Broadcasting Telecasting (Apr-Jun 1963)

GOVERNMENT REOPENING OF SYRACUSE CH. 9 ASKED 8 rivals question qualifications of Onondaga president Eight of the nine applicants for ch. 9 in Syracuse, N. Y., asked the FCC last week to reopen the hearing that led to an initial decision favoring Onondaga Broadcasting Inc. (Broadcasting, Feb. 11). The eight applicants were: Veterans Broadcasting Co.; Syracuse Tv Inc., W.R.G. Baker Radio & Tv Corp.; WAGE Inc.; Syracuse Civic Tv Assn.; Six Nations Tv Corp.; Salt City Broadcasting Corp., and Geo. P. Hollingbery. The joint petition questioned the character qualifications of Onondaga's president and 12% owner, Asher S. Markson, because of past business dealings. The petition said that Mr. Markson, as past president of Markson Bros. Inc., a furniture company, is involved in bankruptcy proceedings against that company. The petitioners said that the hearing examiner concluded that the bankruptcy case did not reflect on Mr. Markson, but that this decision was based on the findings of a lower court which have since been reversed by a U. S. Court of Appeals. The Court of Appeals concluded that Mr. Markson would have to show how his furniture firm lost nearly $2 million and because of this its sound financial position. The money had been loaned to Markson Bros, parent company, SonMark in Philadelphia, which at the time was in serious financial troubles. The petitioners questioned whether the case "involves serious question of Onondaga's reliability in that the facts indicate that Mr. Markson, its president, either participated in or assented to the milking of a corporation of which he was president by closing his eyes to the fact. . . ." The petitioners noted that the court put the burden of proof of how the $2 million was lost on Mr. Markson. The petitioners said that although the examiner found Mr. Markson innocent by association, one can't separate the officers of a corporation from the actions of that firm. Onondaga and the eight other applicants presently operate WNYS (TV) on ch. 9 in Syracuse on an interim basis pending a final decision by the FCC. Newspaper hearing to resume tomorrow The investigation into media ownership concentration resumes Tuesday (April 9) with the following Hearst Corp. officials: W. H. Kern, G. O. Markuson and Ed Becker. Also scheduled to be heard that day is Lee Loevinger, assistant attorney general in charge of the antitrust division. The hearing tomorrow is a continuation of the probe, directed by Rep. Emanuel Celler (D-N.Y.) and his antitrust subcommittee, into concentration of ownership in the news media field. Hearing began early in March, leading off with FCC Chairman Newton N. Minow (Broadcasting, March 18). Ideal Toy tv ads found deceptive Television advertising for Ideal Toy Co.'s "Robot Commando" and "Thumbelina" doll was deceptive, a Federal Trade Commission hearing examiner ruled last week. In an initial decision, the examiner recommended that the toy company be ordered to stop the alleged misrepresentations which tend to "unfairly exploit" children. The tv commercials were broadcast in September, October and November 1961, just before Christmas. During this period, the examiner pointed out, 60% of the entire year's toy sales to consumers are made. In the demonstrations it was made to appear that the Robot Commando responded to voice commands. This is false, the FTC examiner said. It is necessary to move a control lever to activate each movement. He also found that the tv advertisement did not indicate that batteries were needed for the device and must be purchased separately. The doll does indeed open its arms if they are properly put together, the examiner said, but the impression that it rolls over from its back to its side unaided is false. The examiner's decision is not a final order and may be reviewed by the commission. Wilson receives bureau's backing The FCC*s Broadcast Bureau joined L. B. Wilson Inc. last week in opposing a motion that Wilson's financial qualifications to build and operate a station be made an issue in the comparative hearing involving Miami's ch. 10. Both the bureau and the company said that since Wilson's WLBW-TV is already broadcasting on ch. 10, the company's ability to construct a station can't be questioned. Wilson also owns WCKY Cincinnati. The motion for enlarging the issues was made by two of Wilson's three competitors for the channel — South Florida Tv Corp. and Civic Tv Inc., both of whom must answer questions about their own financial qualifications. The fourth applicant is Miami Tv Corp. In their joint petition. South Florida and Civic asserted that Wilson's financial qualifications were placed in doubt by Wilson's latest balance sheet — for Sept. 30, 1962 — which showed a deficit of $45,427 and operating losses of $67,000 for the fiscal year ending Sept. 30. The commission's Broadcast Bureau, however, said the deficit includes a $340,000 bank loan which is renewable and which, therefore, need not be regarded as a current liability. Once the loan is eliminated, the bureau said, L. B. Wilson's liabilities shrink to $315,723, compared to assets of $610,295. The company's apparent loss in the fiscal year ending Sept. 30, the bureau said, results from inclusion of a $175,475 depreciation and amortization figure as an operating expense. In addition, the bureau said, L. B. Wilson exhibits indicate that in the three-month period ending Dec. 31, the company earned a net operating profit of $34,788. L. B. Wilson said the $67,000 loss For services rendered The House subcommittee probing ratings (see page 28) was chuckling last week over $348.83 bill for expenses submited by Allan V. Jay, president of Videodex Inc., who testified last month (Broadcasting, March 18, et seq). In a voucher the subcommittee believed was the first it's ever received charging for "services," Mr. Jay asked $150 for "time away from office as president," $23 for long distance telephone calls "necessitated by two-day delay in appearance," plus limousine and cab fare, meals and miscellaneous. He also sought reimbursement for costs he incurred while voluntarily supplying the subcommittee and the trade press with documentation intended to refute testimony. The charges: $10.50 for registered letter costs and $40 for photostats. It was learned Mr. Jay will be paid $27 witness fee ($9 for each of three days he was in Washington) and $35 for his plane fare — the limits set by law. 42 BROADCASTING, April 8, 1963