Broadcasting Telecasting (Oct-Dec 1962)

CLOSED CIRCUIT Payola revived Small spark of revived interest in payola now is evident at FCC, which has queried half-dozen stations whose personalities were mentioned in recent series on alleged under-the-table payments in New York newspaper. Stations have emphatically denied charges and some personalities involved have threatened to file libel suits against paper. FCC staff considering letter to all licensees with warnings against new forms of payola that have evolved since legislation banning practice. Letter would contain examples of practices which are not violation of law as well as those that are. Gannett waves WAVY Gannett Inc. will drop out of contract to purchase WAVY-AM-TV Portsmouth-Norfolk, Va., for $4.5 million under terms which expire Dec. 31. Gannett will simply let contract terminate and will make no move to exercise option for extension. After 18-month investigation, FCC ordered hearing on transfer directed toward charges against present licensee, Tidewater Teleradio Inc. (Broadcasting, Dec. 3). While Gannett demise will make transfer hearing moot, FCC staff had pushed for renewal hearing. WAVY-AM-TV's current licenses expire Oct. 1. 1963, and hearing on whether WAVY-TV fulfilled commitments made at time of original grant in 1957 is likely, FCC official said last week. AT&T may double dollars American Telephone & Telegraph Co. is reportedly ready to plunk down for network tv advertising next season more than twice what it's spending this season. But there's no guarantee it will find availabilities. Firm wants some 24 shows as compared to nine it now has as specials on NBCTV. Of total, four programs would be documentary types, remainder musical entertainment. NBC-TV reportedly has not yet decided on this hour series for next fall. AT&T's agency: N. W. Ayer, Philadelphia and New York. Staff letter inquiry Question of letters of inquiry on programming to tv stations by FCC staff is on agenda at FCC meeting today (Dec. 17). However, no final determination will be made as to whether staff has gone beyond delegated authority (Broadcasting, Dec. 3). Public disclosure of staff efforts to require tv stations to program live, sustaining discussion shows in prime time has caused uproar. Commission ers profess they did not know letters were being written until examples were published by Broadcasting and belief has grown stronger since then within agency, that letters go beyond power given staff in June 1961 to renew licenses. At that time, FCC specified certain programming "minimums." However, it now is claimed commissioners did not "delegate" authority to staff to threaten hearing before license renewal if changes were not made. Norstad for space post? Gen. Lauris Norstad, chief of NATO forces, is said to be one of those under consideration for job as executive head of new communications satellite corporation. Confirmation was lacking, but, according to one report, Philip L. Graham, president of Washington Post Co. and chairman of board of incorporators of space corporation, was to discuss matter with Gen. Norstad at latter's headquarters in Paris. Mr. Graham flew to Paris Friday. Gen. Norstad, who is due to retire from military life, began figuring in speculation after Sen. Wayne Morse (D-Ore.) warned incorporators not to name military man to top executive post. Senator said he had information that "high U. S. retired or about to be retired, military official" was being considered (At Deadline, Nov. 26). Dr. Frank Stanton, CBS Inc. president, was sounded out on job of heading satellite corporation several weeks ago, but his response was unequivocal "not interested." Engineer to succeed Cox? New chief of FCC's Broadcast Bureau, now that incumbent Kenneth Cox is moving to FCC, should be engineer, in opinion of some FCC members. Lawyer Cox will replace T. A. M. Craven, only engineer on FCC, marking first time since FCC was created in 1934 that no engineer will sit at top level. If attorney is named to head Broadcast Bureau, according to reasoning, FCC will have no one familiar with important technical and allocations considerations directly consulting with it on broadcasting. James E. Barr, assistant chief of Broadcast Bureau, is veteran FCC engineer who came up through ranks. It's presumed he will muster support for promotion but matter hasn't yet arisen in commission meetings and probably won't until after New Year's, since Commissioner-designate Cox isn't expected to assume his new job until about Feb. 1. Mr. Barr is Texan and Democrat. Code concern Television code officials are concerned over increasing use of comparative claims in drug advertising where sponsors are actually naming competition. This has occurred in several instances and network and NAB executives are seeking way to place damper on practice before it gets out of hand. Federal Trade Commission is watching to make sure nothing gets on air that would be unfair reflection on competitive products. Craven precedents T. A. M. Craven, only man ever to have served two separate tenures as member of FCC, also will become first ex-commissioner ever to serve as consultant to that agency. Precedent was set when White House disclosed last week he will become consultant on space communications immediately upon his retirement — slated for his 70th birthday Jan. 31 — as commissioner. Commissioner Craven (see page 58) has been devoting about 75% of his time to space matters during past two years, and under consultancy will give problem 100% of his time. Mr. Craven will serve under contract with FCC until June 30, when his full term would have expired. Thereafter he is expected to go on per diem as expert, which will include membership on U. S. delegation at Geneva conference beginning Oct. 6 called to evolve international allocations for space communications. He had headed U. S. delegation at first conference, which covered all international allocations, in 1959. Fm allocations There is possibility fm table of allocations will be released by FCC for comments this week with subject on agenda for meeting today (Monday). Under new fm rules adopted in September, FCC announced it would adopt nationwide table of allocations and has met stiff opposition from consulting engineers (Closed Circuit, Dec. 10). However, FCC has gone ahead with plans for assignments by cities as in tv and proposed table will be up tomorrow. 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