Broadcasting Telecasting (Oct-Dec 1957)

GOVERNMENT Wasn't Trafficking, Rounsaville Tells FCC A profit of about $200,000, before taxes, realized in the sale of nine stations since 1941, does not constitute "trafficking" and "does not even approach the capital gains involved in many single station sales." Such was part of a sworn statement filed with the FCC last week in behalf of Robert W. Rounsaville, multiple station owner, in reply to a Commission complaint which said his latest station sale and purchase negotiations raise serious question of "trafficking" [Government, Oct. 28]. Mr. Rounsaville added that he has never sold a radio property for capital gain, but rather to gain a foothold in one of the big markets while still complying with the multiple ownership rules, to dispose of one in financial distress or for other legitimate business reasons. The FCC has displayed concern over what it describes as Mr. Rounsaville's sale of interests in eight radio stations and acauisition of others since 1944. But Mr. Rounsaville replied that "the seven stations which (he) now owns, have been owned by him for an aggregate period of approximately 28 years." As noted, the issue here arose when the multiple broadcaster last August filed applications with the Commission to sell WOBS Jacksonville, Fla., for $500,000 (he said he is likely to have capital gains of only $240,000 after a 13-year period of payments), and to buy WMRY New Orleans for $250,000. Four commissioners voted to send him a McFarland letter indicating that neither of the two applications can be granted without a hearing. Observers believe these latest station sale and purchase transactions have been singled out for a possible tpst case. It is the first time in post-war years that the FCC has raised the out-and-out question of trafficking on the part of a multiple owner. Part of Mr. Rounsaville's replv included lengthy documentation of what h° said has clearly been a public service to most of the communities involved. He noted that most of his programming has been designed to suit the tastes and interests of Negro audiences in the absence of stations which do not devote their entire format to Negroes. Fm's Place in Radio Spectrum Spelled Out by Fm Broadcasters Fm's place in the radio spectrum was spelled out last week by Fm Broadcasters, a group of 150 fm stations, in comments filed in the FCC's current study of the 25890 mc area of the radio spectrum. The organization said there were 539 fm stations on the air as of Oct. 31, representing an investment of at least $25 million. It also declared there were 12 million receivers in the hands of the public, representing a minimum investment of $500 million. It pointed to recent fm activity in New York and Los Angeles, where applicants for fm channels were required to undergo comparative hearings, and to the 85 applica Broadcasting Four stations priced NEW ENGLAND Massachusetts single station market. 250 w. full time in manufacturing city of 17,000. Last 12 months gross —$93,165. Owner will take $109,000 with 29 pet. down. Real opportunity for aggressive resident management. MIDDLE ATLANTIC 1000 w. daytime monopoly in thriving city of 10,000. Will gross close to $70,000 this year with good earnings record. Price $75,000 with $25,000 down. MID-WEST 1000 w. daytime in solid city of 35,000. Grossing at rate of $115,000. Price of $150,000 includes transmitter and seven acre site, plus $9,000 in net quick. Excellent equipment. $45,000 down. ALLEN KANDER AND COMPANY Negotiators for the Purchase and Sale of Radio and Television Stations WASHINGTON NEW YORK CHICAGO DENVER 1625 Eye Street N.W. NAtional 8-1990 60 East 42nd Street MUrray Hill 7-4242 35 East Wacker Drive RAndolph 6-6760 1700 Broadway AComa 2-3623 November 18, 1957 Page 99