Birmingham Post-Herald from Birmingham, Alabama on May 24, 1976 · 34
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Birmingham Post-Herald from Birmingham, Alabama · 34

Birmingham, Alabama
Issue Date:
Monday, May 24, 1976
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1 I 1 I n PACE 820 BIRMINGHAM POST-HERALD Monday May 24 1976 Prospects for tv-2 1 run afoul By Stewart Lytle Post-Herald Correspondent WASHINGTON - The prospects of Birmingham getting a fourth commercial television station soon grew dim this week as the competition for Channel 21 dropped into a bureaucratic quagmire Birmingham Broadcasting Company I BBC) one of the two competitors ran afoul of the administrative law judge assigned by the Federal Communications Com mission ( FCC I to hear the case because the attorney for BBC is also an officer and major stockholder Arguing that the judge was prejudiced against it because of the attorney issue BBC tried to have the judge disqualify himself When the judge denied the motion BBC appealed the decision to the full commission A spokesman for the FCC predicted it would take several months before the commission would rule on the BBC appeal But for the competitors — BBC and Chapman Radio and Television Co — a delay of a few months must seem insignificant in light of the fact the competition began 10 years ago and for years lay dormant before it was revived last fall The question the FCC must eventually deride after it sweeps aside a series of legal technicalities involved is simply which competitor would be the better operator for a new independent television station in the Birmingham area To operate a new station independent of a national network will require sound business judgment and expertise if the station is to survive Many UHF stations loperating on channels above 13 1 are only marginally successful because of higher operating costs and -mailer audiences on the surface both Chapman and Kill' seem qualified Chapman has a lung history in Birmingham broadcasting operating WCRT-FM radio until selling the station in 1972 And the principals in BBC also operate WLPH in Irondale as Alabama Religious Broadcasters But two Issues underlying the competition set BBC and Chapman apart One involves the merits of black ownership in a Birmingham television station The other involves the relative financial strength of the two BBC attorney Ellis J Parker III argued before the FCC that because black Birmingham businessmen would own 20 per cent of the station and participate in its management the public interest would be better served by BBC The Chapman Co a partnership between George A and William A Chapman has not black ownership The black investors in BBC include Birmingham City Councilmember Arthur Shores state director for highway traffic and safety Jesse J Lewis and Dr James T Montgomery Dr A G Gaston withdrew from BBC because his ownership in the Booker T Washington Broadcasting Corp which operates another Birmingham radio station would be in conflict Shores is listed as vice president and general counsel of BBC Lewis would be sales manager for the station according to testimony before the FCC But the role of the black businessmen in BBC is left open to question by the financial arrangements Although no stock has been issued in the 10 years of its existence depositions in the case reveal that 80 per cent of the company is held by three white men Parker Birmingham businessmen Oscar E Hyde and James Long of Louisville Ky who received their equity in BBC for "services'' rendered toward obtaining the FCC licenses Parker the attorney said he holds 133333 or 2625 per cent of the 500000 unissued stock shares Hyde who was to guarantee a $50000 loan to BBC held 133334 shares before he transferred it to the Oscar Hyde Christian Foundation Lang also holds 133333 shares for undisclosed “services" For the blacks to gain their 20 per cent of the company will have to purchase the shares at $1 each meaning that outside of some legal fees paid by Hyde Lang and Parker the black businessmen would contribute the only financial resources BBC has in exchange for only 20 per cent of the station One observer close to the FCC proceeding called the blacks "only window dressing” in the BBC application Hyde's involvement in the license application has complicated the process After his conviction in federal court for income tax evasion and extortion conspiracy BBC brought suit to remove Hyde from involvement Hyde offered to transfer his holdings in BBC to Miles College but the FCC refused to approve the transfer So 133334 shares of BBC are still held by the Hyde Christian Foundation But Hyde because of his convictions will not be allowed by the FCC to hold any part of BBC if it wins the operating license The financial backing for BBC is also in question because its loans were guaranteed by two financial institutions the American National Bank and the Jefferson Home Loan Company neither of which now exists Successors to both institutions including the National Bank of Commerce and others have indicated they would be willing to make loans to BBC primarily because of the involvement of Birmingham businessmen like Shores and Lewis Named marketing director of Birmingham Coble Communications Inc is Sidney M Burgess Burgess comes to the cable television facility from the Alabama Radio News Network where he served os news director OPEC may hold prices Associated Press WASHINGTON - A top Treasury Department official says he thinks that there is a good chance that the oil-exporting nations will hold prices steady at their meeting this week "Based on the discussions I've had I think the likelihood is good that they will hold the price" said Gerald L Parsky assistant secretary for energy and international affairs Parsky's comments in an interview put him at odds with the assessments by others of prospects for the meeting of the 13-member Organization of Petroleum Exporting Countries or OPEC James E Akins former US ambassador to Saudi Arabia has predicted a 10 per cent price increase Iran's interior minister and Venezuela's vice minister of mines and hydrocarbons have both publicly argued for higher prices without specifying the size of any increase Parsky says any extension of the current freeze beyond its July 1 expiration date could be temporary But the worldwide economic recovery is far from assured in most oil-using industrialized countries and Parsky says that situation is likely to prompt moderation by OPEC "I think there is a growing awareness of the impact a price increase could have on economic recovery that's taking place worldwide I know the Saudis have expressed an understanding of the impact it could have on demand" Parsky said A 10 per cent increase in the price of imported oil which accounts for about 40 per cent of US needs would add a penny a gallon to the consumer's price of gasoline if oil firms passed along the entire increase Parsky and Treasury Secretary William E Simon visited Saudi Arabia during a Mideast tour in February That country is the world's largest oil exporter and is the OPEC nation which has absorbed the bulk of the production cutbacks necessary when demand slumped in the past two years as a result of higher prices and the worldwide recession Saudi Arabia indicated clearly it would seek to keep prices steady lest an increase now dampened demand just as it is picking up Parsky said At last year's meeting where oil producers raised prices by 10 per cent Saudi Arabia also argued for moderation then while Iran sought a bigger price increase than was finally agreed upon Parksy says he hasn't spoken to the Iranians about the meeting set for the island of Bali on Thursday so he doesn't know their position this time "But I do know that they too do not want to create any economic dislocation on the world" he said 'Bad blood' cited in death United Press International MUSTANG Nev - Sheriff Robert Del Carlo said Sunday there was "bad blood" between heavyweight boxing contender Oscar Bonavena and a guard at the brothel where the fighter was shot to death possibly over a girl who worked there The handsome 33-year-old Bonavena killed outside the Mustang Ranch brothel Saturday listed the establishment as his mailing address took out a license to marry an employe and had turned over his career to the owner The guard Willard R Brymer 31 held for investigation In the slaying was transported to the maximum security Nevada State Prison in Carson City Del Carlo said Bonavena a non-smoking non-drinking Argentinian who was the world's seventh-ranked heavyweight was killed instantly at the gate to the brothel at dawn by a single bullet in the chest from a high-powered hunting rifle Del Carlo said no specific motive for the slaying has been established and no formal charge filed yet against Brymer but added there was "bad blood between the two" P-H intern gets grant A University of Alabama student Howard Gollop of Huntsville has received a scholarship grant from Play-girl magazine for an interview-article about singer Joni Mitchell Gollop who works as entertainment editor of the Crimson-White a student publication is a reportorial intern with The Birmingham Post-Herald Boilers e Temperature & pressure controls Combustion Equipment Sales Service a Ports Southern Combustion I Controls Inc -712 S 29th 322-726 1 ® bayliss Mg0 BIRMINGHAM ALABAMA AR Kinds tf WsWiag I 6— ral Machine Wert "Home of Quality Work SUTORBILT FACTORY REPAIR CENTER PA Bu 10047 901 M Amu N 321-4121 P-IMt PRIMING CO 1 675 montdair rd eastwoad bldg suite 152 e birmingham al 35210 folding freeperfchg stapling “nunncami nnvwopns collating own av padding 5 5924411 metal platesT electrostatic copies WX11$995M camera ready copy bond paper Included In these prices forms brochures letter heads State of economy is looking better By Herbert Stela Sis months ago the best guess was that by the time the 1976 presidential election rolled around the economy would be in poor shape but improving and the conventional wisdom wa that the improvement The economy today would help President Ford more than the poor level of the economy would hurt him Today the prospect is different The state of the economy this fall may be better than was expected earlier At least employment and output will probably be higher and unemployment lower The inflation rate will be no higher and possibly may be a little lower than previously forecast But the improvement of the economy will not be so clearly visible It will be leu obvious and certain that unemployment is falling and inflation subsiding And of course it cannot be taken for granted as it might have been six months ago that Gerald Ford will be the Republican candidate At least the economic side of this change in the outlook resulted from the extraordinarily good performance of the economy in the first quarter of this year That substantially improved the level of all the economic indicators but it also set a standard which may make the subsequent performance look disappointing In the first quarter of the year total output rose at an annualrate of 8 and one-half per cent The common forecast had been that the increase would be around 8 per cent and possibly as little as 5 per cent The surprisingly large Tise was due to the accumulation of inventories by businesses at a rate that no one expected We still don't know why businesses built up such large inventories in the first quarter But it is extremely unlikely that we will see such an increase in the rate of inventory investment again during the remainder of the year In fact businesses may decide they built up inventories too fast and may cut the rate of accumulation The rate of increase output in the two quarters before the election will probably not exceed 6 per cent from the 8-and-one-half per cent rise of the first quarter One can easily imagine opposition candidates claiming that the recovery which Ford boasts about is petering out On the employment side we have had a totally unexpected rise of employment by two million from December to April The decline of the unemployment rate — from 83 per cent to 75 per cent — in the same period also exceeded forecasts Whereas six months ago one might have thought that in the months just before the election the unemployment rate would be around 7-and one-half per cent the present prospect is that it will be a little lower - say 7-and-one-quarter per cent But that meaas that the decline in the unemployment rate during the rest of the year will be slow And if the decline is slow there will be some months in which it doesn't decline at all or it may even rise a little The question whether unemployment is improving will be debatable In fact when the unemployment rate remained at the same level in April as it had been in March some were saying that we were stuck with a high level of unemployment The most surprisingly good economic figures of the first quarter were the inflation figures The Consumer Price Index rose at an annual rate around 3 per cent compared to over 7 per cent in the last three months of 1975 1 st military union charter set July 1 Associated Press WASHINGTON - The nation’s first military ' union will come into being on July 1 The Association of Guard and Reserves is scheduled to receive its charter on that date as an affiliate of the Washington-based Association of Civilian Technicians The guard association's national president is M Sgt William L Spence of the Illinois National Guard As the union issue continues to move ahead in the offices of at least three national unions the lines of opposition are firming in the Congress At least one bill banning military unions sponsored by Sen Strom Thurmond R-SC cosponsored by 31 fellow senators has been introduced in the Senate Another five bills have been or are scheduled for introduction in the House The Pentagon continues to maintain a low profile on the subject but periodically in response to questions officials maintain their steadfast opposition As late as May 5 Secretary of Defense Donald H Rumsfeld said in a speech "the idea of unionizing members of the armed services is fundamentally incompatible with the command structure of the military services” - Spence lives in Peoria and works as a civilian for the Illinois Air Guard besides being a military member who participates in weekend drills "We have to have some form of a spokesman Management has found a new way to take punitive action against an individual" he said in a telephone interview HHH CaM and find out how "I BUY HOMES DIRECT Workt 252-8187 879-4647 “rhmrwal O BROOKS 1) A Ape -CM MUn ' aSSSuP V MNIk Wfcaai AM M at RM JYEUXNG COl ()' MS Signs of all Kindt Vmi Bachs Mff IMI99 1SI TA04 KILL ROACHES ANTS JOHNSTON'S NO-ROACH EFFECTIVE FOR MONTHS EASY TO USE BEAUTYGMVEDJ tStAtwmtuTfd iSnndoKj $1390 loos Jsha Stone (enter) general manager of H S Metals Corp Is shown here flnnked by his two sssis tints Chnrlotte Taylor and Grady Smoot The company is located at 113 North 13th Street H S Metals Corp highly successful dealer in all non-ferrous metals Genuine ENGRAVED LETTERHEADS 83000 for 1000 sum 'imams Km FREE! Rubber-Stamps ILOCII liti 1)111 notary dr corp! seals mmnnQ o Owt Ihaj-i- PIOIE 981-4232 I WO SALESMAN WU DWWHOU DEWBERRY ENGRAVING CO H S Metals Corp a highly regarded firm dealing in scrap metal has been in business here for the past eight years and they attribute their success to their business procedures and close relations with customers During the past year according to General Manager John Stone H S Metals has acquired many new customers through one of the most valuable types of advertising — namely word of mouth That is to say the firm's older customers have passed the word about H S Metal’s operation along to other people resulting in new customers being added to the books H S Metals welcomes all inquiries from those who may have a supply of non-ferrous scrap metal especially plumbers electricians auto parts yards plants wrecking companies motor rewinders etc The company deals only in non-ferrous metals such as copper brass auto radiators batteries lead aluminum stainless steel nickel monel inconel silver gold platinum x-ray film and numerous other items Buss Ahumm Sum less NAMEPLATES IkHcdCapiwd Scitowd NO MINIMUM QUANTITY Sign J Mm(1S1S-1I1S lodge! raiuu-a ihiUwr Ira TnmsvMr Al HITS IhMipf uwmmr MarCelnc 0 Numerically Controlled Lathe Precision Machine Work Stainless Steel Specialists Inventory of stainless tubing PAWNEE ROAD PINSON — PHONE 849-7421 INOR FENCE BIST I THESE ADS PAYOFF !Jour dependable Fence Man VM tf 780048315 Certified Applicators JOHNS-MANVILLE BOOTING ANO SUING Gantiwl RiptlfU'MuMnuiR isOng onrf on our 29 poors Birmingham Siding A Roofing Co 1301 Pln—w hr— I Torrent 841-5566 EXCLUSIVE OVa THE MOUNTAIN SERVICE Fmonal Service Package Delivery UNITED CAB CO OF HOMIWOOO INC 1119 29lh Avenue Swill 24 far 871-4684 — 87 1 -0878 24 hr in City limits of Bliom cull 591-7701 VERMONT' HARNBOARD ‘tU W MtocA 4tU£ tkc at took tod tie KOWtpptt! VERMONT BARNBOARD is fresh-cut from native pine and treated to look and feel nearly 200 years old Colors Available: Weathered Gray Weathered Gunstock COLE-HALL LUMBER CO 3200 5th AVE S Ph 321-8381 CLOSED SATURDAY Moving to Pelham this summer LONNIE RUSSELL IS CBmUl AND N08TH ALABAMA MSTRIBUT08 FOR All FORD INDUSTRIAL ENGINES DIESEL GASOLINE COMPLETE PARTS SALES & SERVICE on Hi )ob iwpaire All saw available certified diesel mechanics on duty LONNIE RUSSELL FORD POWER PRODUCTS 2428 WARRIOR ROAD 786-1583 s We would like to show you how to SAVE UP TO 25 on eperotional costs of your heating & air conditioning system It HEATING-COOLING-ELECTRICl 'Pho6 9673140 jjj Fraser-Johnston Vbltay Heating Coding A Electric Carp ha been In bating dnce 1961 and ho homed a lot about fud comervetlon If you're unhappy wirti your proaenf yMem become of cot of operation or overall comfartperformonce give ut a caN and one of our qualified people yvi be right out to look d your situation At VaHoy M houo ovoqrthing from oloclronlc air doonor to humtdffiar to high officioncy hoot and dr condWcnlnB equipment Irka Froer Johmton phi fudwvtng Honeywell 1 Economiser control It wM CO you nothing to pick our head for a lew moment but N could cet a let d diacomfort and money bier on If you Or M may bo tfwt an addltiand contrd I oM that' needed to mde your pro lent unit more officiant WtfPCOAUZf M BKMV CONSERVATION AS WBL AS HEATMO COOLING ELECTRICAL AND PLUMBUM PL8M BK GHmUHTE eecjnsr HABLSPUftY ONE OR nau Dn k ell with Gravely Convertible Tractor and attachment All gear drive Nobody ebe makes anything cbe that due 10 many Job 0 well Come ice — free demonilralioa Wd sarvica what wa sell GRAVELY SALES AND SERVICE 500 7lh Street North 251-1001 LIKE NOBODY ELSE C 3 I i km'

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