Broadcasting (Jan - Mar 1950)

LUCKMAN QUITS Resigns on Policy Dissent WITH startling suddenness last Wednesday, Charles Luckman announced his resignation of the $300,000 a year presidency of Lever , Bros. Co., a more than $7 million advertiser in radio and television. Coming in the middle of one of the periodic visits to the U. S. of the European heads of the parent companies, Unilever Ltd. and Unilever N. V., Mr. Luckman's statement gave as his reason for , resigning "our inability to resolve • a basic disagreement as to the future policy of the American company." In a simultaneous statement. Sir Geoffrey Hey worth, chairman of Lever Bros, and Unilever Ltd., and Paul Rykens, Dutch chairman of Lever Bros, and Unilever N.V., said : "The boards of the parent companies accept with regret the resignation of Mr. Charles Luckman from the presidency of Lever Bros. Co., arising from a disagreement as to the future policy of the American company that we were unable to resolve. "We wish to express appreciation for the quality of the services rendered to the company by Mr. Luckman during his four years as president, and most recently of his undertaking and execution of the consolidation and moving of the company's interests in New York. "Last summer the directors gave full approval to the policies and plans formulated by Mr. Luckman for this move, and we are pleased that these have now been brought to a successful conclusion. New Building "The construction of the new Lever House Building at 53 St. and Park Ave., the final design of which has been completed, will start in the early spring. "No arrangements have been made for the filling of Mr. Luckman's position. For an interim period the executive responsibility will be placed in the hands of three directors of Unilever, Arthur Hartog, J. L. Heyworth and F. D. Morrell, who are being loaned to Lever Bros. Co. "No changes are contemplated in the existing officers of the company." The full statement by Mr. Luckman after announcing his resignation: "My relationship with Lever Bros, and the directors of Unilever has been a source of pleasure and satisfaction to me. "Our inability to resolve a basic disagreement as to the future policy of the American company in no way lessens my regret in ending our association. "I express to the officers and employes of Lever Bros, and its subsidiary companies, my deep appreciation for their splendid work and loyal devotion which has contributed much to the company's success." The suddenness of thi break is Mr. LUCKMAN indicated by the fact that little more than two weeks ago, Mr. Luckman called a news conference to outline his extensive future plans in behalf of the company. These included projects that would, in their normal course, have occupied Mr. Luckman for several years. At that time he told Broadcasting of his contemplated plans to widen the company's use of television without intruding on the established budget of radio. Mr. Luckman's resignation comes at the successful completion of one of the largest industrial moves of recent years, the shift of Lever executive headquarters from Cambridge to New York, coupled with the integration of the company's affiliates — The Pepsodent Division, The Harriet Hubbard Ayer Inc. and The John F. Jelke Co. — in centralized headquarters. Volume Doubled During Mr. Luckman's six year tenure at Lever Bros., the company almost doubled the volume of its soap and food business. Under his guidance. Lux toilet soap was brought to first place in the industry. Rinso became one of the largest selling soaps in the world. Moreover, during that time, Mr. Luckman guided all six of the Lever Bros, network radio programs into the 15 top-rated shows on the air, marking the first time in the history of radio that any company has been able to accomplish such uniformly high ratings for its programs. Mr. Luckman always has been a strong advocate of radio, consistently allocating half of the total advertising budget of his products to that medium, thus making radio his single largest sales channel. A native of Kansas City, Mo., FCC Actions FINAL DECISION adopted by FCC last week to grant WSAP Portsmouth, Va., switch from 2.50 w on 1490 kc to 5 kw on 1350 kc, directional, and four stations granted transfers of ownership. WKVM Arecibo, P. R., given power boost on 1070 kc from 10 kw to 25 kw. Bid filed for approval to sale of part ownership in KRIS Corpus Christi, Tex., for $288,000. Details of these and other FCC actions may be found in FCC Roundup on page 84 and Actions of the FCC starting on page 78. the 40-year old Mr. Luckman has been hailed frequently in the past as the "boy wonder" of American industry. Graduating magna cum laude from the Architectural School of the U. of Illinois in 1931, Mr. Luckman, finding building construction to be in a depressing state of inactivity, took what he considered "a temporary job" as a salesman in the Chicago office of Colgate-Palmolive-Peet Co. From a canvasser in a small sales territory in Chicago, he rose to supervisor of all of Colgate's Chicago (Continued on page 51) LIQUOR ADS Opposition to Longer Bill Mounts OPPOSITION to the proposed Langer liquor bill, which would outlaw all alcoholic beverage advertising in interstate commerce, mounted on Capitol Hill last week. There were indications that the Senate Interstate & Foreign Commerce Committee was mulling major amendments before reporting out the controversial measure. The bill (S 1847) is given little chance for committee approval in its present form. Authorities hinted that the committee would settle for less restrictive legislation aimed chiefly at curbing certain advertising practices. Meanwhile, Sen. Ed C. Johnson (D-Col.), chairman of the committee, has given interested parties until tomorrow (Tuesday) to file additional statements following hearings Jan. 12-14 [Broadcasting, Jan. 16]. The committee may consider it at Wednesday's executive meeting. NAB Opposition Last week in a statement to Chairman Johnson, NAB stated its opposition to the legislation proposed by Sen. William Langer (R-N. D.). The letter, dated Jan. 17, was signed by NAB General Counsel Don Petty. NAB stressed its action should not be construed as "condoning or promoting" liquor advertising "detrimental to the public interest or not in good taste or not in accordance with the Standards of Practice of NAB. . . ." Furthermore, radio and television stations in areas where the sale of liquor is unlawful comply with the existing local laws like any other responsible community elements, it added, citing other regulatory laws. Partial text of NAB's statement: The National Assn. of Broadcasters wishes to go on record ... as opposing the pending^ legislation, but such opposition should not be construed as promoting' or condoning the advertising of hard liquors or, for that matter, of any other spirituous product, the advertising of which would be detrimental to the public interest or not in good taste or not in accordance with the "Standards of Practice" of the NAB. . . . Where the sale of alcoholic beverages has been declared unlawful by a state or political subdivision thereof, ample power exists to regulate or prohibit the advertising of such products without recourse to the national Congress. Radio and television stations located in such areas, like other responsible elements of the business community, comply with the existing local laws. . . . And, as the FCC itself stated, in a letter to you dated Aug. 11, 1949, ". . . adherence to the laws of a state in which a station is located, especially laws expressive of the public policy of the state or locality on subjects relative to health, safety, and morals, is an important aspect of operation in the public interest." We are not aware of any prosecution of a radio station by local authority for violation of any such law. The history of legislative concern . . . clearly demonstrates that it is basically a moral problem which by national policy is vested in the states and their political subdivisons. The 21st Amendment ended the attempt of the national government to exercise the function of protecting the citizens of the several states from alcoholic beverages. The right of a state to protect its own citizens — if they so choose — is unquestioned. The national government should not, through the devious means of a bill affecting advertising, usurp that function and, in effect, partially reinstate the 18th Amendment. We would emphasize that there is already regulation in the broadcasting industry of advertising of alcoholic beverages. Industry self-regulation as set forth in the NAB's "Standards of Practice" and station and network codes have placed reasonable and appropriate limitations. ... In addition, the broadcast advertising of such beverages is subject to the provisions of the Federal Alcohol Administration Act. . . . Further, all broadcast stations submit regularly their advertising continuity to the Federal Trade Commission which maintains a careful check. Some advocates of the Langer bill agree with industry authorities that the measure would outlaw all such radio advertising, since all radio is interstate. Local as well (Continued on page 85) Page 24 • January 23, 1950 BROADCASTING • Telecasting