LATINOS MOVE TO BLOCK TRANSFER OF TV STATIONS

The controversy surrounding the sale of the nation’s largest chain of Spanish-language television stations, including KMEX-TV in Los Angeles, sharpened Friday when six Latino organizations moved to block the transfer of the stations to non-Latino owners.

In protests filed with the Federal Communications Commission, the California League of United Latin American Citizens and other groups argued that the $301.5-million sale of the 10 Spanish International Communications Corp. stations to Hallmark Cards Corp. and First Capital Corp. of Chicago poses a serious threat to the future of Spanish-language TV programming.

“A diversity of programming can only be accomplished through a diversity of ownership,” said Armando Duron, president of the California Mexican-American Bar Assn., at a Los Angeles press conference.

Duron argued that only Latino ownership can assure Spanish-language programming and provide a sorely need opportunity for Latinos to establish a toehold in an industry where they are greatly underrepresented. The stations serve an estimated 10 million viewers, Duron said.

Hallmark officials have repeatedly affirmed the company’s long-term commitment to provide quality Spanish-language programming beyond the two-year minimum required by the FCC as part of the sale agreement.

As many as four other Latino groups are expected to file similar protests with FCC by a Monday deadline. Groups expected to file include the Miami-based Spanish-American League Against Discrimination and two companies that made unsuccessful bids for the stations.

New York-based Spanish International agreed in July to sell the stations to the Hallmark group after an FCC administrative law judge in January refused to renew the stations’ licenses. The judge ruled that the stations were illegally controlled by Mexican interests.

Besides KMEX, the other major stations in the deal are WXTV-TV in New York, WLTV-TV in Miami, KWEX in San Antonio, Tex., and KFTV-TV in Fresno.

In court papers filed on this week in a related federal civil action in Los Angeles, Hallmark challenged the assertion by groups opposing the sale that only Latinos could ensure Spanish-language programming at the stations.

“Hallmark’s pledges are based on both contractual commitments and sound economic considerations--not a desire to placate the FCC,” the firm’s attorneys argued. Hallmark claims that it would have little economic incentive to change the profitable stations’ formats from Spanish to English.

But the loose-knit coalition’s argument is not only with Hallmark’s acquisition. Duron and others believe that the FCC failed to fully implement its ruling to withhold Spanish International’s operating licenses.

Said Duron: “I cannot understand how (Spanish International) can be allowed to profit at the full market value.” He said the company owes a debt to the public trust because it allowed itself to be controlled by Televisa, the Mexican media conglomerate.

Recent changes in the federal policy designed to increase minority ownership of television outlets, Duron conceded, may move the FCC to deny his coalition the legal standing to intervene and challenge the licensing and transfer of the stations.

“Ultimately we will prevail,” the Los Angeles attorney said.

Already, he said, resolutions requesting the FCC to select a Latino owner for the stations have been passed by the Los Angeles City Council, the County Board of Supervisors and the California Legislature.