Heinl radio business letter (July-Dec 1934)

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9/21/34 that character of Federal control which might impair, if not wreck, our freedom of operation. 11 The speaker predicted that any "class allocation by Congress1' such as proposed in the October 1st religious and educational hearings, "would, undermine our industry, and might lead eventually to nationalization of American broadcasting, after the fashion of continental systems. " Despite the fact that the membership of the National Association of Broadcasters had increased its membership 100 over 1933, bringing the total to 370, income from dues failed to meet operating expenses during the first nine months of the year. The deficit was about $5,000, Philip 0. Loucks, Managing Director, revealed and was made up from the reserve funds of the Association which now has a bank balance amounting to $4,000. The annual income derived from dues amounted to $35,139.81; operating expenses totaled $39,598.13, X X X X X X X X U.S. SUIT AGAINST COMPOSERS SPEAKS FOR ITSELF, SAYS SCHUETTE Everything which need be said is summed up in the Government antitrust suit against the American Society of Cornpowers, Oswald F. Schuette, copyright advisor, told the National Association of Baordcasters at Cincinnati. "Everything which has transpired since the last meeting of the Association is in that suit", Mr. Schuette went on. "The Government means to take away , if possible, the extortionate power of ASCAP. I shouldn't be surprised if, for the time being, the Composers will behave. I don't believe they will pursue their arbitrary methods while the suit is pending. " Referring to the interview with E. C. Mills of the Composers, which appeared in the Heinl News Service, Mr. Schuette said: "I am glad Mr. Mills said there is nothing to be gained by making faces and gnashing teeth at each other. He was un¬ fortunate in saying that the Composers were threatened with the suit as an alternate to making a rate for the broadcasting license fee. The rate had nothing to do with it. "Mr. Mills' statement that ASCAP is willing to cancel the contract of any dissatisfied station is as absurd as if a Milk Trust, in some city whose milk supply it controls, were to say that any householder who dislikes its prices can cancel his contract and go out in the country and buy his milk from the farmer, " 4