Broadcasting Telecasting (Jan-Mar 1960)

CLOSED CIRCUIT® NBC's big deal • NBC has negotiated last piece of package deal involving major market realignment with agreement on acquisition of ch. 2 KTVU (TV) San Francisco for about $7.5 million. This, following essential official clearances, paves way for tax-free exchange of NBC's Philadelphia properties (WRCV-AM-TV) for RKO General's Boston properties (WNAC-AMFM-TV) and $9.5 million sale of WRCAM-FM-TV Washington to RKO. All transactions must receive prior approval (even before FCC consideration) of Justice Dept. in accord with consent judgment last year covering any change in NBC ownership in first eight markets (Broadcasting, Jan. 25). San Francisco negotiations were undertaken by P. A. (Buddy) Sugg, NBC executive vice president, after efforts to acquire San Francisco Chronicle's ch. 4 KRON-TV had failed. Deal with Pabst-Ingrim-Pauley group for KTVU understood to be $6.9 million, plus assumption of equipment and contract obligations which would bring price to estimated $7.5 million for ch. 2 independent which began operation March 3, 1958 (KRON-TV is present NBC affiliate). Remaining facet — assuming Justice Dept. clearance — will be mandatory sale by Tom O' Neil's RKO of WGMS-AM-FM Washington to offset acquisition of WRC-AM-FM. Several offers reportedly in excess of $1 million have been received. Several weeks may be entailed for drafting of contracts and procurement of clearances. Major repair job • Strong bi-partisan sentiment is developing in Congress for ripper legislation which would affect future of all independent agencies, including FCC and FTC. Growing dissatisfaction, accelerated by tv disclosures and purported advertising excesses, has prompted Senate study by professional staff experts (Interstate Commerce Committee is charged with jurisdiction over most independent agencies) looking toward legislation, but there's little prospect of any action at this short session. Notion is that if next elections yield single party control of both executive and legislative branches (either Republican or Democratic) new legislation is virtually certain. Two plans are discussed: (1) creation of super independent agency responsible only to Congress which would establish all major regulatory policies, with single administrator for each specialized phase; (2) integration of independent agency duties in established government departments, subject to Presidential control, with single administrator for each function. Catching? • Raymond W. (Bill) Martin, staff member of House Legislative Oversight Subcommittee investigating payola in music recording-publishing and broadcasting fields, has turned songwriter. He's made test pressing and copyrighted first tune, "I'm Looking for My Love," bluesy-type ballad employing Spanish minor and major chords. He reports tune is gaining popularity around Washington night spots. Still deadlocked • FCC last week again wound up in 3-3 tie on long-pending Indianapolis ch. 13 case involving competing applications of Crosley Broadcasting and WIBC-AM (Fairbanks). Crosley's WLWI has been on air since Oct. 30, 1957, but FCC, under court mandate, must reconsider decision. U.S. Court of Appeals held in June 1958 that Comr. T. A. M. Craven had not been qualified to participate in original decision favoring Crosley because he had not heard oral argument (Broadcasting, June 23; Nov. 24, 1958). FCC is in quandary because of new tie vote (Doerfer, Hyde, Cross for Crosley; Bart ley, Lee, Ford for Fairbanks). It's even foreclosed from seeking opinion from its general counsel under delineation of functions and may have to petition U.S. Court of Appeals for District of Columbia for guidance. Question appears to be whether court could instruct Comr. Craven to participate after new argument of case. Lestoil back in tv • Adell Chemical Corp.'s Lestoil cleanser product, which ranked 10th in total tv gross time expenditures for first nine months of 1959, with $13,707,900 (Broadcasting, Dec. 28, 1959), and then surprised with cancellation of all tv spot schedules on more than 100 stations as of Jan. 1 , will resume schedules in full starting Feb. 14. Jackson Assoc., Holyoke, Mass., agency for Lestoil, is giving affected stations two choices: either resumption of full schedules in fringe time as original contracts stipulated, plus addition of six more weeks to make up for the lost time, or else station can allocate remainder of money involved in its contract to spots in prime time, therefore causing reduction in total number of spots due to higher costs. Demixture snag • FCC has hit legal, engineering and international snags in proposals, still within Commission, to change two California cities from predominately uhf to all vhf. In both cities, Fresno and Bakersfield, currently operating are two uhf stations and one vhf outlet. Commission rulemaking would delete ch. 12 from Fresno (KFRE-TV), add it and ch. 8 to Bakersfield which already has ch. 10 (KERO-TV). Fresno, in turn, would get chs. 2, 5, 7 (educational) and 9. Proposal was on FCC agenda last Wednesday but was not reached for action. To move squatter • Formal protest against Mexico's exercise of squatter's right on 530 kc — one channel below lower limit of existing am band — is being drafted by U. S. State Dept. on ground that it is in contravention of international allocations. Mexico has notified NARBA nations that it plans to use channel in Mexico City for 50 kw radio station, whereas channel would not become available for use until 1961 and then for only low power (250 w) stations. In 1948, Mexico pre-empted 540 kc channel for XEWA San Luis Postosi with a similar "extra-legal" tactic. (Broadcasting, Jan. 25). Fm car radios • Sarkes Tarzian's broadcast equipment division, Bloomington, Ind., is marking time on decision whether to market car fm radio — perhaps waiting to see results at Motorola Inc., Chicago-based manufacturer, which will sell car unit. There are divided camps at Tarzian Inc., whose principal also has station interests (WTTS-AM-FM and WTTV (TV) Bloomington and others). One big question: whether to come out with fmonly tuner or combination am-fm model for automobiles. Eager witnesses • FCC (it hopes) has completed chore of taking public testimony in programming hearing (see story, page 60), but final determination of all that goes in record still has not been made. For instance, songwriter Gloria Parker, whose battles with RCANBC and CBS have made news in past, has sent statement after Commission failed to call her in person. And Chicago's Lar Daly has repeatedly demanded opportunity to be heard. There's dispute among commissioners on what action to take on both requests. Published every Monday, 53rd issue (Yearbook Number) published in September by Broadcasting Publications Inc., 1735 DeSales St., N. W., Washington 6, D. C. Second-class postage paid at Washington, D. C.