Broadcasting Telecasting (Jul-Sep 1963)

Late news breaks on this page and on page 10 AT Complete coverage of week begins on page 23 f\ | FCC RULES BY RENEWAL: OREN HARRIS Tells editorializing hearing he is 'disturbed' at trend Broadcasters are losing their freedoms to an FCC position that its interpretation of public interest considerations supersedes all other provisions of Communications Act and Constitution, Representative Oren Harris (D-Ark.) warned Friday (July 19). Congressman Harris, chairman of House Commerce Committee which "'regulates" FCC regulation of radioTV, said he is "disturbed" because FCC is regulating programs through license renewal proceedings. "There is the real difficult problem that faces the broadcast industry today," he said. "If we keep going in that trend, the time is going to come when we might as well not have these saving [no censorship] clauses" in the law, Representative Harris said. His comments were directed at Theodore Shaker, president of ABC-owned TV stations, at Friday's hearing on editorializing by stations (see earlier story, page 36). Mr. Shaker had agreed with Representative Walter E. Rogers (D-Tex.) that Section 326 of act prohibiting censorship gives public, as well as licensees, right to use airwaves. Representative Harris wanted to know if Mr. Shaker was saying all people in U.S. have inherent right to use frequency. "I see Section 326 as meaning the FCC shall not tell the licensee what to program," he said. "I don't see how you can get anything else out of it." Mr. Shaker agreed with congressman's interpretation, also. ABC witness replied "Yes, sir" to contention of Representative Rogers that spectrum is part of public domain. He was accompanied to stand by Harold Neal, president of ABC-owned radio stations. Rule or Statute ■ ABC witnesses said Congress should not pass statute dealing with editorials as current FCC rules are adequate. Congress should tell FCC what rules it (Congress) wants changed and agency will act accordingly, ABC witness said. ABC networks do not editorialize but five owned TV and six radio stations do, Mr. Shaker said. "Our policy was formulated upon the belief that the free expression of opinion and thorough discussion of public issues are vital to the exercise of our responsibility as a licensee of the FCC," he said. ABC's stations make every effort to present opposing viewpoints on controversial matters, he said, and stations are prohibited from endorsing candidates for political office. Decisions on subject matter of editorials rest with individual stations and are not controlled by network, Mr. Shaker said. Following Friday testimony, hearing adjourned with eye toward National Broadcast Editorial conference this week in Athens, Ga. (see page 42). Integration of crews or boycott, sit-ins Threat of boycott of sponsor's product, sit-in and other demonstrations was voiced to Hollywood film companies making program series and commercials for television unless technical crews are integrated. This was edict of NAACP to film industry and union leaders at meeting Thursday (see page 56), revealed at news conference Friday (July 19) by Herbert Hill, labor secretary of Negro organization. Target date for integration of production crews begins with resumption of filming of NBC-TV's Hazel series, sponsored by Ford Motor Co. Hazel series was chosen because it is one of first regular series to resume filming and, according to Mr. Hill, because Ford is friendly to Negro. Already completed, according to Screen Gems which is producing series, are 13 episodes of Hazel for 1963-64 season. Additional filming is expected to resume in late September or early October, it was said. Intertel would convert sets if it had UHF CP's Chicago-based television marketing consulting firm says it's ready, under certain conditions, to invest up to $2.5 million in TV set-conversion in event it secures UHF construction permits in maximum of five markets. Intertel Inc., which is also TV program producer and syndicator, disclosed plan in opposing petitions for FCC reconsideration of decision to deny short-spaced VHF drop-ins in seven markets (see story page 52). Intertel said Friday (July 19) it is interested in UHF ownership in at least one and possibly as many as five of markets involved in rulemaking. Company says it would invest up to $500,000 in each market in which it secures UHF permit to convert sets. Cost would be passed on to set owners, but it would be "nominal," according to Intertel. Company said, however, it would be interested only in markets where there are no more than two VHF stations, where third VHF cannot be allocated, and where UHF station has chance of affiliation with network. Intertel is headed by William DuBois, who founded company last year. He was formerly vice president of Independent Television Corp., which he helped establish, and served with Ziv TV and ABC-TV in Chicago. In another opposition to petitions for reconsideration, Association for Competitive Television said commission kept faith with public when it denied drop-ins. ACT, which represents UHF stations, contended that, in proposing all-channel legislation, FCC said it was attempting to promote UHF as means of providing more channels for local service. ACT said commission shouldn't depart from this policy. Instead, association said, commission should demonstrate confidence in ability of UHF to provide service. Jerrold receptor claims cleared by FTC Jerrold Electronics Corp., Philadelphia, was cleared Friday (July 19) of Federal Trade Commission charges that it misrepresented nature and effectiveness of company's TV receptors. FTC dismissed, for lack of proof, 1961 charges that Jerrold made false advertising claims for TV receptors. FTC had charged Jerrold ads for TV receptors falsely claimed it is antenna; adjustable and has tuning device; superior to rabbit ears, indoor antennas and out-performs roof top antennas and utilizes entire wiring system of home or apartment as antenna. Three chains report first half profits Financial reports for first half of 1963 announced Friday (July 19): Storer Broadcasting Co. 1963 1962 Earned per share* $ 1.28 $ 1.48 Net income after taxes** 2,931,654.00 3,618,366.00 * Based on 2,289,986 shares of common and Class B outstanding as of June 30, compared to 2,438,181 in 1962. ** After deduction for loss of $256,247 net after taxes on sale of Miami Beach Sun in May 1963. Capital Cities Broadcasting Corp. 1963 1962 Earned per share $ 0.80 $ 0.52 Net broadcasting income 8,281,528.00 7,314,395.00 more AT DEADLINE page 10 BROADCASTING, July 22, 1963