Broadcasting Telecasting (Oct-Dec 1957)

GOVERNMENT continued of Associated Artists Productions [Films, Nov. 18]. The independent KMGM-TV began operating in January 1955. It was bought by its present owners in 1956 for $1.14 million plus assumption of $315,500 in obligations from Morris T. Baker and family. Mr. Baker had acquired control of the ch. 9 Minneapolis outlet in 1954 for $300,000. Present owners of KMGM-TV include Thomas P. Johnson (22.2%), Seymour Weintraub (Flamingo Films) (15.88%) and others. Mr. Johnson and some other stockholders have interests in WENS (TV) Pittsburgh. Other stockholders have interests in WTVW (TV) Poland Springs, WPOR Portland, and WABI-AM-TV Bangor, all Maine. Loew's Inc., which acquired its 25% interest in KMGM-TV last year in exchange for making its MGM library of feature films available for telecasting, also owns 25% of KTTV (TV) Los Angeles and KTVR (TV) Denver, Colo. It is the long-time owner of WMGM New York. When the KMGM-TV transaction is consummated, it will be 75% owned by a tv film syndicator and 25% by a Hollywood feature film producer (MGM). Mr. Bartley's extensive dissent called for a hearing on the application. He alluded to NTA's statements that it intends to apply for the maximum permissible tv outlets and raised questions regarding concentration of control and methods of operation in light of NTA's film distribution activities. "I am of the opinion," Mr. Bartley said, "that since this constitutes the first application by this organization for a license under the Communications Act, the Commission should have before it complete information as to the proposed method of operation by NTA of the tv stations it seeks. Particular emphasis should be placed on the competitive practices it proposes to follow in its 'negotiations' for tv film with its own stations, as compared to its dealings with other stations in the markets where it proposes to operate. . . ." The FCC commissioner also called attention to the government's antitrust suit against NTA and suggested a hearing is necessary to "consider and evaluate" the syndicator's conduct. Mr. Bartley concluded his dissent with the following: "I believe that because of the 'verticallyintegrated' nature of the proposed transferee's organization, the potential competitive impact on other television stations in the markets where NTA proposes to operate its own stations, and the matters discussed above, the Commission should obtain full and complete information on the record on these aspects of the case before attempting to determine whether this transfer will serve public interest, convenience and necessity." KSTP-TV Minneapolis first had raised the antitrust issue when it filed an objection to the sale with the FCC. FCC Blocks WPTZ (TV) Move The FCC last week advised WPTZ (TV) Plattsburgh, N. Y. (ch. 5), that a hearing is indicated before the station can go ahead with the proposed modifications of its Page 82 • November 25, 1957 equipment and relocation of its main studio. The Commission said the changes would be inconsistent with the agreement with Canada calling for equal signal strength at the border. FCC Questions Sale of KCOP Following NAFBRAT Complaint The $4 million purchase of KCOP (TV) Los Angeles by Bing Crosby, Kenyon Brown, George Coleman and Joseph Thomas hit a snag last week when the FCC asked for more information regarding the purchaser's programming plans. The Commission's action follows by two months a request by the National Assn. for Better Radio and Tv that license revocation proceedings be instituted against KCOP's owner, the Copley Press Inc. [Government, Sept. 16]. NAFBRAT charged KCOP failed to meet the minimum program code requirements established by the NARTB. NAFBRAT also asked for a hearing on the sale application. Principal charges made against KCOP by NAFBRAT were "imbalance" in the broadcast of opinion on controversial issues, programming of the Rev. Oral Roberts, an undesirable sponsor and an overload of commercials. KCOP denounced the charges as "an opinionated attack by a small California organization dedicated to censorship of radio and tv." Revocation proceedings against KCOP are not warranted at this time, the Commission stated, but in view of the details set forth in the NAFBRAT complaint, more information is needed on the Crosby-Brown programming plans. The FCC pointed out that the buyers stated in the sale application that they planned "no substantial changes" in KCOP's programming format and that a subsequent amendment set forth programming plans in "very general terms. The Commission believes that the situation is one which calls for specificity on the part of the assignee either by reply to this letter or in a hearing." The buyers were given until Dec. 20 to file a comment or an amendment to their original application. FTC Charges Tv Setmakers Exaggerated Screen Size In separate actions last week the Federal Trade Commission charged two television setmakers with exaggerating the size of picture tubes and ordered another entrepreneur to stop alleging that plastic receiver attachments would induce color tv. Advertising copy run by the Admiral Corp., Chicago, according to the FTC, describes sets as "21 -inch," "21" or "24," followed by an asterisk referring to a footnote. The footnote, far removed from figures, says the FTC, states the viewable area of the tube in square inches and says that the other measure is diagonal. This deceives the public and diverts trade unfairly from competitors in violation of the FTC Act, the government contends. Admiral has 30 days to answer the complaint, and hearing is set for Jan. 16 in Chicago. Another Chicago firm, Muntz Tv Inc., last week was charged with exaggerating pic