Broadcasting Telecasting (Apr-Jun 1957)

GOVERNMENT Program Producers to Meet With FCC Network Study Group INDEPENDENT program producers who are fighting FCC demands for financial and other economic data — subpoenaed by the FCC's Network Study Staff earlier this month [B»T, April 29, May 6]— have been granted a conference with the FCC's Network Study Committee, the group of four commissioners who are guiding the Commission's network study. The meeting was set for tomorrow (Tuesday) in Washington. The conference was arranged at the request of Harry M. Plotkin. counsel for Entertainment Productions Inc.. one of the program producers under subpoena. Other production companies involved in the squabble are Officials Films, Ziv Television Programs, Television Programs of America, Screen Gems, and MCA-Tv Ltd. and its Revue Productions, subsidiary. The program producers at a hearing in New York a fortnight ago argued that the FCC has no right to subpoena financial and economic information. Counsel for the seven companies charged that such information was not relevant to the network inquiry. They moved to squash the subpoenas. FCC Chief Hearing Examiner James D. Cunningham heard the arguments on the motion to squash and recessed the hearing to give counsel an opportunity to study a transcript of the New York hearing. They were asked to file briefs on the law by May 17. The FCC Network study has been underway since September 1955. It is due to be completed by June 30, 1957. when its $241.000 appropriation expires. The investigatory hearing in New York, the first requested by the network study staff, was made necessary, the FCC said, by the refusal of some producer-distributor interests to furnish all information requested by the study staff. The Network Study Committee of the FCC companies Chairman George C. McConnaughey, and Comrs. Rosel H. Hyde. Robert T. Bartley and John C. Doerfer. Moulder Subcommittee to Name Staff for Investigation Soon NAMES of hired staff members for the sweeping probe of 16 federal regulatory agencies by the House Special Legislative Oversight Subcommittee may be announced later this week following a meeting of the subcommittee scheduled for today (Monday). Rep. Morgan M. Moulder (D-Mo.), subcommittee chairman, last week said, "We are continuing to interview applicants and probably will hire a total of 20 persons for the staff." The congressman had announced earlier that the subcommittee staff probably would consist of "some seven or eight lawyers and from 10 to 15 clerical people" [B»T, April 22]. The House passed a resolution April 11 allotting $250,000 for an investigation to determine whether federal regulatory agencies— including the FCC — have been administering the laws as Congress intended [B»T, April 15]. Most important agencies to be investigated are the FCC, FTC, Civil Aeronautics Bureau, Civil Aeronautics Authority, Federal Power Commission, Interstate Commerce Commission, the Food & Drug Administration, and the Securities and Exchange Commission, Rep. Moulder has said. The congressman noted that the probe will be conducted simultaneously among many of the agencies. House Unit Reports Bill To Tax Players, Recorders A 450-page omnibus bill to revamp federal excise tax laws — approved May 2 by the House Ways & Means Committee — included a new 10% tax on the manufacturers' sale price of wire and tape recorders and record er-players, but contained no proposal to remove the 10% tax on all-channel television sets. The tax measure, however, may reduce the government's excise tax "take" by as much as $900 million a year. It was drafted by the House Excise Taxes Subcommittee headed by Rep. Aime J. Forand (D-R.I.). In hearings held last November and December before Rep. Forand's subcommittee, broadcasters, RETMA officials and the Senate Commerce Committee urged removal of the excise tax on tv sets as a major means to help uhf television [B*T, March 25]. Their proposal to remove the tv tax from tv sets was deferred for later action, but Rep. Forand has not said when further discussion would be held on the matter. WEATHER VANE: Thc Prevailing wind on THAT FCC VACANCY "SMART MONEY' in Washington last week was being bet on Comr. John C. Doerfer to succeed George C. McConnaughey as FCC chairman. But there was no odds-on favorite in the vastly more crowded race for the commissionership which will be vacated by Mr. McConnaughey June 30. A pack of candidates was running hard, spurred to new speed by the withdrawal of the man who a week before was believed to have been given the appointment. The signal for revived effort by other candidates was given last Wednesday by Edward K. Mills Jr., deputy administrator of the General Services Administration. A week to the day after he and key senators had been informed by White House sources that he would be nominated to the FCC, Mr. Mills announced he was staying put at GSA. Within hours others who had sought the FCC job but had resigned themselves to the Mills appointment were back at work shoring up their political support. At week's end, it was still anybody's race, but here were some strong candidates: • Robert L. King, assistant to Vice President Richard Nixon. Mr. King is a former member of the FBI, 1938-45. He joined Southern Comfort Corp., St. Louis, in 1945, becoming vice president of the liquor-coffee firm. He joined Vice President Nixon's staff in 1954. He is a member of the District of Columbia Bar. • James E. McCarthy, dean emeritus of the U. of Notre Dame College of Commerce and director of several Midwest corporations. • George H. Moore, associate counsel of the House Civil Service Committee since mid-April and before that briefly the assistant to the chairman of the Republican National Committee. Mr. Moore was a U. S. Civil Service Commissioner from 1953 until he joined the Republican committee March 1 . • FCC General Counsel Warren G. Baker, who a year ago was reportedly in the running for the chairmanship of the Civil Aeronautics Board. • Samuel Leonard Golan, since 1953 U. S. member of the International Boundary Commission (U. S., Alaska. Canada). There were reportedly still others actively seeking or being supported for the FCC vacancy. The chairmanship, however, appeared to be less of a race. It was reliably understood that Comr. Doerfer had mustered powerful backing, including the endorsement of the retiring chairman. Once before the chairmanship was almost within Mr. Doerfer's grasp. He was seriously considered for it before Mr. McConnaughey got the job. Within the past fortnight, it was understood, Mr. Doerfer's numerous supporters, who include political powers in the Senate, vigorously intensified their efforts in his behalf. What rallied them was the word that Mr. Mills was to be appointed not only to the FCC vacancy but also to the chairmanship. Informed sources speculated that the Doerfer forces were at least partly responsible for the turnabout on Mr. Mills. On Wednesday, May 1, White House sources notified key senators and Mr. Mills that he would be nominated to the FCC and named chairman. As that word spread, supporters of Mr. Doerfer and others set immediately to work. Mr. Mills, it was authoritatively learned, was told later the same day that his nomination had been stalled. It was exactly a week later that Mr. Mills, through the public relations office of the General Services Administration, issued this release: "Mr. Mills stated that he preferred to remain in his present position as deputy administrator of General Services at the present time and requested that his name not be considered as a member of the Page 58 • May 13, J 957 Broadcasting • Telecasting