Broadcasting Telecasting (Jan-Mar 1960)

AT DEADLINE CONTINUED seal of approval for advertising and commercials. Asked if he endorsed NBC President Robert Sarnoff's suggestion that FCC endorse NAB tv code, Chairman Doerfer said, "If we decide the Commission has the power to control the ingredients of programs, I see nothing wrong with taking over the NAB code and administering it." He voiced doubt over the right of government sanctions, adding, "I frequently endorse the code. It's one thing, however, for broadcasters to enforce their own code and for the government to do it. You in industry can move rapidly. I've never seen so much red tape as we have at the Commission, most of it brought on by the industry itself. If counsel for a murderer ever got a change of venue to the FCC, the defendant would be dead long before he could be convicted and sentenced." Chairman Earl W. Kintner of Federal Trade Commission said "rigged quiz shows and the illegal payment of payola to radio and television disc jockeys will prove to be the harsh medicine necessary to cure the subservience of some in the broadcasting industry to predatory advertisers and their advertising agencies. These, in turn, when confronted with a chastened and cautious broadcasting industry, would be far less inclined to spend money on com mercials that cut the corners of the law." While FTC has named agencies as parties respondent in complaints, it has not brought media into its cases. Mr. Kintner said he hoped FTC "never will find it necessary to make any publishing medium, printed or broadcasting, party respondent in a deceptive advertising case." Concurs With Rogers • Mr. Kintner concurred with Dec. 30, 1959, report by Attorney General William P. Rogers dealing with broadcast responsibility. Observing that FTC had turned over its payola data to FCC as well as Internal Revenue Service, he said, "If in any case it appears that licensees as well as employes have accepted or benefited from payola, both the Attorney General and the FCC will be informed so consideration can be given on whether to take action under Sees. 317 and 501 of the Communications Act." He suggested "an exceedingly high percentage" of record firms and distributors use payola as standard commercial procedure. If FTC inquiries show broadcasters have prepared and produced advertisements for radio and tv, FTC staff will consider proceeding against broadcasters if law may have been violated, he warned. FCC proposes bills on payola, deceit FCC Friday (Feb. 5) approved for transmission to Congress proposed legislation amending U. S. Code to make criminal offenses of both offering or accepting payola and of broadcasts designed to deceive public. At same special meeting, Commission issued proposed rulemaking to cover both subjects. Legislation proposal that FCC adopted was essentially same text submitted by General Counsel John L. FitzGerald (see page 27 for texts). Both proposed bills are designed to reach persons other than licensees (i. e. disc jockeys, record firms, publishing houses and distributors on payola; producers, directors and independent performers on program deception). Sanctions call for fine of $5,000, and/ or one-year imprisonment. Comments on rulemaking proposals are due by March 1. Rule relating to payola, combination of proposals submitted by Mr. FitzGerald and Broadcast Bureau Chief Harold Cowgill, require licensees to adopt procedures to prevent such practices. Deceptive quiz rules were adopted from draft of proposed rule submitted by Comr. Frederick W. Ford (see page 32 for text). WEEK'S HEADLINERS Mr. Lerner Mr. Reed Mr. Schreiber Mr. Hackett Louis C. Lerner, Boston financier who owns controlling interest in Official Films, N.Y., named chairman of board, succeeding Harold L. Hackett, chairman and president since 1953, who resigned. Seymour Reed, executive vp, assumes presidency, and attorney Leonard I. Schreiber becomes vp and counsel. Mr. Reed has been with Official since it went into tv 10 years ago, and executive vp since 1956. Thomas B. McFadden, vp, general sales executive, NBC-TV, named vp and sales manager, and Max E. Buck, station manager of WRCA-TV New York since March 1959, named vp and eastern sales manager for network. William P. Mr. McFadden Mr. Buck Fairbanks, who on Jan. 20 was named director of sales for NBC Radio, elected vp. Mr. Fadden joined NBC in 1934, and was named general manager of WRCA-TV in 1948. He then was transferred to KRCA Los Angeles for two years and returned to New York to reorganize and head NBC Spot Sales. He was elected vp in 1954 and in 1956 became vp in charge of WRCA-AM-TV, and vp, NBCowned stations and spot sales. Mr. Buck was appointed director of merchandising, NBC owned stations, in 1953 and director of advertising-merchandising-promotion, WRCA-AM-TV. In March 1957, he became director of sales and marketing. John B. Poor and Hathaway Watson, staff vps at RKO General, appointed vp in charge of finance and investment, and vp in charge of broadcast operations, respectively. Mr. Poor has been vp of organization since Mr Poor Mr Watson 1948 and was president of MBS when it was owned by RKO. Mr. Watson joined RKO General in February 1959 after several years as a partner with management consulting firm of Booz, Allen & Hamilton, New York. He will supervise the activities of the entire RKO General broadcasting chain, which includes: WOR-AM-TV New York, WNACAM-TV Boston, the Yankee Network, CKLW-AM-TV Detroit-Windsor, Ont., KHJ-AM-TV Los Angeles, WHBQAM-TV Memphis, KFRC San Francisco and WGMS Washington, D.C. 10 BROADCASTING, February 8, 1960