Broadcasting Telecasting (Jan-Mar 1960)

BROADCASTING THE BUSINESSWEEK LY OF TELEVISION AND RADIO February 8, 1960 Vol. 58 No. 6 MAKE RIGGING, PAYOLA CRIMES? FCC drafts proposed law to do that and give it new sanctions The FCC last week drafted legislative proposals to make crimes of quiz rigging and payola and to give the Commission the power to seek court injunctions against licensees who violate its rules. The Commission was to consider the legislative recommendations as well as proposed revisions of its own rules at a special meeting last Friday. It had before it: • A summary of Attorney General William Roger's report to the President on FCC authority (Broadcasting, Jan. 11) and recommended legislation and Commission rules changes covering quiz shows, deceptive practices, payola, and sanctions short of revocation. It was prepared by General Counsel John FitzGerald. • Alternate proposals for rulemaking (a brief rule and a more compre hensive proposal following recommendations of the Attorney General), submitted by Harold Cowgill, chief of the Broadcast Bureau. • A proposed rule prohibiting fraudulent quiz programs, submitted by Comr. Frederick W. Ford. The special meeting came a day after a Commission announcement Thursday that it was drafting "new legislation and rules to curb quiz and payola practices," (For action of the meeting see At Deadline.) Mr. FitzGerald's memorandum, dated Feb. 1, covered much more ground than the other proposals before the FCC. He noted that the Attorney General stated the FCC has authority under existing law to eradicate deceptive and corrupt practices in broadcasting but has not effectively used it. General Counsel's Proposal • The Commission's top attorney submitted the following proposed rule to take care of deceptions for the FCC's consideration: "Licensee Responsibility: "(a) An application for a construction permit, license, renewal of license, or any other authorization for the operation of a broadcast station will not be granted where the licensee proposes to follow or continue to follow any policy or practice the effect of which is to delegate to any other person or persons the licensee's responsibility to maintain full and complete control in the public interest of the program broadcast over such a station. "(b) The determination whether a particular policy or practice comes within the provisions of paragraph (a) of this section will depend on the fact of each case. The Commission will, in HARRIS OPENS PAYOLA HEARINGS TODAY A cast of nearly 20 witnesses is under subpoena for the curtainraising at 10 a.m. today (Feb. 8) of the first phase of the House Legislative Oversight Subcommittee's payola hearings. The witnesses include disc jockeys broadcast station personnel, and representatives of record distributors and manufacturers. Their testimony will cover separate payola situations in Cleveland and Boston. Testimony by ABC-TV star Dick Clark and his former producer, Anthony Mammarella, will be saved for a later hearing, it was learned last week, for two reasons: (1) Mr. Clark is the biggest "name" attraction scheduled to testify so far and if he were brought in first, subsequent hearings featuring lesser names as witnesses would be anticlimatic; (2) the Clark-Mammarella case is somewhat more "complicated" than other payola situations the subcommittee has explored and more staff work is needed to prepare it for presentation. Meanwhile, the subcommittee yesterday (Sunday) released its re port on its tv quiz hearings held last fall and recommendations for legislation, three Republican members filing "separate views" (see At Deadline). Testimony, at the House Caucus room, will run through Thursday for the initial phase and will include Joe Finan, Wesley Hopkins and Charles Young, the first two former disc jockeys and the last former record librarian at KYW Cleveland. All were fired for pay ola activities. The financial records of the Main Line Cleveland Record Distributing Co., Cleveland, were subpoenaed from James Shipley, vice president. Main Line has a franchise for RCA Victor records in a 17county area. Some 15 to 20 other witnesses have been subpoenaed from Boston, but their names were not disclosed. If the hearing phase isn't concluded by Thursday, present plans are to continue next week. Familiar scene • Rep. Oren Harris (1), chairman of Oversight committee, is shown facing cameramen at tv quiz hearings last fall. The scene will be repeated today when his committee begins taking testimony about payola. BROADCASTING, February 8, I960 27