Broadcasting (Jan - June 1939)

REVISED COUNSEL table lineup for the FCC as the Network Inquiry began its fourth month saw S. King Funkhouser (center), recently appointed special counsel, flanking George B. Porter, assistant general counsel (left) and DeQuincy V. Sutton, head accountant. would not be loaded with the fixed contributions toward the network's maintenance. While MBS operates on a nonprofit basis, and therefore would not be subject to payment of Federal income taxes, it was assessed on taxes on its 1938 returns because of the existence of a reserve account maintained for reduction of expenses. The sum on which taxes were paid amounted to approximately $31,000, he said. Participating Groups And Operating Expenses The six participating stations and groups (WOR, WON, CKLW, United Broadcasting, Colonial and Don Lee) contributed during 1938 an aggregate of $200,863.11 for operating expenses, Mr. Lamphiear disclosed in describing an exhibit. In addition there was approximately $58,000 represented by funds recovered from revenue accruing to the participating stations or a total of $258,960 contributed by these stations for operating expenses during the year. This table showed that WOR and WGN each contributed $38,801 for that purpose; Don Lee, approximately $36,000; Colonial, $35,571; UBC, $32,646, and CKLW, approximately $19,000. In breaking down the cost of basic wire lines, which aggregated $506,356.87 for the calendar year, Mr. Lamphiear brought out that WGN and WOR contributed identical amounts of $68,479.87; Don Lee, $84,009.58; CKLW, $36,813.31, and UBC, $6,408. Colonial did not contribute, sinee it pays its own wire costs. Affiliated stations contributed $152,046.24 while contriibutions on basic lines from other jthan radio stations represented ,'$25,334. The balance of $64,786 was that recovered from revenue I accruing to the underwriting on iparticipating stations. Balance Sheet of Network Reviewed I Mr. Lamphiear brought out that if the participating stations paid on the same basis as affiliates, or on the average of 15%, toward the maintenance cost of the network, their contributions would be substantially lower. Don Lee, for ex I ample, instead of contributing a figure of $128,948, would have paid about $38,000 on the 15% basis; WOR, about $58,000 in lieu of $120,828, and WGN, about $33,000 instead of $114,765. Thus, it was brought out, the actual member stations bear about 3% times the amount of expense as compared to affiliates. Total assets of MBS at the end of 1938 aggregated $273,677.82, according to the network's balance sheet. In 1937 the figure was $181, i939; in 1936 it was $154,773; in 1935 it was $98,515; in 1934, $23,000, and in October, 1984, when MBS began business, the total assets were $1,000. In a statement of revenue and [expense, it was shown that the net I revenue from time charges billed I on MBS invoices aggregated $717,586.90 in 1938. Wire charges rep ! resented $416,000 of this amount, operating expenses approximately $201,000 and sales commissions approximately $100,500. A breakdown of hours of broadcast commercially fed to the network for Sept. 1, 1937 to Aug. 31, 1938 showed a total of 4,890 1/2 commercial hours. Of this amount, 1,277 hours were fed to other regional networks; 3,078 hours to affiliated stations, and 533 hours to stations temporarily affiliated with the networks. WGN carried 471% total commercial hours during the fiscal year; WOR, 38278 hours ; CKLW, 2741/2 hours; WFIL, 256% hours; WCAE, 227% and KWK 182 1/2 hours, constituting the leaders in the individual station field. Among the networks. Colonial carried 372% hours; Don Lee, 36514 hours, and UBC, 169 hours. Threefold Objective Is Cited by Fred Weber To start the Feb. 9 session, Mr. Caldwell called Fred Weber, MBS general manager, to the stand, with S. King Funkhouser, recently appointed special counsel, relieving Mr. Porter as Commission counsel. Explaining that as general manager of the network he was responsible to the officers and directors as well as the participating members, Mr. Weber outlined a threefold network policy: Providing advantages of network service on a nationwide basis with maximum independence for participating stations; operating on a nonprofit basis, and providing the greatest amount of revenue and the best programs available. Program policies of the network G. A. R. Guaranteed Available Response . . . there's a new term for Radio (or for any medium — what?). Meaning is — the actual buying potential for your product alone which the audience to a specific program, now on the air and available for sponsorship, has. The Program is "Marriage License Romances". Quin Ryan interviews altar bound couples at Chicago's City Hall and it comes to KWK through the Mutual Broadcasting System every Monday, Wednesday and Friday from 2 to 2:15 in the afternoon. If an entire family can consume $28 worth of your merchandise in a year (surely they can!) — the G. A. R. of this program is One Million Dollars. That's a fair increment to add to any bank balance! Furthermore, there is no concurrent program on any St. Louis Station with a G. A. R. quite so large. Statistics are crouching in any Raymer office, and in our own. to spring with affirmation upon interested time Buyers. KWK THOMAS PATRICK, INC. HOTEL CHASE ST. LOUIS Representative PAUL H. RAYMER CO. New York Chicago San Francisco BROADCASTING • Broadcast Advertising February 15, 1939 • Page 75