Broadcasting (July - Dec 1942)

and he felt this war work should be impeded at present by inaugurating an overall study of network licensing. Secondly, he said there are on the immediate horizon vast new developments which will profoundly affect the whole broadcasting picture — FM and television which are set for unlimited comm e r c i a 1 expansion immediately after the war." Asserting he had the greatest hopes that these industries would flourish during the immediate postwar period, he said he felt they would be important factors in the expansion of business which will serve to stave off any possible postwar depression in this industry. Finally, he declared he was very much opposed to any licensing of networks prior to the full-scale duty. No. 7 ot a Serlai Mftiiiiii Diversified farming in Nova Scotia STRENUOUS efforts fo promote a wider diversification of form products are making encouraging headway in Nova Scotia. Basis of this programme is to increase production of homegrown feeds so that the province's dairy and livestock industry, the basis of its agriculture, may continue to expand. More apples are grown here than els>iwhere in the British Empire. 1939 production was 2,039,605 barrels, of wliich 1,772,783 barrels of graded fruit were exported to England. Wartime embargoes have since prevented ?refh fruit exports; but the Government Marketing Board distributes the huge crop, half in processed form to CnGland and the other half in Canada. hlova Scotia is generously endowed with a climate which is without extremes of heat or cold. A fine bracing climate which develops human energy, both mental and physical. The countryside !<: r.iniilar to that of England and Scotland. Investigate! NOVA SCOTIA Radio Broadcasting Station CHNS HALIFAX, NOVA SCOTIA CANADA USA REP-Jos. Weed & Co. New York City "This is too serious a matter, and too important from the point of view of radio listeners all over the country, to be entered into in an offhand manner. Any action must be preceded by a thorough study from every angle." Alluding to newspaper ownership of stations, Mr. Fly pointed out that the Commission has instituted this study and will report on the problem "as promptly as possible". This investigation received its impetus from Congress, Mr. Fly asserted. He said a large number of Senators and Congressmen over the years had cited the need for the study and called attention to the fact that Senator White (R-Me.) had taken the Commission to task for not having formulated an opinion. Many Newspapers Seek FM Stations The question of joint ownership of newspapers and stations became acute last year when FM was opened up for commercial operation, Mr. Fly said, with 43 of the 99 applicants for FM on June 30, 1941, filed in behalf of newspaper interests. The investigation was undertaken for three purposes, Mr. Fly said: (1) To determine whether or not something needs to be done; (2) to determine whether, if something needs to be done, the Commission can and should do it under the present Act; and (3) to determine whether the Commission should instead make recommendations to Congress. To buttress this point, Mr. Fly placed in the record his opening statement at the newspaper hearings just a year ago. "Congressman Sanders has asked several previous witnesses why newspapers should be put in a prescribed class," Mr. Fly said. "He has asked why they should be treated differently from churches, schools and moving picture companies, et cetera. My answer is that if in the future there should arise a marked tendency for the ownership of radio stations to gravitate into the hands of churches, schools or motion picture companies that would be a matter which the Commission should properly look into." Dealing with clear channels and with that provision of the Sanders Bill which would require the Commission to study and report to Congress on them, Mr. Fly said "we very much wish we could embark upon such a study". Shortly before the war, he said, the Commission had planned a study of the clearchannel problem, but the shortage of engineers made it impossible to carry the project through. "Our engineers are too busy helping win the war at this time," he said. "You have already heard two sides of the clear-channel problem. Mr. Sholis (Victor Sholis, director of Clear Channel Broadcasting Service), representing 15 or 16 clear channel stations, gave you one side, and Mr. Spearman (Paul D. P. Spearman), representing Network Affiliates Inc., gave you another point of view. "Basically the clear-channel problem is an engineering problem, and a very interesting one indeed. If the Committee desires further testimony on this subject, I would suggest that you call our Chief Engineer, E. K. Jett, who is fully qualified to give you a clear and precise picture of the clear channel controversy from the public point of view." Chairman Placed Under Cross-Examination Mr. Fly's eighth and final appearance before the Committee came last Wednesday at a full morning session devoted entirely to cross-examination. As author of the bill, Rep. Sanders took over the bulk of the examination, which at times reached fever pitch. Alluding to Mr. Fly's testimony the preceding day regarding the Sun Oil Co. sponsorship of Lowell Thomas' broadcasts over a limited network of 25 stations, Mr. Sanders pointed out that the oil company was a private enterprise and of course looked at the profit motive. He jjsked the Chairman whether that motive would not be destroyed if there were the requirement that sponsors buy full national networks, irrespective of distribution of their product. Mr. Fly said he wanted to stress the point that stations throughout the country ought to have the op BOOST YOUR SALES ^ Advertise over Central America's ? most modern stations /90»000 AMemCANS OF THE CANAL ZONE B(/y AMERICAN Rep.: Melchor Guimon Co. Inc. 9 Rockefeller Ploio, New York City HOK.HP5K 640 Kc. «,00» K<. portunity of taking such an outstanding broadcast. He said he had not solved the problem or given it detailed consideration, but emphasized radio is a public service and that consideration should be paramount. Subsequently, when Rep. Wadsworth (R-N.Y.) took up questioning on the same line, Mr. Fly said he was simply projecting the view expressed by Mr. Smith in his Harper's article as one of the problems inherent in network licensing, and that he had in no way made up his mind. He agreed that Mr. Thomas would have some say, as well as the advertiser. Answering Rep. Sanders, Chairman Fly said Congress might decide after study that it would want to "override a private interest" in the interests of 130 million listeners. Queried by Rep. Sanders on newspaper ownership, Mr. Fly said that no decision yet had been made on the investigation and that "several months" would elapse before the Commission's final report. He insisted he had not made up his own mind and that he did not know what the facts would prove, one way or the other. The question of the Commission's jurisdiction likewise has not been decided and the Commission might take one of several courses. Says Public Interest Must Be Based On Facts The public interest concept must be applied on the newspaper-ownership problem, Mr. Fly asserted, declaring that public interest "doesn't define itself" but must be based on the facts. When Rep. Sanders asked whether "it is your view that the law does or does not give you authority," Mr. Fly rejoined that he did not think the Congressman wanted to "pull a judge off the bench and tell what his decision will be." He said he frankly did not know what conclusion he would reach and that he declined to answer the question simply because he hadn't completed his study. Mr. Fly said that assuming the FCC determines it has the power to invoke a newspaper-divorcement order, it then would consider whether it should proceed, or take one of several alternative courses. When Rep. Sanders asked about holding up newspaper applications, Mr. Fly said none had been granted and none denied since the proceedings started, claiming there was no point in disposing of applications prior to conclusion of the study. Agreeing with Mr. Sanders that a fundamental question was involved in the right of the Commission to say, arbitrarily, that one particular class should not be entitled to licenses, Mr. Fly said he would have no objection to the Congressman expressing himself on the subject. But he added that most of the utterances of members of Congress have been the other way. If Congress wants to change its Page 58 • July 6, 1942 BROADCASTING • Broadcast Advertising