Broadcasting (Jan - June 1942)

MINIATURE CONVENTION at the Statler. Front row (1 to r): Steve Rintoul, WSRR, Stamford, Conn.; Glenn Z. Snyder, WLS, Chicago; Leonard Nasman, WFMJ, Youngstown. Rear row (1 to r) : Hal Hayden, Press Association, New York; Joe Eggleston, WMC, Memphis; Walter Rothschild, WTAD, Quincy, 111.; Ted Enns, Iowa Broadcasting Co.; J. C. Liner Sr., KMLB, Monroe, La.; Henry Slavick, WMC; Guy Herbert, AllCanada Radio Facilities; C. E. L.xnglois, New York. point on several occasions in industry affairs. Mr. Miller, brought into the NAB in 1938 primarily to beat the copyright problem, observed that the industry had gone a longway since those warring days. He won an ovation when Sydney M. Kaye, vice-president and general counsel of BMI, alluded to the job he had done. A new music performance problem, however, was thrown into the fray — "payola", the bribing of performers and orchestra leaders to plug numbers on sustaining programs and thereby popularize them and boost music and record sales. It was estimated that the "payola kitty" runs a half-million dollars. Reputable publishers have been forced into the practice to offset the gains made by unscrupulous ones, it was said. A resolution condemning the "pernicious practices whereby bribery and other corrupt and illegal means are used to foster the performance" of such music was offered by Tom Sharpe, KFSD, San Diego, and was to be voted on at Wednesday's session. It proposed that broadcasters exercise supervision of programs and do all in their power to prevent "payola" and that the NAB direct that all possible efforts be made to terminate the practice and take appro1 priate steps. Haverlin Tells of I Industry Response Carl Haverlin, station relations director of BMI, first speaker on t^e copyright forum, revealed that 728 of the industry's 888 commercial stations already have signed 8-year BMI licenses, along with 17 networks, both national and regional. This is against the high figure of 782 BMI station members under contracts which terminated 1 last March. Savings accruing to the industry . as a result of the BMI victory over ASCAP will be most substantial, even with stations taking both I BMI and ASCAP licenses, he said. 1 In 1940, the industry paid ASCAP an estimated $5,200,000 on performing rights. If the old basis of a 5% royalty on receipts had prevailed during 1941, based on business that year, he said some $6,600,000 would have been paid ASCAP. Under the ASCAP proposals, which resulted in the showdown, the industry would have paid approximately $9,000,000. Mr. Haverlin estimated that the I maximum which can be paid to ASCAP under present contract requirements is $3,600,000 this year. This would mean an estimated savings in excess of $40,000,000 over the 8-year contract period, as against what ASCAP first asked. Based on contracts already signed, ASCAP stands to take in $2,500,000 from radio, with BMI receiving about $1,500,000. This aggregate will be 30% less than the industry paid for ASCAP alone in 1940 and 43% less than the estimated 1941 tribute. Tompkins Advises Protection of Interests M. E. Tompkins, vice-president and general manager of BMI, painted a bright picture for BMI, but urged stations to protect their interests in their performing rights society. Because of the "magnificent support" of the industry, he said that BMI had been able to succeed in its task. It has more than 300 affiliated publishers who have combined catalogues well in excess of a half-million titles. After reciting many BMI hit tunes, Mr. Tompkins brought out that two-thirds of the music now performed is non-ASCAP, being BMI, public domain or the works of other individual publishers. BMI has many new tunes coming up, particularly motion picture production music, including Walt Disney's production Bamhi, to be released in New York several weeks hence. The preview, expenses for which were paid by Mr. Disney, including the hiring of a theatre, was witnessed by the convention Wednesday night. Mr. Kaye said there are two "healthy symbols" at the meeting — the great number of empty chairs, signifying that broadcasters no longer regard copyright as a number one problem ; and, the presence of ASCAP General Manager John G. Paine on the rostrum as an invited guest and speaker and not an interloper. Mr. Kaye referred to the picture on page 86 of the Convention Issue of Broadcasting, displaying the NAB's founding fathers in 1923, who met to "break the music monopoly of ASCAP". That was the beginning of the NAB, he pointed out, and music was its headache. Mr. Kaye referred to the "great success story" of BMI told by his colleagues. While BMI could say it has "justified its existence", he declared, nevertheless the organization instead of becoming smug, lax and complacent, is following through. He observed it was well "we haven't got a minor league war" now, with the nation in all out conflict. The only purpose of music today is to "help build the national morale", he commented. ^Payola' Described As Serious Problem The "payola" development was described by Mr. Kaye as a "festering sore", which has recently broken out. Respectable elements in the music industry don't like "payola" but they must get their music played to offset competition, he said, charging that the practice is being used to divert sustaining programs into "cheap and secret advertising programs" in violation of law. Stations and networks must supervise programs to see that nothing influences the selection of music except merit and quality. Mr. Kaye recalled that when BMI was formed two years ago, President Miller went out with only a corporate name and "a gleam in his eye" and got 250 members on one trip. That was the nucleus of the organization, he said. He expressed his appreciation also to the BMI Board for its indefatigable work and to NBC, CBS and the BLUE for "quietly digging dovm in their pockets" to advance six months in dues to tide BMI over its license renewal period. BMI today has reputation and standing with publishers and writers and has good relationships with all, he said. BMI needs the help of broadcasters, he asserted, not to favor BMI tunes, but to guard against discrimination. With that sort of help, BMI will be built as a "permanent monument of strength" and a "permanent service to broadcasters", which in turn will make it a "permanent service to the public". Introducing ASCAP General Manager Paine, Mr. Miller said that ASCAP and the industry have had a bitter battle, but that it was fought "fair and clean". It marked the first appearance of an ASCAP executive before an NAB convention in several years. Paine Appreciative, Recalls St. Louis Meeting Mr. Paine said the fight with radio was "seared deeply into my memory". He expressed a deep sense of gratitude and appreciation for the opportunity to appear, recalling that last year at St. Louis he did not feel so welcome. Mr. Paine reported ASCAP has 635 commercial contracts from broadcasters, in addition to 32 non-commercial contracts. Of the aggregate, 102 are per-program contracts as against only 8 by BMI. In many instances, stations have taken blanket sustainings and commercials, and in others they have taken per-program commercials and blanket sustainings or other combinations, he said. Many broadcasters do not know what the current contracts mean, he declared. The 48 chain contracts may be increased to a thousand in a year by virtue of the consent decree definition of chain service, which is two or more stations tied together, he said. The clearance at the source requirement makes it necessary to issue a chain license for that service, he added. Because of this requirement, ASCAP has decentralized its radio activities and has established offices in key areas throughout the country. Stations can call these offices for contract rates, which will result in substantial savings in long-distance telephone calls, he WFBM RATES FIRST! WFBM continues to stand out ifke a Listener Survcys beacon in the ricli central Indiana market, UTld SoleS ReSultS holding an influential °n the Tell the Same purse-strings of almost 400,000 radio families. Advertisers are quick to realize StOVy the tremendous advantage that WFBM r -r ■ i exerts over this important area, proving (Results of Typical with survey after survey that listeners pre Surveys Available on fer WFBM by a wide margin! Request) WFBM. Ittl HOOSIER STATION. .INDIANAPOLIS REPRESENTED BY THE KATZ AGENCY BROADCASTING • Broadcast Advertising May 18, 1942 • Page 59