Broadcasting (July - Dec 1939)

IndustryAchievementsPraised By Miller in Reviewing Record Urges Aggressive Front to Meet Groups Seeking to Exact Tributes From Broadcasters "WITH A RINGING address, hurling defiance at "self seeking groups who come from the outside seeking plunder" and praising radio's accomplishments during the last year, Neville Miller, NAB's first paid president, made his debut July 11 before the membership of the NAB at its annual convention in Atlantic City. Declaring the time has come when the industry must make its stand and "see the battle through", Mr. Miller gave to the membership an accounting of his stewardship during the last year. He cited the progress made by the reorganized trade association, asserting that a solid foundation had been laid, and he commended the work of his department heads, all of whom also started from scratch with the reorganization effected by action of the last convention in Washington in February, 1938. Eighteen months ago, Mr. Miller recalled, the industry "was torn asunder by internal troubles". Today it has a membership of 422 stations and is truly representative of the industry and can speak for it, he observed. He expressed the hope that the industry, through NAB, can sit down with, the Govenrment and across the table discuss the industry's problems. The recent action of the FCC in extending licenses to one year, he said, are indications that "we are at last about to find the stability so vitally needed by American radio; that vague fears and shadowy intimidations will once and for all be removed from this industry; that we shall be accorded the same confidence by the Government itself as is already accorded us by the public itself." A Call for Action Mr. 'Miller called for convention action on both program self-regulation and copyright. As chairman of the respective committees handling these white-heat problems, he presented their reports in detail at subsequent convention sessions. In talking of the code, he declared that failure of the industry to set in motion self -regulation in the industry "will strengthen the demand of those favoring governmental regulation of programs and will stimulate the confidence of those within the industry who believe they can operate their stations without concern for the best interests of the industry as a w^hole". Every violation of program ethics by the few brings condemnation down upon the heads of the majorT ity, he declared. In advocating action against self-seeking groups for which radio has been the target on the mistaken ground that the industry is "rolling in riches", Mr. Miller referred to the editorial in the July 1 issue of Broadcasting recounting percentages and tributes paid by stations which total 479J: of their rate before taxes. After quoting from the editorial, Mr. Miller commended its "serious consideration by every member of this industry, as well as those outside the industry, who seek to devise ways and means to exact further tribute from us." "I believe the time has arrived when we can no longer continue to fight a long series of rear-guard actions attempting unsuccessfully to halt a steady advance of increasing demands," he asserted. Mr. Miller made a plea for cooperation and confidence, in opening his address. He struck at loose talk and urged that the procedure be one under which qualified industry representatives in their negotiations "may enjoy a certain secrecy of movement", and "not be required that every step which they propose to take, every move they propose to make, be exposed to unfriendly eyes and exploited during the early stages of the negotiations." Legislation, labor problems, legal department operations and litigation, public relations, research activities and engineering all were reviewed in the NAB executive's report. Mr. Miller commented on radio's brilliant accomplishments during the last year in program NEVILLE MILLER pursuits and in public service. Pointing out that commercial radio is 17 years old and that during at least half that time American business has been depressed, he cited the remarkable showing of the industry economically. The American people have invested the fabulous sum of some 4% billion dollars in receivers, and 84% of all American homes now have sets. NAB Groups Report Progress; Budget Is Highest in History Some $250,000 Spent, With $50,000 Balance; Departmental Achievements Are Reviewed WITH A BALANCE as of June 30 of approximately $50,000, the NAB during its first fiscal year of operation as a reorganized association disbursed approximately $250,000, or more than double its disbursements of any preceding year. Operating under the new method of payment of dues devised by the last convention in Washington in February, 1938, the financial statement covering the intervening 16month period showed aggregate receipts of more than $300,000, according to the annual report of Edwin M. Spence, secretary-treasurer. Total expenses aggregated $248,178 and cash on hand as of June 30 amounted to $52,556. The largest single item of expense was $81,537 for salaries. Legal, engineering and accounting fees amounted to $33,820 and printing $25,635. Traveling expenses aggregated $17,239; expenses of committees, $14,206; miscellaneous expenses, $13,589; board of directors meetings, approximately $12,000; rent, $7,798; general hearings, $7,318; NABRMA promotional expenses, $8,500; furniture and fixtures, $6,244; postage, $5,651. Mr. Spence's report revealed that on Feb. 12, 1938, when the last annual convention began, the NAB had 417 members. The association now^ has 422 active members and three associates, he declared. Of the aggregate membership, 256 stations were network affiliates and 159 independent stations, constituting 60 9f of all operating commercial stations in the country. LABOR RELATIONS reducing friction to a minimum." Pointing out that the present agreement between network affiliates and the American Federation of Musicians expires Jan. 12 and that with the independent stations expii-es May 6, Mr. Miller said that members of the NAB Labor Committee already are giving attention to this matter. The committee plans to meet soon to determine NAB policy and to prepare for negotiations well before the expiration dates. The pacts involve expenditures by stations of a fixed percentage of their income for staff musicians as a means of alleviating the AFM unemployment problem. AFRA Negotiations The status of industry negotiations with American Federation of Radio Artists was reviewed by Mr. Miller, who observed that apparently this organization intends to confine its efforts "for a while" to the major markets. The only city other than key points in which AFRA has an agreement is in Racine, Wis., he pointed out. Activities of the International Brotherhood of Electrical Workers and of the Amei-ican Communications Assn. among technicians were re\'iewed, along with other union activities. Also covered was the applicability of the Wage & Hour Act to the broadcasting industry, and it was pointed out that principal problems arising out of the Act have resulted from the overtime compensation section. Mr. Miller estimated that more than 200 broadcasters have obtained the NAB Labor Department's assistance in applying the Wage & Hour Act to their employes. The "remarkable record" of the NAB in its labor relations was recounted in the report of Joseph L. Miller, director of labor relations. Only two complaints of Wagner Act violations have been filed with the National Labor Relations Board against NAB member stations and both were settled "out of court", he pointed out. Asserting that few other industries have as clean a slate on compliance with the Wagner Act, he added that there has not been a single strike or lockout in the industry during the year. Holding that all in all, the relationship between the broadcasting industry and labor is most amicable and that a continuation of the present progressive policy will keep it so, Mr. Miller recited a series of instances in which his work has assisted materially in "fostering this friendship and m RESEARCH Paul F. Peter, NAB director of research, in his report pointed out that during the past year he has spent considerable time and effort in establishing accessible files and library facilities for research material and other basic facilities for the efficient performance of his duties. Because the principal work of the research director will always be concerned directly with the broadcasting industry, he said a very complete file of basic information for each station licensed or granted a construction permit by the FCC is being kept current with Commission action. Reviews Questionnaires A review of questionnaires dispatched by the NAB to stations — covering copyright, motion picture, engineering, law court broadcasting, alcoholic beverage advertising and Independent Radio Network Affiliates — was embodied in Mr. Peter's report. The results of these questionnaire studies, despite the burden on stations, proved most useful in handling these immediate problems. Mr. Peter said. Finally, Mr. Peter recommended reinstatement of the NAB Business Index sho\\ing monthly dollar volume of the industry, which was discontinued in 1937. He declared that many inquiries are received for in {Continued 07i page 44) ! BROADCASTING • Broadcast Advertising July 15, 1939 • Page 23