Broadcasting Telecasting (Oct-Dec 1959)

.CLOSED CIRCUIT* Major swap • Meeting of minds now has been reached by NBC and RKO Teleradio on one of biggest swap-sales transactions ever [Closed Circuit, Dec. 14]. Tom O'Neil's Teleradio would acquire NBC's WRCV-AM-TV Philadelphia in tax-free exchange for WNAC-AM-FM-TV Boston, and then would purchase (for about SI 1-12 million) NBC's WRC-AM-FM-TV Washington. To maintain its vhf quota of five stations, NBC is actively negotiating for purchase of San Francisco outlet. WGMS-AM-FM Washington necessarily would be sold by Teleradio under transaction. San Francisco conversations are with NBC's present ch. 4 affiliate, KRONTV, owned by Chronicle, and with ch. 2 KTVU (TV), independent owned by Pauley-Pabst-Ingrim group, which began operation last year. Discussions, it's understood, center around $8 million asking price for ch. 2 outlet. Because of consent decree requiring NBC to dispose of Philadelphia properties, final agreement presumably would require not only usual FCC approval but also acquiescence of Dept. of Justice and Federal District Court in Philadelphia, lest there be adverse effect on any existing affiliate. NAB seeks counsel • Outstanding constitutional lawyer being sought by NAB to present its legal argument before FCC on question of federal agency's jurisdiction over programming. To buttress preparation of overall case, Robert K. Richards has been retained as special consultant to work with 12man Task Force. Mr. Richards, former administrative vice president, has had NAB as client since he left association in 1954 to establish his own office. NAB's Task Force will meet again in Washington Dec. 28 to appraise preliminary preparation for hearing. If need be, it's understood, full NAB board will be called into session prior to actual presentation of case. Firm position taken by board was that there's no need for new legislation along lines suggested by some witnesses in proceeding. Sponsorship format • There've been recurrent reports — regularly denied — that CBS-TV plans to install spot-carrier form of advertising, at least on limited basis, in lieu of conventional sponsorship format. Insiders say situation is this: In quest for "balance" and for controls to assure that it's in charge. network is considering "practically everything." Consequently to deny any one thing is under consideration could be misleading while confirmation could give it grossly unwarranted importance, especially where "it" represents departure as far-reaching as so-called "magazine" or "spot carrier" concept. They insist, however, they're going to have mastery over programs, and with some heat deny reports that they may back away in slightest degree from any policy decisions announced in this regard. Crisis hanging over television — and especially regulatory stormclouds — have led CBS-TV officials to advance date of annual convention with affiliates and transfer site to scene of current fireworks. Instead of Chicago immediately preceding NAB's April convention there — customary time table — date and place now set for Feb. 29-March 1 in Washington (Shoreham Hotel). At one other time of regulatory trouble, 1958, CBS-TV also switched to Washington and moved it up to January. Oversight in Gotham • House Oversight Subcommittee apparently figures peripatetic investigator staff isn't enough for volume of business in New York and several weeks ago hired special staff of three to set up permanent shop there, at 346 Broadway. They are Harold Ranstad, Edward M. Jones and James Kelly, all former investigators with Senate's McClelland Labor Racketeering Committee. FCC has decided to intervene in case involving Post Office Dept.'s denial of mails for circulation of Lady Chatterly's Lover, British book banned because of purported obscenity and indecency. Intervention would be amicus curiae (as a friend of the court) to ascertain what implications there might be affecting radio and tv programming if ban is upheld. Question arises in adaptation of such literary works for tv. Uhf fund in doubt • Don't bet on ultimate approval of $2.25 million appropriation for all-inclusive technical study of uhf band as possible substitute for vhf. While preliminary approval had been given project by Budget Bureau after pitch from FCC Comr. Robert E. Lee, other members do not go along. Moreover, responsible non-official entities also have expressed opposition on ground that there's adequate technical information now available and that nothing of value would accrue from new study. Bill to license all survey agencies, including radio-tv rating services, will be introduced in New York State Legislature next month by Assemblyman Charles Henderson (R.-Hornell), owner of WLEA Hornell, N.Y. Mr. Henderson started damage suit against A. C. Nielsen Co. in 1957 for survey conducted in his area. Suit scheduled to be heard next month before New York Court of Appeals. Justice quandary • FCC isn't sure whether Justice Dept. is pushing — or just keeping it informed. Justice has bluntly informed FCC that Attorney General has no objections to proceeding with Boston ch. 5 rehearing notwithstanding Jan. 25 retrial of former Comr. Richard A. Mack and Miami attorney Thurman A. Whiteside on charges of having conspired in Miami ch. 10 grant to National Airlines. First criminal trial resulted in hung jury. Examiner Horace Stern's initial decision last September having found no improprieties, Boston ch. 5 case awaits oral argument. Justice Department had asked FCC to hold up on Miami ch. 10 oral argument to obviate any impact on criminal retrial of Messrs. Mack and Whiteside. How should broadcaster handle situation where Federal Trade Commission has filed complaint against advertiser for alleged false and misleading commercial and this commercial is carried by station or network? Legally, advertiser is in clear until FTC has held hearing and has found that advertisement is in fact deceptive. FTC Chairman Earl W. Kintner, however, has strong feeling that broadcaster and advertiser ought to consider seriously whether questioned commercial should be continued if there is slightest doubt that it is not completely and fully on up and up. "This is a moral problem," Mr. Kintner says. Next Atlass era • Retirement of H. Leslie Atlass from CBS Central Div., plus resignations of son Frank, sales manager, and daughter Harriet, public affairs director of WBBM-TV, signify more than mere end of Atlass family activity at WBBM-AM-FM-TV Chicago. Senior Atlass and son, as well as second son, H. Leslie Jr. (also CBSChicago), are said to be looking over independent properties in Chicago and elsewhere. Hamilton-Landis & Assoc. is participating in search. Published every Monday, 53rd issue (Yearbook Number) published in September by Broadcasting Publications Inc.. !735 DeSales St., N. W., Washington 6. D. C. Second-class postage paid at Washington, D. C.