Broadcasting Telecasting (Apr-Jun 1958)

FCC Examiner Favors Ch. 11 For N. D. Broadcasting Co. North Dakota Broadcasting Co. was favored for a new tv station on ch. 11 in Fargo, N. D., in an initial decision last week by FCC Hearing Examiner Elizabeth C. Smith. Involved was the competing application of Marvin Kratter, doing business as Fargo Telecasting Co., which was dismissed at Mr Kratters request early this year. Prior to this dismissal ch. 6 WDAY-TV Fargo had been granted a petition for intervention in the case. Issues included the question of overlap between Fargo ch. 11 and ch. 4 KXJB-TV Valley City, N. D., also owned by North Dakota Broadcasting. The question of concentration of control was also raised in the light of the applicant's other broadcast holdings in North Dakota. North Dakota Broadcasting is the licensee of KSJB Jamestown, KXJB-TV Valley City, KBMB-TV Bismarck and KCJB-AM-TV Minot, all North Dakota, and the permittee of KXAB-TV Aberdeen, S. D. Eastern Renews Ch. 10 Fight Eastern Airlines, which last year sought to intervene in the Miami ch. 10 proceedings before ch. 10 was granted to a subsidiary of National Airlines, Eastern's fierce rival for airline business, last week renewed its petition to the FCC to intervene. The ch 10 case was remanded to the FCC last month by the U. S. Appeals Court for the District of Columbia following controversial hearings by the House Legislative Oversight Subcommittee involving the integrity of former Comr. Richard A. Mack. Eastern said last week that although the FCC had dismissed Eastern's petition made in February 1957, the language of last month's appeals court decision "might imply the necessity" of a formal pleading for Eastern. Hassle Over Beaumont Ch. 6 Back in Court Following Appeal The four-year-old Beaumont, Tex., ch. 6 case was back in court, following a second appeal by the Enterprise Co. The Enterprise Co. (Beaumont Enterprise and JournalKRIC) was one of three applicants for the vhf channel. The appeal was filed last month. The newspaper company asked the court to set aside an April 21 supplemental decision by the FCC which affirmed the 1954 grant to the Beaumont Broadcasting Co. (KFDM). This was remanded to the FCC by the court in 1955 following an appeal by the Enterprise Co. Last March an FCC examiner recommended that ch. 6 be granted to the newspaper company, following a second hearing. Last month, however the FCC voted to affirm the original grant. Comrs. Robert T. Bartley and Frederick W. Ford did not participate in this decision. Key to the contested case is the arrangement whereby Houston publisher-broadcaster W P. Hobby loaned $55,000 to KFDM in exchange for an option to purchase 32.5% interest in a new corporation to be formed to be the licensee of KFDM-TV. KFDM used this mony to pay unsuccessful applicant KTRM Beaumont its out of pocket expenses to withdraw from the threecornered race. Mr. Hobby had a 10% interest in KTRM and an option to acquire 35% of that station in the event it was successful in winning a tv grant. The new Hobby-KFDM transaction came alter KFDM had been granted the vhf channel, but while a petition for reconsideration was pending before the FCC. Mr. Hobby is president of the Houston Post Co. (Houston P<wf-KPRC-AM-FM-TV). In its new appeal the Enterprise Co. maintains that the FCC failed to find that the arrangement between Mr. Hobby and KFDM changed the nature of the KFDM application. No Way Out of Tax on Tv Loot, Published IRS Ruling Affirms A ruling published last week by the Internal Revenue Service emphasized the impossibility of avoiding taxes on television quiz show winnings— even when the money is going to a tax-exempt organization. The question was raised last year when the executive director of a tax-exempt organization agreed to go on a giveaway show with the understanding that winnings were to be paid his group. When he won "60x" dollars (paid directly to his organization), he contended he did not have to report it since Finest Feature Films.. ON WAKR-TV AKRON, OH/O during PEAK EVENING hours • M-G-M • UNITED ARTISTS • COLUMBIA • NTA-"20TH SCREEN GEMS CENTURY FOX" AND OTHERS PARTICIPATIONS AT SURPRISINGLY ICW RATES I KEN KEEGAN OR McGAVREN-QUINN CORP. PO. 2-881 1, Akron New York, Chicago, Detroit, Hollywood, San Francisco 1 WAKR-TV RADIO-TELEVISION CENTER COPLEY ROAD WAKR-RAD ID xD . AKRON 20, OHIO June 2, 1958 * Page 73 Broadcasting