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Francisco; (16) Donald W. Thornburgh, KNX, Los Angeles; (17) C. W. Myers, KGW, Portland, Ore.
Directors at Large: Harold V. Hough (WBAP) and Lambdin Kay (WSB), clear channel members; Frank M. Russell (WRC) and Elliott Roosevelt of Hearst Radio, the medium stations; John Elmer and Edward A. Allen, small stations.
The NAB as a trade association for the broadcasting industry was organized in 1923.
On October 31, 1927, a year after the birth of the first major network, certificate of incorporation was filed in the state of Delaware, the original incorporators being M. K. Gilliam, M. J. Woods and Paul W. Morency. Objects, as then stated under Article 2 and still holding good, read as follows:
'The object of this Association shall be to foster and promote the development of the art of radio broadcasting; to protect its members in every lawful and proper manner from injustices and unjust exactions ; to foster, encourage and promote laws, rules, regulations, customs and practices which will be for the best interest of the public and broadcasting industry."
At both the fourteenth and fifteenth annual conventions, held in Chicago in 1936 and 1937 respectively, proposals were considered for the reorganization of the NAB, and these indicated a growing dissatisfaction with the form of organization which had existed with but few changes since its inception in 1923.
During the summer and fall of 1937 it became apparent that rad
ical changes and adjustments would have to be made if the organization was to fulfill the objective for which it was created. Upon request of a representative group of the membership, the Board of Directors called a special meeting, which was held in New York on October 12th and 13th. Action was taken which made it mandatory for the NAB to be reorganized. For this purpose a committee was created by unanimous vote upon a resolution. Committee on Reorganization consisted of E. A. Allen, Edwin W. Craig, E. B. Craney, Walter J. Damm and John Shepard III, with Mark Ethridge as Advisory Member. Subsequently, Phillip G. Loucks was chosen as counsel to the committee and is still serving in this capacity.
Committee went into action and outlined its plan. More than 100 trade associations were contacted for information on their setups, and ideas were invited from the NAB membership. Result, after taking into consideration the criticisms and earlier proposals, was a departmentalization plan, with the office of Managing Director being abolished. This was the only large salaried job in the NAB. In the vacated position was proposed a paid president who was to devote full time and be actual chief executive, not necessarily to be chosen from the ranks of the NAB members. Salaried secretarytreasurer, other newly created departments and provisions for salaried heads was also part of the new plan. Provisions were made for increases in dues to care for the additional overhead.
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