Broadcasting (July - Dec 1936)

j± .E >» " « £ O _^ (j Q I -rj "} "O E S 2 <<j H <0 0* -O <D a 3 o 6 ~D age o area. to > CO to 0 V) i 0> V w h c >. 3 to _D S 1 O 1— on Crosley Reports Superpower Success (Continued from page lk) ter into the determination of these questions. "I am, however, able to give certain facts showing the relative cost of installation and operation of a 500 kw. and a 50 kw. plant based upon our experience, and since 50 kw. equipment is now standard, and a sufficient number of such units have been installed and in operation over a period of years, it should not be difficult to apply these ratios to any given case. "In determining total operating costs, it is necessary to provide for a depreciation or amortization of the original cost of equipment for a period which approximates the life of the equipment. In the following comparison of figures we have used a depreciation of 10% based on 10 year life for both the 50 kw. equipment and its comparative 500 kw. equipment. Breaking down the purely technical items, we find that it costs us 371% more for electrical power; our water bill is 80% higher, tubes cost us 33% more in operating the 500 kw. transmitter over a 50 kw. unit. These figures do not take into account added program expenses, extensive building or construction, or additions to the administrative or executive staff which may be regarded desirable or even necessary. In our own case we did add 140% to administration and salaries; 9% to fixed charges and rent; 75% to program costs, and depreciation of 10%, so that in going from 50 kw. to 500 kw. our No. 1 Of A Series On The Neiv York Market! YORKVILLE — less than one square mile in area this section has a population larger than the city of Duluth, Minn. YORKVILLE is the most picturesque of New York City's German colony. In it are concentrated 101,690 people with an average family expenditure of $2,461 per year. But that doesn't tell half the story of New York City's Teutonic population! SIMILAR communities exist throughout the metropolitan area comprising a total of 884,062 German speaking people, larger than the population of Leipsig, Germany. Of clannish temperament they listen to programs in their native language daily on WBNX! WBNX covers this market with 41 German language programs per week. Full Staff For Foreign Language Productions Available. WBNX Programs Are Based On Population Characteristics. 1000 WATTS DAY AND NIGHT A NEW APPROACH TO THE NEW YORK MARKET operating cost has increased 68%. As against this total operating increase of 68%, we increased our advertising card rate 20%, but have been able with the greater demand for our station to operate at a profit. Effect Upon Regionals "IT IS EVEN more difficult to estimate the economic effects of 500 kw. operation upon stations of other classes located within the service area of the 500 kw. station. We have had no experience on this point and no opportunity to observe, other than that afforded by our ownership and operation of WSAI, which is a regional station also located in Cincinnati. In that case the operation of the 500 kw. transmitter at WLW has had no adverse effect upon the network or other business of WSAI. As a matter of fact, the business of the regional station has increased steadily through this period." Cross-examined by Comdr. Craven, Mr. Crosley said he believed WLW's percentage of profit with 500 kw. operation is as great as it was before it increased the power. He pointed out this would indicate that the station is making more dollars. Responding to additional questions, he said he would supply definite information on this but that since WLW was operated as an integral part of the Crosley Radio Corp., separate figures were not broken down to show revenue from the station and operating overhead for the respective divisions. Asked what the investment in WLW was, Mr. Crosley estimated that it amounted to about a half million dollars over and above the 50,000 watt cost. He said this included a new building, vertical radiator and other equipment. Comdr. Craven asked Mr. Crosley whether in his opinion the operation of thirty 500,000-watt stations would have any effect upon present business methods of the industry, and Mr. Crosley responded that he was not in position to answer since he had never studied the question. Practically all of the members of the FCC asked several ques K H B C HILO, HAWAII KGMB HONOLULU , HAWAII FRED J. HART. Prtiid.nl and G.ncril Mwhi SAN FRANCISCO OFFICE, CALIFORNIAN HOTEL fl.pnKnloum : CONOUEST ALLIANCE COMPANY I rOKK. 515 MAWSON AVE. CHICAGO. 100 N. USALLE St tions of Mr. Crosley on the ea] nomic side, and Telegraph Commis) sioner George H. Payne launche' what was intended to be an attac,' upon WLW and its president on ill program policies and methods. Favors Smaller Stations MR. PRALL inquired whether tH granting of any great number J superpower licenses would tend 1 destroy smaller stations, and M, Crosley said that he personal' was in favor of horizontal ii creases for small stations. He sa he had always made his own anal; ses on the basis of one static operation but that he did not fe that any damage would be doi smaller outlets. Smaller station he said, apparently are prosperir and there is a big demand fi newT ones. Asked by Mr. Pra whether it was a case of "surviv of the fittest", Mr. Crosley said 1 had seen no such indication. Cor missioner Thad H. Brown inquin whether the licensing of addition superpower stations would wet away from smaller stations the audiences, and Mr. Crosley respon ed that his observations were th listeners preferred to "select ; their programs. With addition, stations, he said, listeners woui get a greater degree of selecti< but he did not feel that any su-j stantial audience would be drav-l away from local stations. On the question of station ratealso raised by Commission* Brown, Mr. Crosley said that felt it was "so much guesswork When WLW went to 500 kw., said, the station arbitrarily ij creased its rates 207c, feeling th, this was justified since it woui give its advertisers three or fo7 times the coverage formerly forded. There were no unfavorabl reactions, he said. Mr. Crosle under questioning by other coi missioners. declared that he ft the Commission should decide f itself whether other stations shot be permitted to go to 500 kw. a: that he did not feel competent make any recommendation. ] said there are many advantages high power but that the Commissi must analyze and judee each p£; ticular application. The Comm. sion, he said, should take into i count the ability of the licensee buy and pay for the installatic\ its ability to serve public intere f and whether its geographical loc i tion is such as to permit it to re ] der good service with the increasJ power. "It would be impossilj for me to be for or against 30 sub stations," he said. Payne Hits at Policies RESPONDING to Commissiorjj Norman S. Case's question as U whether 500 kw. should be tn greatest power permitted at tB time, Mr. Crosley said he saw I reason to limit the art by any J striction on power. It was at tlj point that Commissioner Pajf] obviously in a militant mood, \\ tacked Mr. Crosley and his methcH of operation. The commissioneJI WTC N ST. PAUL AND MINNEAPOLIS FREE & SLEININGER, Inc. National Representatives Page 72 • October 15, 1936 BROADCASTING • Broadcast Advertisix