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DTCtEST of report of fro (Continued)
The letter of transmittal to the Senate says that "Comr.iissioners Saltzman and Lafount do not aaroe with the statement contained in the views expressed in the answer to Question 4," They believe the present law aives the Commission the necessary authority and no lee-islation is needed.
5. THdT RTTLE3 OR REGULATIONS H^VS BEEN ADOPTED BY OTHER COUNTRIES TO CON¬ TROL 6^^ TO ELIMINATE T"E USE OF RADIO FACILITIES FOR COMISRCLAL ADVERTISING PUR¬ POSES?
"Broadcasting systems in foreign countries that are supported entirely by revenue derived by a tax or license fee for receiver-set ownership or by v;overnment subsidy do not, as a, rule, accept conimerci"! advertising;, whereas stations owned and operated by private interests are supported mainly from advertisements a.nd sub¬ sidies paid voluntarily by the listening public.
"A few of the foreign governments have rules and reruilations to insure high quality proar-'^ms by simply restricting advertising ma.tter to short announce¬ ments or accordin=-; to the amount of time consumed — generally from 10 to 40 min¬ utes daily.
"In other countries, there is no censorship on advertising but they have rules an:^ reuilations to prevent the broadcastin" of ob jection'^ble statements, prejudicial to the government,
"Ten of the thirteen forei-n countries th?,t were investigated permit commerci^’l advertising and with one exception have laws, nales or retaliations govern¬ in' advertising."
6. TOTHER IT ''’OTTiD BE PRACTICABLE AND SATISFACTORY TO PERMIT ONLY THE ANNOUNCSI-miT OF SPONSORSHIP OF PROGRUiS BY PERSONS OR CORPORATIONS.
"It would not appear to be practicable and satisfactory at the present time, and in the ordinary case, to permit only the announcement of sponsorship of programs by persons or corporations.
"The American system of broadcastin. ’ is predicated upon the use of radio facilities as a medium for local an"! n».tion='l advertising. IJoon this use de¬ pends the quantity and qu-ality of commercial and sustaining progr^^ms. T>ie compet¬ ition bet'veen advertisers insures the employment of the best talent available and a variety in hind of commercial programs. The commercial programs furnish the principal source of revenue to stations. The quality and character of sustainin-'^ prour^ms are dependent upon the revenue received from the sede of time for comrnerci''^l advertising purposes.
".A r-adio broadcast station can present sustaining programs that a.re of reat ed’acational value and rich in entertainment only in a degree measures by the revenue derived from the sale of time for purposes of commercial advertising.
"Information made available to the Commission shows that sponsorship of programs by n^-me would amount, in ordinary cases, only to good-will a,dvertising.
A fe’.' products and their uses may be so well and generally known as to permit this. On the other hand, and as tothe majority of products, such advertising ’.Tould involve an expense which national advertisers are not now willing and in a position to bear.