Sponsor (Oct-Dec 1960)

What's happening in U. S. Government that affects sponsors, agencies, stations WASHINGTON WEEK 19 DECEMBER I960 Copyright I960 8P0NS0R PUBLICATIONS INC. The FCC has now taken two more steps in the direction of toughening up on regulation : and the end has not yet come. The Commission pounced almost immediately on a multiple owner with license renewals of 15 months, very quickly after adoption of the rule permitting license renewals for less than three years. Then in quick succession the Commissioners were (a) once again unable to come to complete agreement on license application forms, and (b) acted to cut down on the large volume of station sales. Barring death, bankruptcy or some other such emergency, stations could not be sold before the holders owned them for three years under a new rule proposed by the FCC. The commissioners, Hyde and Craven dissenting, said they would listen to industry arguments until 16 January, but said they would not make their final decision solely on pro and con arguments received. The commission said that during the past three years, 555 applications for changes in ownership — some involving more than one station — raised the question of whether there is "trafficking in broadcast interests." In 53% of the cases, the FCC added, the stations had been held for less than three years, or one full license period. First short-term license renewals went to two radio stations and one tv outlet wholly owned by Richard Eaton and to two radio stations almost wholly owned by him. The FCC wasn't satisfied with operating standards, Eaton promised to exercise personal supervision in the future, and the FCC decided that it should take another look in a year and renewed the licenses for 15 months. The action was taken on a 4-3 vote, with Hyde, Craven and King dissenting. The exact form of the section of the license applications forms which deals with programing is still much up in the air: however, disagreement revolves more around form than around substance. In addition, it is also true that action could be taken in short order, except that the Commission would like to secure a unanimous or nearly unanimous vote. It might very well be that final action will now be delayed until "recess commissioner" King is replaced by a Kennedy appointee. The fact that King will be replaced assumes new importance. King replaced former chairman John C. Doerfer, and his voting record indicates he is an even stronger believer in industry self-regulation than Doerfer was. In all recent decisions tightening the regulatory net around broadcasting, King has voted along with Craven on the anti side. Sometimes Hyde was with them, but even on those occasions Chairman Ford, Cross, Bartley and Lee managed to make it 4-3 in favor of stronger regulation. Nobody doubts that the new commissioner to be appointed by president-elect Kennedy will make those decisions 5-2 and occasionally 6-1. Also, with King replaced, stronger regulatory policies will still carry, even if one of the four deserts on any specific issue. Rumors about the new Commissioner to take King's place float gayly around Washington, not stopped or even slowed down by the fact that president-elect Kennedy hasn't even gotten around to considering the post, himself. Strangely, there are fewer rumors about FTC, where Kennedy will have two posts to fill. Mills and Kintner are both serving on a recess basis. SPONSOR • 19 DECEMBER 1960 59