Broadcasting Telecasting (Oct-Dec 1957)

PEOPLE at deadline Ad Tax Threatened in Va.; Media Organize Opposition New advertising tax threat — involving Virginia — reported Friday by Advertising Federation of America, New York, in bulletin which said Mayor Duckworth of Norfolk has proposed to his city council and eight state legislative representatives that retail merchants tax of 4% be levied against all advertising sold to radio-tv and newspapers in entire state. AFA said mayor has asked legislators to introduce his motion as bill before state legislature in January. Advertising Club of Norfolk has already protested proposal, AFA said, adding, "It is understood that Mayor Duckworth was prompted to offer his suggested bill by the Baltimore advertising tax precedent and by the fact that newspapers in Virginia are exempt from a license tax on the grounds of freedom of the press." AFA wired Mayor Duckworth: "AFA deplores the ill-advised proposal ... as being discriminatory and deleterious to the business progress of every city in Virginia. Not only will this result in another hidden tax, but it will stifle the ability of Virginia business and industry to compete on equal terms with other states. We respectfully urge you as a sound businessman to withdraw your endorsement of this proposal." AFA urged filing of protests around first of January after holidays, since Virginia legislature convenes in mid-January, and asked they be sent to Virginia's AFA lieutenant governor, Edward Acree, Cargill & Wilson, 201 East Franklin St., Richmond, Va., who together with Dan Goldman, Cavalier Adv., Norfolk, and Shields Johnson, general manager of Roanoke (Va.) Newspapers, will direct campaign against tax. AFA Third District Governor J. Randolph Taylor of America's Textile Reporter, Greenville, N. C, will direct overall strategy in campaign. Similar tax measures are being courttested in Baltimore (see page 36), and St. Louis Alderman Alfred Harris indicated earlier last week that ad levies would be proposed to city council there after first of year. No Fm Rule-making — FCC Taking note of numerous inquiries and protests regarding fm band (88 to 108 mc), FCC Friday "emphasized" that it has not instituted rule-making proceeding directed toward reallocation of any portion of fm space. Commission said flood of inquiries was prompted by 890 mc proceedings, in which many responses proposed that part of -fm band be reallocated to other services. In event such proceeding is instituted, FCC is required to issue notice of proposed rule-making, and all interested parties would have opportunity to comment. Anheuser-Busch, Miller Plan Extensive Radio-Tv in 1958 Radio-tv plans for 1958 are brewing at Anheuser-Busch Inc., (Budweiser) St. Louis, and Miller Brewing Co., Milwaukee, Broadcasting learned Friday. A-H will use spot radio on 175-185 stations in 320 markets and spot tv on 100 outlets in 75 markets, both to be staggered schedules over calendar year (26-, 39 and 52-weeks) . Radio commitments range from 30 to high of 150 announcements per week (pattern of three weeks on, one off in some markets). Additionally, half dozen syndicated film properties also purchased in select markets. Radio-tv is to get roughly 40% (time only) or $4.8 million of estimated $12 million budget (higher than in 1957) through DArcy Adv. Co. A-H plans for Busch-Bavarian beer, through Gardner Adv. Co., not set, but "sizable" spot broadcast budget anticipated, along with Cardinals' baseball on radio-tv. Brewery already bought Mickey Spillane's Mike Hammer MCA-TV film series in five states [Film, Dec. 16]. Miller Brewing (High Life) is to launch 26-week radio schedule (spots or programs) about April but tv is in doubt until end of current 26-week All Star Golf on ABC-TV in April. Brewery "highly gratified" with golf series. WPAG-TV to Go Off Air Ch. 20 WPAG-TV Ann Arbor, Mich., has requested authority to go off air for six months effective Dec. 31, FCC announced Friday. While WPAG-TV is only Ann Arbor outlet, station cited competition from six vhf outlets as reason for demise. Broadcasting since April 1953, WPAG-TV reported that it has lost $145,680 in AV2 years of operation. Uhf outlet said it will decide whether to surrender construction permit after Commission makes final disposition of petition for reconsideration of FCC refusal to shift ch. 12 from Flint, Mich., to Ann Arbor. MAKE BELIEVE, THEY SAY NBC-TV will present fictional behind-the-scenes drama of battle for tv ratings on Kraft Television Theatre Jan. 1 (Wed., 9-10 p.m. EST). Titled "The Battle for Wednesday Night," drama pits strongly-entrenched tv personality Bill Brogen (played by Jack Oakie) against new popular singer Danny Smith (Earl Holliman) on rival network. Others in cast to include Rudy Vallee and Virginia Gibson. CHARLES POWERS, head of live commercial production, and THOMAS GREEHOW, program supervisor, McCannErickson, N. Y., named Los Angeles director of tv-radio commercial services dept., serving all agency offices, and Los Angeles director of programming, also servicing all offices, respectively. HAROLD J. SAZ, business manager, radiotv dept., Ted Bates & Co., N. Y., and JAMES A. BENHAM, account supervisor on Whitehall Pharmacal Co., elected vice presidents. HOWARD S. SHEPARD, formerly with special tv projects staff of BBDO, N. Y., to sales promotion and development staff of Harrington, Righter & Parsons, N. Y., station representative. Brown, Lynch Sell KANS; Kluge's KXLW Brings $500,000 Station sales announced Friday were: KANS Wichita, Kan., sold by Kenyon Brown and Frank J. Lynch to J. William O'Connor, Thomas L. Davis and Harry H. Patterson. Price was $221,000, with sale handled by Hamilton, Stubblefield, Twining & Assoc. Mr. Brown was involved in other transfers during week (see page 58). Mr. Davis is interested in WBOW Terre Haute, Ind. Mr. Patterson is Los Angeles businessman who at one time was on sales staff of KLAC and KFVD Los Angeles. KANS operates on 1480 kc with 1 kw night and 5 kw day. KXLW St. Louis, Negro-programmed station, sold by John W. Kluge, head of Kluge station group and 75% station owner, and Mark Evans, 25% owner, to Big Signal Radio Co., whose principals are R. J. Miller, finance company executive, and George Eng, Norfolk builder. Price was $500,000, with sale handled by Blackburn & Co. KXLW is 1 kw daytime station operating on 1380 kc. KREM-AM-FM-TV Sale Reaffirmed FCC Friday reaffirmed its Sept. 25 approval [Government, Sept. 30] of sale of KREM-AM-FM-TV Spokane, Wash., by Louis Wasmer to Dorothy S. (Mrs. A. Scott) Bullitt, 40%, and KING-AM-FMTV Seattle, 60%, for $2 million. Sale had been protested by Tv Spokane Inc. (Burl C. Hagadone and Scripps League newspapers, each 40%), which claimed that it had an agreement with Mr. Wasmer to purchase station. Tv Spokane, at one time applicant for KREM-TV's ch. 2, withdrew its protest Dec. 12, stating that "an agreement with a consideration mutually satisfactory" had been reached. This agreement had been reached under litigation, filed by Mr. Wasmer for declaratory judgment, in Superior Court of state of Washington. Hearing on sale approval earlier was scheduled to begin today (Mon.) at Commission. Comrs. Robert T. Bartley and Frederick Ford dissented "pending receipt of further information with respect to the circumstances surrounding the withdrawal." Page 10 • December 23, 1957 Broadcasting