Broadcasting Telecasting (Apr-Jun 1958)

HARRIS COMMITTEE continued was not a vote on the merits of the case hut merely a parliamentary procedure. He voted for an opinion favoring L. B. Wilson so the FCC would have two decisions befor: it ". . . in order that 1 might have an opportunity to discuss the entire case with the commissioners, a matter which was denied me because I was not present when the original instructions were given." he explained. In such an event, he felt, he then would have been ahle to vote on a final decision after having participated in a discussion of merits of the two proposed decisions. When a final vote was taken on the National grant in February, Comr. Craven said he did not participate because he was not present for oral argument or initial instructions and "1 would have possibly committed a reversible legal error.*' All in all. he said, the question of influence in the Miami ch. It) case had been "highly overplayed." WITNESS: Comr. Ford Comr. Frederick W. Ford, whose FCC appointment was confirmed last August, told the subcommittee that the only expenses he has drawn since joining the Commission were $1.50 for taxi fare. In fact, the newest commissioner said, many of his closest broadcasting friends "have kept strictly away from me" since his appointment to the Commission. When asked if he had a color tv set on loan in his home, Comr. Ford replied: "As a matter of fact, I have seen color tv only once and that was four years ago." The only long distance call he has made since joining the Commission concerned the hiring of a legal assistant, he stated. WITNESS: Ex-Comr. Webster Mr. Webster, a member of the Commission from 1947-56 (he was replaced by Comr. Craven) was asked about two trips for which the government paid per diem and subcommittee records show NAB paid the hotel bill. The witness said he was "mystified" that NAB paid the bills because he was under the impression he had paid them personally. The propriety of allowing industry representatives to pay hotel bills was discussed at one time while he was on the FCC, Mr. Webster said, and the general opinion was this is an acceptable practice. However, he said, he made very few trips while a commissioner and was not often invited to speak. He still has an RCA color receiver loaned to him, he said, but NBC is "privileged to get the set at anytime." He denied Frank (Scoop) Russell, NBC Washington vice president, or anybody else told him to keep the set. "They were of immense value to us [commissioners]," he told the subcommittee. "No one at any time, in industry or otherwise," talked or attempted to talk to him about the Miami ch. 10 case, Mr. Webster testified. He said "terrific goings-on" among Miami principals in the case were evident but that he had no personal knowledge of just what this amounted to. In fact, he said, one of the principals was "rude" in avoid Page 32 • April 7, 1958 ing talking to him when the two met in a Miami restaurant while the case was pending. WITNESS: Comr. Doerfer After spending three days answering personal misconduct charges early last February [Government, Feb. 10], Chairman Doerfer returned to the stand Monday to further explain industry contacts and trips he has taken since becoming a member of the FCC. The chairman estimated that over a five-year period he has taken approximately 40 trips on official FCC business. Rep. Harris thought this was a conservative estimate and criticized all commissioners for spending too much time on the road and not enough tending to the FCC workload. He stated: "... I am just wondering if the members of the Commission had not felt compelled to attend too many invitations by the industry in these conventions and things that have too much the appearance of a vacation instead of actual official business. . . . "Is it necessary for several members of the Commission to go on these things at the same time, together with several members of the staff? ... It seems to me these various things . . . should be very, very carefully considered and this business of going off and the industry running up a big expense and charging it to public officials when they don't even participate in it at all, seems to me is intolerable." Comr. Doerfer agreed that in many instances his name was used, when actually he was not even present, to justify an expense account. The commissioner also hit out at "influence peddlers" and "name-droppers" who do not have any influence. On the five airline tickets furnished FCC by NBC for the Sarnoff dinner, Comr. Doerfer said it is possible he and Mrs. Doerfer used two of them since the government was not charged. However, he could not account for the remaining three and all other commissioners denied using NBC transportation to attend the dinner. In filing his income tax returns since becoming a commissioner in 1953, Comr. Doerfer said he has listed seven honorariums totaling $2,100. Even with the honorariums, he has consistently lost money on industry trips, he testified. WITNESS: Ex-Comr. McConnaughey Former FCC Chairman McConnaughey told the subcommittee about ex-parte meetings he had with principals in two applications for the hotly-contested ch. 5 Boston and one of the applicants for ch. 4 Pittsburgh, a case under Justice Dept. scrutiny. Mr. McConnaughey said he lunched with Robert Choate, publisher of the Boston Herald-Traveler (WHDH-TV), which won the ch. 5 grant, and had a second meeting with Forrester T. Clark, principal in one of the losing applicants. Mr. McConnaughey claimed he kept the conversations away from the pending case and that Mr. Choate "just wanted to meet me." He said later two men from the Boston Globe, which strongly protested a grant to the Herald-Traveler, came to his office and • read the riot act" over the Herald-Traveler application. Mr. McConnaughey also told about a luncheon with Earl F. Reed, applicant for ch. 4 Pittsburgh, and that he changed the subject from the pending case "as soon as I could." Commerce Secretary Sinclair Weeks did not contact him about Boston ch. 5. Mr. McConnaughey said. "I honestly do not know . . ." he said, when asked if Mr. Weeks had any interest in the case. He denied the White House had ever interferred in any case and said most executive contacts had to do with security matters. Like other witnesses, Mr. McConnaughey was confronted with a long list of trips and 10 pages of telephone calls. He said he kept no record of incoming telephone calls or visitors because both came "in a steady stream." He was questioned at length about a five-week trip to Europe in the summer of 1956. This cost him, he said, over $800 out-of-pocket for his expenses, plus those of Mrs. McConnaughey who accompanied him. The former FCC chairman replied "none whatsoever" when asked if he had received any gifts or loans from the industry. "For many years, I never made less than twice as much as I made . . ." while serving on the FCC, he said. He hit former subcommittee counsel Bernard Schwartz for "smear and character assassination" tactics. He said members of the regulatory agencies are "very high-type, honorable folks." Jerry Carter, Florida Democratic National committeeman, was the only person who ever approached him regarding the Miami ch. 10 case, Mr. McConnaughey testified. He said he never discussed the case with Comr. Mack and had made up his mind how to vote even before the oral argument was held. "I thought the examiner was completely wrong . . ." he said, because the examiner failed to take into consideration Mr. Katzentine's past broadcast record in the operation of WKAT Miami Beach, Fla. Mr. McConnaughey said the reasons he voted for National Airlines are set forth in the printed decision "which, as far as I'm concerned, speaks for itself." L. B. Wilson Inc. would have been his second choice for the ch. 10 grant, Mr. McConnaughey said. It would not be a good idea to rotate the FCC chairman every year, Mr. McConnaughey maintained, because it takes a chairman that long to get thoroughly acquainted with his job. Mr. McConnaughey said he paid RCA $200 for the color tv receiver "loaned" to him while he was a commissioner. This amount was paid in December 1957 after he had determined the set would work in his Columbus, Ohio, home, he stated. Mr. Lishman pointed out a new model was delivered to Comr. McConnaughey's home in March 1957 and asked the witness if he did not know, at that time, that he was leaving the Commission in June. Mr. McConnaughey replied that he had been "toying with the idea" for some time. Mr. Lishman also read an RCA invoice carrying the color sets in Commission homes Broadcasting