Weekly television digest (Jan-Dec 1963)

NEW SERIES VOL. 3, No. 3 TELEVISION DIGEST— 5 Payment of $523,000 by NBC to Philco for expenses, after latter's pulling out of Ch. 3 fight in Philadelphia (Vol. 3:2 p4), should not be authorized by FCC — according to Commission's Broadcast Bureau, which said: "On all of the facts, we cannot escape the conclusion that a serious question exists as to whether in fact the activity of Philco in advocating its application, was for the purpose of enhancing its bargaining position, vis-a-vis RCA, in the civil anti-trust suit." At the moment, betting at Commission is that payment won't be authorized. New Pay-TV Group Files With SEC: Home Entertainment Co. of America Inc. & subsidiary Home Entertainment Co. of Los Angeles filed registration statement (SEC File 2-21017) for 230,000 common shares on the subsidiary & 23,000 5-yr. common purchase warrants on parent. Warrants are exercisable at $10 per share. Units consisting of 10 shares & one warrant will be offered to public at $100 per unit through imderwriters Bernard M. Kahn & Co., N.Y. Company was organized in Sept. 1962 to develop & promote pay-TV system in Santa Monica, Cal. Prospectus points out that system hasn’t been installed or tested, said there is no assurance that it’s commercially feasible. Proceeds of sale will be used by subsidiary to establish system serving 20,000 subscribers in Santa Monica and to provide working capital. Parent company has 211,200 common shares outstanding, of which Pres. Oliver A. Unger owns 25.4%, Bernard M. Kahn, a dir., 18.9%, and management officials as a group 61%. ■ I Quick hearing on satellite communications was called for Jan. 29 by Chmn. Magnuson (D-Wash.) & Sen. Pastore (D-R.I.) of Commerce Committee. Purpose, they said, was to find out what went wrong with Telstar & Relay when they were silent. Testimony will be offered by FCC, NASA, AT&T, RCA. Meanwhile: (1) AT&T said Telstar II will probably be launched in May, have 5,000-mile apogee, compared with 3,100 miles for Telstar I. (2) ITT, using Relay Jan. 17, carried exchange of phone messages between Secy. 1 of State Rusk and Brazilian Prime Minister Lima. Transmissions were between Nutley, N.J. & Rio de Janiero. (3) , In Jan. 19 TV Guide, AT&T expert J. R. Pierce, echoing I Western Electric Pres. H. I. Romnes (Vol. 2:47 p3), said that the great improvements in transistors may “give us commercial transoceanic TV first” if there are delays in I satellite development. Add bills introduced: (1) HR-43 by Bennett (D-Fla.), to set up U.S. Administrative Court to handle adjudicatory I matters of regulatory agencies. (2) HR-2054, Scott (DI N.C.), to repeal excise tax on amounts paid for communicaI tions services or facilities. (3) HR-2096, Huddleston (DAla.), to prohibit charging of fees to view telecasts in the I home. (4) S-251, S-252, Sen. Pastore (D-R.L), to suspend I equal time for 1964 Presidential & Vice Presidential campaigns, and to amend Communications Act to make Sec. I 315 non-applicable to candidates for those 2 offices plus ! Congressmen & state Governors. False advertising charge was leveled at American Home Products Corp. for its “Outgro” TV commercials (Vol. 2:17 p4) by FTC examiner. Citing experts’ testimony that preparation is ineffective in treating ingrown toenails. Examiner Andrew C. Goodhope ordered company to stop using name “Outgro,” and making false therapeutic claims. FCC’s budget for fiscal 1964, submitted by President last week, totals $16.5 million, up $1,525,000 from last year’s $14,975,000. Technical research would go from $918,000 to $1,181,000; broadcast from $3,144,000 to $3,756,000; safety & special, $1,504,000 to $1,573,000; field engineering & monitoring, $4,007,000 to $4,914,000; common carrier, $1,660,000 to $2,071,000; executive staff & services would be cut back from $3,520,000 to $3,155,000. FTC would get $13,028,000, up $1,446,000 from last year’s $11,582,000. U.S. Information Agency seeks $146,550,000, compared with $122,536,000 year ago. This includes $27,642,000 for broadcasting service, up from 1963’s $23,349,000, and $7,102,000 for TV vs. $3,920,000 a year ago. Office of Emergency Planning’s Telecommunications Div. wants $653,000, compared with last year’s $401,000. Health, Education & Welfare Dept, would get $7 million to launch its ETV program. Of this, $2 million actually would be supplemental appropriation for 1963. FCC speakers: Chmn. Minow — Jan. 22, Americana Hotel, N.Y., at Fund for Republic session on “Challenges to Democracy in the Next Decade,” along with Britain’s Lord Francis-Williams. Alicia Patterson, publisher of Newsday, presides. Panel includes Pat Weaver, McCannErickson; William Benton, Encyclopedia Brittanica; Barry Bingham, Louisville Courier & Times. Comr. Bartley — Jan. 22, FCC meeting room, to business executives attending Brookings Institution conference on federal govt, operations. Comr. Henry — Jan. 24, U. of Ga., at Georgia Radio-TV Institute. Annual commumon breakfast of Washington’s Catholic Apostolate of Mass Media (CAMM) is scheduled for Feb. 10, with services at St. Patrick’s Church, breakfast at Willard Hotel. CAMM Pres. FCC Comr. Robert E. Lee says “this is going to be a big one.” Speaker will be Bishop Fulton Sheen, to be introduced by FCC Chmn. Newton Minow. Pres. Kennedy was invited, couldn’t make it. Among those expected are Supreme Court Justice Brennan, Attorney General Kennedy, HEW Secy. Celebrezze. Ticket sales are handled by Thomas Wall of Dow, Lohnes & Albertson law firm. Keene, N.H. CATV system has been sold to New England Video by A1 Ricci, price not disclosed. System seiwes 2,300. Ricci also owns other New England systems. Daniels & Assoc, was broker. Entron Inc., CATV equipment maker, has amended its anti-trust suit against Jerrold Electronics, hiking treble damages sought from $500,000 to $7.5 million. Suit pends in District Court for District of Columbia. Grant of Ch. 3 Wilmington, N.C. to Cape Fear Telecasting Inc. has been recommended by FCC Examiner Isadore A. Honig after competitor WKLM-TV withdrew. WNJU-TV will be call of new Ch. 47 New Brunswick, N.J. station due to start late next year.