Broadcasting (Oct 1931-Dec 1932)

NAB is Revitalized at Convention (Continued from page 9) legislation in the legislatures. Moreover, he said, there should be broadcasters in each district to get in touch with members of state and federal legislatures on matters of importance to broadcasting. On copyright legislation, Mr. Bellows reviewed the activity of the last session. He said every Congressman and Senator should learn from his constituent broadcaster that something must be done to check the rampage of ASCAP. He offered a resolution authorizing the board of directors to employ such counsel as it may from time to time need to appear before state and federal legislatures and to appeal to the courts when necessary. Advertising Threats: FREDERICK GAMBLE, executive secretary of the American Association of Advertising Agencies, in an address delivered for Charles F. Gannon, chairman of the AAAA radio committee, declared the industry must act in concert to prevent further regulation. Such regulation, he said, is in the offing for all advertising unless joint action is taken to curb legislation placing further governmental inhibitions on it. Urging that wide powers be given the NAB board, like those vested in the AAAA board, he said it then would be in position to meet emergency situations without complications. Agencies, he said, are concerned over ASCAP copyright fees "because they will undoubtedly be passed along to the advertiser." Discussing program building, Two can live almost as cheaply as one... a day more for two persons at Hotel Lexington. For instance, rooms at the minimum rate of $3 a day for one person, are only $4 a day for two. And the Lexington is a new hotel, located in the Grand Central Zone, one block from fashionable Park Avenue. HOTEL JCeXINGTON In Grand Central Zone, Lexington Ave. at 48th St. NEW YORK CITY CHAALES E. ROCHESTER, General Manager of Internal Revenue. Regarding the possibility of taxing stations, Mr. Bellows suggested that the trend toward beer and beer taxes likely will stop that project. A test case on the political section of the law, in the light of the Nebraska Supreme Court decision holding stations equally liable with speakers for libel uttered over their facilities, was advocated by Mr. Bellows. The case, still pending in the court to which it was remanded by the higher Nebraska tribunal, should be appealed to the Supreme Court of the United States, he said. Mr. Bellows also urged that the personnel of the NAB legislative committee be enlarged so that one member would be in each state and could inform headquarters of radio in New York ....Be Thrifty Comfortable cool rooms. • Open air roof lounge. • Free swimming pool. • Central location. • Five minutes from Penn. and Grand Central Stations. • Separate floors for men, women and couples. WEEKLY $8 up * NEW 23 STOH HOTEL Mr. Gamble said agencies want to cooperate with broadcasters on programs, but he added that "final control of programs must unquestionably remain in the stations' hands." Control responsibility, he explained, "also carries with it responsibility to improve programs." Regarding recognition by stations of various agencies, Mr. Gamble urged NAB to recognize only those agencies which have proved themselves bona fide. He recommended payments of cash discounts, and urged adoption of the new contract forms worked out cooperatively by the radio committee of AAAA and the commercial section of NAB. The proposed form was circulated at the convention and referred to the board for consideration. E. S. Sprague, NBC attorney, objected to that portion of the contract which would hold stations responsible for violations of copyright, and Mr. Gamble replied that no provisions of the contract are mandatory, and that contracts may be returned to the agency with objectionable requirements stricken. Copyright Debate: FORMAL copyright discussion was opened by Mr. Morency, who served as chairman of the copyright committee which was formed last April and carried on negotiations with E. C. Mills, general manager of ASCAP, until acceptance by the board of the so-called 3-4-5 contract in August. He pointed out that A. L. Ashby, vice president and general attorney of NBC, and Edward Klauber, first vice president of CBS, members of the negotiating committee, had not seen his repoi-t, and might dissent. Originally, Mr. Morency said, Mr. Mills demanded $3,500,000 from broadcasting instead of the annual royalty of less than $1,000,000 previously paid, on a 5 per cent of gross receipts basis, plus sustaining fees. He recounted the various steps taken, declaring that the agreement obtained by the committee for a 25 per cent increase to $1,250,000 for If? months was rejected by the NAB board largely because of the request that a "legislative truce" be declared during that period. This truce was thought relatively unimportant by the committee since it left ample time to work out a final proposition. In conclusion, Mr. Morency declared he believed the copyright committee obtained from ASCAP a "very favorable" deal, only to have it rejected by the NAB board and later to have the percentage basis forced upon it. Schuette Reports : IMMEDIATELY following M Morency's report, Mr. Schuette sul I mitted his report, in which he r< I viewed his negotiations with M I Mills up to the present time, ha^ I ing taken over the negotiations ur I der specific direction of the boar following its forced acceptance c the 3-4-5 plan. Mr. Schuette d< | clared broadcasters are willing t ,| pay a fair price for their mus: J and that dealing with ASCAP ut I der equitable conditions would t j preferable to creation of exclusiv I radio-music pool. "But when a monopoly bands tc | gether to fix arbitrary and extoi I tionate prices the only way t!| meet it is through combined ac | tion," he declared. Mr. Schuette accused Mr. Mill I of not having the authority h I claimed to deal with revision o I contracts. After weeks of negotia i tions, he declared, Mr. Mills finall agreed that the copyright contrac | should limit payment of the royalt j only on programs using ASCA1 I music and indicated that th ] ASCAP board would approve it j His board, however, rejected th J proposition flatly and demande^ i that the royalty be on gross re I ceipts of stations. Final revision of the contract I to a "per piece" basis, whereb: ! royalties would be paid only on th numbers used, was urged by Mi j Schuette. He asked broadcaster I to consider such a proposition am ' be in position to act, probably a ' the next convention. ASCAP, h *. asserted, must give music at ;1 price equal to the cost to the broad casters if they were to establisl their own copyright pool. He thei made his proposal for a Radio Pro | gram Foundation. Urging an enlarged and unite< I industry, Mr. Schuette suggeste< j that, pending revision of the NAI by-laws, stations which have gros: I incomes of less than $30,000 pe: J year, be admitted to membership j at $60 per year. The present ac.J tive membership minimum is $250£ Minor Proposals: OTHER RECOMMENDATIONS made to the convention included e proposal by S. H. Bliss, WCLO Janesville, Wis., that a committee be formed with a member in eacl state to campaign for increasec NAB membership, and a proposa' by John Gillin, WOW, Omaha that examiners be appointed foj each zone to hold hearings withir the zone, and thereby relieve the * hardship on stations forced tc come to Washington for hearing The convention also heard of the experiences of California broad' casters in passing along the ASCAP music royalty to advertisers from Mr. Tyson, KHJ, new director. Stations, he said, cannot afford to absorb that tax, and the application of the tax to the advertising costs puts ASCAP in a bad light. Numerous offers for the 1933. convention were made at the convention's close. Among the cities presenting bids were New Orleans, Pittsburgh, Atlantic City, Los Angeles, Omaha and Chicago. These, and other offers will be considered by the board at its spring meeting.' Page 30 BROADCASTING • December 1, 1932. [i