Television digest with electronics reports (Jan-Dec 1958)

3 DuNONT MERGER TALKS STILL UNDER WAY: Paystrom-PuMont negotiations (Vol. 14:22) have fallen through — but conferences looking to one form of merger or another, possibly with aircraft firm holding defense electronics contracts, were being continued this week. Pifficulty now appears to be that aircraft interests, while possibly desiring PuMont's staff and know-how, notably in tubes & communications apparatus, aren't particularly interested in consumer products such as TV, radio, hi-fi. But negotiators think they can find way, if needed, to separate operations. Said a spokesman close to both PuMont and major stockholder Paramount Pictures, shortly after PuMont Labs pres. Pavid T. Schultz told newsmen that "discussions [with] Paystrom Inc. have been discontinued": "I guess Jones [Thomas Roy Jones, pres, of Paystrom] has his problems, too. But I would guess that some kind of deal will be worked out with somebody within the next 60 days." He said Wall Street Journal quote of Paramount Pictures pres. Barney Balaban, which indicated that 26% stockholder Paramount was considering taking over itself, was incorrectly interpreted. Balaban didn't mean that at all, he said. Only thing definite right now: All parties in interest — PuMont, Paramoimt, prospective alliances, bankers — are maintaining discreet silence. Trading in stock of PuMont Labs this week totaled only 3300 shares ys. 69,000 week before. It closed at 4%, down from last week's 1958 high of 5%. CREEPING GOVT. THREATS TO NETWORK PRACTICES: Washington gave the networks another uncomfortable week. Pressure to restrict them increased from several quarters: (1) Network witnesses were given brisk going over by Sen. Bricker (R-0.), as he conducted hearings on his bill (S-376) to require FCC to exert direct control over networks. Sole Senator present most of time, he made it clear to reporters after hearing that he wasn't pressing for passage of bill this season — but he also made it plain that he believes networks are too powerful, may be able to get across their own "philosophies," have too much influence concentrated "in one section of the country," may be able to deny advertisers vital "access" to TV, hold life-&-death control over affiliates. (2) Asst. Attorney General Victor Hansen gave opinion that certain network practices — option time, must-buy, alleged program "tie-ins" — are illegal "per se" (automatically wrong, like sin), and he received wide publicity. He gave us exactly same view over month ago (Vol. 14:18) but several newspapers, notably June 1 N.Y. Times, gave it prominence on eve of Senate Commerce Committee hearings. (3) Rep. Emanuel Celler (P-N.Y. ). chairman of House Judiciary Committee, decided time was ripe for another jab at FCC, told Commission that Hansen is right and it had better outlaw the practices or he'll do something — like hold hearings. » ♦ * * FCC Chairman Poerfer isn't panicked by these developments. In testimony before Senate Commerce Committee this week, he emphasized that S-376 is "premature" lintil Commission finishes network hearings and evaluates them; that Hansen's opinion is "tentative" and "informal" ; that some of Hansen's information came from anonymous witnesses who ought to be cross-examined in the open. Poerfer said FCC would "have no choice." on other hand, but to outlaw practices referred to by Justice Pept. if latter offers "formal opinion" that they're illegal. "I've always felt," he said, "that FCC is not particularly expert on antitrust matters." But he's by no means ready to buy Justice's opinion yet, and Justice has agreed, he said, to wait until FCC finishes network hearing. No dissent from Poerfer 's view was expressed by other Commissioners during Senate hearing. Hansen sounds quite firm in his opinion, which he said has been cleared by Attorney General Rogers, so it's thoug}it he'll stick by it "formally." This raises the persistent question as to whether Hansen might go for a "compromise," such as that proposed on option time by Station Representatives Assn. (Vol. 14:21-22). Some