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The KTBC operation was first named the Texas Broadcasting Corp., renamed the LBJ Co., then changed back to Texas Broadcasting after Johnson became President. It has expanded considerably, now includes real estate holdings and shares in other broadcasting companies. In 1954, when Lyndon was Senate minority leader, the Johnsons bought KANG, a foundering UHF (ultrahigh frequency) television station in Waco. The FCC had just given a VHF license to a proposed Waco TV outlet, KWTX. CBS, which had been negotiating with KWTX, quickly decided to award its contract to KANG instead. Shortly thereafter, so did ABC. Then, with FCC approval, the Johnsons increased the transmitting power of their Austin station and made a costly swath across KWTX's viewing and advertising market. KWTX pushed an unsuccessful federal antitrust action against the Johnsons, finally gave up and agreed to sell them 29.05% of its stock in a trade for KANG—including the major network franchises that KANG had sewed up.
"An Obvious Pressure." The FCC says that Johnson has never tried to intervene in the agency's radio-TV rulings—in Texas or anywhere else. Said one FCC man recently: "I've never once had anybody pressure me on behalf of Lyndon Johnson. The pressure there is an obvious one, though. It simply stems from the position occupied, particularly when you have a company named the LBJ Co." A longtime KTBC employee recalled a meeting of the station's department heads in Austin. Said he: "Both the Johnsons were there. Mrs. Johnson asked a few questions and made observations. After about 30 minutes, Johnson began talking. It was all business about the station. He's a powerful person. Whenever he came into the station, he set things buzzing. Frankly, he scared hell out of a lot of people." And of the Waco deal, a director of KWTX says: "There is no questioning the fact that Johnson was in on the negotiations for the merger. And he was the only one in on them."
Indirect Interest? Aside from the Johnsons' broadcasting empire, there is the matter of the Brazos-Tenth Street Co. Originated in 1955 as a real estate developer's device for holding an old building at Brazos and Tenth Streets in Austin, it is now a freewheeling, highly diversified outfit.
Land Baron A. W. Moursund, 45, longtime friend and now principal trustee of the President's financial interests,* says that no Johnson family member has a direct interest in the company. Yet an example of Brazos-Tenth's complicated intertwining with the Johnsons turned up in early 1962. On Feb. 1 the LBJ Co. sold some subdivided lots to Brazos-Tenth. The deed was signed by J. C. Kellam, president of the LBJ Co., and by Donald Thomas, the LBJ Co. secretary. Before the day was over, essentially the same real estate package was sold by Brazos-Tenth to Lyndon Johnson himself. Again Donald Thomas signed the deed—this time as president of Brazos-Tenth.