Television digest and FM reports (Jan-Dec 1946)

making big plans (see stories in this and other recent issues). Whether others will formally join CBS, is conjectural. Major industry entities like Westinghouse and Zenith have avowed belief in CBS’s work, but RCA, DuMont, GE and Philco spokesmen have said color is too impractical, uneconomic and unproved as yet to warrant stoppage of low-band activity. Many withdrawals of lowband applicants in recent months were plainly predicated on the masterful job CBS has done, by way of its demonstrations and publicity, in persuading applicants to wait for color. That the go-ahead-now advocates will oppose the CBS case, goes without saying. Right now they are by far in the preponderant majority. Their chief argument against “waiting for color” is very much like the argument about cars: If you could, would you buy a good new car now, knowing it will wear out or become obsolete, or would you rather wait for the improved, plastic-body, superdooper models promised for the future — in the meantime go without? DISSENTESS WOHM ABOUT FxM: Their lively sohcitude for FM is one of reasons FCC’s dissenting minority, Durr and Walker, opposed ABC’s purchase of WXYZ, Detroit, approved by Commission majority July 18 (Vol. 2, No. 29). They felt $2,800,000 price is excessive, but, what’s more, they’re worried about effect of such deals on development of FM. Here’s how they reason in their formal dissent made public this week: “From a technical standpoint, standard broadcasting should reasonably be regarded as an obsolete type of service where at least equal coverage can be obtained through FM.” Therefore, they reason, since ABC’s President Mark Woods admitted WXYZ would become less valuable with every listener who switches to FM (even though AM-FM duplication is planned), so vast an investment in AM would naturally impel reluctance to encourage FM. Deals like this, which Durr-Walker would stop until Congress defines FCC powers to approve or halt them, mean “the listener will not be encouraged to buy receiving sets with FM bands because it will enable him to hear few, if any, programs not available through his AM receiver.” (Ghost of Durr’s old non-duplication tenet.) Dissenters also see as FM-retarding, ABC’s hesitation to step on toes of any of its affiliates not applying for FM (though network says it has achieved substantial results in urging affiliates to apply). But FCC majority (Denny, Jett, Wakefield, Hyde) are not so apprehensive. They say: “We can see no basis for concluding that this [sale] will retard the development of FM when ABC, having inferior coverage to NBC and CBS, stands to gain much in terms of equality of facilities by a rapid transition to FM.” Majority also took occasion in opinion to make specific point of FCC’s continued • unanimity on future of FM: “We agree with everything [the dissenters] say about the vital role that FM is destined to play in the future (and we refer to the immediate future) of radio broadcasting.” 'HOPE' FOR FM DECISIONS: Swamped FCC hearing section is sweating to smooth way for decisions on FM hearings already held, but best it can give is “hope” for some action next month. Lack of secretarial help is a major delaying factor. Of hearings ahead (Supplement No. 42), Toledo is postponed indefinitely with dropout of Toledo Blade leaving 2 applying for 2 channels. Indications are also that Baltimore and Buffalo hearings, both slated for Oct. 21, will be postponed because of conflict with Oct. 21-24 NAB convention — as was Los Angeles, now set for Nov. 18. As for New York affair, in which 17 applicants jostle each other for 5 channels, engineering was completed this week so that next Monday’s testimony regarding News’ editorial policy should bring finale to fracas which started July 8. Chicago Federation of Labor (WCFL), regretting faux pas during Jime FM hearings there, has asked records be reopened so it can rectify impulsive testimony of secretary Maurice Lynch. Seems that Lynch, when asked if station would give time to, say, CIO, for discussion of controversial issues, said equivalent of “Not on your life!” FACTS ABOUT KSTP DEAL: There’s much more than meets the eye in the report that Crosley, operator of the 50 kw WLW, Cincinnati, and recent purchaser of WINS, New York, was “attempting” to purchase KSTP, St. Paul. As matter of fact, the 50 kw KSTP (also holder of a CP for TV and operator^ of an FM) was sold last Tuesday — ^but to Stanley Hubbard, its founder-manager. Owner of 25% stock, Hubbard bought remaining 75% from Shields-Brown estates for $825,000. National Battery Co.’s late Lytton Shields backed Hubbard in organizing the station some 20 years ago, gave him first call on any stock sale. But deal doesn’t end with sale to Hubbard. He borrowed the $825,000 on 13-month note (secured by physical plant worth about $500,000 plus $350,000 in cash assets) from Victor Emmanuel’s Aviation Corporation, now parent company of Crosley Broadcasting Corp. Avco received option to purchase the 75% stock from Hubbard for $1,300,000 — but not for six months, giving Hubbard break on long-term capital gains tax on $475,000 profit he realizes. If Avco doesn’t exercise option, or if FCC balks at transfer to it (as several members did in Avco-WLW case), Hubbard continues to own station outright, has plenty of time to negotiate new