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SAVE NOW for The Future! Open Your Account t at Alice Savings & Loan Association CURRENT DIVIDEND RATE 3Y2% PER ANNUM Insured by an Agency of the Federal Gov’t BOB MULLEN, Vice President Mullen Building Alice, Texas The LBJ Co. With black headlines but facts not nearly so startling, Washington reporter Neil McNeil and Texas ScrippsHoward newspapers last week took out after Senator Lyndon Johnson’s family’s interest in radio and television stations in Texas, which fall under the regulatory judsdiction of the Federal Communications Commission. As is well known, but not well publicized in Texas, Mrs .. Johnson and the Johnsons’ two daughters own most of the LBJ Company, which in, turn owns KTBC-TV, the only television station in Austin.; 50 percent of KRGV-TV in Weslaco; and 29 percent of KWTX-TV in Waco. On the crest of the FCC investigation in Washington, McNeil, in three stories bannered in the Houston Press and El Paso Herald-Post, reported that: 1.Two communications from Waco citizens to Johnson about KWTX-TV were transmitted in a routine manner from Johnson’s office to the FCC, but without recommendations, and well before the LBJ Co. acquired its interest in KWTX-TV. 2.Also before LBJ Co. bought into KWTX-TV, management of KWTX-TV accused LBJ Co.’s KTBC-TV with violating antitrust laws; the complaint was dropped a month after it was filed. 3.Austin is “by far the largest city in the state of Texas where channel has been assigned.” While the third point received less attention than the first two, it is probably of more importance for Johnson’s political welfare. O’f the 579. outstanding shares of stock in the LBJ Co., McNeil quoted FCC officials, Mrs. Johnson, chairman of the board, holds 352, and each of the Johnsons’ two daughters have 74 each in two trusts for them. Other shareholders, and their shares: J. C. Kellam, president, 32; Paul Bolton, secretary \(and KTBC’s kins, treasurer \(and Johnson’s administrative assistant in Washseven; Donald S. Thomas, secretary, one; W. W. Moursund, one. McNeil called incorrect a -report by Drew Pearson \(Obs. Feb. “quickie” grant for KTBC-TV in 1952. It was, however, one of the first grants after TV channels were unfrozen, he said. Pearson had said KTBC was licensed one morning after an application had been filed the night before. FCC records showed the application was on file for four months, and no one had contested it. The first letter from Sen. Johnson to the FCC on KWTX-TV was Feb. 4, 1952, and merely transmitted a letter from Wm. J Boswell of Waco to Johnson asking about FCC procedure on the TV channel application and outlining the proposed owners of KWTXTV. FCC Chairman Paul Walker replied to Johnson March 3, “the determination would be based upon the facts as shown in the application.” April 30, 1953, Johnson wrote enclosing a resolution of the Waco board of commissioners concerning the TV channel. “I will appreciate your giving serious con partment reflect a heavier unemployment picture in rural areas. Welfare officials say an unemployed worker can occasionally pick up a day or so of work in the city, when such work generally isn’t available in rural areas. A.H., E.F , R D sideration to the problem, based on its -merits,” Johnson said. Jenkins bore down on a description of both of these as form transmissions, entirely routine. KWTX-TV won the channel, a competitor losing out. On Apra! 29, 1955, KWTX-TV protested the action of FCC in granting, without a hearing, KTBC-TV’s request for an increase in power and range. The Johnson family’s firm, said the complaint to FCC, “has violated and is continuing to violate the Sherman Act and the Clayton Act … against undue concentration of control and favoring free enterprise to the great financial detri. ment of KWTX-TV …” which, said the complaint, was only 96 miles away. The Johnson firm also controlled KANG, a UHF radio station in Waco, it was pointed out. The LBJ Co. denied any attempt to freeze out KWTX-TV and challenged the existence of an overlap. The FCC indicated it would not act on the complaint; it was withdrawn on May 16, 1955. Disposing of KANG, LBJ Co. acquired 29 percent of KWTX-TV in 1956. McNeil’s conclusions were that Johnson took “an official interest in the license application of a TV station that is now owned in part by a company controlled by his wife,” and that KWTX-TV charged KTBC was violating antitrust laws “less than a year before” LBJ Co. got 29 percent of KWTX-TV. On March 12, 1956, the LBJ Co. asked FCC for permission to take over 50 percent of KRGV-TV, Weslaco, owned by the Taylor Broadcasting Co. of Wichita. Permission was granted. LBJ Co. loaned the Weslaco interests $243,000; _4, return, J211.-___Co_ got the 50 percent. Of the _stock. KRGV liabilities in net worth were almost a quarter of -a million dollars when LBJ Co. entered this picture, FCC records showed. IN USTRIAL LAYOFFS laid off about 150 workers, ac cording to J. Elro Brown, Oil, Chemical and Atomic Workers union District Four director. Brown, whose district comprises the south half of Texas and the state of Louisiana, said the pic ture “was not good.” He reported 1,180 laid off in his union’s bar gaining units in the district. which would indicate other layoffs in non-organized plants. Brown reported the following figures on layoffs by plants in his district where the Oil Workers are the bargaining agent: Goodrich Gulf, Port Neches, 15; American Oil, Texas City, 150; Republic Oil, Texas City, 35; Gulf States Asphalt, Houston, twelve; Delhi-Taylor, Corpus Christi, six; Corn Products Refining Co., Corpus Christi, 30 \(with the remainGulf Refining, Port Arthur, seven; Phillips Chemical, Houston. 160; Shell Chemical, Houston, six; Olin Mathiesen Fertilizer, Pasadena, eight; Texas Pipeline, North Texas Division, 16. These type plants heretofore have been hiring and expanding instead of laying off and cutting down. Furniture Workers Union officials in Houston reported that about 250 of their members are jobless. L.Tom Fox, secretary of Oil Workers Local 4-227, said that about 400 members of the 4,000member local have been laid off; 200 have lost their jobs since Dec. 15. His figure for Gulf States Asphalt, 30 to 40, seemed to be later than Brown’s. The Meat Cutters Union reported a decrease of 300 in membership on account of layoffs at Borden, Armour, and Eastern Poultry. The Bakery Workers Union reported that about 1,000 were working regularly as compared with 1,200 at the same time last year. Fred Lucas, Carpenters Union district secretary, reported 1,000 members of the 4,000-member Local 213 idle. At least twice that number of unemployed carpenters have registered with the Texas Employment Commission offices in this area. Bad weather was one factor. M.A. Graham, business representative for the Building Trades Council, and N. E. Coward. secretary of the Houston Labor and Trades Council, agreed that at least 3,000 building trades union members are idle at this time. Graham said that only about 300 of these have filed unemployment compensation claims thus far. E. C. Wolff, general chairman, T. & N.O. car department, Houston, said 375 carmen have been laid off, and that he had been hearing reports that a new cut was imminent. Common. Laborers Union officials reported between 150 and 200 jobless, but they said this was due to bad weather which curtailed outside employment. Machinists Union officials reported 64 laid off at Cameron Iron Works, between 75 and 100 at W-K-M, and between 40 and 50 at McEvoy oil tool. \(Some of the unemployed at Dow Chemical Page 5 February 28, 1958 Member of the American Society of Piano Technicians Douglas R. Strong PIANO TECHNICIAN Tuning, Repairing, Rebuilding JAcks 011 3-1276 808 Harold, Houston 6, Texas 200 a Day Some 35 persons have been added in the offices of TEC in Houston to handle the soaring number of applicants and process their claims. At the Bell street office of TEC in Houston 200 initial claims are being filed every day presently, whereas last year the usual number of new claims filed was between 50 and 60. TEC is opening a new office in Houston and will desegregate the other offices under a directive received from Washington, the Observer learned. The Pasadena office of TEC has been snowed under; it had to stay open until 8 p.m. several nights recently, it was learned. Cheerful headlines have been appearing in the Houston newspapers. The Houston Post Sunday said in one, “Employed Are Saving More and Paying Bills.” An editorial the same issue was entitled, “Unemployment Reflects Economic Adjustment That Can Be Healthy.” This outlook contrasts, however, with other indications of concern by large businesses. Southwestern Bell Telephone Co. has sent letters to all of its employees, urging each one of them to “sell” telephone service, color sets, and so forth, on their own time The telephone company has declined to re-employ about 300 workers who had taken maternity leaves until a full year expires. Ordinarily, according to Local 6222 President T. 0. Parsons, these employees ordinarily would have been re-employed in about six weeks after the birth of their children. In the garment industry in Houston, Dallas, and San Antonio unemployment and part-time employment have increased sharply, especially in the last six months. In Dallas, some shops have not opened their doors for the past two weeks. In the past year several small shops have gone out of business, and some of the large shops have curtailed their working forces by as much as 25 per cent. At Rockdale, Alcoa laid off 250 men and Industrial Generating Company another 87. R. R. Sugg, Alcoa plant manager, said the company continues “to think beyond what appears to be short term fluctuations.” Alcoa’s 250man layoff was distributed among many townsRockdale 50, Taylor 23, Thorndale 23, Caldwell 17, Cameron 16, Thrall 10, and the remaining 111 in numerous other towns in a large area around Rockdale. Unemployment compensation claims were up in Laredo 1,000 over last year. The Salvation Army reported that the issue of groceries doubled from December last year to January 1958. Several hundred people gathered In Bruni Plaza to receive food bags given out by Mexico de Afuera, an organization headed by Homero Alvarado. In Corpus Christi Agriculture Commissioner John White said the recession “is the result of a sharp decline in the purchasing power of agriculture. … Right now farmers need 30 percent more ‘acreage for cotton; and the support price should be maintained at 90 percent of parity.” He said farmers with less income buy fewer tractors, trucks, implements, and this affects all who deal in these items. Roy Evans, president of United Auto Workers Local 893 at Chance-Vought aircraft and a leader in Dallas labor circles, says “the companies are trying to use the job squeeze to knock wages down and to knock the seniority situation out of the contracts.” His local’s contract with Chance-Vought is up for renewal March 8. “Right now,” he said last Saturdaybefore entering negotiations this week”it looks like a strike to me.” About 500 of the 10,000 workers at ChanceVought have been laid off. Five hundred workers were laid off at General Motors in Arlinyton Monday, reducing the force there from 2,150 to 1,650. Evans said half the 2,000 workers at Bell Aircraft at Hurst have been sent home. About 1,000 of Temco Aircraft’s 6,500 workers at Grand Prairie, Garland. and Greenville have been laid off, he said-500 of them at Grand Prairie. “We can’t put any of our people to work anywhere alse,” Evans said. “There are an awful lot of people in my office every day looking for jobs.” Wage Cuts Temco Aircraft is inaugurating a series of wage cuts from ten to 52 cents an hour. A company spokesman said they are incident to “reclassifications” caused by layoffs and low seniority brackets which left the plant overloaded with skilled workers. UAW officials said 53 high skilled workers at Temco received the first wage cuts Friday; further cuts continued this week. From 800 to 1,000 workers in the Dallas area are expected to be affected. B. J. Thurman, president of Temco-Garland UAW Local 1081, said he had met with two high company officials to try to stop the cuts but to no avail. He said high skilled jig builders, some of them Class A employees for four years, had taken cuts from $2.76 to $2.15 an hour. TEC officials in Fort Worth say unemployment there is fairly widespread and “continuing.” TEC figures released”thiS week show 197,500 people employed in the area compared to 205,500 in January, 1957. TEC records reflect 15,200 unemployed now, compared to 10.800 unemployed. in January, 1957. The 15,200 unemployed persons represent, 7.1 per cent of the total labor force for January. In January, 1940 TEC records showed 16 per cent unemployed. State unemployment insurance checks totaling $481,950 were paid out in Fort Worth in January. An additional $231,818 was paid to unemployed in the TEC’s Fort Worth districtMineral Wells, Wichita Falls, Vernon, Denton, and Brownwood. In January, 1957, payments in Fort Worth were $158,699, with an additional $138,556 paid out for ,