Broadcasting (July - Dec 1938)

News Survey Near End STUDY of news broadcasts and their effect on the opinions and habits of their hearers, being made by James Rorty and Mrs. Rorty as a part of the Princeton University study into the effect of modern broadcasting on the life and customs of the American public, is nearing completion and should probably be ready for publication about the first of the year. Radio news services, local and national news broadcasters and commentators, dramatized news programs are all included in the study, which is even making a survey of the actual results of the recent Martian attack scare resulting from the use of news broadcasting technique on a dramatic program. Test of Power Over Sales Prices (Continued from Page 22) CBY is the new call of the Canadian Broadcasting Corp.'s Toronto noncommercial station, which until Nov. 1 was known as CRCY. This completes the change from the CRC call letters standing for Canadian Radio Broadcasting Commission to the CB call letters signifying Canadian Broadcasting Corp. plicability of public utility precedent in connection with the transfer, the Commission said while under the Act an entity engaged in broadcasting is not deemed to be a common carrier, nevertheless the principle expressed is one which the Commission recognizes to be in accordance with sound public policy. "To permit, therefore, prior losses in the operation of Station WTIC and its affiliated shortwave stations, to be capitalized in the manner proposed herein, especially when consideration is given to the fact that no benefits will flow to the proposed assignee in exchange for the assumption of the note for $1,500,000, would not be in the public interest," it was stated. Commissioner Craven said flatly he felt the Commission should approve the assignment. The purpose, as he construed it, was that the parent company merely desired to combine ownership and operation of the station property in one corporation and thus create a more efficient and less complicated situation, both on its books and in actual conduct of the station. The price for the tangible property of $500,000, Commissioner Craven said, is so close to what the property is actually worth that it cannot be the basis for objection. The objection of the examiner, he said, centered entirely on the assumption of the contingent liability of $1,500,000 by the new subsidiary. He said he was unable to follow the examiner's reasoning since he seemed to place two "diametrically opposite interpretations on the legal significance of the obligation." Regarding the right to recover losses, Comdr. Craven said he knew of no law or philosophy of regulation in which it is a good public policy to deprive a pioneer of the opportunity to regain the moneys expended for development, when By popular vote THE MOST POPULAR STATION in CANADA'S WEALTHIEST MARKET! CFRB, TORONTO ONTARIO YES SIR, MY WHOLE FAMILY AND I VOTED FOR CFRB / Recently made public, the results of a straw vote conducted by a popular trade publication gives CFRB the popularity-edge over its nearest competitor by the astounding ratio of 3 to 1! Wholly voluntary replies to this poll which asked listeners to name their favourite radio station offer conclusive proof of CFRB's popular coverage! Distribution of the buying power of Canadian Industry, based upon the purchases of commodities and materials used in manufacturing, shows Ontario to have nearly 50% of the national total. When industrial purchases are added to consumer buying power, Ontario becomes a 2'/2 billiondollar market. CFRB, located in Toronto, Ontario, in the centre of a listening area of 54 cities and towns, is the KEY to this potential market! For over twelve years CFRB has adhered to its inaugural policy of bringing the best features and entertainment to its listeners. Affiliated with the Columbia Broadcasting System, CFRB consistently brings world events and news to Canadian listeners, through this network. CFRB's twelve years of unbiased service has built an audience goodwill that puts dollars in the pockets of shrewd advertisers. Get all the facts regarding CFRB's popular coverage before placing YOUR radio program in Canada's richest market! CFRB TORONTO THE KEY TO ONTARIO SALES ! Advertising Representatives in U. S. A. JOSEPH HERSHEY McGILLVRA New York • Chicago • San Francisco Los Angeles • Atlanta the development has resulted in benefit to the public. Then he launched into a discussion of the common carrier aspects and the "bare bones" policy which he alleged the majority had voted in this instance. Comdr. Craven said he knew there had developed a doctrine of public utility regulation which does not recognize the right of public utilities to recover pioneering losses but he held that the Communications Act specifies in effect that broadcasting is not a common carrier service. While courts have recognized stations as being public utilities, he added he knew of no instance in which they have inferred that stations may be classified as public utilities in the same sense as are railroads, power and light companies or gas companies. He added he felt the time has not yet arrived where the development of broadcasting justifies the application of common carrier doctrines of rate regulation, either by inference or by direct action. "Furthermore," the Commissioner added, "such a policy appears to be illogical because the situation in broadcasting differs so greatly from the situation of common carriers that the same principles of regulation could not be applied with a logical expectancy of successful operation of the broadcasting service. "A possible further reason for not imposing the doctrines of common carrier regulation upon broadcasting is that Congress clearly intended that while it desired to exercise a control of the application of broadcasting to the service of the public during the early development stages of this new art, it did not desire the administrative branches of the Government to so exercise control as to endanger freedom of speech and the use of radio as a media for public expression of various schools of thought on a fair and equitable basis. Therefore the Commission should proceed with caution in exercising its power under the guise of public utility doctrines of regulation." k Need of Uniform Policy Mr. Craven stated that price consideration in excess of tangible property value has repeatedly been before the Commission during the past two years and has been the subject of extensive briefs and oral arguments. He said he regretted the Commission had not yet found it possible to adopt a policy which it could uniformly apply and to which parties may look for guidance for entering upon such transactions. Businesses under private ownership, he said, necessarily change hands from time to time, and in this respect broadcasting is like any other business. He emphasized that the basis on which a business or an interest in it may be disposed of is of tremendous importance to the investor and the Commission's policy "will have a lot to do with attracting or driving away capital and the pioneering spirit in the various fields of radio communication." Commissioner Craven said that several different theories have been suggested as the proper interpretation of Sections 301 and 310 (b) of the Act dealing with transfers. One is that the Commission has no power whatever to take price into consideration and the other is the "bare bones" policy. In the latter Page 46 • November 15, 1938 BROADCASTING • Broadcast Advertising