Broadcasting Telecasting (Oct - Dec 1951)

RADIO, TV TAX RELIEF A SINGULAR tax victory for the radio-TV industry was chalked up on Capitol Hill last week. Conferees meeting on the 1951 revenue-tax bill in Congress have approved a formula that is designed to provide excess profits tax relief to the industry. Section approved by the conferees is Senate Amendment 237, section 519 of the bill (HR 4473), which specifically relates to television broadcasting companies. It would permit radio-TV broadcasters to use their own earnings or the industry rate of return for computing their tax. The longer established broadcaster would benefit from the first method, that is, EYE '52 OUTPUT Congress Previews Needs IN AN almost unprecedented move, members of both the Senate and House Banking & Currency and Small Business Committees last Friday called in top mobilization officials for a first-hand preview of 1952 first quarter production needs. The special session was set by Sen. Burnet Maybank (D-S. C), chairman of the Senate Banking Committee. Key witnesses scheduled were Defense Mobilizer Charles E. Wilson and Defense Production Administrator Manly Fleischmann. Mr. Wilson was prepared to apprise members of the four groups of production and allocation plans in "crucial" months ahead — the last quarter of this year and the first of 1952. Mr. Fleischmann was quoted as telling Sen. Maybank that "the real impact of military production" will be felt early next year. Sen. Blair Moody (D-Mich.), who heads the Senate Small Business Subcommittee, said he had received complaints from numerous groups protesting "drastic cutbacks" in civilian production. He added that his group would look into cutbacks with an eye to minimizing plant unemployment in the shift to defense output. MBS ADDS FOUR New Station Affiliates FOUR more stations have signed affiliation contracts with Mutual, Earl Johnson, MBS vice president in charge of station relations, announced last week. They are: WCPM Cumberland, Ky., 250 w, 1490 kc, owned and operated by the Blanfox Radio Co.; KOSY Texarkana, Tex., 500 w day and 1 kw night, 790 kc, owned by Gateway Broadcasting Co.; WKMH Jackson, Mich., 1 kw, 970 kc, owned by Jackson Broadcasting and Television Corp.; WIRO Ironton, Ohio, 250 w, 1230 kc, owned by Glacus G. Merrill. using his firm's earnings as the base. The relief section is patterned after that contained in the bill (S 1861), introduced by Sen. J. Allen Frear (D-Del.). It was the Senator's measure upon which the Senate Finance Committee based the new relief provision [B • T, Oct. 1, July 23]. Agreement on the relief provision was announced last Tuesday following a session of the conferees. Work on all sections of the revenue bill was completed last Thursday. Following the release of a conference report, both branches of Congress must concur. Then, the bill will be sent to the White House for President Truman's signature. The new revenue bill will raise $5.7% billion, the second-largest increase in history. President Truman had asked Congress for a $10 million boost. Increased is the regular corporation income tax, some $2.3 billion, retroactive to last April 1. Excess profits tax hikes are effective next Jan. 1. Can Gain 2% In computing the excess profits tax, corporations will be given credit on 83% of earnings in the best three years of the 1946-49 period, thus lopping off two percentage points of the current 85% credit. The conferees did not change the capital gains tax which stays at 25%, but cooperatives would be required to pay taxes at the regular corporate rates on earnings not paid to members. Last week's action seemed to broadcasters like the ship coming out of the storm. The case of the TV broadcaster, who suffered losses while attempting to get established in the new medium, was repeated both in the House Ways & Means Committee and the Senate Finance Committee this year and also last year, so much so that it began to resemble an old wives' tale. The relief boat could not get out of dock in the House, where the Ways & Means Committee ignored the pioneer telecaster. But in the Senate, the arguments hammered home by NARTB and RTMA, among many, got the ship underway. When Sen. Frear introduced his bill, the boat entered port, after weathering its greatest storm during Senate debate [B • T, Oct. 1]. Highlighting the debate was the about-face taken by Sen. Hubert H. Humphrey (D-Minn.), who while supporting the Administration's battle to up revenue, aligned himself with the l-adio-TV relief forces. Also aiding were Sens. Walter F. George (D-Ga.), chairman of the Senate Finance Committee, and Eugene D. Millikin (R-Col.). It was their appeal which scattered Administration forces led by Sens. Joseph' C. O'Mahoney (D-Wyo.), Paul H. Douglas (D-Ill.) and Herbert H. Lehman (D-N. Y.). Judis-Herbert Nuptials BERNICE JUDIS, vice president and general manager of WNEW New York, and Ira M. Herbert, WNEW vice president and sales manager, were married in Reno, Nev., a month ago, a station spokesman confirmed last week. I in DAYTIME scheduling of 3V2 hours daily by Philip Morris over ABC gets sendoff by (I to r) O. Parker McComas, president of cigarette firm; John E. McMillin, Cecil & Presbrey account executive for the firm; and Robert E. Kintner, ABC president. Messrs. McComas and Kintner were guests at special premiere Sept. 30 of PM sponsored Against the Storm, one of the daytime segments. NCAB MEETING 'Selling Radio' Is Theme "SELLING RADIO" will be the theme of the North Carolina Assn. of Broadcasters' fall convention Oct. 18-19 at the Battery Park Hotel, Asheville. First day's agenda includes addresses by Ralph Hardy, director of government relations, NARTB, on "Selling Radio to the Listener"; Oliver Gramling, assistant general manager of AP, who also will present a film, "Your News"; and Ken Sparnon, BMI. On Friday, Maurice Mitchell, vice president of Associated Program Service, will speak on "Selling Radio to the Advertiser." The two-day schedule is rounded out with several panel discussions of current industry topics and a business session of the NCAB. Wednesday evening 8 p.m., as a preliminary' to the convention, North Carolina FM broadcasters will meet at the Battery Park. AFRA DRIVE Continues in San Diego WEST COAST chapter of AFRA last week started its drive to organize the two remaining nonAFRA stations in San Diego — KSON and KRDO— and negotiated $5 weekly increases for announcers at the city's four other member stations. Claude McCue, executive secretary of AFRA, this week expects to start talks with the two nonAFRA independents. Other four stations, network affiliates KFSD, KGB, KFMB and KCBQ, approached by AFRA for cost-of-living increase on the contract expiring May 1952, agreed on a $5 weekly increase for announcers effective Oct. 1 for two years. Increase brings present salaries from $65 to $70 for new announcers; $75 to $80, after first year. CONTROL OF TSN Goes to Richardson, Cagle, Dillards MAJORITY control of Texas State Network is transferred in a $900,000 transaction filed for approval with the FCC last week. The network would acquire 3,550 shares of stock, 71% of the outstanding shares, from a group of stockholders, paying $118,000 in cash plus long-term notes. * Remainder of the stock will be held by Sid Richardson, Texas oil man and TSN director, 900 shares; Gene L. Cagle, TSN president as well as president-general manager of the TSN-owned KFJZ Fort Worth, 500 shares, and the Dillard family, of Wichita Falls, 50 shares. TSN owns KABC San Antonio, WACO Waco and KRIO McAllen, all in Texas, as well as the Fort Worth outlet. Rearrange Capitalization Purpose of the transaction, it was explained, is to permit redemption of a portion of the capital stock on a fair and reasonable basis and to rearrange capitalization. The network is paying $250 a share for the stock. Selling their stock to TSN, according to the FCC filing, are Ruth Roosevelt Eidson, former wife of Elliott Roosevelt who was an official of the network, 800 shares; Emily Roeser Trust, 650 shares (the late Charles Roeser was in partnership with Mr. Richardson) ; Ellen Roeser trust, 650 shares; Ellen Roeser, 175 shares; Emily Ruth Parker (Emily Roeser), 175 shares; Vivienne Hanger Laughlin, 250 shares; Charles Roeser estate, 50 shares. Interest in the TSN headquarters building in Fort Worth is transferred to those selling stock, with the network to rent back the building from them. TSN was founded in 1938. It has 17 affiliates plus the four owned stations and is sold to advertisers as a unit. Elliott Roosevelt, former TSN president, left the network in the early '40s. The transfer application was filed for TSN by Eugene L. Burke, attorney. BROADCASTING • Telecasting October 15, 1951 • Page 27