Television digest with electronics reports (Jan-Dec 1952)

McFAKLAND BILL, first substantial change in Communications Act since 1934 (Vol. 8:25), was passed by Congress July 2, and ended up in final form as definite compromise between Senate and House. Final bill and report of Senate-House conferees (latter printed on pp. 8830-8836 of Congressional Record) should be studied carefully for all nuances, for it goes into effect as soon as signed by the President — probably in next few days. Following were major actions taken: (1) Eliminated House’s Horan amendment, which would have protected stations against suits resulting from defamatory statements made over their facilities by political candidates. Reason: insufficient study given problem. (2) Eliminated House’s “newspaper amendment,” which would have prevented FCC from discriminating against newspapers in granting licenses. Conferees made it clear, however, that omission of amendment didn’t sanction any such discrimination. They felt that new provision is unnecessary. (3) Eliminated authority House would have given FCC to levy fines and suspensions. Gave Commission power to issue cease and desist orders. (4) Eliminated Crosser amendment on payment for facilities of unsuccessful renewal applicant (Vol. 8:25). (5) Modified “separation of functions” provision so as to assure parties of full notice, and opportunity to participate, in connection with staff recommendations in adjudicatory cases. (6) Reinstated “double jeopardy” provision in antitrust section of Communications Act. ABC-UPT severance petition still awaits FCC action, believed to be imminent, as ABC’s competitive position worsens vis-a-vis NBC and CBS. This week, v.p. Ernest Lee Jahnke wrote to all stations in l-&-2-station markets, pleading for more clearances, asking stations to ameliorate the “artificial and temporary monopoly” created by TV freeze. Paramount hearing continued all this week, meanwhile, with Paramount counsel Paul Porter cross-examining Arthur Levey, president of old Scophony Corp., seeking to show that Paramount actually came to Scophony’s financial rescue in early 1940s and obviously had no motive for trying to suppress Scophony’s TV patents. Levey has testified that part-owner Paramount constantly obstructed his efforts to promote the patents. Latin America’s next new TV station will begin operation Aug. 1 in Ciudad Trujillo, capital of Dominican Republic. Owned by Gen. J. Arismedi Trujillo, the Channel 4 station will be operated by La Voz Dominicana, which runs 3 radio stations in capital city (HI2T, HI3T, HI4T). Station uses RCA 5-kw transmitter with 15.8-kw visual power, 7.9-kw aural. First important event to be televised will be presidential inauguration Aug. 16. Same company also plans relay systems to carry TV programs to eastern, southern and interior parts of republic. Boom in drive-ins has propped up movie industry, says Council of Motion Picture Organizations in disclosing gain of 828 drive-ins and decline of 749 indoor theatres over the last year. Citing statistics from Commerce Dept. & Film Daily's yearbook, COMPO reports 23,199 theatres in operation Jan. 1, 1952, including 4151 drive-ins, for highest over-all total since 1929 peak of 23,344. Auto radios comprise more than 22% of radio sets-inuse, are included in 24,500,000 passenger cars, or 63% of nation’s 37,000,000 automobiles, nearly double those of 1946, says BAB’s new brochure Listening on Wheels. National Council of Catholic Men, Washington, issuing monthly bulletin (at $2 a year) titled Close Up and reviewing and cataloging 16mm religious films regarded suitable for TV. Marshall Field stations KOIN, Portland, Ore., and KJR, Seattle, were sold this week for $1,500,000 to Mt. Hood Radio & Television Broadcasting Corp., Portland, and Mt. Rainier Radio & Television Broadcasting Corp., Seattle, in both of which companies the following are principal stockholders: Ralph Stolkin, Chicago, owner of oil & ranching properties and chief stockholder in National Video Corp., Chicago CR tubemaker; Edward G. Burke Jr., San Antonio, oilman; C. Howard Lane, Chicago, gen. mgr. of Marshall Field radio stations; Ted R. Gamble, Portland, owner of chain of Wisconsin theatres, wartime director of Savings Bond drive; Sherrill G. Corwin, Los Angeles, owner of Metropolitan Theatres chain. Mr. Stolkin & Mr. Burke were principals in recent purchase of KXOB, Stockton, Cal., with Clem Randau, ex-business mgr. of United Press. Mr. Lane will resign from Marshall Field organization to manage both stations and to prosecute their already-filed applications for Channels 6 & 7, respectively. Mr. Field gave “geographical considerations” as reason for selling, retains ownership of WJJD, Chicago. On committee representing CBS radio affiliates in effort to halt proposed network radio rate reductions (see p. 2), it’s noteworthy that combination TVAM operators are playing leading roles. Chairman is George B. Storer, who besides operating 7 AM stations, also has 4 TV: WJBK-TV, Detroit; WSPD-TV, Toledo; WAGA-TV, Atlanta; KEYL, San Antonio. Other members are Victor Sholis, WHAS & WHAS-TV, Louisville; Hulbert Taft Jr., WKRC & WKRC-TV, Cincinnati; John Fetzer, WKZO & WKZO-TV, Kalamazoo; John Patt, WJR, Detroit, and WGAR, Cleveland; Kenyon Brown, KWFT, Wichita Falls; Wm. Quarton, WMT, Cedar Rapids; Ray F. Herndon Jr., KTRH, Houston; Saul Haas, KIRO, Seattle. Also serving, because he’s chairman of CBS affiliates advisory board, is I. R. Lounsberry, WGR, Buffalo. Strike of 67 writers against ABC, CBS and NBC TVradio networks in New York may disrupt Chicago GOP convention coverage, said striking Radio Writers Guild (independent). Networks retorted that it will do nothing of the kind. Guild, representing news and continuity writers, is dispatching pickets to Chicago, and union officials said they doubted union members would cross picket lines at network installations there. Dispute is over pay increase demands. Threat of strike of Chicago TV-radio newsmen was averted June 30 when ABC & NBC came to terms with another union, National Assn, of Broadcast Engineers & Technicians (CIO). Oilman Edwin K. Pauley, former treasurer of the Democratic National Committee, who once dropped option to purchase San Francisco’s KPIX for $450,000, has made proposal to buy Mrs. Dorothy Schiff’s KLAC-TV, Los Angeles, but as yet there has been no meeting of minds. Proposed selling prices is said to be in excess of $2,500,000. Pauley has long evinced interest in TV, holds experimental uhf license in San Francisco, was in group with radio manufacturer H. Leslie Hoffman which was outbid by General Tire when Don Lee properties (including KTSL, now KHJ-TV) were placed on block. Wage and salary control regulations, as they apply to broadcasting industry, are left virtually unchanged in new Defense Production Act. As originally passed by House, measure exempted from wage control all employes engaged in businesses not subject to price control — including broadcasting, publishing, motion pictures, etc. But this provision was deleted from version which passed both houses of Congress this week. TV-radio stations & networks are still exempt from price controls. FCC’s proposed rebroadcast rule (Vol. 8:20,25) has been stayed by Commission for 60 days, or until Aug. 30 — following exasperated petitions by CBS, NBC, NARTB.