Broadcasting Telecasting (Oct-Dec 1957)

GOVERNMENT continued Oct. 14]. Mr. Layton, a Republican, held the post for 36 years. Senate Interstate & Foreign Commerce Committee: Further inquiries into television will play a major role in the 1958 activities of the Commerce Committee, Chairman Warren Magnuson (D-Wash.) announced last week [Government, Dec. 23]. The committee already had made this fact known, however, in several actions last summer. The long-awaited Cox report was released late in June [Lead Story, July 1]. Authored by special counsel Kenneth Cox, the report saw "monopoly" in the networks' must-buy and option time practices; hit concentration of power accruing to networks through their owned stations; urged the Justice Dept. to investigate alleged abuse of power by networks, and urged the FCC to make public all network affiliation contracts. It was issued as a staff report and drew heavy criticism from some of the committee members. With the release of the Cox report, Sen. Magnuson asked the FCC for comments "not later than 90 days" after completion of the Barrow report. The Dept. of Justice also was asked for comments "at an early date." Justice has submitted one reply, stating that it was intensifying its antitrust activity in broadcasting, and was asked for further comments before the first of January. This second Justice report had not been made by last Thursday. The FCC has met two full days for briefings on the Barrow report and plans two more days of meetings, Jan. 6 and 7. The Commission is expected to send an interim report, pending completion of a full study, to Sen. Magnuson sometime this week. Another matter promised early consideration by Sen. Magnuson is a bill (S 2834) by Sen. George A. Smathers (D-Fla.), a committee member, which would force networks to dispose of their interests in Broadcast Music Inc. and in recording companies. At the time the bill was introduced, Sen. Magnuson indicated that hearings would be held early in the second session of the 85th Congress. The chairman said the dispute between BMI and the American Society of Composers, Authors & Publishers (ASCAP) has needed study by the Commerce Committee, which had hesitated to do so because of ( 1 ) the pending ASCAP court suit against BMI and (2) lack of a pending bill. The committee, as well as the House Antitrust Subcommittee, has been flooded with Songwriters Protective Assn. and ASCAP "monopoly" charges against BMI and the networks. Preparing for committee work along this line, Nicholas Zapple, communications staff counsel of the committee, has made several trips to New York visiting ASCAP, BMI and the networks. Among those asking a congressional investigation have been radio-tv and movie personalities Bing Crosby and Frank Sinatra. Sen. Magnuson also stated last week that pay tv will receive "serious attention" by the Commerce Committee during 1958. Committee member Strom Thurmond (DS. C.) has a pending bill (S 2268) which would prohibit pay tv and has the support Page 56 • December 30, 1957 of several other members. Sen. William Langer (R-N. D.), after taking a poll of residents of Bartlesville, Okla., announced that he also would introduce an anti-pay tv measure in January. Sen. Langer's bill would include wired tv, such as the Bartlesville project, in addition to on-the-air telecasts. In light of the announced pay tv hearings on the House side, it is not known just what action the Senate committee will take. Sen. Magnuson, however, personally believes pay tv should be given a trial to determine whether it will be approved by the public. A report on the proposed reallocation of the television frequencies, prepared by an ad hoc committee headed by Dr. Edward L. Bowles of Massachusetts Institute of Technology, is expected to be released early next year. Some members of the Commerce Committee have expressed dissatisfaction with preliminary drafts of the report, which has been circulated for several months. The committee also can be expected to hold hearings this year on the bill (S 582) to prohibit advertising of alcoholic beverages. Other major broadcast bills pending before the committee: S J Res 106 by Sen. Charles Potter (R-Mich.) and identical to Rep. Bray's spectrum study bill; S 376 by Sen. John Bricker (R-Ohio), ranking minority member of the committee, to place the networks under direct regulation of the FCC; S 1369 by Sen. Magnuson and S 1437 by Sen. Albert Gore (D-Tenn.) to establish stricter requirements for a political candidate to be eligible for equal time; S 1577 by Sen. Potter to repeal protest provision of Communications Act; S 1759 by Sen. Magnuson to increase license periods of broadcast stations to five years, and S 2119 by Sen. Magnuson to appropriate up to $1 million to each state for educational tv. Antitrust Subcommittee of the House Judiciary Committee: Rep. Celler's subcommittee is awaiting action from the Justice Dept. and the FCC on recommendations made in the Barrow report and the now famous Celler report [Lead Story, June 10]. The latter report followed generally the same lines taken by the Senate's Cox report, but it also included lengthy testimony regarding the ASCAP-BMI squabble. If Justice and FCC fail to satisfy the committee that they are proceeding to carry out recommendations of the report, there is a strong possibility Rep. Celler may reopen hearings. "I'm going to tolerate no nonsense, no procrastination — that's a warning to the FCC [in carrying out recommendations of the report]." Rep. Celler stated last summer. He also is particularly interested in Justice activities in antitrust cases, network must-buy and option time practices, and recommendations made in the Barrow report. The committee held lengthy hearings last spring and summer on professional sports, with television playing a leading role, and there is a strong possibility that these hearings, too, may be reopened next month. Officials of the minor leagues have called on Rep. Celler and Rep. Kenneth Keating (R-N. Y.), ranking minority member of the committee, to stop the major leagues' plans to telecast Sunday games into minor league territory next summer. Earlier this month, the two congressmen announced plans to investigate in January [Government, Dec. 16] and there is a strong possibility that public hearings may be held. Reps. Celler and Keating also cautioned CBS-TV not to sign contracts for the Sunday telecasts that would hinder this investigation. Rep. Celler also is the author of a bill (HR 8277) which would prohibit all frequency discounts to advertisers by placing "independent contractors (including the networks and radio-tv stations)" under provisions of the Clayton Act. At the time of its introduction [Lead Story, June 24], Rep. Celler promised action on the bill, although to date no hearings have been scheduled. The House Commerce Committee's hearings on pay-tv will draw more than passing interest of Rep. Celler, who is expected to participate actively in support of his antitoll bill. He has labeled pay tv "gas meter television." Senate Judiciary Committee: Pending before this group, headed by Sen. James O. Eastland (D-Miss.), are two bills introduced by Sen. Henry Jackson (D-Wash.) with an important bearing on the FCC. One (S 2461), would make unauthorized disclosure of federal agencies' decisions a crime. The second (S 2462) would make attempts to influence " adjudication" by independent agencies a crime. Rep. Moulder has indicated that some legislation may be needed along this line [Government, Dec. 23]. Sen. Jackson introduced his bills following hearings on the subject by the Investigations Subcommittee he heads of the Senate Government Operations Committee. Daytime Radio Subcommittee of the Senate Small Business Committee: Headed by Sen. Wayne Morse (D-Ore.), this committee issued in September a report [Government, Sept. 16] severely criticizing the FCC for its failure to act on a petition by Daytime Broadcasters Assn. for longer and more uniform hours. The report was compiled after two days of hearings last spring and ordered the Commission to inform the committee by Jan. 7 "what, if any, progress has been made." Just 10 days ago, the Commission issued a notice of proposed rulemaking on the DBA petition [Government, Dec. 23]. This is expected to serve as an answer to the committee until such time as the comments can be thoroughly studied. House Rules Committee: Severa.1 bills which would remove House Speaker Sam Rayburn's (D-Tex.) ban against radio and still, movie and television camera coverage of House proceedings are pending before this committee. Chairman Howard W. Smith (D-Va.) has given no indication of possible hearings on the bills. Rep. Francis E. Walter (D-Pa.), chairman Broadcasting