2. WHBL's petition, in essence, requests deletion of the only issues outstanding and an immediate grant of its application. In support, petitioner argues that its application was designated for hearing because of common ownership interests in the applicant (which is also the licensee of AM station WHBL, Sheboygan), and in the Sheboygan Press, the only daily newspaper in that city. WHBL points out that, at the time of designation, Mr. and Mrs. A. Matt Werner and their family owned 70 percent of the stock of the Sheboygan Press and 39.8 percent (183.5 shares) of the stock of WHBL; but that, by agreement dated January 30, 1969, WHBL acquired all 183.5 shares of its stock owned by the Werners. WHBL thus argues that the Werners interest in the applicant has been eliminated; that, therefore, the crossownership of newspaper and broadcast facility is no longer present; and that, accordingly, the concentration of control issue is moot and should be deleted and WHBL's application should be granted. The Broadcast Bureau, in its comments, supports this request. 3. In opposition, WKTS argues that the purchase of the Werners stock by WHBL does not eliminate the concentration of control question. WKTS observes that, under the terms of the January 30, 1969. repurchase agreement, the purchase price for the 183.5 shares is $85,000, payable $25,000 upon execution of the agreement and the balance in six equal annual installments with interest at or above the then prevailing prime interest rate; that, to secure the sale, the stock is held in escrow; and that, in the event of default, the escrow agent is required to offer the stock at public sale and the Werners are specifically given the right to repurchase at such default sale. WKTS contends that the right given to the Werners to repurchase at a default sale raises serious questions as to the good faith of the separation of the common ownership of the newspaper and broadcast interests, especially because the likelihood of default is readily apparent. In this connection, WKTS contends that WHBL's application fails to establish sufficient funds to both construct and operate the station for 1 year. and to meet the principal and interest payments due on the purchase of the Werner stock during such year. According to WKTS, the applicant will require $72,259.935 to meet such expenses, including payments for the purchase price on the stock, but excluding any sums disbursed for legal, engineering, and miscellaneous expenses for which no provision has been made in the application; WKTS contends that the petition to which it responds was filed on Feb. 7, 1969, and the opposition should have, under rule 1.45, been filed by Feb. 20, 1969. However, in view of WKTS's uncertain status as an intervenor until the hearing examiner's February 27 order granting interven tion, and because WKTS was not served with a copy of the February 7 petition until Feb. 27, 1969, we will accept and consider on the merits the WKTS statement. Pleadings (a)-(d) inclusive, are effectively mooted by amendment to WHBL's application; nevertheless, the Board has considered all the pleadings before it. WKTS asserts that because minority stock interests are involved, repurchase by the Werners at a default sale would not require Commission approval. 5 Computed thusly: Total construction costs___ First year operating expenses. Downpayment on Werner stock.. First annual installment on Werner stock. Interest and principal on bank loan--- Total____ $17, 259.93 5, 100.00 25,000.00 19,200,00 5,700.00 72, 259.93 6 there is only available $31,690 to meet such costs. Therefore, asserts WKTS, default is likely and the Werners have some reasonable (and realistic) expectation of reacquiring their interest in WHBL. In essence, WKTS concludes that the separation of newspaper and broadcast ownership interests is illusory. Further, WKTS asserts, the crossownership question is but one aspect of the concentration of control issue. It notes that WHBL is a full-time (5 kw.-D, 1 kw.-N) station in Sheboygan; that the only other station in Sheboygan is WKTS (500 w., DA-Daytime); and that there is only one newspaper in Sheboygan. Recognizing that the Interim Policy on Multiple Station Ownership, 12 F.C.C. 2d 912, 13 R.R. 2d 1526 (1968) (under which licensees of one full-time aural service would be precluded from obtaining a second aural service in the same market) was promulgated after WHBL's application was filed, WKTS nevertheless maintains that the rationale of such Interim Policy clearly applies and that hearing must be held in order to adequately explore all public interest considerations. 4. In reply, WHBL insists that the January 30 agreement provides for a bona fide separation of the newspaper and broadcast interests, urging that the escrow and forced sale provisions are not unusual or esoteric. WHBL further denies that it lacks sufficient funds to construct its station and meet its contractual obligation to the Werners. Based upon an amendment (accepted by the hearing examiner, F.C.C. 69M-347, released Mar. 21, 1969) to the financial portion of its application, it claims to have available $64,595.10' to meet estimated expenses of $60,759.93.8 Finally, WHBL contends that the Interim Policy is, by its very terms, inapplicable to this application and therefore gives rise to no question. Concluding that the factual circumstances upon which the designation order was based no longer exist, WHBL urges that a hearing would therefore be an utterly futile exercise and that the issues should be deleted and the application granted. 5. In the interests of the maintenance of administrative orderliness and efficiency, the Review Board has consistently declined to delete issues based upon post-designation amendments, in the absence of • Computed thusly: Cash Excess of accounts receivable over notes, discounts and taxes payable_- $9, 441. 73 2, 071. 29 177. 38 20, 000. 00 31, 690. 40 $16, 324. 38 26, 257.48 2, 013. 24 20, 000. 00 64, 595. 10 $17, 259. 93 5, 100.00 19, 200. 00 19, 200. 00 60, 759.93 *WHBL borrowed $25,000 from a local bank to cover the downpayment on the Werner stock repayable at $12,000 per annum plus interest at 74 percent, thus totaling $13,500, during the first year. In addition, the $20,000 bank loan to cover construction costs is repayable over a 5-year period with interest at 8% percent, $5,700. Thus, total bank repayments during the first year are $19,200, according to WHBL. unusual circumstances, see e.g., Kittyhawk Broadcasting Corp.. 8 F.C.C. 2d 489, 9 R.R. 2d 1283 (1967); Orange-Nine, Inc., 8 F.C.C. 2d 637, 10 R.R. 2d 489 (1967). The policy is a salutory one designed to accelerate the administrative processes and to discourage the proliferation of pleadings with respect to matters more appropriately handled in hearing. In the absence of unusual circumstances, petitions such as the one before us, merely serve to protract the proceeding. Veterans Broadcasting Co., Inc., F.C.C. 62-131, 22 R.R. 949. No unusual circumstances have been presented here, and we conclude that the issues should not be deleted. In reaching this result, we do not intend to give credence to WKTS's contentions as to the bona fides of the January 30, 1969, agreement. Neither the default sale clause, nor the antidilution provision (which restricts WHBL's issuance of stock and assumption of debt not in the ordinary course of business) standing alone calls the good faith of the agreement into question; the amendment to the financial portion of WHBL's application indicates the availability of a cushion to meet any expenses beyond construction and first year operating costs, including payments due within such period, under the January 30 agreement. Similarly, in view of the disposition herein, we do not pass upon whether the issues framed in this proceeding by the Commission encompass more than the question of cross-ownership of newspaper and broadcast interests. The Interim Policy is clearly inapplicable; just as clearly, the inapplicability of the Interim Policy does not preclude consideration of appropriate factors subsumed within the specified issues. The petition for reconsideration will be denied. 6. Accordingly, It is ordered, That the petition for leave to file a supplement to the petition for reconsideration, filed February 7, 1969, by WHBL, Inc. and the petition for leave to file a statement, filed February 24, 1969, by WKTS, Inc. Are granted; and 7. It is further ordered, That the petition for reconsideration as supplemented, filed December 9, 1968, by WHBL, Inc., Is denied. FEDERAL COMMUNICATIONS COMMISSION, BEN F. WAPLE, Secretary. 17 F.C.C. 2d The following are notations of Commission actions which are not printed in full. APPARENT LIABILITY Radio Blakely, WBBK, Blakely, Ga., violation of Sec. 73.47(b) in the amount of $400, April 16, 1969. KSPO, Inc. KSPO, Spokane, Wash., violation of Sec. 73.111 (a) in the amount of $700, April 16, 1969. Arecibo B/Cing Corp., WMNT, Manati, Puerto Rico, violation of Sec. 73.47 in the amount of $500, April 16, 1969. Belvedere B/Cing Corp., WWIN, Baltimore, Md., violation of Sec. 1304, Title 18 U.S. Code, and Sec. 73.93, in the amount of $3,500, May 1, 1969. Royal Hawaiian Radio Co. Inc., KAHU, Waipahu, Hawaii, violation of Secs. 73.47, 73.93 (e) and/or 73.114(b), 73.113 (a)(3) and 73.112(a)(4), in the amount of $500, May 7, 1969. Seaboard B/Cing, Inc., WLAS, Jacksonville, N.C., violation of Sec. 73.124, in the amount of $10,000, May 8, 1969. WHAB Radio, Inc., WUFE, Baxley, Ga., violation of Sec. 73.73, in the amount of $2,000, May 21, 1969. Eller T/Cing Co., of Ariz. KBLU-TV, FOR FORFEITURE Yuma, Ariz., violation of Sec. 1.613, in the amount of $500, May 28, 1969. KXO, Inc., KXO, El Centro, Calif., violation of Secs. 73.93 (c) and 73.93 (e), in the amount of $1,500, May 28, 1969. Greenbrier B/Cing Co., Inc., WRON, Ronceverte, W. Va., violation of Sec. Reams Communications Corp., WUOK, 73.47, 73.111(a), and 73.114, in the amount of $1,000, June 4, 1969. Wells, Waller, and Ballard, Inc., KEBE and KEBE-FM, Jacksonville, Tex., violation of Sec. 73.281 (a) and 73.282 (2) (5), in the amount of $500 June 4, 1969. Sumter B/Cing Co., WISK, Americus, Ga., violation Sec. 73.114, in the amount of $500, June 4, 1969. Midnight Sun B/Cers, Inc., KINY-AMTV, Juneau, Alaska, violation of Sec. 73.93 (b), in the amount of $500, June 4, 1969. APPLICATIONS ACCEPTED FOR FILING Bozeman, John, Shenandoah, Iowa, Quality B/Cers, Union City, Tenn., acApril 23, 1969. Western Telestations, Inc., KHVH, Beasley, Lovelle Morris "Jack", Pine cepted, April 16, 1969. Gulf B/Cing Co., Gulfport, Miss., HWH Hauser, Carroll R., Eureka, Calif., ac- ASSIGNMENT OF LICENSE AND TRANSFER OF CONTROL From Geritz B/Cing Co., WNEM-TV to Meredith Corp., granted, April 16, 1969. From WGAL Television, Inc., to KOAT Television, Inc., granted, May 7, 1969. Grayson B/Cing Co., Inc., KUBA, Yuba City, Calif., from Sidney A. Grayson and Della G. Grayson, jointly, to Della G. Grayson individually, no action taken, May 21, 1969. WRIZ, Coral Gables, Fla., from Mission WAME, Miami, Fla., from WAME B/ 358-015 0-70-3 Cing Co.; (3) transfer of Control of Contemporary Radio Inc., WAYL (FM), Minneapolis, Minn., from Jack I. Moore; and (4) WWOM-AM & FM, New Orleans, La., from Wagenvoord B/Cing Co., Inc.; All stations being assigned or transferred respect ively to Entertainment Communications, Inc., granted, except WWOM AM and FM, June 4, 1969. Garvey Communications, Inc., KKTV, Colorado Springs, Colo., from Williard W. Garvey to Capital B/Cing Co., Inc., granted, June 4, 1969. AUTHORIZATION Conejo B/cers, Thousand Oaks, Calif., Amer. Tel. and Tel. Co., authority to Application for City of Haywood, Calif., and Township of Scotch Plains, N.J., for authorization to operate fire alarm call box systems in the 72-76 MHz band, granted, May 7, 1969. RCA Global Comm., Inc., New York, N.Y., authority to lease a 1⁄2 interest in, and operate, 5 voice circuits in the TAT-1 & TAT-3 submarine cable System, May 7, 1969. Western Union Int., Inc., temporary authority to acquire and operate a transportable earth station and VHF transmitter/receiver for TV coverage of Apollo-10 splashdown, granted, May 14, 1969. Southwestern Bell Tel. Co., authoriza tion to discontinue telephone service at Hugoton, Kans., at the time that Pioneer Tel. Assn., Inc., begins to provide service, granted, May 14, 1969. Silver Bull Mining Co., Washington, D.C., Application for authority to operate a private international fixed point-to-point communication circuit, Dismissed, May 21, 1969. Norseman B/Cing Corp., KWKY, Des Moines, Iowa, Application to change transmitter location, accepted and granted, May 21, 1969. Comsat, Washington, D.C., authoriza tion to participate in launch, positioning and pre-commercial operation of IntelSat III (F4) Satellite, May 21, 1969. Amer. Tel. and Tel. Co., authority to amend its Annual Blanket Application to include 414 additional broadcast carrier channel groups, May 21, 1969. The Western Union Tel. Co., applica tion for authority to discontinue its "MP" branch office, Dallas, Tex.. granted, May 28, 1969. CONGRESSIONAL STATEMENT AND APPEARANCES Commission's Statement on S. 1242, Adopted, April 1, 1969. CONSTRUCTION PERMIT Lewis County B/Cing Co., Hohenwald, Telemundo, Inc., San Juan, Puerto Rico, Daniel S. and Elma J. Cubberly, KUKI- Voice of Puerto Rico, Inc., Ponce, 1969. E. O. Roden and Associates, Inc., Gulfport, Miss., granted, May 1, 1969. Lankford B/Cing Co., DuQuoin, Ill., granted, May 1, 1969. Latin B/Cing Corp., WLTO, Miami, Mauna Kea B/Cing Co., Kailua, Cloud, Minn., application for modifi cation of CP, denied, May 28, 1969. KFPW B/Cing Co., Fort Smith, Ark., granted, subject to a condition, May 28, 1969. |