Broadcasting Telecasting (Oct-Dec 1954)

GOVERNMENT FTC Plans Court Action On Violators of Orders THE Federal Trade Commission will bring court action against those firms which persist in unfair trade or monopolistic practices despite formal FTC actions forbidding them, Earl Kintner, general counsel, said last fortnight. Mr. Kintner, who addressed the District of Columbia Bar Assn., said "flagrant" violations of FTC cease-and-desist orders have been discovered through a current commission survey. He said that FTC Chairman Edward H. Howrey ordered the survey when he found that in 4,000 of the 4,500 old cease-and-desist orders in force, the commission had virtually no knowledge whether the companies concerned Page 82 • December 13, 1954 were obeying the orders. The survey began July 1 and about 100 cases are being reviewed each month, Mr. Kintner declared. The FTC general counsel asserted that while the commission has embarked on a policy of using voluntary procedures to enlist the cooperation of businessmen in avoiding improper advertising and competitive methods, it will use "hard-hitting enforcement, wherever we find unwillingness to comply." Mr. Kintner told B®T that the advertising he referred to included radio-tv. He said the FTC maintains one set of standards for all advertising. Because of limited funds, Mr. Kintner declared, the commission has tried to concentrate on cases of "great public interest," such as the investigation of the New York coffee market and of the health and accident insurance industry for false and deceptive advertising. Decision Pends on RCA Plea jj To Switch Suit to Delaware II DECISION was reserved last Wednesday by Senior Judge John C. Knox of the U. S. District Court for the Southern District of New York on an RCA motion to transfer the Justice Dept.'s civil anti-trust suit against RCA to the Delaware District Court [B»T, Nov. 29]. I Counsel for RCA argued the suit should be tried in Delaware because it dealt solely with patent-licensing matters that were the subject of a 1932 consent decree filed in the Delaware, court. RCA maintained that the Delaware court "has reserved continuing jurisdiction with respect to the consent decree of 1932 and activities of RCA and others thereunder." In countering the motion, counsel for the 1 Justice Dept. stated that the primary consideration in such a legal action is "convenience." The government contended that since witnesses and records relating to the suit are available in New York, the New York court should have jurisdiction. The suit was filed by the Justice Dept. in the New York District Court on Nov. 19 [B»T, Nov. 22]. It accused RCA of monopolizing and conspiring to restrain competition in radio-tv licensing business. Named as co-conspirators, but not as defendants, were GE, Westinghouse, AT&T, Bell Labs and Western Electric Co. FTC Commissioner Proposes Parley on Insurance Ads FEDERAL TRADE Comr. Lowell B. Mason last week proposed that interested members of the health and accident insurance industry file an application with the FTC for a trade practice conference aimed at working out problems to prevent misleading advertising. Last October the FTC charged 17 firms in the field with false and misleading advertising [B«T, Nov. 22, Oct. 25]. Comr. Mason, addressing the South Bend Chamber of Commerce, said, "Whenever a bad business habit is engaged in by a group of companies, I have found . . . the same ... is apt to be repeated throughout the industry." He said that he was not discussing the validity of those charges. Mr. Mason said the FTC "has always been more than cooperative wherever respondents evidence a willingness to come forward and dispose of complaints in this manner." FCC Deletes WCOV# WORX FCC last week deleted standard stations WCOV Montgomery, Ala., and WORX Madison, Ind. The deletion of WCOV is a fullfilment of the Commission's condition to the ' purchase of WJJJ Montgomery by Capitol Broadcasting Co., licensee of WCOV-AM-FM-TV [B»T, Oct. 6]. At Madison, the FCC dismissed the application of WORX for extension of time to complete the 1440 kc station. Construction permit was forfeited and the call letters were deleted. WIBG Sale Approved TRANSFER of control of Seaboard Radio Broadcasting Co., licensee of WIBG-AM-FM Philadelphia and 84% -owner of WIBG-TV there, to station President Paul F. Harron was granted by the FCC last week. Transfer results from the sale by sociallyprominent Jack Kelly and family of 30% interest for $250,000. Mr. Harron, presently owner of an identical 30% interest, purchases approximately 28% of the Kelly family interest. Broadcasting • Telecasting 1st AGAIN The Billboard Ma gazine 1954 Disk Jockey Poll Rates Charlie Walker, KMAC's Great Announcer, 1st IN SAN ANTONIO 1st IN TEXAS 6th IN THE NATION The only San Antonio announcer even rated by Billboard in 1954 San Antonio's No. 1 Personality on San Antonio's No. 1 Station