Broadcasters’ news bulletin (Jan-June 1932)

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c NATIOITAL ASSOCIATION OF BROADCASTSRS National Press Building Washington, D. C. April 18, 1932 American Society of Composers, Authors & Publishers 1501 Broadway New York, N. Y. Gent 1 emen ; Attention of Mr. E. C. Mills A special meeting of our Board of Directors was held today to consider the radical changes demanded by you in your letter of April 11, which you propose shall govern our relations on and after June first next. In substance, you propose that in addition to the fees now paid to the American Society of Composers Authors & Publishers by broadcasting stations for the privilege of using copyright music controlled by this Society, the stations also be required to pay five percent of the gross amounts they receive for coraraercially sponsored programs, that all stations be under obligation to render monthly accountings and that their books be constantly subject to audit by your Society. It was the unanimous view of the Board that the proposals, if imposed on broadcasters, would have a ruinous effect upon the broadcasting industry, including the forcing of many stations to cease operation. In the first place, many stations are already suffering considerable hardship from having to pay the present fee. So far as can be determined your proposal means an increase in cost of from ZOOfo to 5COfo to the broadcasting industry, and even more in certain individual cases. The present business condition argues against any increase in fees and particularly since the broadcasting industry as a whole is not operating at a profit. In the second place, the basis for assessing fees, which you now propose, is, in our opinion, unsound and entirely unjusti¬ fied. Piirthermore, whatever basis be adopted, it is unjust that broadcasters should bo subjected to any pa^onont for programs in which no use is made of copyright music controlled by your Society. Such programs, for example, are dramatic skits, political speeches, lectures and programs containing music which is either in the public