Broadcasting (July - Dec 1938)

Develop Antenna to Steer Signal (Continued from Page 13) McLaughlin letter regarding agricultural programs carried over the Kennedy stations and whether there was any "coincidence" between the fact that the letter was dated at the time the WLW hearing was underway. The witness became incensed, asserting he had no explanation to make but that apparently Mr. Patrick was inferring that he had done something which was an offense under the statutes and that he felt he was "pushing it just a little too far". Procter & Gamble programs and the manner in which they are placed became the next subject and Mr. Kennedy agreed that placement of spot business, as distinguished from network business, is much more elastic. He insisted that WLW's operation with high power affected his ability to serve the public interest in West Virginia. Data on Earnings Of Three Stations Sought Mr. Kennedy's testimony was brought to a close July 28 with further cross-examination by Mr. Patrick. Rigid questioning in connection with the fiscal operations of the three Kennedy stations led to a request by Mr. Patrick that Mr. Kennedy supply for the record his responses to the recent FCC questionnaire on income and expenses of his stations. Mr. Kennedy said while he had nothing to hide, it was his understanding that such information was furnished to the Commission on a confidential basis and that he would rather not have this data made public since it might be used to his disadvantage. Chairman Case finally ruled that the data were procured for the purpose only of arriving at general industry figures and that the Commission could not with propriety order their inclusion in the record. Mr. Patrick then cited figures on the operation of the three stations, submitted in connection with applications for renewal of licenses as required by the rules. These showed the gross income, expenditures for talent, and expenditures for other purposes of the stations for the six-month period antedating the renewal based on a monthly average. Mr. Patrick questioned him in connection with his previous testimony that the stations as a group were not making large profits, but on the other hand might be losing money at this time. The witness explained he did not compile the figures himself and that the returns were handled by his auditor. The data were not introduced in the record as exhibits but simply used by Mr. Patrick for questioning as to expenditures for talent and other purposes as well as general operations. The figures generally showed, it was brought out, that since Mr. Kennedy assumed the ownership of the stations there have been substantial gains in gross income. Mr. Kennedy emphasized, however, that the gains shown were only in gross. Asked whether the figures showed that the stations made "very little money" Mr. Kennedy declared the figures did not represent total net profit since such factors as depreciation and obsolescence were not included under the heading "all other expense". The differential between expenses and gross income were not disclosed for the record. Mr. Leydorf predicted. The selective fading area might be pushed out 200 miles or so, or it might be brought in very close to the antenna, depending upon the type of service contour desired. Moreover, he said, this area could be very closely limited in extent with a strong ground wave signal beginning from the outer edge. Responding to questions by WLW counsel Duke M. Patrick, Mr. Leydorf felt his proposed circular array would place a substantial portion of the listeners now in the fast fading area of WLW, and receiving only intermittent service, in the good service area. The fast fading area might be put into a "no man's land" with the signal so controlled as to weave in and out of populous areas providing a maximum possible service. In summarizing anticipated results, after having been plied with questions by Commissioner T. A. M. Craven (who was instrumental in installing the country's first directional antenna), Mr. Leydorf said the proposed array can be used to control both the primary and secondary service areas. The system should improve the secondary service area where more signal is most needed and reduce it when it is not needed. It can limit the fast fading area in such a manner as to intensify the secondary signal and generally steer the course of WLW's operation'so that it will provide maximum service in both its secondary and primary areas whatever propagation conditions exist, he added. He pointed out that if it were found that stations in a given area in the secondary coverage of WLW provided an abundance of programs, engineering technique could be employed to minimize service in that area. Conversely, if it were found desirable to intensify service in another locality, not receiving adequate service, that could be accomplished, he asserted. Under present conditions, Mr. Leydorf said, this system could not be used effectively by all classes of stations. Discusses Competitive Situation in West Virginia Regarding station service in West Virginia, Mr. Kennedy brought out that there are seven stations in the state and that he owns or controls three of them. He agreed that WLW furinshes "the best signal of any outside station" in the general area of the State except for that portion close to Pittsburgh. Mr. Kennedy declared WLW was competitive with his Parkersburg and Charleston stations but not so much with Clarksburg. The competition ran both as to audience and business, he asserted. Asked whether he considered competition desirable, Mr. Kennedy said he thought it was. While he declared he did not like the "type of competition such as the Red Top incident" which came from WLW, he said in response to a hypothetical question that he preferred competition from an outside station like WLW to actual He predicted this could be done with the proposed system. Mr. Leydorf declared that ever since the Canadian problem was attacked in 1935 he has been making surveys in connection with the proposed new plan. The cost factor is "nebulous" at the present time, but he estimated that, taking into account several possible designs of antennas and other factors, the cost probably would be around $100,000, including research, provision of ground systems, etc. Over and above that cost would be the purchase of additional land to house the array and the ground system. Asked by Commissioner Craven whether his structure was similar to the Franklin experimentations in Germany, Mr. Leydorf said it was somewhat more extreme than that structure, with which he was entirely familiar. WLW, he declared, desires a structure with greater flexibility, which would permit it to increase its secondary field at will and thereby provide maximum remote service. He said he knew of no other such undertaking but mentioned that WOR uses a directional antenna effectively to take care of its particular coverage problem. He said his idea was the adaptation of a principle he thought sound since its purpose is to apply the station's service area to its service requirements by putting signals where they are most desired and removing them from areas whei'e they are not desired. Checking Mr. Leydorf as to whether his plan was entirely new, FCC Counsel Porter inquired whether the same sort of antenna ray was not covered in an article published in the IRE proceedings in 1930. Mr. Leydorf said that while the subject was dealt with then he did not regard it as a "treatise" and that there have been many important developments since. Mr. Porter pressed the witness on what would be gained by changing WLW's antenna system and Mr. Leydorf asserted that he felt field intensity in rural areas and overriding of noise and static would occur. competition of stations in the same towns. Pressed with questions on competition from outside stations, Mr. Kennedy said that if the type of competition enables "both of us to live I would prefer the outside kind." If WLW used a 50 kw. instead of a 500 kw. signal, Mr. Kennedy said, he would not object to it in the slightest. This statement came on the assumption that WLW would have the same signal in West Virginia with 50 as it does with 500 kw., though Mr. Kennedy contended that he felt it would not have as strong a signal. If WLW were not heard in West Virginia because of reduced power, Mr. Kennedy contended there would be no adverse affect on the listeners in the State. He said the elimination of the competition would enable other stations to provide a better public service by virtue of increased national business. Moreover, he contended the stations in the State now overlap in service areas. Concluding his examination, Mr. Patrick asked the witness what his position was in connection with the issue involved in the WLW proceeding. Mr. Kennedy said he felt that if there are going to be 500 kw. stations, one station should not be permitted to "usurp" that position but "we ought to have lots of them." He said, replying to Mr. Patrick, that he felt there had to be "a first" and he realized that the undertaking was a pioneering one. Asked if his opinion was based on his reactions as a listener or as a competitor, Mr. Kennedy said they were based on both plus the fact that he is a citizen and taxpayer. Indianapolis Survey Explained by Bausman Robert E. Bausman, commercial manager of WIRE, Indianapolis, called as the second FCC witness, replied to Commission Counsel Walker that he closely checked national advertising in the Indianapolis area. He said he recently made a week's survey of so-called "spotlight" advertising on the rad i o pages of the three Indianapolis newspapers in which sponsors called attention to their programs being broadcast over particular stations. This survey disclosed, roughly, he said, that WLW was mentioned as the station to be tuned in 1140 lines of advertising during the week while both of the Indianapoli s stations — WFBM and WIRE — had a combined total of only about 900 lines. Under cross-examination by Mr. Patrick, Mr. Bausman said WIRE is a basic Red Network station and as such receives all Red Network programs. It also carries one Blue Network program. He added that, aside from two network programs sponsored by Procter & Gamble, the station had no Procter & Gamble business. He declared he did not know about Procter & Gamble accounts which might be on WFBM, Indianapolis. Mr. Patrick placed in the record a brochure issued early this year by WIRE for sales promotion purposes. Listed in it were NBC commercial accounts together with all spot business handled on the station as of that time. The witness was asked to specify which of the programs were spot as distinguished from network and submit the data for the record at a future date. Mr. Patrick sought to ascertain if Mr. Bausman had been "invited" to offer his testimony by the Commission or whether he had advanced the suggestion. Mr. Porter interrupted that he took full responsibility for having subpoenaed the witness and Gov. Case held that the matter was not a proper one for examination. In rephrasing his question, Mr. Patrick developed that Mr. Bausman had had a personal conversation with Commission counsel which was followed by the issuance of the subpoena. Salesman Tells of Coverage Claims Myron A. Elges, salesman in the New York office of William G. Rambeau Co., representatives for WIRE, testified on direct examination that he had worked for the organization about 11 months and BROADCASTING • Broadcast Advertising August 1, 1938 • Page 59