Broadcasting Telecasting (Jan - Mar 1951)

McCARTHY-PEARSON BOUT Episode Draws Varied New Comments Lehman Bros. Centennial LEHMAN Bros., investment banking company and pioneer in radio-TV financing, celebrated its 100th anniversary last week by publishing a chronicle of the firm's activities since its founding as a grocery and dry goods store in Montgomery, Ala., in 1850. The chronicle traces the investment company's 18year association with the radio-TV industries, beginning in 1932 with an investment in CBS, and continuing in the late 30's with the first public underwriting of a television company, Allen B. DuMont Labs. Lehman Bros, has also undertaken financing for RCA and Avco Corp. WMIT (FM) SOLD Reactivation Asked WMIT (FM) Charlotte, N. C— The Southeast's first FM outlet which ceased operation last April after eight years of pioneering — may return to the air under new ownership. The project represents an investment of more than a quarter-million dollars. Bid was filed with FCC last week for the station's assignment by Mt. Mitchell Broadcasters, a new firm headed by W. Olin Nisbet, Jr., Charlotte investment banker, which also has purchased WMIT'S plant atop Clingman's Peak from Gordon Gray, former licensee. The price, including 10 kw transmitter, was reported as $27,500. The application specified a new 50 kw amplifier would be acquired { for $27,000 to boost the station's output to 300 kw effective radiated power on Class B Channel 295, 106.9 mc. WMIT previously had ERP of 75 kw. Antenna height is 3,076 ft. above average terrain and more than 6,500 ft. above sea level. Service Planned The application reported the 1 mv/m contour of the 300-kw station will include 27,380 sq. mi. having a population of 2,153,900 while the 50 uv/m contour will include ' 50,600 sq. mi. having a population of 4,017,800. Total estimated cost is $54,500, FCC was told, while first year operating cost was specified as $40,000 with revenue expected i $50,000. Hours of operation will be 8 a.m. to 10 p.m. Mr. Nisbet, president and 73.33% owner of Mt. Mitchell Broadcasters, is vice president-treasurer of Interstate Securities Corp., of which he owns 31%. Vice president and 20% owner of the applicant is John C. Erwin, executive vice president and 14% owner of Allison Erwin Corp., hardware firm, and vice president 40% owner of Alwin Corp., real estate, both in Charlotte. Secretary-treasurer and 6.6% owner of the applicant is W. H. B. Simpson, part owner of WMRC Greenville, S. C. Mr. Simpson is president and 70% owner of the Georgia, Florida & Alabama Railroad and holds extensive dry goods merchandising interests in Belk Simpson and other stores through the South. Mr. Gray, owner of WSJS-AMFM Winston-Salem, N. C, made a heavy investment in WMIT. He established the pioneer FM outlet in 1942 on the old 50-mc band. He evidenced great disappointment last April when the decision was made to discontinue the outlet [Broadcasting • Telecasting, April 10, 1950.] Mr. Gray expressed belief at that time that FM "is the superior form of sound broadcasting" and "sincerely" hoped this feeling would one day be proved financially as well as technically right. Mt. Mitchell Broadcasters told FCC it wanted to reactivate WMIT and to continue "rendering an FM service needed in the area." It explained operating economies "consistent with good operation and program service will be necessary, particularly during its early stages." No Duplication "Without any intention of lessening competition or duplicating essential service to the public," the applicant explained it proposed to lease certain services, facilities and assistance from other stations. Initially, according to the application, studio space is to be obtained from WSOC Charlotte and some WSOC staff members will be employed on a part-time basis. FCC was told the fulltime staff is to include J. F. McFarland as chief engineer-manager. Mr. McFarland, the application said, had been employed by Mr. Gray and has continued on the property to maintain it. Other staffers to be hired include three engineer-announcers, one program manager, one sales manager, one trafficbilling manager and a promotion manager. JOHN H. NORTH Chicago Agency V.P. Dies PRIVATE funeral services were to have been conducted Saturday for John H. North, 54, vice president in charge of media for Aubrey, Moore & Wallace, Chicago agency. Mr. North died suddenly of a heart attack Wednesday morning in his Evanston, 111., home. He was named vice president of the agency in 1949, and since then had supervised all radio and television business. Mr. North worked at the agency 27 years. Before joining it in 1924, he worked at Lee O. Duncan Advertising Agency and was a salesman for Armour & Co., both Chicago. He was first president of the Radio Club of Chicago when it was organized in 1944. Survivors include his wife, Elizabeth Gunderson North; two sons, J. Duncan North, 10, and James Bruce North, 4; his mother, three brothers and a sister. EPISODE between Sen. Joseph McCarthy (R-Wis.) and Drew Pearson, ABC commentator and news columnist, crackled into a news feud last week with sniping coming from both sides of the opinion fence. The dispute grew out of remarks made by Sen. McCarthy on the floor of the Senate and a statement Dec. 22 by Adam Hat Stores, New York, that it was dropping Mr. Pearson's broadcasts effective Feb. 18 [Broadcasting • Telecasting, Dec. 25, 18, 1950]. Meanwhile, ABC, which is understood to be planning continuance of the commentator's broadcasts at least until the Adam Hat contract termination date, said any formal statement before that time would be "unlikely." Sen. McCarthy had levelled two attacks against Mr. Pearson. The Senator's accusations were coupled with mentions of his sponsor, telling the Senate the newsman would not be "pouring out his poison into millions of American homes every Sunday if the Adam Hat Co. did not hire him and pay him to do it." He called on the public to boycott stores handling the sponsor's products and urged newspapers buying Mr. Pearson's column, as well as radio stations, to see that his voice is stilled. Doris Fleeson, who writes a Washington news column, took a hard look at the Senator's remarks and commented: "Radio advertisers have consistently refused to fight the battle for free speech which is the heart of the American system. The free press which radio feels free to criticize perhaps justly, simply does not stand for the kind of interference with constitutional prerogatives that radio takes for granted." Columnist Westbrook Pegler, on the other hand, commended the Senate speeches and added a bit of fuel of his own. He implied that a condition existed "which should never have been suffered to develop in radio subject to government control." Charles V. Molesworth, president of Adam Hat Stores, in announcing the termination of Mr. Pearson's contract, said: "Mr. Pearson's contract covered a period from Sept. 2, 1949, to Feb. 18, 1951, and because of a planned change in advertising media for 1951 the contract will not be renewed or extended." Mr. Pearson's reaction to the Adam Hat announcement was: "The Adam Hat people have been swell to me." COSTS LESS becM iti Ut A CHIEF ENGINEER SAYS: . . . have been using the Fairchild Tape Recorder constantly . . . over 5 000 hours now . . . practically no maintenance . . . get more work done in less time . . . optimum performance always . . . has operating features no other equipment has . . . my men work without fatigue . . . has literally paic . . . front office thinks I'm a magician! FROM THE FRONT OFFICE: . . . tried to get cheaper tape recorders . . . looked good hold specs or stand up for long . . . Fairchild gives my customers better recordings . . . brings me more customers . . . can do shows now we couldn't with other recorders . . . brought in new sponsors . . . and my engineers' budget asks almost nothing for maintenance . . . how soon can we get delivery on another unit? . . . regret we didn't get the Fairchild Tape Recorder sooner! WE HAVE FAIRCHILD TAPE RECORDERS: Columbia Records (N. Y.) . CBSTV IN. Y. and Hollywood) . Reeves Sound Studios (N. Y.) . WJR (Detroit) • U. S. Signal Corps Photographic Center (L. I. City) Italian Broadcasting System (Rome, Turin, Milan) • General Motors (Detroit) CAN YOU AFFORD NOT TO OWN IT? RECORDING EQUIPMENT CORPORATION 154TH STREET AND 7TH AVENUE WHITESTONE, N. Y. Send Bulletin TR-3 About FAIRCHILD PROFESSIONAL TAPE RECORDERS My Name Company Address Telecasting • BROADCASTING January 1, 1951 • Psge 63