Broadcasting Telecasting (Apr-Jun 1958)

GOVERNMENT CONTINUED JUSTICE IN ON CI The headline-making Miami eh. 10 television case was designated last week for hearing by the FCC, acting upon a mandate by the U. S. Court of Appeals for the District of Columbia remanding the case to the Commission [Government, April 21]. The FCC membership (new Comr. John S. Cross not participating) ordered a prehearing conference in Washington June 23 on lour issues involved in the 1957 grant of ch. Id in Miami to Public Service Television Inc., a subsidiary of National Airlines. The Commission, significantly, also ordered that the presiding officer at the hearing permit the Justice Dept. to participate in the hearing, "upon request made," as amicus curiae. The appeals court in its decision had said Justice should be a party. The four issues: ( 1 ) Whether any FCC member who participated in the ch. 10 grant should have disqualified himself from voting. (2) Whether any one influenced or attempted to influence the FCC in the award of ch. 10 "in any manner whatsoever except by the recognized and public processes of adjudication." (3) Whether any party to the proceedings "directly or indirectly secured, aided, confirmed, ratified or knew of any misconduct or improprieties. . . ." (4) Whether, from these issues, the grant was "void ab initio [from the beginning]" and if not whether it was voidable and should have been set aside; whether any of the four applicants "was and is disqualified" for a grant, and whether the conduct of any applicant, even if not disqualifying, has been such as "to reflect adversely upon such applicant from a comparative standpoint." Last week's FCC action was the latest development in a furor over the ch. 10 grant which had its beginning when the House Legislative Oversight Subcommittee began hearings last February [Government, Feb. 10] and developed testimony charging that former Comr. Richard A. Mack sold his vote to the winning applicant in Miami for $2,650 [Lead Story, Feb. 17]. The climax was when Comr. Mack resigned [Government, March 10]. His resignation from the FCC came after internal wrangling among the members and staff of the House subcommittee brought the resignations of its chairman, Rep. Morgan Moulder (D-Mo.), and its chief counsel, Dr. Bernard Schwartz, over how the investigation should be conducted. The House subcommittee, now headed by Rep. Oren Harris (D-Ark.), also questioned other commissioners about fraternization with members of the broadcast industry. The committee probe is still going. The FBI entered the case when it was revealed that money and other considerations had been given to Comr. Mack by Thurman A. Whiteside, Miami attorney, whom Mr. Schwartz had described as a "fixer" working in behalf of National Airlines, winning applicant. A federal grand jury in Washington be Page 72 • June 2, 1958 \. 10 HEARING gan closed sessions immediately after Comr. Mack's resignation, hearing testimony from Mr. Mack, Mr. Schwartz, Mr. Whiteside, all the four applicants in the contest and FCC representatives. Its investigation also is still going and has reached out into cases involving other FCC grants. Attorney General William Rogers noted last week that the appeals court specified i hat the Justice Dept. should be a party to I he upcoming FCC hearing and added, "We will comply with the request of the court." He said Justice's role as amicus curiae will be announced formally in a few days. In announcing the hearing last week, the FCC said consideration will be given to holding hearing sessions at locations other than Washington, leaving open the possibility some or all the sessions may take place in Miami or elsewhere. "All parties to these cases" before the FCC may participate if request is made by June 5, with opportunity for cross-examination and rebuttal testimony, the FCC said. The FCC, in issuing its order last week, did not specify that it would be held by one of its regular FCC hearing examiners, but by "a presiding officer." Although the Commission has not made a choice of who will hear the case, it is understood a search is on for an outstanding jurist — a state or municipal judge, a retired judge, an outstanding lawyer, or perhaps an examiner from another government agency. If the FCC is unable to find such a presiding officer, it was said, one of the FCC's examiners may be assigned to the case. The person selected would have to agree to submit to the Civil Service Commission for special appointment to ensure proper legal safeguards. The idea of using a retired federal judge was dropped after it was realized that the case is on remand from a federal court which still retains jurisdiction over the outcome and that such retired federal judges are on tap for further work as needed by the federal courts. The three other applicants for Miami ch. 10 in addition to the National Airlines subsidiary are WKAT-AM-FM Miami, L. B. Wilson Co. (WCKY Cincinnati) and North Dade Video Inc. The National Airlines station, WPST-TV, has been on the air since last Aug. 1. J. Frank Katzentine, owner of WKATAM-TV, and George T. Baker, president of National Airlines, charged each other in testimony at the House subcommittee hearings with using "pressure" in Washington before the FCC grant was made. Pittsburgh Asks Additional ETV The Pittsburgh educational tv organization last week asked the FCC for permission to operate a second non-commercial, educational tv station in that city. It filed an application for ch. 22, to be operated for direct broadcasts to school rooms, in addition to its present WQED (TV) on ch. 13. Last July the educational station asked the FCC for ch. 47 in addition to ch. 13 [Government, July 1, 1957]. Ch. 47 is held NEWEST MEMBER of the FCC, Comr. John S. Cross (r), is sworn into office during Commission ceremonies by Chairman John C. Doerfer [At Deadline, May 26]. by WTVQ (TV) which has never begun operating but which still holds a construction permit. Recently WQED asked the FCC to assign ch. 22 to Pittsburgh, and last week's application was filed contingent on the Commission making that move. It plans to build the uhf station for $150,000 and spend $40,000 a year in operations. WHAS-TV Back Before FCC With Fifth Tall Tower Proposal WHAS-TV Louisville, which has been trying for four years to increase its rural coverage in Kentucky and southern Indiana, last week asked the FCC to approve its latest (fifth) proposal for a tall, tall tower. The Louisville station's proposal for a tower 1,859 feet above ground to be located at a site 17 miles northeast of the city was turned down by the Washington Airspace panel last February. Four other tall tower proposals have been rejected by either that group or the New York Regional Airspace Subcommittee, the first in 1954. Last week Victor Sholis, vice president and director of WHAS-AM-TV, requested, in hearing before FCC Hearing Examiner Charles J. Frederick, that the FCC approve the proposed tower despite the airspace groups' disapproval and the opposition of aviation interests. WLEX-TV and WKXPTV Lexington (both uhf) and WKRC-TV Cincinnati, stations which object to the increased coverage WHAS-TV would have in their directions. Supporting the WHAS-TV proposal were Orrin Towner, chief engineer, who described plans for lighting and marking the tower which are looked upon by broadcasters as unusualr Prof. H. Richard Blackwell, director of the U. of Michigan's visual research lab, who testified in the hearing last week that the proposed lighting will satisfy visibility standards more than adequately, and Lowell Wright, independent aviation consultant. Mr. Sholis said WHAS-TV has examined 27 tower sites and has had six sites under option. WHAS-TV's earlier site proposals, planned for a "more logical" area southeast of Louisville, also were turned down by the airspace groups. WHAS-TV witnesses testified Monday through Thursday. Opponents will be heard when testimony resumes tomorrow (Tuesday). Broadcasting