Broadcasting (Oct 1931-Dec 1932)

Composers Forming New Rates Will Confer With Broadcasters A. S. Clarke, WBTM Director, Polling Stations As Rosenthal Promises 3-Year Licenses THE AMERICAN Society of Composers, Authors and Publishers is still seeking some sort of a formula whereby new rates can be charged broadcasting stations using copyrighted music controlled by the organization, according to " Gene Buck, president. Mr. Buck informed the New York correspondent of Broadcasting that as soon as the new yardstick is worked out a conference will be called with broadcasters. He said that the majority of the large stations are enjoying increased profits as indicated by reports that there was a 25 per cent increase in national radio advertising during the last year. Julius Rosenthal, general manager of the Society, who now is ill, recently notified broadcasting stations that the new rates would be effective in February. He contended that broadcasting had played havoc with the music publishing business and that sheet music sales had dropped 90 per cent during the last 12 months. It was indicated that the terms of the new licenses would probably be announced early in 1932. Loucks' Position IN A STATEMENT discussing the copyright situation, Philip G. Loucks, managing director of the National Association of Broadcasters, declared that, on the whole, the prosperity of the broadcasting industry has been "grossly misrepresented to the public." He said that it is the hope that a satisfactory solution to the copyright problem will be found, and he predicted that the solution can be found in the _ establishment of a fair and equitable method of arriving at charges, by fixing fees at rates which stations can afford to pay and by giving stability to the situation through the granting of long term licenses. Another angle of the copyright situation came to light early in December, when A. S. Clarke director of WBTM, Danville, Va., a 100-watter, circularized broadcasters with a questionnaire asking whether they favored the percentage, card rate or some other basis for fixing copyright fees. Mr Clarke is openly opposed to the NAB suggestion that fees be put on the basis of card rates (see Broadcasting, Dec. 1). Mr. Clarke enclosed with the questionnaire a copy of the letter he wrote to the editor of Broadcasting, a copy which he also sent to Mr. Rosenthal in New York. From Mr. Rosenthal came a reply that is highly significant, particularly in that it announces that the proposed new copyright license which Mr. Rosenthal says will not be imposed without further conferences with the NAB will be for three year terms. The Rosenthal letter to Mr. Clarke follows : "This is to acknowledge with thanks the receipt of your letter of the 17th, together with the en closure consisting of a copy of your letter of the same date addressed to Mr. Martin Codel, Editor of Broadcasting, Washington, D. C. "We appreciate the sentiment which you have expressed, but regret to say that the representatives of the broadcasters who have met us in conference are unanimously opposed to a plan or system whereby we shall be paid upon the basis of a percentage of the money which the station receives from commercial broadcasting. "We have found upon investigation that the plan which was suggested to us by the Committee of the National Association of Broadcasters, Inc., would materially increase the rates paid by the smaller stations of the country, most of which we find are not members of the NAB, and would reduce the rates paid by the larger and important broadcasting stations which do between 80 and 90 per cent of the commercial broadcasting of the country. "We shall proceed to hold further conferences with the representatives of the NAB and it seems too bad that there is not a similar association to represent the 'independent' or smaller broadcasters. Nevertheless you can rest assured that whatever plan we do adopt, consideration will be given to the operating conditions of every broadcaster. "There is just one statement which you make that we desire to correct. Our members are not jealous of the prosperity of the broadcasters but their business has been affected to such an extent that they cannot exist any longer unless they receive adequate compensation from the broadcaster who, notwithstanding the depression throughout the country in every other industry, has prospered materially. "I also wish to say to you that in order to give stability to the broadcaster, our license contemplates that the license shall be issued for a period of three years, and thus the broadcaster will know what his rate will be for that definite period. Yours very trulv, J. C. ROSENTHAL." Wave Measuring Service A FREQUENCY measuring service for broadcasting stations, to meet a need for accurate outside checks on emitted frequency in view of the new 50-cycle plus and minus deviation regulation of the Federal Radio Commission, is announced by RCA Communications, Inc., effective immediately. Service will be from the Frequency Measuring Laboratory at Riverhead, L. I., heretofore maintained to monitor the frequencies of international radiotelegraph transmitters operated by or received by RCA. General Order 116, prescribing a maximum 50-cycle deviation, is effective June 21 of next year. Puts Them onr'Cold" AMATEUR NIGHTS on WBSO, Needham, Mass., consists of placing would-be radio performers before the microphone without previous auditions or rehearsals. The result has been a tremendous interest in the part of the community, in which everybody is interested in the artistic aspirations of his neighbor and his family, according to Winslow Webber, manager. The station has also uncovered some exceptionally good talent in this way, says Mr. Webber. Often, the more "awful" the performance, the more amusing it is to the audience. However, when it gets too awful, the control room man simply drops the needle on a transcription and the performer finishes his turn without knowing he has been cut off. Yost Would Share WRAK With Press Newspaper Favored in Test Case by Chief Examiner ANOTHER precedent leading to possible encroachment upon the facilities of existing broadcasting stations by interests now outside -of radio-is seen in the recommendation of Chief Examiner Yost Dec. 2 that the Federal Radio Commission grant one-half of the present assignment of WRAK, Williamsport, Pa., to the Williamsport Sun-Gazette Co. While Mr. Yost at the hearing on the newspaper application said he did not consider the case as a "test" — though Attorney Elisha Hanson declared it was — the recommendation nevertheless raises the question as to the right of newspapers to engage in direct competition with existing broadcasting stations in their communities. It is problematical whether the Commission will sustain the chief examiner's finding. WRAK is operated by C. R, Cummins on the 1370 kc. channel with 100 watts. The Sun-Gazette Co., which publishes both the morning and afternoon papers in Williamsport, applied for one-half of WRAK's time with the support of the organized newspaper publishers of Pennsylvania and of the American Newspaper Publishers Association. Advertising competition between the local newspapers and the station was made an issue in the hearing held Oct. 20 and 21. In opening the hearing Mr. Hanson, counsel for the newspaper company and Washington counsel for the A.N.P.A., said that the application was considered by the association and by the Pennsylvania state branch as a test to protect the advertising rights of newspapers. He said that any one has the freedom to enter the newspaper business, while radio stations are more or less protected bv the license they hold from the Radio Commission. Mr. Yost did not allude to the Dill Raps Coasts* Hold on Channels ATTACKING clear channels on the two coasts as wasteful of the nation's radio facilities, Senator Dill (Dem.), Wash., criticized the Federal Radio Commission at a hearing before Chief Examiner Elli? A. Yost on Dec. 9 for its "failure'' to adjust broadcasting conditions in this country. He appeared as a witness for KVI, Tacoma, an applicant for the faciltiies occupied by KXA, Seattle. The former station operates limited time on 760 kc. with 1 kw. KXA is on 570 kc. with unlimited time and 500 watts. Senator Dill said he hoped the Commission will work out administrative details itself, but cautioned that if it did not, Congress would have to take a hand and enact remedial legislation. He said he would be the last one to foster any move to set aside or allocate frequencies for education or labor. The Commission should take a "broad view of the whole broadcasting situation" to avoid Congressional intervention, he said. "A town of over 100,000 people is entitled to a radio station in this day and age to get on the air with programs," the Senator asserted. He added it was his view that between 6 and 8 p.m. more people listen to their radios than at any other time during the day. Judge John Kendall, of Portland, appeared as counsel for KVT, and Paul D. P. Spearman represented the Spokane station. Page 10 "test case" aspects of the controversy in his report (Examiner's Report No. 295). He did, however, discuss advertising competition between the station and the newspaper, and the programs of WRAK, concluding that the public service record of the station would be "improved" by reducing the excessive amount of sales talk and direct price-quoting, and substituting broadcasts of a "real public service character." "A modern newspaper organization," said Mr. Yost in his conclusions, "is in a position to efficiently cooperate with a radio broadcasting station closely affiliated with or a part of its own organization. * * * Notwithstanding the fact that Williamsport has a radio broadcasting station, the Examiner is clearly of the opinion that improved and enlarged radio reception would result to the people of Williamsport and vicinity by granting the application of the Sun-Gazette Co." The issue in the case was described by Mr. Yost as whether WRAK should be given a license renewal for full time or whether the application of the Sun-Gazette Co. for a construction permit for a new station should be granted. No questions or interference or quota were involved, he said. The contention was made by the newspapers, Mr. Yost stated,' that Cummins devotes his station "wholly to competition against the local newspapers and the business of getting broadcast advertising; that his rates for such advertising are exceedingly low; that the advertiser can say whatever he pleases and as much as he pleases during his particular broadcasting period." BROADCASTING . December 15, 1931