Television digest with electronic reports (Jan-Dec 1959)

— 1 — FCC's findings conclude that some elements of TV industry — some stations, advertisers, reps, pro i gram producers — may suffer competitive disadvantage under option time, being unable to get prime station * time. However. Commission believes that loss of option time might eviscerate networks — and this would not i be in the public interest. I Justice Dept.'s anti-trust chief Victor R. Hansen analyzed FCC's findings in light of string of court decisions as long as your arm and concluded that law requires outlawing of option time — regardless of what effect it has on networks. FCC's document discloses, for first time, the reasoning of dissenters Hyde. Bartley & Ford. Basically, they believe networks can get along quite well without option time. Hyde goes further <& says that networks invite more & more govt, regulation if they insist on the "protection" of option time. For details see p. 5. MUTUAL NETWORK SOLD AGAIN: woe-begone Mutual Broadcasting System was un I loaded at week's end by Hal Roach Jr., its unhappy inheritor in the Guterma scandal. Its 3rd purchaser in 2 years was identified as a well-heeled group of N.Y. businessmen headed by Malcolm Smith, pres, of importer Harrison Home Products Corp. (565 5th Ave.). Operating head of network probably will be Adolf N. Hult. onetime MBS sales v.p. who was with Mutual for more than 20 years starting in 1934. He's understood to be member of group which late Fri. March 8 bought option for MBS for undisclosed sum. He started in radio in 1930 at Chicago's WGN. New management team, said to have connections with a phono-record firm, took over network reins immediately to "quiet the rumors going around the network." Purchasers pledged to continue the 453-station network's present format of news, special events & sports. Sale of network was unofficially cleared by federal court and SEC. former Hal Roach management says in answer to reports that official transfer might be blocked by legal action. There are moves on many fronts to appoint receiver and stop sale of assets of F.L. Jacobs Co., former happy-trading-ground of financial wizard Alexander L. Guterma. Mutual's seller was Scranton Corp.. controlled by Jacobs Co., of which Roach is now listed os virtually sole owner. For details, see p. 7. FULBRIGHT: 'LET FCC HANDLE BOOSTER PROBLEM': Congress' first dissenting voice in the clamor for legitimization of vhf boosters is that of Sen. Fulbright (D-Ark.), as anticipated (Vol. 15:6). His position, delivered in long speech on Senate floor March 6, was this: Keep hands off FCC. The Commission had studied this thing thoroughly for years and had rendered a sensible decision. As Chairman of Foreign Relations Committee, Fulbright is a senator of no puny stature. However, s he's much outnumbered by pro-booster forces, including Sens. Magnuson (D-Wash.), Carroll (D-Colo.) & Allott (R-Colo.), Mundt & Case (R-S.D.), Curtis (R-Neb.), O'Mahoney & McGee (D-Wyo.), Mansfield & Murray (D-Mont.), hanger (R-N.D.), Chavez (D-N.M.) — plus a whole posse of members of the House (Vol. 15:4 et seq) — who have introduced 25 pro-booster bills & resolutions. Fulbright used a smart theme in his speech, in these days when "FCC" and "influence" commonly f appear in headlined charges. He stated: " "This Congress cannot expect the Commission to make the independent decisions for which it was n created, and to command the respect of the public and of the Congress, if the Congress itself is guilty of undue interference in matters requiring the expert judgment of an expert agency. "I find that the Commission's order is based upon its expert opinion, and that of its staff, that the illegal boosters and reflectors constitute a potential and practical source of interference to communications f ; services assigned for the protection of life & property, and that such boosters are a potential & practical j \ cause of destructive interference to TV reception on home TV receivers. "In addition, the record shows that the Commission has developed and promoted the uhf translator i service as a substitute for the boosters, and the Commission's studies have convinced it that the translators : . provide 'an excellent means' for obtaining rural area TV service ... Let us leave the Commission alone and f let it administer the Communications Act without undue interference." \ FCC is still reconsidering its anti-booster ruling, meanwhile, and is expected to come to another i decision within week or 2. As part of its investigation, it has had its Laurel, Md., labs examining 2 boosters ^