Broadcasting (July - Dec 1937)

RCA Prize Campaign RCA MFG. Co., Camden, N. J., will start a special campaign for RCA-Victor Overseas Dial Radios on September 19 with a $50,000 prize contest for the best 25-word letter on "Why I Like RCA-Victor Electric Tuning." Tke contest will be announced on the company's Magic Key program broadcast, Sundays, 2-3 p. m., on the NBCBlue network, and will run for five weeks. World-wide use of radio in the protection of life in everyday affairs will be demonstrated, with examples of police work, fire-fighting, airplanes, and ships at sea. Five thousand prizes will be awarded each week. The RCA agency is Lord & Thomas Inc., New York. Music Boosted; NAB Calls Session {Continued from Page 12) stance by the negotiating committee but refused by the meeting, was that they set up "credits" of 10% as a sort of equalization fund which they would disperse to their affiliates in a manner they agree upon as most equitable by giving the "deserving" stations or those which might be jeopardized by the additional payroll requirements for musicians the bulk of the rebates. It was figured that of the $1,500,000 additional asked from the network affiliates, the managed and operated stations of NBC and CBS would automatically pay some $200,000 additional and that the key stations of Mutual would be required to pay an additional $100,000 for musical talent. This reduced the figure of the independent affiliates to $1,200,000, it was estimated, of which 10% or $120,000 would be set up in the "credit" fund proposed. Moreover, the networks declared that President Weber indicated they would be expected to hire some 400 additional musicians in New York, Chicago and Hollywood as a means of aiding the unemployment relief. Proposal Rejected The affiliates, however, in their sessions rejected the proposal and asked that instead the networks credit every affiliated station with a reduction in their "free time" to the networks, of two hours. Network spokesmen said this proposal. when formally presented by the negotiating committee, probably would be rejected as confiscatory. It was stated, for example, that in dollars such a proposal would mean that NBC would donate some $600,000 in time value back to their stations while CBS would contribute some $500,000 which would mean that the affiliated stations would only be counted upon to bear the burden of $100,000 in actual additional outlay in the musicians' crisis. Moreover, it was contended that some stations, already having their quota of musicians in terms of dollars expended by virtue of house orchestras, would actually "make money" on the deal. The special meeting of the NAB Board, called for Sept. 10, concurrently with the IRNA, proved a stormy session. So did several other emergency sessions called during the negotiations. No less than four of the members proffered their resignations, which were not accepted. Edwin Craig, L. B. Wilson and John Gillin, the latter the first vicepresident, offered to resign after President John Elmer had deprecated their association with the affiliate group. Mr. Wilson served as chairman of the financial committee and had written a letter to all stations asking them to contribute the equivalent of their quarterhour rate to defray the expenses of the negotiating committee and the affiliate group, then estimated at $12,000. The actual figure, however, proved half that amount. President Elmer had criticized that action too. After the resignations ha-d been proffered, the members were prevailed upon to withdraw them. The fourth "resignation" which developed at a Sunday session of the Board on Sept. 12 was that of Edward A. Allen, _WLVA, Lynchburg, Va., and president of the Nat i o n a 1 Independent Broadcasters representing local independent stations, which has been largely inactive during the past two years. Out of sympathy with the entire procedure relating to the negotiations with musicians, Mr. Allen contended many local stations would be ruined and that he would prefer to fight it out by permitting the strike to come off as scheduled rather than capitulate to the demands. His resignation, up to the time Broadcasting went to press, had not been accepted and he had not withdrawn it. Despite the tension that gripped the group, there was much praise for the manner in which the negotiating committee functioned and for the expert way in which Mr. Ethridge presided over the sessions. At the outset Mr. Ethridge had explained that his only reason for participating in the movement of the affiliates was because the NAB was not properly staffed to cope with it due to absence of legal and labor counsel. Reports on various phases of the negotiations were given the group by Messrs. Ethridge, Rosenbaum, who handled network negotiations, j Norton, a well-known Louisville ; attorney who drew up the form of i contract, and Hedges, who defined the negotiations with AFM. All of the sessions of the group were closed except to network affiliated stations. Possible Revision In addition to the continuing work of the Negotiating Committee, which meets again with President Weber on Sept. 15, Mr. Shepard was devoting study to a possible revised formula; Mr. Rosenbaum to continue conversations with the networks on the degree of their participation in the additional cost, and Mr. Norton on revision of the proposed contract. It was decided to continue IRNA as an organized group, at least until contracts have been signed with the musicians and possibly longer if it felt that the need still exists. Mr. Ethridge was given authority to call further meetings of the group at any time he deems it necessary to do so. The group made it plain, however, that it has in no sense broken with nor is it a rival organization to the NAB. At the final meeting on Sept. 12, the NAB Board presented the following statement to the IRNA: "The NAB always has invited all broadcasting stations to membership. As a consequence there have existed in the NAB membership from time to time conflicting interests which could not be represented by the NAB directorate. Nevertheless the NAB stands as the defender of the American system of broadcasting. "Realizing that various classes of stations within the broadcasting industry have divergent interests which cannot always be served by the NAB and that three organized groups representing such classes have already been formed (e.g. the clear channel, the regional and the local stations represented at the October hearings before the FCC) the Board endorses the formation of such organized groups within K H B C HILO, HAWAII KQMB HONOLULU , HAWAII, fREO i. HART, Pmldnl sad G«B«Tar Mmatn SAN FRANOSCO OmCE, CAUFORNIAN HOIU CONQUEST ALUANCE COMPANY r ron. Ill MADISON AVE. CHICAGO. tOO N. USAUi B WHO-n -Tkex MrnnoA Page 74 • September 15, 1937 CLEAREO-CHANNEL — 50/000 WATTS — FULL-TIME BROADCASTING • Broadcast Advertising