Broadcasting Telecasting (Oct-Dec 1957)

ADVERTISERS S AGENCIES continued RADIO-TV FACE CITY TAX THREATS • Rumblings from St. Louis, Norfolk, Va., follow Baltimore move # Media gird for battle as tax idea spreads out to more cities The bells of the New Year promise to ring in with the first advertising taxes ever placed on radio and television as media in at least three cities glumly face these January prospects: • The chances are believed to be practically nil that Baltimore's circuit court will grant an injunction to stay the city's 6% levy on media sales and gross before the Jan. 1, 1958, effective date. • St. Louis alderman Alfred L Harris last Thursday denied he has any intention of dropping his proposal for like taxes in that city; he said he definitely would offer his ordinance to the Jan. 3 meeting of the board of aldermen. » The newest convert to the ad tax movement, Norfolk, Va., plans to launch a methodical plan for such levies by first seeking state legislature action to remove a Virginia statute that forbids taxing of news media. The legislature reconvenes in midJanuary. In Baltimore, where Mayor Thomas D'Alesandro spawned the advertising media tax idea copied by other communities, it's expected that tax money will go into an escrow fund, pending disposition of the suits in the city's circuit court. Ten broadcasters are alongside six other advertising companies and organizations, all in separate suits [At Deadline, Dec. 23, 16, Nov. 25; Adv. & Agencies, Dec. 23, 9, 2]. The suits point out that the taxes are without precedent and beyond the city's taxing powers, discriminate against advertising media, infringe on freedom of the press and put local media in an unfair competitive position with outsiders. Radio-tv suits also note that their service is interstate in nature with rates set accordingly and should not be taxable by a city. Observers expect that the Baltimore circuit court will set an early January date for hearings on the suits. In St. Louis, alderman Harris last week scotched reports that he might abandon his tax proposal by declaring "there wasn't a chance in the world" that he would drop the idea. He explained that his convalescence from a recent auto accident had prevented him from completing necessary paperwork before formally offering his proposal. The board of aldermen is in a holiday recess and next meets Jan. 3, when Mr. Harris promises to submit his plan. Like Baltimore, the St. Louis levies would amount to 6% of media gross. Mr. Harris said the fact that similar taxation is being court-tested in Baltimore is no reason to delay his proposal. He feels the tax is justified and that provisions of Maryland law are not necessarily comparable to Missouri law. A court test, possibly faster in Missouri, would finally determine the merits of such an ordinance, he said. The alderman emphasized that necessity dictates the need for such a measure: St. Louis' budget has been swelling an additional $5-$6 million each year, and each time in the past it has meant increases in cigarette, property and like taxes. The Norfolk city administration's plan for ad taxes in that Tidewater city may be the most lethal yet. Mayor W. Fred Duckworth has started on a precise plan that first would remove some legal roadblocks and better insure the survival of the ad tax in a court test. First target: a Virginia state statute that forbids taxing of news media on the grounds it restricts freedom of the press by subjecting the media to punitive tax measures. Mayor Duckworth conferred earlier this month with eight members of the state legislature from the Norfolk area and, it's understood, the matter of rescinding the statute will be considered early on the agenda when the legislature reconvenes next month. Actually the Norfolk plan is for a mere 0.3% gross tax on media. But, observers note, once the basic principle of such taxation is enacted, there would be no limitation on how high a tax a community could impose on advertising media. It's also felt that state legislative action removing the statute forbidding such taxes would be a signal for any money-strapped city in Virginia to single out advertising media for similar levies. The big question mark for Norfolk is the fact that it is adjacent to such independent cities as Portsmouth and Newport News, which would inherit much of the Norfolk advertising dollar diverted by a city tax. It's felt that Norfolk wouldn't impose such a tax unless the neighboring communities enacted like ordinances. As of last Thurs day, there was no indication of PortsmouthNewport News feeling on the matter of ad taxes. Norfolk media are drawing up their battle lines. A special committee under Daniel Goldman, partner in Cavalier Advertising Agency, has been appointed to organize resistance to the tax measures. In addition, the Advertising Federation of America, which is actively participating in the Baltimore and St. Louis crises, has taken part in the newest tax fight. AFA is urging members to file protests through the federation's Virginia lieutenant governor, Ed Acree of Cargill & Wilson agency, Richmond. Mr. Acree is working with Mr. Goldman and Shields Johnson, general manager of the Roanoke (Va.) Newspapers. Overall strategy is under AFA's third district governor, J. Randolph Taylor of America's Textile Reporter, Greenville, N. C. AFA's James Proud is slated to appear in early January before the Norfolk Advertising Club to discuss the local tax threat. The club already has adopted a resolution in opposition to Mayor Duckworth's proposal and club President Howard Stanley, WAVY Norfolk, has called for a "united" front to defeat the measure. As in St. Louis, the Norfolk tax germ is said to stem from Baltimore Mayor D'Alesandro's success in railroading an ad tax through a pro-administration city council. Norfolk's city council already supports Mayor Duckworth's plan. The St. Louis situation is a little more cheerful for opponents of the tax in that Mayor Ray Tucker and the board of aldermen have not voiced active support of the proposed taxes and have indicated an open mind to the pros and cons of the situation. The State of Virginia seven years ago enacted the statute that squelched the am CO LORC The Next 10 Days of Network Color Shows (all times EST) CBS-TV Dec. 31, Jan. 7 (9:30-10 p.m.) Red Skelton Show, S. C. Johnson & Son through Foote, Cone & Belding and Pet Milk through Gardner Adv. NBC-TV Dec. 30, 31, Jan. 2, 3 (1:30-2:15 p.m.) Jan. 6-8 (1:30-2:30 p.m.) Howard Miller Show, participating sponsors. Dec. 30, Jan. 2, 3, 6-8 (3-4 p.m.) Matinee Theatre, participating sponsors. Dec. 30, Jan. 6 (7:30-8 p.m.) The Price Is Right, RCA Victor through Kenyon & Eckhardt and Speidel through Norman, Craig & Kummel. Dec. 31 (8-9 p.m.) George Gobel-Eddie Fisher Show, RCA-Whirlpool through Kenyon & Eckhardt and Liggett & Myers through McCann-Erickson. Jan. 1 (11:45 a.m.-l:45 p.m.) 69th Tournament of Roses Parade, Minute Maid through Ted Bates and Florists Telegraph Delivery Assn. through Grant Adv. Jan. 1, 8 (9-10 p.m.) Kraft Television Theatre, Kraft Foods Co. through J. Walter Thompson Co. Jan. 2 (7:30-8 p.m.) Tic Tac Dough, RCAVictor through Kenyon & Eckhardt and Warner-Lambert through Lennen & Newell. Jan. 2 (10-10:30 p.m.) Lux Show starring Rosemary Clooney, Lever Bros, through J. Walter Thompson Co. Jan. 4 (8-9 p.m.) Perry Como Show, participating sponsors. Jan. 4 (10:30-11 p.m.) Your Hit Parade, American Tobacco Co. through BBDO and Toni through North. Jan. 5 (7-7:30 p.m.) : My Friend Flicka, sustaining. Jan. 5 (8-9 p.m.) Steve Allen Show, participating sponsors. Jan. 5 (9-10 p.m.) Chevy Show, Chevrolet through Campbell-Ewald. Jan. 7 (8-9 p.m.) Eddie Fisher-George Gobel Show, RCA-Whirlpool through Kenyon & Eckhardt and Liggett & Myers through McCann-Erickson. Page 32 • December 30, 1957 Broadcasting