Television digest with electronics reports (Jan-Dec 1958)

6 it is exchanging 400,000 shares of stock with National and that the 2 would lease jet aircraft to each other. Jorgensen didn’t suggest that the judge withdraw from case but said he was bringing it up merely to “keep the record clear” and had no question about judge’s qualifications to preside. Judge Stern evidently doesn’t consider connection significant, and observed: “If I were among my friends of the Pennsylvania bar, I don’t think there would be any question about it.” However, he said he has consulted some FCC commissioners about it, will talk to others, then give his opinion when hearing resumes next week. The 80-year-old jurist — small, rotund, bald, dignified — runs hearing quietly, interjects calm questions occasionally, gives impression he’s a bit shocked at charges of back-door maneuvering. He has the hearing well under control; counsel have indulged in no barroom brawling. Hf * * This week was devoted to testimony of A. Frank Katzentine (WKAT) and those involved with efforts on his behalf. He had held favorable initial decision, rendered by examiner Herbert Sharfman, testified that all he and his friends tried to do was persuade Comr. Mack to “vote on the merits” — after he’d heard that Mack was “pledged” to vote for National. All witnesses who had approached Mack testified that he listened, was noncommittal, didn’t try to stop them from mentioning the case. The -witnesses, in addition to Katzentine: (1) Ben H. Fuqua, v.p. of Fla. Power & Light Co. A friend of Mack’s, he said he’d come to Washington to ask Mack to give Katzentine “a fair shake” after his boss, power company’s chainnan McGregor Smith, had been approached by Sen. Kefauver (D-Tenn.) on behalf of Katzentine. (2) Joseph M. Fitzgerald, Miami attorney involved in a “Foster Trust case.” He said that Katzentine was an attorney in the case, as was Thurman Whiteside, the friend who had loaned Mack large sums. Katzentine had testified he believed Whiteside had Mack pledged for National. Fitz Two Seeking WVUE's Ch. 12: Storer had no buyers on tap at week’s end for WVUE, WilmingtonPhiladelphia (Ch. 12), which was all set to go dark Sept. 13 — but FCC had already received one application and one petition for the channel. Applicant is multiple radio station owner Rollins Broadcasting Inc., owned 50% each by the brothers 0. Wayne & John Rollins, latter ex-Lt. Gov. of Dela., seeking channel for Wilmington and filed by Cohn & Marks. Petition was authorized by Joint Council on Educational TV (Ralph Steetle, exec, director) ; it asks that Ch. 12 be made into an educational outlet for the Delaware-Philadelphia-N. J. area, was filed by Krieger & Jorgensen. Storer exec. v.p. Lee B. Wailes stated that at least 25 different inquiries have been made by prospective purchasers since station went on block 3 weeks ago (Vol. 14:3536) but that none of offers was acceptable. Storer is asking $1,800,000 for the station, including plant valued at $750,000 at Pittman, N.J., but meanwhile has sold off its film contracts, let out staff and definitely set closedown for end of week. If right price isn’t obtained, Storer has stated, channel will be turned back to FCC and tax loss taken. WVUE license expires next Feb. One of rejected bidders was revealed as Richard Eaton, highly successful operator of 7 radio stations, who holds gerald told of a KatzentineWhiteside meeting in which Whiteside offered to “release” Mack from any pledge which Mack “thought he might have made.” But Fitzgerald also testified that Whiteside denied to him that Mack had made any such pledge. (3) Jerry Carter, member of Fla. Railroad & Public Utilities Commission, of which Mack had once been a member. He said he had suggested Mack disqualify himself from voting in case because of possibility of scandal, later urged him to vote for Katzentine. (4) Perrine Palmer, former Miami mayor. He said he’d told Mack that an airline shouldn’t be in TV business; that he should “vote on the merits”; that perhaps he should disqualify himself from voting because he (Mack), as chairman of the utilities commission before appointment to FCC, had written to FCC endorsing Katzentine’s application. Other 2 participants in hearing, eagerly hoping that Katzentine and National will knock each other out and free Ch. 10 for one of them (or both in a merger) are L. B. Wilson Inc., comprising estate of L. B. Wilson, who had owned radio WCKY, Cincinnati; North Dade Video Inc., made up of local businessmen headed by Frank Bryson (steel fabricating). Also sitting in, keeping close watch personally, is Robert Bicks, first asst, to Justice dept, anti-trust chief Victor Hansen. For FCC, associate gen. counsel Edgar Holtz heads team including asst. gen. counsel Richard Solomon and James Brennan. Robert Rawson, chief of FCC hearing div., represents Broadcast Bureau. Chief counsel for participants are: National, Norman Jorgensen; Katzentine, Paul Porter; L. B. Wilson, Paul Segal; North Dade, A. Harry Becker. Witnesses due next week: Miami Circuit Judge Robert A. Anderson, attorney for National before becoming judge; Paul Scott, law partner of Anderson’s; Charles Shelden, head of insurance company in which Mack held 1/6 interest given him by Whiteside; G. T. Baker, pres, of National. Whiteside is due the following week. moribund CPs for uhf WOOK-TV, Washington (Ch. 14), WTLF, Baltimore (Ch. 18) and off-air WACH-TV, Newport News-Norfolk (Ch. 33), and who in merger agreement will be 50% owner of licensee of Ch. 3, Wilmington, N.C. (FCC Doc. 12148). If channel is turned in, the brothers Rollins, pleading Delaware service, are seen as strong contenders in what undoubtedly will turn into dog-fight. They propose to return station to Wilmington, where they own radio WAMS; their other stations are WJWL, Georgetown, Dela.; WRAP, Norfolk; WNJR, Newark; WBEE, Harvey, 111.; WGEE, Indianapolis; KATZ, St. Louis. Their only TV interest is WPTZ, Plattsburgh, N.Y. (Ch. 5), getting ABC & NBC service. Rollins firm’s balance sheet filed with FCC shows current assets of $221,630 as of last June 30 and $482,817 total assets; current liabilities $94,884, total liabilities $102,926, capital stock $100,000, capital surplus $279,890, net worth $379,890. The JCET petition points out that no vhf educational is available between Pittsburgh & Boston, though WHYVTV, Philadelphia (Ch. 35) would px'esumably continue local uhf service. The Storer vhf would pro-vide regional service, though petition doesn’t indicate what educational interests would back it and with how much. Storer’s quite successful Philadelphia radio WIBG is being retained, with Lionel Baxter as v.p.-gen. mgr. Wailes said practically all WVUE staff has found jobs, that managing director Terry Lee and gen. sales mgr. Joe Evans are staying with Storer organization.