In Re Application of A.H. BELO CORP., ASSIGNEE and BEAUMONT TELEVISION CORP., ASSIGNOR A.H. BELO CORP., TRANSFEROR and JAMES M. MORONEY, JR., JOSEPH M. DEALEY AND MYRON F. SHAPIRO, VOTING TRUSTEES
For assignment of license of
Stations WFAA-AM-FM-TV and for transfer of control of Beaumont Television Corp.
FEDERAL COMMUNICATIONS COMMISSION
41 F.C.C.2d 245
RELEASE-NUMBER: FCC 73-544
MAY 23, 1973
OPINION:
[*245] MR. JAMES M.
MORONEY, JR., A.H. Belo Corp., Communications Center, Dallas, Tex. 75222 MR.
MYRON F. SHAPIRO, Beaumont Television Corp., Communications Center, Dallas,
Tex. 75222
GENTLEMEN: This refers to the pro
forma applications for assignment of license of WFAA-AM-FM-TV, Dallas, Texas
from A.H. Belo Corporation to Beaumont Television Corporation (BAPL-430;
BALH-156; BALCT-505) and for transfer of control of Beaumont Television
Corporation, licensee of KFDM-TV, Beaumont, Texas from A.H. Belo Corporation to
James M. Moroney, Jr., Joseph M. Dealey and Myron F. Shapiro, Voting Trustees
(BTC-7073) which were granted today. This also refers to informal
complaints filed by WADECO, Inc. and Civic Telecasting Corporation against the
subject applications and your responses thereto.
As you are aware, the license
renewal applications of the subject stations have been in deferred status;
WADECO, Inc. has filed an application mutually exclusive with the renewal
application for WFAA-TV; and Civic Telecasting has filed a Petition to Deny the
license renewal applications for all the subject stations.
We have considered the complaints
and your responses solely in the context of these pro forma applications and
have determined that a grant of them would serve the public interest. In
making this determination we have also considered the question raised by
WADECO, Inc. in its informal complaint regarding possible improvement of
WFAA-TV's comparative position in the area of [*246] integration of
ownership and management in the comparative renewal proceeding. As we
have informed counsel for WADECO, Inc., a renewal applicant such as WFAA-TV is
judged in this area solely on the basis of its past performance, and not on its
integration of ownership and management. A copy of our letter to counsel
for WADECO, Inc. is enclosed. Further, the grant of these applications
has been made without prejudice to whatever action we may deem appropriate with
regard to the pending license renewal applications.
Commissioner
Johnson concurring in part and dissenting in part and
issuing a statement. Commissioner H. Rex Lee concurring and issuing a
statement. Commissioner Hooks absent.
BY DIRECTION
OF THE COMMISSION, BEN F. WAPLE, Secretary.
CONCURBY: LEE; JOHNSON (IN PART)
CONCUR:
CONCURRING STATEMENT OF COMMISSIONER
H. REX LEE
A. H. Belo Corporation, licensee of
Stations WFAA-AM-FM-TV in Dallas, Texas, n1 has filed applications on FCC Form 316 (Short Form
or Pro Forma) for: (1) assignment of the station licenses to its wholly-owned
subsidiary, Beaumont Television Corporation (licensee of Station KFDM-TV,
Beaumont, Texas); n2
and (2) transfer [*247] of control of Beaumont Television from Belo
to three voting trustees, James M. Moroney, Jr., Joseph M. Dealey and Myron F.
Shapiro. At present, 68.65% of Belo's stock is owned by the G. B. Dealey
Trust, a testamentary trust, and is voted by Moroney, Dealey and Joseph A.
Lubben as trustees. Belo now proposes to assign its broadcast licenses to
Beaumont Television and to place all of the subsidiary's stock in a voting
trust, which will have Moroney, Kealey and Shapiro as trustees and which will
last until December 31, 1982. Belo maintains that control of the licensee
will not change with these transactions since Moroney and Dealey effectively
exercise control over the broadcast stations through the G. B. Dealy Trust
interest in Belo and since they will continue to exercise such control under the
proposed arrangement. In regard to the purpose of the applications,
Moroney and Dealey represent that the proposed assignment of licenses and
transfer of control of Beaumont Television are intended to preserve control
over the broadcast stations beyond termination of the G. B. Dealey Trust, which
expires in 1975; that the applications are not intended to, and will not have
the effect of changing the existing control of the stations and of Belo during
the life of the G. B. Dealey Trust; and that each trustee intends to continue
in such capacity under both trusts until terminated.
n1 Belo
also publishes the Dallas Morning News (daily and Sunday newspapers) and a
number of suburban newspapers in the Dallas area.
n2 In
1969, the Commission approved transfer of control or Beaumont Television from
stockholders of Beaumont Broadcasting Corporation to Belo. See 17 FCC 2d
577, 16 RR 2d 93.
Civic Telecasting Corporation, whose
principals were previously involved in the operation of UHF television Station
KMEC-TV in Dallas, has objected to grant of the applications. It argues
that the proposed arrangement will result in a substantial change in the
control of the stations and that there is no reasonable or legitimate purpose
for the overall plan. Civic Telecasting contends that the applications
represent an attempt by Belo to avoid the possible revocation of its broadcast
licenses as a result of a civil antitrust action brought against Belo and other
parties, charging the defendants with monopolizing the television industry in
the Dallas-Fort Worth area and discriminating against KMEC-TV through their
newspaper interests. n3 Civic Telecasting has petitioned to deny the license renewal
applications of Belo on essentially the same grounds raised in the antitrust action.
n4
n3 See
UHF, Inc. v. The Times Herald Printing Company, T.H. Liquidating Company and
the A. H. Belo Corporation, Civil Action No. 3-4156-A, filed September 9, 1970,
in the United States District Court for the Northern District of Texas, Dallas
Division.
n4.
Action on the petition to deny is being deferred until the Commission has
received sufficient information relating to the allegations made in the civil
antitrust suit and the petition to deny to permit the discharge of its
statutory responsibilities. The Commission has simultaneously designated
the WFAA-TV renewal application for hearing along with the competing
application of WADECO, Inc. and has conditioned any grant of the WFAA-TV
renewal application on whatever action may be appropriate as a result of the
Court's decision in the Texas antitrust action.
As the Commission points out in its
letter rejecting Civic Telecasting's objections, there appears to be a
legitimate purpose for the filing of the applications, and the complainant has
not demonstrated how the proposed arrangement will enable Belo to avoid the
consequences of its stewardship of the broadcast stations or related business
activities. Moreover, Belo has expressly disclaimed any intent to
evade [*248] responsibility for the operation of its stations and
newspaper interests. On the basis of such representations and the fact
that the Commission would have to approve any actual transfer of control of the
licensee, I have concurred in the grant of the applications. However, I
intend to remain alert for any indication that Belo's purpose in filing the
applications was to avoid possible impact on its broadcast licenses that might
result from an adverse resolution of the civil antitrust action in Texas.
DISSENT:
OPINION OF COMMISSIONER NICHOLAS
JOHNSON, CONCURRING IN PART AND DISSENTING IN PART
While I concur with that portion of
the majority's opinion which designates a comparative hearing on the mutually
exclusive application of A.H. Belo Corporation and WADECO, Inc., to operate on
channel 8, Dallas, Texas, I cannot agree with the majority that the
accompanying assignments and transfers of control serve the public interest.
Rather, I tend to agree with WADECO
that these intricate assignments appear designed as a means to improve the
comparative position of the current WFAA-TV licensee. I can perceive no
other cogent purpose for these assignments, and despite the majority's language
suggestion that the position of WFAA's licensee will not be so improved, I must
admit that I have my doubts. For, sadly, such assurances are often mere
words -- words whose intent is easily lost through the months of hearings which
follow FCC designation orders.
In short, while I am not at all
persuaded that these assignment transactions serve the "public interest,
convenience or necessity," I am also fearful that their real intent will
return to haunt not only WADECO and not only those parties who have filed
petitions to deny against WFAA's license renewal applications, but also this
Commission.