Broadcasting (Jan - June 1941)

IReduction in Teletype Rates Sought by Transradio Press Files Complaint With FCC Claiming Charges Are Almost the Same as Originally Fixed in 1916 SEEKING sharp reductions in rates for press private-line teletype service, Transradio Press Service Inc. has filed with the FCC a three-count complaint against AT&T and its subsidiary and affiliated i companies. The FCC took prompt ■cognizance of the issue Jan. 14 by approving notices to be served upon the companies with answers ■requested by Feb. 17. Transradio, through W. Theodore , Pierson, former FCC attorney, al, leged that the level of interstate .rates for press private -line tele. typewriter service is unreasonably .high; that the ratio between the 1 charges for 60-word service and i 40-word service is unreasonably ■ high and that the ratio between • the charges for duplex (two-way) and simplex service is unreasonably high. Herbert Moore, president of Transradio, signed the affidavit accompanying the complaints. Rates Filed in 1916 In the first of three counts, the Transradio complaint stated that communications costs constitute between 50 and 70% of the total cost of rendering its news service. Present rates for press private-line teletypewriter ser'vice were established in 1916, it was pointed out, and the only reduction since then resulted from a change in the manner of computing mileage. Contending the demand for news service is elastic and that a lower selling price causes an expansion of the market, Transradio said the lowering of the selling price of news service, which would result from lower communications costs, ' would expand the market to include ,: a substantial portion of nonsubscribers and would increase the ' amount of service taken by sub I scribers. I Transradio asked the FCC to t command the AT&T companies to |; adopt a schedule of charges for 3 press teletypewriter service that ■ would be no greater than 50% of . the charges made for commercial ' private-line teletypewriter service, ' holding that the cost to AT&T of ' furnishing the ser-sace to commer • cial traffic is at least twice as ' great as the cost for press traffic. The second count alleged that the lAT&T tariffs for press privateline teleteletype 60-speed service are unjust and unreasonable. It was brought out that AT&T pro'vides three speeds of transmission for private-line teletypewriter service — 40 words per minute, 60 words iand 75 words. Transradio uses only "the two former speeds. < Transradio said it believed the cost of pro'viding 60-speed service is substantially less than 10% more than the cost of providing 40-speed service. The FCC tariff, it was stated, provides for an average increase of 10% for commercial use of 60-speed over the charge for 40 speed. It also provides for an increase of 25% in the charge for press use of 60-speed over the charge for press use of 40-speed. Transradio recited that 80% of its subscribers use only the 40speed service and that a reduced 60-speed rate would materially increase the use of that service. The revenue from the sale of the service at the reduced rate sought "would be fully compensatory to the defendants", it was held. Duplex Rates The FCC was asked by Transradio to require AT&T to effect a schedule for press private-line teletype'vvriter 60-speed service that will be no greater than 110% of the charges made for 40-speed service. The final count, relating to single and duplex service, under which the AT&T tariff calls for a 25% additional charge for duplex, was held by Transradio to be unreasonable. It said it is prevented from employing duplex service by the "excessive and unreasonable charges" of AT&T companies. Transradio contended that each circuit furnished for single service is capable of rendering duplex service at a negligible increase in cost. The Commission was asked to command AT&T to effect a schedule of charges for duplex service that will be no greater than 5% of the charges made for the corresponding single service. Romanoff on 5 ROMANOFF CAVIAR Co., New York, distributors of French Kettle-Onion Soup, have placed through their newly appointed agency. Piedmont Adv., New York, one-minute twice-weekly spot announcements on WHK, Cleveland; WJR, Detroit; WENR, Chicago; WMAQ, Chicago; WQXR, New York. Company is also sponsoring on the latter station a twice-weekly quarter-hour newscast titled. Tomorrow's Headlines. More stations will be added. Won-Up Discs ENGLEMAN GARDENS Assn., Edinburgh, Tex. (Won-Up grapefruit juice), on Jan. 15 started a series of 48 one-minute transcribed announcements on nine Texas stations including WFAA WRAP KRLD KPRC KTRH KTSA WOAI KGNC KWFT. Transcriptions were cut by NBC, Chicago. Agency is Ruthrauff & Ryan, Chicago. QUAKER CITY Federal Savings & Loan Assn., Philadelphia, started on .Jan. 1.3 a test campaign on WFIL, Philadelphia, of five-minute daily newscasts, vs^ith Al Stevens as announcer. Sponsor is new to radio, and may add more stations if test is successful. Albert Frank-Guenther Law Inc., Philadelphia, is the agency. Mittendorf Leaves WIND E. S. MJTTENDORF, for the last three years general manager of WIND, Gary, Ind., on Jan. 25 will leave his post on advice of his physician, according to an announcement by Ralph L. Atlass, president of the station. No successor has been named but John T. Carey, sales manager of WIND, will assume a portion of Mr. Mittendorf's duties with Mr. Atlass supervising the remainder which will be distributed among a number of persons. Before joining the Indiana outlet as Gary resident manager in 1935, Mr. Mittendorf was for nine years manager of WKRC, Cincinnati. In 1937 he was transferred from Gary to the national advertising office in Chicago and elevated to general manager. Mr. Mittendorf ARMISTICE FOR BALL BMI and ASCAP Stop Firing -For Paralysis Drive BMI and ASCAP last week stopped lambasting each other ■with publicity releases long enough to exchange polite courtesies concerning the broadcasting of music in connection with the celebration of the President's birthday for the benefit of the National Foundation for Infantile Paralysis. BMI gave blanket permission to all non-member stations to use its music on Birthday Ball broadcasts as well as on preceding build-up programs. ASCAP also announced that networks and stations not licensed to play its music might broadcast Birthday Ball programs containing ASCAP numbers without fear of infringement suits. Thus were smoothed out apprehensions arising from the answer to Benny Goodman's request for the President's favorite songs so that he might make special arrangements for the Ball. From the White House came the list: "Anchors Aweigh", "Yellow Rose of Texas", "Boots and Saddles", "Happy Days Are Here Again", "Home on the Range", "Love's Old Sweet Song", comprising three ASCAP and three non-ASCAP tunes. Willys-Overland Spots WILLY-OVERLAND MOTORS Inc., Toledo (American), during January started a national campaign of spot announcements and programs. Time is being purchased through regional distributors throughout the United States with various agencies involved. Thus far the Willys-Illinois Co., Chicago, on Jan. 5 started a weekly half-hour transcribed musical program on WCFL, that city, as well as sixweekly spot announcements. Upon clearance of evening time a thrice■vveekly quarter-hour series with live orchestra will be used. On Jan. 19 a weekly quarter-hour transcribed musical program on WBBM, Chicago, was also started. Scophony Exhibits Video on Screen Mirror Scanning Is Used to Produce Large Images PICTURES 12 x 9 feet in size were witnessed by a group of more than 100 representatives of daily papers and the trade and technical press Jan. 15 when Scophony Ltd. of London presented the first American demonstration of its large-screen television in the company's new New York headquarters at 1 E. 54th St. Images, piped from studios on the same floor as the receiver, were of good general quality, although there was a general expression that more light would have helped, a defect which Scophony engineers attributed to the hastily-assembled temporary studio set-up. Mirror Scanners Demonstration also included reception on a smaller screen, 4x3 feet, suitable for small halls and school rooms, whereas the larger screen was designed for use in theatres. A still larger screen, 18 x 12 feet, had been used in London theatres, it was stated. Images were projected on the screens from the rear by a machine utilizing a pair of revolving mirror scanners which construct the pictures by mechanical-optical methods in contrast to the system generally used in America, which uses a cathode-ray tube to construct the images electronically. A special advantage claimed for the Scophony system is its "storage of picture signals", which enables it to combine a number of picture elements and to present them simultaneously. Solomon Sagall, founder and managing director of the company, explained that whereas a motionpicture machine illuminates the whole picture at once, each part getting the full light of the projection lamp, a television scanner breaks the picture up into thousands of tiny parts, each getting onlv that small fraction of the light source. By its storage method, Scophony enlarges the size of the part illuminated at one time and enlarges also the amount of light on each part accordingly. Plans are under way, Mr. Sagall stated, to form an American Scophony company, to manufacture and sell home rceivers and to make and lease large-screen receiving equipment to theatres, as well as defense instruments which Scophony has been producing in England since the outbreak of the war stopped television broadcasts in that country. Arthur Levey, a director of Scophony although an American citizen, will be active in the American company when it is formed. KWIL, Albany, Ore., on Jan. 15 jeined MBS, the networks 174th affiliate. Monarch Foods Adding REID-MURDOCK & Co., Chicago, (Monarch Foods), has increased the list o fstations releasing its twice weekly 50-woid announcements to 51 stations. Sponsor urges listeners to attend church with no commercial except a courtesy signature^ Starting with two stations late in. November, response has been so. gratifying that stations have been added at frequent intervals. More will likely be added in the future^ Rogers & Smith Advertising Agency, Chicago, handles the account^ iBROADCASTING • Broadcast Advertising January 20, 1941 • Page 45