Broadcasting Telecasting (Apr-Jun 1958)

IN TV FILM Rep. Oren Harris, chairman of House Commerce Committee, has told FCC if it acts, as it has said it may, to approve subscription tv 30 days after adjournment of Congress, he'll call new hearings at once. LONG WAIT FOR TOLL TV 52 of Universal's library, the complaint said. Screen Gems began distributing its parent company's pre-1948 library of 547 features early in 1956, the government said. Screen Gems has worked out sub-licensing arrangements with tv stations for 249 of these Columbia pictures, the Justice Dept. said. The government also charged that Screen Gems agreed to classify Universal Pictures' features on the same basis as those of its parent company and that it agreed not to sub-license any Universal film at terms less favorable than for comparable Columbia pictures. This is price fixing, the government said. The Justice Dept. asked the court to abrogate the contract between Screen Gems and Universal and to enjoin any further dealings between the two companies. Principals of both companies declared there was no violation inherent in their agreement. Milton R. Rackmil, president of Universal Pictures Co., issued the following statement on the suit: "I have not seen the papers filed by the Dept. of Justice nor have our attorneys and we therefore are unable to make a comment upon the reported legal action. However, we are fully convinced there is nothing in the contract between Universal and Screen Gems which we feel is improper. We will vigorously defend our position and are confident that we will be upheld." Abe Schneider, president of Columbia Pictures Corp., parent company of Screen Gems Inc., made the following comment: "Before Columbia and Screen Gems executed the contract with Universal Pictures, we were assured by legal counsel that the arrangement would not be in contravention of any laws. Therefore, we believe that our present position is clear and without jeopardy." Last year the Justice Dept. filed antitrust suits against six tv film distributors: Loew's Inc. (which distributes MGM pictures), C&C Super Corp. (RKO), Screen Gems (Columbia), Associated Artists Productions Inc. (Warner Bros.), National Telefilm Assoc. (20th Century-Fox) and United Artists Corp. (UA). The govenment claimed that these distributors forced tv stations to buy films in packages. This contravened the 1948 Paramount consent decree, the Justice Dept. claimed. These suits are still pending. Earlier this year, United Artists bought AAP for a reported $15 million. Registration with the Securities & Exchange Commission several weeks ago showed that a new company, United Artists Associated, was seeking permission to issue $15 million in debentures to be used to acquire the stock and debentures of AAP. Supreme Court Ruling Sought In Radio-Tv Sec. 315 Quandary The U. S. Supreme Court will be asked to rule on the responsibility of radio and tv stations for libelous statements made on the air by a political candidate. The North Dakota Farmers Union announced last week it will appeal a North Broadcasting The chairman of the House Commerce Committee has warned the FCC not to authorize subscription television tests after the 85th Congress adjourns this summer. Rep. Oren Harris (D-Ark.) issued the warning in a three-minute statement filmed for distribution to tv stations. The film was made available last week. Rep. Harris' committee, after two weeks of hearing, told the FCC to delay consideration of toll tv tests until Congress acted on the subject [Lead Story, Feb. 10]. Mr. Harris' new filmed statement said in part: "Many of us in the Congress have felt that with the Commission taking the action it did recently and authorizing test of pay tv that the Commission has gone beyond its authority as the Congress intended with the Communications Act of 1934. We do not feel that we should oppose the authority of the Commission to experiment with new types of broadcasting but we do feel that the Commission has gone beyond the scope of its authority in authorizing the so-called paytv program even of a trial test as it did a few months back. "Undoubtedly you are wondering what this is that I have surrounding me here [see picture]. These are letters from all over the U. S. from people who are greatly concerned about this subject, expressing their opinions to their Congressmen from every district in the nation. Here we have some 100,000 communications in various forms from people who are greatly concerned. Obviously we could not get all of the communications in this picture, but we did think that we could present what we have here to you in order that you could get some conception of the interest which is being brought to our attention of the people in this allimportant subject. "I can assure you that there has as yet been no test authorized or no pay-tv program authorized and I do not think there will be any time soon. The Commission itself has said in its Report No. 2 that following the adjournment of Congress and 30 days that it intends to authorize the so-called trial test of pay tv. . . . Therefore, it will be my intention, should the Commission decide to undertake the trial test 30 days following the adjournment of this Congress, to call the Committee back together in session and conduct hearings into this entire problem. "We feel, as these letters have all indicated to us, that it is highly important that the reasons for the action of this Congress be known by the people of America and that it will be the House Committee's intention in its opposition to this approach to the problem to see that the interest of the American people is protected." The film clip is a shorter version of a 15-minute program Rep. Harris filmed for tv stations in his home district and was made at the request of other broadcasters to explain the committee's pay tv position. Ed Williamson, clerk of the Commerce Committee, said over 150,000 telegrams, letters and post cards have been received on pay tv, with "over 99% against." In addition, individual members of Congress have received thousands (over 20,000 to one congressman) of letters on the subject. April 14, 1958 • Page 51