Broadcasting Telecasting (Oct-Dec 1957)

GOVERNMENT CONGRESS READY FOR RADIO-TV FORAY Priority assured to: Pay tv, Moulder probe, Barrow report, BMI-ASCAP feud Pay tv, the Moulder investigations, the Barrow report and the BMI-ASCAP feud top a heavy slate of broadcast matters facing legislators when the second session of Congress convenes at noon Jan. 7. As in the three most recent sessions, television again will be placed in the public fishbowl. Already announced, although dates have not been set, are hearings on pay tv, the Smathers bill to divorce broadcasters from music publishing and recording, and the FCC. And, as in past years, network executives and the Commission are sure to be making frequent trips to Capitol Hill. This is evidenced by upcoming Moulder hearings and congressional interest in the FCC's Network Study Staff (Barrow) Report released early in October [Lead Story, Oct. 7]. Two committees— the Senate Commerce and House Antitrust — have called on the Commission for a report on what is being done concerning recommendations made by the Barrow study within 90 days after its release. This deadline comes up early next week. While major reports were issued, many pages of testimony were taken and networks and the FCC made repeated trips to the hill, the first session of the current Congress did not pass a single measure in the radio-tv field. And there are many conflicting views as to what concrete actions, if any, Congress will take in 1958 on the many broadcasting bills introduced during the first session of Congress that remain germane this time around. With all congressmen and one-third of the senators facing the 1958 congressional elections, Sen. Thomas Hennings' (D-Mo.) clean elections bill will be due for serious consideration. This bill — which gives broadcasters relief from libel, tightens requirements for equal time and increases the legal amount of money candidates may spend in elections — has been favorably reported to the Senate by the Rules Committee [Government, July 8]. Since 1957 was an off-election year, no major changes in committee assignments or chairmanships are expected. By committees, here is the industry outlook in Congress for 1958: House Legislative Oversight Subcommittee: Headed by Rep. Morgan Moulder (D-Mo.), this group's investigation of the FCC is likely to vie with pay tv hearings for the top headlines of 1958. The subcommittee, an arm of the House Interstate & Foreign Commerce Committee, was formed last spring to determine if the federal regulatory agencies are administering the laws as Congress intended. The committee's staff, headed by Dr. Bernard Schwartz of New York U., has been busy since early summer preparing for the hearings. The committee recently made news of a sort when it asked FCC commissioners and former commissioners for a rundown of all gifts received, including the most inconsequential. Similar inquiries were sent to trade associations and the networks seeking an accounting of favors to the Commission and its staff, including tabs for business trips. The committee already has held one hearing— on the rights of Congress to demand access to agency files [Government, Oct. 21]. No decision has been made as to which of the six agencies — FCC, FTC, Federal Power Commission, Interstate Commerce Commission, Securities & Exchange Commission and Civil Aeronautics Board — will be called to accounting first in open hearings. Rep. Moulder plans an executive meeting of his committee Jan. 8 at which a decision on the course to be followed should be made. He indicated 10 days ago that the first hearing might be one covering gifts as well as "pressures"' brought to bear against commissioners of all six agencies [Government, Dec. 23]. One thing is certain: the industry and the FCC are preparing themselves for Mr. Moulder's probe and are expecting the worst amid cries that the committee actually is conducting a "political witchhunt." House Interstate & Foreign Commerce Committee: Soon after the FCC announced it would accept applications for pay tv [Lead Story, Sept. 23], Chairman Oren RADIO, television and the FCC will play a big role in the work of several congressional committees during 1958, as typified by the behind-the-scenes activity above. At work on the Hill are Moulder committee investigators Stephen Angland (I) and Joseph (Pat) O'Hara, both of whom have been busy the past few months poring through FCC files in preparation for hearings on the agency. Harris (D-Ark.) announced that the Commerce Committee would hold hearings on the question shortly after the first of the year [At Deadline, Sept. 23]. Rep. Harris has been out of the country a good deal of the time since then and a starting date has not been announced. Both sides of the toll tv question are girding themselves for an all-out battle once the hearings start. Congressional mail, predominantly against pay tv, has been very heavy the past few months. Several public sentiment polls also have been taken, with the results showing that the people do not want to be charged to see television in their homes. However, proponents of subscription tv, such as Zenith and Skiatron, claim that this is not a true indication of public sentiment because all poll questions have been loaded against pay tv. Leading the fight against pay tv are the networks, NARTB and many individual congressmen, including Rep. Harris. Pending before the committee is a bill (HR 586) by Rep. Emanuel Celler (DN. Y.) which would prohibit pay tv. Others have announced plans to introduce similar bills when Congress reconvenes. In announcing that it would accept pay tv applications, the FCC gave Congress time to act when March 1 was set as the earliest date for considering the applications. Rep. William Bray (R-Ind.) will be pressing the committee for early action on his bill (HJ Res 381) calling for a three-man commission to investigate the utilization of frequencies allocated to the federal government. Rep. Bray has written other members of Congress seeking support for his bill and an identical one on the Senate side introduced by Sen. Charles Potter (R-Mich.). The House Commerce Committee can be expected to hold hearings during this election year on bills (HR 4627 & 4835) — submitted to every Congress through pressure from dry forces — to prohibit the advertising of alcoholic beverages in interstate commerce. Such bills have never been reported out of committee for floor action. Other major broadcast bills pending before the committee include HR 3514 by Rep. Gardner R. Withrow (R-Wis.) to increase license periods of radio-tv stations from three to five years, which has the support of the FCC; HR 4816 by Rep. Joseph P. O'Hara (R-Minn.) to repeal the protest provision of the Communications Act, and HR 9538 by Rep. Charles A. Vanik (DOhio) to charge fees for services rendered by the FCC. The Budget Bureau has directed the Commission and other agencies to submit such a proposal outlining what the charges should be. The committee faces the new session with a new chief clerk, W. E. Williamson, who replaced Elton J. Layton [Government. Page 54 • December 30, 1957 Broadcasting