NEW ALIGNMENT SET Temporarily on Ch
Total Page：16
File Type：pdf, Size：1020Kb
STATIONS Commission's grant for KTVI to operate EQUIPMENT -TIME NEW ALIGNMENT SET temporarily on ch. 2. FOR ST. LOUIS TV According to the agreement between the BARTER OFFERED Globe- Democrat and KTVI, the Newhouse Would finance station gear CBS buy of KWK -TV approved newspaper will lend KTVI $360,000 and Ch. 11 assigned to 220 Tv pay $31,000 for 310,000 shares of common Payment: its unsold time stock. In addition the Globe -Democrat also equipment manufacturers Three St. Louis television stations en- Stations and will take over two mortgages now held by are being offered an opportunity to do busi- gaged in a chess play last week and after Harry Tenenbaum and Paul E. Peltason, another on a barter basis. The the moves are made this is the way the St. ness with one president and executive vice president re- corporation formed last Louis television situation will stand: instrument: A new spectively of KTVI, amounting to $145,280. week in New York named Communications CBS secured FCC approval to buy ch. The agreement provides that $160,000 of 4 KWK -TV for an aggregate sum approach- Financial Corp. the $360,000 will go to Messrs. Tenenbaum is the brainchild of Richard D. ing $4 million. The station will become CFC and Peltason, with $200,000 going into the and Richard M. Firestone, the KMOX -TV. Rosenblatt KTVI's capital. The $160,000, it was noted, film- for-time bartering The FCC also approved the assignment two principals in the will be considered partial payment on $795,- organization, Time Merchants Inc. (ADVER- of ch. 11 to one of the three unsuccessful 500 due the two stockholders by the com- TISERS & Aug. 12]. While CFC applicants who had lost out to CBS in the AGENCIES, pany. It was further agreed that no additional is separate company, Messrs. Rosenblatt hard- fought, long comparative hearing. a payments will be made to the two stock- and Firestone hold a "substantial interest" The St. Louis Globe -Democrat bought holders on this obligation until the level of in the new firm, which is headed by radio -tv 25.2% of KTVI (TV) St. Louis, operating the $279,951.91 working capital is raised. consultant Sol Cornberg, former NBC di- under a temporary permit on ch. 2 in that The $360,000 loan is for five years, at 4 %. rector of stations and plant planning and city. As a contribution to capital, Messrs. Ten- designer of the NBC -TV Home and Today The Commission approved the sale of enbaum and Peltason agreed to surrender to studios in Manhattan. KWK -TV to CBS for approximately $4 mil- the company 300 shares of 6% first pre- Describing their new enterprise as a lion. Comr. Frederick W. Ford abstained ferred capital stock and 1,800 shares of 6% baby" (even though the project from voting, and Comr. Robert T. Bartley "recession second preferred capital stock. The two has been in planning for three months), voted to send a McFarland letter indicating stockholders also agreed to subordinate officers explain that they are allowing the necessity of hearing on the questions of CFC their claims to the Globe -Democrat's loan. local tv stations to modernize their plants possible combination operation with other The Globe- Democrat also received option and replace their present equipment (the CBS stations and whether any violation of rights to purchase 100 shares of 6% first pre- latter estimated at $35- 40,000 a year) at no the multiple ownership rules are involved. ferred capital stock for $10,000.. actual cash expense to the station or its The ch. 4 sale involved $1.5 million for the The Globe-Democrat transaction was Equipment manufacturers, tv license and $2.44 million for the physical management. predicated on the Commission approving the having failed to "sell" station management properties. Radio stations KWK and WGTO sale of KWK -TV to CBS. The Globe -Demo- color or mobile equipment, now may Haines City, Fla., are not involved. KWK on crat is a 23% owner of KWK -TV. these stations with a "new opti- owns WGTO. approach KTVI balance sheet as of Sept. 30 showed mism" based on the fact that the station KWK -TV is owned by Robert T. Convey total assets more $575,450, with is eager to buy. The "negotiable" is the and associates, 28 %; St. Louis Globe -Demo- current assets listed at more than $142,750. station's unsold time, which is "gold" to crat, 23%; Elzey Roberts, 23 %; KSTP Inc. Current liabilities were given as $124,800; advertisers and agencies. (KSTP -AM -TV St. Paul, Minn.), 23% and fixed liabilities at $265,780; total indebted- The new barter arrangement works like about 20 St. Louis citizens, 3 %. ness at almost $1,190,925 and deficit at al- that set up by TMI in regard to film syndi- CBS also owns radio and tv stations in most $1,365,000. New York, Chicago, Los Angeles; radio Mr. Tenenbaum and Mr. Peltason each outlets in St. Louis, San Francisco and Bos- own 614,500 shares of common stock, 150 ton; tv outlets in Milwaukee and Hartford, shares of first preferred and 900 shares of Conn. second preferred. Bernard T. Wilson owns The FCC also approved the assignment 1,000 shares of common and the River- of CBS's ch. 11 grant to 220 Television Inc., side Insurance Co. owns 100 shares of first one of the three unsuccessful applicants for preferred. that channel. Under the agreement among the three applicants, 220 Television gives WGN -TV Issues Rate Card No. 16 each of the other two $200,000 in deben- (No. 16), retaining the tures. The other two applicants for St. Louis A new rate card basic rate structure but eliminating differ- ch. 11 are St. Louis Telecasting (60% film or re- owned by St. Louis U.) and Broadcast ences in charges for live and House Inc. (former operator of ch. 36 mote programs and revising time periods, -TV Chicago. KTSM -TV East St. Louis). All three had has been announced by WGN It 1. The Class A basic appealed the ch. 11 grant to CBS. This became effective Oct. along with transaction, in which no consideration was rate ($1,800) will be maintained, involved, terminates this litigation. live program charges in all time categories. 8 -11 p.m. to 8 -10 Comr. Ford asbtained from voting in the Class A is changed from PRINCIPALS of Communications Financial ch. 11 matter. p.m. daily. Corp. examine a mock -up model of the new Details of the St. Louis Globe- Democrat's color camera installation at CFC's executive acquisition of 25.2% interest in KTVI (TV) WOAI -TV, KENS -TV to Build Tower offices in New York. L to r: Sol Cornberg, were spelled out in an amendment to. The Texas Tall Tower Corp., a joint con- president; Richard M. Firestone, vice presi- KTVI's application for ch. 2 in St. Louis. struction effort for the exclusive use of dent; Richard D. Rosenblatt, treasurer. Ch. 2 was allocated to St. Louis in the WOAI -TV and KENS -TV San Antonio, has first group of deintermixture cases. KTVI, been formed to erect a 1,531 -ft. television cation, except that instead of collecting its then on eh. 36, received permission to op- tower and antenna 17 miles southeast of that commission from the syndicator (10-15 %), erate on ch. 2 pending the outcome of com- city by late 1958. Permission to build the TMI collects from CFC. Advertiser X ap- parative hearings for that vhf frequency. joint operation has been granted by all gov- proaches TMI through its agency with a Thus far KTVI and Louisiana Purchase Co. ernment agencies including the FCC and request for Y dollars worth of time in Z (a group of St. Louisians) are the only ap- the Washington Air Space Panel. Corpora- market. TMI, already hip -deep in barter plicants for ch. 2. Louisiana Purchase Co. tion officers were selected from both WOAI- deals and hard -pressed for time, brings the has appealed to federal court against the TV and KENS -TV. advertiser together with CFC -in fact, ar- BROADCASTING October 28, 1957 Page 73 .