Broadcasting Telecasting (Oct - Dec 1951)

NPA STUDIES Radio-TV Materials Status PROSPECT that the radio-TV industry may be granted relief from certain building limitations by allowing broadcasters to self-authorize greater quantities of scarce materials was under consideration by the government last week. This possibility arose following a conference between NARTB representatives and officials of the National Production Authority. A decision was expected by week's end. NARTB had sought the meeting on the basis of an NPA order which shifted newspapers and other printing establishments from the commercial to the industrial category. The new order would, in effect, enable newspapers to claim larger amounts of steel, copper and aluminum for projects than are now provided under the commercial classification. According to the government order, issued last Monday, publishing enterprises would be permitted to secure 25 tons of steel, 2,000 pounds of copper and 1,000 pounds of aluminum each quarter without NPA authorization. Broadcasters still are bound by the two-tons-ofsteel, 200 pounds-of -copper ceiling in going ahead with construction, alteration or remodeling projects. NARTB branded the action "highly discriminatory" and reminded NPA authorities of past assurance that neither media would be given "preferential treatment." The issue originally cropped up earlier this year, with the result that the agency rescinded an identical order. The meeting was held in the office of Richardson Bronson, NPA + + + + assistant general counsel. Representing NARTB were Ralph Hardy, government relations director; Vincent T. Wasilewski, attorney; Neal McNaughten, engineering director; Thad H. Brown Jr., television manager and counsel; and Oscar Elder, assistant director, NARTB Public Affairs Dept. The new reclassification, Mr. Bronson said, stems from a reconsideration of "basic criteria." Radio-TV broadcasting is not construed to come under the "industrial plant, factory or facility" category, he explained, since it is not an industry which produces an "end product" like newspapers, books, magazines, etc. NARTB countered that the end products of radio-television and newspapers actually are comparable in terms of public consumption of news and other vital information. Peter Black, special assistant to Production Administrator Manly Fleischmann, said this line of reasoning had been under study by NPA and that reclassification would be considered. NPA officials frankly acknowledged the matter of definition has been a thorny problem in recent months. Other NPA officials present were Rufe B. Newman Jr., director of NPA's Construction Controls Division, and Henry Badoux, his assistant. The Government last Monday also warned radio-TV set and other manufacturers they will face "serious difficulties" in obtaining steel, copper and aluminum for the first quarter of 1952 if they failed to file applications prior to the Oct. 1 deadline. The warning was sounded by Mr. Fleischmann in a statement pointing up the evils of plant shutdowns which would result for lack of materials. By inference, Mr. Fleischmann alluded to manufacturers who produce civilian radio-TV receivers and who are required to file for materials on Application Form CMP-4B. Conceivably, output of station equipment (transmitters, etc.) could be seriously affected, too, if these manufacturers fail to obtain materials for these commercial products. Both categories are subject to the government's Controlled Materials Plan. A number of electronic manufacturers have cited growing unemployment in their plants. Aside from the usual inventory backlog, the problem is chiefly one of cutbacks on the one hand, and lagging defense orders on the other. Broadcasters Fare Well On the construction front, NPA has taken an increasingly dim view of requests for authorization to build or alter present commercial structures. Broadcasters have fared surprisingly well, considering government rejection of over 2,000 bids, though the pinch on scarce materials continues. In cases involving projects already launched, shortage of steel, copper and aluminum has taken some toll, despite small costs estimated in applications filed with NPA. Two most recent examples are those of Pennwire TV Co., Lewis Uftii i w WF' w won Ballooning high, our Mister PLUS Surveys a wide terrain: Says he: "No one compares with us In actual audience gain!" It's ON THE RISE, from coast to coast, This listener-ship of ours, Despite TV, our sponsors boast Millions more tune-in hours! the difference is MUTUAL! +++++++ FOR DETAILS: THE MUTUAL BROADCASTING SYSTEM Page 48 • October 15, 1951 NEW YORK 18, N.Y. + + + + + + + BROADCASTING town, Pa., which proposed to set up a community TV antenna system; Neely Broadcasting Co. (WJAM Marion, Ala.), and KABR Aberdeen, S. D. The two radio stations have received construction permits from the FCC but are not yet on the air. There was little ground for fear, however, that both radio stations would be unable eventually to take the air because of the denials. Lester M. Neely, licensee for WJAM, told NPA in his application that he had started construction Aug. 15 and had set a target date of Oct. 1 for completion. Under FCC Rules & Regulations, CP holders must commence construction within three months of the grant. Neely Broadcasting was rejected in a bid for materials totaling $12,000. Percent of completion of project was not indicated. Because building already has started and FCC had issued a CP, it was believed that Mr. Neely could establish his case for more materials to complete construction and enable the station to go 'on the air. NPA stressed again that denials are not tantamount to final rejection and pointed out the applicant may refile in "subsequent quarters." Authorities conceded that WJAM may prove a hardship case in this instance. In the case of KABR, construction began Aug. 15 and is 65% toward completion. Target date was set by KABR for Sept. 15. Project was placed at $4,465. Pennwire TV Co. started work in August on a project designed "to supply TV signals to consumers in an area where individual reception is impractical" — the counties of Lewistown, Burnham and Derry in Pennsylvania. Its deadline was set for June 1952, with the TV antenna project estimated at $85,000. Construction would consume over 10 tons of steel and some 1,800 pounds of copper. Allen B. DuMont Labs was turned down on TV studio project for its WABD (TV) New York at an estimated cost of $1,150,000, as was CBS Television for similar work at $230,000 [B • T, Oct. 8]. CBS was fortunate on another front, however, receiving authority to proceed with construction on its Gilmore Stadium TV studios valued at $5,330,000. Applicant was Vine Street Realty Corp., Los Angeles. NPA originally had rejected this bid, as reported in Broadcasting • Telecasting, but rescinded the denial last week. The firm reported its project, begun on Dec. 29, 1950, as 5% completed. Its target date was Sept. 30 this year, but additional materials will be needed to speed construction. In such cases as those of KABR and WJAM, authorities pointed out, FCC grant of a CP is not necessarily a primary factor in any consideration of requests. Principal yardstick is availability of materials during any one quarter, with provision for refiling. Tel ecasting