Broadcasting Telecasting (Jan-Mar 1960)

000 shares of Nafi stock in return for 100% ownership of the ch. 13 independent. Nafi closed at 13V2 Thursday on the New York Stock Exchange. The Commission had questioned the possibility of excessive "spot" announcements over KCOP but in last week's action renewed its license. Comr. Bartley dissented from sale approval saying: "For 32 years the Commission . . . has consistently held that the principle of integration of ownership-control and management of broadcast licensees is sound public policy. If this principle is still valid, I fail to see why the Commission should grant its consent to this transfer . . ." • KFBB-AM-TV Great Falls, Mont.: Sold by Wilkins Broadcast Inc. to KFBB Corp. for $616,000. KFBB Corp. is comprised of David E. Bright, chairman of the board of H&B American Corp. (aviation parts), 55%; Ernest Scanlon, Los Angeles motion picture executive, 20% ; and Daniel O'Shea, former RKO Radio Pictures president and former CBS vice president, 25%. Joseph P. Wilkins will remain as president and operating manager of the new corporation. KFBB, founded in 1922, operates on 1310 kc with 5 kw. KFBB-TV, which began in 1954, operates on ch. 5 and is affiliated with ABC and CBS. GUTERMA GUILTY Awaits sentencing in detention house Former Mutual President Alexander L. Guterma and others were found guilty by a federal court in New York last Wednesday (Jan. 27) of conspiring to defraud the U.S. Government by impeding the efforts of the Securities & Exchange Commission to protect investors, and of wilfully failing to file financial reports with the SEC. Other found guilty were co-defendants Robert J. Everleigh, an associate of Mr. Guterma, and two corporations, Chatham Corp. and Comficor Inc., which the government contended were controlled by Mr. Guterma. Bail Denied • U.S. District Judge Lloyd F. MacMahon, rejected a defense plea to have Mr. Guterma and Mr. Eveleigh continued on bail. He remanded both men to the Federal House of Detention in New York pending sentencing Feb. 17. He commented that "the risk of flight by the defendants is much greater now." He told the jury: "If I had been on the jury I would have voted as you did." Mr. Guterma, who was convicted on 16 counts of a 17-count indictment, faces a maximum sentence of 35 years Financier Guterma Jury turns thumbs down in jail and a fine of $160,000. Mr. Eveleigh, found guilty on 15 counts, could get a maximum sentence of 32 years and a fine of $150,000. Comficor, convicted on 12 counts, faces a maximum fine of $120,000, while Chatham Corp., named only in one count, faces a $10,000 fine. Specificially, Messrs. Guterma and Eveleigh were found guilty on charges of wilfully failing to report on their stock ownership in the F. L. Jacobs Co.; hindering and delaying the filing of an annual report for Jacobs for the fiscal year ended July 31, 1958; hindering and delaying a monthly report of Jacobs on the pledge of certain company assets; conspiring to fail to file the reports and defrauding the government by impeding the SEC in protecting the investing public. The Jacobs Co., which was controlled by Mr. Guterma between 1956 and early 1959, is now operated by trustees. It was named a defendant in the indictment and pleaded guilty at the start of the trial. The company is subject to a maximum fine of $10,000 on the conspiracy count. Where Money Went • In his charge to the jury, Judge MacMahon referred to government evidence that indicated the Jacobs company had paid more than $1 million for letters of credit and from those proceeds, $689,000 went to Mr. Guterma, Comficor and the Chatham Corp. For Mr. Guterma, the conviction in the Jacobs case promises to be only the first skirmish in a long legal battle with the government. He also is under indictment for alleged dealing in three ON ROUND PEGS AND SQUARE HOLES Your broker provides an invaluable service to you by trained selection of properties which meet your needs. By using skills developed through thousands of successful transactions, Blackburn & Company achieves the perfect fit for buyer and seller. NEGOTIATIONS FINANCING APPRAISALS ffilackbwm & Ganvprnuf Incorporated RADIO TV NEWSPAPER BROKERS WASHINGTON, D.C. J«mw W. Blackburn Jock V. Harvey Joseph M. Sltrlck Washington Building Sterling 3-4341 MIDWEST H. W. Casslll William B. Ryan 333 N. Michigan Ave. Chicago, llltneis Financial 6-6460 ATLANTA Clifford B. Marshall Stanley Whitaker Robert M. Baird Healey Building JAckson 5-1576 WEST COAST Colin M. Selph Calif. Bank Bldg. 9441 WHshlre Blvd. Beverly Hills, Calif. CRestview 4-2770 78 (THE MEDIA) BROADCASTING, February 1, 1960