Broadcasting (Oct 1931-Dec 1932)

The NEWS MAGAZINE of OL. 2, NO. 3 WASHINGTON, D. C THE FIFTH ESTATE FEBRUARY 1, 1932 ?3.00 PER YEAR — 15c A COPY ^1 ommission Opens Sweeping Radio Inquiry By SOL TAISHOFF Imphasis Placed on Advertising Issue in Questionnaires )rafted in Accordance With Couzens-Dill Resolution WITH FUTURE broadcast ing policy at stake, the Radio Commission has launched the most sweeping inquiry into commercial broadcast ing ever undertaken, pursuant to the r. W. Baldwin Couzens-Dill resotion (S. Res. 129) directing it to robe the whole broadcast struclre with particular reference to ivertising and to determine the lasibility, as a last resort, of gov•nment ownerhip. From quesonnaires and letters sent to "all nown sources of information," the ommission will compile a veritable icyclopedia of broadcasting to be iie basis for whatever action Conress may or may not deem neces The task of collecting and analying this information has been enrusted to James W. Baldwin, the ommission's young secretary. The Commission's own views on the 15 uestions propounded in the resoition, as amended by Senator Dill D.) of Washington, to embrace a aorough study of radio in educaion, will be gleaned from the data btained by Mr. Baldwin. No estimate was made as to how much ime will be required for the comletion of the study. Mr. Baldwin imphasized, however, that the subject is one which will receive ■referred attention." Questionnaires went to national dvertising agencies, radio adversers, foreign radio interests, government agencies identified with |-adio, the two radio educational associations, the National Associalion of Broadcasters as well as to ill stations and the networks. This und of information may be supplemented by testimony at general learings before the Commission, >ut this course has not yet been efinitely decided upon. Many hitherto undisclosed facts vill be brought to light when the iroadcasting stations under oath ubmit their answers to the 19 [uestions and double that number >f subquestions set forth in the broadcast questionnaire. Complete inancial statements from each staion and from the networks are requested, so that for the first time here will be available an accurate lalance sheet for broadcasting. It A VERITABLE ENCYCLOPEDIA on broadcasting will evolve from the data which the Radio Commission expects to glean from replies to questionnaires sent all agencies associated with broadcasting in this country. No superficial resume of radio may be anticipated from this inquiry but rather a mass of statistics which, broadcasters believe, will prove the superiority of the American Plan over any system of government ownership. While the questions relating to advertising and educational programs doubtless are the most important, the inquiry will uncover many highly significant facts about the 610 stations now in operation, largely in the hands of private competitive enterprises. will cover the calendar year 1931. It is expected that these figures will show the utter impracticability of attempting to maintain broadcasting in this country under government ownership or along European lines. With data available, too, on the European broadcasting structures, there will be a basis for comparison of the two systems from all angles. In legal circles it was pointed out that before steps could be taken to scrap the present industry and transfer broadcasting into governmental hands, the Constitutional guarantee of just compensation and due process of law with respect to confiscation of property would have to be complied with. Hundreds of millions of dollars would have to be disbursed by the Government in payment for the tangible property of the 610 stations as well as just compensation for that intangible but paramount asset of "goodwill." The Commission is going to the very root of the advertising problem. Aside from asking stations and networks precisely how many hours during a given week are devoted to sales talks or descriptions of commodities during daylight and during evening hours, the Commission is soliciting the opinions of leading agencies and radio advertisers. In a letter to more than 100 agencies placing accounts with the networks, mailed Jan. 19, the Commission pointed out that one of the questions contained in the resolution inquired whether it would be practicable and satisfactory to permit only the announcement of sponsorship of programs by persons or corporations. The Commission asked that the replies explain the reasons for the amount of sales talk injected into programs placed by these agencies and why the demands for such policy had been made. Policies To Be Compared FROM a small group of radio advertisers who have followed the policy of merely mentioning the name of the sponsor and of holding their programs to a minimum of sales talk the Commission hopes to acquire basic information. It also addressed the same letter to a number of program sponsors who have not pursued this policy and have been using radio for highpressure "plugging." These advertisers are asked to relate the degree of success attained from the mere announcement of sponsorship and to estimate the comparative value of their policies. These letters also were mailed Jan. 19. In its questionnaire sent to all stations Jan. 18 the Commission first selected a "typical broadcast week." The week of Nov. 8 to 14 at first was selected arbitrarily but sufficiently far back to avoid pos sible criticism that broadcasters might have been forewarned and adjusted their programs to include a minimum of commercialism. A cry immediately was heard, however, from the National Committee on Education by Radio, the propaganda organization created to lobby for the Fess bill seeking assignment of 15 per cent of the wave lengths to education. Armstrong Perry, one of the heads of the lobby, protested to Senator Dill that the Commission, with malice aforethought, had selected that week because National Education Week was observed from Nov. 9 to 15, and the ether lanes naturally carried an abnormal amount of e'ducational features. The Commission did not deem it worthwhile to deny the allegation, but immediately dispatched a supplemental questionnaire, under date of Jan. 21, in which the questions relating to educational programs broadcast were repeated for the week Nov. 1 to 7. Thus, with replies at hand for both the first and second weeks of the month on educational programs, and with one week occurring during nation-wide observance of education, it will have comparative data of value. Broadcasters were asked to state how many hours they are licensed to broadcast each week and how many hours the stations actually were on the air during the typical week. Then they were asked the number of hours devoted to commercial and sustaining programs during the day and night and whether the station is a local or on a network. Information on chain affiliations, the number of hours devoted to chain programs and detailed financial arrangements involving such programs was asked. Rates Are Asked QUESTIONS on time devoted to mechanical reproductions of any character during the week, together with rates charged for facilities, rate cards and program talent were asked. The question: "What, if any, changes in the nature and character of your program do you propose making during the year 1932?" was asked. Financial information sought from each station for the 1931 calendar year includes authorized capital, actual invested capital, gross receipts, gross expenditures subdivided into disbursements for talent, regular employees, equipment and other expenditures, net profit or loss omitting depreciation, appraised value of plant including studios, subdivided into (Continued on page 28) February I, 1932 • BROADCASTING Page 5