Broadcasting (July - Dec 1941)

iWGNY 1000 WATTS \ NEWBURGH, N. Y. ar Group Urges |reedom of Radio jlvises Further Study Before Htnelusive FCC Action ^AFFIRMING its support for a ee radio," with reasonable Fedil regulation but no Government eration, the report of the stand■ committee on communications the American Bar Assn., to be esented at the Sept. 29-Oct. 3 3A convention in Indianapolis, iicated that further consideration ould be given to such proposims as the network-monopoly regations before the Government kes conclusive action. With public opinion strongly in vor of private ownership and magement of radio and commucations facilities and operators ing a "reasonably satisfactory" of presenting opposing points view on controversial subjects, ije bar committee warned that "as tween the special disadvantages Government ownership and the iecial disadvantages of private mership in the radio field, the tter are relatively slight, under Pper governing regulations, as pared with the serious dangers public ownership. Need of Balance On the necessity of maintaining balance in controversial discusDns, the committee report stated: 'The balance can be attained ly by intelligent and affirmative ecutive effort. Any agency which idertakes this task of maintaing a proper balance should be and ill be subject to searching critism. It is our view that whatever e difficulties of attaining this ance when programs are prifttely managed, the difficulties ould be immensely more serious programs were under Governent control, because in this couny Government control means arty control and is closely tied in ith politics. Admitting the need for regulaon, the committee observed that dio's technical and economic probms point to the conclusion that ttider private operation "a considrable extent of monopoly and a onsiderable degree of 'bigness' " lust be expected in the network Lowest National Rates in New Orleans QUARTER HOUR— DAYTIME $20.00 WNOE New Orleans' Greatesf Radio Value A Mutual Affiliate SPECIAL EVENTER ROBERT MORARD, who has been called for active duty in the Naval Reserve Sept. 15, was host at a very special event at WBBM, Chicago, when the feminine office staff turned out to salute his embarkation on a naval career. He will be attached to the public relations staff of the 9th Naval District in Chicago. units which are involved. Smaller competitors should be encouraged and monopoly discouraged as far as possible without upsetting the private proprietorship system, the report stated, although in deciding how far regulation should go it should be remembered that "if regulation proceeds to the point where the public becomes dissatisfied with the service it gets, the public, which now favors private ownership, might become inclined to favor public ownership — against its long-term interest." The committee urged reasonable chances of safety and profit for radio operators, although declaring there should be no vested interest in licenses. Unless Governmental regulation affords reasonable incentives to commercial success, private capital cannot be expected to risk the large amounts necessary to operate in a technical and rapidly developing field like radio, it was pointed out. Apart from the network-monopoly regulations, the report briefly reviewed, with recommendation or comment, the ASCAP controversy, the Defense Communications Board, legislative recommendations of the Federal Communications Bar Assn., the newspaper-ownership proceedings and several court actions. The committee, headed by Robert N. Miller, Washington tax attorney, also includes E. M. Borchard, John M. Davis, C. E. Kenworthey, W. N. Seymour. Canadian Flour Firms Drop CANADIAN FLOUR companies will not use networks to advertise flour this season, it being understood that all options for network time have been cancelled by Western Canada Flour Mills, Maple Leaf Mills and Robin Hood Flour Mills, major flour companies using networks last season. Various reasons and conjectures are given for this move, but the move is by mutual arrangement among the flour companies, according to one executive. The advertising of cereals and specialties by radio will continue on a somewhat smaller scale, though no programs are as yet ready for announcement. DRUG ADVERTISING IS 15% OF SALES DRUG and medicine manufacturers, heavy users of radio time, spend about 15% of their total sales on advertising, according to a Federal Trade Commission analysis of the medicine-drug manufacturing field revealed last Tuesday. The report was compiled as part of a wide-scale FTC project for collecting annual financial reports of industrial corporations operating in principal U. S. industries. The FTC report stated that consolidated sales for 23 of the "more important" concerns covered in the survey during 1939 aggregated $470,800,985, of which $416,501,001, or 88.7%, represented domestic sales, and $53,299,984, 11.3%, export and foreign sales. Based on figures supplied by 17 of the 23 corporations, advertising expense for these 17 firms amounted ■ to $32,510,528 in 1939, or about 17% of the 17 companies' aggregate expenses of $178,236,837, the report indicated. Projected on an industry-wide basis, it was shown that advertising expense averaged about 15% of the total expense figure for the industry. Other Expenses In addition to the advertising item in the breakdown of expenses, which amounted to 15.1% of total expenses, selling expenses represented 12.1%; administrative and general office expenses, 6.2%; taxes, 1.6%; social security and pension fund payments, .9%; research and development, 1.1%. Expenses were shown to account for 37% of total sales, with an eventual net profit from manufacturing and trading of 16.9 cents from every dollar of sales. The FTC also reported that nine of the principal flour milling corporations during 1939 spent for advertising about 3.4% of their total sales, which amounted to $315,099,410. The total of items listed as expenses represented 14.9% of total sales, with selling expenses amounting to 7.2% and administrative and general expenses, 3%. ILLINOISl Reach a big chunk of it I thru the 9 DECATUR station 250 W. 1340. Full Time. Sears & Ayer, Reps. How can we help you? NOT FOR SALE Our results-'^etting power is not for sale ... we only sell you the time (and throw in the results at no extra cost) . WGNY is doing a bang-up job. We have gone from 250 watts to 1000 watts . . . more power at no extra cost . . . you can buy now at the old rates. Take advantage of WGNY coverage . . . WGNY service .. . WGNY results. You'll be doing your client a super service. BUY WGNY WGNY REPRESENTED BY HEADLEY-REED CO. ^ SOY TODAY is the time to get up to the minute INFORMATION on this MAJOR MARKET Of the 50 New England Cities and Towns in the WLAW Primary Market ... 41 have no Daily Newspaper. WLAW 5000 WATTS • 680 KG. COLUMBIA AFFILIATE National Representatives THE KATZ AGENCY, Inc. BROADCASTING • Broadcast Advertising September 22, 1941 • Page 53