Broadcasting (Oct 1931-Dec 1932)

Telegraph Lines to Serve Radio Nets Wire Development May Provide New Broadcast Service At Rates Cheaper Than Those of A. T. & T. THAT EXPANDING broadcasting services need not be wholly dependent upon the American Telephone & Telegraph Co. and its local subsidiaries for all regional network hookups and remote control lines, has been made manifest by the entrance or proposed entrance of Postal Telegraph and Western Union into the radio wire line field with rates substantially below those of the A. T. & T. While full details of the scope of the services and rate schedules are still lacking, it is known that Postal is already providing at least one broadcasting service in the southwest, and that Western Union, through possible use of a new patent said to render telegraph wires suitable for telephone use, has discussed leasing some of its lines in connection with new network and remote control projects. This new feature of the wire line situation does not presage a "war" between the telegraph companies and the telephone company for radio business. It is rather a result of the effort of broadcasting interests to find new lines of connection in order to cut the high cost of telephone circuits. No plans whatever are under foot for turning over national network line hookups to the telegraph companies; indeed, unless revolutionary new patent devices actually prove that telegraph wires can all be used effectively for telephone service, such a project would be out of the question. Postal Has Phone Lines IT HAPPENS that Postal must maintain telephone services in certain states under its franchises, and in certain parts of the country has actually installed circuits capable of handling telephone service. This is true in California and along the Pacific Coast, between Kansas City, Minneapolis and Duluth, between points in North Carolina and Alabama and between points in Arkansas and Texas. These wires can also be leased by broadcasters upon request, but Postal officials make it clear that they are not the same type of lines furnished by telephone companies, which furnish standbys and terminal equipment and which engineer radio wires specially in order to provide full tone quality. Postal leases these wires at the regular telephone rate, which is generally about 40 to 60 per cent of the rate charged by the telephone companies for special radio lines. Though the telegraph people disclaim any purpose of entering into active competition with the A. T. & T. and its local subsidiaries for radio business, the facts that some wires are already being used for broadcast hookups, that new technical devices may make more available, and that the broadcasters are looking to this field for relief from part of the heavy wire charges, promise at least to inject a certain amount of competition into the wire line field for the first time. A. T. & T. Dominates Field PRACTICALLY since the beginning of network broadcasting with the advent of NBC in 1926, A. T. & T. has had a virtual monopoly of this service. Its local subsidiaries have also succeeded to the bulk of the remote control station traffic. While no detailed figures are available either at the Interstate Commerce Commission, with which all wire utilities must file their tariffs, or from A. T. & T., from which they have been requested, it has been estimated by the National Association of Broadcasters that from $8,000,000 to $10,000,000 annually is paid into the A. T. & T. and its numerous subsidiaries by the broadcasting industry. Special types of wires, technically called transposed circuits, are necessary to carry the voice frequencies required in radio for quality transmission. A. T. & T. has had these circuits available because its telephone lines practically encompass the country. Telegraph circuits used by the telegraph companies, however, do not require the same frequency response necessary for voice, and it is understood that at present only isolated portions of the circuits of Postal and Western Union are adaptable for broadcasting, although practically all new lines and those being overhauled are being transposed rather than laid in parallel, to make them responsive to voice and musical frequencies. Moreover, it is reported reliably that patent rights have been procured by certain interests for an instrument which can be installed at ordinary telegraph circuit terminals to convert the circuit into a transposed line, making it responsive to frequencies covering the range from 50 to 10,000 cycles, or comparable with the regular telephone lines. A transposed line is one in which the wires are twisted, whereas the ordinary telegraph lines not adapted to voice frequencies are laid in parallel. May Mean New Sysetm SHOULD this conversion device prove effective, it might eventually throw open practically all of the Postal and Western Union circuits to broadcasting, and mean thousands of dollars in savings to the broadcasting industry, according to competent engineers. It would render unnecessary the stupendous task of remodeling circuits by the telegraph companies to enable them to provide nation-wide service to broadcasting, should that course ultimately be decided upon. Postal, according to information reaching Broadcasting, already is leasing lines to the Southwest Broadcasting Co., with headquarters at Fort Worth, Tex., linking eight stations in that area, at rates declared to be far below those of A. T. & T. In the southwest, Postal uses transposed circuits, since the lines originally were installed with the thought of tying in a long-distance public telephone system with its telegraph system. The lease arrangement covers the cost of repeater stations, where necessary, but does not include terminal equipment at the stations. A. T. & T. on the other hand, makes its leases cover the entire service, following the example of public telephone service. New York State Net IN CONNECTION with the projected formation of the Empire Broadcasting System, designed to group eight stations in New York state, it is understood that Postal has offered wire line facilities at very considerably below the rate asked by A. T. & T. This proposed state-wide network is being sponsored by Scott Howe Bowen, owner of the transcription and station representation organization bearing his name. Mr. Bowen also is owner of WIBX, Utica, which is contemplated as a link in this network. Other stations mentioned in the project are WO'R, Newark; WMCA, New York; WGR, Buffalo; WHEC and WHAM, Rochester; WSYR, Syracuse; WORD, Albany, and WESG, Elmira. This network also could be tied into the Yankee network, covering New England, which maintains a studio in New York, with Mr. Bowen as its national representative. Relations of stations and networks with A. T. & T. have not been altogether tranquil. Allegations have been made from time to time that A. T. & T. rates are exorbitant, and that the rate structure is not uniform throughout the country. At the NAB convention held in St. Louis last month, a resolution offered by Stanley Hubbard, KSTP, St. Paul, proposing an investigation of the telephone line issue, was adopted. It now lies before the NAB board of directors. Philip G. Loucks, NAB managing director, described the telephone issue, in an address before the convention, as one in which the broadcasting industry is compelled to buy services in a non-competitive market in which there is no protection against exorbitant rates, and where stations must buy at the price fixed "or close up our business." Inquiry Through I. C. C. A NEW ANGLE in the telephone line situation seems to be opening with the disclosure that Horace L. Lohnes, Washington radio attorney, has instituted an investigation in behalf of his station clients to ascertain whether the Interstate Commerce Commission has jurisdiction over A. T. & T. operations to the extent that it may inquire into and fix its rate structure. Mr. Lohnes is a member of the firm of Dow, Crane and Lohnes. Fayette P. Dow, senior partner, is a former legal official of the I. C. C, and Willis Crane is recognized as one of the country's leading I. C. C. practitioners. New Chandu Sponsor IMMEDIATELY upon the expiration of its contract with Los Angeles Soap Co., Dec. 10, EarnshawYoung, Inc., Los Angeles, signed the Rio Grande Oil Co. as new sponsor of the "Chandu the Magician" series in the west. Starting Dec. 13, the program continued as a five night weekly transcription on various western stations, the radio campaign for the new sponsor being tied up with newspaper and billboard advertising. Power Increases SUSTAINING Examiner Hyde, the Radio Commission Dec. 9 approved daylight power increases for WGAR and WHK, Cleveland. WGAR was authorized to use 1 kw. daytime and 500 w. night. WHK was authorized to use 2% kw. daytime on condition that the grant may be withdrawn should objectionable interference occur. It uses 1 kw. at night. MRS. FRANKLIN D. ROOSEVELT— The wife of the President-elect is shown before microphone as she is appearing over an NBC-WEAF network Friday nights for 12 weeks, beginning Dec. 9, in the program sponsored by Pond's Extract Co., New York, (cold cream) handled by J. Walter Thompson Co. She is paid for her appearances, but is devoting the proceeds to charity, half going to the New York State unemployment fund and half to her own charities. Page 10 BROADCASTING • December 15, 1932