Broadcasting (Oct 1931-Dec 1932)

Tax on Broadcast Wire Charges Reported Favorably to Senate 5 Per Cent Levy is Restored Despite Protests; Station License Fee Scale Draws Opposition By LYNNE M. LAMM DESPITE the organized efforts of broadcasters and radio set manufacturers, the Senate Finance Committee has reported out the new revenue bill, designed to balance the budget, with provisions for a 5 per cent leased wire tax on all land lines used in broadcasting and also a 5 per cent tax on radio receiver and accessory sales. As passed by the House, the measure carried the receiver sales tax. The wire line provision had been excluded in House committee, only to be reinserted by the Senate. That efforts will be made on the Senate floor to eliminate both provisions, notably that affecting broadcast wire lines, has been indicated by members of that body. Senator Dill, (D.) of Washington, has served notice that he will oppose the wire tax. A protest against the provision has been filed with the Senate by the NAB, through Philip G. Loucks, managing director. The Radio Manufacturers Association repeatedly has made known its opposition to the radio sales tax^ which it calls discriminatory, arbitrary and unfair. Congress has been so occupied with fiscal legislation during the past fortnight that it has had little time to devote to other pending legislation involving radio. The most important of the measures, the Davis omnibus bill (H. R. 7716), as amended by the Senate Interstate Commerce Committee, was recommitted to that Committee May 12. Objections to these Senate amendments, for the most part sponsored by Senator Dill, has tended to hold up action. There has been so much opposition to the proposed license fee provision, whereby $670,000 would be raised to help offset the cost of federal radio administration, that it now is doubtful whether the measure will be considered at all this session. Chairman Couzens, of Michigan, offered the motion to recommit, which was adopted without debate. Refused Reconsideration IN HIS PROTEST against the 5 per cent tax on lines, Mr. Loucks asked the Finance Committee to reconsider its previous vote. This was refused, however, along with similar requests from other industries affecting other provisions of the bill. "The broadcasting industry," said the NAB protest, "is not unmindful of the necessity for Congress to enact tax legislation which would result in a balanced budget nor is this industry unappreciative of the task your committee faces in formulating an adequate tax bill at this time. Furthermore, broadcasters have no desire to avoid their just responsibility in this emergency. "While it is true that a few stations serving large metropolitan areas are enjoying relatively good business, nevertheless by far the greater number of the 600 stations, particularly those remote from Page 10 metropolitan areas, are struggling to make bare expenses. It follows, therefore, that many of these stations will be forced substantially to curtail their public service sustaining broadcasts such as religious services from churches, accounts of baseball and football games, politial speeches and education programs from schools, all of which require expensive leased lines and for which the stations generally derive no revenue." Mr. Loucks said further that imposition of the tax would be particularly burdensome to stations affiliated with networks in the south, southwest, west and northwest, where long line hauls from key stations normally constitute heavy costs. He brought out that the industry now is entering the summer season and stations are experiencing "extreme seasonable declines in revenues." Moreover broadcasters are faced with the license fee proposal, as well as with the proposal of the American Society of Composers, Authors and Publishers for music license fee increases ranging from 300 to 500 per cent. Asks for Views IN A NOTICE to all stations May 9, Mr. Loucks pointed out that the 5 per cent tax had been included in the bill and that every effort will be made to expedite action on the mea Cashing in on Midnight Oil Late Night Broadcasts Found Increasingly Profitable by WMCA After Seven Years Experience Mr. Flamm By DONALD FLAMM President of WMCA, New York SEVEN YEARS ago, when other radio stations considered 11 p.m. curfew time for all broadcasting activities, WMCA extended its signoff time to midnight. The extension was made on the assumption that in a metropolis such as New York there undoubtedly were thousands of listeners who had no desire to go to bed at that early hour. So successful was the experiment that the sign-off time of WMCA soon was advanced to 1 a.m. WMCA's "Round The Town Parade," a feature which took listeners into Broadway's most famous hotel grills and night clubs, was inaugurated and immediately established so large an audience that the station found it necessary two years ago again to extent its signoff time. This time it was fixed at 2 a.m. Varying Programs AFTER MIDNIGHT, broadcasting from WMCA encompasses three types of programs. "Round The Town Parade" takes listeners to night clubs and hotel restaurants where well-known metropolitan dance orchestras and entertainers are heard. Recently, too, the station featured half hour programs called "Night Court" and "Vaudeville Vignettes." A third late night series includes "Sleepy Time Club," a nocturne featuring Wurlitzer organ and voice with philosophy and poetry interpolated. Listeners are invited to join the mythical club through telephone calls. Since its inception a few months ago more than 15,000 members have been enrolled. Among these are Lupez Valez, Barbara Stanwyck, Vincent Lopez, Ely Culbertson, Ernest Truex, Buck and Bubbles, George Jessel, Ludwig Satz, Tony Canzonari, E. Ray Goetz, Preston Sturges, Joe Frisco, Lou Holtz, and Cole Porter. "Round The Town Parade" is a commercial feature. A remarkable testimonial as to the popularity of WMCA's late night broadcasts is the fact that several night clubs have refused offers to install remote lines free of charge, preferring to pay for time over WMCA because of the station's assured following. WMCA maintains from 25 to 30 remote control points for these late programs. A new controf board now being installed will permit as many as 55 remote points. Advertisers Interested RECENTLY commercial advertisers have interested themselves in late night time. It has long been my theory that such broadcasts should be extremely valuable to commercial accounts, particularly those distributing luxuries. Late night listeners are persons who can afford to buy luxuries . . . can afford to stay up late, in other words. The men and women who needn't worry about punching the time clock next morning do stay up late and do seek entertainment. Letters of comment on WMCA's late night features prove that this line of reasoning is sound. Such letters come from residential districts populated by persons of wealth. Recently WMCA extended its broadcasting activities even farther into the wee small hours, scheduling "Sleepy Time Club," its nocturne, from 2 to 2:30 a.m. Within the near future it plans to make 3 a.m. the regulation sign-off time. Some of the better known dance orchestras now heard over WMCA late at night include Al Katz and his Kittens, from Hollywood Restaurant; Snooks and his Memphis Ramblers, from Paramount Grill; Enoch Light and his Orchestra; Ted Black and his Orchestra, from the Village Barn; the California Ramblers, from Will Oakland's Terrace; Noble Sissle and his Orchestra, from the Park Central Hotel Grill; Dave Bernie (brother of Ben) and his Orchestra, from the Coral Grill, and Smith Ballew and his internationally famous musical aggregation, from Pavilion Royale. sure. He asked stations to answer a series of four questions so that i the NAB would be able to present I the views of the entire industry on the matter. The queries were on I the total line costs during 1931 paid by each stations; what amount of the total represents line charges for broadcasting non-commercial programs; what amount of the total represents line charges for commercial programs, and to what extent would the imposition of the tax curtail public service programs, such as religious, sports and the like. The provision for absorption of the Radio Division by the Commission, which was contained in the so-called House Economy Bill, would save $100,000 a year as well as eliminate duplication of effort in regulation, government actuaries estimated. A separate bill for the merger previously has passed the Senate. Passage of the alien radio operators' bill' (H. R. 11155) in the House, which would authorize the granting of operators licenses only to American citizens, was blocked by Rep. Stafford, (R.) of Wisconsin. The measure has passed the Senate. License Fees Opposed FOLLOWING the formal protest against the Davis omnibus bill filed by the NAB, as well as protests filed by the American Radio Relay League and other radio and communications interests, to the license fee provisions, Henry A.' Bellows, former radio commissioner, and vice-president of CBS, on May 2 telegraphed his opposition to Senator Robinson, of Arkansas, the Democratic leader. The message was inserted in the Congressional Record as follows: "Committee amendments to House radio bill reported without hearings appear utterly unworkable tc entire broadcasting industry, anc some of them seem so faulty as tc call for complete redrafting. Believe it would be most unfortunate for Senate to vote on this bill ir its present state and think it shoulc go back to Committee for furthei consideration and hearings, bu understand it may be called up foi action Monday. Radio peopl< throughout the entire country wil be grateful for chance to be hean before the Senate acts." World System Studios Opening in Washingtor WASHINGTON studios are bein; installed by the World Broadcast ing System in the Washingto: building, just opposite the U. S Treasury. The studios adjoin West ern Electric headquarters, and wil be open on or about May 21. Wit the opening of these studios, Worl makes available to members o Congress and other public official complete recording facilities, er abling them to reach their const tuents and the public at larg regularly by means of transcrif tions placed on local broadcast™ stations. It is expected that wide spread use of this method will b made in the forthcoming politic! campaign, both nationally and set tionally. Recording facilities Wi be provided free of charge, only nominal fee being imposed covei ing the cost of disks. BROADCASTING • May 15, 193.