Television digest with AM-FM reports (Jan-Dec 1950)
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Sidelight on aluminum order is that use of aluminum for maintenance, repair and operating supplies (for example, in equipment to manufacture picture tubes)
Yfill be allowed at same rate as first 6 months of 1950. Same base period will be used in copper limitation order; most qualified sources predicting a 25-50% cut.
Percentage-wise limitation orders are considered stop-gap only, with return to World War II "Controlled Materials Plan” seen inevitable by informed govt, people. NPA is now making studies to determine (1) which raw material uses are "essential", i.e., have no satisfactory substitutes, such as use of copper in wire, and (2) which industries or products are essential to national defense or civilian economy. NPA general counsel Manly Fleischmann predicted complete govt, allocation of all "basic materials" by July.
Communications industry representatives, meeting Nov. 17 with Gen. Harrison, complained of unavailability of electronic components necessary for maintenance, asked priorities equal to or just below military orders. Gen. Harrison assured them NPA will see that they get essential supplies, even if it means cutting into "DO's." Communications men protested some TV and radio firms are hoarding large quantities of resistors, tubes and other parts bought on black market.
OPPOSE EXCESS PROFITS TAX ON TV: Like most industries appearing at House Ways &
Means Committee hearing on excess profits tax (Vol. 6:45), TV has special problems — and they were spelled out Nov. 17 by TEA'S John A. Kennedy (WSAZ-TV, Huntington, W.Va.). Kennedy's plea was to defer TV operators from any excess profits tax until such time as real normal base could be ascertained. Base would be decided by Congress on basis of returns to FCC and Bureau of Internal Revenue. Committee heard plea sympathetically, hardly questioned TV spokesman.
Day before, NAB appeared on behalf of broadcasters, asked that any tax take into account large development costs spent by station operators on FM, TV, etc.
Next to be heard are RTMA and Dr. Allen DuMont, Nov. 20; Mrs. Dorothy Scott Bullitt, KING-TV, Seattle, Nov. 21. Philco and Theatre Owners of America have withdrawn.
Chance for excess profits tax this session looks very slim. Administration and labor organizations are only ones in favor. Consensus is that if House does pass tax, it would not get past the Senate.
PAYING PLENTY FOR TV PROPERTIES: High value of TV stations — rather ironical, since now-frozen channels could have been had for the asking only a few years ago — is attested by 2 sales deals disclosed this week. Filed with FCC were details of proposed purchase of Don Lee's KTSL by CBS from Yankee Network, which was high bidder for "Don Lee package" (Vol. 6:42-43). Announced in San Diego was sale of Jack 0. Gross' KFMB & KFMB-TV to John A. Kennedy, former Charleston (W.Va.) broadcaster, former publisher of old San Diego Journal, present 48% owner of WSAZ and WSAZ-TV, Huntington, W.Va.
CBS is paying $5,448,765 for KTSL, if FCC approves — price including $555,765 for equipment and embracing 10-year lease of Vine St. studios, 20-year lease of Mt. Lee and Mt. Wilson properties. Possible hitch in transfer of KTSL may develop if unsuccessful "package" bidder Hoffman Radio applies for KTSL channel, as indicated in reports from Los Angeles. San Diego purchase price was not disclosed, but asking price was previously reported at $1,200,000.
Another portion of $12,320,000 "Don Lee package" announced as sold this week, subject to FCC approval, is KDB, Santa Barbara. Buyer is Lincoln Dellar, owner of 3 other AM stations in California. Price is $25,000.
Other TV station sales this year, all approved by FCC, were WOIC (now WTOPTV) to Washington Post 51%. CBS 49%, price $1,400,000 (Vol. 6:25) ; KBTV (now WFAATV) to Dallas News for $575,000 (Vol. 6:4,11) ; KLEE-TV (now KPRC-TV) to Houston Post for $740,000 (Vol. 6:13,21).
Note : Reports that Paramount Theatres is negotiating for ABC (with 5 TV outlets) meet complete disavowal by network officials. Also in wind but unverifiable is report that Mary Pickford Rogers, long interested in TV and a pre-freeze applicant for stations in Asheville, Durham & Winston-Salem, N.C., is dickering for ABC.