Broadcasting (Jan - Mar 1950)

TALKS U, S.-Mexico Meet Seen PRE-NARBA POSSIBILITY of U. S.-Mexican talks on NARBA before the full NARBA conference resumes in the spring was disclosed last week as government and industry representatives met to prepare for bilateral sessions with Cuba starting Feb. 1 in Havana. The advisability of undertaking negotiations with Mexico, which did not participate in the threemonth Montreal phase of the NARBA sessions, is being canvassed at the present time. State Dept. officials reported. Even if no bilateral sessions are I held with Mexico in advance, it I seemed likely that efforts would be made to bring her into the full conference when it resumes in the U. S. on or after April 1. A firm approach to the Havana negotiations was urged by many of the 40 industry representatives attending the day-long preparatory conference, held Tuesday with Comr. Hyde presiding. NAB President Justin Miller told the government representatives that the U. S. should "stick by our guns and refuse to concede" to Cuban channel demands even if the result is "no treaty" for the present. He commended the FCC and State Dept. for their rejection of the Cuban proposals at Montreal. The principle of "national sovereignty" is as applicable to the U. S. as to the Cubans who preach it so much, he said. On the basis of relative needs, he continued, the U. S. position is "impregnable." One consulting engineer said the cost of yielding to Cuba's request would be $100,000 to $120,000 for a single broadcaster of his acquaintance. E. B. Craney of the "XL" stations of the Northwest cited a suggestion of Chairman Ed C. Johnson (D-Col.), of the Senate Interstate and Foreign Commerce Committee, that efforts be made to interest Cuba and other Caribbean nations in using FM instead of AM [Broadcasting, Jan. 16]. In the ensuing discussion it was brought out by T. A. M. Craven, former FCC member and now a consulting engineer, and by Andrew G. Haley, Washington attorney, that similar efforts had been made in the past without success. Adair Recommendation George P. Adair, consulting engineer and former FCC chief engineer, recommended that the U. S. approach the negotiations by "getting our own house in order." He called upon FCC to decide the longpending clear-channel case so that "we can see where we're going." Comr. Hyde said the government delegation would be smaller at Havana than at Montreal and would rely heavily upon the counsel To Ask FCC for Harry E. Houghton, president of Muzak, and Paul A. Porter, of the Washington law firm of Arnold, Fortas & Porter, Muzak's counsel, announced that the company was about to take its petition before the FCC. Specifically, Muzak's petition envisions the use of supersonic signals and of multiplexing. Details of Request The FCC will be requested to amend rules to authorize use of supersonic emissions, to permit Muzak and others to: (1) enter into special contracts with FM stations on an affiliation basis to provide the service; (2) to modify present requirements which prohibit the installation of additional equipment in the transmitters of FM stations, and (3) to amend other regulations relating to station identification, the identification of musical records, and the announcements of sponsored programs. The petition for special multiplexing, Muzak said, was for the purpose of permitting it to send a number of programs simultaneously to take care of all types of its business. Currently Muzak clients of industry representatives attending the sessions. Organizations indicating plans to send representatives included NBC, CBS, NAB, Clear Channel Broadcasting Service, Westinghouse Radio Stations, the Washington law firm of Segal, Smith & Hennessey, and the engineering firms of Jansky & Bailey, and Craven, Lohnes & Culver. The Florida Assn. of Broadcasters also may send a representative, it was reported. Vandivere Named Edgar F. Vandivere of FCC's Technical Information Division was named by Comr. Hyde to head a volunteer committee to work on specific planning details for the Havana sessions. Among those attending the preparatory conference were: Walter Radius, director of the State Dept.'s Office of Transport and Com'munications Policy, and John Cross and D. R. MacQuivey of the State Dept. Telecommunications Policy staff; James Barr, head of FCC's AM Engineering Division; Underwood Graham and Edgar S. Vandivere, also of the FCC Engineering Bureau, and Joseph M. Kittner, assistant to FCC general counsel; Edward Cooper, communications advisor to Senate Interstate and foreign Commerce committee; Joseph H. Ream, CBS executive vice president, and William B. Lodge, vice president in charge of general engineerfng; Gustav B. Margraf, NBC vice president and general attorney, and William Duttera, staff allocations engineer; Andrew G. Haley, Washington attorney for ABC, and John Preston, ABC chief allocations engineer; NAB President Justin Miller and Engineering Director Neal McNaughten; Ward Quaal, director of Clear Channel Broadcasting Service, and Louis G. Caldwell. Percy H. Russell Jr., and R. Russell Eagan, CCBS counsel; E. B. Craney of the northwest "XL" stations; Arthur B. Church of KMBC Kansas City; D. A. Myer, technical-field director of Westinghouse Radio Stations; Leonard Marks, Washington attorney for Daytime Petitioners Assn. Use of FM Stations largely fall into four categories, each of which is given individual music. The categories: hotels and restaurants, stores and shops, business offices and banks, and industrial plants. At the present time, said a Muzak spokesman, some FM stations already are utilizing the supersonic signal in connection with broadcasts of background music and are renting the necessary receiving equipment to commercial establishments. Muzak counsel considers such operations a violation of FCC rules and policies. Pending action by FCC on the Muzak petition, the company will request the FCC to advise all FM broadcasters that such service via a supersonic signal and the sale of such services to multiple addresses, either by the station itself or through agency relationships, is contrary to FCC regulations and policy until they are amended as requested. Muzak said a large number of its franchise holders are also licensees of FM stations and that a number of such licensees will join with Muzak in the request for the rulemaking hearing. January 23, 1950 • Page 23 TRANSIT MUSIC Muzak Refuses Renewal With WWDC-FM TRANSIT FM found itself squarely in the middle of a new controversy last week following an announcement by Muzak Corp. that it would not renew its contract with WWDC-FM Washington to provide records for Capital Transit Co.'s music-equipped vehicles. A published report by Paul Por ter, of the Washington law firm of Arnold, Fortas & Porter, that Muzak would pull out of the field because of "the uproar over transit radio" drew immediate fire from Ben Strouse, vice president and general manager of Capital Broadeasting Co., WWDC-AM-FM licensee. Mr. Strouse charged that Mr. Porter had distorted and withheld "basic information" on Muzak's withdrawal from the Washington transit radio field; expressed doubt the decision was based on any "public uproar"; and asserted that Muzak "is now sweating" because of FM radio's threat to its "beautiful little monopoly" in the functional music field. The decision, he added, probably was dictated for "competitive reasons." To Seek FM Use These developments followed closely on the heels of an announcement in New York by Harry E. Houghton, president of Muzak Corp., that the firm shortly will petition FCC for a hearing looking toward permission to use FM stations for its programming (see separate story). "The fact of the matter is that FM stations throughout the nation — including WWDC-FM— are now going into the functional music business on a competitive music basis," Mr. Strouse declared. WWDC-FM already is making arrangements to supplement its present music library from sourcesother than Muzak, he added. The station's contract with Muzak expires in May. Mr. Porter told Broadcasting that Muzak is "not primarily concerned with transit radio and does not regard it as a prime issue," and said a number of other reasons were involved including, presum BROADCASTING • Telecasting ably, the company's proposal to use FM frequencies. He indicated, however, that Muzak does not intend "as a general practice" to supply its library facilities where transit radio is meeting "opposition," though this should not be construed to mean that transit music is not performing a "public service." Of the 20 FM stations now operating the service, only three have (Continued on page 53) muK MUZAK CORP. this week is expected to file a petition with FCC for a rule-making proceeding to permit it to use FM stations to carry its programming. If the piped music organization is successful in its FCC action, it was said, Muzak will abandon, wherever possible, use of the telephone lines now used in its operations, and contract with local FM stations for transmitting its programmings. The result would be, according to a Muzak spokesman, a sizable revenue increase for FM stations. Since Muzak now has 75 franchisers operating in over 200 cities in the U. S., Canada, Mexico, Puerto Rico and the Hawaiian Islands, the number of FM stations which might benefit is considerable. At the same time, Muzak believes it will benefit because FM transmission will be cheaper than by telephone lines. Muzak clients also will benefit, the company feels, because the savings will be passed on to its customers via cheaper rates. And Muzak ' itself hopes to profit further from the cheaper rates by attracting miore low-budget customers to its services.