Variety (Sep 1938)

42 VARIETY RADIO Wednesday, September 28, 1938 m i.ifk m CELLAR-WATTIC SCRUBBING FORECAST AS FCC'S INDUSTRY PROBE WIDENS Curiosity Will Extend to Influence, Direct and In- direct, of Networks Over Their Affiliates—Out- line of Hearings Now Fairly Detailed Washington, Sept. 27. Prolonged hearings, ranging over a far wider field than was originally anticipated, appear certain in the Federal Communications Commis- sion's search for facts about need of strict network regulation and extent of monopoly in broadcasting. Testi- mony taking opens Oct. 24. Broadening of the issues will oc- cur in the interval before the ses- sions begin, with other economic and administrative matters due for in- clusion in the agenda. Four-man committee expects to issue supple- mental orders and statements of problems to be analyzed, following survey of additional data which has been requested in the initial notice of hearing. Indictment, which indicates the web-nionopoly crew will go over much of the ground already sur- veyed by the special committee con- cerning technical rules and policies, foreshadows a cellar-to-attic scrub- bing as preliminary for tightening of the Communications Act and pro- mulgation of sterner regulatory principles. Not So Casual In announcing the scope of the study, the committee sprang numer- ous surprises on industry observers, who have been inclined to shrug off the inquiry. Official bill of par- ticulars gave the first hint the FCC quartet headed by Chairman Frank R. McNinch contemplates going into such propositions as standards of ad- vertising and entertainment, devel- opment of talent, financial relations 5000^10009^ ALL YOU NEED IN CENTRAL OHIO WEBB ON THE NBC RED NETWORK NRTIONRL REPRESENTATIVES EDWARD PETRY & CO with advertisers and agencies, and dealings with wire companies. While the notice shows the com- mittee will delve into a wide range of topics, the agenda was a disappoint- ment to sortie reform groups and critics of FCC operation, -it^- was noted in many quarters there was no direct reference to the so-called Westinghouse leases—basic patterns for contracts which .affect more than a score of stations—and the outline did not place emphasis on the way stations treat religious, cultural, civic, labor,.and political groups. Westinghouse-NBC relations will be explored, although the notice did not direct the owner of the stations 1 managed and serviced by the web to appear as a respondent, it was ex- plained. General instructions told the chains to be ready for quizzing on all relations with affiliates and demanded detailed statements from all licensees about pacts with third parties involving management, oper- ation or control of transmitters. These omnibus paragraphs are con- sidered to comply with the resolution adopted last spring telling the probers to find out whether the NBC- Westinghouse relations are legal. Network Influence Inquiry into the third-party aspect is due to be most important. Nearly half of the points listed for examina- tion have a direct or roundabout re- lation to complaints - that networks exercise an excessive degree of con- trol over the operations of affiliates, that advertisers can put pressure on station managers, and that financial interests are able to pull wires. The Commish said specifically in an ex- planatory statement that it 'will ex- plore the field of so-called 'lease' and 'management' contracts under which persons other than authorized licensees may exercise influence over station management.' < In connection with this subject, the FCC ordered three national webs-^- CBS, NBC and Mutual—as well as i5 regionals to present data and send responsible officials to take the stand, besides calling on every one of the individual stations for what' ever information they may have which would be useful in getting a complete picture. Parties made re spondents are: Arrowhead Network (Minnesota), California 'Radio System, Colonial Network, Don Lee System, Hearst Radio, Intercity System,. King Trendle Broadcasting Corp. (Michi gan), North Central System (Min nesota), New York Broadcasting System, Oklahoma Network, Penn sylvania Broadcasters, Pennsylvania Network, Quaker Network, Texas State Network, Virginia Broadcast ing System, WLW Line Group, Wis- consin Radio Network and Yankee Network. Data which the commish wants for use in reaching conclusions on the remote-control angle covers his tories, financial arrangements, state ment of rights of networks and af filiates concerning substitution of pro'grams, time used for either com- mercial or sustaining'\veb programs? j contractual relations between net- I works and advertisers or agencies, THE ONEILLS' By JANE WEST now radio's most popular family brings you more, [aughter Jears and Heart-throbs Presented by Ivory Soap ■ 99 "/100 °/o pure LISTEN TWICE DAILY NBC Red Network, 12:15 to 12:30 P.M. EST |U CBS - WABC— 2:15 to 2:30 P.M. EST IIM COAST.. TO COAST Dir. COMMON ADVERTISING AGENCY MGT., ED WOLF—RKO BLDG., NEW YORK CITY stock ownership and sort of service provided. Social phages will be scrutinized closely, with a view to determining whether facilities are being wasted through unnecessary duplication of programs. Both chain features and transcriptions will be ogled. Net- works are required to give concrete facts about the extent of dual ser- vice in both primary and secondary areas of their outlets, showing the population which theoretically can pick up programs from more than one source. Individual stations were directed to submit sworn statements regarding the kind and amount of platters used, while transcription makers were invited to appear for quizzing about the quality of record- ings as well as their financial oper- ations. Network duplication will be thor- ughly considered, the FCC statement said, noting that-considerable info already has been compiled in con- nection with engineering studies. Necessity for providing services from more than one outlet and advisability of limiting such operation will be taken up. Multiple ownership naturally will come in for weighing. Commish has been checking stock holdings for the purpose of finding out about unre- vealed links and expects _ to offer 'revealing evidence' on the' subject. Special questionnaire was sent out recently in search for more complete dope than can be found in the files. Regulators have become concerned about danger of small groups' dom- inating facilities in certain areas and building up virtual local monopolies. Economic structure of radio, al- though already surveyed by the en- gineering group, will be micro- scoped. ( Among the issues to be ex- amined are the classification of sta- tions composing networks and the reasons for signing up or breaking off with various affiliates. First notice of hearing makes it plain that other propositions may be taken up.- All licensees were told they will be advised shortly whether the com- mish will require any witnesses to tell about operation of individual stations. Door was thrown wide open for all axe-grinders, who are expected to turn out in substantial numbers. Committee said the hearings will be open to any person or organization desiring to present evidence on any of the matters carded for considera- tion. Extend Australian License Term Sydney, Sept. 9. Indications are that the Federal authorities will grant the plea of commercial station operators that the term of their licenses be ex- tended. At present it's for a year. The commercial contingent has asked that it be extended to five years, but the prevailing belief is that the Government won't make it for more than three years. Non-Government controlled outlets say that once the extension goes through, implying long-term protection for their investments, they will step, up the quality of their program fare in a big.way. BELITTLED GRANT'S PASS Chamber of Commerce Protests Radio Lawyer's Characterization Grants Pass, Ore., Sept. 27. Directors of the local Chamber of Commerce objects to having the town referred to as a 'crossroads country village.' Letter containing this senti- ment has been sent to the Federal Communications Commission. Pro- tested description was included in a brief filed by attorneys for Mrs. W. J, Virgin, owners of KMED, Medford, opposing the setting up of a radio station in Grants Pass. Walter L. Read, president of the Pacific Radio Corp., who is trying to get a station license for Grants Pass, called the C of C's attention to the alleged slur. An FCC's examiner's report had previously held that there was no need for a station in this town. Read was formerly operator of KOOS, Marshfield. CITY CANT TAX STATION WSB Atlanta, Sept. 27. Supreme Court of Georgia Friday (23) ruled that WSB, owned by At- lanta Journal, is engaged in inter- state commerce and not subject to city license tax upon 'local broad- casters.' Station contended it derived its revenues from programs intended to be heard outside of state of Georgia as well as within state and was un- v able 4 "-to' -limit, its broadcasts to the 'borders 1 'St'the state even if it de- sired to do so. 'The lower court did not err in finding that the radio station is not doing the sort of business described in the taxing ordinance or in en- joining the present enforcement of such a tax,' Supreme court ruled. Hook, KGLO, on Leave KGLO has had series of staff changes. H. B. Hook, KGLO's 'Man on the Street' has 60-day leave of absence during which he head- quarters at Des Moines as campaign manager and chief press agent for Gov. N. G. Kraschel. Taking over Hook's 'Man on the Streeter' is George Arnold. Arnold also subs on ! the news, with Wade Patterson taking care of the bulk of the newscasting. New to the staff are Gordon Thomas, microphoner from WIBU at Portage, Wis., and Milo Knutson to sales. Herbert Flaiff, WLW-WSAI, Cin- cincinnati, special events director, marrying Oct. 1. Fans Petition NBC For Rowswell on Series; He's Rabid Pitt Bug Pittsburgh, Sept. 27. Hundreds of petitions, already bearing more than 15,000 signatures, are being circulated throughout tri- state area urging NBC to assign Rosey Rowswell to broadcast World Series games in event that Pitts- burgh Pirates cop the National League flag. Rowswell has been giving play-by-play accounts of Pirate doings all season over KDKA and WWSW, under cooperative spon- sorship of General Mills and Socbny- Vacuum, and has built up widest following ever to be attained by a sportcaster in this district. Not only petitions, but also local radio editors have gone to bat for Rowswell with NBC, several col- umns in three Pittsburgh dailies having been devoted last few weeks exclusively urging NBC's appoint- ment of Rowswell. So far network officials have announced no selec- tions. Only thing against Rowswell's ap- pointment, in opinion of many ob- servers, is his fanatic' Pirate par- tisanship. Although okay for local consumption ,and even quite neces- sary in view of fans' wild-eyed frenzy here at Pirate pennant cash, it's figured this would eliminate him for consideration in coast-to-coast hook-ups. New temporary Licenses Washington, Sept. 27. Five more transmitters last week went.oil the..list of over 50 stations which, for various reasons, havefbeen "given only revokable short-term per- mits, rather than regular six-months licenses, during prolonged period. No indication whether program com- plaints, accusations of illegal opera- tion, or because they are affected by pending' applications. Four of the arixious-seaters. won normal tickets' but the long list of managers who have only day-to-day papers was increased at the weekly session. Temporary documents of KSD, St. Louis; WCOC, Meridian, Miss.; WOW, Omaha, and WELI, New Haven, were replaced with usual douments as KFWB, Los Angeles; WCAD, Canton, N. Y.; WYBO, Baton Rouge; WBNX, Springfield, Vt, and WBHP, Huntsville, Ala., went on the tempo status. WTMJ's Blurb Package Milwaukee, Sept. 27. WTMJ is putting through a new announcement type of service. Of- fering a 10-word station break an- nouncement set-up for daytime use exclusively. Minimum on this basis is 10 such spots daily on a 13-week non-can- cellabe contract. Radio Success Stories Basis Of Broadcasts St. Louis, Sept. 27. Success stories, achieved, by com- mercial sponsors via radio will be the basis of a series of 15 min pro- grams to be broadcast over KMOX, one a month, starting Thursday (28). Merle S. Jones, general manager of the local CBS outlet decided that the achievement stories which are used for plugging purposes through brochures, direct mail stuff, etc, could well be used as sustainers. President of the Kroger Grocery & Baking Co. or one of his local representatives will be first to face the KMOX mike and tell his em- ployers what has been accomplished as a biz builder by radio. Jones said that the series will also feature representatives of the automotive, drug, beer and other industries. Clay Center Station Goes to Grand Island Lincoln, Sept. 27. KMMJ, Clay Center, Neb., moves lock, stock and barrel to Grand Is- land, Neb., next month. Station, owned by Don Searle and managed by Randy Ryan, has been one of the state's leading farmer stations for 10 years, and the move takes it to a town of three times the population of its present stand. KGF-W. Kearney, Neb., recently opened a remote control studio in Grand Island. TUMS Local Varieties WLW and NBC Tues.-Thurs., 7; 15 P.M. EST means SuiineiS Uv'Scdtimcie LISTEN TO DORIS RHODES WABC 7:45 P. M. Wednesday: 0:15 P. M. Thursdny; 5:30 1\ M. Friday Mgt Columbia Artists Bureau