Variety (Jul 1946)

Wednesday, July 17, 1946 RADIO 27 ADMEN SHIFT DOLDRUM BLAME Canada's Federal Radio Minister Proposes Splitup of CBC Authority Toronto, July, 16. Federal Radio Minister J. J. Mc- Cann has proposed a reorganization of the Canadian Broadcasting Corp., which will separate the duties of the CBC board of governors from the CBC station operation adminis- tration. As submitted to the Canadian government's Radio Com mitlee, this was his compro mjse to the urging of the Cana dian Assn. of Broadcasters, com prising independent stations, that the Federal government set up a special board of appeal to act upon complaints oi tne indies against the CBC, the board to have power to interpret, rescind or amend current CBC regulations. Dr. McCann was not specific in defining the duties of the two proposed CBC groups' splittihg up of authority, his suggestion com- ing as a surprise during the last few minutes of the Parliamentary Radio Committees session, but it will be further discussed this. week. Earlier in the meeting, the CAB {representing 81 independent Cana- dian stations) proposed establish- ment of a commission which would take over regulatory control of radio in Canada arid have jurisdiction to hear complaints involving station power- increases, frequency alloca- tion, and applications for new li- censes in AM channels, FM, fac- simile or television. The indies, in a 68-page brief, also drew attention to the annual un- certainty as to whether or not estab- lished stations may renew their li- censes for their accustomed wave- lengths when this comes up for CBC okay. $78,000 Deficit The hearing also brought the dis- closure that the CBC deficit for the fiscal year will not be $37,000, as previously reported to the Parlia- mentary Radio Committee by Au- gustine Frigon, CBC: g.m., but will be $78,000, he said, without any.cov- ering of plant and equipment de- preciation. Frigon's disclosure came when CAB-spokesmen: charged that CBC's deficit this year will be more than $250,000^ but Frigon stated that, while the $78,000 figure was ad- mitted, the CBC board of governors . had decided not to charge anything this year against plant and equip- ment depreciation. He said the CBC had written down its assets from $3,184,000 to $980,000 and felt that this warranted a write-off on de- preciation which justified its npt being charged in the current "lean year." Frigon said this was the first time the CBC had never charged a sum against depreciation and ob- solescence. Harry Sedgwick, CAB prez. and managing director of CFRB, Toronto (whose wavelength the CBC has expropriated), appeared before the Parliamentary Radio Committee to press the independent staitons' case for regional network which, apart from the CBC's two national net- works, might be sold to sponsors. He said that, while occasional hook- ups were permitted to indies by the CBC, this was only on condition that CBC line facilities be used but that such were prohibitive in cost. It was felt that, if private stations, on a co-operative basis, were al- lowed to make their Own deals with communications service on so many hours' hook-ups a week.they could obtain a deal whereiby provincial or district network .would be the out- let for better commercial programs. Add R&R to SSC&B Exodus from the Ruthrauff & R yan agency continues with the resignations of Daniel O'Meara and Joseph E. Connor. Both are joining the new Sullivan, Stauffer. Colwell « Bayles agency as drug and food account execs respectively. At R&R. three new veepees were appointed. Reggie Morgan, the agency's first woman veepee, was named head of the radio commer- cial department. Others are Robert Ha 'hn, associate director of the •Bency's Hollywood radio office, and Michael F. Mahony, account exec and member of the plans board. In Canada, Too Montreal, July 16. The oft-disputed issue as to how much "domination," if any, existed over a radio station tied in with a newspaper came up Thursday (10) at the Parlia- mentary Radio Committee when M. J. Coldwell, leader of the so- cialist C. C. F., urged that the committee should consider action to divorce relationships between . stations and papers. It was revealed that about 25 stations in Canada are owned by newspapers. Harry Sedgwick, who spoke for the CAB, said that either multiple ownership of radio stations or ownership of a ■ newspaper was a threat, to free- dom of speech depended on how the stations was operated, "The policy is to stay away from editorial comment in ra- dio," he added. After another bit of small talk and petty peeving, the matter was left where it began—up in the air. 'Queens Gripe On Royal Runaround Chicago, July 16. , Two radio editors on Chi dailies look hefty punches at the networks last week, pointing up the increasing "sic 'em!" attitude of newspapers here radio-wise. . How to get readership but how definitely not to win friends on the webs was illustrated in his kickoff column by Ulmer Turner, new radioed of the Chicago Sun, succeed- ing Betty Burns. Adele Hoskins of the News raked Mutual over the coals' for making it tough for gals who win the "Queen for a Day" title to latch on to their prizes. Under the heading, "New Radio Heads Urged for Chicago Radio," Turner wrote: "Network tycoons, agency folk and local talent have all held powwows, trying to figure why Chicago—once America's radio capital—no longer holds that title, and why programs continue to desert here and traipse to the East, or West Coasts. . . . "Remember when 'Empire Build- ers', and similar extravaganzas radiated from Chicago studios, when a newcomer named. Ameche was helping build up 'First Nighter,* and when NBC here built a big experi- mental network show around Thurs- ton the magician? "Chicago radio had something else in those days. It had program directors like C. L. Menser and Sid Strotz — men with imagination enough to design top programs (Continued on page 32) PLACE BURDEN Gabe Heatter in fHr. Dramat Show Being Set For Fall Teeoff on MBS WOR, N. Y., is building a show around Cabriel Heatter, in a half- hour program combining the com- mentator and drama. Program, given a big production, will be a sort of inspirational show, dramatiz- ing achievements of people who've overcome personal, social Or busi- ness handicaps to make success stories of themselves. Heatter will figure as narrator. Show will start in the fall, and will be offered for participating sponsorship on. the Mutual net. Bahkroller nibbles are pretty hot, with several N. Y. sponsors in the bidding. New show won't affect Heattcr's present cross-the-board, sponsored news programs on Mutual. This will be the first time in years that Heatter has done a show other than his newscasts. At one time he was moderator on the "We, The People*' .program. Responding to claims that they lack courage to attempt a newness in programming and to project new acting and writing, talent into the forefront, ad agencies last week countered with a two-prong rebut- tal. Some of them put the onus on what they term the "evil of the rating system"; others maintain that not until sponsors can be convinced .that shows aren't made overnight, arid that it. takes nursing and patience with a show, will the pic- ture materially change. It's .the feeling of agency men that the real task that lies ahead in help- ing to achieve a healthier radio pro- gramming setup is in educating the sponsors to the fact that the Bob Hopes, the Fibber McGecs, etc., weren't overnight sensations, that it required months and months of dili- gent reshaping of their shows before they hit their stride in radio. And unless sponsors fall out of the habit of demanding an immediate rating payoff, they . argue, the agencies themselves are licked. That's why, it's maintained, the sole contribution being made today toward Introducing anything- new in radio comes from network-built sustaining shows. All these moves, particularly on the part of CBS, which is trying to groom a flock of new personalities, must be encour- aged, they point out, regardless of the initial success or flop of the in- dividual ventures. NBC's showcasing of Bernie West as an upcoming comedian, and its new Sunday "Lucky Stars", talent development show, which preemed last Sunday (14); CBS' venture into a variety of formats with its "Night Life," etc., and coast-to-coast spot- lighting of John Faulk, Larry Carr, Sweney & March, among others, are cited as steps in the right direction, FM Lay-Away Plan Kicked Around At FCC But Shelving Seems Sure; AM Almost 100% Vs. Reserve Idea N. Y.Y Revitalized Local News Setup; Inch Up on Dailies WABC, the CBS flagship in N. Y., has joined in the move to revitalize news programming aimed at giving new emphasis and top billing to local coverage. It's the climax to a succession of recent moves which changes the pattern of news pres- entation on New York stations, par- ticularly among the web flagships. Most ambitious of all was the recent tiein effected by WEAF (NBC) with a group of newspapers for its new "Metropolitan News Roundup" series. Feeling among the stations is that the newspapers in the past have had the field pretty much to themselves; that strictly New York City-slanted news has been given the brushoff, and that only N. Y. news items of national interest were being fed to New York City listeners, simply be- cause of the "network conscious- ness" of the key stations. In addition to WABC and WEAF. there are other illustrations of how the stations are inching up to news- paper coverage. WQXR, owned by the N. Y. Times. is : now being fed every hour on the hour direct from the Times editorial rooms. WOR gets its last-minute flashes from the N. Y. Herald-Tribune newsroom. WNEW gets similar service from the N. Y. Daily News. WABC has installed Don O'Flah- erty as news editor. Four local news programs are fed to the listeners daily. In addition. Bill Leonard's morning cross-the-board show aims at a "scoop" technique, but along feature story lines. Leonard has three leg men working for him on a 24 - hour - a - day - seven - days a week basis. Organization Wanted ■ . Washington, July 16. Need for a mouthpiece through which small time broadcasters— particularly the exclusive FM broadcasters—can get the ear of the FCC was voiced here last Friday (12) by Raymond Kohn, president of the all-vet-owned FM station in Allentown, Pa. He told the FCC: "If the large broadcasters and the NAB spent half the time in promoting FM that they do in fighting every little issue that comes up on legalistic grounds. FM would have been in operation six months ago:" Kohn, who with his four bud- dies went after an FM station immediately on' release from the armed services, said it was un- fortunate the commission doesn't have the opportunity to hear the little fellow as often and through the same type of legal talent that speaks for the big lobby groups. . Morgenthau, 3d Wants FM in N.Y. Henry Morgenthau, 3d, son of the ex-Secy, of the Treasury, plans to apply for a metropolitan FM chan- nel. Morgenthau, a veteran of World War II, sent a letter to the FCC on behalf of himself "and a group of New York City resident veterans" for submission at last Friday's (12) FM hearing in Washington urging the setting aside of every fifth chan- nel in New York for possible future licensing to veterans, and setting forth his own plans as a broadcaster. In anticipation of an FCC query as to why the. application could not have been made in time to be con- sidered at the July 8 hearings of the Commission in N. Y., Morgenthau told the commission: "Like most other recently re- turned veterans, I have required some little time to assess the condi- tions of postwar civilian life, and to make decisions with regard to my future activity. It has taken time for me, and those with whom I am associated, to inform ourselves fully as to the opportunities and obstacles in the FM field and to assure our- selves that we have had firm finan- cial and technical foundation on which to build such an enterprise." Young Morgenthau's letter to the Commission points out that his pro- jected service of the station envis- ages facsimile as well as sound trans- mission, "and also another type of service which to the best of my knowledge is unprecedented." It's known that young Morgenthau has enlisted the aid of some practi- cal, sound broadcasters in the pro- jected station to insure well-balanced programming and, himself coming from a wealthy family, there is ample coin behind the venture. It's considered likely that the Secy, of the Treasury under President Roosevelt will figure in the enter- prise. Latter did a recent series of sponsored commentaries over a "pri- vate network" of five stations, in the east and on the Coast. $10,000 Radio Giveaway "Sweepstakes." new audience par- ticipation quiz show packaged by ALS Co., making agency rounds, with several sponsorship' nibbles re- ported. Half-hour show will have Bill Slater as probable emcee. Although a steady budgeted weekly show, re- ported angle is that a contestant may win as high as $5,000 to $10,000 on the program. Washington, July 16. Oral argument here last Friday (12) on FCC proposal • to lay away some 100 FM channels throughout the country for later assignment found the standard radio broad- casters almost 100% anti, while in- dependent FM station operators, vets, labor unions and co-ops warm- ly endorsed the reservation plan. As a result, observers here be- lieve the commission will adhere to its original, plan to shelve part of the FM spectrum tor the time being. The FCC bench seemed par- ticularly pleased with testimony of independents that a.more equitable distribution of FM channels both among competing communities and competing bidders would be possi- ble a year from now, when every- body who wanted to get into FM would ■ presumably have had time to let FCC know about it. These were the highlights of the oral argument: FM-minded Sen. Glen Taylor (D., Ida.), of the Senate Small Business Committee, filed a state- ment endorsing the reservation plan, with the proviso that the . Commis- sion consider extending the one- year limit if necessary at the end of that time. Taylor urged the FCC to push FM, since, he said. "AM broadcas- ters who come to FM merely to es- tablish squatters' rights, are obvi- ously not going to do this." The Idaho senator referred to. a state- ment at an earlier FCC hearing by James Shouse of the Aviation Corp-. (Crosley Radio) to the effect that "FM would never replace AM." He also recalled testimony by Mark Woods at the ABC-King Trend le hearing last week. Taylor said that, although FM will give better cover- age and better service than AM in Detroit, ABC is spending only $33,- 460 on FM and $2,800,000 for AM station, WXYZ there, (However $2,000,000 of this figure, represents good will on WXYZ operations.) Those who fought the channel reservation plan by-passed argu- (Continued on page 34) Literary Guild Drops Sponsorship of'Books' Despite Court Victory "Books on Trial," which has had its real-life court tribulations since it went on the Metro-owned N. Y. indie WHN, has now undergone an- other trial, Having won its court case, it now has lost its sponsor. One exec put it this way: "The* operation was successful, but the anemia is pernicious." "Books" preemed May 20, a week after Martin Stone's old WHN-aired package, "Author Meets the Critics," moved over to the N. Y. Tiroes sta- tion WQXR for local airing. Stone sought an injunction against "Books,* claiming unfair competi- tion and breach of confidential re- lationship, After a-three-day trial in the supreme court in N. Y., Jus- tice Botein ruled against both of Stone's claims. The court went out of its way to commend both shows for serving "a highly useful and in- formative public function." With the court victory in its belt. "Books" was demed set when sud- denly the bottom fell out of its cash register. The Literary Guild, spon- sor of "Books" (Book of the Month Club is Stone's bankrollei- on WQXR) decided it had enough. Rea- son: "Cost per inquiry" was too hish. WHN people were frankly let down by the Literary Guild's de- cision, and the. book outfit's execs admitted they had had a weekly mail pull over the two months of their sponsorship ranging from 100 to 700 letters per week. But the Guild says it's had enough. . . As of this week (15) "Books" be- came a sustniner. But WHN, bolstered with judicial recognition given its show, hopes to snag an- other coin spender by fall.