Broadcasting (July - Dec 1939)

New Organization NAB Sales Managers Reorganize Group Begun at Chicago AndHear Plans for Advertising Bureau By Independents Directors Named with Lafount President, Thomas Secretary ACTING for further unity within the broadcast station field, the National Committee of Independent Broadcasters, meeting in Chicago Sept. 14, voted to reorganize as National Independent Broadcasters Inc. and affiliate with NAB, subject to the approval of that body. With this action NIB follows the lead of the Clear Channel Group and Independent Radio Network Affiliates in enlisting under the Association banner. The new NIBI will be set up as a non-profit organization whose membership will include independently owned and operated radio stations not regularly affiliated with a major network, defined as NBC, CBS and MBS, plus such other stations as are approved bv the board of directors of NIBI. Lafount Named President Officers elected were H. A. Lafount, WOV, New York, president; Edward A. Allen, WLVA, Lynchburg, Va., vice president, and Lloyd Thomas, KGFW, Kearney, Neb., secretary-treasurer. Mr. Thomas' office will be headquarters for the time being. The 17 district directors elected are: Districts 1, Stanley Schultz, WLAW, Lawrence, Mass.; 2, Harold A. Lafount, WOV, New York; 3, Frank Smith Jr., WWSW, Pittsburgh; 4, Edward Allen, WLVA, Lynchburg, Va. ; 5, Maurice Coleman, WATL, Atlanta; 6. Jack Draughon. WSIX, Nashville; 7, Jack R. Howard, WCPO, Cincinnati; 8, James Hopkins, WJBK, Detroit; 9, Ralph Atlass, WJJD, Chicago; 10, Edgar Shutz, WIL, St. Louis; 11, Gregory Gentling, KROC, Rochester, Minn.; 12, K. Pyle, KFBI, Abilene Kans.; 13, James R. Curtis, KFRO, Lonaview, Tex.; 14, Frank Hurt, KFXD, Nampa, Idaho; 15, Arthur Westlund, KRE, Berkeley, Cal.; 16, Leo Tyson. KMPC. Los Angeles; 17, Tom Symons, KXL, Portland, Ore. Membership to NIBI will not be limited to NAB stations, but all board directors and officers are required to belong to the NAB. They will be elected annually at NIBI district meetings. The reorganization embodies dues to be paid by each NIBI station monthly based on annual income after agency commission is deducted. Stations with annual incomes under $20,000 will nay |3 per month; from $20,000 to $30,000, $4 per month; from $30,000 to $50.000, $5 per month; from $50,000 to $75,000, $7.50 per month; from $75,000 to $100,000, $10 per month; $100,000 and over, $15 per month. Reorganization sentiment appeared during the morning session of the NIB meeting, which was attended by about 60 independent broadcasters, many attracted by a letter mailed to each independent station manager Aug. 29 by Mr. Lafount emphasizing the need of unified plans. Near the conclusion of the morning period Mr. Lafount appointed a committee of seven to draw up recommendations for the REORGANIZATION of the NAB Sales Managers' Committee was voted in Chicago Sept. 14. Craig Lawrence, of the Iowa Broadcasting System, retiring chariman of the committee, discussed plans for the coming year and introduced Sam Henry, of the NAB Bureau of Radio Advertising, who outlined the bureau's proposed work. It was agreed by committee members that the NAB executive board be asked for mileage expenses thus giving the Sales Managers' Committee equal status with other NAB committees. Under the rules of procedure, Neville Miller, NAB president, will be asked by Mr. Lawrence to appoint a new chairman who in turn will appoint the members of the Sales Managers' Committee for the coming year. Some districts complained that they had not been well represented in the present committee and a list of possible appointees was drawn up. Department Store Study Mr. Henry, who was recently appointed to the NAB Bureau [Broadcasting, Sept. 1], told of the studies being conducted in the fields of local and national advertising. The study of the use of radio by department stores has been formation and operation of the NIBI. Their suggestions were carried before the afternoon session, and adopted with minor changes, section by section. The committee, headed by Mr. Thomas, included Edward A. Allen, WLVA, Lynchburg, Va., Deitrich, Dirks, KTRI, Sioux City, Iowa, Edgar Shutz, WIL, St. Louis, Arthur Westlund, KRE. Berkeley, Cal., E. A. Alburty, WHBQ, Memphis, Frank E. Hurt, KFXD, Nampa, Idaho. Purposes of NIBI The purposes of the proposed NIBI, according to Mr. Thomas, are not to represent any individual station unless specifically requested to do so, but rather to function on behalf of the entire membership or groups of member's. It intends to work in closest harmony with NAB and to attract non-NAB stations within the Association. The basic duties of the NIBI were described as (1) legal representation with counsel to be retained on behalf of the group, (2) copyright assistance, (3) assisting stations in transcription and record problems, (4) public relations work, (,5) preparation and dissemination of reports on NIBI activities. NIBI dues will be utilized in the performance of these activities, plus others that may be added. A nominal salary to be determined by the board of directors will be paid to the secretary-treasurer. Following completion of its reorganization plans a committee of three members of the NAB Board of Directors appointed at the Atlantic City Convention by Neville Miller, NAB president, will consider its request to affiliate with NAB and report to the complete board for final action. The committee is composed of John Elmer, WCBM, Baltimore, Gene Dyer, WGES, Chicago and John A. Kennedy, WBLK, Clarksburg, W. Va. completed, he said, and will soon be issued to stations at 10c per copy. More than 200 stations have written the bureau for copies of the various studies, he added. He analyzed the sale of local time in campaigns soon to be conducted by the air transport, life insurance and drug industries. An informal bulletin service will soon be started to help stations sell local time, Mr. Henry said. The complete report of Dr. Herman Hettinger, radio advertising analyst of Pennsylvania U., which was discussed at the recent NAB Convention in Atlantic City, will soon be published by the NAB, according to Mr. Henry. The report is an analysis of station sales set-up. Ed Kirby, of the NAB, told the committee of the NAB's work in explaining radio advertising to various national consumer research groups. The U. S. Department of Agriculture is presently investigating consumer groups who have been outspoken against radio advertising and advertising in general, he said. He outlined plans for selling the values of radio advertising to social clubs and various women's organizations. The problem of various companies who insist that local distributors use their funds exclusively for newspaper advertising was discussed by the committee. The NAB Bureau of Advertising is also contacting those advertisers who have insisted on "free offers" privileges on the air, it was disclosed. In the majority of cases these advertisers spend money for newspaper advertising, the committee was told by the NAB representatives. Exorbitant merchandising schemes that some advertising agencies are insisting on, and the problem of too many free announcements were discussed. In addition to Mr. Lawrence, Mr. Kirby and Mr. Henry, those attending the meeting included C. C. Caley, WMBD; Frank Bishop, KFEL; W. R. Cline, WLS; E. Y. Flanigan, WSPD ; Les Johnson, WHBF; Charles Atterbery, KCKN ; Arthur Bright, KFBY; Leonard Reinsch, WHIG. P&G Buys Wester Show PROCTER & GAMBLE Co., Cincinnati, has bought a five time a week serial program titled The Right to Happiness, produced by Carl Wester Agency, which is reported to start on NBC-Blue Oct. 16 in the 11:15 a.m. period now occupied by Vic & Sade for Crisco. Kansas City Star "Don't bother me noiv, Ed — DiMag(iio is up ivith the hases loaded!" MPPA Test Suit Planned by NBC Thesaurus Subscrihers May Continue to Use Service A TEST suit to clarify the relation between music publishers, recording companies and broadcasters will be started shortly between NBC and one of the publishers represented by Harry Fox, former manager of the Music Publishers Protective Assn., an agent for most MPPA publishers in handling recording rights. Announcement of the suit was made by NBC Sept. 15 following seven days of negotiations between Mr. Fox arid A. L. Ashby, general counsel of NBC. Until the suit has been settled, subscribers to NBC Thesaurus library service may "continue playing Thesaurus selections on sustaining or sponsored programs as heretofore". The dispute between NBC and MPPA is based on section le of the Copyright Act, the section on compulsory licensing which says after a publisher gives permission to record a number to one record manufacturer, he must give it to all such manufacturers at a price not to exceed 2c a side. NBC is questioning the right of a publisher to charge more than the stipulated 2c, a trifling sum in comparison with the present charges by transcribers. Rescinds Warning When no agreement had been reached in the two months following the expiration of NBC's contract with MPPA on June 30, Mr. Fox on Sept. 8 notified all Thesaurus subscribers that to continue to play those transcriptions which contained numbers belonging to a publisher would lay the stations open to infringement suits. On Sept. 14, following the agreement to hold a test suit, Mr. Fox wired all such stations rescinding his letter. Details of the suit have not yet been decided. NBC can record a number without permission and be sued by the publisher as was done in the Harms vs. RCA case currently in the courts, or NBC may start action for a declaratory judgment to get a decision on the point of law. NBC contends only a few hundred selections actually are affected, it was stated, since NBC Transcription Service still has individual contracts with many of the publishing houses covering their selections. NBC Has Been Protesting It was asserted that for the last five years, NBC transcription officials have protested the MPPA recording fee charges, challenging their legality, but that upon insistance of the licensors, an adjudication had been postponed. With the growth of library services, substantial sums now are involved in these payments, amounting to approximately $60,000 in the case of Thesaiirus. Because of MPPA's close affiliation with ASCAP, some significance was attached to the fact that the summary notice to stations came on the eve of the special NAB convention on copyright in Chicago. Page 12 • September 15, 1939 BROADCASTING • Broadcast Advertising