Broadcasting (Jan - June 1940)

PLANS for women's participation in the New York World's Fair 1940, opening May 11, were discussed with women radio commentators recently at a luncheon in the Empire State Club, in New York. The luncheon was given in honor of Mrs. Oswald B. Lord (second from right), chairman of the national advisory council on women's participation in the Fair, and Miss Mary Lewis, (second from left), the Fair's fashion director. Shown chatting at the luncheon are (1 to r) Adelaide Hawley, CBS; Miss Lewis; E. Frederica Millett, of the Fair's department of radio and television; Mrs. Lord, and June Hynd, who served as NBC representatives. Recording Victory Is Hailed by NIB Shows Cooperation Benefits, Declares Lloyd Thomas ACTION of the major phonograph record companies in dropping plans to ban or license broadcast stations for performance of recordings was hailed as a victory for independent stations by Lloyd C. Thomas, secretary-treasurer of National Independent Broadcasters Inc., in a letter April 20 to independent stations. Cancellation by RCA of its monthly license plan, which meant an average monthly payment of about $167 per station, along with announcements by Decca and Columbia Recording Corp. that their records could be performed until further notice without fear of action [Broadcasting April 15], grew out of a combination of circumstances, it was indicated. Totally aside from the opposition of the broadcast industry, prospects of prolonged litigation in the Whiteman case, plus the opposition of recording artists to a ban on radio performances, contributed to the decision. Moreover, after Decca and Columbia announced that stations could perform their records without fear of legal reprisals, RCA found it expedient to drop its licensing plans and to refund all money paid it by stations. CRC had not restricted performances of its records but the Decca and RCA actions were reversals of policy. Hailed as Victory Mr. Thomas attributed the action to the "persistent untiring efforts" of President Harold A. Lafount of NIB and called it "a real victory for the independents", as the largest users of phonograph records. "This shows what can be done by effective cooperation through an organization like NIB as the national representative for the independent stations," he said. Another observation of Mr. Thomas, who manages KGFW, Kearny, Neb., was that undotibtedly the work done by President Lafount and NIB Counsel Andrew W. Bennett "had considerable to do with the recent offer of ASCAP to the industry in which the independent stations were offered a considerable concession as compared with past license charges." He added there is no doubt that any deal made by the industry with ASCAP "will include a fair and equitable rate to the independents". Discussing other activities of NIB, including FCC regulatory affairs, Mr. Thomas said plans are being considered for an annual convention of independents to be held this summer, probably in Chicago. All independent stations will be invited to discuss industry problems. One matter requiring action will be the AFM national agreement for employment of union musicians. The present agreement of independent stations is due to expire in September. Stations were asked to advance their ideas about the annual meeting, the dates they would prefer and their ability to attend. NIB is soliciting membership among some 400 independent stations. Record Hearing Set ARGUMENT on the appeal of National Assn. of Performing Artists (acting for Paul Whiteman), RCA Mfg. Co. and the NAB (acting for WNEW) from the decision of the Federal District Court in the RCAWhiteman-WNEW case will be heard in June by the Circuit Court of Appeals in New York. Attorneys representing the three parties appeared before the Appellate Court justices April 19 and requested that their arguments be heard during the three-week session beginning June 3, to which the court agreed, placing the case on the calendar for that term. Transcripts of record and appellants' briefs were filed by all attornyes on April 12; appellees' briefs are due by May 11, and reply briefs by May 28. The Broadcast Day AMENDMENT of broadcast rules whereby the broadcast day will begin at local sunrise rather than 6 a. m. local standard time, was authorized April 13 by the FCC. The change in rules will permit stations to begin regular operations earlier during the summer months but will mean a later start in the winter, when the days are shorter. Stations using a differential in day and night power, under the revision, can start with their day power at sunrise rather than 6 a. m., it was explained. However, in the winter, the same rules will prevail and it will mean a later start with their higher day powers because of the sunrise variation. In the past, it was said, some interference has been experienced as a result of use of daytime powers before sunrise. The rules, changed to become effective immediately, are Sections 3.6, 3.8, 3.9, 3.10, 3.23(c), 3.79, and 3.84. Amos 'n' Andy Renewed CAMPBELL SOUP Co., Camden, N. J., has renewed its contract with Amos 'n' Andy on CBS for a 31/2year period as of Jan. 1, 1941, expiration date of the present contract. Program is heard on 59 CBS stations, Monday through Friday, 7-7:15 p.m. with a rebroadcast at 11 p.m. Ward Wheelock Co., Philadelphia, is agency. The comedy team is starting its 13th year of continuous network broadcasting, and, according to a CBS estimate, reaches a weekly audience of approximately 50,000,000 listeners. When Amos 'n' Andy was created on March 19, 1928, it was the first quarter-hour serial to be broadcast on a network Mondays through Fridays. SAVED SyMPHONY Rosenbaum Mediates Dispute In Washington CREDITED with saving Washington's National Symphony Orchestra, Samuel R. Rosenbaum, president of WFIL, Philadelphia, and chairman of IRNA, in mid-April settled a musicians' union squabble with the Symphony Association which threatened the continuing existence of the orchestra. With negotiations between the association and the AFM local on next season's wage scale deadlocked for three months, Mr. Rosenbaum was called in by Dr. John Steelman, of the U. S. Labor Conciliation Service, after all other efforts to mediate had failed. His compromise proposal was accepted within a week by both sides. Mr. Rosenbaum was chairman of the IRNA committee that negotiated the musicians' agreement in 1937 which averted a threatened nation-wide radio strike. As a tribute to his ability as a negotiator, IRNA elected him chairman at the Chicago organization meeting last September. Joseph L. Miller, labor relations director of NAB, arranged for Mr. Rosenbaum's intervention in the symphony dispute. Incidentally, it was Broadcasting's biography of Mr. Rosenbaum in the May 15, 1938 issue that sold the Symphony Association on Mr. Rosenbaum as a mediator. New Vitamin Series SANTA ANA VITAMIN Co., Santa Ana, Cal. (powdered vitamin), new to radio, in a 52-week campaign started April 15 is using twice-weekly participation in Norma Young's Happy Homes and Mirandy on KHJ, Los Angeles. Firm is also using weekly participation in Eddie Albright's program on that station, six weekly in Rise & Shine on KOY, Phoenix. Other stations will be added as markets are established. Glasser Adv. Agency, Los Angeles, has the account. Eno Discs on 10 J. C. ENO U. S. Ltd., New York, on April 22 started a series of oneminute announcements transcribed by NBC Radio-Recording Division in the interests of Eno Fruit Salts on KHJ KFRC KTSM WFIL WCAE WJJD WXYZ WGAR KPRC WDSU. The company is continuing the daily five-minute transcribed announcements started April 15 on WOR, Newark. Atherton & Currier, New York, is agency. License Expenses Ruled Deductible Held Necessary to Business In Revenue Bureau Opinion EXPENSES incurred by broadcasters in connection with applications to the FCC are deductible expenses for Federal income tax purposes for the year in which paid or accrued, accoi'ding to a ruling announced in mid-April by the Bureau of Internal Revenue. The ruling followed a request made late in March by Russell P. Place, as NAB counsel. Answering Mr. Place's letter, J. Mooney, deputy commissioner of the Internal Revenue Bureau, stated: "The facts, as stated by you, are as follows: 'Such expenses include legal fees, engineering fees, travel and clerical expenses, etc. Such applications may be for a construction permit for a new station, for an increase in operating power of an existing station or for an increase in hours of operation of an existing station — in any case, having to do only with the terms of a license from the Commission looking to bi'oadeasting operations on an assigned frequency for a limited period of time. Licenses are at present issued for one year, but may be issued for a maximum of three years, are revocable for cause, and grant no property rights in the frequency assigned.' "Section 23 (a) of the Internal Revenue Code (53 Stat., Part I) provides for the deduction from gross income in computing net income for Federal income tax purposes of all ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business. In order to secure a license to engage in the business of radio broadcasting an individual is required by law (Title 45, Chapter 5, section 308, U. S. Code) to make application to the Federal Communications Commission for a permit. Inasmuch as you state that the licenses are only issued for one year, it is the opinion of this office that ordinary and necessary expenses incurred in connection with securing the licenses constitute deductible expenditures for Federal income tax purposes for the year in which paid or accrued." THE April 1 Broadcasting, through an inadvertance, reported that Mayor Ralph L. Lewis, of Goldsboro, N. C, had applied to the FCC for a new local station on 1370 kc. The city should have read Greenshoro. Broadcasting regrets the en-or. Page 42 • May 1, 1940 BROADCASTING • Broadcast Advertising