Broadcasting (Jan-June 1933)

I WIBO Aide Charges WJKS With Fraud In Asking Commission to Reopen Case Petition Says Indiana Station Plans to Serve Chicago ; WIBO and WPCC Ordered Silent From June 11 ALLEGING "fraud" on the Radio Commission, the reviewing courts and the listening public both in Indiana and Illinois by the owners of WJKS, Gary, Ind., Louis G. Caldwell, Washington attorney, on May 19 filed with the Commission a petition requesting reopening of the WIBO case in a new proceeding. The petition, coming as a surprise in view of the sweeping decision the Supreme Court rendered May 8, sustaining the Commission's original decision ordering deletion of WIBO and WPCC, Chicago, and assignment of their 560 kc. channel to WJKS, asked the Commission to preserve the status quo as to the stations involved until hearing and determination of the new issues raised. Revocation of the license of WJKS was sought, among other things. Court Mandate Asked MEANWHILE, Mrs. Mabel Walker Willebrandt, counsel for WJKS in the two-year-old litigation, on May 22 asked the Supreme Court to hasten its mandate ordering deletion of the two Chicago stations. No opposition was voiced. At its meeting May 26, the Commission ordered WIBO and WPCC to cease operation at 3 a.m., CST, June 11, and at the same time authorized WJKS to begin operation then on the 560 kc. channel. Action was taken on recommendation of George B. Porter, acting general counsel, after receipt of the mandate from the Court of Appeals of the District of Columbia, formally notifying the Commission of the Supreme Court's decision affirming the Commission's original ruling. Regarding the petition filed by Mr. Caldwell in behalf of WIBO, seeking to have the status quo maintained pending reopening of the case, the Commission held it could not consider the petition at this time, also sustaining Mr. Porter's recommendation. There is still the possibility, it was pointed out, that the Commission may act to reopen the case between June 7 and June 11, when the Chicago stations are instructed to go off the air. What the nature of this action may be, however, was not indicated. In his petition, which bore also the signature of Earle S. Nelson, president of the State Investment Co. (formerly Nelson Bros. Bond & Morgage Co.), licensee of WIBO, Mr. Caldwell states that the WIBO investment exceeds $400,000. "Unless a way can be found to continue the operation of WIBO, the investment and valuable good will will be lost, the listening public will be deprived of said service, the employees will be thrown out of employment and the benefit of the contracts and other arrangements will be lost, all to the irreparable injury of petitioner and the other persons afl'ected," it is stated. Despite the testimony of Ralph Atlass, named as principal owner of WJKS, that the purpose of the application for the WIBO and WPCC assignment was to provide better service for the Calumet area in Indiana, Mr. Caldwell declared that on or about April 18, WJKS filed with the Commission an application for authority to move its transmitter from Gary, Ind., to Hammond, Ind., which he said is virtually on the boundary line between Indiana and Illinois. It is approximately 13 or 14 miles closer to the central business district of Chicago than is the present transmitter location of WJKS and is about three miles closer to this district than the present transmitter location of WIBO, Mr. Caldwell asserts. Bad Site for Indiana "IN SUCH a location", said the petition, "it will serve approximately twice as large an area in Illinois (including all of Chicago) as it will in Indiana,, and many times as many persons in Illinois as in Indiana. It will give better average coverage over the Chicago area than is now afforded by WIBO at its present location. * * * For the purpose of providing broadcast reception to Indiana, it is practically the worst site in the entire state of Indiana." The petition brings out that the final decision in the court case was based on the Davis amendment, since Illinois is vastly overquota and Indiana is underquota. It states that WIBO is willing to move to Lake County, Ind., and actually become an Indiana station, holding that it has a "superior claim in equity and good conscience" over Johnson-Kennedy Radio Corp., WJKS licensee, in the use of 560 kc. in the Calumet district, either at Gary or such other place in Lake County best suited for that purpose. Mr. Atlass is called a "professional speculator in broadcasting stations and in wave-lengths" in the petition. It is alleged that in addition to his interest in WJKS, he recently purchased a "controlling interest" in WJJD, Chicago, a 20 kw. station, and is managing and directing that station from the same office as the Chicago office and Chicago studio of WJKS. It is contended that WJKS actually is operated as a commercial station for Chicago, rather than Gary, and that the station employs salesmen in Chicago soliciting advertising from Chicago advertisers. In conclusion, the petition requests that the application of WJKS to remove to Hammond be designated for hearing and that it be heard and decided contemporaneously with the other matters raised; that the WJKS existing license to operate at Gary on 1370 kc. be revoked in view of the charges made; that the Commission reconsider and set aside its previous decision ordering deletion of WIBO and WPCC "because of the fraud perpetrated by JohnsonKennedy Radio Corp. and because of the newly discovered evidence and considerations hereby brought to the attention of the Commis The King Obliges RESPONDING to a request of CBS, King George has agreed to postpone his opening address at the World Economic Conference until 3 p.m., EDST, on June 12 so that American listeners would not have to tune in the broadcast at 6 a.m., as originally scheduled. As a consequence of the change in time, the opening of the conference has been delayed until 8 p.m., London time. sion", and that pending hearing and determination of these matters, the status quo be maintained by temporarily extending the licenses of WIBO, WPCC and WJKS. In her answer, filed May 26, Mrs. Willebrandt contended that the Commission, under the law, had no course left open to it other than to delete WIBO and WPCC. "The principal allegation of socalled 'fraud' ", the answer stated, "consists of nothing more than inferences from the fact that WJKS filed an application to move its transmitter from Gary to Hammond, Ind. The Commission has taken no action on that application. It is purely an ex parte matter. WJKS alleges that the move will enable it better to serve the entire Indiana population of the Calumet area, because of bad soil conditions, high-power transmission lines and sand dunes in the other sections. "When did it become fraud for an applicant openly to make such a request of the Commission?" In conclusion, Mrs. Willebrandt held that since WIBO did not, as it might have done "upon its discovery of the alleged new evidence", obtain leave from the Supreme Court to secure a review of the judgment, "it is now foreclosed from making such a request of this Commission." Pointo'-Purchase Plan Organized in Detroit AN ORGANIZATION known as the Point-O'-Purchase Broadcasting System, Inc., which controls a patented synchronous radio receiving set, whose operation is governed from the broadcasting station, has recently been formed in Detroit. The Point 0' Purchase plan is said to include the installation of these receiving sets in retail outlets, especially those of chain organizations, on a nation-wide scale. This development, according to the sponsors of the plan, will enable national advertisers to deliver timely sales messages to the buying public at the actual point of purchase in addition to reaching the home audience. Officers of the Point-O'-Purchase Broadcasting System are: chairman of the board and treasurer, George B. Storer; president, Joseph H. Neebe; vice president, Thomas R. Walton; secretary, Edward E. Rothman. Messrs. Storer and Neebe are also officials of CKLW, Windsor London, 0 n t . Headquarters have been established in the Union Guardian Building, Detroit. Checking Coverage {Continued from page 15) the results of certain types of personal interview surveys. For example, in determining magazine reading habits, it is often found that the Atlantic Monthly, and such higher class publications are among the leaders in popularity and preference. In the same way, if people are asked directly what radio programs they prefer, the New York Philharmonic and other symphony orchestras rate unusually high. Some people consider it a reflection on their literary and musical tastes if they name the magazines which they actually read and the radio programs which they actually enjoy when confronted by a well-dressed personal interviewer. Double Checking THERE IS often a tendency to exaggerate in favor of the "higherpriced" or better known product. In studying the habits of consumers it is desirable to determine what they actually do rather than what they may indicate as a preference. It is sometimes possible to obtain more accurate and unbiased information by using the mail questionnaire than the personal interview. For certain types of investigations involving a lengthy questionnaire the personal interview with well-trained investigators is not only desirable but necessary. We have of course, as I have already indicated, made use of the personal interview method to check up on the accuracy of mail questionnaire returns. Perhaps the most important advantage of the mail questionnaire method is that one may secure information from widely scattered points at less expense than by personal interview because traveling costs and the salaries of personal interviewers are eliminated. When information must be secured from a large number of distant locations, the mail method requires less time than personal interviews. Speedy Returns FOR EXAMPLE, a recent mailing to chambers of commerce in every county in the United States brought a return of 75 per cent within the space of a few weeks. The questionnaire used in this mailing sought impartial information concerning the quality of station reception in each locality. The tabulated results, as well as the original signed reports, were added to our coverage data files. In determining the listening habits of physicians and surgeons we obtained a 30 per cent return to a mail questionnaire. Information concerning the appeal of specific programs as well as data on the daily use of radio sets were obtained from the mail returns. The entire survey was completed within a week and the findings were very helpful to us. WKBF, Indianapolis, has been authorized by the Radio Commission to use the time of WBAA, of Purdue University, with which it shares a wave length, during the summer vacation of the university from May 29 to Oct. 6. June 1, 1933 • BROADCASTING Page 17 J