Broadcasting Telecasting (Jan-Mar 1960)

KJEO-TV— ABC for Fresno, California's $600,000,000 market — stepped up its metropolitan Nielsen rating a full 10% in its December 1959 survey over the corresponding 1958 period. 32% of the audience 6 to 9 p.m. — 33% of the audience 9 p.m. to midnight. In contrast, one of the other two stations in the market showed a static position with 1958, the other a decline. Your HR representative will help you get your share of the stepping out and stepping up TV buy for 1 960— KJ EO-TV, Channel 47, Fresno. J. E. O'Neill r President Joe Drilling — Vice President and General Manager W.O. Edholm— Commercial Manager See your H-R representative H'R^^ grams: Any employe of a radio station for which a license is required by any law of the U.S., who broadcasts, or knowingly permits or causes to be broadcast, over such station any matter for which money, or other valuable consideration is directly or indirectly paid or promised to, or charged or accepted by, any such employe, from any person, without making at the time such matter is so broadcast an appropriate announcement that such matter is paid for or furnished, as the case may be, by such person, shall be fined not more than $5,000 or imprisoned not more than one year, or both." Financial Disclosure • The Attorney General also recommended that the FCC adopt rules requiring licensees and their employes to disclose financial interests held in companies which could benefit through exploitation on the air. Mr. FitzGerald said that there is some question whether the FCC has such authority (pointing out that instances cited by Justice were granted through specific acts of Congress) and that he was not prepared to offer an opinion at this time. Even if the authority does exist, he said, an additional question is raised as to whether the results would be sufficient to justify the increased administrative burden. The Attorney General's further recommendation that the FCC "adopt a program of more intensive scrutiny of licensee's past performances in connection with renewals" is a subject more appropriately within the province of the Broadcast Bureau, Mr. FitzGerald told the commissioners. The General Counsel said that a Justice recommendation for sanctions short of revocation could be achieved by inserting the words "suspend" or "suspension" in appropriate places in Sec. 312 of the Communications Act. However, he pointed out, if such an amendment becomes law the FCC would be faced with the serious effect of depriving the public of service during said suspension period. Suspension Alternative • In order to maintain such broadcast service during the period the licensee's operations are under an official cloud, Mr. FitzGerald suggested an amendment to the Communications Act providing for injunctive relief from the courts to enjoin the undesirable practice. This is similar to current powers used effectively by the FTC. The proposed amendment, adding a new Sec. 508 to the Act: "Sec. 508. When the Commission has reason to believe: (a) that any person or station licensee is engaged in or is about to engage in any willful violation or failure to observe any of the provisions of this Act or any rule or regulation of the Commission authorized by this Act or by a treaty ratified by the U.S., or for willful or repeated failure to operate substantially as set forth in the licensee's instrument of authorization, and " (b) that the enjoining thereof pending the invoking of the provision of Sec. 312 of this Act and until a show cause order shall have been dismissed by the Commission or set aside by the court on review, or the order of the Commission to cease and desist made thereon has become final, would be in the public interest, convenience, or necessity, the Commission may, by any of the attorneys designated by it for such purpose, bring suit in a district court of the U.S. or in the U.S. court of any territory to enjoin such offense or violation. Upon proper showing a temporary injunction or restraining order shall be granted without bond. Any such suit shall be brought in the district in which such person or licensee resides or transacts business." Network Regulation • Mr. FitzGerald, in commenting on Justice's recommendation that networks be licensed, pointed out that the current FCC hearings en banc and the longstanding network program tie-in inquiry have a direct bearing. "I suggest, therefore, that staff attorneys be assigned at once to summarizing on a priority basis so much of the [Chief Hearing Examiner James] Cunningham tie-in inquiry has been completed and also the work of summarizing the en banc programming record." Mr. FitzGerald recommended. He "said the time for filing briefs regarding this matter should be "limited severely" to expedite Commission action. "I also suggest that Examiner Cunningham be directed to convene promptly the last phase of the tie-in hearings to be held in California so that the record in such proceeding may be certified to the Commission and the summarization thereof completed as quickly as possible," Mr. FitzGerald stressed. After such actions, he said, the FCC should be able to make such recommendations for network regulation as it deems necessary or appropriate. Office of Enforcement • "In order to avoid further . . . criticism in connection with the payola problem and other matters which may arise in the future, I strongly recommend that the Commission adopt the suggestion ... to immediately establish an office of enforcement," Mr. FitzGerald said. (FCC Chairman John C. Doerfer first made such a proposal at a recent FCC meeting to discuss the Commission's workload, the memo disclosed.) He said such an office should be answerable directly to the Commission and completely independent of other in 30 (PAYOLA & QUIZ LEGISLATION) BROADCASTING, February 8, 1960