Broadcasting Telecasting (Jan-Mar 1956)

closed circuit WHITNEY BUYING KGUL-TV? Conversations looking toward acquisition of ch. 11 KGUL-TV Galveston-Houston by J. H. Whitney & Co. for $4 million plus, reportedly are in final stages with agreement likely this week. Paul E. Taft, president and general manager of CBS outlet and 40.5% owner, would continue as directing head (and presumably would re-acquire 10% in new company). Whitney Co., headed by John Hay (Jock) Whitney, brother-in-law of CBS board chairman William S. Paley, owns ch. 6 KOTV (TV) Tulsa, also CBS affiliated, and has investments in community antenna operations. KGUL-TV began operation in 1953 and includes among its minority owners James Stewart, film star. B«T DEGREE to which President Eisenhower is sold on radio as medium to reach people everywhere evident in his comments to recent callers. Radio conveys to people who cannot read or write full meaning of democracy, he told one recent visitor. And he backed that up tangibly last week by asking GOP leadership in Congress to put steam behind his request for $47 million increase in funds for USIA, primarily to expand "Voice of America" operations. B»T CAN IT BE COINCIDENCE? Washington observers are speculating whether there is connection between Federal Trade Commissioner Lowell Mason's headlinegrabbing speech against radio-tv commercials last week (story, page 28) and fact his present term on FTC expires in short five months. Like FCC members, FTC commissioners serve seven-year terms. Mr. Mason's expires Sept. 25 this year. He already has accepted two more speaking engagements for April and May. B»T DAVID J. MAHONEY, president and treasurer of New York and Hollywood agency bearing his name, is resigning to become president of Good Humor Corp. (ice-cream), Brooklyn, N. Y., one of his clients. Agency itself will probably merge with another shortly. B»T CLOSETED ON COMMISSIONS • Because of importance and delicacy of agency compensation problem growing out of AAAA consent decree, Assn. of National Advertisers, at its Spring Meeting in Hot Springs, Va., last week held two closed sessions on subject — one scheduled, other impromptu — at request of members. Effort, said ANA President Paul West, is to "try to let in as much light and avoid as much heat as possible" (story, page 31; editorial, page 112). B»T WHILE it wasn't openly expressed, feeling prevailed at Assn. of National Ad vertisers convention that Dept. of JusticeAmerican Assn. of Advertising Agencies decree may slow down tendency of big agencies to get bigger and small ones smaller. Reasoning was that if conventional 15% commission gradually gives way to individually negotiated fees based on agency services rendered, small agencies will be in better position than they are now to bid for and retain accounts. B»T AGITATION AD HOC • All is not serene on ad hoc engineering committee named by Senate Commerce Committee last June to evolve tv allocations. Dr. Edward L. Bowles, MIT professor of electrical engineering and chairman, reportedly favors project involving both engineering and economics to be undertaken by top rated university (presumably MIT) with special fund of $150,000-$200,000. Other members, however, are represented as feeling this would conflict with Senate Committee hearings as well as possibly cut across FCC's own special network study for which it had received $80,000 last year, with additional $141,000 earmarked for this year. Sidney S. Alexander, former CBS Inc. economic advisor, on July 1 joins MIT School of Industrial Management. B»T ANOTHER try being made to get Treasury and Congress to agree on elimination of 10% excise tax on tv, this time on allband color receivers. Chairman Magnuson (D-Wash.) of Senate Commerce Committee last week reportedly obtained signatures of practically all members of his committee on petition to Treasury Secretary George M. Humphrey advocating removal of excise tax to encourage new color tv industry. This came after testimony of H. Leslie Hoffman, president of RETMA, and of Elmer W . Engstrom, RCA senior executive vice president, endorsing tax removal. B«T IGNORANCE NO DEFENSE • Word from New Hampshire politicians is that not all radio stations have caught up with changes made four years ago in political broadcasting laws. Before New Hampshire primary last week, some stations reportedly tried to charge premium rates for paid political broadcasts. As amended in 1952, law stipulates that candidates must be given same rates as commercial advertisers. B»T JOHN KUCERA, vice president in charge of media. Biow Co., New York, expected to resign in mid-April to join Ted Bates & Co., New York, in executive capacity. Mr. Kucera's departure from Biow Co. is in addition to three timebuyers — Sol Israel, Madeline Morrison and Isabel V. Ziegler — who joined N. W . Ayer & Son last week (see story page 38). NO DULL BOYS • It's tentative yet, but NBC is drawing plans for a gala convention of all its affiliates, radio and tv, at Boca Raton, Fla., next December. It's understood affiliates will be approached shortly for reaction to proposal for combined work-play conclave Dec. 12-16. Plush Boca also was setting of NBC's last convention spectacular, held in late November 1951 in observance of NBC's 25th anniversary but marred by discordant problems that officials hope will be missing this time. This year's would mark NBC's 30th anniversary. There would be separate sessions for radio and tv, with business primarily limited to first two days and weekend left free. Planners are thinking in terms of capacity turnout of about 600 persons, including affiliate wives. B»T ALTHOUGH it has not been offically announced, WBBM Chicago has been gravitating more and more in recent weeks toward music and news format in local programming similar to that of independent WIND. Trend has been more noticeable on weekend Mai Bellairs' program, which CBS o&o radio outlet conceived as Chicago-type Monitor or service project. Rest of week, stress is on live music. B»T SHIFT IN CHICAGO? Oft-recurring report ABC Radio is thinking of shifting its Chicago affiliation from WLS to WGN gained additional credence last week. It's understood members of network's stations relations department last Tuesday discussed possible agreement with Frank P. Schreiber, vice president and manager of WGN Inc. (WGN-AM-TV). Matter reportedly has been referred to J. Howard Wood, president of WGN Inc. Whether fact WGN is stockholder in MBS, with which it has been affiliated for years, would hamper any eventual negotiations was not immediately ascertained. B»T EASTMAN Kodak through J. Walter Thompson Co., New York, understood to be talking to other networks as well as NBC in hope of bettering its present time on NBC-TV. Advertiser currently sponsors Screen Director's Playhouse Wednesdays at 8:30 p.m. EST. If new time is not available, firm may retain present period but change program format for fall presentation. B»T MOTORIST NETWORK • Pitched at heavy east-west traffic on U. S. Rt. 66 between California and Midwest, Rt. 66 Radio Network is under organization by Newton T. Bass, president, Apple Valley Rancho and KAVR Apple Valley, Calif., and John Charles Thomas, KAVR executive vice president. Plan points up new advertising potentials of growing autoradio audience. Broadcasting • Telecasting ■* ■ ~ ' = March 19, 1956 • Page 5