Broadcasting (Oct 1931-Dec 1932)

Senate Committee Plans Study Of Mexican-Cuban Wave Grabs State Department and Commission Face Grilling For Laxity as Result of Dill's Resolution By SOL TAISHOFF PREPARATIONS for a sweeping inquiry into the North American broadcasting situation, to learn why the State Department has not negotiated with Mexico and Cuba to safeguard channels on which American stations operate, are being made by the Senate Interstate Commerce Committee pursuant to a resolution (S. Res. 163) introduced by Senator Dill (D.) of Washington. Introduced Feb. 6, the resolution immediately was referred by the Senate to the Interstate Commerce Committee. Senate action will not be in order until after the Committee has held hearings likely to start in a fortnight, and submits its report to the full body. Officials of the State Department and the Commission will be called. The resolution asks the Secretary of State, with the assistance of the Radio Commission, to negotiate international agreements with Canada, Mexico and Cuba, and any other countries involved, either separately or by joint convention, "for the protection of radio broadcasting stations in all of these countries from interference with one another, whereby a fair and equitable division of the use of radio facilities allocated for broadcasting under the International Radio Telegraph Convention of Washington, in 1927, may be made." The move grew out of disclosures of station-building activities in Mexico and Cuba which seriously endanger the operation of stations in the United States and Canada. Senator Dill stated in his resolution that many stations in the Latin-American countries are using frequencies upon which North American stations operate and thereby are causing interference. Moreover, he pointed out that it is "reliably reported" that a number of additional stations are planned and under construction near the United States border in Mexico. Fraud Orders Issued MEANWHILE, it was revealed by Horace J. Donnelly, solicitor of the Post Office Department, that fraud orders against XED, at Reynosa, Mexico, just across the border from McAllen, Tex., and against an advertiser over CMK, Havana, Cuba's biggest station, have been issued because of the broadcasting of illegal lottery sweepstakes soliciting money from American listeners. These, Mr. Donnelly explained, are the first cases on record in which stations either in this or neighboring countries have been cited for violation of the postal laws involving lotteries. That the Post Office Department is on the alert to prevent illegal advertising of this or any other character from foreign stations operating in territory contiguous to the United States, vith an ob vious purpose of reaching American listeners, is clearly indicated by the issuance of these fraud orders. Postal inspectors are observing closely the operations of such stations and redouble their investigations once complaints are received. Solicitor Donnelly explained that the postal laws give the department full authority to block such illicit advertising so far as possible. The method employed is to refuse delivery ©f mail to enterprises against which fraud orders have been issued, as well as to refuse to certify money orders consigned to them. Such mail is stamped by the department as "Fraudulent" with an additi©nal notation that it is returned to the sender "by order of the Postmaster General." XED uses 10 kw., and although it is licensed in the name of a Mexican citizen, the postal fraud order is addressed to the "International Broadcasting Company" and several other aliases alleged to have been used in the solicitation for lottery ticket sales. The second order is against the "National Brokerage Co." and the "Havana Brokerage Co.," both apparently the same concern, which have advertised over CMK. The station is operated with 3,150 watts by the Plaza Hotel in Havana. Both stations make their announcements in English as well as in Spanish for the benefit of American listeners. Because of their proximity to the American border they are easily heard in southeastern United States. They are among the group of stations understood to be backed by American capital. Trouble Brews in Mexico FROM MEXICO, word is received that the new Mexican administration, which came into office about a month ago, plans "drastic changes" in policy governing broadcasting. The nature is not disclosed, but it is known that American interests with investments in Mexican broadcasting are outwardly perturbed. The new Minister of Communications, Miguel Acosta, is a member" of the Revolutionary Party. Already, it is reported, he has issued a rigid censorship covering all branches of communications but directed particularly at religious activities. Special efforts are being made to stamp out Catholic activities. Senator Dill's resolution was the culmination of several verbal attacks he had launched in the Senate recently against the State Department for its failure to correct the North American problem. He said the department had been asked on several occasions to adjust conditions but that it "sits idle and does nothing." Pointing out that there is no international agreement or treaty dividing the use of frequencies for Hearing on Brown Points to Approval CommissionNomineeDefends Self Under Couzens' Fire SENATE CONFIRMATION of Col. Thad H. B rown, Radio Commission general counsel, as radio commissioner representing the second zone, was regarded as a foregone conclusion in Senatorial circles following presentation of testimony by the nominee in his own behalf Feb. 10 before the Interstate Commerce Committee. While the committee will hold further hearings regarding Col. Brown's qualification, it is expected that a favorable report will be made and that the Senate then will confirm him. Col. Brown defended himself against charges made by Senator Couzens (R.) of Michigan, chairman of the committee, to the apparent satisfaction of other Senators at the hearing. Senator Couzens had protested the nomination to President Hoover on two occasions, charging it was a "political appointment." He questioned Col. Brown particularly about his activities as Secretary of State of Ohio. Offered Second Zone WHEN THE original Commission was created in 1927, Col. Brown said he was under consideration for the second zone appointment and afterwards had applied for appoinlment as general counsel. He read into the record correspondence with Herbert Hoover, then Secretary of Commerce, but explained he rejected the position because it paid only $5,600, which was considerably less than law practice in Columbus afforded. He said he accepted the position in December, 1929, succeeding B. M. Webster, Jr., resigned, after it had been proffered by the White House. The post now pays $10,000. Col. Brown said he had been president and general counsel of WJAY, in Cleveland, and had owned about 20 per cent of the stock of the corporation, capitalized at $50,000. Although interested in the station for about nine months, he stated he had disposed of his holdings in 1928. Questioned closely by Senator Couzens in connection with the collection of automobile fees during his tenure as Ohio Secretary of State from 1923 to 1927, Col. Brown explained that when he took broadcasting among the nations, Senator Dill said he was convinced that such a treaty must be written to supersede the so-called "gentlemen's agreement" between the United States and Canada by which the 96 wave lengths are now divided. Neither Mexico nor Cuba is a party to this agreement. It is by no means certain that the Senate will pass the resolution or even be called upon to do so. The fact, however, that hearings will be held before the Senate Committee to rouse the State Department from its apparent lethargy, will be a step in the proper direction, in Senator Dill's opinion. The Commission also will be called upon to present its side of the story. It (Continued on page 22) office he found corruption in motor vehicle department and , dismissed several deputies vj had diverted funds to their cl use. Col. Brown denied that he ij asked certain of his associates solicit senators in his behalf, . answering a charge by Sena Couzens that several Commisattorneys had consulted Senat i "because they hope to be promo if you're stepped up." He also nied that he had promised the p to any particular assistant but had assured the three assist; general counsel that he would to have the vacancy filled f r within the Commission. Opposed RCA Renewals ASKED respecting his partici) tion in the celebrated "Section ] case involving the RCA, Col. Bro said he had recommended in opinion that the Commission fuse renewal of those licenses a permit the case to go to court. 1 Commission, however, by three two votes, overruled his opini< he said. Col. Brown disagreed with a : mark by Senator Couzens that Commissioner is "almost a czar the zone he represents," declari that the record did not bear c such a statement. Senator Wagner, (D.) of N York, criticized what he constru as politics in radio regulation, a declared that it should be "releas from the political grip" and shot be as far away from politics as pc sible. • In recessing the hearing, Sen tor Couzens asked Col. Brown submit to the committee a detail list of actions taken by the Coi mission respecting Ohio statio and applications. Originally t hearing was recessed until Feb. 1 but was postponed later by t: chairman to afford him an oppo tunity to study the new inform tion. Prefer Afternoon WITH NO prize offerings and y drawing 4,000 fan letters a mont the "Hill Billy Serenade" c WKJC, Lancaster, Pa., is offer< as proof by L. H. Bailey, static manager, that mid-afternoon tin is salable and effective. The pn gram is sponsored by eight noi competing advertisers daily froi 2 to 3 p. m. Its popularity hs made that period "preferred pos tion" for which there is a waitin list and for which rates eve higher than evening time are ot tained. The feature is now nearl a year old. WOS Transfer Blocked ■ STATION WOS, Jefferson City Mo., will remain under state con trol and non-commercial with thi rejection by Gov. H. S. Caulfiek of the proposal that the station bi leased to its announcer, John D Heiny. The proposal to lease thestation was made when it was found economies had to be effected in operation because of decreased appropriations. An application for assignment of license to Heiny recently was approved by the Commission. Page 6 BROADCASTING • February 15, 1932