Broadcasting Telecasting (Oct-Dec 1961)

ONE SHOT TAKES ALL THREE LANSING JACKSON BATTLE CREEK A solid play in Michigan's Golden Triangle stakes you to a lively market— Lansing, Jackson and Battle Creek! WILX-TV cracks all three with a city-grade signal and scores big in a lush outstate area. CHANNEL:!^ Operating with a 1,008 foot tower at 316,000 watts. Let this one outlet give you all three markets. Represented by VENARD, RINTOUL & McCONNEL, INC. THE GOLDEN TRIANGLE STATION 13 WNTA-TV SALE OFF AGAIN On-and-off transaction postponed again as seller fails to produce clear title The sale of WNTA-TV New York to an educational television group, which was scheduled for last Wednesday (Dec. 13), was postponed when National Telefilm Assoc. could not deliver "clear title" to the station. The postponement was the second in five days and prompted a threat by Educational Television for the Metropolitan Area Inc. to file suit against NTA for non-compliance of the contract. No date was set for another closing. ETMA issued a statement reporting that it had tendered checks totaling $6.2 million to Henry C. Shays, counsel for NTA, at a meeting in an office of the First National City Bank of New York. Mr. Shays declined to accept the checks, ETMA said, because he was "unable to deliver clear title to the station." Though ETMA and NTA officials refused to give details of the reasons for the lack of a clear title, it was reported that NTA had not been able to complete financial arrangements with creditors of the station. Joseph S. Iseman, counsel for ETMA, emphasized that in the sales contract there are stipulations that the seller must produce evidence that certain debts and obligations are met before the transfer is completed. Lawsuit Threat ■ Howard T. Sheperd, ETMA president, raised the possibility of a suit against NTA in a statement issued after the meeting. He observed that ETMA had complied with its contract obligations, and added: "As NTA was unable to perform the contract in accordance with its terms, ETMA officials have been instructed to take all possible legal steps to obtain the station now on a free-and-clear basis. "The attorneys are now preparing a lawsuit for that relief. We hope, however, that NTA can eliminate the need for litigation by promptly placing itself in a position to convey the station to ETMA." ETMA officials said they were prepared to pay the $6.2 million, even though on Tuesday (Dec. 12), two of the three major networks — ABC and NBC — said they intended to make contributions of $250,000 each to the ETMA project. Originally networks had been expected to make payments of $500,000 each, but on Tuesday, ABC announced it would contribute $250,000, "as requested by ETMA." NBC, which had planned to give $500,000, announced it would contribute $250, 58 (THE MEDIA) 000 also. CBS, which already had contributed $500,000, noted its donation had a stipulation that "at least one" other network had to match this amount. NBC later said it was prepared to contribute another $250,000 if the $500,000 figure is matched by each of the two other networks, as originally projected. It could not be learned if WNTA-TV planned to remain on the air beyond last Friday (Dec. 15). Officials earlier had said the cut-off date would be Friday but following the collapse of the sale, they declined to reveal future plans. The sales contract, it was learned late in the week, contains a clause giving either party 30 days to clear up any default. This was taken to mean that the transaction will be suspended in animation for that time while NTA tries to clear the obstacles to a clear title. Courts To Rescue ■ The latest difficulty in the sale of the ch. 13 outlet to the educational group is only the latest of a series that have plagued the transaction. The first few were due to New Jersey's Gov. Robert B. Meyner. Gov. Meyner attacked the sale of the station to the educators on the ground that New Jersey was losing its only vhf tv outlet. Technically WNTA-TV is assigned to Newark, N. J. After the FCC denied his protests, the Governor carried the fight to the U. S. Appeals Court which at first granted him a stay, but later reversed this decision. Gov. Meyner then asked Chief Justice Earl Warren to re-instate the stay. At this point, the deadline date for the contract arrived. NTA officially informed ETMA it was terminating the sale, giving the educators the required five days notice. FCC Chairman Newton N. Minow, who had been active behind the scenes in encouraging the sale — all with the approval of the majority of the commission— saw his dream of an educational vhf outlet in New York going up in litigational smoke. There seemed no chance to save the so-carefully wrought arrangement. Then, like a true tv cliff-hanger, the kindly, old newspaper editor intervened to save the situation. This time it was Norman Cousins, editor of the literary weekly, Saturday Review. Mr. Cousins arranged a meeting between ETMA officials and Gov. Meyner. At 9:30 p.m., on Friday, Dec. 1, Tedson Meyers, administrative assist BROADCASTING, December 18, 1961