Broadcasting Telecasting (Jan-Mar 1956)

at deadline SARNOFF STOCK OPTION PLAN SUBMITTED RESTRICTED stock option for purchase of 100.000 shares of RCA common stock, granted Board Chairman David Sarnoff at time of signing new 10-year contract to continue his services to RCA to March 1, 1966, will be submitted for stockholder approval at his request, RCA proxy statement showed Friday. New contract, signed last July 1, extends Brig. Gen. Sarnoff 's services for 10 years from his normal retirement date, March 1 this year. Gen. Sarnoff was 65 Feb. 27 [B»T, Feb. 27]. New contract provides for 10-year continuation of services "among other things" and is at present rate of compensation, $200,000 annually. Proxy statement, issued in preparation for stockholders' annual meeting May 1, notes he was granted restricted stock option to buy 100,000 common shares at $49.64 per share. This, statement explains, represented 95% of stock's market price at date of grant and is $4.89 more than its closing price on March 1 this year. Option is exercis Daly Will Take Time Demand To FCC If Networks Refuse LAR DALY, Republican candidate for nomination for U. S. President and governor of Illinois in that state's primary April 10, told B«T Friday he will carry equal time appeal (early story page 42 ) to FCC if networks refuse request or if they fail to respond to his time bid by today (Mon.). Mr. Daly also reported receipt of letter from Julius Brauner. secretary of CBS Inc., asking more information on his political aspirations. Offices of Illinois Secretary of State and Chicago Board of Election Commissioners confirmed Friday that Mr. Daly is within legal rights in entering name for both offices in Illinois primary on basis it is preferential, not tantamount to nomination itself and not binding on Republican national convention delegates from Illinois. Don Butler, chief clerk, Illinois Secretary of State's office, told B»T that, therefore, Mr. Daly is not actually candidate for President and that it would "carry no weight" in national convention. Mr. Butler said he has so advised networks and that he has received similar queries from newspapers and other groups. He noted 19 states maintain presidential primaries. KTSA San Antonio Acquired By McLendon for $306,000 GORDON McLENDON, head of McLendon station group, acquired KTSA San Antonio, Friday for $306,000, subject to FCC approval. Station operates on 550 kc with 5 kw fulltime. Blackburn-Hamilton Co., media brokers, handled transaction. Seller was O. R. Mitchell, Dodge-Plymouth dealer, who acquired station from San Antonio Express and Evening News year-and-a-half ago when newspapers had to sell station when they bought KENS-AM-TV San Antonio from Storer Broadcasting Co. Sale was made to McLendon Investment Corp., Dallas. able in whole or in part on or before June 30. 1965. Although RCA counsel advised that stockholders' approval is unnecessary, statement noted, Gen. Sarnoff himself requested that it be made subject to their ratification. Proxy statement showed Gen. Sarnoff was highest salaried RCA officer in 1955, with $200,000 salary (he did not participate in incentive plan and will not under new contract). It placed his retirement income, had he retired at age 65, at $85,400 per year but pointed out that payment is deferred as result of contract's extension. Next highest salaried was President Frank M. Folsom, $165,000 salary plus $32,991 incentive award paid in 1955 and $132,009 to be paid over next four years "if earned out." Next were research and engineering executive vice president Elmer W. Engstrom ($85,000 salary, plus incentive awards) and vice president and technical director Charles B. Jolliffe ($72,500 salary plus incentive awards). Mutual Makes First Sale Under Circulation Guarantee IN FIRST new sale under its "guaranteed cost-per-thousand" plan. Mutual has signed Brown & Williamson Tobacco Co. (Viceroy and Kool cigarettes) for one minute participation per night in Mon.-Fri. nighttime "multimessage plan" shows, authorities reported Friday. One other advertiser renewed and expanded its contract on guarantee basis' and another has renewed. In addition. J. B. Williams Co. (shaving products), through J. Walter Thompson Co., New York, has added two participations per week in Standby With Bob & Ray to bring its total to five per week, but this, it was understood, does not involve circulation guarantee. Guarantee plan, initiated by Mutual last month [B»T, Feb. 20], offers to warrant advertisers that they will reach specified number of homes during course of contract — which usually must be reasonably long term in order to qualify — or Mutual will supply make-good time free. Number of homes guaranteed varies according to program involved, desirability of time period, and size of network lineup. HAPPY BIRTHDAY HALF-HOUR musical program in belated recognition of Mamie Eisenhower's 59th birthday will be presented by CBSTV March 22 (1-1:30 p.m. EST) and will be offered to all other tv networks. It will consist of pickup from luncheon party being given for Mrs. Eisenhower by Wives of Federal Independent Agencies of U. S. Government at Washington's Willard Hotel, and presentation of First Lady's musical favorites from CBSTV studios in New York. Mrs. George C. McConnaughey, wife of FCC chairman, is government wives' group's cochairman in charge of entertainment. • BUSINESS BRIEFLY RETIRING QUIETLY • In contrast with hullabaloo created at time Hazel Bishop Inc., N. Y., bowed out of NBC-TV's Sunday night spectaculars, company is preparing to surrender co-sponsorship of NBC-TV's This Is Your Life (Wed.. 10-10:30 p.m. EST) after April 4 telecast on friendly note with network. Hazel Bishop reportedly expressed disagreement with NBC-TV on using "repeat" kinescopes of This Is Your Life during summer. Procter & Gamble, Cincinnati, co-sponsor of show, understood to have negotiated with network to assume full sponsorship starting April 1 1 and extending through September 1957. Agency for P & G is Benton & Bowles, N. Y. CROSS-COUNTRY • Studebaker Div. of Studebaker-Packard. through Benton & Bowles, N. Y., placing radio-television spot announcement campaign starting in April for 13 weeks, all over country. Campaign will run every day. QUICK BUYS TV • Lambert Hudnut Div. (Quick home permanent) buying 40-week television spot announcement campaign in 15 markets starting this week. Kenyon & Eckhardt, N. Y., is agency. TOBACCO PLACING • American Tobacco Co., N. Y. (Half and Half pipe tobacco), placing radio spot announcement campaign in 12 major cities for 13 weeks, starting April 1. Sullivan. Stauffer. Colwell & Bayles, N. Y., is agency. BEER BUYS • Miller Brewing Co. (Miller High Life), Milwaukee, buys participations on NBCTV's Tonight for 52 weeks starting June 28 in $700,000 deal closed by network's Central Div. Plans call for schedule of 120 spots to be staggered on two-or-three-per-week basis. Agency. Mathisson & Assoc.. Milwaukee. Sum presumably represents part of monies diverted from Miller coverage of Milwaukee Braves baseball broadcasts, which it bought on cosponsorship basis for 1956. FTC Hits Co-op Ad Deals Between Drug Chain, Suppliers CRACKDOWN on abuses of cooperative advertising arrangements received added impetus, and involved tv, Friday when Federal Trade Commission issued complaints against United Cigar-Whelan Stores drug chain (1,350 stores) and four suppliers. Cited with United CigarWhelan were Bymart-Tintair Inc (hair preparations): Serutan Co. (Serutan and R.D.X., dieting aid); Johnson & Johnson (baby products, first aid preparations), and Anahist Co. (Anahist, Hist-O-Plus). Suppliers are charged with violating Clayton Act (Sec. 2 [d]) by giving drug chain special allowances in return for advertising on former's tv shows without making proportionate allowances available to competing customers. Drug chain is charged with "inducing or receiving" special allowances when it "knew or should have known" competitors weren't offered same. Alleged offenses occurred in 1954. Tv programs the drug firm sponsored: Whelan's Playhouse, Whelan's Film Playhouse and Whelan's Cavalcade of Stars. Broadcasting • Telecasting March 12, 1956 • Page 7