Television digest with electronics reports (Jan-Dec 1952)

9 OPPONENTS OF ABC-UPT merger had their say this week as DuMont and FCC Broadcast Bureau filed proposed findings. Both parties insisted that merger wouldn’t be in public interest and DuMont went one step further, saying that FCC’s Aug. 1 order — precluding consideration of old anti-trust evidence — violated Administrative Procedure Act because it wiped out solid bloc of evidence and forced examiner to carry out duties inconsistent with the Act. Both Broadcast Bureau and DuMont gave these reasons for opposing merger: (1) Merged company could refrain from promoting one medium or other — TV or movies — to protect its investment in each field. (2) It would lessen competition in theatre TV because TV division wouldn’t compete against theatre division. In addition, Broadcast Bui'eau ai’gued: (1) Other theatres would feel compelled to merge with TV networks and vice versa, laying groundwoi’k for new monopolistic pattern in entex’tainment field. (2) Merged company would be natural enemy of pay-as-you-see TV, even though FCC might find latter service to be in public interest. (3) Merged company’s certificate authorizes it to act as business agent for fox-eign bodies, prohibited by Communications Act. (4) Interlocking ownership of some stockholdei-s of KECA-TV and KTLA, Los Angeles, would violate duopoly rules. DuMont added these x-easons for opposing merger: (1) Merged company would have unfair advantage — it could offer sponsors theatre, as well as TV, outlets. (2) UPT’s proclivity to anti-trust actions couldn’t be examined properly because FCC’s Aug. 1 order pi-evented examiner from considering “intent.” (3) ABC can now get needed capital from sources other than UPT, even if it couldn’t when merger was first considered. Swing to filmed shows for TV has increased employment 20% among members of Screen Directors Guild of America, l'eports Sept. 25 Variety, which notes at least 100 directors in 750-member guild are now actively wox-king for TV — in addition to cutters, asst, directors, art directors, etc. And Oct. 1 Variety sees as symptomatic of continuing public demand for feature films, regardless of age, fact that Matty Fox’s Motion Pictures for Television anticipates record $4,000,000 in gross billings for 1952 — even though no recent domestic feature films have been made available for TV. Syndicating to all but 2 or 3 TV markets, MPTV has increased its gross by $1,000,000 this yeax-, has practically exhausted its vaults, but Fox sees demand for 1930-40 vintage films continuing at least 2 more years. Theatre-TV proponents won promise from AT&T to supply cost data for intei’city transmission facilities at amicable Sept. 30 meeting in Washington (Vol. 8:30, 36-37, 39) — but information won’t be furnished until after Oct. 20 FCC heax-ing. Commission officially notified all parties Oct. 3 that hearing will be held in National Museum auditorium for MPAA & NETTC testimony, will be confined to engineering & accounting data — including technical requirements axxd standards, sample theatre-TV microwave distribution systenxs, projection equipment, costs — and will exclude cross-examination until px-oceeding resumes in January (Vol. 8:26,30). New president of RKO Pictures is Ralph Stolkin, head of group that bought Howard Hughes’ contx-oling interest last week (Vol. 8:38-39). He succeeds Ned E. Depinet. Arnold M. Grant was named board chairman and general counsel. Other new board members are Mr. Stolkin, Edward Burke, Sherrill Corwin, William Gorman, A. L. Koolish, Gordon Youngman. Mi'. Stolkin, Mr. Corwin and Mr. Burke have interests in radio stations and several TV applications. “Mentioning” possible successors to the FCC comxxxissionership resigned by Robert F. Jones Sept. 19 (Vol. 8:38) continues to be favorite pastime of Washington trade reporters. Fact is nobody really knows as yet, probably not even Px-esident Truman, now on his whistle-stop tour. But “mentions” ax’e good publicity, hurt no one, xxxight possibly hit right name. Lumping all that everyone has mentioned, several known to be getting considerable political buildups, we can list: Wm. P. Massing, FCC asst, secy.; Wm. J. Norfleet, FCC chief accountant; Benedict Cottone, FCC chief couxxsel; Mrs. Fanney Litvin, FCC examiner; Edward P. Morgan, ex-OPS executive who recently returned to Welch, Mott & Morgan law firm; Neville Miller, ex-NAB president, now Washington attorney; Philip G. Loucks, Washington radio attorney; Justin Miller, NARTB chairman; J. Leonard Reinsch, gen. mgr. of Cox TV-radio stations (including WHIO-TV & WSBTV), now special advisor on TV-radio to Democratic National Committee; Telford Taylor, onetime FCC gen. counsel, recently administrator of Small Defense Plants Administration, now practicing law; Dr. Franklin Dunham, TV-radio chief, U. S. Office of Education ; ex-Rep. Clinton D. McKinnon (D-Calif.), former San Diego publisher, who ran unsuccessfully against Sen. Knowland in 1950. Note: Comx\ Frieda Hennock has intex-ested President Truman in her educational TV crusade to such extent that Billboard’s correspondent, noting that Telford Taylor is again representing Joint Committee on Educational TV, reports that Taylor is “doing some backstage advising at the White House” on the next appointee. There’s also reason to believe Mr. Truman himself, contemplating his retirement ixx January and talkixxg rather often about his plaxxs to pursue “political educational” projects, may be thinking in terms of working with prospective educational TV stations after he becomes a private citizen. Public reaction to color compatibility tests, conducted by RCA over WNBT, New York (Vol. 8:36), indicates it makes little difference to viewer whether subcax’X'ier frequency is 3.58, 3.75 or 3.89 me. Last is the NTSC field test specification. Engineers say that net effect, therefore, is to dismiss compatibility as a major consideration in choice of subcanier frequency. Meanwhile, industry leaders continue to venture predictions as to when commexcial color will emerge. Dr. E. W. Engstrom, RCA Labs v.p., interviewed on NBC-TV’s Today during this week’s Electronic Conference in Chicago, said, “color TV is definitely on its way. We caxx look forward to the enhancenxent of TV in the xxot too distant future by the addition of color.” Admiral president Ross D. Siragusa told Oct. 2 meeting of N. Y. Society of Security Analysts that color is “feasible immediately” but costs are so high that sets won’t be on market in quantity for “at least 2 and possibly 4 years.” He estimated tri-color tubes would cost $150 each, even in quantities of 10,000. Dr. Allen B. DuMont is still bearish, according to Portland Oregon Journal intexwiew which reported him estimating commercial color to be 5-10 years off. And Motorola’s Robex’t W. Galvin, in New York Journal of Commerce intex-view, is quoted as saying color will “sort of slide in sideways as a supplementary sexvice.” He added: “The change from black-&white will be evolutionary, not revolutionary. I think it will be 3 or 4 years before color reaches the market, and then only in limited volume.” Theatre TV grossed an estimated $400,000 from 120,000 spectators at 50 theatx-es for Walcott-Marciano heavyweight title fight (Vol. 8:39), according to px-esident Nathan L. Halpern of Theatx-e Network TV Inc. Despite recoi-d theatre-TV total, International Boxing Club is reported in Oct. 1 Variety to be offering Walcott-Marciano return match to Pabst for $100,000 on home TV.