Broadcasting Telecasting (Apr-Jun 1958)

V GOVERNMENT CONTINUED HARRIS HEARS SPRINGFIELD CASE • Pressure charges exchanged in hearing on ch. 2 grant • GOP politicos accused in award to WMAY-TV, now on ch. 36 Two days of hearings were held last week by the House Legislative Oversight Subcommittee on efforts of the two contestants for ch. 2 Springfield. 111., to gain a "fair advantage" over the other. Also a part of the record was a stall" report on the FCC's exchange of ch. 2 Springfield for ch. 36 St. Louis and assignment of ch. 2 to KTVI (TV) St. Louis. And. alter many charges of political pressure and counter pressures had been aired, plus hints of a "deal," the only positive facts were that WMAY-TV Springfield had received the ch. 2 grant over Sangamon Valley Tv Co. and that KTVI had ended up with the channel in St. Louis with WMAYTV getting ch. 36. Outside the hearing room, a fight exploded over the subcommittee's authority to subpoena the records of WHDH-TVBoston Herald-Traveler concerning its grant of ch. 5 (see page 66). Following last week's testimony on alleged pressures brought to bear on the FCC concerning the ch. 2 grant, Rep. John Bell Williams (D-Miss.) said he has decided all any applincant wants before the Commission is a "fair advantage" and the question is "how far will they go to obtain this advantage." Accused of applying pressures were Orville Hodge, former Illinois state auditor serving a prison term for embezzlement of state funds; Leonard Hall, former Republican National Chairman; Sen. Everett Dirksen (R-Ill.), and Reps. Sid Simpson and Leslie Arends (both R-Ill.) [Government, May 24]. Subcommittee Chief Counsel Robert Lishman also made evident he is convinced (1) that WMAY-TV made a "deal" with KTVI, (2) that the station made no effort to retain its right to ch. 2 and (3) that WMAY-TV has no intention to build and operate a ch. 36 station. From their questioning, many of the subcommittee members appeared to share Mr. Lishman's beliefs. WMAY-TV witnesses strongly defended their actions and intentions and just as strongly denied the allegations made by Sangamon principals and the subcommittee staff. Subcommittee Chairman Oren Harris (D-Ark.) said that still to be introduced are a whole series of letters which show a "pattern of interference" with the FCC, in this case and others. The Springfield-St. Louis hearings resume today (Monday) at 10 a.m. in the House Caucus Room with KTVI President Harry Tenenbaum as the first witness. Others scheduled to testify include Paul F. Peltason, executive vice president of KTVI, and Lee Ruwitch, executive vice presidentgeneral manager of WTVJ (TV) Miami and also a stockholder in WMAY-TV and scheduled to become that station's general manager when it goes on the air. On Monday, the subcommittee called five Illinois witnesses to substantiate the previous testimony of staff attorney Stephen Page 64 • June 2, 1958 Angland. L. C. Merwin. publisher of the Bloomington (111J Pantograph, stated that he received most of the information for an editorial in his paper from Oliver J. Keller, Sangamon president, and Rep. Leslie Arends (R-Ill.). The editorial decried behind-thescenes pressure in the ch. 2 case and charged that Messrs. Hodge and Hall were actively working for WMAY. Four Sangamon stockholders — Mr. Keller. Charles H. Anphier, C. W. Campbell and George W. Bunn Jr. — told of a Chicago meeting with Sen. Everett Dirksen (R-IU.). They stated that Sen. Dirksen first told them Mr. Hall was active in the case and they were left with the "impression" the senator obtained this information from an unamed commissioner. None could state, however, the source of information that one commissioner had shifted his vote because Sangamon was a "bunch of New Dealers." Also, they said, the name of Comr. Robert E. Lee was not mentioned in this connection in the Dirksen meeting or at any other time. Mr. Lanphier stated Sen. Dirksen was "extremely upset that Mr. Hall should be interfering in Illinois political problems without any word to the senator." Mr. Keller said Sen. Dirksen announced plans to talk to Mr. Hall about the ch. 2 case but that the senator did not report if such a talk was held. When asked Thursday if he actually did discuss the case with Mr. Hall, Sen. Dirksen said: "I don't think it's anybody's business." He said it was a matter between himself and his constituents. Mr. Hall, in Mineola, N. Y., last week again denied "absolutely, flatly" that he played any role in the Springfield ch. 2 case or any other matter before the FCC. Monday afternoon, Mr. Angland gave a report on the FCC action in shifting ch. 2 to St. Louis and ch. 36 to Springfield. He also discussed the St. Louis ch. 4 grant (to KWK-TV, which merged with two competing applicants) and its subsequent sale to CBS last winter after the network had received a grant for ch. 1 1 St. Louis. Of the ch. 2 case, Mr. Angland said: "I believe that when this hearing is completed on ch. 2, the Commission will have reason before it to set aside the award to WMAY-TV and to set aside the deintermixture order sending ch. 36 to Springfield and ch. 2 to St. Louis." Rep. Peter Mack (D-Ill.), whose district includes Springfield, termed the deintermixture decision "a gross violation of the basic law by the FCC." Both Mr. Angland and Mr. Lishman repeatedly accused WMAY-TV of abandoning its right to ch. 2 and of having no intention of building a ch. 36 station. Mr. Angland said that there is no request on file at the Commission that ch. 36 be shifted from St. Louis to Springfield, yet this was added to the FCC rule-making of March 1, 1957. Also, he said, despite the fact "the Commission expressly disavowed any intention of changing Signal Hill's 1 KTVI] authorization to ch. 2 . . . the Commission actually did give ch. 2 to Signal Hill. ... "Some 15 months have elapsed since the move of ch. 2 was made for the ostensible purpose of 'enhancing the opportunities for more effective competition among a greater number of stations.' Actually, no more stations have resulted." Mr. Angland continued that if the shift had not been made, there would be a second station operating today in Springfield — on ch. 2. Mr. Angland charged that "every action taken by Signal Hill throughout the proceeding reflected its absolute confidence not only that ch. 2 would be moved to St. Louis, but also that it would get the channel." He introduced a contract signed with General Electric on Jan. 25, 1957, by KTVI for ch. 2 equipment. "It is significant . . . that the Commission moved ch. 2 from St. Louis and gave it to Signal Hill on Feb. 26, 1957," he said. [Broadcasting, in its Jan. 21, 1957, Lead Story, reported that ch. 2 would go to KTVI in St. Louis.] Negotiations for vhf equipment were begun by KTVI with GE as early as October 1956, according to documents introduced by Mr. Angland. An October 1953 letter from then FCC Chairman Rosel Hyde to White House Assistant Sherman Adams was entered into the record by Mr. Angland. Comr. Hyde sent Mr. Adams a status report on the St. Louis ch. 4 and Flint, Mich., comparative tv cases. A followup letter in April 1954 from Comr. Hyde to Mr. Adams told of the St. Louis ch. 4 grant made possible by a merger of the competing applicants. Of the Hyde-Adams letters, Mr. Lishman asked: "If this is an independent agency, what is he [Hyde] doing here writing these letters in the first place?" Comr. Hyde said Tuesday he did not remember the specific letters but that they were the type the FCC would send to any citizen in answer to a legitimate request. Mr. Angland also read a January 1954 memorandum prepared by attorney Andrew G. Haley relating to a proposed merger among the three St. Louis ch. 4 applicants — KWK St. Louis Globe-Democrat, KXOK St. Louis and Missouri Valley Tv Co. (Stanley Hubbard and associates). The merger later was completed and made possible the 1954 grant. With the hearing recessed Tuesday, WMAY-TV principals had their "day in court" Wednesday. They were represented by former U. S. Sen. and Democratic majority leader Scott Lucas, plus Washington counsel Marcus Cohn. The three witnesses — WMAY-TV President Gordon Sherman, Vice President Richard S. Cohen and Springfield restaurateur Herman Cohen (who has no stock interest)— each denied applying political pressures on behalf of WMAY. Without mentioning Mr. Angland by name, Mr. Sherman charged that "by omitting certain relevant facts, a distorted picture has been painted Broadcasting