Broadcasting Telecasting (Jan-Mar 1956)

FCC IN DITHER OVER SUBCOMMITTEE QUESTIONNAIRE THAT "lost" questionnaire from the House Small Business Subcommittee to the FCC about executive interference in Commission decisions [B»T, Jan. 23] turned up last week and has the FCC in a dither. The four-page, itemized list (apparently buried in the Christmas bulk) asks the Commission among other things to list, in detail and chronologically every tv grant — hearing cases and all — since Jan. 1, 1953. The committee virtually asks for the names of each member of the staff and the commissioner who handled the case, the name of the examiner, the staff counsel, others who may have handled the case, whether any contacts outside the record were made to any staff member or any commissioner and the disposition of the case. Jt also asks for a complete list of executive personnel, their salary grades and positions, and what cases they have handled. On a question of out-of-town trips, the committee asked for the names of key personnel and commissioners making such trips, where they went, how much they spent, and why they made the trip. It also asked if any key staffers or commissioners had received honorariums. "If they really want this information in this form," one FCC executive snarled, "we'll have to close up shop for six months." The subcommittee, headed by Rep. Joe L. Evins (D-Tenn.), plans to hold in midFebruary hearings regarding Executive department influence in federal regulatory agencies, it was learned last week. The bulk of the FCC's activity in tv came after Jan. 1, 1953, it was pointed out. Processing of tv applications resumed in July 1952 after the 1948-52 freeze, but the hearing cases did not actually get under way until 1953. Thus, the committee's request for details on tv grants means that the Commission would have to put a force to work on practically all its post-freeze tv activity, it was said at the Commission. The FCC has made almost 650 tv grants since July 1952. jority decided to issue grants of vhf stations in the five areas where deintermixture had been requested (Hartford, Evansville, Peoria, Madison and Albany) because "we felt that the public deserved to have the service." "We felt that we had to get service on the air," he said. "If there is anything in the world I dislike, it is a freeze. It scares me to death when I hear the word." Sen. Pastore introduced the question of deintermixing Hartford and Providence. "Now why can't you give three uhf stations to Hartford and three vhf stations to Providence without putting them all out of business?" the senator asked. Mr. McConnaughey said that when the FCC finishes its new allocation plan, Hartford and Providence might wind up that way, "and I don't think we are going to put anybody out of business in the meantime." Sen. Pastore said that what he couldn't understand was how the FCC could continue intermixing and then later "deintermix your intermixture." "I think, to be fair with ourselves, we ought to say that if we are not going to deintermix, we ought to tell these people that," said Sen. Pastore. "... I am sorry and regret to say this: I do not see any hope of the solution of this problem. I really don't see any hope of solution with the attitude of the FCC." The senator added later: "I don't think we are ever going to have the day of deintermixing because it is so badly scrambled that you will never unscramble it. And you are in the process now of scrambling it up even more, because the minute you throw out selective deintermixture, you throw nationwide deintermixture right out the window." Comr. Robert T. Bartley, who with Comr. Rosel H. Hyde has dissented to the vhf grants In deintermixture cases, made a brief statement NOW! TWA's SUPERQr CONSTELLATIONS NON-STOP TO EUROPE! • World's most luxurious service — yet husband and wife save $360 over summer fares on First Class (lights to Furope with TWA's new Discount Fares! • Full-length sleeper seats at no extra fare! • Superb meals . . . attentive hostesses! Fly now — pay later with TWA's "Time Pay Plan." Just 10% down, 20 months to pay the balance. See your TWA travel agent or call TWA, Trans World Airlines. v the finest . . . TWA TRANS WORLD AIRLINES agreeing with Sen. Pastore's belief. "It is my own view," said Mr. Bartley, "that failure to deintermix those particular areas will foreclose deintermixture in other areas." Comr. Hyde spoke at length on his attitudes toward the subject. "The basic issue," he said, "is whether the United States, with its growing economy and its expanding need for communication service, and particularly for television service, is going to have a system with low ceilings built in or whether or not it is going to have a system with sufficient number of channels to give opportunity for development of a comprehensive, competitive free enterprise system." Mr. Hyde said that no matter how the spectrum was juggled, the practical fact was that to give the U. S. a tv system capable of growth, the ultra high frequencies would have to be used. "What we should be doing," said Mr. Hyde, "is turning our attention to a policy that would provide incentives or inducements to improvement of sets in the use of all of these channels." The "most disturbing thing about a policy which seems to be looking for a solution to this problem in vhf only," said Mr. Hyde, "is the depressing effect it has, and the discouraging effect it has, on efforts to develop the ultra high channels." Emphasis on vhf, he said, "gives a very unfortunate psychology which affects the judgments made by timebuyers, by networks, by set buyers, by manufacturers. While the uncertainty about this policy has been prevalent, the percentage of sets being manufactured for all-channel reception has constantly been going down." Comr. Robert E. Lee was the last FCC witness to testify. In a short presentation he popped his toll tv for uhf proposal. "I feel there is some merit," he said, "to considering subscription television on the uhf only under certain limitations, since their problem is a matter of revenue. "If this thing is good, I feel that maybe it should be given a trial on uhf only, and under controls such as a percentage of the broadcast time. "If you can broadcast on subscription television 10% of the time you are on the air; if you want more time for subscription, you have to give more free, and that sort of thing. Perhaps even a consideration on some kind of a limit on the rates, and certainly not permit it where there is only one service." Sen. Pastore asked Mr. Lee if he did not see a danger in his proposal. If subscription tv proved profitable on uhf, wouldn't vhf stations want to participate? Mr. Lee said that "if this thing is in the public interest, you would presumably extend it, so that everyone can see it." In closing Mr. Lee said that if commercial television were able to obtain more vhf space from government or other users, he would favor legislation permitting operators of existing uhf stations to occupy the newly found v's without comparative hearings. Senate Committee Favors Funds for Magnuson Probes THE SENATE Rules & Administration Committee last week reported favorably on the Senate Interstate & Foreign Commerce Committee's request for $250,000 for investigations, including the current tv network probe. The measure (S Res 163) was expected to come up for Senate action last Friday or today (Monday) or tomorrow, since current funds for the committee will not be available after Jan. 31. The $250,000 appropriation would be effective from Feb. 1, 1956, to Jan. 31, 1957. It is $50,000 more than last year. Commerce Committee Chairman Warren G. Magnuson (D-Wash.), in asking the $250,000, noted that $50,000 of that received for last year is being returned unspent, largely because the committee's probe of tv networks and uhfvhf troubles was slow getting started due to a short first session and resignation of key staff people during the year. House Unit Sets Hearings On Anti-Alcohol Ads Bill HEARINGS will be held Feb. 16-17 by the House Interstate & Foreign Commerce Committee on a bill (HR 4627) to ban alcoholic beverage advertising on radio and tv and in other media. Chairman Percy Priest (D-Tenn.) said proponents of HR 4627, introduced during the first session of the 84th Congress by Rep. Eugene Siler (R-Ky.), will testify Feb. 16 and opponents Feb. 17. The Senate Interstate & Foreign Commerce Committee will hold hearings on a companion bill (S 923) Feb. 15-16 [B*T, Jan. 23]. Page 46 • January 30, 1956 Broadcasting • Telecasting