Variety (Dec 1942)

t8 RADIO Vcdnwday, December a8» 1941 Tax Threat Forced Disposal By Non-holit Woodmen of WOW; Now Expect Other Similar Sales The reasons which prompted the Woodmen ol the World Insurance Society to dispose of Its station, WOW, Omaha, may. it was disclosed last week, have Interesting reper- cussions in the broadcasting Held. Other non-proflt organizations whose sideline is the operation of a com- mercial station may be disposed, be- cause of similar circumstances, to get out of the broadcasting business during 1943. The Federal Communi- cations Commission last week ap- proved an application transferring WOW's operation to John J. Gilien, Jr., and his associates in a leasing ayndicate. The lease is for 10 years and is irrevocable. The Woodmen of the World acted to unload the actual operation of the elation after it learned from the In- ternal Revenue department that, while the Income of fraternal organ- izations (in which classification it belongs), religious foundations and educational Institutions is not tax- able, this status changes when any one of them derives profits from a business In which It is actively en- gaged. In such cases the profits de- rived from the business must be tossed in the same pot with the rest of the organization's income and the whole thing becomes subject to tax- ation. These organizations had here- tofore paid taxes only on commer- cial enterprises In which they were actively engaged. Woodmen's Big Bli The Woodmen of the World does an annual business of around $140,- 000,600 a year, whereas the station turns in a profit of around $250,- 000 a year. The fraternal organiza- tion found that if it were to go on operating the station the income from the insurance business, the sta- tion and its office building (which it has also disposed) would be treated by the tax collectors as a single operation. Gilien, WOW's general manager, was subsequently called in by the Woodmen board and authorized to work up the best dis- posal deal possible in which, of course, he himself would be proper- ly taken care of. There are a number of stations with goodly annual profits which are operated directly by religious organ- izations, but the indications are that they, like other non-proflt organiza- tions, won't act on the tax problem unless their incomes from radio are CO large as to materially affect their financial structure. May Call Networks At A.T.&T. Hearings The four national networks may be asked to testify on their short and long line rates when the Fed- eral Communication Commission re- sumes its hearings on the American Telephone & Telegraph Co. rate in- qi;Iry Jan. 20. The FCC has ordered the A.T. & T. to give reasons why its rates in general shouldn't be re- duced. There doesn't seem to be any dis- position on the part of the networks to enter into the probe voluntarily, but they do anticipate a call from the FCC. DYER SELLS HIS WEMP, MILW. INTEREST wow Employes Oct Bonus Omaha, Dec. 22. John J. Gilien, Jr., brought to- gether the staff of WOW for a party Friday (18) and during it announced the transfer of the station's operat- ing control and the fact that each employe was to receive a bonus of 15%. He also told them that there would not be any changes in per- sonnel. Gf. RETRENCHES ON NET SERIALS General Foods is unloading some «f its network serial obligations. It's canceling 'Don Winslow' on the Blue Jan. 1 and confining 'Young pr. Malone' to a single network, CBS. The web losing out on the 'Dr. Malone' retrenchment is NBC. The cancellation becomes effective Jan. 15. 'Malone' plugs Post Toasties on both links, and the packer will have another and new show, The Thin Man,' sharing the task at about that time. Milwaukee, Dec. 22. Gene Dyer, owner of WAIT, in Chicago, has sold out his 48% inter- est in The Milwaukee Broadcasting Co., operator of WEMP, to a group of Wisconsin men, who henceforth will be associated with Glen Roberts, a Madison attorney, who, as owner of 52% of the stock, has long been in control of the Milwaukee station. WEMP, an independent station and Wisconsin outlet for the Blue net- work, has enjoyed a remarkable growth and this past week purchased the transmitter station atop the Pub- lic Service building formerly used by WISN prior to removal of its transmitter to a new position south of Milwaukee. While WEMP is not making any immediate changes, in accord with FCC regulations, plans are now be- ing made for post-war expansion. Fred Uttal Admits Slapping Wife, But She Hit Him First Fred Uttal, radio announcer, took the witness stand In N. Y. Supreme court Monday (21) and told Justice Samuel Null, that 'I would have called myself anything, even a green-eyed piece of cheese, to keep whatever little peace there was left between us!' He was referring to Mrs. Madeline Frick Uttal, who is suing him for separation, $1,500 counsel fees and $125 weekly main- tenance. Uttal emphatically denied the al- legations of cruelty made by his wife, whom he married in 1040, but did admit that 'I did slap her, but not until I was provoked into doing so when she struck me in the face with a heavy tumbler.' Following Uttal's testimony, which closed the case. Justice Null reserved decision. In her testimony Mrs. Uttal slated that Uttal made about $26,000 through his radio announcing posi- tions in 1941. Pointers on Comedy in the Camps' By HERB SHRINER ■n Added Fcstorc In *Shou) Business At War* theme of the 37th Anniversary Number of BLUE'S 1ST YR. SHOWS PROFIT In his resume of 1042, which was released to the press yesterday (Tuesday), president Mark Woods of the Blue Network disclosed that the web had come through its first year of operation with a profit, even though a large share of the income from the sale of time was regularly plowed back* into sustaining pro- grams. Mutual, which issued a sim- ilar report, spoke of having keyed itself almost entirely to the war ef- fort through 1942. The Blue statement pointed out how it had consistently sought to build up a schedule of 'outstanding" sustaining programs and how it had also concerned itself with entertain- ing servicemen and war workers on the scene of operations. WCOFs Foreign Ungo Activities Draws Probe On License Renewal Washington, Dec. 22. Federal Communications Com- mission will look into the foreign language broadcasting activities of station WCOP, Boston, which is controlled by Arde Bulova through Massachusetts Broadcasting Corp., before it renews the station's license. Station's application for renewal has been designated for hearing by FCC. Testimony will concern meth- ods of selecting and investigating personnel; qualifications of person- nel; sale of time, and supervision of programs. After the examination, FCC will determine whether con- tinued operation of the station by the present operator would serve the public interest. FCC said it had investigated Franco Gallucci, WCOP announcer and chief Italian program time- broker. Gallucci was president of the Massachusetts Federation of Do- polavero. a Fascist front organiza- tion, it said. FCC also had investi- gated Ubaldo Guidi, another an- nouncer, who had close contact with the Italian consulate in Boston and was widely known throughout New England as an organizer of a Fascist group. Since Pearl Harbor he has been interned. Italian broadcasting on the station, FCC said, was begun at the direction of the late Luigi Fiato, who was executive secretary of the Boston Fascio of the Fascist League of North America. Shorter 'Green Valley' 'Green Valley, U. S. A.,' which Hi Brown presented as a 30-minute Sunday afternoon sustainer last fpring on CBS, starts Jan. 4 as a 15-minute sustaining serial 4:15-4:30 p.m., Monday through Friday. Brown will again direct it, but the writer Isn't set. Millard Lampel formerly authored It. Series will be for sale. Barbasol's 'Sam' On ^2 Mutual Stations Barbasol will use 62 Mutual sta- tions for the nightly 'Singin' Sam* series which starts Jan. J. Time Is 8-8:15 p.m. The program supplements the same account's Gabriel Heatter broadcasts on the same network. Sweets for Stoopnagle Schutter Candy Co.. of Chicago, will start a Sunday matinee series (1:45-2) with Col. Stoopnagle on CBS Jan. 10. Roche, Williams & Cunnygham Is the agency. Esty Hunting Spot Time for Supersuds The William Esty agency is scout- ing around for availabilities for spot announcements that will plug Su persuds. The schedules are to start after the first of the year. Beulah Straway Doubles Between WLW and OPA Cincinnati, Dec. 22. Beulah Straway, director of WLW merchandising for the past five y ars, last week received appoint ment as a consultant with the Office of Price Administration. She will divide time between the Crosley organization and Washing- ton, giving attention to the Point Rationing Plan and spreading in- formation to food wholesalers and retailers. Shepards Get Most of $1^,000 Yankee Net Sale Price m Cash Gerard S«ltl«$ Suit Oo A. &C. Broadcasts Settlement has been reached In the suit brought by Barney Gerard, old-time burlesk producer and scripter, against Bud Abbott and Lou Costello, National Broadcasting Co., J. Waltet Thompson agency and Standard Brands, Inc., for alleged in- fringement. Amount involved in set- tlement was not disclosed. In suit filed in N. Y, federal dis- trict court, Gerard charged that two sketches used by A, ti C. on the Chase & Sanborn air stanzas June 1 and 15, 1941, were copyrighted ma- terial written by Gerard for his 'Fol- lies of the Day' burley editions back in 1918-20. L&T DROPS RCA: REASON IS VAGUE The Lord & Thomas agency has resigned the RCA account and there is much speculation in the adver- tising trade as to motive for Albert D. Lasker's action. One reason ad- vanced is that the L. & T. owner had become peeved over an RCA campaign falling through after the officials of certain RCA subsids had approved it, and another speculation has it that Lasker may be pruning the L. & T. list of accounts pre- liminary to a major change in policy. After L. & T. had notified RCA of its action, the Blue Network got in touch with the agency and asked that it go on handling its account. The NBC account was not involved in the resignation. SILVER THEATRE PASSES UP RETURN TO M Hollywood, Dec. 22. International Silver, which for years has sponsored the dramatic series. Silver Theatre, is passing up radio this season. Unavailability of early evening time spiked plans for a return to the networks. Due to budget restrictions. Young & Rubicam was preparing to use medium priced l3lent. Such play- ers are expected to be in high de- mand if the ceiling on salaries sticks. Carlo De Angelo Vice Peterson at M-P Agcy. Carlo De Angelo has Joined the Marschalk & Pratt agency as radio director, succeeding Curt Peterson, who joined the Army Air Forces, at Miami Beach. De Angelo was for- merly with Elli.<:, Lennen & Mitchell, Blackman and Ayer agencies and has been a freelance director. Besides handling the Esso news series for M. & P., De Angelo will continue to direct the Treasury De- partment's 'Bond Wagon' series Sat- urday nights on Mutual. Mrs. Fadiman to Chronicle Children's War Efforts Mrs. Clifton Fadiman will con- duct 'Children and the War,' a new series of talks and interviews, Mon- day afternoons, starting Jan. 4, on CBS. It will be a 15-minute sus- tainer. Editor of the Child Study Assn. publications, Mrs. Fadiman is the wife of the 'Information, Please' quizmaster. Natural Affinity U. S. Tobacco Co. is buying spot announcements on southern stations for its snuff product.s. The account wants to place them adjacent to hill- billy shows. Arthur Kudner is the agency. Boston, Dec. 22. aI^c Shepards will get in cash most of the price, reported to be 250,000 obtained from the sale of their station holdings to William O'Neil, president of the General Tire ti Rubber Co. Local broadcasting circles are still pretty much puzzled about CNeil's reason for going into the broadcasting business, unless it is to build up a competence Tor hia son,- William, Jr., who now operates WJW, Akron. John Shepard, 2d, and his son, John, Sd, had been actuated in the transfer strictly by an inheritance tax problem. The father is in his 80's. John, 8d, will stay on to oper- ate the properties for the O'Ncila and he and his general manager, Linus Travers, will hold posts on the directorate that the buyers set up. The properties include WNAC, Boston; WICC, Bridgeport; WEAN, Providence; WAAB, Worcester, and an F-M station. MBS Shepard Deal Until '45 The Mutual Network has a con- tract with Shepard which runs until 1045, and it contains but one con- dition allowing for the agreement's termination before that time. In the event of the sale of either oper- ation, the other party may cHncel if it doesn't thinK' the new owner- ship satisfactory. Mutual has al- ready declared itself as gratified with the new owner of the Shepard properties. Post-War Expansion Plans Akron, O., Dec. 22. William O'Neil, Sr., president of the General Tire and Rubber Co., Akron, who has purchased the 21- station Yankee network, covering New England, said that the pur- chase was the first step in the com- pany's post-war expansion plans. He said General Tire engineers now have developed many radio and other devices that will be ready for manufacture and marketing as soon as the war is over. O'Neil said, "Through this network we expect to tell the people of New England of the scientific advancement which has been made in recent years in synthetic rubber and in other new materials as yet unknown to 4he public' William O'Neil, Jr., son of the rubber company executive, is the owner of WJW, Akron, which re- cently received authority from the FCC to transfer the local studios lo Cleveland, where it will become the Blue Network outlet. Cecil Hobnan Grinds Out Scripts in Safety Drive; Cops Couriers Kansas City, Dec. 22. The Kansas City police maintained a special delivery service for radio scripts last week when Cecil Hoi- man, who lives in the outskirts of town, sat at his typewriter banging out some 18 quarter hours for use In a 'Beat the Seventh Column* (acci- dents) campaign. Police patrol car made at least one trip daily to Hol- man's home and took away radio .scripts to WDAF, KCKN and WHB. and to the headquarters of William Kostka, representing Liberty Mu- tual Life Insurance and the Insti- tute of Public Relations. Kostka was here from New York working with the Kansas City Safety Council. In all, some 24 quarter hours were donated to the safety drivi by Kan- sas City broadcasters. KMBC's own writing staff added eight scripts to those Holman freelanced. Police, fire and other civic departments and leaders cooperated in the educational drive. Indpls. Tabernacle Off MBS; Evangelist Dead One of Mutual's two Sunday aft- ernoon periods of sponsored religion ^oes by the board Jan. 10. It's the pickup from the tabernacle in In- dianapolis. Howard Kadel, evangelist, who started and conducted these broad- casts, died several days ago and his family has decided to drop the ra- dio connection.