Broadcasting Telecasting (Jan-Mar 1960)

PUBLIC OFFER Metropolitan registers debentures with SEC Metropolitan Broadcasting Corp. has filed with the Securities & Exchange Commission to register $6 million of convertible subordinated debentures due 1975. The issue will be offered for public sale with interest, public offering price and underwriting terms to be supplied by amendment. Metropolitan owns and operates WNEW-AM-TV New York, WTTG (TV) Washington, WHK-AM-FM Cleveland, WIP-AM-FM Philadelphia, KOVR (TV) Stockton-Sacramento, Calif., KTVH (TV) Peoria, 111. and (pending FCC approval) WRUL New York (World Wide Broadcasting) and WTVP (TV) Decatur, 111. It also owns the Foster & Kleister Div. of W.R. Grace & Co., outdoor advertising company. Net proceeds of the debenture sale to the extent of $5 million will be used to repay a bank loan incurred for the corporation's recent and pending acquisitions. It gave Metropolitan's income for the year ended Jan. 2, 1960, as $13,855,314 with net income of $1,500,025 or 97 cents per share of outstanding stock. President and board chairman is John W. Kluge, (salary 565,154 annually); Bennet H. Korn, executive vice president for tv and general manager of WNEW-TV, ($70,000); John V.B. Sullivan, vice president and general manager of WNEW, ($68,653); Richard Buckley, former president and consultant, ($62,653), and Bernard Goodwin, former president and consultant, ($77,884). Employment agreements were listed with key officers including date of agreement, date of termination and annual compensation: Mr. Kluge (11/16/60— 12/31/63), $100,000; Mr. Korn (10/6/58 — 9/30/61), $70,000; Harvey L. Glascock, vice president and general manager of WIP (3/1/60—1/31/64), $40,000; John E. McArdle, vice president and general manager of WTTG (3/1/58—6/3/62), $25,000 plus percentage of sales, which was $6,648 in 1959; John V.B. Sullivan (10/22/58—9/30/61), $70,000; Benedict Gimble, vice president and consultant (2/8/60—1/3/70), $35,000. Profit and loss statements in the registration statement for the year ended Dec. 31, 1959: KOVR had income of $1,485,575 and a net loss of $64,767; WIP's income was $1,526,556 with a net loss of $86,506; Prairie Tv and World Wide Broadcasting had income during the year of $856,892 and net loss of $11,425. Keystone citation • Clair R. McCollough. Steinman Stations, was cited by Gov. David L. Lawrence, of Pennsylvania, "for the honor you have brought to your native state." CBS does about face on canned laughter CBS-TV has had second thoughts about canned laughter, or more particularly, the on-air identification of it. The network last week rescinded its earlier instructions that all cases of "technically augmented or supplied" audience reaction must be labeled as such at the close of any program using them . In issuing the turnabout regulation, Joseph H. Ream, director of practices for the network, pointed to a loophole in the initial policy (issued Dec. 14) to change its dictates as "experience and continued study indicate." He also said they were being modified in light of "general reactions" to the procedures. General reaction to the canned laughter element was negative and vocal, particularly on the part of such network Mr. McCollough will receive the NAB 1960 Distinguished Service Award after delivering the keynote speech at the formal opening of the NAB convention April 4 in Chicago. The citation was presented by Gov. Lawrence (1.) in a ceremony at the Lancaster headquarters of the Steinman Stations. Gov. Lawrence recalled the first commercial broadcast originated in Pennsylvania in 1920. "During the intervening years you have aided the growth of broadcasting and, through your constant effort, have assured its responsiveness to public need and community service," he said. "As a television pioneer, you have built the strong foundation of education, information and entertainment on which this vital young medium will flourish and continue to grow." stars as Jack Benny and Red Skelton. Also dropped: the announcement that "certain portions of this recorded program were pre-recorded" and the requirement that the word "live" must be deleted from a program that orginated live but has been recorded for repeat broadcasts. Now the word can stay, but the show itself must still be identified as pre-recorded. NAFI Corp. to make public stock offer NAFI Corp., licensee of KCOP (TV) Los Angeles, KPTV (TV) Portland, Ore., and (pending FCC approval) KXYZ Houston, has filed a registration statement with the Securities & Exchange Commission offering 200,000 shares of capital stock to the public. The public offering price and underwriting terms will be supplied by R. C. CRISLER & CO., INC. Business Brokers Specializing in Television and Radio Stations 4 Offices To Better Serve You . . . CINCINNATI O Paul E Wagner, Fifth Third Bank Bldg., ' ' DUnbar 1-7775 WEST COAST Lincoln Dellar & Co., Santa Barbara, Calif., Wtil tUASI woodland 9-0770 OMAHA, NEB. Paul R. Fry, P.O. Box 1733 (Benson), TErraee 9455 NEW YORK 41 E. 42nd St., MUrrey Hill 7-8437 BROADCASTING, March 28, 1960 133