NAB reports (Jan-Dec 1940)

fully carry on their business except they deal with the plaintiff society because there is no place where nor person or agency to whom users of music in Nebraska may go in order to deal for public performance rights and negotiate for music in any substantial amount sufficient to meet the ordinary needs of music users in the state, except the society.” After discussing the property rights created in the copy¬ right owner by the Federal Copyright Act, the court said: “ * * * Of course, the Act gives him no right to combine with others to insure control of prices and the consequent power of monopoly of an entire field by combination. Plain¬ tiffs urge necessity as a justification or warrant for their organ¬ ization. It is urged that without some such means of pro¬ tection the individual copyright owner is helpless to protect his rights, but if the statute violates no rights guaranteed to the plaintiffs by the Constitution or laws of the United States, the motive for the organization or acts of ASCAP, however impelling, is not material.” The opinion recognizes that the state legislature has the constitutional power to prohibit monopolistic practices and combinations in restraint of trade but concluded that the unconstitutional attempt of the legislature to compel the sale of performing rights along with the sale of sheet music was such an essential part of the statute that the monopolistic sections of the statute could not be separated from the unconstitutional sections. Therefore a perma¬ nent injunction against the entire statute was granted. It is not known whether the State of Nebraska will appeal the decision. FREC RELEASES STUDY WMBD’S PROGRAM POLICIES The Federal Radio Education Committee this week released a study of the public service operating policies and experiences of Station WMBD, Peoria, Illinois. The study, printed in a thirty-eight page booklet form, was conducted by Dr. Leonard Power of the FREC staff in the past year, prior to the adoption of the NAB Code. WMBD is owned and operated by Edgar Bill, chair¬ man of the Nx^B Code Compliance Committee. The report is divided into two main sections: (1) sta¬ tion policies governing the selection and editing of pro¬ grams the purposes of which are to influence public opin¬ ion, the handling of religious broadcasts on a non-sectarian, non-commercial basis, the acceptance and editing of adver¬ tising matter, cooperation with civic and educational groups who serve in advisory capacities, and (2) public service policies wherein WMBD encourages expressions of public opinions on civic matters, undertakes to promote religious harmony of the area served and special assistance and programs for educational and civic purposes. In his conclusions. Dr. Power declared “There is no evidence of the use by the station of its position of power, as a monopoly station, to use force to secure or to prevent the use of station facilities. Neither is there any evidence of the misuse of that milder form of coercion called persuasion. “Refusal to grant the use of station facilities has been based on the application of fair play. .An examination of station standards and practices shows that the dominant consideration has been to harmonize radio in Peoria, Illi¬ nois, with democratic ideals and methods.” Copies of the study may be secured through the Federal Radio Education Committee, U. S. Office of Education; price per copy, 15 cents. The publication is one of a series to be issued by the FREC, which is supported in part by contributions from the radio industry, through NxAB, and in part by educational foundations. The FREC has also released another study, “Forums of the Air,” by Paul H. Sheats. This will be reviewed in next week’s Reports. SIMPLIFIED REPORT FORMS FOR BROADCAST STATIONS xA revised form of annual financial report required of standard broadcast stations and networks was adopted by the Federal Communications Commission Thursday. It is applicable to the 1939 income statement, with balance sheet, which is due March 1, 1940. The forms do not include schedules for program data, since it was requested by representatives of the broadcast industry that such schedules be distributed separately. The forms are substantially the same as those used for 1938, except that they have been simplified and reduced in the number of pages. In order to obtain greater uni¬ formity and clarity in the responses, detailed instructions have been prepared with respect to the various schedules and will be made available at the time the forms and instructions are distributed. FREE OFFERS As a goodwill gesture during the holiday season, the Bureau of Radio Advertising omitted all mention of time-chiselers in recent issues of NAB Reports. The time-chiseling still goes on, however, and now that the holidays are past, the undiminished flow of free offers reaching Headquarters reminds the Bureau that it’s time to blast away again. .As an excellent means of increasing station income, the Bureau suggests to all members that they make a New Year’s resolution to “chase the chiselers in 1940.” To do otherwise is to sell short your own station, and undermine the very thing that pays the bills. Free offers constitute one of the biggest obstacles to the Bureau of Radio Advertising and all stations in their efforts to de¬ velop new sources of broadcast revenue. Recent bulletins from the Bureau, revealing the true, behind-the-scenes activities of the time-chiselers, support the truth of that statement. Recently, several station men have been heard to remark that if all broadcasters cleared their air of free offers simultaneously, average station income would in¬ crease at least 1 5 % within six months. xA bold statement January 5, 1940 3936