Broadcasting (Oct - Dec 1950)

within two months. A month later, Congress sent orders to hold up the decision, two days after Sen. Ed Johnson (D-Col.), ranking minority member of the Senate Interstate & Foreign Commerce Committee, introduced a bill to break down clear channels and limit power to 50 kw. Congressional hearings were held in April, As the record was closed, Sen. Charles Tobey (R-N.H.), acting chairman of the Senate committee, announced that he had ordered a full-scale probe of FCC. In June the committee notified FCC that it was free to issue its Clear Channel decision. No action was taken, however. In an election year, the proposed decision in the Port Huron case (WHLS Port Huron, Mich.), prohibiting stations from censoring political broadcasts even if the material was felt to be libelous, drew fire from all sides. Although the license of WHLS was renewed, the majorities views on Sec. 315 were upsetting to the industry. Conflicts with local laws were pointed up as Texas and New Jersey jurists held that local libel laws would be enforced despite FCC's tentative ruling that stations could not be held accountable for statements by politicians. Hedging slightly from its original stand, FCC adopted the decision in early July. The new version said "it would appear" that broadcasters would be relieved of responsibility for comments in political statements. The permit of WGOV Valdosta, Ga., was renewed in August although the station had admitted censoring a political speech. WGOV Decision Draws Fire From Capitol Hill On Capitol Hill the decision drew fire as a House select committee started its probe of FCC. In testimony by FCC Chairman Wayne Coy, he said the decision was not intended as a rule or regulation and common sense processing of material would provide safety. Fairness will be the yardstick, he said. Another election year issue, the Mayflower Decision against editoralizing by stations, also drew fire. In March FCC opened hearings on the seven-year-old decision. At the end of April the proceeding ended, after a long recess in between, and observers felt that the ban would not be lifted unless strict restrictions were applied. There was speculation several times during the year that some action would be taken but RCA INSTITUTES, INC. One of the leading and oldest schools of Radio Technology In America, offers Us trained Radio and Television technicians to the Broadcasting industry. Address inquiries to Placement Director RCA INSTITUTES, INC. A Service of Radio Corporation of America 350 W. 4th St., New York 14, N*. Y. it failed to materialize. FCC's Avco Rule on station sales also caused the Commission trouble during1948. KMED Medford. Ore., balked when FCC ruled that the station should be sold to Medford Radio Corp. rather than Gibson Broadcasting, the firm which originally had "purchased" the station. Mrs. W. J. Virgin, KMED owner, told FCC in January that she would not sell the station to Medford Radio Corp., a competing bidder under the Avco Rule. In September Medford withdrew and Mrs. Virgin filed another application for sale of the station to Gibson. No final action was taken during the year. In October papers were filed with FCC asking transfer of WHAS Louisville and its FM and TV properties to Crosley Broadcasting Corp. Consideration was $1,925,000. By year end the Fort Industry Co. and Bob Hope, filing as Hope Productions Inc., had entered the competitative bidding and a hearing appeared certain. Earlier in the year FCC rejected a request that AM and FM properties be sold separately under Avco. FCC Turns Attentions To Giveaway Programs Giveaways, heavily sponsored throughout 1948, received a great deal of attention from FCC. The case of WARL Arlington, Va., which FCC had contended violated Sec. 316 of the Communications Act against lotteries with its Dollar for Answers program, continued throughout the year against the background of growing complexity. In August FCC proposed rules which would forbid most giveaways with the exception of a few which used only studio audiences. As the basis for its action it cited Sec. 316 of the Act. Toward the end of the month Frank Bow, general counsel of the House Select Committee to Investigate FCC, wrote to Chairman Coy pointing out that Sec. 316 had been removed from the jurisdiction of FCC by Congress on June 25, 1948, and made a part of the Criminal Code. FCC, however, contended that despite the removal of Sec. 316 it still had power to issue rules and after a slight delay from the original date held hearings on giveaways in October. When the Mansfield and Lorain (Ohio) Journal companies applied to FCC for facilities in the two towns, hearings were held in February and May. A proposed decision of denial was made final in July and the Commission said that the papers, under joint ownership, have "sought to suppress competition in the dissemination of news and information and to achieve an advertising monopoly in the community through the use of exclusive advertising contracts." The newspapers took the case to the U. S. Court of Appeals for D. C. in November. Mr. Richards The news policies of G. A. Richards, owner of KMPC Los Angeles, WJR Detroit and WGAR Cleveland, came under FCC surveilance i n March, following a complaint filed by the Radio News Club of Hollywood. A hearing into the charges was ordered by FCC late in November. The U. S. Court of Appeals for the District of Columbia dealt FCC a blow when, in April, it ruled that FCC must grant existing stations the right to be heard when it is alleged that they will be adversely aflFected by the grant of a pending application. The ruling followed a petition by WCKY Cincinnati to reverse FCC's non-hearing grant for a 10 kw daytime station in P h i 1 a d el p h i a on WCKY's 1-B clear channel of 1530 kc. When the Commission attempted to appeal the decision it was turned down. Later in the year an appeal by WJR Detroit made the decision even stronger. At that time the Appeals Court said even a claim of interference outside the protected contour requires a hearing. Competitive hearings on the license renewal bid of WBAL Baltimore and the request for the facilities by Public Service Radio Corp. were held during the first part of the year. The record was closed April 15 in the case which had started in 1945. No definite action was taken by the Commission during the year. Ban Set on Station Sales Which Reserve Time for Seller Rules banning station-sale contracts which reserve time for the seller's use were proposed in February. Comments were filed and in July FCC held formal hearings. The proposal was adopted later. In February the FCC said that programs of horserace information will not be frowned upon if they are part of a balanced program service. The problem of allocations for television resulted in FCC's September freeze on licensing and hearing functions pending study of the 475-890 mc region. Five Baltimore stations and a commentator were cited for contempt of court under the "Baltimore Gag Rule" which forbade publication of certain information about persons accused of crimes. r\AB and other interested parties came to the defense of the stations, charging censorship, and trial was postponed until 1949. Paul M. Titus, Rudolph J. Fjellstrom and Charles J. Husband, principals in a proposed "fifth network," were sentenced Aug. 23 to serve prison terms of from one to five years for violating California's Corporate Securities Act. They had pleaded guilty June 10 to selling stock without a permit from the state corporation commissioner. Mildred Gillars, "Axis Sally," was indicted in September by a federal grand jury in Washington on charges of treason in connection with radio broadcasts for the Nazi's during the war. Conviction of Douglas Chandler, former U. S. broadcaster in Berlin, on charges of treason was upheld by the First U. S. District Court of Appeals in Boston Dec. 3. With the nation engaged in a cold war, radio's place in defense planning was scanned throughout the year. Nineteen members of the industry served on a committee which helped draft the communications aspects of civil defense planning. The Munitions Board and other defense planning agencies also called upon radio representatives for sound advice. Meetings to draw a new North American Regional Broadcasters Agreement, scheduled for August, were postponed until 1949. At the High-Frequency Broadcasting Conference held in Mexico City no definite action was announced before the end of 1948 and conferences continued into the next year. The Assn. of Independent Metropolitan Stations was formed with 18 members during a meeting at KSTL St. Louis on July 10. New or reorganized agencies announced during the year included: W. Wallace Orr Adv. Agency, offices in New York, Baltimore and Philadelphia; Fletcher D. Richards Agency, New York, replacing Campbell-Ewald ; Taggart (Continued on page 158) RhymalineTime,featuring emcee David Andrews, pianist Harry Jenks and KMBC-KFRM's celebrated Tune Chasers, is one of the Heart of America's favorite BROADCASTING • Tcl ecasting morning broadcasts. Heard each weekday morning from 7:30 to 8:15, Rhymaline Time is a musical-comedy program that pulls more mail than any other current "Team" feature. Satisfied sponsors have included, among others, Katz Drug Company, Land -Sharp Motors, Jones Store, and Continental Pharmaceutical Corp. Contact us, or any Free & Peters "Colonel" for availabilities! KMBC of Kansas City KFRM for Rural Kansas October 16, 1950 • Page 157