Broadcasting (Jan - June 1941)

Revised MBS Contract Form Is Granted Approval of FCC Said to Comply With New Network Regulations; Placed in Senate Committee's Record GRANTING what was regarded in some circles as a declaratory ruling, the FCC majority in an unprecedented action last Tuesday gave its approval to a proposed affiliation contract form developed by MBS for use in its dealings with MBS affiliates under FCC monopoly regulations. Approval of the proposed form was voted by Chairman James Lawrence Fly, Commissioners Thompson, Payne and Wakefield, with Commissioners Case and Craven dissenting and Commissioner Walker not participating. Although it was emphasized that the FCC did not formally pass upon the validity of the contract form, and that continuing study will be given to developing network-station relations under such contracts, it was held that the new form, as the FCC understood operations intended thereunder, will comply "with the letter and spirit of the regulations". In Hearing Record When a copy of the new form was introduced into the record at the Thursday morning session of the Senate Interstate Commerce Committee's hearings on the White Resolution, it created a flurry of excitement, especially among representatives of the other networks. The move was interpreted by many as another attempt by MBS to grab the ball in an effoi-t to show that network operations would be feasible under the FCC'y network regulations. The contract form, which was approved by MBS stockholders last Tuesday night at the stockholders' meeting in New York, is described as non-exclusive, containing no provision for option time, providing opportunity for stations to determine network affiliation at yearly intervals, and insuring station responsibility in selecting and rejecting programs. The dissent of Commissioners Case and Craven held that the FCC was exceeding its authority in giving tacit approval to the MBS contract, citing the Supreme Court opinion in the Sanders Bros, case that the FCC should have nothing to do with the actual business operations of broadcasting. According to an analysis of the proffered contract form developed by the FCC legal department, no provision is made in the agreement for penalizing affiliates for broadcasting programs of any other network. Under terms of the agreement, both the network and affiliated stations are to publicize each other, although this does not prevent the station from accepting programs from a competing network, the law department reported. The new form also provides that Page 10 • June 23, 1941 affiliates will not discriminate against MBS in acting on requests for the same period of time as other networks, and the station will adhere to a first-come-first-served principle, it was stated. Under terms of the agreement, affiliates would have first call on MBS commercial and sustainin-^' programs in the community served bv each affiliate. It was also provided that stations may carry commercial programs, via transcription, at a substitute time if an arrangement can be reached satisfactory to the station, the network and the advertiser. The network and the station concerned may mutually decide on the matter of carrying transcription of network sustaining programs, but if the available time is not satisfactory, MBS may off'er the program to another station, although the affiliate may recapture the broad(Continued on page 51) AFRA Announcers Strike at WKRC CLIMAXING a 15-month controversy between the union and the station, four announcers of WKRC, Cincinnati, all members of the American Federation of Radio Actors, walked out on strike Friday morning. Although a picket line was maintained at WKRC studios, station operations continued uninterrupted, according to Hulbert A. Taft Jr., general manager. "We haven't lost a minute, and we haven't lost a show or a client so far," Mr. Taft advised Broadcasting. "I think the situation is well in hand." According to Mrs. Emily Holt, AFRA executive secretary, who has been in Cincinnati participating: in negotiations, this is the first AFRA strike against a station. Observing that negotiations have been going on since May 10, culminating in a 14-day session, Mrs. Holt emphasized that it was "not an outlaw strike". The four AFRA members of a staff of 18 went on strike at 6 a.m., demanding a closed shop and minimum contracts of $50 per week for announcers, $35 for actors and singers. A small picket line was formed with the aid of AFRA members from other Cincinnati stations and the local union, it was reported. One replacement was hired immediately, and others are being considered, Mr. Taft declared. The 14 other employes are affiliated with an independent union. Radio Artists Assn., which recently petitioned the NLRB for an immediate election to determine union representation [Broadcasting, June 9]. WOX, Chir-aco. joinod WOR, NewYork, imd f'RS [Bkoadcastino, .Tunp Ki I in cstiililishiiiK a policy of admiltinK all service men in uniform to lu'oa (leasts. Norwich Yankee Test NORWICH PHARMACAL Co., Norwich, N. Y., on June 30 will start What Burns You Up in the interest of Pepto-Bismol on four Yankee Network stations : WNAC, Boston; WTIC, Hartford; WTAG, Worcester, and WEAN, Providence. Program has members of the audience relate pet peeves and embarrassing moments for cash prizes. Frances Ott is m.c. If successful, program will probably go network in the fall, according to Lawrence C. Gumbinner Adv. Agency, New York. GRANT PURCHASES AGENCY IN MEXICO PURCHASE of General Compania Annunciadoes, S. A., Mexico's oldest and largest advertising agency, with offices in Mexico City and Monterey, by the Grant Adv. Agency, was announced in Chicago June 18 by John C. Morrow, executive vicepresident of the Grant company. Renamed Grant Advertising, S. A., its main office will be in the Guardiola Bldg., Mexico's largest building, where an entire floor has been taken. David W. Echols, formerly vicepresident in charge of Grant's office, will be president of the Mexican affiliation. No staff changes are planned. The Mexican agency has billings of $500,000 annually. The majority of its clients are large American concerns with Mexican offices. More than ever before, Grant Adv. S. A. will promote radio. Already market, station and program surveys are under way. This, according to Mr. Morrow, has never been done in Mexico. First results on program popularity show an amazing likeness to those in the United States, with quiz and variety shows ranking high. Will C. Grant, president of the Chicago agency, is currently in Mexico City, and will return soon. Mr. Morrow was formerly vicepresident in charge of Grant's New York office. His position is now permanent in Chicago, where he is assistant to Mr. Grant. Stauffer Leaving Y&R For Keiiyon & Eckhardt JOSEPH R. STAUFFER, manager of Young & Rubicam's Hollywood office, has been appointed radio director of Kenyon & Eckhardt, New York, succeeding Tyler Davis, radio director for five years, who has resigned as of Aug. 1. Tom Lewis, radio manager of Young & Rubicam, has been transferred from New York headquarters to Hollywood, and in addition to his regular duties will take over management of the agency's Southern California offices effective July 1, replacing Stauffer. Armour Spots ARMOUR & Co., Chicago, on June 23 starts a 13-week series of 10 weekly one-minute transcribed announcements on WTOC, Savannah, Ga., and WRBL, Columbus, Ga. Sponsor will vary the products to be promoted. On May 26 a 52-week series of thrice-weekly participations on the Marsha Wheeler Consumer Foundation program for Treet, was started on WLW, Cincinnati. Agency is Lord & Thomas, Chicago. Easing of Pickup Is Urged by Arm^^ FCC Asked to Lift Barrier! To Quick Remote Setups TO FACILITATE the increasing traffic in programs originatinj from Army camps and operations the War Department has requeste<. the FCC to relax its rules in orde to simplify program pickups. Al though no action has been an nounced on the War Departmen request, it is expected the FCC wil grant it within a few days. Citing situations in which i often is difficult to secure telephon line facilities in and out of an Arm; camp for program pickups, th War Department has asked fo suspension of Section 3.408 (d) t* allow use of shortwave relays in stead of direct line pickups. Line Discussions Discussions have been in prog ress for several weeks between E M. Kirby, civilian advisor to thf radio section of the War Depart ment Bureau of Public Relations and New York and Washingtoi representatives of the AT&T long lines department in an effort t( alleviate the line situation. Another exception concerns Sec tion 4.21, which would be suspendec to allow remote high-frequencj pickups direct from Army aircraft tanks, etc., during maneuvers im mediately upon request by the Army. This would speed up opera tions, it was held, since participat ing stations would not have to take up time clearing the request foi permission for the special pickuji through the FCC. The FCC in mid-June gave th< War Department assurance that in stances where incidental persona messages are included in tran scribed programs originating ai Army camps will not be questioned The ruling, which came after the War Department requested the FCC's reaction, indicated that the rule barring point-to-point or per sonal communication is clearlj aimed at preventing use of a broad cast station as a common carrier The length of time necessarily elap sing between recording and broad casting removes any element oi competition with other common car riers, it was held, and the character of the program is clearly in th public interest. General Cigar Renews GENERAL CIGAR Co., New York (Van Dyck cigars), is renewing^ Answer Man, quarter-hour quiz program heard live twice weeklvj on WGN, Chicago, and KOIL| Omaha; and via transcription onl WHO, Des Moines; WDAF, Kan sas City; WKY, Oklahoma City;| KSTP, St. Paul; KTUL, Tulsa; KSD, St. Louis. Agency is Federal Adv. Agency, New York. WIBC, Indianapolis, on June 18 .ioined MBS at the same time it started fulltime operation on 1070 kc. 5,000 watts day and 1,000 night power WIBC replaces WIRE as the Mutual affiliate in Indianapolis, WIRE con tinning as an NBC-Red outlet. BROADCASTING • Broadcast Advertising