Broadcasting Telecasting (Jan-Mar 1959)

CLOSED CIRCUIT. Salvage • Mutual may be sold again. Transferred within past fortnight from Guterma to Roach control, network is now being looked at by at least four concerns. They include two cosmetic firms, one reportedly Max Factor, and undisclosed "diversified" group. Late entry Friday, was fourth group, which includes number of broadcasters who reportedly had access to about $750,000 in cash. Mutual' s total liabilities were more than $1.2 million at mid-1958 (Broadcasting, Feb. 16), but operating losses are now down to some $30,000 a month, it's reported. One or two good sales could put network in break-even operation, though it would take more to eat into total debt. Second look in Miami • FCC has decided to take another look at Miami ch. 7 case (WCKT, headed by former NBC President Niles Trammell, with 15%, with principals in Miami Herald and Miami Daily News owning balance in equal amounts). At meeting last Thursday, FCC instructed staff to draw up bill of particulars paralleling that in Boston ch. 5 case (WHDH-TV) to ascertain whether any commissioner should have disqualified himself in final vote three years ago because of purported ex parte contacts, and related issues. This is being done prior to acting on pending petition for reconsideration by one of losing applicants. Court of Appeals in Washington last year remanded ch. 7 case to FCC on ground that Commission had failed to give appropriate consideration to effect of consulting fee arrangement Mr. Trammell had with RCA-NBC. But hearing and prior investigation ordered last Thursday is based on testimony before House Legislative Oversight Committee and particularly is directed to question whether improper ex-parte contacts had been made on behalf of Biscay ne with former Comr. Richard A . Mack or with others. Du Pont and radio • Prestige tv advertiser E. I. du Pont de Nemours & Co., Wilmington, Del., may also go into spot radio. As yet plans for spot radio campaign that would start this summer (presented by its agency, BBDO, New York) have not been cleared by company. Such du Pont move — regardless of budget — would give immediate lift to spot radio because of name value of advertiser that has skipped over radio in ad plans for recent years. Strain tells • Those rehearings in tv cases involving allegations of backdoor wirepulling are beginning to take toll of FCC lawyers. Assistant General Counsel Richard A. Solomon resigned to join Justice Dept. Now word is Associate General Counsel Edgar W. Holtz is thinking of making move out of FCC. Friends say he wanted to leave after completing Miami ch. 10 rehearing, but felt he ought to see Boston ch. 5 through when he received that assignment. The traders • Identities of stations bartering tv spot time for feature films — practice which was highlighted in bizarre financial didoes of Bon AmiMatthew Fox-Guild Films in Guterma SEC case — may become public information when SEC hearing is held in Washington March 23. SEC officials claim information is in files, and may be placed on record. Step-child • Just as fm broadcasting seems to face brighter future, NAB convention schedule is being juggled to cut short fm program at Chicago. Fm originally was to have full Monday morning (March 16). However, when shift of keynote speech from Monday luncheon to 11 a.m. became necessary, fm meeting was tentatively bracketed 9-10:45 a.m., adjourning in time for keynote speech. Closed labor relationspersonnel meeting would run at same time as abbreviated fm session. One-sided • In disposing of ch. 7 KIRO-TV Seattle case last week by instructing staff to affirm 1957 grant, FCC voted overwhelmingly in favor of action. While no vote is "final" until written opinion is acted upon, it's learned that vote was 5-1-1, with one commissioner each favoring opposing applicants KXA and KVI (story page 64). Y&R on the mov 3 • More changes, new lines of authority and added responsibility to key executives are forthcoming at Young & Rubicam's media Dept. Under aegis of W. E. (Pete) Matthews, newly-elected media vice president. Those close to situation speak of Y & R as being on the move, gearing for impressive media year. Y & R is agency that set up new radio-tv department under vice president Peter G. Levathes at first of year. Widened vhf • There's substance in renewed talk about additional channels for vhf. While FCC Chairman Doerfer did not elaborate on his comments made before Radio & Television Executives Society in New York, Feb. 4, wherein he voiced optimism, it's learned that efforts are being made for showdown with military on what it might relinquish in vhf space and what it would expect in return. Nothing is on paper yet, but there seems to be feeling that some additional vhf space in contiguous band beginning with ch. 7 could be procured. Political Imagery • Cunningham and Walsh now has mid-March as its target date for release of its study on tv's power to influence independent vote during political campaign. Agency used New York State gubernatorial race as its laboratory, originally was to release study earlier in year (Closed Circuit, Nov. 17, 1958) but ran into difficulties of grey areas in findings. It'll treat "personality" or "image" established in mind of viewers, rather than power of tv to convey political issues. Three Survivors • ABC-TV now plans to retain Beat the Clock, and Who Do You Trust? when it programs revamped daytime schedule in April, will insert its newly-purchased 125 episodes of Gale Storm Show (which were originally shown on CBS-TV) for re-run in 2:30 to 3 p.m. slot. These three shows will be basic in future programming in day house (see story page 38). Network seems sure to drop 11:30 a.m. -noon segment, will program noon-1 p.m., but has not decided future of 1-1:30 p.m. period (programming picks up at 2 p.m.). In highest federal echelons, great concern is being evinced these days over what is regarded as trend toward run-away inflation. It's hot potato, not only economically but politically because of constant boring in of organized labor to raise pay and fringe benefits which triggers vicious cycle by causing inflated prices. Concerning broadcasters, notably networks, is past experience, reflected in inordinate demands for time on all sides to air issue. It's problem Advertising Council won't touch. William B. Maillefert, who resigned recently as vice president in charge of radio division, Edward Petry & Co., is following lead of Ed Murrow and taking at least one year sabbatical in Europe. He leaves in late March or early April and plans to survey broadcast operations on continent as background for free lance writing. BROADCASTING, February 23, 1959 5