Broadcasting Telecasting (Oct-Dec 1957)

closed circuit: WDAF-AM-TV NEAR SALE • Sale of WDAF-AM-TV by Kansas City Star to National Film Investments Inc., subsidiary of National Theatres Inc., one of nation's biggest motion picture exhibition companies, reportedly was in negotiation last Friday at price of about $7.5 million. Elmer Roden, president of National Theatres, and Charles L. Glett, president of investment subsidiary and former CBS West Coast vice president and RKO Pictures chief executive, were handling negotiations with Roy Roberts, president of Kansas City Star Co. and associates. • Week ago Star Co. signed consent decree in civil antitrust suit agreeing to divest itself of stations "in reasonable time." Both stations are pioneers. Star Co. originally put stations on market at $12 million last spring [Closed Circuit, April 8]. Deal with National understood to be all cash or very ciose to it. At least one other sale fell through because of lack of cash. • GROUND RULES • Despite numerous attacks in Congress on FCC's "criteria" — or lack of same — in making tv grants, it remains for newest member of Senate to introduce legislation which would spell out just what Commission can and must consider. Sen. William Proxmire (D-Wis.) plans to introduce such a bill when Congress reconvenes in January. Senator thinks Commission sometimes "twists" its present standards to fit individual cases, and he feels there currently is no basis for appeal from Commission's reasons for favoring one applicant over another. • Another factor' which Sen. Proxmire 's bill would seek to remove from Commission consideration is "political pressures." Prime-mover behind legislation, and one of senator's chief supporters in special election to replace late Sen. McCarthy, is Madison Capital Times. Times has been outspoken in its charges that pressure brought by Sen. McCarthy and present administration caused it to lose out in battle for ch. 3 Madison [Government, June 10]. Sen. Proxmire has one man (Ph.D. candidate writing his thesis in field) working full time on proposed legislation. • MONTHLY ROTATION • New concept of network programming, in which weekly one-hour shows would be sponsored by four rotating sponsors — each advertiser responsible for one show every four weeks — has been conceived by Robert Foreman, vice president in charge of tvradio for BBDO. He is cooperating with Oliver Treyz, vice president in charge of ABC-TV, on plan whereby concept would be instituted by ABC next year. Subliminal perception is giving FCC trouble — and not only for obvious reasons (see story page 72). Gag around Commission last week was that after years of worrying about overcommercialization on radio and tv, FCC now has to decide whether undercommercialization is in public interest. • GIFT LIST • All three major networks — ABC, CBS and NBC — have now supplied Moulder investigating committee of House with full details on their social and business associations with members and staff of FCC in compliance with letter of Oct. 3, seeking data on purported "fraternizing" with FCC. It's presumed this data will not become public, if at all, until hearings begin before Moulder Committee on Legislative Oversight after Congress convenes in January. • Quest of Moulder committee investigators, headed by chief of staff and chief counsel Bernard Schwartz, is understood to have yielded sharply conflicting data. Where applicants have been successful in cases before FCC, testimony strongly favors Commission s method of operation. Diametrically opposite is true where disgruntled applicants are involved. View is widespread that committee is conducting inquisition rather than legislative inquiry to determine whether administrative agencies are subservient to Congress, as lawmakers contend they should be, or take their orders from executive branch, meaning White House. 24-HOUR NETWORK • With sales climbing, MBS plans shortly to take step toward becoming first network with round-theclock programming. Network plans to extend broadcast day by two hours to 2 a.m., effective first of year. One reason: MBS newscasts on half-hour are sold out and extension will create two additional sales positions. Another: to provide extra service to West Coast Don Lee Network stations, expected soon to become affiliated directly with MBS [Closed Circuit, Nov. 18; Networks, Nov. 4]. • Mutual will soon claim happy situation of having commercial time virtually sold out. Officials say multiple purchase by Sterling Drug Co. for its Fizrin analgesic, through Compton Adv., New York, leaves only few 20-second newscast adjacencies available through December. Fizrin buy, representing approximately $60,000 net billing, includes participations in 8:05-30 p.m. mystery strip, 18 Gabriel Heatter newscasts, 20 other five-minute newscasts and half of Bill Stern Sunday night sports show for four weeks. In addition, P. Loril lard Co. (Newport cigarettes) has signed for 236 20-second newscast adjacencies between Nov. 24 and Dec. 31, through Lennen & Newell. Newport deal represents about $7,000 net. • SIMPLE PROBLEM • Mexican delegation met in Washington all last week with U. S. delegation, headed by FCC Comr. Rosel H. Hyde, on uhf allocations along Mexican international border. While no uhf's now are being used, Mexicans presumably desire to protect their position in anticipation of tv's growth or possible eventual move of tv to uhf. No conflicts are indicated because of availability of adequate number of uhf channels and because protection would not be required beyond couple hundred miles on each side of border. Conversations are expected to end sometime this week. • Continuing decline in aircraft employment in southern California, following cutbacks in military orders, has begun to force curtailments in advertising and layoffs in agency personnel. Los Angeles office of Foote, Cone & Belding, which handles advertising of both Hughes Aircraft and Lockheed Aircraft, has let 17 \people go, probably largest layoff of any agency for this reason. • UNCLEAR CHANNELS • FCC again had its "clear channel day" last Thursday but did not come to conclusions on what to do about radio allocations problem that has confronted it for dozen years. But heat is on and Commission hopes to have action— probably looking toward rule-making— before Congress convenes next Jan. 7. Staff proposal before FCC does not provide for new high power status for any of clear channel stations in New York or Chicago, presumably on ground that they already cover vast population areas with 50,000 w. • Document before FCC on clear channel case contains suggestion that 12 of remaining 24 fully clear (I -A) channels be qualified for new l-A status, which would mean minimum power of 500,000 w and maximum of 750,000 w (as against present maximum of 50,000 w). Dominant stations on these channels which would be eligible to go up to maximum, if this proposal were accepted, are: KFI Los Angeles, WOAI San Antonio, WFAA-WBAP Dallas-Fort Worth, KSL Salt Lake City, KMOX St. Louis, WHO Des Moines, WJR Detroit, WLW Cincinnati, WHAS Louisville, WSM Nashville, WSB Atlanta and WWL New Orleans. Other 12 l-As would become I-Bs with present 50,000 w maximum. Broadcasting November 25, 1957 • Page 5