Broadcasting Telecasting (Oct-Dec 1957)

GOVERNMENT continued ECONOMIST HEADS NETWORK STUDY OFFICE In appointing Warren C. Baum as chief of the newly established Office of Network Study, the FCC has recognized one of the newer professions — economic intelligence. Mr. Baum, a Harvard Ph.D, spent the war years in the cloak-anddagger Office of Strategic Services, was attached to the State Dept.'s office of intelligence research, and at one time was assistant chief of the European regional staff of the Mutual Security Agency. Yet, the 35-year-old professional economist looks more like a college professor. His demeanor is the quiet, bookish attitude of the academic man. The Office of Network Study came into being after Oct. 3 when the network Study Staff submitted its 1,400-page, twovolume report on network practices and recommendations and went out of existence [Lead Story, Oct. 7]. Its function is to serve as a staff office to the Commission and its Network Committee in evaluating the network report. In about 30 days the Office of Network Study will be moving from its present first floor offices in the Post Office Building to three sixth floor offices (Rms. 6412-16-20). The staff comprises three senior professionals — Mr. Baum and attorneys Ashbrook P. Bryant and James F. Tierney. The network study group will run at an annual budget of about $35,000 for the profess i o n a 1 members and about $25,000 more for secretarial and housekeepi n g expenses, plus possible consulting fees for Dean Roscoe L. Barrow, director of the study; Dr. Louis H. Mayo, executive secretary of the study, and others who might be called back for duty. ■ Twelve, "confidential" filing cabinets bulge with a two-year accumulation of financial and business practices data from all segments of the television broadcasting industry. This is the raw material from which the network report was written. The Office of Network Study, among other things, will be responsible for completing the report on programming, which was not included in the network report. Mr. Baum — or Dr. Baum to give him his proper title — was born in New York City in 1922. He was graduated from Columbia College, there, in 1942, receiving an AB degree with honors in economics, statistics and French. At Columbia he made Phi Beta Kappa, national honorary scholastic fraternity. After World War II he returned to academic halls to receive from Harvard U. an MA and an MPA (Master of Public Administration) in 1948 and a PH. D a year later. His doctorate was a study of competition in the American tobacco industry. At Harvard, Mr. Baum was president of the student council of the Graduate School of Public Administration. After service in OSS (as an Army first lieutenant) and the State Dept. and upon receiving his graduate degrees at Harvard, Mr. Baum joined the Economic Cooperation Administration and was with its successor MSA. In 1953 he joined the RAND Corp., a private organization which handles operational research primarily for the Air Force, as an economist. He was appointed to the FCC's Network Study staff in 1955, and made chief of the Office of Network Study (which is detailed as part of the Commission's Broadcast Bureau) two weeks ago. He remains a consultant to the RAND Corp. Mr. Baum lives in Silver Spring, Md., a Washington suburb, with his wife and two daughters (7 and 9). He is a member of the American Economic Assn. and is active in Montgomery County civic affairs. For relaxation, he participates regularly in square dancing and is a year-round tennis player. thoughtful judgments of men of integrity and professional skill who had access to all the facts and no motivation except the public interest." "The structure and practices of the television industry have long needed the benefit of objective appraisal by disinterested observers. Now we have such an appraisal based on truly total information about our industry, furnished by the industry itself," KTTV stated. Meanwhile, intensive reading of the Barrow report continues at the FCC. The Commission's network committee (Chairman John C. Doerfer, Comrs. Rosel H. Hyde and Robert T. Bartley) have been digesting the 7-in. thick document ever since they received it Oct. 3. One of them oxplained that he has skimmed it and is now about one-fourth of the way through a careful, detailed reading. It is this committee of three which will prepare recommendations for submission to the entire Commission. Its proposals could range from outright acceptance of the whole report to a strong affirmation in the unchanged continuance of present regulations. From a practical standpoint, it is pretty sure that the three commissioners will evaluate the report and propose that the Commission take action on some of the major changes recommended by Dean Barrow and his staff. If the Commission as a whole agrees, rule-making proposals will then be issued — calling for comments, reply comments, and possibly, setting dates for oral argument. Following formal proceedings, it will be up to the entire Commission to issue a final decision. Undoubtedly if the revisions are of major consequence to the networks, an appeal to the courts will follow. One of the reasons why some sort of action is expected before the year is up is that the Senate Commerce Committee asked the FCC earlier this year to let it know within 90 days after the Barrow report was issued what the Commission proposed to do. Although there is some thought that this requires the Commission to take some special action by then, it is felt by FCC officials that this command can be met by advising the Senate committee of interim moves — such as the recommendations of the Commission network committee to the Commission en banc. ABN Says It Opposes Vertical, Horizontal Fm Polarization The American Broadcasting Network has told the FCC that while the network encourages the continued growth of automobile radio reception, it "opposes any change in the rules which would permit either vertical or horizontal polarization by fm broadcasting systems." Such an amendment to FCC rules was proposed last spring by James C. McNary, consulting engineer. It could lead to more efficient reception by conventional auto antennas, according to Mr. McNary. ABN said it is against the proposal because present rules permit circular or elliptical polarization so it is possible for fm outlets to broadcast vertically. ABN said it is not desirable to permit radiation of either vertically or horizontally polarized waves. Smith Electronics Inc., Cleveland, was also against the idea for much the same reasons. The Steinman (fm) Stations (WGAL-FM Lancaster, WRAK-FM Williamsport, WEST-FM Easton, all Pennsylvania, and WDEL-FM Wilmington, Del.) favored the proposal or otherwise endorsed the change. So did WPTF-FM Raleigh, N. Y., KTTSFM Springfield, Mo., and WJAC-FM Johnstown. Pa. FTC Sets New Attempt to Define Standards for Hi-Fi Equipment A two-year effort to define high fidelity has been resumed by the government. Both industry and government failed before when they tackled the question of standards for hi-fi equipment. But the Federal Trade Commission's bureau of investigation is going into the question again. H. Paul Butz, attorney handling the matter for the FTC, has started contacting industry representatives. But chances that the matter will take any form in the foreseeable future are poor, according to Mr. Butz. Establishment of trade practice rules or advertising guides require long sessions of conferences and hearings between industry and government. Once established, the rules are regarded as interpretations of the law, and industries in interstate commerce are expected to conform. Page 76 • October 14, 1957 Broadcasting