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NATIONAL ASSOCIATION OF BROADCASTERS
NATIONAL PRESS BUILDING WASHINGTON, D. C.
May 31, 1932.
TO ALL BROADCASTERS:
To oLtain a fair settlement of the present controversy with the American Society of Composers, Authors and Publishers, and to effect a permanent and workable solution of this continually harassing factor in our public service, the a'ational Association of Broadcasters, acting not only for members but in the interest of non-members as well, has undertaken the most far-reaching pro¬ gram of negotiation and defense ever attempted by the industry.
As you know, the Society on April 11, 1932, served notice that license fees would be Increased, effective Jmie 1, 1932. The increase demanded, de¬ spite the business depression, would raise the amount collected from the broad¬ casters from approximately f 966, 000 a year to about ^3,500,000 annually by the revolutionary proposal that broadcasters pay the Society not only sustain¬ ing fees substantially the same as at present, but also pay 5 per cent on the gross amount charged for advertising programs.
A special meeting of the NAB Board and Copyright Committee was held in llew York April 18 and 19, when the Society's demand was discussed at length and a decision reached to ask the Society for a postponement of the effective date of the proposed increase until September 1, 1932, to give opportunity for mature study 8,nd negotiation. A Negotiating Committee, appointed by President Shaw, succeeded the same day in arranging for the desired postponement.
The Board then instructed the Negotiating Committee to continue its negoti¬ ations. Meantime, the Negotiating Committee has held several conferences with Mr. E. C. Mills, general manager of the Society, and his committee.
The Board also directed the appointment of a Plenary Committee to take effective steps to defend the industry and to enable it to carry on its service to the public in the event a satisfactory solution could not be reached.
The Plenary Committee, feeling that the interests of all broadcasters, both small and large, wou.ld be best protected if the service of one outstanding man could be devoted to its problems, employed Mr. Oswald P. Schuetts, whose reputation in the radio industry is widely knov.mi. Mr. Schuette's work on copy¬ right is in no wise to interfere with his other e,ctivity, Including the wellkaown radio suit filed by the Department of Justice and awaiting trial in the Delaware court in October, and he is to work in the interest of all broadcast¬ ers, large, small, network and non-network. Judging from the response of broad¬ casters throughout the country, the employment of Mr. Schuette has added a new hope that this perplexing and heretofore perpetual source of concern to all broadcasters may be at last effectively and fairly settled.
The first task of Mr. Schuette has been to secure legislative protection for the broadcasters. You have already heard from him by wire, a,sking for your immediate support of the Sirovich bill, but only if amended to give fair