Television digest with electronics reports (Jan-Dec 1958)

6 up Ch. 10 grant on grounds that an airline isn’t entitled to one (Vol. 13:3,6).] Most of week’s testimony covered relationship of Miami attorney Thurman Whiteside to Mack and to Airlines. Miami Circuit Judge Robert A. Anderson, elderly ex-head of Airlines’ law firm, stated he had first approached Whiteside to become associate counsel with his firm and admitted Whiteside’s long friendship with Mack was a factor. But Anderson’s former partner, Paul R. Scott, testified Whiteside had declined for fear of retaliation from Katzentine. This is obviously going to be main prop of defense of Mack’s $2650 loans from Whiteside as a boyhood friend. Ex-Miami Mayor Perrine (Gootsie) Palmer, public relations man and friend of principals on both sides, testified he tried to help Katzentine by contacting Mack, but Mack told him “there’s too much Kefauver in this situation.” Palmer also stated he was in Whiteside’s office, listening to a Whiteside-Mack conversation via a phone amplifier, when he heard Mack say he had never been “pledged” to vote for National and that he hadn’t made up his mind how he would vote. Ben H. Fuqua, v.p. of Fla. Power & Light Co., a college classmate of Mack, testified FP&L chairman McGregor Smith had ordered him to go to Mack and urge that Katzentine be given “every fair consideration.” He did this, he said, to repay Kefauver for a favor — but he found Mack non-committal. Jerry C. Carter, member of Fla. Railroad & Public Utilities Commission (on which he had sat with Mack), also a Democratic national committeeman, testified he had admonished Mack “as I would advise my son” to disqualify himself from voting — but that, if he had to vote, to pick Katzentine. The 70-year-old Carter almost broke up the hearing with his humorous remarks, such as: “Pm just a cheap politician — the people I represent can’t afford an expensive one.” Carter told subcommittee he got worried about rumors that were damaging to Katzentine. “Why,” he exclaimed, aghast, “they carried on a smear campaign that got so bad that they accused him of being a Republican.” He said he had helped Mack get FCC appointment, “but I didn’t let Mr. Eisenhower or the other Republicans know Jerry Carter was as active as he was; the only thing I done was pull, under cover, all the wires I could.” Carter said he’d made 2 trips to Washington to talk to Mack about Ch. 10 case, added he didn’t know who paid his expenses but assumed it was “State of Florida.” And, he remarked, he imagined that Congressmen also know how to travel at Govt, expense. Harris was as titillated as anyone else by Carter’s testimony, but he stated soberly that witness’ tale pointed up “one of the most tragic examples of undue influence and high pressure tactics” in the history of regulatory agencies. Early in week, FCC examiner Herbert Sharfman related history of case, testified he was “surprised” FCC majority picked National Airlines after he had recommended Katzentine; agreed it was fair inference that he considered National least qualified of the 4 contestants, though he didn’t find it unreasonable for Commission to reverse him, as it frequently did other examiners’ reports. Forthright, lucid, Sharfman drew commendatory comments from the bench after testifying the better part of a day. ^ Hi Whether the White House actually exerted influence in FCC cases isn’t clear yet — though Schwartz did produce 2 letters from Presidential asst. Sherman Adams to Murray Chotiner, Los Angeles attorney and former political aide to Nixon, which related to pressures in a CAB case. Schwartz characterized Adams’ intervention as “grossly improper.” Schwartz also contended that Col. George Gordon Moore, brother-in-law of Mrs. Eisenhower, a public relations man, is partner in a Dominican Republic shipyard with 2 National Airlines officials and helped “engineer” the TV application; Harris has invited Moore to reply. Schwartz contends more time is needed to develop various cases, asserted that premature disclosure of “investigative leaks” might stultify hearing. Chairman Harris, obviously thinking of Schwartz’s o^vn leaks before hearings even began, brushed that aside with “You should have thought of that before.” Rep. Moss (D-Cal.) sided with Schwartz and apparently wants hearings slowed down pending collection of more information — leading to suspicion Schwartz may not have much beyond the Mack case. The New York U professor was given several files to help him develop further testimony. They included “KFRE, Fresno,” “Boston Ch. 5” and “Gordon Moore.” In sidelight to Harris subcommittee hearings, A. Frank Katzentine (WKAT), loser in Miami Ch. 10 case, filed brief with Coui't of Appeals charging that Storer Bcstg. Co. had “secret” agreement to sell equipment of its off-air WGBS-TV, Miami (Ch. 23), to winner National Airlines for $600,000 — thus perpetrating “fraud on the Commission.” Storer countered by noting that Airlines won CP Feb. 7, whereas agreement for equipment sale came March 28 — and was fully reported to FCC and press. Broadcasters Applaud Doerler: Standing ovation was accorded FCC Chairman John C. Doerfer at Feb. 19 Washington luncheon of NAB state association presidents, after NAB pres. Harold E. Fellows introduced him as man of “honor and integrity.” Deeply moved, Doerfer asserted that he “hoped before the end of the year to be able to convince some other people of my essential integrity”— in obvious reference to House investigation of his finances (Vol. 14:4-6). He said he’d made some “seemingly poor judgments” but he’d be vindicated “when the record is fully developed.” In his prepared address to group, Doerfer urged broadcasters make known their views as to direction govt, regulation should go. He said there are 2 schools of thought on govt. role. “The one school regards adminis trative agencies as a ‘headless fourth branch of the Govt.’ which does violence to the basic American concept of the 3 major branches of Govt. The other school holds that administrative agencies were created because practical men were seeking practical answers to immediate problems in a highly complex economic society. “Although the original Communications Act indicated that the broadcasting industry was to develop within the framework of our free enterprise system, there are today serious suggestions that the guiding finger of governmental regulation point out more specific directions.” Among other activities, conference voted to ask state associations to assume sponsorship of state-level Voice of Democracy contests, following withdrawal of Junior Chamber of Commerce (Vol. 14:7). Group also heard talks by Gabriel Hauge, President Eisenhower’s economic advisor, and Eric Sevareid, CBS news analyst.