Broadcasting (July - Dec 1939)

Chicago AFRA Negotiations Continue as Accord Is Sought Agency Broadcaster Group of Six in Charge; KMOX and AFRA Finally Reach Agreement CHICAGO chapter of AFRA and the combined committee of broadcasters and advertising agencies failed to agree on a code for local commercial programs after an allnight session July 8, adjourned for the NAB convention until July 13, and had reached no agreement as Broadcasting went to press. Following the threat of an AFRA strike [Broadcasting July 1], negotiations were continued under a newly-formed committee of six agency representatives and six broadcasters. Spearhead of the disagreement is that the differential between the AFRA network commercial code and the proposed local commercial code is not great enough to satisfy Chicago agencies and broadcasters. A particular point of disagreement is the rate AFRA is understood to have proposed for station break and spot announcements, $7.50 per announcement. The Combined Committee of Broadcasters and Advertising Agencies includes Sidney N. Strotz, manager of NBC Chicago (WMAQ, WENR), chairman; Glenn Snyder, WLS; Robert Brown, WBBM; E. W. Wood Jr., WGN; Ralph L. Atlass, WJJDWIND; W. E. Hutchinson, WAAF; Edward Aleshire, Benton & Bowles; L. D. Milligan, BlackettSample-Hummert; R. J. Scott, Schwimmer & Scott; Walter E. Smith, Rogers & Smith; E. Sonderling. United Broadcasting Co.; Frank R. Steel, McJunkin Adv. Co. KMOX Settlement Settlement of the long drawn out negotiations between AFRA and KMOX, St. Louis, was reached in New York July 7, when an 18month contract covering talent employed at the station was signed by Emily Holt, executive secretary of AFRA, and Mefford R. Runyon, CBS vice-president, representing KMOX, which is a CBS owned and operated station. Contract covers all actors, singers, announcers, continuity writers, special program announcers and news writers employed at KMOX on both local and network programs, whether sustaining or commercial, and is said to be the most complete contract AFRA has negotiated. Exact terms were not disclosed, but it is understood that the rates for both commercial and sustaining network programs originating at the station are about 20% below the national rates and that the scale for local programs is proportionately lower than that in effect at the key network points (New York, Chicago, Los Angeles and San Francisco). It is estimated that acceptance of the contract will increase the KMOX overhead by something more than $20,000 annually. Contract was signed only after negotiations lasting for several months and carried on both in St. Louis and New York. Similar ne gotiations for talent employed at WKRC, CBS m. & o. outlet in Cincinnati, are now under way, with Maj. James P. Holmes, AFRA's traveling representative, conferring with the station management and Mrs. Holt dealing with CBS executives in New York. George Heller, assistant executive secretary of the union, is carrying on negotiations with non-network stations in New York, and local AFRA officers are also working on independent stations in other cities, with the object of having the broadcasting industry completely organized before the summer of 1940, when the first AFRA contracts reach their expiration dates and come up for renewal. Limited to Two Years So far the union has signed no contracts for more than two years, on the theory that in such a rapidly changing business as radio it is unwise to be bound by long-term contracts and furthermore that these first contracts are in the nature of an experiment for both sides. It is expected, however, that when the present contracts expire the broadcasters will insist that the renewals be drawn up on a five or ten-year basis, to enable them to plan ahead with a reasonable assurance that their overhead will not be radically changed during the year. The national AFRA commercial contracts, covering terms and conditions of employment of actors, singers and announcers on network sponsored programs, has worked out surprisingly well, Mrs. Holt stated, pointing out that the recent all-time highs in netwoi-k billings furnished substantial disproof of the prophecies that these contracts would result in driving national advertisers from radio into other media. From the AFRA viewpoint the contracts have proved a spur to membership, which now exceeds 8,000 persons, she said. USED TO strange sights, Atlantic City boardwalk strollers all the same jumped in their boots as they sighted Sax Rohmer's bogeyman, Dr. Fii Manchu, who is now on the airlanes via Radio Attractions transcriptions. AFRA Pact on Coast AGREEMENT on new commercial regional wage scales and working conditions for Pacific Coast radio artists, announcers and sports commentators, has been reached by West Coast advertising agencies and the American Federation of Radio Artists. Committees from both meeting in Hollywood in early July made certain concessions agreeable to all, but major rates originally submitted to the former group are reported to remain substantially unchanged [Broadcasting, July 1]. Negotiations on local rates, it was said on July 11, will start soon as the agency committee headed by Naylor Rogers, executive of Raymond R. Morgan Co., Hollywood, and that of Los Angeles Chapter, AFRA, headed by I. B. Kornblum, executive secretary, iron out details of the regional scales and prepare the agreement for signing. Referee for AFRA-NBC AFRA's dispute with NBC over payment of commissions to the network's Artists Bureau, on contracts covering employment of an artist on a sustaining program at the minimum wage permitted by the AFRA sustaining code, is now in the hands of referees of the American Arbitration Association. Case was argued and briefs filed July 10 under terms of the AFRA-network agreements, and a decision is expected in about two weeks. It was also reported in New York that negotiations between WINS and the American Federation of Radio Artists for a renewal contract are reaching their final stage. Virginia Local Sold JOHN F. ARINGTON Jr., formerly with WIOD, Miami, and Mrs. Arington this month took over control and management of WCHV, Charlottesville, Va., having purchased the 61% interest held by Mrs. Hugh M. Curtler, wife of the station's general manager. Mr. Curtler, who has left the station, said the purchase price was $16,500. KELLY BEVERAGES, Stanhope, N. J. (Kel-Kola) has named Croyden A.dv. Agency, IS'ew York, to handle its account and plans to use radio in the autumn in New York and Philadelphia. Wise Siraoniz SIMONIZ Co., Chicago (automobile cleaner and wax), has renewed its Sunday morning half-hour show on WMAQ, that city, for another year making the sixth consecutive year of broadcasts on WMAQ. The firm started its radio advertising on the old KYW when Paul McClure, now assistant sales manager of NBC Chicago, announced the show and gave bang-up commercials. Elmer Rich, president of Simoniz, recently said that "four years of constantly driving home the idea 'Motorists Wise Simoniz' have proved that it pays to entertain the millions who listen to WMAQ." George H. Hartman & Co., Chicago, handles the account. Met Policyholder Seeks , To Restrain Broadcasts JUSTICE Frank E. Johnson, of J Brooklyn Supreme Court, on July i 13 ordered the Metropolitan Life Insurance Co. to show cause July 18 why a temporary injunction | should not be granted restraining it from continuing its Edwin C. Hill broadcasts on WOR, WHN and WNEW, New York. I The action was brought by Lawrence Shay, policyholder, who charges that $100,000 has been spent "excessively" for the broadcasts. He says the money should be used to reduce premiums to policyholders. G e 0 r g e Schnapp is Shay's attorney. Gruen Plans Programs I GRUEN WATCH Co., Cincinnati, has increased its advertising ap j propriation for this fall to intro |l duce three new lines of watches ■ and will offer seven different tran a scribed programs to dealers for a I cooperative campaign on local sta I tions. Built on the theme "Gifts | From Your .Jeweler Are Gifts at I Their Best," six quarter-hour programs and one five-minute program will be fui-nished free of charge to i jewelers complete with commercials and suggested publicity tieups. McCann-Erickson, New York, is the agency in charge. Nunn Plans Network PLANS for a regional network of i Southern stations, to be affiliated i with MBS, were tentatively completed during the NAB convention under the leadership of Gilmore N. Nunn, president of WL\P, Lexington, Ky., who vdth his father also has an option to purchase WCMI, Ashland, Ky. As the convention closed, four stations had agreed to proposals to join the group, with additional stations in five important Southern markets under consideration. Stations already selected, besides WLAP and WCMI, are WSIX, Nashville, and WGRC, New Albany, Ind. A national representative will be appointed following completion of negotiations with MBS. The network is tentatively scheduled to begin operation Sept. 24. Ex-Lax Starts on 50 EX-LAX MFG. Co., Brooklyn on July 10 started a summer campaign of 11 weeks with three announcements a week on 50 stations. Agency is the Joseph Katz Co., New York. Tests in Roanoke FLODENT PRODUCT Co., New York (liquid dentifrice) has named Street & Finney, New York, as agency. The firm is now testing a program on WDBJ, Roanoke, and may expand if the campaign is successful. WGNY, Newburgh, N. Y., now a Mutual outlet, is now operating on its new 1220 kc. frequency with 250 watts until local sunset. Headed by Peter Goelet, owner and manager, its executive staff comprises Richard Crans, program director ; Joseph Rake, acting sales manager, and Patrick Simp.son, chief engineer. i R. B. SEMLER & Co., New York' (Kreml hair tonic) starts Gabriel Heatter two quarter-hours a week on WOR, New York, beginning Oct. 4. Erwin Wasey & Co., New York, is agency. Page 18 • July 15, 1939 BROADCASTING • Broadcast Advertising