Broadcasting (Oct 1931-Dec 1932)

Radio Advertising Inquiry Proposed NAB Directors Welcome Couzens-Dill Resolution; Commission Would Gather Data; Delay is Foreseen Senator Couzens By MARTIN CODEL OVERSHADOWING all other legislation concerning radio proposed in Congress during the last two weeks was the CouzensDill resolution (S. Res. 129) directing the Federal Radio Commission to conduct an inquiry into radio advertising, with particular emphasis on securing information regarding the feasibility of government ownership and operation of American broadcasting along European lines. Senator Couzens (R.) of Michigan, chairman of the Senate Interstate Commerce Committee introduced his resolution Jan. 7. On Jan. 9, Senator Dill (D.) of Washington, co-author of the Radio Act, added a list of amendments designed to bring out of the Commission's investigation certain facts concerning educational broadcasting by educational stations and others. Senator Dill seeks particularly to learn the extent to which educational stations have left the air. He also seeks a tabulation of quota units assigned to stations owned and used by NBC and CBS. The combined resolutions were passed by the Senate Jan. 12. Immediately upon the introduction of the Couzens resolution, Harry Shaw, president of NAB, and Philip G. Loucks, its managing director, called a meeting of the association's board of directors in Washington, at which a resolution welcoming the inquiry was passed. Inquiry Welcomed THE RESOLUTION reads as follows: "1. The board welcomes any fair and impartial investigation of the broadcasting industry as an opportunity to demonstrate that the American plan of competitive broadcasting, in the hands of private industry, is immeasurably superior to the system which prevails in Europe, of broadcasting stations owned or controlled by governments and supported by heavy taxes on receiving set owners. "2. The board is ready and willing to place at the disposal of Congress and the Federal Radio Commission any and all records, data and information which it has or which, through its organization, it may be able to obtain, and to this and offers its unqualified cooperation. "3. The board is confident that in the foregoing it is expressing the views of the entire membership of this association." Attending the NAB board meeting, at which copyright, taxation and other subjects also were discussed, were President Shaw and Managing Director Loucks; VicePresidents Paul W. Morency, of WTIC, Hartford, ai.d John J. Storey, of WTAG, Worcester; Di rectors Leo Fitzpatrick, WJR, Detroit; M. A. Howlett, WHK, Cleveland; Arthur Church, KMBC, Kansas City; H. K. Carpenter, WPTF, Raleigh, and J. G. Cummings, WOAI, San Antonio, Tex. Frank M. Russell, NBC, member of the executive committee, attended with the proxy of George F. McClelland and William S. Hedges, of NBC; Harry Butcher, Washington representative of CBS, attended with the proxy of Henry Bellows, WCCO, Minneapolis, and Don Lee, of the Don Lee-CBS System. Other proxies were held as follows: Harry Shaw for E. B. Craney, KGIR, Butte, Mont.; L. G. Caldwell for Quin A. Ryan, WGN, Chicago; and Frank D. Scott for A. J. McCosker, WOR, Newark. The Couzens-Dill resolution is entirely in the nature of a factfinding inquiry. Senator Couzens prefaced it with the statement that "there is growing dissatisfaction with the present use of radio facilities for purposes of commercial advertising." Senator Couzens declared he was not committed to any particular scheme of radio operation but merely wanted a factual "guide" when the matter of radio advertising comes up in Congress. It is evident that he does not intend to press for action in this session, which will adjourn next spring or COUZENS-DILL RESOLUTION (S. Res. 129 Passed by Senate Jan. 12) SENATOR COUZENS' PROPOSALS Whereas, there is growing dissatisfaction with the present use of radio facilities for purposes of commercial advertising; be it Resolved, that the Federal Radio Commission is hereby authorized and instructed to make a survey and to report to the Senate on the following questions: 1. What information there is available on the feasibility of government ownership and operation of broadcasting facilities. 2. To what extent the facilities of a representative group of broadcasting stations are used for commercial advertising purposes. 3. To what extent the use of radio facilities for purposes of commercial advertising varies as between stations having power of 100 watts, 500 watts, 1,000 watts, 5,000 watts, and all in excess of 5,000 watts. 4. What plans might be adopted to reduce, to limit, to control and perhaps to eliminate the use of radio facilities for commercial advertising purposes. 5. What rules or regulations have been adopted by other countries to control or to eliminate the use of radio facilities for commercial advertising purposes. 6. Whether it would be practicable and satisfactory to permit only the announcement of sponsorship of programs by persons or corporations. 7. Any information available concerning the investments and the net income of a number of representative broadcasting companies or stations. SENATOR DILL'S PROPOSALS 8. Since education is a public service paid for by the taxes of the people, and therefore the people have a right to have complete control of all the facilities of public education, what recognition has the commission given to the application of public educational institutions? Give name of stations, power used, and frequency. 9. What applications by public educational institutions for increased power and more effective frequencies have been granted since the commission's organization? What refused? 10. What educational stations have been granted cleared channels? What cleared channels are not used by chain broadcasting systems? 11. How many quota units are assigned to the National Broadcasting Company and the other stations it uses? To the Columbia Broadcasting System and other stations it uses? To stations under control of educational institutions? 12. In what cases has the commission given licenses to commercial stations for facilities applied for by educational institutions? 13. Has the commission granted any applications by educational stations for radio facilities previously used by commercial stations? If so, in what cases? In what cases have such applications been refused? Why refused? 14. To what extent are commercial stations allowing free use of their facilities for broadcasting programs for use in schools and public institutions? To what extent are such programs sponsored by commercial interests? By chain systems? 15. Does the commission believe that educational programs can be safely left to the voluntary gift of the use of facilities by commercial stations? summer to prepare for the pre:; dential campaign and which in t\ meantime has its calendar crowd with problems of much greater hJ portance than radio legislation. "I am convinced," said Senat Couzens, "that the whole radio i dustry is being irreparably dai aged by the amount of time giv to advertising on the radio, and the industry is to continue to me popular opinion, either adyertisii must be discontinued entirely, limited to a single statement co cerning sponsorship of the pr' gram." Commission plans for the inquh are indefinite at this writing, b they will probably take the for of questionnaires to stations. Ne: will follow public hearings : which the educators and the pre; interests opposed to present rad ownership and practices will 1 given an equal opportunity to sta their cases along with represent; tives of the broadcasting industr Much of the data asked for in tl Couzens-Dill resolution is alreac available in the Commission file Commission Alter Application Form Stations AreBeing Questions As to Data on Organization A QUESTIONNAIRE seeking ii formation on ownership of broai casting stations, as well as otlu organization data, as of Dec. 3 1931, is being sent to all statioi by the Federal Radio Commissio The questions conform wil those outlined in the new applies tion form for renewal of liceni and are being propounded at th time because renewal applicatior filter in at different times undt the new staggered license syster The Commission has revise most of the existing routine forrr to make them more comprehei sive. Only the applications to ii stall automatic frequency contr<" devices and for authority to dete: mine licensed power remain ur changed. The new renewal appl cation form is numbered 303. Th construction permit form, whic: also cares for modification of cor struction permits is numbered 30/ For modification of station licensv form No. 304 has been draftee Form No. 302 is for application fc: license following a constructio permit or modification. An entirely new form, to be use in applications for extensions c, time for construction permits a J ready issued is numbered 70'., Heretofore, such applications war! made as modification of construe tion permits. One for the Book FROM FULL-TIME operation t 1% hours per week is the reduc tion in operating hours voluntarily accepted by WLCI, Ithaca, N. Y under General Order 112 designe to bring about maximum use station facilities. Operated by th Lutheran Association, the Commis sion discovered that the statio was using less than the 12 houi per day specified for unlimite time stations. It asked the 5( watter about it, and the station re sponded it desired specified tiiri of one and one-half hours on Sur day mornings only. The station i assigned to 1210 kc. Page 8 BROADCASTING • January 15, 193