Broadcasting Telecasting (Oct-Dec 1962)

CLOSED CIRCUIT Commercial limit and Lee Lively discussion promised for FCC meeting Wednesday (Oct. 24) on proposal of Commissioner Robert E. Lee to adopt as FCC rule those portions of NAB codes setting maximums on time devoted to commercials (Broadcasting, Sept. 24). Item, passed over for several meetings, will be called up this week, and Commissioner Lee is preparing strong argument for its adoption. He has support of Chairman Minow in proposal to ask for industry opinions. Otherwise plan would be killed within agency, and no public announcement made. Tax facts spur sales Spurt in station sales is seen from now until Jan. 1 when new depreciation recapture provision goes into effect which will close tax benefits for sellers — particularly those holding major tv or radio properties where depreciation rates are substantial. Station brokers feel new tax law provision may make sales less attractive after several years. Key to sudden interest by prospective sellers is new law which requires that depreciation sum paid in year of sale be considered normal income, taxable at 52% rate, rather than as capital gains, at 25% rate, as now. 10-inch GE portable Decision not firm yet but General Electric plans introduction of transistorized portable tv set with 10-inch screen next spring. GE says its new interest is sparked by current rise in Japanese miniature tv portables in U. S. If GE goes ahead it will be first U. S. company to compete importantly with small screen imports. Thanks for nothing Crude form of payola has cropped up in one important market. Disc jockeys received individualized letters in envelopes containing $20 bills. Letters, signed with girl's name and giving return address, thanked d.j.s for playing certain record and added: "I'll drop in to see you soon." Record had never been played by many d.j.s who got letters. In cases that have come to light, payola didn't work. All six d.j.s at one station turned letters and money over to manager who sent the $120 back to sender by registered mail, with letter explaining acceptance would violate anti-payola law. Indications are this was local incident. Address of payola sender was in same town where known recipients worked. NAB search for site NAB's search for new Washington, D. C, location has narrowed down to one-two-three basis with decision expected to be announced within week. Grapevine has lot next door to present association headquarters at 1771 N St., N.W., as number one choice. This is lot purchased several years ago by National Presbyterian Church. Purchase would make possible utilization of this land together with that on which present NAB headquarters building now sits so that a large office structure could be erected. Second choice, now apparently out of running, was lot near new International Inn on Thomas Circle. Location, rather than steep increase in real estate values since Inn was built, turned several members of committee against this site. Third lot considered is west of Connecticut Avenue. Fm power fight Fm Broadcasters of Southern California, who feel FCC plan to reduce fm power ignores area's unique geographical makeup and its effect on signal propagation, plan to carry fight to preserve present power to courts, if necessary. Leading makers of fm receivers reportedly have pledged substantial donations which, with stations' own contributions, would provide war chest in excess of $250,000. Mississippi probe called off FCC plan to conduct on-the-spot investigation of Mississippi radio-tv stations' handling of integration riots was killed by Dept. of Justice. FCC Chairman Newton Minow had ordered tv investigators to Mississippi to determine if stations had complied with fairness doctrine in coverage and editorials of integration of university. Upon learning of plan, Deputy Attorney General Nicholas Katzenbach (chief of Justice delegation in Mississippi) asked investigation not be made on grounds it could cause more trouble. FCC men originally scheduled to leave Washington Oct. 12. Radio tool What authorities regard as important new radio sales tool was shown off under unusual circumstances last week and is slated to be given wide distribution shortly. It is study conducted by CBS Radio Spot Sales, and it undertakes to show that for advertisers there's much more to radio than so-called "traffic time." Specifically it shows that for long stretches, weekend radio delivers almost as much male audience as the highest (and usually most expensive) weekday traffic periods. Tried out on selected agencies and clients, study was so well received that Spot Sales officials took unusual step of letting their competitors in on it, too. Some 35 reps heard presentation and got kits at unpublicized session in New York last week. Ethnic outlet for L.A. Los Angeles can expect second "ethnic" television station soon. It will be now dark ch. 22 KBIC (TV) programmed primarily for Negro and other minority audiences — but not for Latin American sector which is already being served by ch. 34 KMEX-TV there. Assets of dormant uhf have been sold by John Poole, pioneer uhf proponent, to group of Nashville, Tenn., principals for $180,000, which is about what Mr. Poole spent on equipment. Station operated for short time, but never full-scale commercial. Nashville group, including H. C. Young Jr., Jerome Glaser and Martha W. Mills (flour), own WENO Madison (Nashville), Tenn.; WGUS North Augusta, S. C; WYAM Bessemer. Ala., and WDBM Statesville, N. C. Bernstein to Berlin Lester Bernstein, vp, corporate information at NBC, has made rush trip to West Berlin, presumably in connection with controversy stirred by network's filming of digging of escape tunnel under Berlin wall and its plans to go ahead with resulting telecast (see story page 62). NBC won't comment on Bernstein trip, but it's believed his mission is to reassure West Berlin city government that telecast of The Tunnel won't injure interests of city or individuals involved. Streibert to RFEF? Theodore C. Streibert is expected to be named president of Radio Free Europe Fund (Crusade for Freedom). Mr. Streibert left vp and general managership of WTCN-AM-TV Minneapolis-St. Paul last August to become consultant to International Div. of Time-Life Broadcasting. He was first director of U. S. Information Agency, 1953-57. Leslie R. Shope is RFEF president; Charles H. Kellstadt, former board chairman of Sears, Roebuck, continues as fund's board chairman. Mr. Streibert's appointment may follow his return from RFE trip to Munich (Broadcasting, Oct. 1). Published every Monday, 53rd issue (Yearbook Number) published in November, by Broadcasting Publications Inc., 1735 DeSales St., N. W., Washington 6, D. C. Second-class postage paid at Washington, D. C, and additional offices.