Broadcasting Telecasting (Jan-Mar 1957)

GOVERNMENT introduced a measure last year which would have licensed the networks, there is good reason to believe he would not go along with the present desires of the writers. In a move similar to that of singer Frank Sinatra's to the Celler subcommittee last year, Bing Crosby wired Sen. Magnuson last week: "I feel very strongly that the control of the music business should not be in the possession of the very people who dominate the air by our government's leave. As a member of ASCAP, it is my fervent hope that you and your committee will explore all of the angles of the situation and you will conclude that the public is entitled to hear all of the music written instead of just the music owned and exploited by the broadcasters themselves." STORZ SCORES FCC INACTION ON WSMB • Will Revise Own Promotion • Giveaways May Be Revived THE FCC was on notice last week that the Todd Storz stations were no longer going to lean over backward to restrain legitimate promotional efforts, including giveaways. This was the meat of a March 1 letter sent to the Commission by Todd Storz, president of Mid-Continent Broadcasting Co. Mr. Storz told the FCC that since the Commission paid no attention to his complaint against the program practices of WSMB New Orleans, he was revising his stations' promotional policies. The Storz stations in mid1956 voluntarily ceased using promotional giveaways and other such audience attention-getters when the FCC granted Mr. Storz permission to acquire WQAM Miami from the Miami Herald for $850,000. By a single vote the FCC approved the transfer, notwithstanding the minority's desire to set the transfer application for hearing because of the moneygiveaway programs on Storz stations. At that time Mr. Storz wrote the Commission that since the propriety of giveaways and other promotional gimmicks was questioned he was ceasing such activities on all stations. Early this year, when Radio Hawaii Inc. bought 50% ownership of WSMB New Orleans from Paramount Gulf Theatres Inc. for $90,000, Mr. Storz objected. He maintained that WSMB, under the direction of a Radio Hawaii Inc. program executive, had begun using money giveaways and other promotional contests. He also charged that the presence of the Radio Hawaii executive implied a change in WSMB management before the FCC approved the transfer. The Commission approved the WSMB transfer late last month and told Mr. Storz it had considered the allegations but had found Radio Hawaii eligible [B»T, March 4]. Radio Hawaii is part of the Founders Corp. holdings, licensee of KPOA Honolulu. Founders also owns WTAC Flint, Mich., and 50% of KTVR (TV) Denver, Colo. Storz stations, in addition to the Miami outlet are KOWH Omaha, Neb.; WDGY Minneapolis, Minn.; WHB Kansas City, Mo.; and WTIX New Orleans, La. Page 74 • March 11, 1957 House Group to Study FCC, Other Agencies A SPECIAL subcommittee was named last week by Chairman Oren Harris (D-Ark.) of the House Interstate & Foreign Commerce Committee "to review, study and examine the execution of the laws by the administrative and independent agencies of the government within the jurisdiction of the" [parent] committee." Chairman of the nine-man unit — the "Special Subcommittee on Legislative Oversight"— is Rep. Morgan M. Moulder CDMo.). Rep. Harris announced last month, in a discussion on the House floor, that he would appoint such a group [B*T, Feb. 11]. No schedule of hearings for the unit has been announced. Other members are Democrats John Bell Williams (Miss.), John J. Flynt Jr. (Ga.), Leo W. O'Brien (N. Y.) and John E. Moss (Calif.), and Republicans Joseph P. O'Hara (Minn.), Robert Hale (Me.), John K. Heselton (Mass.) and John B. Bennett (Mich.). Rep. Harris and Rep. Charles A. Wolverton (R-N. J.), ranking Republican on the parent committee, were announced as exofficio members with voting privileges. A number of Democratic senators and representatives — among them House Speaker Sam Rayburn (D-Tex.) — criticized the FCC and other federal regulatory agencies during the 84th Congress, charging among other things that the Eisenhower Administration has had undue influence on the decisions of independent federal agencies originally created as arms of Congress. During the floor discussion last month. Speaker Rayburn said: "I trust the gentleman [Rep. Harris] will set up a subcommittee and I think under the broad authority of this resolution he has that authority, to go into the administration of each and every one of these laws [creating the FCC and other agencies] to see whether or not the law as we intended it is being carried out or whether a great many of these laws are being repealed or revamped by those who administer them." Onondaga V Proposed For Share-Time Operation AN educational station and a commercial applicant were recommended for share-time operation on ch. 10 in Onondaga, Mich., by an FCC hearing examiner last week. Annie Neal Huntting favored the applications of the State Board of Agriculture (governing body for Michigan State University) and Tv Corp. of Michigan Inc. (Edward E. Wilson, 60%, and WILS Lansing, 40%, the latter principally owned by John C. Pomeroy and family) . Denied by the hearing examiner were the applications of Triad Tv Corp., Booth Radio & Tv Stations Inc. (WIBM Jackson and other stations) and Jackson Broadcasting & Tv Corp. (WKHM Jackson), all seeking the same facilities for Parma, Mich. The examiner heard over 90 days of comparative hearing among the five applicants for the channel and her initial decision filled 225 pages. The favored applicants reached an agree ment Aug. 30, 1954, to share the channel in the event their applications were successful. Under the agreement, the educators will program from 9:30 a.m. -2 p.m. and 6-7:30 p.m. Mondays-through-Fridays; 10 a.m.2 p.m. Saturdays, and 12 noon-4 p.m. Sundays, with the commercial operators to use the channel at all other times. Michigan State agreed to construct a transmitter plant at its own cost to be used by both stations. Tv Corp. will pay annual rental base on a proportion of the actual air time used by both stations, plus 20% of its net income before federal income taxes. Onondaga is approximately midway between Jackson and Lansing in south-central Michigan. Michigan State U. is licensee of WKARAM-FM East Lansing and permittee of ch. 60 WKAR-TV, which began operations Jan. 13, 1954. The examiner ruled that the construction permit of WKAR-TV must be surrendered by State Board of Agriculture if it receives the ch. 10 grant. State Board and/or Tv Corp. were favored over the other three applicants on integration of ownership and management, broadcast experience, local residence, past operation of broadcast stations and awareness of community needs and most likely to effectuate their programming proposals. Court Denies Protest Against Miami Ch. 10 The U. S. Court of Appeals for D. C. last week refused to stay the Feb. 8 grant of Miami ch. 10 to Public Service Tv Inc., subsidiary of National Airlines Inc. The threejudge Washington court denied requests for a stay filed by WKAT Miami, Fla., and Eastern Airlines Inc. The Miami grant was made by the FCC over violent protests by WKAT (which had been recommended for the vhf grant by the hearing examiner) and Eastern Airlines. Basic attack was on the public policy of having an airline own and operate a television station. The controversy touched off congressional interest with several communications from Sen. A. S. Mike Monroney (D-Okla.) and even flared into the newspaper columns via Drew Pearson. The appeals court members were Chief Judge Henry W. Edgerton, and Circuit Judges Charles Fahy and George Thomas Washington. Arguing for WKAT was Paul A. Porter, former FCC chairman; for Eastern, Harold L. Russell, Atlanta, Ga.; for the FCC, Daniel R. Ohlbaum, and for National, Norman E. Jorgensen. Argument was held Thursday morning and the court's denial was issued that afternoon. WMEX Gets License Renewal AFTER three years of trying, WMEX Boston, Mass., last week received a renewal of its license from the FCC, which upheld a hearing examiners initial decision recommending the licensing. WMEX first applied for renewal Jan. 18, 1954, which protested at a hearing because of the station's broadcast of horse racing information. In granting the license renewal, the Commission found that WMEX has not broadcast the objectional programming for sometime. Broadcasting • Telecasting