Broadcasting (Jan - June 1941)

J 3 seemed to pay dividends whether anyone in radio made money or not. "That is a phase of this problem," Senator Bone said, "that has not been gone into enough. I am a little more than interested." Mr. Lee said his station would like to have an exclusive contract with NBC to prevent other stations from getting NBC-Blue programs in his area. In two months time, he said, NBC had placed more commercial programs on his station than MBS had in four years. Mr. Lee told the committee that after four years association with MBS he thought MBS was neither "Mutual no ra network." He said the rules were a "wrecking" operation so far as small stations were concerned." Seymour Krieger, of the FCC legal department, asked by Senator Bone, estimated line costs of station and network operations at about 8 million dollars. Senator Bone said he thought this was quite high, commenting he had wondered why stations had not protested line costs that were "very, very heavy" and had not resorted more to transcriptions. Hasbrook Tells of Vermont Affiliation C. P. Hasbrook, owner of WCAX, CBS affiliate in Burlington, Vt., cited the unique terrain of Vermont which makes it a "blind spot" for outside radio service. The new rules do not threaten WCAX from a competitive angle, he explained, emphasizing the need of network programs if it was to succeed financially. Asked by Senator Bone about line charges from Albany, paid by CBS, Mr. Hasbrook estimated the charge at $7,500 to $10,000 a year. Senator Bone commented that apparently a telephone line was a better investment than a radio station. Speaking of time options, Mr. Hasbrook said so far as WCAX was concerned, time options to the network had never worked to the disadvantages of the local station. The FCC rules, he said, "would take the bridge out from under me when I am half-way across the stream." He commented that if WCAX had to pay for lines in cash rather than in time, the station would be forced out of business. Barroll Outlines WFBR Switch Hope H. Barroll Jr., executive vice-president and general manager of WFBR, Baltimore, NBC-Red affiliate since 1931 and scheduled to switch to MBS Oct. 1, charged that NBC monopolized, through its options, the bulk of the most desirable station time. Mr. Barroll read into the record a letter from William S. Hedges, NBC vice-president in charge of station relations, written early in 1940, which he said constituted a "veiled threat" to shift WFBR from the profitable Red because the station sought to refuse a P & G commercial show on the network in AP BEGINS NEW TELESCRIPT SERVICE PRESS ASSN., the Associated Press subsidiary which handles news for radio, has announced the inauguration of "Telescripts," a new treatment of special radio news features involving complete scripts cued for music or appropriate sound effects. Six original AP features already have been adapted to the new technique and others will be added. Those six, currently sent to PA subscribers daily, are The Sportsman, Listen Ladies, Farm Fair, Hollywood and Broadway, Flashes of Life, and Between the Lines. According to Tom O'Neil, PA's radio news editor, the "Telescripts" are so named "because they really are complete scripts transmitted to stations over the regular news teletype. They are a radical departure from the sketchy, item-by-item features which stations in the past have received . . . and appear to be the answer to a good many program problems." He added that a special department has been created at PA with suitable talent to handle the new service. PA also announced that 25 additional stations have signed for AP service in the last three weeks, while 12 stations previously receiving the regular AP news report have changed to the special radio wire in the same period. New stations are WJAX WHEB WSUN WGGA WALB WISH WGRC KFH WSMB WTCN WDGY KHMO KGHL WFMJ KOCY WERE KCMC KPOW KPLT KEVR WIND KBIX KBUR WLNH KGKY. favor of a long-established Maryland National Guard recruiting program. He declared his belief that NBC's offer of an economic guarantee for a WFBR Blue affiliation, which came after negotiations were concluded switching WBAL to the Red, was made to prevent affiliation of WFBR with MBS. He recited events events leading up to the shift in affiliation from the Red to MBS. Religious and Women's Groups Appear The hearings were adjourned subject to the call of the chair after stateinents were placed in the record by Frank C. Goodman, executive secretary, Federal Council of Churches of Christ in America; Edward J. Heffron, executive secretary, National Council of Catholic Men, and Mrs. Helen Wiley, chairman of the legislative committee. General Federation of Women's Clubs. Mr. Goodman said that in 24 years he does not recall any development that has concerned our Protestant leaders quite as much as the FCC regulations. He said his group was opposed to any regulations that may cause confusion in present-day radio. Replying to Senator Bone he said his statement was in blanket opposition to the regulations but that it was particularly concerned with the possibility of a change of own MBS Contract {Continued from page 10) cast rights upon one-week notice. The law department commented on this latter proviso. "This provision does raise a question whether other stations will find it feasible to carry MBS' rejected programs". The contract term is one year, with automatic renewal clause which is effective unless either pax-ty gives notice 30 days prior to the normal expiration date of the contract. The affiliate is not bound to take any particular MBS program if time in that certain spot has been sold for a period, but the affiliate is prevented from optioning time to other networks, the law department held. The affiliated station also is given the responsibility of rejecting network programs if they are reasonably believed unsatisfactory or unsuitable and of rejecting programs it has committed itself to carry if it believes them contrary to public interest or if it becomes desirable to substitute programs of outstanding national and local importance, the law department indicated. Law Dept. Comment The contract gives MBS authority to terminate firm commitments for commercial programs if the affiliation contract is terminated during the period of commitment. On this point the law department commented that it does not violate the rules, but it should be watched because it may give the network a degree of dominance. In transmitting its report to the Commission, the legal department noted that the proposed contract was scheduled for presentation to the MBS stockholders' meetingJune 17, commenting that FCC approval would eliminate uncertainty and assist affiliates in considering the contract form if the FCC indicates the form as offered was in substantial compliance with the rules. It was stated also that if MBS can succeed in arranging for affiliations upon these terms, it would be a "strong practical demonstration" of the feasibility of network operation under the regulations. ership in the Blue network. He said his group was concerned because they have facilities from that network greater than from all other networks combined. Mr. Heffron said "we do not feel we have any sufficient way of predicting the overall effect of the regulations but we do feel the FCC should determine such effect." He added his group believes the rules should not destroy or impair public service programs as now constituted. Mrs. Wiley submitted a Federation resolution asking further study of the radio problems by a Senate committee and also endorsed the White Resolution. FIFTY GRAND & C B S KFDM THE PAYOFF STATION LOCATED IN THE VERY HEART OF TEXAS' BOOMING GULF COAST INDUSTRIAL AREA KFDM BEAUMONT NBC BLUE FULL TIME 560 KC 1000 WATTS Represented By HOWARD H. WILSON COMPANY The INS staff in Washington, scene of important and vital news developments, comprises veteran and experienced reporters. INTERNATIONAL NEWS SERVICE WRNL ALWAYS RINGS THE BELL IN RICHMOND, VIRGINIA NBC BLUE • 1000 WATTS BROADCASTING • Broadcast Advertising June 23, 1941 • Page 51