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Don Burden Loses Stations for Political Gifts

(from Broadcasting Magazine February 3, 1975)

(The actual text of the magazine article)

In action believed unprecedented for severity, FCC last week denied renewal applications of all Don Burden-owned stations - three AM's and two FM's. Commission said Mr. Burden was guilty of "pervasive and continuing misconduct" in operation and lacks "requisite qualifications" to be licensee. Record, it said "requires" denial of each of his renewal applications.

Mr. Burden promptly announced decision to carry fight to courts. He said that although he had not yet seen copy of commission's order, his attorneys were certain it was "fraught with errors of both fact and law."

Commission based its decisions on misdeeds attributed to Mr. Burden dating back to 1964 and focused largely to allegations his stations were improperly used to favor political candidates of his choice - and thus to "subvert the political processes" - in 1964 and 1966.

Mr. Burden favored Senator Vance Hartke (D-Ind) in 1964 and Oregon's Republican governor, Mark Hatfield, in successful Senate race two years later, commission said. Mr. Burden was also said to have made illegal corporate gift of $1,000 to Hatfield campaign.

In both campaigns, commission said, "newscasts were used as vehicle to publicize Burden's preferred candidate - not as an exercise of news judgement, but as a deception of the public and to further his private interests."

It also said: "Criminal provisions of federal statutes governing corporate gifts to candidates were disregarded. Such attempts to use broadcast facilities to subvert the political processes cannot be ignored or condoned."

Veteran commission attorneys could not recall another instance in which broadcaster was stripped of string of licenses in one proceeding. (Alabama educational TV authority was denied all renewals last month [Broadcasting January 13, 1975] but was allowed to reapply for them.) Vote was 5-to-1, with Commissioner Robert E. Lee dissenter and Commissioner Benjamin L. Hooks not participating. Commissioner James H. Quello, who for years was manager of WJR-AM-FM Detroit, concurred "reluctantly." He said commission action was "harsh in the extreme." But he also said he could find no evidence in record warranting any other conclusion.

Stations invloved are WIFE-AM-FM Indianapolis, KOIL-AM-FM Omaha and KISN (AM) Vancouver, Washington. In denying renewal of Indianapolis stations, commission granted competing application of Indianapolis Inc. for authorization.

Commission set Burden renewal applications for hearing on 30 issues. And in reaching its conclusion last week, it overruled Administrative Law Judge Chester F. Naumowicz, who granted all applications except that of WIFE (AM); he granted IBI's application for AM on WIFE's frequency. (Commissioner Lee would have supported judge's opinion.)

Commission, in overruling Judge Naumowicz, said he had not given proper consideration to past misconduct of WIFE. Commission noted that, as result of one misdeed or another, WIFE-AM-FM had not received full three-year renewal since Mr. Burden acquired stations in 1963.

Commission rejected licensee contentions that Ron Mercer, general manager of WIFE from 1963 to 1965, was responsible for preferential treatment given Senator Hartke and had duped Mr. Burden. Nor did commission accept argument that Mr. Mercer gave senator free advertising without Mr. Burden's knowledge. And it said Mr. Burden was guilty of misrepresentations in denying knowledge of those improprieties.