Broadcasting Telecasting (Apr-Jun 1958)

closed circuit WIP DEAL BREWS • Philadelphia pioneer station WIP (established 1922) will pass from Gimbel Bros, to Todd Storz ownership for about $2.5 million cash if negotiations in progress past fortnight are completed. Negotiations are being handled personally by Mr. Storz and Louis Broido, executive vice president of Gimbel Bros., and Benedict Gimbel Jr., president-general manager of WIP. At week's end, it was understood number of aspects remained to be cleared before contract could be completed. • It was learned that prior to Storz negotiations, Plough Inc. had discussed possible acquisition of station but that conversations terminated at figure of about $2 million. Purchase of WIP would give Storz Stations their fifth am outlet. Others are: WDGY Minneapolis-St. Paul, WHB Kansas City, WT1X New Orleans and WQAM Miami. WIP operates on 610 kc with 5 kw full time and is currently MBS affiliated. W1P-FM (established 1942) operates on 93.3 mc with 20 kw. • McLENDON BUY • Purchase of WGRC Louisville for approximately $750,000 will give McLendon group its fifth radio outlet. Agreement reached by Gordon R. McLendon with stockholders of Northside Broadcasting Corp. will be filed with FCC this week in application for transfer. Principal stockholders of Northside are Charles L. Harris, vice president and general manager, 36%; Robert S. Davis, vice president, 31% and J. Porter Smith, president, nearly 12%. McLendon stations are KLIF Dallas, KILT Houston, KTSA San Antonio and KEEL Shreveport. WGRC, established in 1946, operates on 790 kc with 5 kw day and 1 kw night. Messrs. Davis and Smith are principal stockholders of WJPS Evansville, Ind. • Larry Field, who retired as radio sales manager of Edward Petry & Co. in 1954 after career in spot sales, is coming back to radio — but at network level. There'll be announcement this week by Armand Hammer, president of MBS, that Mr. Field is joining network as assistant to president in charge of sales. UP BEATS • Radio stations are looking for brighter business picture in second half of 1958. That's word from President Kevin Sweeney and other RAB officials on basis of talks with more than 150 stations in past 30 days. They report local business — especially automotive and appliance— has begun to come back, and say local outlook is for light gains, 5 to 10% on average, for second half over same period last year. They look for similar gains in network and spot — in order of 7 to 9% for all national business for 1958. Radio won't be alone in overall 1958 gains (see above) if latest TvB estimates prove correct. These, worked up last week, anticipate net expenditures in television time, talent and production will come to about $1.44 billion or 9.5% ahead of last year's $1,315,000,000. By category, TvB's 1958 estimate breaks down as follows (with 1957 figures in parentheses): network $740 million ($667 million): spot $385 million ($367 million) and local $315 million ($281 million). NAB survey of radio-tv business prospects released last week (story page 78) also predicted gains for both, but not as large as RAB and TvB are predicting. • ALLOCATIONS • Community antenna interests get their turn at bat June 24, it has been tentatively determined by Senate Commerce Committee staff. Committee is also due to hear Dr. George Town, executive director of Television Allocations Study Organization, and is thinking seriously of having FCC return for clean-up testimony. • Because of pending proceedings involving its jurisdiction over community antennas, FCC for third week has passed over several applications for microwave relays by CATV operators. Usually such applications are granted as routine at staff level. • LESTOIL BOOM • Lestoil (household cleaner), one of television's greatest success stories and now spending over $6 million in spot tv, is pushing its budget up to $7 million. Lestoil is now shipping out as many cases in one day as it did in one year in 1953 before it started its tv campaign. Advertiser currently concentrates all of its budget in one medium — television. Agency for Lestoil is Jackson Assoc., Holyoke, Mass. Donald C. Heath, vice president of William B. Remington Inc., Springfield, Mass., joins agency this week in newly created post of executive director. Operating on theory that broadcasting is overlooking "house ad" opportunities utilized by printed media, Mutual this week reported to be beginning on-air campaign, suggesting that old-line users of radio as well as non-users consider possibility of utilizing network time and lor local station time. Copy will be direct "pitch" with off-beat humor, pointing up value of radio, and asking that inquiries be sent to MBS headquarters in New York. Both one-minute and 20-second announcements planned during unsold periods. • PINCH ON PAY-OFF «> In wake of House Legislative Oversight Committee criticism of "pay-offs" in television cases, wherein surviving applicant has paid vary ing sums to those who drop out, FCC is considering proposal by Comr. Fred W. Ford that such transactions be limited to actual reimbursement for expenses. Specifically, Ford proposal would require sworn statements on expenses actually incurred for lawyers, engineers, prosecution of applications, etc. by non-surviving parties. This presumably would put FCC in position of determining reasonableness of professional fees and what actually constitutes legitimate expenses. • House Legislative Oversight Subcommittee's investigation of Pittsburgh ch. 4 grant is "98%" completed and hearings in all probability will be held next week. Federal grand jury in Washington has been investigating Pittsburgh case for several months, at behest of Dept. of Justice. Also due for hearing next week is applicants' side of alleged ex parte pressures (subcommittee charges page 68) in Miami ch. 7 grant. • CH. 10 REVISITED • So far, FCC hasn't had much luck in finding retired jurist to preside at court ordered re-hearing of Miami ch. 10 case. Several ex-judges have been considered but were unavailable. If FCC is unsuccessful in finding outside jurist, its chief examiner, James C. Cunningham, likely will sit on new proceedings which get under way on pre-hearing conference basis June 23. Meanwhile key staff officials conferred with Justice Dept. attorneys last week, scanned FBI reports for leads in developing roster of witnesses to be called or documents and papers to be subpoenaed. o Triple damage suit filed by Tribune Co. (KTNT-AM-TV Tacoma-Seattle) against Queen City Broadcasting Co. (KIRO-AMTV) and CBS [At Deadline, June 2] has caused sensation in Washington regulatory circles. It's contended $15 million suit in essence challenges propriety of joint operation of both am and tv networks and of am and tv stations. HOW'S BUSINESS? • WGN-TV, Chicago independent, enjoyed its biggest month in ten years of operation last May, being 12% over May 1957, according to Ward Quaal, vice president and general manager. WGN was up 5% over May of a year ago. • Procter & Gamble, Cincinnati, expected to sign up for full half -hour weekly sponsorship of Tic Tac Dough, Monday, 7:30-8 p.m. on NBC-TV. Show is now on Thursday night and sponsored by Warner-Lambert until end of August. Specific P&G agency not yet assigned. Broadcasting June 9, 1958 Page 5