Television digest with electronics reports (Jan-Dec 1954)

2 probe at next Committee meeting, but there's plenty of behind-the-scenes lobbying going on, and it's conceivable his plan may be dropped, or at least watered down. It's possible that Jones' name won't come up at Committee meeting — because of openly expressed industry fears that hearing will be "vindictive" and "punitive." It's pointed out that Jones has long record of needling networks ; only last week, arguing before FCC in behalf of group of AM stations, he referred to CBS chairman William Paley and NBC chairman David Sarnoff as "sultans of squat" who are becoming "maharajahs" by "sitting on their frequencies." * * * * Potter communications subcommittee took 2 formal actions on vhf-uhf problems at its July 20 meeting: (1) Agreed to create an ad hoc advisory committee for further fact-finding study, particularly on reallocation proposals made at hearing. (2) Urged full Commerce Committee to endorse subcommittee's stand in favor of exempting uhf-equipped TV sets from 10% manufacturers' excise tax. Ad hoc committee probably will have 5 members, none of them directly connected with private TV-radio interests or with FCC. Subcommittee hopes to appoint them before Congress adjourns, so they can turn in final report before next Congress. Group will be patterned after old Condon Committee, set up in 1949 by Sen. Johnson (D-Colo.), then chairman of Commerce Committee, to study color TV. It took more than year to complete its study (Vol. 5:25 & 6:28). Headed by the then director of National Bureau of Standards Dr. Edward U. Condon, it included Dr. Newbern Smith of NBS ; consulting engineer Stuart L. Bailey, onetime IRE president ; Dr. Wm. L. Everitt, head of U of Illinois electrical engineering dept. ; Donald G. Fink, then editor of Electronics Magazine. The subcommittee hopes to choose group of similar calibre, is now sifting through mass of suggested names. Excise tax proposal probably will be endorsed at next meeting of the full Commerce Committee — but this endorsement will only be a recommendation to Finance Committee, which has charge of tax legislation. Tax exemption will be proposed by Sen. Johnson as amendment to estate tax bill (HR-6440) when it comes up before the Finance Committee, possibly next week. Chances of approval are considered good. Subcommittee is going ahead with plans to hold conference of all TV receiver manufacturers on ways to increase output of uhf-equipped sets, aiming at agreement to turn out no more vhf-only sets. Sen. Potter has already written Justice Dept, for assurance that such a conference would be in accord with anti-trust laws. No formal stand on multiple ownership of TV stations has been announced by subcommittee, but Chairman Potter (R-Mich. ) is known to favor FCC's proposed rule to permit single entity to hold interests in 5 vhf & 2 uhf stations — and this proposal seems certain to get subcommittee endorsement. Some stones remain unturned in subcommittee's uhf actions, and at next meetings it's expected to: (1) bypass all proposals for network regulation, due to the pendancy of Bricker Bill hearings ; (2) make recommendations to FCC on such matters as boosters & satellites, directional antennas, multiple ownership; (.3) appoint ad hoc committee and spell out ground rules for its inquiry; (4) take action looking toward set makers' conference if Justice Dept, grants clearance. FCC is completing summary of its views on uhf problems, as requested by the subcommittee for inclusion in hearing record. Majority statement has been drafted, is now being circulated for individual commissioners' corrections and word changes. It favors removal of excise tax on uhf-equipped sets, adoption of FCC 5-vhf & 2-uhf multiple ownership rule. It opposes all-uhf reallocation, is extremely skeptical about possibility of "de-intermixture, " is dubious about adding more vhf channels to TV spectrum. And it reiterates opposition to use of directional antennas and lowering of station powers as means of squeezing in more vhf allocations. Comrs. Bartley and Hennock are writing separate comments, Bartley outlining his proposals for investigation of govt, use of vhf band (Vol. 10:28), Hennock summarizing her stand for non-intermixture, all-uhf allocation, etc.