OPPORTUNITY FOR JOHNSON IN FCC

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP73-00475R000200290001-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 27, 2016
• Document Release Date: December 19, 2013
• Sequence Number: 1
• Publication Date: April 20, 1966
• Content Type: OPEN SOURCE

CI-AT WASHINGTON POST I
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/12/19: CIA-RDP73-00475R000200290001-4 !
APR 20 1966
The Washington Merry-GoNlitounii
Opportunity for
By Drew Pearson
Lyndon B. Johnson, who
?has been accused unfairly of
;using influence with the Fed-
eral Communications Commis-
'Sion to roll up
'a
dollar TV - ra-rati's'?
dio monopoly .;
in Austin for,
Mrs. Johnson,
(has A unique
opportunity to.:
combat this
accusation'
with the ap-
pointment of -Pearson
a new FCC
Chairman.
Some advisers want him
to appoint a new Chairman
who won't rock the boat,
won't scare the TV industry.
On the other hand, there is
no industry that needs more
? rocking than the huge net-
works and group broadcasters,
many controlled by defense
contractors, which with the
use of public owned airwaves
have ? rolled up profits of as
much as 40 per cent. '
In 1964, the 15 network-
owned stations made a profit
lof 37.6 per cent. Profits have
;soared so fantastically that
1.1rIIC-TV in Pittsburgh ? was
;sold last / fall to the Cox
Broadcasting Co. for $20.6 mil-
lion. Since the tangible assets
of the station were listed at
,$3.8 million, the balance, or
$16.8 million;was the value' of
the Federal license?a, license
; ? ? ? ? '411?Adila\ Mi:??? :?.!???N
ohnson, in FCC
Owned by the American
people, but granted by the
FCC as the agent for the
people.
That agency in the past has
been pretty much the puppet
of the broadcasting world, and
any FCC Chairman who really
tries to exercise authority,
such as retiring William Hen-
ry, finds himself attacked by
the industry, castigated by
Madison-Avenue-minded Con-
gressmen, hamstrung by some
of his own associates,. and
eventually 'resigns.
Meanwhile a dangerous
trend has developed in the
broadcasting industry that Mr.
Johnson needs to watch even
closer than he,' is accused of
once watching his wife's TV
monopoly in Austin.. This
trend is the branching out of
television into education and
publishing, with control some-
times resting ' with defense
contractors.?
Books, Broadcasters
Profits have been so great
in the TV industry that the
Radio Corporation of Ameri-
ca, which owns one of the big-
gest networks, NBC, has an-
nounced the purchase of Ran-
dom House Books, one of the
major publishing houses.
CBS has gone further., It
has announced, on Sept., 29
last year, en agreement to ac-
quire Albin and Bacon, prob-
ably, the biggest supplier of
educational materials for pre-
kindergarten, high schnol,:e0
lege and graduate work In the
Nation. Said CBS: "Our bust.
nesses dovetail nicely'
On top of this, Bq last
March moved to ,acquire Crea-
tive Playthings of Princeton,
N.J., together with the Learn-
ing Center. The first is a top
supplier of three-dimensional
educational systems for nurs-
ery schools, the second a de-
veloper of teaching tech-
niques for children.
In other words, the net-
works are fast encroaching on
the field of the public school,
the college and the university.
Yet while public schools are
administered by local and
state school boards, subject to
the will of the people, the net-
works are subject only to a
handful of Madison Avenue
executives and Wall Street
directors interested in a profit
Of 37.6 per cent.,
Colleges and universities
are administered by trained
educators and give the widest
latitude 'to free speech, free-
dom of learning, exposure to
outside speakers and teachers.
A system of exchange profes-
sors brings viewpoints from
England, the European conti-
nent and all parts of the
U.S.A. But not the networks.
Both CBS and NBC operate a
closed. shop as far as outside
talent is concerned. Ninety
per cent of network program-
ing is produced by the nets on
which., they,: make a second
Only the American Broad-
casting Co. accepts outside
producers and programs.
Ike's .Last_Nlessaze
Equally dangerous has been:
the trend toward ownership of
television by big defense con;*
tractors. President Eisenhow-
er in his last message to the
American people warned of
the alliance between the .dc-.
fense contractor and the Pen-
tagon, which administered the
first peactime Army and Navy'
. -
in America's history. ? .i?
At that time, Gen. .Eisen-
hower .did not forsee a fur-
ther development?the en-'
trance of d.efense contractors,
Into the'L-koad-ca-s-Eirig
whc.re they .can. directly in.-.
fluence public, opinion. Hav-:
ing,NBC owned "oy one--CiT the
major defense contractors, for
instance, is like having Gencr-
aMorthNewYork
yimes.
It. Could be one of the most
dangerous conflicts of public'
interest in the Nation, espe-,
cially in view of NBC's closed-1
shop ? policy. . - .
Other big defense contrac-
tors in the TV broadcasting
field areeiGLigra.....,Electric;
General._ Tire_ . and _Rubber;
'makes ..the
&Ili; American Aviation Co.,
litInlitestinghouse. The latter,.
It should be' noted, does 'a,
broad-minded nonclosed-shoft;
job Of informing the ptIblkt:
ti:issti.f,no*i4eeniy? ntoplat!, In?:
41?...? .' "%At.: . 4%.*
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/12/19: CIA-RDP73-00475R060200290001-4