Variety (Sep 1946)

Wednesday, September 18, 1946 fiAnio 2S PEARSON-ALLEN IHY WBAL RAID FCC Modifies, local Live Rule, Easing Up on Wire News Services Washington, Sept. 17. t Degree to which wire service (AP, UP, INS. etc:) news is rewritten or i'dited for local consumption by a radio station staffer—and not th ? oiisiii or subject of the news itselt —will determine whether a new.s slot will be classified as "local live'' or "wire" under standards of the FCC's Blue Book, it was leaned here last week. Further interpretation of these sec- tions oC tlie Blue Book—amended by FCC July 2—was made public last week with release of an Aug. 30 letter from acting FCC Chairman Charles R. Denny, Jr. to Robert W. Brown, executive news editor of In- ternational News Service. Brown, who protested the Blue Book's orig- inal language, had asked Denny on Aug. 1 for further clariflc^ition- ol the Jfuly 2 amendments. The FCC chief made it clear this time that the Blue Book now does not require that 50% or more of a news program be devoted to purely local items in order that it be class- iiled as "local live" in the logs. Substance Counts Said Denny's letter: "A news pro- gi-ani based on material received by wire, but more than half of which is very substantially edited and rewrit- ten by a station staff member or by a writer employed by a sponsor, and announced in its edited and rewrit- ten form, should not be classified as a'wire program.'" For example, it was pointed out, a program which was no more than a verbatim reading by a New York station of a wire news text 100% concerned with local New York af- fairs would still be wire. On the other hand, a program of national aiid international news based entirely on material furnished by a wire ser- vice would be rated "local live" if more than half of it had been "sub- stantially" rewritten in the station's newsroom. Commission had no intention, Denny insisted, of casting "aspsr- •sioiis on wire news programs or to : discourage their use," adding that FCG has always recognized the im- _ portant role they play in radio Brown, whose last fears wereisooflied by the FCC letter, issued answering statement last week rejoicing that the ' implication of penalty against conscientious news programming based on teletype news reports" had been removed. ; CBS Midls Recoup On Como's Buildup . CBS is currently" going through a siege of worriment over the Perry Como situation. Como, who has de- veloped into one of the top-bracket personalities on the air, is still a CBS property. But as star of the NBC "Chesterfield Supper Club" show, he's become identified with the latter network, which is reaping the , benefits of the current Como buildup. And CBS doeisn't like it. The CBS programming dept. is currently mulling a show for the singer. Since he's still a CBS "prop- erty," the network has the right to yank him off the Chesterfield pro- gram, depending on the time slot cho.sen for the show. The situation i-sn't resting any too well, either, with Newell-Emett aeenqy, which handles the Chester- field program. Move comc» at a time when the show's other sparkplug, Jo SlafToid, is contemplating switching tu tlie Coasst. If it loses both Como and its femme singer the program woiild be tossed for a considerable lOS.-i. The Conio-CBS Situation is analo- gous to the problem that confronted Garry Moore when he teamed up witli Jimmy Durante for the CBS «how% Moore was an NBC "prop- erty," but in that instance he man- ^fied to obtain a relea.se from his contract. " Painful Payoff In view of the: 9.7 rating pay- off for the Arthur Godfrey "Tal- ent Scout" show on CBS in a wci.'k, XAug. 30 )' when the top rat- inij jn all radio was clocked at 11.3, there's' more than a little bafllement a.* to why the show is stiir riding ihe, sustaihitlg" eir-!^ f'uii and hasn't been grabbed up foi' sponisbrship. One ol; the' CBS execs put it , this way; "The agencies haven't bought it because it's a hoiise- built show. It doesn!t make them happ.y to know that the networks can build shows, too. If anyone else had packaged it, they would have, hopped on it at once." Five Want Phiily FMObys, Three Others Drop Out Philadelphia, Sept. 17. Five applicants for the four re- maining FM channels in Philly pre- sented their ca.'ies before an ex- aminer of the FCC at the U. S. Cus- toms House here last week. After four days of testimony, marked by rapid-fire cross-examina- tion of witnesses by FCC Attorney J. T; Hall, the applications were taken under advisement. On the strength . of examination and com- ment by Examiner fcharles Hubert, it is believed that the preference for the FM licenses. would go to ex- isting AM stations. . Applicants heard were WDAS, WHAT, both existing AM outlets; 'WJMJ, which has an FCC okay for construction of an AM station; the Unity Broadcasting Corp., subsid of the International Ladies Garment Workers Union: and the Franklin Broadcasting Corp., a group of Philly attorneys. Three other applicants withdrew their petitions—just before the hear-' ings. They were the Amalgamated Clothing Workers of Americaj the Crescent Broadcasting Co., and Rev. Percy Crawford, Philly evangelist. Odd sidelight at the hearings was the appearance of Patrick J. Stanton in the dual capacity of vice-prexy and general manager of WDAS and president of the WJMJ Broadcasting Co., whicli intends to start construc- tion soon. It is believed that since every other local AM station has an FM outlet or a permit, the FCC would have to grant one to WDAS and WHAT, now on the AM band. Any other action might be construed as discrimination against the two out- lets. WDAS originally applied for an FM permit in 1942 but was asked by the Government to withdraw it until after the war. ANACIN CLOSES BOOK ON 'REAL STORIES' Anacin (American Home Prod- ucts) is dropping sponsorship of the 15-minute "Real Life Stories'' cross- the-board nighttime show on Mu- tual. Last broadcast under its pres- ent commercial auspices is Oct. 4. Mutual kept the show on sustain- ing during the summer, with Anacin resuming the bankrolling until it fulfills it.'i contractual obligation. Strictly a budgetary gesture, in view of American Home Products plunking down heavy coin for spon- sorship of the Bob Burns show this season. I Ives-Philco for Mutual ! Philco Corp. has inked Burl Ives i to a disk Joal on the Mutual net- S'-worfc.-;; ■ ■ [ Beginning Oct. 18. Ive.»! will be ; aired over the web in a transcribed, i 1.5-minute show, Frida.v.s, 8-8:15 p.m. I Agency is Hutchins. BAS[ ACTION ON FCC mi Station Permit Given Financier Who Had Know-How-But No Con : Waishington, Sept. 17. Biggest bombshell in radio since release of the FCC's Blue Book was dropped here today when nationally known newsmen Drew Pearson and Col. Robert S. Allen, of "Washing- ton Mferry-Go-Round," put in a bid at FCC to tSike over the facilities o£ William Randolph Hearst's powerful clear-channel outlet and top money maker, WBAL, Baltimore. Leaning heavily on precepts set! forth in the FCC's Blue Book, the Pearson-Allen team coolly made an- plicatioh for the estimated $6,000,000 I prize on ground that, on the basis of,I the record,- they could .do, a better job of programming WBAL in the public interest. The two were mspired by the Blue Book which last spring pointed a finger at the Hearst station as an outstanding example of failure to live up to program promises and of general over-commercialization of program format in defiance of the public interest. The commission tabbed WBAL's renewal license tor a hearing on these counts, and then postponed the hearing twice, report- edly on hope , that a second bidder would challenge Hearst's right to a coveted clear channel. The Pearson-Allen bid is looked on as the first big test of the Blue Book in action, >vith FCC placed ■squarely on the spot to prove it will stick by or forego the high-minded sentiments of that report. Situation is doubly complicated for the-com- mission, since WBAL has cleaned up its program format and added sev- eral sustainers and public service slots since last spring in an eleventh- hour effort to keep its Ucense. Observers here are al.so looking for a bitter legal battle over rights of FCC to act in this case, with top legal counsel slugging it out, first before the commission and later in the courts. . Pearson and Allen have hired Cohn & Marks as their special counsel, while Hearst switched law- yers in the middle of the stream -mi put Paul Segal, victor of two Supreme Court battles with FCC, on his payroll. The challengers nave incorporated as the Public Service Radio Corp., with "capitalization of-100,000 shares at $5 par value. Pearson and Allen will each hold 50% of the stock, sub- scribing to $125,000 worth and bor- rowing an additional $260,000 froni th«i bank; Both Pearson and Allen list their net worth in excess of $100,000. « Allen, formerly Pearson's partner on "Merry-Go-Round," is president of the company; Pearson is veepee- treasurer; and Eli Frank, Baltimore attorney, is secretary but holds no stock in the corp. Allen, on release from the Army, was due to head wo the Philadelphia Record's Washing- ton Bureau, but will move to Balti- more and take over active direction of WBAL. in event FCC yanks Hearst's license. Hold Details The application is bare on pro- posed programming, but it is specu- lated that Cohn & Marks are with- holding their ammunition for the hearing—now slated for Oct. 1, but probably due for postponement to give both parties more time. i Pearson's role as challenger to Hearst revives memories here of the bitter feud Which boiled over sev- eral years ago between the column- ist and his ex-mother-in-law, (Continued on page 37) They're Still in Love Washington, Sept. 17. Report that Pearson and Allen are teamed up again as sole stockholders in company bidding for Hearst's bigtime station, WBAL. has put the kit>osh on earlier rumors o£ a rift between the two top newsmen. Allen, overseas with 'Gen. Pat- ton's Army for over three years, did not return as Pearson's part- ner in the "Washington Merry- Go-Round," but is slated to take over the No. 1 job of running WBAL^in event the FCC sees things a certain way. John Bricker At Head of Bid For New Ohio Station Washington, Sept. 17.. • Latest bigtime politico to enter radio ownership field is John W. Bricker, GOP vice-presidential can- didate in '44 and favored to pick up U. S, Senate seat in Ohio elections this November. Bricker is veepee and a' 25% holder in Capital Radio; Inc., which last week filed bid at FCC for a new station in Columbus. Bricker, who informed the FCC that he is the man to be contacted on all details of the application, is associated in the radio company with several wealthy and politically- powerful newspaper and business- men.-'" President of the company is John Galbreath, chip-^heavy Ohio real es- tate and insurance man, who was one of Bing Crosby's partners in the recent purchase of the Pittsburgh Pirates ball club. Galbreath has an- other 25'; interest in the Columbus station. Another director is Austin Wood, vice president and general manager of the 16 Ogden new^apers in W. Va; The chain which Wood runs has applied with FCC to buy 'WPAR, Parkersburg, and WBLK, Clarks- burg. W. Va., and is already owner, through the Parkersburg Sentinel Co., a subsidiary newspaper, of WOPK, Marietta. Also tied in the Bricker applica- tion is O. Bennett Larsen, present manager of WPEN, the Philadelphia Bulletin station. Larsen once held a piece of WWDC/ Washington, and now owns a 25% block of WHOWj Inc., which is bidding for a new AM outlet in Baltimore. Third director is S. L. Keller, director of UP for- eign features in New York. Wood, Larson and Keller each hold 16% of capital stock.. Company has an' authorized capi- tal of $100,000, says it is not in- terested in a net affiliation in Co- lumbus, but will do a purely local programming job. If FGC okays the AM operation. Capital will apply for a local PM. channel, its application states., , Wa.«;hington, Sept. 17. FCC gave its blessing to a new • type of rcdio promotion here last Friday (13) when it okayed a con- struction permit to the St. Louis City Broadcasting Corp. for a new ■ regional watter in Claytpti, Mo.—a pint-sized suburban community out- side St. Louis, The commisKion knowingly okayed as means ol financing a radio opera- ation what so far as is known, was the first "public offering of .stock'' in a radio station which was not even a fact on paper, Id,:;a for the station came to Guy Runnion, long-time emplovee of CBS-KMOX. St. Lotiis. With plenty of know-how but no dough, Runniotx. sought advice of his Washington . counsel, Cohn & Marks, on how to raise the money. He conceived idea of running ads in the papers and distributing ilicrs and blotters urging people to buy stock in a statio,n he might be able to get sometime ii. the future. Butchers,, bakers and all types of local business people bought up small pieces in the non-existent station. Runnion, keeping everything on the up-and-up, registered the stock sale with the Missouri counter- part of the Securities and Exchange ^Commission. Everybody who wanted to buy was permitted to put up his money; the only limitation being that no one individual could get more than so many; shares of the stock. Result is that Runnion ^ though still maintaining control of the sta-; tion's operation—now has a compan.y in which half the community has a stock interest. / Schechter's New Setup A: A. Schechter, Mutual's veepee in charge of news, special events and publicity, has revamped n num- ber of strategic spots in his division. Jack Paige, until now with WOL, Wa.shington, is coming to New York to head the web's special events, Paul .Jonas became director of sports for the net. Dale Morgan, who's been with WOL, stays On but is upped to the network's director of .special events in the capital. Lou Brott, until now on the WOL news staff, becomes WOL-Mutnal publicity director in Washington. Tops' Nixed Major Bowes Routine, to Expand 'Tops' For 60-Min. ABC Sun. Show With Ford Motor canceling its Sunday night 8 to 9 "Fc-'.ival of American Music" show on ABC, Paul Whiteman is moving into >he hour spot, expanding his "Forever Tops" show that's been occupying i .lO-minute Monday night segment, Whiteman takes over the .Sunda.v- time on .Sept. 29. ABC programming execs and Whiteman were mulling the possibil- ity of "Pops" heading up a show reprising the ex-Major Bowes rou- tine of develoEJing new talent via amateui' aiiditioning. But final for- mat decided upon will stick to Iho '"Forever Tops," .strictly pro-variety session, with Eugenie Baird, Johnny Thompson, etc,, plus additional chorus units. UOPWA's Clean SweepatWMCA The Radio Guild of the Jnited Of- fice and Professional Workers of America (CIO) this week' is signing its first white collarite radio eon- tract in New York, with the indi« WMCA, With the coUarites' collec- tive bargaining election at CBS a.s yet undccid(!d, iilthough the election was held in mid-June, the Guild is now goina after the h. q, of the throe other nets, and is also reported pressing for organization of come of New York's other major indies on the basis of the WMCA pact. Embracing 60 people at WMCA, the contract provides for the union shop, perierential hiring, the check- off, ,$30 minimum for lowest cate- goj-y, pay increases ranging from $7.50 to $10 a week, increased vaca- tions, seniority and priority; griev- ance procedure, and arbitration of all grievances including discharges for whatever cause. The contract is retroactive to Aug. 5. Meanwhile, there in impatience all the way around with the National La'ior Relations Board's failure to coma through with definite decision.'; on the CBS elections. The UOPWA, International Brotherhood of Electri- cal Workers, and CBS are concerned in one decision—about the main bar- gaining .unit for coUarites. Voting on this unit gave the UOPWA 'first place, the company (i. e.. no union at all) second place, with IBEW third. It's up to the NLRB eiiher to oertify the UOPWA if it has enough voles after challenges are got out of the way, or order a runoff ballot ano decide which of the (Continued on page 34) . Frigidaire Cold To 'Hollywood Star Time' Holly wood. Sept. 17. Frigidaire is shopping around for, a new show to replr.ce its "Holly- wood ■ Star Time." There's a strong possibility that the bankroller may latch on to the Herbert Marsh-^'l "Man Called, X" show which >ias been a perennial summer fillerj '.lis year subbing for Ptpsodent's ►Job Hope program.' Several other pro- grams are also boin'.', considered But it looks like the current pix adaptation series is headed for tha scrap ,h<>iip. , , ■ ■' ■ • ^