Broadcasting Telecasting (Oct-Dec 1957)

STATIONS THEATRE CHAIN BUYS WDAF-AM-TV • National Theatres pays $7.6 million for stations • 'Kansas City Star' meets consent decree stipulation One of the nation's major nationwide movie theatre chains moved into television station ownership last week when Elmer C. Rhoden, president of the 320-theatre National Theatres Inc., and Roy Roberts, president of the Kansas City Star Co., announced the sale of the Star's WDAF-AM-TV Kansas City to the theatre exhibitor company [Closed Circuit, Nov. 25]. The $7.6 million cash purchase was announced officially last Tuesday. It followed by three weeks the filing of an antitrust consent decree by the newspaper company agreeing to divest itself of its broadcast properties. The consent decree was filed after the newspaper was found guilty of monopoly and attempted monopoly in the news and advertising fields in Kansas City. National Theatres is one of the largest exhibition chains in the country. Successor to the Fox Theatres chain, divorced from 20th Century-Fox in 1951 following a Justice Dept. consent decree, it has movie houses in 20 states from New York to California, concentrated mainly in the West and Midwest. Mr. Rhoden became president of $60 million National Theatres in 1954, following the death of Charles P. Skouras, brother of Spyros P. Skouras, president of 20th Century-Fox. Mr. Rhoden has been in the motion picture business for 40 years, and for 25 years before assuming the presidency of National Theatres was head of Fox Midwest Theatres, headquartered in Kansas City. Mr. Rhoden still maintains a residence in Kansas City. National Theatre's headquarters are in Los Angeles. The Kansas City stations will be under the management of Charles L. Glett, former Don Lee and CBS executive, who is president of National Film Investments Inc., a subsidiary of National Theatres which only last month announced its new method of wide-screen film projection, "Cinemiracle." Mr. Glett, a 30-year veteran of the motion picture industry, entered the television field in 1949 when he became vice president in charge of television of the Don Lee Broadcasting System in Hollywood. In 1950, when CBS bought the Los Angeles Don Lee properties, Mr. Glett remained as an administrative consultant and in 1951 was named CBS vice president of both radio and tv network services, Hollywood. In motion pictures, Mr. Glett was associated in the production of Academy Award winner "The Devil and Daniel Webster" and "Duel in the Sun." One of National Theatres' subsidiaries, Fox West Coast Theatres, holds a toll tv franchise in Los Angeles. Paramount's International Telemeter Corp. also holds a Los Angeles pay tv franchise. The only other country-wide motion picture exhibitor chain owning broadcasting properties is American Broadcasting-Paramount Theatres Inc., which operates radio and tv stations in New York, Los Angeles, Page 62 • December 2, 1957 Chicago, San Francisco and Detroit. AB-PT owns more than 500 theatres across the country. Among regional movie chains in tv ownership are the Wometco circuit (Mitchell Wolfson-Sidney Meyer) owning WTVJ (TV) Miami, Fla.; a 20% interest in WFGATV Jacksonville, Fla., and a controlling interest in WMTV (TV) Madison, Wis.; H&E Balaban Corp., which owns 50% interests in WICS (TV) Springfield, 111.; WTVO (TV) Rockford, 111.; WMCN (TV) Grand Rapids, Mich.; WBMG-TV Birmingham, Ala.; WRIT Milwaukee, Wis., and 25% of KFBI Wichita, Kan., and Video Independent Theatres, which has a 12.5% interest in KWTV (TV) Oklahoma City and owns KVIT (TV) Santa Fe, N. M. Motion picture producers in the broadcasting field include Loew's Inc. (MGM), which owns WMGM New York and a MR. RHODEN MR. GLETT 25% interest in KTTV (TV) Los Angeles, KTVR (TV) Denver and KMGM-TV Minneapolis, and Paramount Pictures Inc., which owns KTLA (TV) Los Angeles and holds 26% of DuMont Broadcasting Corp. (WNEW and WABD [TV] New York and WTTG [TV] Washington). Major tv film producer, National Telefilm Assoc. has just bought 75% of KMGMTV Minneapolis, with FCC approval two weeks ago. NTA is also seeking FCC approval of its $3.5 million purchase of WAAT-AM-FM and WATV (TV) NewarkNew York. The agreement signed last week calls for a $500,000 deposit of earnest money by National Theatres, with a $200,000 liquidated damage clause if the theatre company fails to complete its part of the bargain. The contract carries a June 1, 1958 deadline date. It also allocates the amounts to be paid for the WDAF properties — with land and buildings valued at $2.5 million, equipment $1.5 million and the remainder $7.6 million signed to Network Affiliations, contracts, and other intangibles. Both Kansas City stations have been operating since February 1953 without license extensions. The government filed its antitrust suit in January 1953, and the FCC has held the renewal applications in abeyance pending the outcome of the suit. The newspaper firm was found guilty of monopoly and attempted monopoly in February 1955, with the company being fined $5,000 and Emil A. Sees, advertising manager, $2,500. The Supreme Court refused to review the criminal case decision last summer. Ever since the court's findings, various broadcast entities have reportedly negotiated with the newspaper company for the properties, which were being offered it was understood for $12 million. Among these were Harold F. Gross, WJIM-AM-TV Lansing, Mich.; Time Inc., J. H. Whitney & Co. and the Cox interests. WDAF was a pioneer radio station, beginning operations in 1922. It operates on 610 kc with 5 kw. WDAF-TV on ch. 4 began operating in 1949. Both are affiliated with NBC. Last week's announcement stated that the stations would continue with NBC affiliation and that there would be no change in staff, except for H. Dean Fitzer, managing director. Title to the stations will be held in the name of a new operating subsidiary of National Theatres. Fire Destroys KFAR-AM-TV Gear; Tv Outlet Forced Off Operations KFAR-TV Fairbanks, Alaska, was forced off the air Nov. 23 when an explosion and fire gutted the four-story Lathrop Building, which houses the station's studios and transmitter. KFAR, whose studios also are located in the building, was able to remain on the air by transferring operations to its transmitter site. The fire was started by an explosion of undetermined origin in an apartment on the floor below the radio-tv stations (located on the top floor) and raged out of control for seven hours. A KFAR-AM-TV spokesman said the stations' facilities located in the building were virtually destroyed. The tv station's tower atop the building was undamaged, however. No estimate was given on the cost of replacement by KFAR-TV, but the estimated damage to the entire building and its contents was $1 million. The tv station informed the FCC that it would be necessary to remain dark for "30 to 60 days." KTVF (TV) Fairbanks (CBS) has cooperated by offering to carry as many as possible of KFAR-TV 's ABC and NBC programs. KTVF was forced off the air last year, and KFAR-TV then extended a similar courtesy. WCDA (TV) Becomes WTEN (TV) Switches to Ch. 10, Ups Rates WCDA (TV) Albany-Troy-Schenectady, N. Y., was scheduled yesterday (Sunday) to change its call letters to WTEN (TV), simultaneously reverting from uhf ch. 41 to vhf ch. 10. At the same time, the station's management put into effect a rate card change, with Class A one-hour time charges rising from $750 to $1,000. The station, owned by Hudson Valley Broadcasting Co., is a CBS-TV affiliate and sister station of WROW Albany. The principal stockholder is CBS news commentator Lowell Thomas (21.11%). The company also owns stations in New York State, Massachusetts, North Carolina and Louisiana. Harrington, Righter & Parsons represents WTEN (TV). Broadcasting