Evening star., 1941-06-20
Network Affiliates
Deny Chain Options
Result in Monopoly
Small Station Owners
Soy New F. c, c. Rules
Would Cut Profits
By the Associated Press.

official told Senate interstate
Commerce Subcommittee today that
he had never seen any evidence
of any monopolistic power exercised
by the national networks.
Testifying at the committees
hearing on resolution to nVeSl-
gate the Federal Communications
Commission and the radio INDUSTRY
in general Clarence Wheeler, wee
president of WHEC. said his station
and many others like it might lose
profitable programs II the coliliiilS-
sion's order barring the optloning
of time to the networks were al
lowed to stand.
INV opinion is that there coulont
he any stability to the networks uh-
less thev could have an option on
onr time he testified. "Oplon
times docs not interfere with our
ability to serve our community
either commercially or with suS-
tanning programs
Mr. wheeler said he was fearful
that # the commissions oroer "ellI
into effect his stations satisfactory
relations with the Columbia Broad
casting network would be inter-
rupted.
Contracts Advantageous.
eve have found in practice that
IonC.term contracts with Columbia
worn to our advantage" he said. In
fact if we didn't feel reasonably
secure that we we're going 10 con-
tin1Ie as their affiliate, We would not
have expended large amounts 1or
local improvements. In TACT, we
wouldn't have had to spend except
for our afiliation with Columbia
.Jonas Weiland, operator OF VITO
at Kinston, N. c., said his station
had been forced to give up an atfllla-
tion with Mutual because another
station using the same line had can
celed.
He said he could obtain an afhlia-
tion with the National Broadcasting
Co blue network, but was advised
bvIthe F. c. C. that he should not
sian a three-year contract, since the
conmission's new rules forbade con-
tracts of more than one years lie.
These new rules would put our
station of the networks and 1 am
not sure but what it would do the
SINE to a great many Others Mr..
Weiland said.
Says Networks Compete.
J. w. Lee. manager of KGFF,
Shawnee, Okla, an affiliate of the
N.B. C. blue network, said he found
the "keenest competition between
n. B. Cs two networks.
If the commissions order that
the N. B. c. dispose of one network
was allowed to stand, he said, his
station probably would lose the
'9prestige" of the affiliation with
II. B. c. and would suffer competi-
ftively.
, Mr.. Lee said that during four
years affiliation with Mutual, his
company had paid line charges in
cash and had never received enough
revenue frim the programs involved
to cover the cost. But with the pres
ent N. B. C. affiliation, he continued,
his station pays line charges in time
On IQS ali, SOlllcIIllllS VIC Soii a.
ford
When Mr.. Lee testified that his
station had paid $500 per mile per
month for a class &C" telephone line
10 bring in Mutual programs, Sen
ttor Bone, Democrat, of Washington
expressed amazement at the
,harges.
Meanwhile, Senate friends and
foes of the controversial new F. c. c.
regulations joined today in demands
for an early decision within the
Commerce Committee.
Senator White, Republican, OF
Maine, author of a resolution which
would delay operation of the pro-
posed new rules pending an inves-
litigation of the F. c. c., said testi-
lmony should be cut short.
| Chairman Wheeler. who questions
THE wisdom of delaying the regula-
tions, but fsvorS a radio inveStiga-
ton, said the committee must soon
vote on the White resolution.