The Indianapolis Star from Indianapolis, Indiana • Page 46

7 SUNDAY NOVEMBER 30, 1969 PAGE 20 SEC 2 THE INDIANAPOLIS STAR Illy 11 vCvlili For nearly five years, there's been a lot of talk about the FCC and WIFE how we "hypoed ran "fraudulent contests" and "bilked It's been an agonizing five year ordeal for us one which should have ended when the FCC renewed our license October last. However, innuendos continue. Therefore, here are the facts: January, 1964 "HYPOED RATINGS" In January of 1964, I was given the one and three-quarters day results of a five-day audience survey, being conducted by the C. E. Hooper Company.

During that time WIFE conducted its "Welcome To Indianapolis" promotion (thus, the term "hypoed The survey gave WIFE over 50 of the total radio listening audience. Enthusiastically, I issued an inter-office memo congratulating the WIFE staff, pointing out that if the full five-day rating period showed what the preliminary rating indicated (as it subsequently did) they could indeed be proud of their efforts. I should have waited for the full five-day report. In that I didn't, we received a one year rather than a regular three year renewal. October, 1964 "FRAUDULENT CONTESTS" Actually, it was only one contest that ran back in October of 1964.

A manufacturer of water filters offered three of its products (approximate worth $59) as prizes. The contest drew no entries. The then station manager, even though he was aware it was against company policy, awarded the $59 worth of water filters to members of his staff. The manager violated a company policy. The client was indeed misled, but WIFE's audience could hardly be affected since there were no entries.

(I did not know of this incident until the FCC brought it to my attention in July of 1965). June, 1965 "BILKED ADVERTISERS" In June of 1965, while the then station manager was on vacation, a broadcast Kevin Sweeney, discovered the possibility of erroneous affadavits having been sent out to certain advertisers. An internal audit disclosed the then station manager had ordered erroneous affadavits to be sent to approximately 27 clients. When I became aware of this, I authorized telegrams to be sent immediately offering full restitution. As time went by, other discrepancies were discovered and total restitution was made in all instances to everyone's complete satisfaction.

Total restitution came to $6,100. We discovered the situation and corrected it, (the same as any other responsible business would do), a full four months before the matter was ever brought to the attention of the Federal Communications Commission. As a result of the station manager's blatant disregard of company practices and policies, he was summarily dismissed. October, 1969 "SO THAT'S LIKE IT WAS!" This past October, in a land where the majority rules, the Federal Communications Commission renewed the licenses of WIFE AM and FM for six months. In their ruling the Commission said that we: must effectuate a management system of internal controls to prevent overbooking of spot announcements, to insure that billing is done accurately from the station logs, and to provide that the licensee's principals and employees are comprehensively, accurately and promptly apprised of the' full nature, conditions, rules and all other matters relating to radio contests aired and billing practices followed in the licensee's operations; and, further, the licensee shall with its renewal application file a comprehensive report disclosing the details of the said management system of internal controls and the institution of that system." I am confident that the high standards of business practices that we instituted four years ago will meet with the FCC's approval.

In the past four years WIFE has operated as an outstanding model radio station and I am proud of the manner in which our present manager, Bob Kiley, and his staff have performed their tasks in serving the tastes, needs and desires of the citizens of central Indiana. We are not seeking headlines or publicity. We simply want to get back to work and continue to be one of INDIANAPOLIS' outstanding public servants. Sincerely, Don W. Burden Chairman of the Board Star Stations, Inc..