Television digest with electronic reports (Jan-Dec 1956)

4 CBS was sweating out FCC approval of its $6,000,000 purchase of WBBM-TV and the $335,000 purchase of what's now WXIX, Milwaukee (Ch. 19). In Stanton's memo, Lee appeared to be estimating whether or when approval would come (for text, see below). In cold type, memo would seem to put Lee in embarassing position. However, Rep. Celler's staff saw memo some months ago, called Lee & Stanton into closed session. There, Lee & Stanton explained that memo was Stanton's paraphrase of conversation, and Celler apparently was quite satisfied with explanation. In view of Celler's attitude, Lee seemed unconcerned about publication of memo this week. Also in Evins committee record were brief CBS memos regarding conversations with other commissioners on color, etc. Included, too, was some correspondence concerning appointment of Hart S. Cowperthwait as chief of the Commission's rules and standards div. (for details, see below). There were no such documents from NBC — though it also submitted bales of subpoenaed correspondence — presumably because it doesn't keep such records. One upshot of whole business, if nothing else, will be that everyone — particularly FCC personnel — will clam up with CBS unless it guarantees to quit putting such material on paper and keeping it. Asked about CBS's policy, a spokesman said; "We believe it's better to keep track of such things; we have nothing to hide." He was quite miffed, however, that Evins had documents entered in the record "without testimony, explanation, crossexamination — nothing." Also included in record are statements from obvious crackpots and cranks. Committee coiuisel Everette MacIntyre says committee's report on hearing — its evaluation and conclusions based on record issued this week — is being prepared by the staff, will be ready by end of Sept, ; issuance is then up to Rep. Evins. * * * * Rep. Celler is preparing for real whingding in New York, meanwhile. He and counsel Kenneth Harkins & Samuel Pierce met with network officials Aug. 30 in an attempt to lay groundwork. One problem he's encountered is fact that talent groups, like AFTRA, etc., are balking at baring their financial souls, and networks are loathe to give out figures voluntarily. Celler has promised to go into everything under the TV sun, told us: "The TV industry has outgrown the anti-trust laws covering it, and we want to find out what needs to be changed. We're going into the very bowels of the industry." He has promised to explore option time, talent contracts, must buys, affiliations , etc. Hearings are set for Sept, 12-13, 17-21, 24-26 — all in New York, Celler's staff has also been leafing through FCC commissioners' personal files — but isn't expected to find anything juicy there. COMR. LEE’s phone conversation with CBS pres. Frank Stanton, concerning CBS’s pending purchases of Chicago & Milwaukee TV stations two years ago, hit headlines this week when published in Evins committee report because, standing alone, implications could be read into it. As written by Stanton in a reminder memo for himself, here’s what Lee is supposed to have said : “I have given a little bit of thought and study to our problem. I would say on the Chicago thing — it’s my impression that you have nothing to worry about. I don’t think anything would be jeopardized by anything else you would do. “On Milwaukee, I am not in a good position to advise you. I am almost afraid to say anything that might influence you because I could be so wrong. No matter what you did there, I am sure it would not reflect on the Chicago deal. “As a matter of fact, you have got some time on the Milwaukee business. I doubt if that multiple ownership stuff will go through for a couple of months. The opinion seems to be that we would need a full Commission to final ize it, and everybody seems to be going somewhere for the next couple of months. “The only point I can really make is that I feel confident that on the Chicago deal it is all right. I could be wrong, you know, but I think that is pretty solid.” Only 7 other memos and letters were gleaned by Evins committee from the 10,000 to 12,000 CBS submitted. One was report by CBS Washington representative Ralph Hardy on meeting between CBS chairman Wm. S. Paley and commissioners; he said, among other things, “Webster talked very frankly about Chicago” and “WSP and Doerfer mutually impressed.” Another was 1953 memo regarding commissioners’ views on when color decision would come. Still another was report that Comr. Sterling (since retired) said “he had very little faith” in the new NTSC-RCA color system but that FCC would have to hold hearings on it “because of the pressures.” Then there were 4 letters involving promotion of Hart S. Cowperthwait to chief of FCC rules & standards div.: (1) Cowperthwait’s letter to Stuart V. Willson, pres, of Northern States Power Co., Eau Claire, Wis., expressing appreciation for help in getting the position. (2) Willson’s letter to CBS board member Dorsey Richardson of Lehman