Broadcasting (Oct - Dec 1950)

1947 (Continued from page 152) radio stations to go ahead with expansion and rebuilding plans. In August RCA made an offer to help other manufacturers get started in the production of television sets and on Oct. 5 the first telecast was made from the White House with President Truman, Charles Luckman, head of Lever Brothers and chairman of the Citizens Food Committee, and others participating. Both the Republican and Democratic conventions were set for Philadelphia largely because that city offered the best television facilities of any of those bidding for the meetings. On Nov. 13 the Boston-Washington coaxial cable was opened wath the first program carried on WNBT (TV) and WABD (TV) New York, WPTZ (TV) and WFIL-TV Philadelphia, WMAR (TV) Baltimore, WRGB (TV) Schenectady, WNBW (TV) WMAL-TV and WTTG (TV) Washington, with NBC facilities used in the multiple hookups. Personnel-wise 1947 saw a number of changes at the Commission. On Feb. 7 President Truman nominated Commodore Edward M. Webster to fill the post left vacant when Chairman Paul A. Porter left the FCC to become OPA administrator. The nomination was approved by the Senate. Wakefield Name Withdrawn, Jones Named to FCC In May the President submitted the renomination of Ray C. Wakefield, California Republican, to the Commission. Then on June 18 he unceremoniously withdrew the nomination and named instead Rep. Robert F. Jones of Lima, Ohio, for the seven-year term. The switch in nominations was made without the approval of Chairman Denny who had been known to favor Mr. Wakefield. The Jones nomination was approved by the Senate. A change in the chairmanship came when Chairman Denny resigned effective Oct 31, to accept a post with NBC as vice president and general counsel. His salary in the new post was reported at $35,000 a year as compared with the $10,000 he received at FCC. On Dec. 26 the President nominated Wayne Coy, director of the Washington Post stations, to the chairmanship. The nomination had been predicted in Broadcasting in October. On the same day Chief Engineer George E. Sterling was nominated to a commissionership to succeed veteran E. K. Jett, who resigned as of Jan. 1, 1948, to become vice president and director of radio of the Baltimore Snnpapey-s. This made two promotions within the year for Mr. Sterling who had succeeded George P. Adair to the chief engineer's post in March. Other highlights of the Commission year included the request for a $7.5 million budget, the largest in history. An appropriation of $6,240,000 was eventually granted. On June 10 the channel separation rule was adopted allowing assignments of AM stations only 30 kc apart in adjacent cities within certain engineering restrictions — but not within the same cities. Stanley Hubbard Buys Control of KSTP In mid-March the Commission reversed itself in two days in the KSTP Minneapolis-St. Paul case allowing President Stanley E. Hubbard to buy control after Aviation Corp. relaxed its option for repurchase. Mr. Hubbard, who already owned 25% of the stock, bought the remaining 75% for a reported $825,000. Two events late in June did much to relieve the labor troubles which had beset radio for many months. One was the enactment of the Taft-Hartley Act, which put management on an equal footing with labor in negotiations. The same week the Supreme Court upheld the Lea Act as constitutional. Both the Lea Act and the TaftHartley Act made feather-bedding unlawful and appeared to make unlawful Mr. Petrillo's proposed rule that music broadcast on AM could not be duplicated on FM. Upholding of the Lea Act started the wheels turning again in the 1946 WAAF Chicago suit against the AFM leader for calling a strike against the station. Both SALES GETTING REPRESENTATION Contact our nearest office Chicago 185 N. Wabash Avenue Atlanta Rhodes-Hoverty Building Baltimore 2104 N. Charles Street San Francisco 68 Post Street Los Angeles 684 S. Lafayette Park PI. New York 366 Madison Avenue Execuiive Office REPRESENTATIVES • AM • FM • TV AFM PRESIDENT James Caesar Petrillo (right), listens to some legal points from Joseph A. Padway, AFM chief counsel. sides began to prepare for trial which was set for Dec. 15. In direct answer to the double blow of the Lea Act and the TaftHartley Act, Mr. Petrillo ordered the networks to stop use of live music on FM which was used on AM. Negotiations dragged on for weeks and the AFM head refused arbitration efforts. On Sept. 15 Mr. Petrillo ordered Continental, an FM network originated through WHFM (FM) Rochester and WASH (FM) Washington, to stop use of live music. Negotiations continued and on Oct. 18 Mr. Petrillo announced a ban on recording to begin Dec. 31. All recording companies began to build up a backlog of records. Meanwhile, following up NAB charges, the Justice Dept. had begun a probe of the violation of the Taft-Hartley and Lea Acts. Sentiment against the music czar began to crystalize on all fronts. A Chicago theatre owner refused to pay AFM stand-by fees. The CIO began planning entry into the music field, anticipating the possibility of capitalizing on AFM errors. The weight of industry action against the union leader and of public opinion, together with threatened loss of revenue for AFM members, finally began to tell. After threatening to withdraw all union musicians from network programs after Jan. 31, 1948, Mr. Petrillo, late in November, announced that he was approaching negotiations with the networks on the basis that "we want to settle." A week later he announced that AFM would lift its ban on network co-op programs, telling Broadcasting that in the future the single engagement rate for network programs would apply to co-op broadcasts. As the year ended the music czar had postponed proposed talks with the networks until "after the holidays." The hearing in the government's case was postponed to Dec. 29. As the year ended the labor leader was in court and his musicians were set to begin the long recording strike. Other activities on the labor front included a six-and-a-half year contract signed Oct. 30 by the Mr. Feltis Radio Writers Guild with the four networks. The pact marked the first time that ownership and control of scripts by freelance writers had been established. It covered authors' rights and credits, minimum fees and establishment of a joint adjustment board representing both networks and writers. The Broadcast Measurement Bureau enjoyed an active year with Hugh Feltis, B M B director, making the rounds of NAB district meetings. First copies of the area audience report were issued in March. Many top-fiight agency and advertising executives spoke in support of the service but there were complaints from subscribers as to the accuracy of the figures and the methods used. A Broadcasting Trends survey immediately after the report was issued found that 74% of subscribers found methods effective. On July 24 the BMB board set up a 15-point plan to assure continuous operation of the service with ANA and AAAA support. In September C. E. Hooper offered his service to BMB but his plan was rejected by the directors. In November the NAB Finance Committee considered the knotty problem posed by the U.S. Treasury ruling that BMB did not come under the non-profit classification and was being billed for taxes in the neighborhood of $200,000. The firms of Root, Ballantine, Harlan Bushby & Palmer and of Ernst & Ernst, accountants, were named as counsel to fight the tax case. As the year ended 536 AM members were signed up as subscribers to BMB. The NAB held its 25th convention Sept. 15 in Atlantic City and adopted new Standards of Practice to become effective Feb. 1, 1948. Other pressing problems and the actions taken on them included: The preliminary draft of legislation designed to take the FCC out of the program and business fields; invitation to other organizations to join the effort to solve problems posed by Mr. Petrillo's demands; a resolution proposing appropriate NAB action to secure reversal of the FCC Mayflower decision withholding from broadcasters rights to present their own opinions on the air. On Sept. 26 the National Assn. of Radio Station Representatives was formed to promote spot radio. The organization gi-ew out of a meeting called by Paul H. Raymer and Edward Petry in New York. Mr. Raymer was elected chairman, H. Preston Peters, of Free & Mr. Raymer Page 154 • October 16, 1950 BROADCASTING • Telecasting