In my opinion the Columbia Broadcasting System has rendered a great disservice to Northwestern University, to the City of Evanston, and to the entire Metropolitan area. As Chief of Police of the City of Evanston, I know for a fact that this is a rarity, and by showing this film the impression is given to the community that this is a common thing. This was a malicious reflection on our community that does not exist. Very truly yours, BERT GIDDENS, Chief of Police. (Whereupon, the subcommittee was adjourned, subject to call of the Chair.) DECEPTIVE PROGRAMING PRACTICES THURSDAY, MAY 9, 1968 HOUSE OF REPRESENTATIVES, SPECIAL SUBCOMMITTEE ON INVESTIGATIONS, Washington, D.C. The subcommittee met at 10 a.m., pursuant to notice, in room 2123, Rayburn House Office Building, pursuant to House Resolution 168, agreed to February 27, 1967, Hon. Harley O. Staggers (chairman) presiding. The CHAIRMAN. The subcommittee will come to order. The House Committee on Interstate and Foreign Commerce has the duty and responsibility under section 136 of the Reorganization Act of 1946 to exercise legislative oversight or continuous watchfulness of the execution by the administrative agencies of any laws the subject matter of which is within the jurisdiction of the committee. Communications is one of such subject matters. House Resolution 168, 90th Congress, authorizes this special subcommittee to make investigations and studies concerning communications and the administration by the Federal Communications Commission of the statutes which it administers. Such resolution also authorizes the special subcommittee to make studies and investigations into advertising, fair competition, and the administration by the Federal Trade Commission of the statutes which it administers. I should like to stress that every effort will be made to insure that all constitutional rights and privileges of each witness will be preserved and protected during the course of these hearings. Witnesses will be permitted to be accompanied by counsel, who may advise them of their constitutional rights. A copy of rule XI, 26 of the Rules of the House of Representatives of section 136 of the Reorganization Act of 1946 and House Resolution 168, 90th Congress, will be given to each witness prior to his testimony. Our hearings have four principal purposes, to ascertain whether First, has station WBBM-TV Chicago violated the Federal Communications Act of 1934, as amended. Second, has this station also violated the Federal Trade Commission Act. Third, has each of these Commissions adequately administered the provisions in their organic statutes which pertain to the facts and circumstances involved in the proceedings before us. Fourth, do the pertinent statutes and regulations contain provisions adequate to protect the public interest in the light of the 129 testimony and evidence we will receive during the course of these proceedings. I shall now briefly summarize certain evidence already received by the subcommittee. On November 1, 2, and 3, 1967, WBBM-TV, Chicago, Ill., a CBS owned and operated station, broadcast as a news special a program called "Pot Party at a University." In addition to being advertised in "The Northwestern," a Northwestern University publication, this program was also advertised on November 1, 1967, in advance of its telecast, in newspapers, including the Chicago Tribune, Chicago Daily News, American, and the Sun Times. These advertisements represented that the pot party to be, and which was telecast, occurred "in the heart of a Chicago area university complex." Prior to the telecast the pot party filmed was previewed by the station for the benefit of a newspaperman from one of the leading Chicago dailies. The station refused to give Northwestern University officials a preview. The telecast script states in its opening lines, as follows: Now, WBBM Television News presents "Pot Party at a University," Part I of a two-part series on marijuana smoking-why they do it and its effects. Occasionally a black mark will appear on your screen or the screen may go blank for a few seconds. This is to protect the identity of the persons involved. Now, here's reporter Jack Missett with Part I of "Pot Party at a University." (MUSIC) This is a party on the campus of Northwestern University in Evanston. It appears to be a typical college get-together with Northwestern students, a teacher, and two college drop-outs. But this party is different and what makes it unusual is the "refreshments". For instead of just having soft drinks or beer at the party these young people are smoking marijuana ;—marijuana-or pot-is not just part of the party, it's the main topic of conversation— (MUSIC AND BACKGROUND CONVERSATION OR COMMENTS) In the eyes of the law you are witnessing a crime. Under Illinois law possession of marijuana is a crime punishable by imprisonment for two to ten years for first offense, and up to life imprisonment for repeaters * * * According to evidence already received by the subcommittee, the pot party was staged by the station. There is evidence that the party was filmed by the station in a privately owned residence and not universitycontrolled housing. The first week in November was the beginning of a prime rating period. Ratings during this period are the yardstick in a highly competitive business. We have documentary evidence that station WBBM-TV obtained from American Research Bureau, Inc. a special survey to measure the audience viewing the program in question. The foregoing indicates that station WBBM-TV obtained from American Research Bureau, Inc. a special survey to measure the audience viewing the program in question. The foregoing indicates that station WBBM-TV may have violated both the Federal Communications Act and the Federal Trade Commission Act. We have the responsibility of ascertaining whether a false and deceptive broadcast was telecast over a channel licensed only to serve the public interest, and whether a rigged event was deceptively held out to the viewing public as a bona fide news special. Under Illinois law, as stated in the telecast, possession of marihuana is a crime punishable by imprisonment for 2 to 10 years for a first offense, and up to life imprisonment for repeaters. Inducing others to possess or use marihuana is punishable up to 25 years imprisonment. Under narcotics laws the pot party rigging would also constitute a Federal criminal offense. Allegations and evidence have been received by the subcommittee that representatives and employees of station WBBM-TV arranged the pot party and induced participants to possess and use marihuana and hashish. The subcommittee in fulfilling the duties and responsibilities entrusted to it is proceeding on the basis that it will fully and fairly examine the pertinent evidence and operations of the Federal Communications Commission and the Federal Trade Commission under the statutes which each administers, and the operations of the communications facilities. In the performance of its task, the subcommittee has no desire and does not intend to ruin the good reputations of any innocent persons. In accomplishing its legislative duty, the subcommittee will observe scrupulously all the fundamental safeguards afforded by our Constitution to corporations and individuals. On April 15, 1968, the subcommittee pursuant to the rules of the House, held executive hearings during which certain participants in the pot party gave their testimony. These witnesses testified upon the assurance given to them and to one of their counsel that their identity and their testimony would not be released except by authorization of the committee. I now wish to caution and enjoin all witnesses appearing before us today and tomorrow not to refer by name to any of the participants in the pot party. When it is essential for the completeness of the testimony of any of the witnesses about to appear before us that the names of the participants be disclosed, I will call a recess and canvass the committee to ascertain whether such testimony should be taken in executive session. Naturally the subcommittee, having obtained testimony from witnesses upon an understanding that their names would not be publicly disclosed except by authorization of the committee, must live up to this commitment. So, I repeat my caution to all those who are to be witnesses before us today and tomorrow that they should not name the pot party participants and should wait until the subcommittee has made a determination whether such testimony should be received in open or executive session. We shall now call our first witness and have him sworn. As I understand perhaps three of you want to appear the first time. That is right, Doctor? Mr. STANTON. That is correct. The CHAIRMAN. Would the three of you come forward? Would you three raise your right hands? Do you solemnly swear that the testimony you are about to give this committee is the truth, the whole truth and nothing but the truth, so help you God? Mr. STANTON. I do. Mr. SCHNEIDER. I do. Mr. WOOD. I do. The CHAIRMAN. At this time, I will turn over the questioning to our subcommittee counsel, Mr. Lishman. TESTIMONY OF FRANK STANTON, PRESIDENT, CBS, INC.; JOHN A. SCHNEIDER, PRESIDENT, CBS/BROADCAST GROUP; AND ROBERT D. WOOD, PRESIDENT, CBS TELEVISION STATIONS DIVISION Mr. STANTON. Mr. Chairman, with your permission, I would like to make an opening statement. Mr. Chairman, I appreciate this opportunity to appear before the committee. You are inquiring into an allegation made almost 6 months ago by a person or persons who have never yet been identified to us that a two-part, 14-minute news segment broadcast early last November by WBBM-TV, the CBS television station in Chicago, contained a marijuana party sequence which was staged by the station. In addition to personnel of the station, 12 of whom you have requested to be present at this hearing, you have asked me to bring my colleagues, John A. Schneider, president of the CBS/Broadcast Group, sitting to my right, and Robert D. Wood, president of the CBS Television Stations Division, who is sitting to my left. Mr. Schneider oversees the operations of all four broadcast divisions: the CBS Television Network Division, the CBS Television Stations Division, the CBS Radio Division, and the CBS News Division. Mr. Wood oversees the operations of the five CBS owned television stations, including of course WBBM-TV. As you know, Mr. Chairman, in my letter to you of April 30, I strongly urged your intervention in this matter to the end that these charges against WBBM-TV be fully and publicly aired. I am reassured that you are now ready to hear the testimony of WBBM-TV personnel with respect to this matter. I trust that in the interest of fundamental fairness, the full committee will also publicly hear and carefully scrutinize the charges against the station which, until now, have been heard in executive session, closed to the public. Needless to say the most meaningful and direct testimony which is available to you is that of the individuals who were immediately involved in the reporting and broadcasting of the news segment in question. These individuals will be prepared to testify as soon as you are prepared to hear them. I now turn to CBS's view of the nature of its responsibility for operations of its television stations. I need not remind the members of this committee that one of the principal objectives of the Federal Communications Commission's regulations of broadcast licenses in the public interest is to insure that such licensees are responsive and sensitive to the needs and interests of the communities in which they are located. The Commission has repeatedly emphasized that decisions concerning the day-to-day operations of a broadcast licensee, including in particular its day-to-day programing decisions, must be made by persons who are familiar with the community and understand its needs. |