Arizona Republic from Phoenix, Arizona • Page 137

ALL QJITIONS Legal loopholes are helping church buy KPAZ-TV 4No others said, so pastor buys his own 1 TiieArizonaRepublic 10K Iintertaininent Zs 1 lafelrfa I X. iJsil'lL Sunday, April 18, 1971 (Section Page 1) L00 JZ similar campaigns all oyer the country, the bonds must be issued in the name of the church and not the television station. 'You can't issue bonds unless they are in the name of the church," he said. "The bonds are secured by the church properties which presently are worth at least $500,000. We've got a very sound investment here and we work within the rules of the Securities and Exchange Commission." And what if the FCC refuses to grant the church a license to operate the TV station? "The' church has agreed to return everybody's money," Lewis said.

"But we are beyond the place of failure now. We know this station is going to go. The license alone is worth $1 million once we get it." The point of all this isn't to hint that what the Bible Fellowship Church is doing is illegal. It's perfectly legal. But a private citizen couldn't use the same tactics.

"Soliciting bonds in this manner by private individuals would be a violation of state and federal statutes," said Claude Keller, head of the securities division of the Arizona Corporation Commission. "We would issue a cease and desist order immediately. This would be a violation of Section 44-1841 which makes it a felony to offer unregistered securties. Conviction is punishable with a fine of up to $5,000 or a prison term of up to 10 years or both. "But.

churches and other non-profit corporation are specifically exempt from these statues." Far from rare Keller said church-owned businesses are far from rare and it makes no difference that many are operated for profit. "Lots of churches own businesses," he said. "The Mormon Church has got all kinds of farms and ranches and the Catholic Church owns every conceivable kind of business from wineries you name it." The Mormon Church also owns a newspaper, a radio station and a televi- By JACKSWANSON The Rev. Lindell Edmonds couldn't get air time on a television channel so he decided to buy a station of his own. If a private citizen tried to use the same methods Edmonds and his Bible Fellowship Church are using to buy KPAZ Channel 21, he could be kicked off the air, fined and possibly even thrown in jail.

There is a very real possibility that the church's overt control of Channel 21's programming before the church has received a license to operate the station is a violation of Federal Communications Commission regulations. And Edmonds fellow clergymen are sharply divided over the religious programming on Channel 21. Some support it strongly. One called the church's bond sales program a fraud. The whole thing started when Edmonds was refused TV time by Phoenix network stations.

"We prayed about it and we decided we wanted to do a half hour on TV," Edmonds said. Like many clergymen, when he says "we" he means "But you just can't' go down to these TV stations and get on. We did a whole bunch of one-minute commercials which got a fairly good response, but then my wife saw something in the paper about KPAZ in bankruptcy court. So I went down with some men of the church and we bid on it." We prayed about it Edmonds admits he didn't know anything about television stations and he had little money. "We were going on faith," said the evangelist.

"Rev. Raymond Schoch over in Glendale, is a good friend of ours and his church owns Channel 30. 1 called him and told him about it and he says, 'Get it, Lin, no matter what price you have to "So we did. I just kept on bidding and we finally stopped at $400,000. Ray built his station from the ground up for $1.5 million 60 we really got a good deal." But winning the bid and actually buying the station are two different things.

There were still two major hurdles: raising the money and winning Federal Spry and Channel 21 chief engineer Bob Brown check out new Japanese color camera recently purchased by Glad Tidings, Inc. stream" clergymen in Phoenix brought reactions ranging from strong support, to ennui to strong opposition. One refused to allow his name to be used for fear of harrassment by Bible Fellowship supporters. "They've got nothing to back these bonds up with," said Phoenix' Episcopal Bishop, the Rt. Rev.

Joseph M. Harte. "These bond deals are used by fly-by-night churches all over the country." But what about the property the church already owns? They have a sanctuary, a nursery school, a Sunday school building and additional property at 35th Street and McDowell on which they operate a rest home, I told him. "But who's going to foreclose on them?" asked the bishop. "And if they did, who would buy their property for anything near the value they place on it? This whole thing is simply going to result in a lot of heartache for a lot of innocent people.

These deals always do. pie who don't agree with my sermons," he said. "But at least this shows we have a regular audience. We are just tremendously pleased." Would his church switch from Channel 5 to Channel 21? "No, as long as the people at Channel 5 put up with us, we'll stay. I would never leave a commercial station to go to help the 'gospel A religious station has a place and their church is doing a good job with it.

This guy Edmonds is really sharp. "I'm not the smartest man or the best man you'll ever meet, but I believe in the Bible and I believe television has helped us preach the Gospel. Our church has grown from a $100,000 budget in 1967 to a $450,000 budget now." Jackson sees nothing wrong with Edmonds' bond campaign. "The bonds are fine," he said. "I think the integrity of these people is would want my children to see.

of fear to it" a rabbi want my church associated with Carl Mclntire. "I think anyone who owns the station should provide balanced programming and if they do that I would have no objections. But so far, all I've seen is Mclntire." Ehrhardt said he has only watched Channel 21 once during the past two years. The Rev. Paul Urbano, pastor of All Saints Episcopal Church, sees a need for a station such as Channel 21, but he disagrees with their brand of religion.

"The problem is, lots of people who watch this kind of thing have needs which aren't met by standard broadcasting," he said. "The churches with the greatest growth in America today are the Pentecostal and fundamentalist groups. There are reasons for this. One is that a certain segment of our society doesn't want to do its own thinking. "I tie the gospel in with the practice of daily living.

They ignore these things. They don't come on strong against the war for instance, or racism or poverty. "But I wouldn't take any action to try to stop this church from buying the station. I believe in freedom for everyone." First Baptist Church pastor, the Rev. Dr.

L. Doward McBain, said he has appeared on Channel 21 at least three times and plans to appear on a panel discussion again soon. "Yes, I helped sell bonds," he said. "They wanted our church to buy $13,000 worth of bonds and we would have gotten 30 minutes of free air time a week for a year. But we haven't accepted the proposal yet.

"You see, this is a little delicate for me because Mr. Lewis (the bond sales director) is a member of our church and a former American Baptist minister." Is he in favor of the purchase?" "Yes, even if they don't do things the way I do. I think it's a great idea and I have to give them credit for doing it. "I admit, as a 'mainstream' pastor I had a few second thoughts about having my name associated with a fundamentalist station. But they had second thoughts about having me on with some of my liberal views.

Ecumenism ought to work both ways. You see, I'm conservative theologically and liberal politically and economically. I'm a strange guy." If anyone can attest to the powerful effect television broadcasting can have on a church, it's the Rev. Richard A. Jackson, pastor of North Phoenix Baptist Church.

For the past two years, Jackson's church has bought an hour a week on Channel 5 to broadcast its Sunday morning worship services. The church pays approximately $32,000 per year for the live broadcasts. "We broadcast our services live and at the regular church hour because we didn't go on TV to reach church people. We have been so pleased with the result we are thinking of purchasing our own equipment and we hope to go color soon." The effect of the broadcasts on church growth has been dramatic, according to Jackson. not the kind of religion I sit has a wrong, negative kind tion deposited checks from the church totaling $31,060.

Whether the checks were for air time or to make up losses is not known. But it's a moot point. Since the church has to make up for the station's losses under the interim operating agreement with the federal bankruptcy court, the church might as well buy air time with its money and use it to sell bonds to raise more money. Though the FCC decision is weeks perhaps even months away, the church's strong influence is obvious as soon as you walk into Channel 21's offices. Station manager Gene Spry said he has nearly doubled the staff since he took over last year.

The former manager of Station KPHO spoke enthusiastically and at length on Channel 21's new programs. A report on those plans will appear tomorrow. Differences on staff But Spry was most enthusiastic about the staff he has assembled. "In the final analysis, it's people that make a station and we have some tremendously talented people, including a couple of excellent directors," Spry said. Pastor Edmonds has different ideas about the KPAZ staff.

"I shouldn't say much about it at this time, but we do plan to upgrade the staff when we take over. We'll be getting rid of some of the longhairs," Edmonds said. There were only two "longhairs" in view when I visited the station. One was one of Spry's new directors and the other was a portrait of a young man with long hair and beard which the station uses to sign off with each night But the fire of excitement crackled in the evangelist's eyes as he described the church's plans for the station and the results it has had already. Twelve persons, he said, called during one program alone and gave their hearts to Christ.

"Our little church only has enough seats for about 300," he said. "But my broadcast will be seen by thousands. Have you any idea what it would cost nowadays to build a church that would seat You couldn't do it for less than $500,000. With this station we have a potential audience of a million and a half." Edmonds conceded the religious programming will be largely the Pentecostal, conservative, literal Bible type. And it will be up to politically conservative groups like the Arizona Breakfast Club to provide their own equal time on their own shows for opposing views.

The breakfast club currently buys time for a 1-hour broadcast Saturday nights. "We want a child to be able to turn on the TV and leave it on all day to our station and never be exposed to the violence and filth that fills so much of the other channels," Edmonds said. How about roller derby and wrestling shows, both notoriously phony. Will the station keep those? "I think people know they're fixed," "We want a child to be able and never be exposed to the much of the other he said. "We'll probably keep them because they draw a good audience." "I don't feel like I really have a right to dictate to people.

I think we'll be taking a real good look at those things. "It's such a whole brand new field. We're probably only the second church in the U.S. to have a privilege like this. What a marvelous opportunity this is to reach people for Christ" Clergymen disagree Checks with a cross-section of "main- "If I sound overly pessimistic it's just that I've watched so many of these things over the past 35 years I've developed a jaundiced eye.

They never pay off." If approached by the station to take part in a program or to buy advertising would he accept? "We would neither advertise nor be involved in any way," he said. "This is so obvious a wheeling, dealing, unrealistic scheme I would just give them a flat A Jewish clergyman who asked that his name not be revealed for fear of harrassment said that to his knowledge no Jewish clergyman has ever been asked to participate in any Channel 21 broadcasts. "I have had no contact with them," he said. "This is strictly a Christian fundamentalist station and I don't believe what they say about offering time to churches of all faiths. I have never been invited to appear and I don't expect to, either.

"But if I were invited, I would accept. I have appeared on every other channel. "These aren't the kind of Christians you see in the normal vein. It's not the kind of religion I would want my children to see. It has a wrong, negative kind of fear to it." Finances have kept one Methodist church from participating.

"Yes, we were contacted," said the Rev. Dr. Evyn Adams, associate pastor of Central United Methodist Church. "We aren't doing anything, not because we don't want to, but because we can't financially. "I don't think they have done much work on their communications theory.

They can feed the people who are already committed but I am a little skeptical about whether they're reaching anyone who is uncommitted. "Their approach is like using a baseball bat to kill a fly." The Rev. Harry Griffiths, pastor of Memorial United Presbyterian Church located only a stone's throw from KPAZ's studios, said he has never been to turn on our station all day violence and filth that fills so Edmonds contacted nor did he know anything about the station. "I'd have to be sold on it," he said. "Other than that I have no opinions." Another Presbyterian had stronger feelings.

"I vaguely remember seeing something in my mail about the station but I personally have no interest in it," said the Rev. Dr. Charles R. Ehrhardt, pastor of First United Presbyterian Church. "The only person I have ever seen on that s'tation is Carl Mclntire.

I would not Lindell Edmonds: "We're going to get rid of some of the longhairs without question. I am completely in support of what they are doing." But the biggest supporter they need right now is the FCC. The station had hoped the commission, which meets only on Wednesdays, would approve its license application last week. Peter Mon-ahan, FCC attorney handling the case, said paperwork isn't ready yet and it could be several weeks before the application is heard. For administrative reasons, the FCC doesn't divulge when a license application will be considered.

"This is a very, unusual situation," Monahan said over the telephone from Washington, D.C., last week. But the unusual flavor isn't from the bond sales or the station's proposed programming. "The station can give or sell time to any church and we don't regulate their rates," he said. Promotion of bonds to purchase the station aren't against FCC rules either, he said. And many churches operate stations for profit.

Ironically, the church's shaky financial plans are more to its favor than its detriment, coupled with the fact Channel 21 is the only UHF station in the Valley. "All I can say is that it's an unusual situation when you have a station financed by contributions and by sale of bonds," Monahan said. "Since it's the only UHF station in that area and is struggling to survive, the commission may decide to loosen up its usual standards. "The prospective owners must file a plan to show it can take care of the station's first-year needs. They may well fall short of this, but I think they have asked the commission not to adhere strictly to the regulations on this." What advice would he give the church to help it win its case before the com mission? "Pray," Monahan said.

inside Movies in town N-3 Television N-5, 6, 7 Valley art N-8 Book reviews N-9 Communications Commission approval for a license to operate the station. To raise the money, Edmonds hired F. Gene Lewis, regional director for Omega Church Services, a Castro Valley, fund raising organization. The church and fund raisers worked out a program of income and capital notes to be sold ranging in cost from $100 to $1,000, paying interest of between 7 and 8 per cent depending on maturity. A $100 capital note, for instance, with a maturity date of Oct.

1, 1985, would pay 8 per cent interest and be worth $317 at maturity. If all the bonds in both schedules are pold, they would raise $325,000. Interest paid out when the last bond is redeemed will total $560,000. In order to sell the bonds, Edmonds and his church put together a television program, "The Gap," and they bought time on their own future station to air it. In addition to plugging the bonds, other church pastors are invited to appear, with the promise that if their parishioners purchase bonds they will be given free time during the coming year.

Lewis claimed about $230,000 worth of bonds had been sold by last week. He offered to send a team of churchmen out to my home to discuss the bond sales further. According to whose firm runs sion station in Utah. Locally, Station KHEP is owned by a Baptist church. Though FCC regulations specifically prohibit a prospective purchaser from making programming or administrative changes before a license application is approved, the church already is deeply involved in running the station.

Pastor Edmonds' son, also named Lin, hosts two sports-oriented shows a week. A recent showing of the Italian sexboiler, "La Dolce Vita," drew outcries from the prospective owners and the staff was given word to watch the content of the movies more carefully. In addition to buying time for its church-related programs, the church corporation, Glad Tidings Church, has to pay any losses the station incurs in order to keep the station operating and on the air. The losses are considerable. Net losses have totaled $80,867.30 from last June until January this year.

In addition, losses have increased by more than $1,000 per month during the last three months and revenue has dropped by about the same amount In February, the station had operating expenses of $30,374. Income amounted to $17,476, for a net loss of $12,897. Payroll accounts for $5,353 per month and the station pays $600 per month rent on its studio and offices in Tower Plaza. Between Jan. 29 and March 3, the sta "In the last two years, attendance has doubled in Bible study.

Attendance at morning worship has doubled. We have baptised between 750 and 800 people, more than double the previous two years. "Out of those 750 or 800 at least 25 per cent came from no other contact than TV. And I believe the TV people are more solid when they come." Jackson also gets lots of negative reaction. "I get big bunches of letters from peo-.