Broadcasting (Oct - Dec 1950)

Horse Race Policy (Continued from page 28) missioners noted that prior to the conclusion of the hearing WTUX had modified its programs so as to be of no aid to illegal gambling and also presented plans for programs "in the public interest." The decision noted "Wilmington bookmakers have used not only WTUX but also WWBZ Vineland, N. J., WPWA Chester, Pa., WITH Baltimore, and to a lesser extent, WSNJ Bridgeton, N. J., WANN Annapolis and WPEN Philadelphia. Some observers considered last week that although the WTUX ruling shows FCC presently is inclined to handle the horse racing problem on a case-to-case basis, the background in the proceeding and legislative concern on Capitol Hill this past summer emphasize the importance of the Commission's policy as buttressed by the WTUX decision. Tighter Policy Seen That the FCC policy would be tightened was evidenced initially in the WTUX hearing [Broadcasting, June 20, 1949]. Local police authorities, whose complaint against WTUX precipitated the proceeding, testified they had turned to FCC for help since the problem of broadcast aid to gamblers appeared to be more than a single-community affair due to radio signals extending over city and state boundaries. Legislative concern over the issue arose with a bill (S 3358) to ban all interstate transmission of gambling information and directed specifically at radio and TV. Although the bill was supported in the Senate it was opposed by FCC as impractical and ultimately dropped from further consideration as the Senate approved the overall crime investigation proposed by Sen. Estes Kefauver (D-Tenn.). The WTUX case was brought into the three-weeks hearing on S 3358 while Wilmington police authorities appeared to testify on the problem [Broadcasting, May 1, 8, Oct. 2]. The FCC majority, "in view of the overwhelming weight of the evidence to the contrary," concluded "we are impelled to reject the self-serving declaration of innocent design by Messrs. Macintosh and Robinson and to find that the horse racing information broadcast over Station WTUX, was with the complete knowledge of the station's owners, of a high degree of aid to bookmakers in the Wilmington . . . area." "Since the station's principals continued to supply information to bookmakers with full knowledge that the latter were using the data in their illegal operations," the majority continued, "we must conclude affirmatively on the question of whether the horse racing information was to any extent intended or designed to be of assistance to persons engaged in illegal activities in connection with betting on horse races." Thus, despite the applicant's "belated reforms" in programming, FCC considered the "record of poor performance a better indicator of what may be expected in the future than the applicant's promises to reform." The majority stated it had considered "the circumstances that the operation" of WTUX "was the first broadcast experience for Messrs. Macintosh and Robinson and that they relied, to some extent upon the advice of counsel in continuing their horse racing format beyond the time when they were on notice that their programs were assisting illegal gambling activities." FCC said it found here, though, "no compelling reason to modify our judgment that a grant of license renewal would be inconsistent with the public interest." FCC continued: There is substantial evidence to indicate that Messrs. Macintosh and Robinson even now do not understand the duties and obligations of a licensee. The record is clear that they persisted for a considerable period in retaining the horse racing program format even after adequate notice that the information being broadcast was of aid to illegal gambling. In relying to any degree upon the advice of counsel, the applicant must be taken to have proceeded at its own risk, as Mr. Macintosh, himself an attorney, must have known. It is the licensee to whom the Commission must turn for ultimate responsibility. That responsibility cannot be evaded with the plea that counsel did not exercise that proper judgment which the Commission must expect from the licensee. FCC found basic policies of WTUX programming to be "clearly in the interest" of Wilmington in that they proposed to furnish the local audience with a different service than that broadcast by other stations there, as well as to provide sustaining time for civic, charitable and religious organizations. "However, the same cannot be said of much of the program service developed by the station in implementation of these policies," FCC declared. Programming Outlined The decision noted that WTUX set aside the "entire afternoon period, Monday through Saturday, for one program, the 1290 Sports Parade, which consists of recorded music, several newscasts, frequent announcements of horse racing and other sports news and results, and two 15-minute sports resumes." Since WTUX is a daytime only outlet, FCC questioned WTUX's program balance in view of the standard outlined in the horse race program decision involving WWDC Washington, issued in February 1948. "Even in the station's chosen field of emphasis, sports programming," FCC found that WTUX "is limited in its coverage by a lack of available time to carry play-byplay accounts of football games, 'baseball games and other daytime sports." The majority concluded that "without going further, it is clear that other interests in the community . . . have been neglected . . . and that program im OHIO MEH Admen Stress Radio In Defense Role VARIOUS phases of 1950 trends in advertising were discussed by national advertising and sales promotion executives at the seventh annual Advertising Conference sponsored by Ohio State U. in Columbus, Oct. 6-7. If a single dominant note emerged from the talks it was : All broadcasting— AM, FM, TV and facsim * ile — is important in girding America for any eventuality. Fred Lazarus Jr., president. Federated Department Stores Inc., Cincinnati, advocated curtailed expenditures of government for non-military purposes. "Military needs come first, we must assume there is little prospect balance has resulted." FCC recognized the broadcasting of sports news is a "function of a medium of mass communication," that "dissemination in interstate commerce of information concerning horse racing is not in itself an unlawful activity under existing Federal law," that racing and betting at tracks are legal in Delaware, and that there is a high interest in racing in the Wilmington area. FCC nevertheless stated it could not be concluded upon the record in the WTUX case "that interest in horse racing is such a dominant factor in this community's life as to warrant the extensive, detailed and year-round coverage of that sport which . . . WTUX has provided." The decision found that "untU recently," WTUX "broadcast not merely the results of the races and mutuel prices paid, but also a large variety of other racing information" including scratches, track conditions, off-times, predicted post times, jockey changes and insertions and identified horses by their Armstrong selection numbers. Until shortly before the hearing WTUX had no policy of delaying results, the decision continued. Results were aired on the average of four and six minutes after a race and in some instances within one and two minutes, FCC found. Those legally betting at tracks would not be listening and the average listener, even if interested in sports, would not need this detailed data so quickly, FCC observed. "On the other hand," FCC said, "each of the details regarding horse racing which was broadcast by the station had a particular and peculiar utility to bookmakers." FCC noted the station owners continued this programming even after reading the WWDC decision and conferring with local police authorities who complained about the broadcasts. FCC also noted the afternoon program was "sponsored" by Armstrong Daily Sports Inc., "publisher of a daily 'scratch sheet' devoted to horse racing information." The decision said this paper had wide circulation among race fans, "including persons engaged in illegal bookmaking," and almost everyone arrested in Wilmington for bookmaking possessed one. "Even more significant is the circumstance that the information broadcast was certainly not being aimed by the sponsor at those placing legal bets at the race tracks," FCC stated. "Although we recognize that the intent of the sponsor of the program is not determinative of the broadcaster's design, the acceptance— in fact, the solicitation — ■ of the account by Messrs. Macintosh and Robinson, reasonably, on the basis of the record, attributing to the latter an awareness of the foregoing considerations, carries with it an implication of participation in the sponsor's purposes." of genuine peace in the near future. . . . The American people know they have a burden to bear. But they also know it is well within their capacity," Mr. Lazarus said. He added that all efforts— "foreign, domestic, social and financial"— need to be coordinated and it is here that broadcasting can make its largest contribution. "If this coordination is accomplished there can be no doubt about the outcome," he said. Ben R. Donaldson, director of advertising. Ford Motor Co., discussed the use of TV by a national advertiser. Benjamin S. Katz, Gruen Watch Co. president, talked about the use of advertising in selling "higher priced merchandise." Dave Arons, of Gimbel Bros., Philadelphia, underlined that his firm's experimentation with TV has entered a new phase : "To us, it is a daily advertising medium with . . . stability. . . ." Ira W. Rubel, Rubel & Field, Chicago advertising agency, discussed agency management problems and advocated the use of incentive plans for cutting costs. H. H. Dobberteen, vice president, Benton & Bowles, New York, spoke about media analysis and selection, pointing out that the number of national advertisers has increased from about 2,800 in 1940 to 4,800 in 1950. He said: "Any given advertiser faces greatly increased competition from all advertising. This has apparently resulted in a decrease in the net effectiveness of advertising expenditures for a given product or purpose." Dr. Kenneth Dameron, Ohio State professor, arranged the conference in co-operation with the Fifth District Advertising Federation of America. Other keynote speakers included: John Goodwillie, Alexander Smith & Sons Carpet Co., New York; Richard M. Rairigh, McCannErickson, Cleveland, and Russell Brown, vice president. Allied Stores, New York. Pollock at KXOB GRANT POLLOCK has taken over the general mana g e r s h i p of KXOB Stockton, Calif. Anouncement of the appointment had been made last month [Broadcasting, Sept. 18]. Mr. Pollock, formerly manager of" KVON Napa, Calif., succeeded Keith Pinion who moved to KXOA Sacramento, under the same ownership as KXOB. Mr. Pollock BROADCASTING • Telecasting October 16, 1950 • Page 33