Variety (Oct 1938)

Ve dnesJay, October 26, 1938 RADIO VARIETY 35 SOCK ABSENTEE LANDLORDS t . . — , r ■ • Prophets of Kid Boom Wrong Despite the impression which prevailed this summer that time for kid programs would be at a premium this, fall, NBC is -clearing but a half hour more' in commercial juve entertainment than it did last October. Difference does not represent an increase in the number of accounts. During last October NBC was broadcasting six and a half kid commercial program hours per week. This year it's seven program house per week. FCC OVER-RULES All PRIOR OKIYS KSFO, San Francisco Leas6 Disapproved in Strong Policy-Clarifyinf Decision BROWN DISSENTS Washington, Oct. 25. Invalidation of leases of more than a score of transmitters was feared this week following FCC refusal to ratify deal through which CBS would rent KSFO, San Francisco for a maximum of 15 years. In one of the most important decisions since the regulatory body was formed, a ma- jority of the Commish excoriated a pact Insuring the owner of the prop- erty eventual return of his license far in the future and declared agree- ments of this character violate the teipms of the Communications Act. Only one member—Commissioner Thad H. Bro\vn, who agreed with the eventual action but cited other rea- sons—^quibbled with the logic of the opinion. Precedent - setting statement of facts hung a heavy club over numer- ous owners.. Especially jeopardized are the half-dozen plants which NBC now operates under leases, along with WEEI, run by CBS but owned by Edison Electric Dluminating Co. of Boston. Upsetting opinion, which has been a .cause of controversy within the FCC since late in the winter, ap- parently is the'final chapter in the two-year effort of CBS to acquire the 'Frisco plant as a second^ basic web-managed West Coast outlet While attorneys have until the mid- dle of next month to seek reopening or note an appeal, further .proceed- ings appear unlikely. Whether the courts would entertain a petition for review is doubtful, with some bar- risters feeling there are no grounds for seeking judicial aid. Reversal Action at least marks a complete reversal of attitude on the part of thie Commish majority, specifically nullifying prior approvals of transac- tions under which the owner retains a string on his property when rent- ing it to another party to operate over a protracted period. This was made indisputably dlear when the Commish declared any inconsistent decisions 'are hereby overruled.' While the most immediate effect of the opinion is to Upset CBS expansion schemes, the principal danger to the industry resultinU from the adverse decision confronts own- ers of leased transmitters. If the FCC sticks to its newest interpreta- tion' of the statute, return .of the transmitters is likely to be -forbidden when the agreements expire. An- other probable consequence Is that parties to pacts will be forced to negotiate new understandings, which must receive FCC consent. The reason for nixing the joint CBS Associated Broadcasters plea was the technical conflict with two clauses of the act Although Ex- aminer R, H. Hyde, V/^ho recom- mended a turn-down 18 months ago, objected to the financial angles, the Commish did not comment on the fact that the rental fee would have been greatly in excess of the value of the property and much more than the actual earning power. In his analysis, Hyde took the view that the parties were trafficking in li- censes, since the plan called for com- plete replacement of equipment, sweeping changes in operating poli- cies, and in effect scrapping of the present business. Provisions of the understanding which drew fire would give As- sociated Broadcasters the right to intervene in any proceeding involv- ing KSFO, to recapture the license and property in event CBS failed- to live up to its. obligations, and to re- ceive the operating permit when the lease expired^ which .would be not later than 1952. In toto, these are not in harmony with the meaning of Sections 309 (b) (1) and 310 (b) of the 1934 law, the majority asserted. WMAL Intimstton Outspoken opinioii backed up im- plications seen in a recent advisory opinion on the transfer of control of M'. A. Leese Radio Corp., which owns WMAL, Washington, to the Washing- ton Star. On that occasion, the Com- mish took the position that there was nothing to approve since NBC is in actual control of the station by virtue of a five-year-old lease. The Commish did stress its belief, how- ever, that there was no obligation in- volved to renew licenses or to recog- nize interests of the Leese estate in the WMAL license. Dodging responsibility for any in- jury that may result, the Commish acknowledged it as well as its pred- ecessor, has placed its approval on pacts with similar provisions, but said subsequent experience proved this was erroneous. The opinion added that the comment in the WMAL case was a virtual announce- ment that the regulators will not be bound by any guaranties given in station leases. Disagreeing with his colleagues, Thad Brown in a separate statement of views considered the grounds ^ited were specious, particularly since the statute does not require a licensee to own equipment which he uses. If he has the necessary qualifications, the government is not concerned over title to the apparatus, he re- marked. Only requirement is that the license-holder is in full control and assumes responsibility for op- erations. CBS made an affirmative showing that it would be responsible, he said. Rubinoff in New York Fully recovered from his recent long peritonitis siege following an emergency appendectomy in Battle Creek, Mich., Dave Rubinoff arrived in New York yesterday (Tuesday). Maestro had been convalescing there. Rubinoff has no immediate plians, but expects to be back at the helm of his crew soon. KOMASOLD IF FCC ms Oklahoma City, Oct. 25. Sale of station KOMA by Hearst Radio, Inc., ta J. T. Griffin, Muskogee (Okla.) manufacturer and whole- saler, was confirmed last Thursday (20) by William C. Gillespie, mana- ger of KTUL, Tulsa, who represented Griffin in negotiations. Griffin owns the controlling share of stock in KTUL, with KOMA Columbia's only two outlets in Oklahoma. Purchase price of $315,000 was slightly- over the $300,000 it was gen- erally understood a group of OKla- homa oil men had offered Hearst for KOMA. Plans call for the immedi- ate purchase of a new transmitter sight located north of the city' and installation of new equipment cost- ing $75,000. R^3^ond Ramsey, former KOMA program director, has been named station manager to succeed Neal Barrett, who will now devote all of his time to the new Texas State Net- work. W. S. Lukenbill moves into Ramsey's job and Stewart Dean is a new announcer. Lester Hunt Buys Time To Spiel on KOL, Seattle Seattle, Oct 25. Lester M. Hunt, political staff writer for Seattle Post has. resigned to take over KOL stanza 'The Politi- cal News Hunt.' Time is being paid for by Hunt Locally imderstood he is tied in with American Federation of Labor. Lester Lindow appointed national sales manager for WCAE, Pitts- burgh. RED$KIN$ HAD A WORD ♦ ♦ ♦ ♦ FOR IT! • they boiled Beans and Corn together and called it''Succotash". Today, some Radio Stations put Network and Local program ::iudiences together and call it "Average". Call it "Succotash" or call it "Average"— it's still Beans and Corn. • it isn't necessary to carry the meta* phor further. But, if you wish, you may call Local audiences "Corn"—our face is not red. But Gentlemen, watch out for the "Succo- tash"! A Radio Station just boiled up a batch—here in St. Louis.* KUIK THOMAS PATRICK JNCQI^PORATED HOTEL CHASE ' ST. LOUIS Jl«pr0««ntarfv« PAUL H. RAYMER CO. Now York Chicago San Fronclsco