Broadcasting (July - Dec 1941)

iROAIDCASTD drxxL Broadcast Advertisingr rol. 21, No. 11 WASHINGTON, D. C, SEPTEMBER 15, 1941 .00 A YEAR— 15c A COPY Ketwork ASCAP Contract Faces Battle •Sabotage' of BMI Brings Objection From Gillin TENTATIVE acceptance by NBC md CBS of blanket contracts for return of ASCAP music to their networks is still a far cry from restoring peace and harmony in radio-music ranks it became apparent as reactions set in immediately following announcement by the NAB last Tuesday that its executive committee regarded the lontracts as "highly satisfactory" and "eminently fair". While both networks are shooting for a Sept. 28 date to resume performance of ASCAP music for the first time since Jan. 1, there developed allegations of "shot-gun" tactics, and of "sabotaging" of Broadcast Music Inc. as part of the transactions. Approval by the NAB executive committee of the form of contract originally negotiated by NBC, and subscribed to by CBS, after five important concessions had been procured, did not ome in a harmonious atmosphere. Gillin's Charges John J. Gillin Jr., general manlager of WOW, Omaha, NBC outlet, a member of the executive comimittee, strongly dissented from the committee action, and called the legotiation of a blanket contract a 'repetition of the network's action f 1935". He branded it as "tantanount to sabotaging BMI" and acting contrary to the best interjsts of the broadcasting industry" [see text of statement on this page]. NAB President Neville Miller, ho has led the copyright fight and was instrumental in the formation Df BMI in 1939 following ASCAP's iDriginal untenable demands, announced adoption of the resolution approving the form of contracts by bhe executive committee. He pointed lout that operations of BMI would ||not be affected, and that signature |0f the contracts by NBC and CBS ijis contingent upon the agreement f affiliated stations to bear their roportion of the cost of the license see text of Miller statement on his page]. Though Mr. Miller made no proouncement beyond the formal noice of executive committee action. he has favored further conversations in the hope of modifying certain of the contract provisions and procuring a better deal. A majority of the executive committee, however, evidently weary of the succession of meetings on the form of contract and apparently convinced it constituted the best deal possible, voted down such a move, which had been advanced by Mr. Gillin. Dollars vs. Principle While it was freely admitted that the proposed contracts (five of them, covering every performance combination) constituted a far better basis than any hitherto advanced, it nevertheless was argued by Mr. Gillin that it sacrificed principle for immediate dollars. NBC, along with ASCAP, was the moving force, with CBS making an eleventh hour entry during the last fortnight wlaen it became ap parent that NBC was approaching what it regarded as an acceptable transaction. The statement at the tag-end of the NAB announcement that the contracts are acceptable to CBS as well as to NBC, was the first admision that negotiations had been resumed between CBS and ASCAP, much less concluded. It seemed in New York circles the final guarantee that before long ASCAP tunes would again be heard on all networks. But before that can happen the networks must get the ratification of their affiliate stations in the form of promises to rebate to the networks 2%% on all the payments made to them for broadcasting commercial network programs. NBC, which on Aug. 1 notified its affiliates that it had negotiated a contract with ASCAP and asked their approval of its terms, has still not received responses from an appreciable number of them. CBS has not yet approached its affiliates. NIB May Consider Officials of both NBC and CBS expressed confidence this station approval would be forthcoming without undue difficulty or delay, with Sept. £8 mentioned as the probable date for the resumption of ASCAP music on network programs. However, a number of broadcasters have already gone on record as opposing the proposed terms of settlement. This opposition is expected to make its stand at the NIB meeting in Chicago next week and it is probable that a sizable number of broadcasters whose stations are affiliated with NBC and CBS will withhold action on the contracts until this convention is over [see story on page 10]. To avoid any future governmental complications, the contracts will be submitted to U. S. Assistant Attorney General Thurman Arnold, Text of NAB Committee Statement and Gillin Dissent . . . APPROVAL of the formulas for return of ASCAP music to NBC and CBS by the executive committee of the NAB at a meeting in New York Sept. 9, came only after a protracted debate, with John J. Gillin Jr., general manager of WOW, Omaha, voting against the majority action. Upon his return to Omaha last Thursday, Mr. Gillin issued a dissenting statement, briefing the views at the session. The executive committee, through NAB President Neville Miller, issued a statement of approval promptly following the meeting. Voting in favor of the resolution approving the contracts and recommending consideration by the industry were committee members John Elmer, WCBM, Baltimore; Paul W. Morency, WTIC, Hartford; James D. Shouse, WLW, Cincinnati, and Don S. Elias, WWNC, Asheville. William H. West Jr., WTMV, E. St. Louis, was absent, and Mr. Gillin voted 'no'. Others present at the meeting, in addition to President Miller, included Edward Klauber, CBS executive vice-president; M. R. Runyon, CBS vice-president; Julius Brauner, CBS attorney; Niles Trammell, NBC president; Mark Woods and F. M. Russell, NBC vice-presidents; Robert P. Myers, NBC attorney; Sydney M. Kaye, vice-president and general counsel of BMI; John Shepard 3d, Yankee Network president, and John A. Kennedy, WCHS, Charleston. Committee Statement Following is the full text of the NAB executive committee statement: Following a meeting of the executive committee of the NAB, held today (Sept. 9) at the Roosevelt Hotel in New York, Neville Miller, president of the association, announced that the committee had adopted the following resolution : "The executive committee of the NAB has had ample opportunity to study, through a series of meetings, the terms and conditions of the proposed ASCAP contracts. It is the consensus of the executive committee that these contracts in their present form are highly satisfactory and ofi'er broadcasters who desire to use ASCAP music an eminently fair and equitable basis for such use: provision having been made for the various operating problems which confront the industry. "The NAB, therefore, recommends favorable consideration of that form of contract which best suits the station's individual operating needs." "The contract in its present form," said Mr. Miller, "achieves principles for which broadcasters have been contending for many years. It enables them to take their choice of a blanket contract for all ASCAP music, or to purchase this music for the programs on which it is played. Moreover, the contract reduces substantially the fees which our industry has hitherto been compelled to pay." It was pointed out by Mr. Miller that the contract with ASCAP would not affect the operations of BMI, to which both NBC and CBS had pledged their continued support on a long term basis. "The proposed contracts with ASCAP in their final form will be mailed to all stations within the next few days, and will be subject to the scrutiny and approval of the individual broadcaster", Mr. Miller said. He further stated that the terms and conditions of the proposed contracts were acceptable, he had been informed, to NBC and to CBS. Signature by the networks, it is understood, is contingent upon {Continued on page 52) ROADCASTING • Broadcast Advertising September 15, 1941 • Page 7