Broadcasting Telecasting (Oct-Dec 1961)

Record Details:

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subcommittee member who formerly served on the House Commerce Committee and its Communications Subcommittee (Broadcasting, Aug. 7). Rep. Avery said that since no other congressional committee was looking into the program-form controversy, the Small Business Subcommittee should provide a forum for broadcasters interested in presenting their views directly to Congress. A subcommittee source said the twoday hearing would be just the beginning. Everyone with a complaint will be invited to present it at that time, he said. Then the subcommittee will decide on the direction it wants to go. Subsequent hearings may be held outside Washington, he said. Deprived of Lifeblood ■ In announcing the hearing, Rep. Alford described advertising as "the lifeblood of business." Therefore, he said, it's of "paramount importance" that small businessmen have access to radio and television advertising. The importance of television, he added, is evident, since 82% of all U. S. homes have at least one tv set. But the subcommittee, he said, has received complaints that radio and television stations and networks sell prime time only to advertisers who use either an entire network or a major portion of it, and thus exclude small firms. If the subcommittee finds the allegations true, Rep. Alford said, it will "make appropriate recommendations." The House Small Business Committee, which is solely an investigative unit, does not have authority to initiate legislation. But the report it makes to the House could be referred to the House Commerce Committee, which has jurisdiction in broadcasting matters. Road block to sale of WEBR-AM-FM removed Stanlin Inc.'s purchase of WAMVAM-FM (now WEBR-AM-FM) East St. Louis, 111., received approval of the FCC last week for the second time. The commission withdrew a July 3 order (Broadcasting, July 10) which set the $350,000 purchase of WAMV from Hess-Hawkins Inc. for hearing. The commission originally had approved the transfer June 1 without a hearing. However, following protests by the East St. Louis Chamber of Commerce, the mayor and other civic leaders, Stanlin's purchase of WAMV was set for hearing. Protests were made on the ground the new owners planned to discard the stations' good-music format in favor of Negro programming. In its final order last week, the FCC said that the objecting parties did not respond to requests for further information and that it had been shown that two other stations — KADI and WEW both St. Louis — provide good-music programming for the area. Stanlin principals Lawrence R. Picus and Simpson R. Walker Jr., also own WOBS Jacksonville, Fla. JFK sets committee on campaign costs The high cost of presidential campaining — and that includes extensive use of radio and television — poses a problem that moved President John F. Kennedy into action last week. A nine-member Commission on Campaign Costs to study election financing and to come up with recommendations for better ways of financing the essential expenditures required of major party nominees for President and Vice President was named Oct. 4 by the President. Candidates must use such services as "staff assistance, transportation and communication facilities, radio and television time," the President said. "Under present circumstances these items are enormously expensive, and thus the ability of candidates to carry on campaigns is, in large measure, governed by their success as fund raisers." This raised the problem of how to finance all these expenditures. Traditionally the money comes from private funds provided by a relatively small number of contributors, President Kennedy said. He added, "It is not healthy for the democratic process — or for ethical standards in our government — to keep our national candidates in this condition of dependence. I have long thought that we must either provide a federal share in campaign costs, or reduce the cost of campaign services, or both. Fresh Look ■ "My commission will take a fresh look at this problem and will make such recommendations as it deems appropriate, looking toward proposals for the next session of Congress." Dean Alexander Heard, of the U. of North Carolina graduate school, was named chairman. He recently wrote a book titled Campaign Costs. Other members include Paul Porter, of the law firm of Arnold, Porter & Fortas and FCC chairman in the mid408. Other members of the study committee are: Prof. V. O. Key, Harvard; Dan Kimball, president of Aerojet-General Corp.; Malcolm Moos, former administrative assistant in the Eisenhower administration and political science professor at Johns Hopkins U.; Neil Staebler, Democratic committeeman from Michigan; Walter Thayer, president, New York Herald-Tribune; John Vorys, Columbus, Ohio, attorney; James Worthy, president, Republican Citizens of Illinois. MCA court decision delayed until 1962 Opening statements were made before a federal court in Los Angeles last week in the FCC's fight to obtain records and testimony from MCA Inc. but procedural steps have delayed a final decision until 1962. Judge Leon R. Yankwich of the U. S. District Court ordered MCA to file a reply to the government suit by Nov. 17 with further replies running until Jan. 10, 1962. Through a Justice Dept. suit, the commission is seeking information on MCA's tv programming operations as part of the agency's overall network investigation (Broadcasting. Oct. 2). MCA has refused to provide the material subpoenaed and to answer questions unless the information is held confidential. The records in question were delivered to the court last week pending a decision by Judge Yankwich. The Los Angeles proceeding is one segment of the investigation which continued with hearings in New York last week (see page 29). With a court decision delayed, the FCC will be unable to issue a final report in its four-yearold investigation by the target date of Jan. 1, 1962, announced by Chairman Newton Minow. Commerce advisors plan ad self-regulation study Self-regulation in the advertising industry will be described in a publication to be put out by the Dept. of Commerce, according to the department's advertising advisory committee. Cost of preparing the information will be born by the committee, which met Sept. 26 with department officials. Eldridge Peterson, of Pace College, New York, and former editor of Printers' Ink, will conduct the study of self-regulation. It will give information on what advertisers are doing to create and live up to standards set for themselves as well as group-self-regulatory efforts, besides describing trade codes and practices. The committee recommended ways to improve department publications and displays. Next meeting will be held Nov. 30 in Washington. William Ruder, designee assistant secretary of commerce, said a businessman's information center will be set up in the lobby of the department's building. It will advise visitors on governmental agencies and make appointments for them. Frederic R. Gamble, president, American Assn. of Advertising Agencies, is chairman of the advertising committee. 66 (GOVERNMENT) BROADCASTING, October 9, 1961