Broadcasting (Oct 1931-Dec 1932)

Radio Fees of $670,000 Yearly Proposed in Report to Senate Broadcasters are Hardest Hit by Tax on Permits Provided in Amendment to Davis Bill LICENSE and filing fees designed to collect about $670,000 annually from users of the ether, but with broadcasters carrying the major burden, are proposed in the Davis omnibus bill (H. R. 7716) as amended by the Senate Interstate Commerce Committee and reported to the Senate April 14. The measure also carried a number of additional amendments of a nature considered objectionable to broadcasters. Based on a schedule drafted by the Radio Commission, the fee schedule would impose annual license fees upon stations ranging from $120 for a station of 100 watts or less to $5,000 for 50-kw. outlets operating "during night-time on any frequency." Filing fees for ordinary construction permits for new stations, modification of assignments, and the like would be $60. The entire proposal will be opposed by the National Association of Broadcasters, it was stated by Philip G. Loucks, managing director, on the ground that it is unwarranted, inequitable and would place a severe burden on all stations. He said also that other provisions of the measure, as amended by the Senate also will be vigorously opposed, this action having been decided upon by the NAB board at its meeting in New York April 18 and 19 when it considered also the proposed new musical copyright fees. Provides Division Transfer IN REPORTING the amended bill, Senator Dill said it contained two provisions in accord with the economy program of the administration. Aside from the license fee system, he declared it provides for the absorption of the Radio Division of the Commerce Department by the Radio Commission, thereby eliminating duplication of efforts. Concerning the license fee schedule, he explained the Radio Commission had submitted two schedules, one to raise approximately $1,100,000 to defray the entire cost of radio administration by the Radio Commission and the Radio Division. The other, which the committee adopted in modified form, provided for the lesser amount to help "pay the cost" of regulation. "Your committee," he added, "believes such fees are entirely just, because without governmental regulation the interference between radio stations would amount to chaos so far as radio reception is concerned. "The Radio Commission prepared the list of charges for the various items and your committee has followed the commission's suggestions in most of the fees prescribed. It will be noted that the fees are highest on broadcasting stations and commercial stations. These stations charge substantial fees for the use of their facilities and can well afford to help pay the cost of regulation." It is expected that hearings will be held on the amended measure before the conference committee appointed by the presiding officers of the two houses, should the bill pass the Senate. This would be an unusual procedure, but it is considered desirable since no hearings were held on the license fee provision or the other amendments proposed by the Senate Committee. The NAB has asked to be heard on the measure. Text of Measure THE SCHEDULE of license fees as contained in the bill follows in full text: Sec. 17. The commission shall charge, assess, and cause to be collected the following reasonable fees for the filing of any and all instruments under the provisions of this act or under the rules and regulations of the commission and for each license or renewal thereof issued by the Commission. All such fees shall accompany the respective applications or instruments and shall be deposited into the Treasury of the United States as miscellaneous receipts. The classification of stations referred to herein shall be taken as those now or hereinafter established by regulations of the Federal Radio Commission. Construction Permits 1. Filing fee for all applications for construction permits for new stations, or for a frequency or the time allocated to an existing station, or for change of frequency, except for the following classes of stations: Geophysical, motion picture, broadcast pick-up, airport, aeronautical, special experimental, $60. 2. Filing fee for all applications for construction permits for geophysical, motion picture, broadcast pickup, airport, aeronautical, and special experimental, $15. 3. Filing fee for all applications for modification of construction permits for new station or change of location, or frequency, or power, or time of operation of existing station, $10. Station Licenses 4. Filing fee for all applications for amateur-station licenses, $2. 5. Filing fee for all applications for original licenses following completion of construction for all classes of stations except the following: Geophysical, motion picture, broadcast pick-up, airport, special experimental, aircraft, and aeronautical, $15. 6. Filing fee for all applications for original licenses following completion of construction for the following classes of stations: Geophysical, motion picture, broadcast pick-up, airport, special experimental, aircraft, and aeronautical, $5. 7. Filing fee for all applications for renewal of station license other than amateur, geophysical, motion picture, broadcast pick-up, airport, special experimental, aircraft, and aeronautical, $15. 8. Filing fee for all applications for renewal of license for the following classes of stations: Geophysical, motion picture, broadcast pick-up, airport, special experimental, aircraft, and aeronautical, $5. 9. Fee for assignment of license and/or construction permits for sta MARCONI'S Half-Meter Aerial — The noted inventor of wireless used this short rod aerial semi-circular reflector in telephone experiments on 50 centimeters before representatives of the Italian government, using only a few watts power to achieve a distance of 25 miles. Apparatus built for Vatican. tions other than amateur, ships, aircraft, geophysical, broadcast pick-up, motion picture, airport, special experimental, and aeronautical, $60. 10. Fee for assignment of licenses and/or construction permits of aircraft, ship, geophysical, broadcast pick-up, motion picture, airport, special experimental, and aeronautical, $15. 11. Filing fee for all applications for modification of licenses, $10. Annual License Fees 12. Annual license fee for all licenses covering aircraft stations, $10. 13. Annual license fee for all licenses covering ship stations, $25. 14. Annual license fee for all licenses covering point-to-point telegraph and telephone stations in fixed public and fixed public press services, $75. 15. Annual license fee for all licenses covering coastal telegraph stations, coastal telephone stations, coastal harbor stations, mobile press stations, $50. 16. Annual license fee for all licenses covering general experimental stations, experimental relay broadcast stations, experimental visual broadcast stations, marine relay stations, agriculture point-to-point telegraph stations, aeronautical and aeronautical point-to-point stations, marine fire stations, municipal and state police stations, special emergency stations, $30. 17. Annual license fee for all licenses for geophysical, broadcast pickup, motion-picture, airport, special experimental stations, $15. 18. Annual license fee for all licenses covering broadcast stations, each station, as follows: A. Stations which are licensed to operate unlimited time and with the power as designated — (1) One hundred watts or less, two or more stations licensed to operate simultaneously during nighttime on the same frequency, $120. (2) Two hundred and fifty watts or less (but more than one hundred watts), two or more stations licensed to operate simultaneously during nighttime on the same frequency, $240. (3) Five hundred watts or less (but more than two hundred and fifty watts), two or more stations licensed to operate simultaneously during nighttime on the same frequency, $360. (4) One thousand watts or less (but more than five hundred watts and less than five thousand watts), two or more stations licensed to operate simultaneously during nighttime on the same frequency, $600. (5) Five thousand watts or more, two or more stations separated by less than two thousand miles licensed to operate simultaneously during nighttime on the same frequency, $1,200. (6) Five thousand watts or more, two or more stations separated by more than two thousand miles licensed to operate simultaneously during nighttime on the same frequency, $2,400. (7) Five thousand watts or more (but less than twenty-five thousand watts), only one station licensed to operate during nighttime on any frequency, $3,000. (8) Twenty-five thousand watts or more (but less than fifty thousand watts), only one station licensed to operate during nighttime on any frequency, $4,000. (9) Fifty thousand watts or more, only one station licensed to operate during nighttime on any frequency, $5,000. (10) For each twenty-five thousand watts or fraction thereof, additional to fifty thousand watts, only one station licensed to operate during nighttime on any frequency, $1,000. B. Stations which are licensed to operate during daytime hours only and with the power as designated — (1) One thousand watts or less: Fee to be one-third of the fee for stations of the same power licensed to operate unlimited time. (2) Two thousand five hundred watts or less (but more than one thousand watts), $450. (3) More than two thousand five hundred watts, $900. C. Stations which are licensed to operate hours less than unlimited time and/or to use different power during daytime hours than during nighttime hours: Fee to be in proportion to nighttime and daytime hours and power authorized, based on fees for unlimited time station, and daytime station of the same power. 19. Annual license fee for all licenses covering special stations used for entertainment purposes other than broadcasting for which quota units are assigned, such as television and relay broadcasting, $60. 20. Annual license fee for all licenses covering special stations not specifically mentioned in the above classification, the same to be determined by the commission, $30. Miscellaneous 21. Filing fee for examination for commercial operator's license, $3. 22. Filing fee for examination for amateur operator's license, $1. 23. Annual license fee for amateur operator, $1. 24. Annual license fee for commercial operator, $2. 25. Inspection fee for all radio equipment aboard ships required by law to be equipped with radio — (a) Inspection for station license, $5. (b) Inspection for sailing, $2.50. 26. (a) Annual inspection fee for all radio stations other than amateur, aircraft, aeronautical, ship, geophysical, broadcast pick-up, motion picture, airport, special experimental; fee shall be for one annual inspection, to be made compulsory, $15. (b) Annual inspection fee for the following stations: Aircraft, aeronautical, geophysical, broadcast pick-up, motion picture, airport, and special experimental; fee shall be for one annual inspection, to be made compulsory, $5. 27. Fee for requested inspection on vessels voluntarily equipped, $10. 28. Petition of intervenor, $5. 29. Any default entered after notice for hearing has been issued, $5. All fees shall be paid to the secretary of the Radio Commission or such other employee of the commission _ as it may designate, and the commission (Continued on page 30) Page 10 BROADCASTING • May 1, 1932