponsored on 28 Washington stations from April 4, 1949 through April 1, 1950 [BROADCASTING, March 28, 1949]. Washington's Governor Arthur B. Langlie will personally present the award to Peter Schmidt, brewery president, in ceremonies in the governor's office. The spot campaign, devoted entirely to traffic safety messages, involved a total budget of $80,000 and was placed through the Seattle office of Botsford, Constantine & Gardner. Over 11,232 spots were used during the campaign. The 20-second transcribed announcements were prepared in cooperation with the Accident Prevention Division of the Washington State Patrol. National Safety Council also presented public interest awards to NBC, Mutual-Don Lee and 78 radio and six video stations [Broadcasting, May 8]. Mr. Lee's will, filed shortly after his death last Jan. 13, left the entire estate to Mr. Merrill, his uncle by marriage and a retired Seattle businessman. The will provided that Mr. Merrill was left the estate "to be divided as he sees fit." The will is being contested by Mrs. Nora S. Pattee of San Marino, Cal., a maternal aunt. Mr. Merrill thereafter announced his intention of selling the properties via competitive bids. CBS, it is understood, previously had made a tentative offer for the television station and Don Lee's new headquarters at 1313 North Vine St., Hollywood. The offer, understood to have been approximately $1 million for KSTL (TV) and $2 million for the building, was said to have been rejected. MCA May Bid MCA's main interests are in the entertainment field. Consequently, it is generally believed that the firm, in proposing to bid, will function as an agent for another group. Mr. Pauley, well known in Administration circles, has long been interested in both radio and TV. Some time ago he made overtures for a San Francisco TV station and also un Esso Shifts in N. Y. ESSO STANDARD Oil Co., New York, has made one change in one market, New York, in its 10 year old station schedule of the Esso Reporter since its agency, Marschalk & Pratt, New York, sent out letters advising the stations carrying the program of a revaluation of its station list [Broadcasting, May 1]. The company will drop the show on WJZ New York, after 15 years, on May 31 and will start June 16 on WNBC New York, 12-12:05 p.m., five times weekly and on WOR New York, 6-6:15 p.m., three times weekly. successfully tried to acquire KLACTV Los Angeles. He also has been an applicant for original television facilities. The two brokerage companies — Dean Witter and Blyth — are said to be acting for undisclosed New York syndicates. Mr. Lintner, who holds diversified interests, including war surplus properties, oil, mining and aviation interests, is declared to be acting for himself and possibly a small group of associates. He is being represented by the Washington law firm of Dow, Lohnes & Albertson. BARRY NAMED is NBC Vice President NBC officially announced last week the appointment of Charles C. Barry, ABC vice president in charge of programming, as NBC vice president in charge of programs for the radio network [Broadcasting, May 8]. Mr. Barry will join NBC June 5. He will report to Charles R. Denny, NBC executive vice president who is temporarily heading the NBC radio network pending appointment of a vice president. NEW WJR RATES Wismer Announces Revision REVISION of WJR Detroit's daytime rates was announced last week by Harry Wismer, assistant to the president of WJR, WGAR Cleveland and KMPC Los Angeles. Nighttime rates will remain the same, in line with policy set by other stations he said: Other segments of the broadcast time were increased or reclassified in accordance with audience potentials as determined by recent extensive research, Mr. Wismer pointed out. He said present advertisers will continue on old rates for six months, or until Nov. 6, 1950. Under the new rates, WJR's Class A time will range from $200 for five minutes to $1,000 for one hour; Class B, $134 for five minutes to $670 for one hour; Class C, $110 for five minutes to $550 per hour; Class D, $80 for five minutes to $400 for one hour; Class E, $100 for five minutes to $250 for one hour. Announcement rates go from $40 for the 6-7 a.m. slot to $150 for one minute from the 6-11 p.m. period. Coca-Cola Replacement AS A summer replacement for the Edgar Berg en-Charlie McCarthy Show, the Coca-Cola Co., beginning June 4, will sponsor The Pause That Refreshes, in the same time slot as the Bergen show, CBS, Sunday, 8-8:30 p. m. The musical series will feature Percy Faith and his orchestra and will present prominent singers as guest stars. Agency for the sponsor is D' Arcy Advertising, New York. The Edgar Bergen show will return to the air in early October. Page 24 • May 15, 1950 BROADCASTING • Telecasting