Broadcasting (Oct 1931-Dec 1932)

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Danger Signals Ahead of the Broadcasters By HENRY ADAMS BELLOWS Vice-President, Columbia Broadcasting System Wave Grabbing, State Legislation, Legal Tyranny, Dubious Commercial Practices Seen Menaces to Radio's Advance WHAT dangers lie in the immediate path of American broadcasting, and how serious are they? We'll leave out such general industrial dangers as the economic depression — nobody can tell what may happen in these dubious times. Radio broadcasting seems as nearly immune from the immediate effects of depression as any industry can be, because the very conditions which have adversely affected the older advertising media have tended to turn business toward the broadcasting stations. The past few years have given so impressive a demonstration of what broadcasting can do for its / advertising clients that the industry's immediate business future seems relatively stable. It goes into the autumn with more contracts on the books than ever before at this time of year. On the whole, its clients are well satisfied, and from the standpoint of gross income the industry seems able to face the prospects of another long and cold winter without alarm. "Danger No. 1 lurks in Washington, in the form of Congressional encroachment on the functions of the Federal Radio Commission. This danger ranks first, not only in seriousness but in imminence. As soon as Congress meets in December, attempts will be made to force the enactment of legislation depriving the Radio Commission of some part of its power to make allocations. The question at issue is not whether a particular group, a branch of the government or a special interest is entitled to broadcasting facilities. That is essentially a minor matter. The real question is whether Congress shall take back part or all of the authority which it conferred on the Radio Commission by the Radio Act of 1927. POLITICS MEANS CHAOS ONCE let Congress undertake the allocation of broadcasting facilities by special legislation regarding even a single frequency, and chaos is in sight. The Radio Commission may or may not have done a good job, but at any rate it has worked in an orderly fashion and according to definite, if not necessarily sound, engineering principles. Congress knows nothing about Henry Adams Bellows radio engineering, and cares less. No orderly scheme of radio development is conceivable if radio facilities are to be parceled out as political prizes by special legislation. The entire broadcasting structure of America will be shaken, and may very possibly collapse, if Congress, by enacting any measure regarding the specific allocation of broadcasting facilities, undoes its own handiwork of nearly five years ago. This is Danger No. 1. How acute it is can be realized by any one who remembers that on February 17, 1931, the bill carrying the Glenn Amendment, allocating one clear channel each to "labor, agriculture and education," passed the Senate without a dissenting /ote. The first session of the 72d Congress will see the introduction of anywhere from 20 to 50 bills, the ultimate effect of all of which will be to put Congress into the business of making radio allocations. Danger No. 2 lies in the probability of ill-advised and mis-directed action by state legislatures. We have already seen instances of this, most of them luckily abortive. It is exceedingly hard to keep track of the legislative activities of 48 states, and in many of them the local politicians are itching to get some measure of control over AS ONE of the original members of the Federal Radio Commission, and subsequently as chairman of the legislative committee of the National Association of Broadcasters, Mr. Bellows was the logical person of whom to ask this question: 4 'What do you regard as the chief dangers ahead for broadcasting?" Here is his answer. broadcasting. In most cases the sponsors of state legislation affecting radio have not the slightest conception of the character and effect of their own bills. While it is true that most legislation of this type could probably be defeated in the courts, the battle would be a long and costly one. It is a danger regarding which the traditional ounce of prevention is invaluable. COSTLY LITIGATION DANGER No. 3 has become so solidly established that there seems to be not much to do about it. It is the result of the virtual abdication of the Federal Radio Commission in favor of the Court of Appeals. The Radio Act, in establishing the right of appeal, certainly did not intend that the licensing authority should hand over its power of decision in all important cases to the courts, but this is approximately what has happened. A hearing before the Commission is now generally regarded simply as a preliminary to an appeal, provided the applicant can pay the cost. There is no telling what the total burden of legal expenses laid on the broadcasting industry by the Commission is going to be during the next year or two, but unquestionably it will at least equal the total amount spent in the improvement of transmitting equipment. A good Washington lawyer has become more important to every broadcasting station than a good chief engineer. This is lamentable, and probably it could have been avoided, but already the situation has solidified to a point where no immediate remedy is apparent. Danger No. 4 has no relation tp legislation, and lies wholly within the industry. The past year or two have seen some improvement in the commercial practices of broadcast-* ing stations, but in many cases thev are still pretty bad. Rate cutting is not uncommon, and shrewd buyers of radio time regard the structure of published rates and discounts as providing simply a bask for horse-trading. The chains and the leading stations are doing their utmost to set a good example, but the faith of advertisers in the value of radio time is constantly being shaken by unscrupulous efforts to get business at the price of almost any concession. The broadcasters urgently need to clean their own house in this matter of business practices. Rates and discounts, as published, must be adhered to, special concessions must be eliminated, and every broadcaster must recognize his responsibility in maintaining the general business standards of the industry by which he makes his living. Danger No. 5 is first cousin to Danger No. 4. It is the readiness of many stations to accept advertising which, for one reason or another, destroys public confidence or lessens public interest. The broadcaster, operating solely by virtue of a license from the people, has a public obligation far greater than that which applies to a newspaper. If he does not live up to this obligation, and purge his schedule of all commercial programs or announcements which are offensive to reasonable people, he is going to find that the paternal hand of the government will be applied to him, and it will not be a kindly pat on the head, either. COPYRIGHTS AND QUOTA THERE are plenty of other goblins lurking in dark corners, but they do not at present seem likely to assume the proportions of major perils. Last winter the broadcasters were narrowly saved from a catastrophe as the result of certain features of the Vestal copyright bill, and this danger is bound to re-appear in the 72d Congress. (Continued on page 28) October 15, 1931 • BROADCASTING Page 9