Broadcasting Telecasting (Oct-Dec 1957)

closed circuit: mately $50 million for coaxial against $12 million for Parax). COWLES SELLING TWO • Sale of ch. 9 KVTV (TV) Sioux City, Iowa, and its companion WNAX Yankton, S. D., by Cowles Broadcasting Co. to Peoples Broadcasting Co., subsidiary of Nationwide Insurance Co., for approximately $3 million is in final negotiating stage. Cowles also owns KRNT and controls ch. 8 KRNT-TV Des Moines and owns WHTNAM-TV Huntington-Charleston, W. Va. Peoples owns WRFD Worthington, Ohio; WTTM Trenton, N. J., WMMN Fairmont, W. Va., and WGAR-AM-TV Cleveland, Ohio. BoT Plans underway to allow more spot announcements on Canadian Broadcasting Corp. tv stations and for participation sponsorship on national basis of live and film programs where CBC regulations now only permit local participation. Decision to allow additional commercials at CBC policy-making meetings at Ottawa, Ont., due possibly this week. BeT TAX FIGHT BREWING • Operators of major stations involved in multi-milliondollar sales aren't going to lose depreciation case by default. Informal meeting at NARTB headquarters last week took up Revenue Bureau's denial of depreciation allowances in network affiliation contracts [B»T, Aug. 26] and pooled ideas on station-sale problem. Among interests involved in tax ruling are Westinghouse, Corinthian, Time Inc. and Transcontinent, all of which have negotiated major station transfers. Framing of NARTB policy on this and other tax matters involves major association problem. BeT FCC had morning go-round last Thursday on question of programming jurisdiction, spent most of time assaying General Counsel Warren Baker's memorandum on legislative history of subject. Further consideration scheduled for next available time, probably this week. Subject is basic to Commission's discussion of license renewal form revisions on program information, sparked by broadcasters earlier this year. BeT SKIATRON'S ALTERNATIVE MOVE • Because Pacific T&T, subsidiary of AT&T, has turned thumbs-down on use of Parax open-wire for Skiatron closedcircuit tv on West Coast (story, page 66), Matty Fox, president of Skiatron Tv Inc., has asked company to quote on coaxial cable for wiring of Los Angeles, San Francisco and two other unnamed western markets. Coaxial costs reportedly run several times that for open-wire (estimate for Los Angeles proper alone was approxi BeT Pacific T&T rejection of open-wire reportedly was on basis that they would not make such installations since it could constitute monopoly. While first installation on its poles might work for relatively short distances, installation of second or third service inevitably would cause interference beyond allowable tolerances, in effect meaning that only one service could be installed. Since Bell companies are common carriers, they would have to provide service to all qualified comers. BeT CHEERY NOTE AT MBS • Optimistic re port on outlook of MBS under new ownership will be given special meeting of its board of directors this, week by Paul Roberts, president, who took over two months ago. Since Aug. 8 new gross sales have amounted to $2.5 million, including business of advertisers never before on MBS. These include Jello, Equitable Life, Benrus Watch and Chrysler. "Slight profit" or at least break-even point has been reached by MBS, it's understood. BeT Seminar on engineering being conducted Monday evenings by FCC's Arnold Skrivseth, assistant chief of technical research division of office of chief engineer, for staff lawyers and other non-engineering executives. FCC's new Comr. Fred W. Ford is taking 10-week, two-hour course. Seminar began Sept. 23 with 80 in attendance but 60-odd showed for second session. BeT BARROW DEFTNESS • Explosive Network Study Group Report, comprehensively covered this issue, was drafted "with the press in mind." Authority for this statement is Dean Roscoe L. Barrow, chief of study group, whose security was so good that not even members of Commission had advance knowledge of 1200-page document. Conclusions of report were neatly contained in summary. Because of budget limitations, FCC had about 700 copies of voluminous Network Report processed — just about maximum run from mimeograph stencil. BeT Although Barrow report was "team" job, it's no secret actual writing of chapters was entrusted to one or two staff members. For example, general knowledge has it that Dean Barrow wrote chapters 1 and 15, introduction and summary of recommendations, and chapter 12, multiple ownership. Not so well known is fact that Dr. Louis H. Mayo wrote chapter 3 on public interest. STILL STYMIED • For fourth successive week, FCC failed to break impasse on authorization for WLWI (TV) Indianapolis to begin operation with equipment other than that specified in its original application which previously had been granted. Comr. Fred W. Ford, whose vote is required to break 3-3 tie, reportedly did indicate to Commission last Wednesday that he would be prepared to vote this week, after having established that he is not disqualified by virtue of former connection with case while he served as chief of FCC's hearing section (1951-1953). BeT Edward Lamb Enterprises (WICU [TV], WIKK Erie, Pa.; WMAC-TV Massillon, Ohio; WHOO-AM-FM Orlando, Fla.) has retained Robert F. Jones, former FCC commissioner and former member of Congress from Ohio, as Washington communications counsel. General counsel of Lamb Enterprises is J. Howard McGrath, former U. S. attorney-general during Truman ad M ministration. BeT ENCORE FOR ANA • Agency panel that set forth mock "campaigns" on how to spend theoretical $750,000 advertising budget for "potable" product (Tetley tea) at last year's media buying workshop session of American Assn. of Advertising Agencies' eastern annual conference is to be repeated on Nov. 20 at this year's session in New York. Reason: Panel made big impression on audience and ad row evinced interest for many months. That was meeting in which Arthur A. Porter. J. Walter Thompson Co.; E. L. Deckinger, Grey Adv., and Lee M. Rich, Benton & Bowles, agreed on predominant use of broadcast media [B«T, Dec. 3, 1956]. This year, budget will be greater and product will be one that is in "national distribution." Panel will act as "plans board" presenting summary viewpoint via single spokesman. Agency participants are not yet firm. BeT Vastly increased demands for rights to Orange Bowl football game have CBSTV scrimmaging in another direction in trying to set its lineup for next New Year's Day. Orange Bowl's asking price is reported to be at least twice last year's estimated $100,000, so CBS-TV, while going on with negotiations for continuing that series is also dickering for Cotton Bowl, where demands are much more modest. NBC-TV, which carried Rose and Cotton Bowls last January, is set for Rose and Sugar Bowls this New Year's. ABC-TV had Sugar Bowl last time but now, along with CBS-TV, is interested in Cotton. Broadcasting • Telecasting October 7, 1957 • Page 5