Broadcasting (Oct - Dec 1950)

1942 (Continued from page 131) network rules. On appeal by the networks, the court March 2 decided to stay effective date of the regulations. The U. S. Supreme Court decided March 16 to hear the case and on June 1 sent the network rules back to the Federal district court in New York for full review on the merits. The court in New York dismissed the NBC and CBS injunction petitions Nov. 16, continuing its stay order until appeal could be taken to the Supreme Court, which scheduled a hearing for early 1943. Another important decision by the court, handed down Sept. 12, held that a broadcast station has a definite right acquired through its operating license and the FCC cannot tamper with or degrade a station's facilities without giving it a hearing. Early in the year rumblings were heard on Capitol Hill pointing toward a Congressional investigation into the FCC's affairs. Rep. Eugene Cox (D-Ga.) introduced a probe resolution Feb. 2. SCOTUS Upholds Right Of Stay Orders Against FCC An important Supreme Court ruling April 6 upheld right of the U. S. Court of Appeals for the District of Columbia to issue stay orders against FCC decisions. The U. S. Court of Appeals for the District of Columbia upheld the FCC in permitting subpoena of witnesses and conducting a newspaper ownership investigation, but it also served notice on the Commission that it should not discriminate against newspaper ownership. FCC held hearings during the spring months but reached no decision during the year. FCC Chairman James Lawrence Fly was questioned at length on the Commission's newspaper ownership proceedings during Senate committee hearing on his nomination by President Roosevelt to continue in office another seven years. The Senate confirmed Chairman Fly's nomination June 29. The only inquiry into FCC's policies held during the year was that of the House Interstate & Foreign Commerce Committee, Mr. Woods which heard testimony over a 10week period in the spring and early summer. This hearing dealt with the Sanders Bill to curtail FCC's powers. FCC Chairman Fly testified eight times against the bill, with Comr. T. A. M. Craven favoring it as leader of an FCC minority. The Sanders Bill was still in committee as the year ended. While the netwoi'ks were in the throes of legal proceedings all during 1942, they also experienced the normal ups and down s — mostly ups — of business enterprises. As a result of the netw o r k monopoly rules, forcing RCA to divest itself of one of its networks, RCA Jan. 9 announced formation of Blue Network Co., a separate whollyowned subsidiary of RCA. Mark Woods was elected president and Edgar Kobak executive vice president. The company started with $2 million working capital. Mutual network Jan. 10 filed a SIO million suit against RCA-NBC charging conspiracy in time-option provisions of affiliation contracts. Total network sales for 1941 were estimated by Dr. Frank Stanton, CBS research director, at $107 million, 10% above 1940. In early February the four networks, as part of their extensive war activities, joined in producing a program, This Is War, in cooperation with Office of Facts & Figures. Klauber, Keston Get New CBS Positions CBS revamped its executive staff March 25 by naming Edward Klauber chairman of the executive committee and Paul W. Kesten vice president and general manager. William S. Paley, continued as president. In mid-May CBS dedicated a Latin American hookup, with 76 affiliates. Research Director Stanton and Paul M. Hollister, agency official, were elected CBS vice presidents in September. In August CBS had bought WEEI Boston from Boston Edison Co. for $500,000. The network had been leasing the station. Network billings in general more than held their own during the wartorn months of 1942, all four hookups showing an increase during the first half of the year. The new Blue network continued to prosper and Aug. 1 the NBC and Blue networks split up their joint Washington operation. Frank M. (Scoop) Russell continued to direct NBC's capital office. Kenneth H. Berkeley, who had managed WRC (NBC) and WMAL (Blue), was named Blue representative and manager of WMAL. NBC effective Aug. 1 granted an extra over-all 10% discount to sponsors using the full 125-station hookup. Similar arrangements were in effect on other networks. NBC's parent company, RCA, dedicated the industry's most elaborate research laboratory at Princeton, N. J. Mutual departed from precedent in November by naming Dr. Miller McClintock, executive director of the Advertising Council, as its first salaried president. W. E. Macfarlane, business manager of the Chicago Tribune and one of Mutual's founders, continued as chairman of the executive committee and Alfred J. McCosker, president of WOR New York, continued as chairman of the board. Fred Weber continued as network general manager. Network rates were placed under scrutiny of the Federal Trade Commission but FTC explained it was merely a preliminary study. As the year ended the important Yankee and Colonial Networks in New England were sold to General Tire & Rubber Co. Networks and stations alike were harried during the year by difficulties with the American Federation of Musicians. AFM President James C. Petrillo decreed that all recording and transcribing of music for public consumption would cease Aug. 1. In a letter to record and transcription manufacturers, dated June 25, Mr. Petrillo notified them their licenses to make recordings would expire July 31 and would not be renewed. Dr. McClintoch The Dept. of Justice promptly went to court, asking an injunction, but the suit was dismissed Oct. 12 by Federal Judge John P. Barnes, in Chicago, on the ground that it was a labor dispute. A short time prior to the decision the Senate had adopted the Clark resolution calling for an investigation of the AFM. Sen. Worth Clark (DIdaho) introduced legislation Sept. 23 to curtail authority of the AFM president to interfere with recording. Senate Sets Up Group To Probe AFM Recording Ban A special Senate subcommittee to investigate the AFM recording ban named Herbert M. Bingham, Washington attorney, as counsel and directed that hearings begin Jan. 12, 1943. Dept. of Justice took an appeal from Judge Barnes' decision to the U. S. Supreme Court. While war was going on all over the world, NAB had a little war all its own. Rumblings of discontent, heard during the winter, erupted in March into a threatened reorganization, with demands for new leadership and removal of networks from active membership. The NAB board, at a March 1920 meeting in New York, served notice it would defend President Neville Miller to the limit. This amounted to a vote of confidence. Intra-industry discord was put aside at the NAB convention May 11-14 in Cleveland as broadcasters decided to devote their efforts to the job of providing maximum war service. The convention voted active membership for networks. In early March Walter J. Damm, WTMJ Milwaukee, had been elected president of FM Broadcasters Inc., formed to promote that form of aural broadcasting. Another association. Network Affiliates Inc., was formed in mid-May to work apart but not against NAB. President was Eugene C. Pulliam, WIRE Indianapolis. At the same time Independent Radio Network Affiliates was dissolved. It had been Mr. Pulliam 1942 — AMERICA'S first year of active participation in World War II was marked by the intensifying of radio's effort toward the goal of victory. Left photo: At Hollywood conference of J. Walter Thompson Co. executives, advancement of the war effort through coordination of network programs was discussed by (I to r) Daniel Danker, Southern California vice president in charge of radio; Norton W. Mogge, Los Angeles office manager; Stanley Resor, JWT president, and Norman Strouse, San Francisco executive. Center photo: As a security measure, entire staff of KMBC Kansas city, led by Manager Arthur B. Church (pictured), was finger-printed for the local police files as well as the FBI. Right photo: Government wartime messages were the topic of September conferences with Washington officials of the OWI. Attending (I to r) were Don Belding, Los Angeles vice president of Lord & Thomas; Jack Smalley, Hollywood manager of BBDO; Nat Wolff, OWi deputy chief in charge of Hollywood office; Seymour Morris, chief of allocation division of OWI; Douglas Meservey, OWi deputy chief of Washington bureau; and Sidney N. Strotz, western division vice president of NBC.