Broadcasting (Apr - June 1950)

Radio Outpulls Papers (Continued from page 26) Radio 61%; newspaper 7%; both 16%; other 16%. Combined totals for the three tests follow: % Traffic— Radio 43.6%; newspaper 14.6%; both 9.1% other 32.7%. % Traffic Purchasing — Radio 68.1%; newspaper 70.8%; both 93.3%; other 46.3%; total 63.6%. From these figures, ARBI found that using the total traffic (105 customers) who purchased articles as the constant, the purchasing percentages would ~ be : Radio 46.7%; newspaper 16.2%; both 13.3%; other 23.8%. Another series of tests was conducted in five Safeway Stores in Butte, all featuring the same test items during a five-day period. Summary of results follows: % Traffic— Radio 23.5%; newspaper 14.5%; both 4.1%; other 57.9%. % Traffic Purchasing — Radio 99.3%; newspaper 98.9%; both 100%; other 99.1%; total 99.1%. % Dollar Value of Purchases — Radio 25.3% ; newspaper 16.6% ; both 5.8%; other 52.3%. Ten surveys were conducted in department, apparel, furniture and appliance stores in Missoula, Helena, Bozeman, Great Falls and Spokane. Summary of combined totals for the surveys follows: % Traffic— Radio 35.2%; newspaper 23.2%; both 9.7%; other 31.9%. % Traffic Purchasing Test Merchandise— Radio 64% ; newspaper 65.9%; both 69.8%; other 40.8%; total 57.6%. ARBI pointed out that using the total traffic purchasing (568) as the constant, the purchasing percentages by media would be: Radio 39.1%; newspaper 26.6%; both 11.8%; other 22.5%. ARBI adds that this method of tabulating (purchases of test items only) ignores the complete pulling power of advertising since it does not take into account other purchases such advertising may have stimulated. The ARBI booklet summarizes r X^^a^ off, o^i^^f^ l-MINUTE SPOTS ON 50,000 WATTS WH0E NEW ORLEANS ONLY *«00fffl) ~m^mm^ T I «■? EACH VRATE / Available HHgMNow: Spoti between High-Rated National Showj!.. Spots on or between longestablished local Shows News Programs ! Sports! Mutual Co-ops! (1060 ON YOUR DIAL) 25 YEARS OF SUCCESSFUL SERVICE IO ADVERTISERS! WNOEd NATIONAL REPRESENTATIVES RA TEL ':i 420 LEXINGTON AVE*., N.Y.C. two surveys, one in Portland one in Butte, which it described as "not acceptable." In a test at Roberts Brothers, Portland, radio's pull was double that of newspapers but the results were not deemed acceptable because investment in radio and newspaper advertising was not equal ($249.40 in newspapers and $85 on KXL). Results were not given for a test at Howard's in Butte, because of insufficient response ascribed to severe winter weather. Concluding, the ARBI booklet claims that for the same number of advertising dollars the XL stations, in 92.9% of the accepted tests, delivered for the advertisers participating more traffic, which meant more sales. Strikers at Work NEW YORK Newspaper Guild last week purchased a Monday Saturday quarter hour series on WLIB New York for a unique news program produced by striking news staff members of the New York World Telegram 6 Sun. The show, aired 6:45 7 p.m., began Friday. Guild members, whose strike forced the Wo?~ld Telegram & Sun to suspend publication, are continuing to cover their usual news beats and make reports on the guild-sponsored program, which is called SevenStar-Final. TAX BILL ACTION House Moves To Beat Adjournment MOVING with unprecedented speed to beat Congressional adjournment tentatively set for early August, House Administration leaders last week whipped the omnibus tax bill into shape and sped it to the House floor where action is expected this week. The 1950 revenue bill TS SATTIVI . revenue bin encompasses a host of varied proposals, among them one to tax profitmaking enterprises — including radio stations — of educational and charitable organizations [Broadcasting, June 19]. Administration leaders hope to present the package, formally introduced as a bill last Thursday by Rep. Robert L. Doughton (D-N. C), for debate Tuesday and a possible vote Wednesday. The bill was offered by Rep. Doughton following extensive study and hearings by the House Ways & Means Committee, of which he is chairman. The giant bill, which comprises cuts in certain excises and increases in certain corporate taxes, would retain the present 10% manufacturers' tax on radio receiving sets in effect since 1941. No TV Set Tax No tax would be levied, however, on television sets at the manufacturers' point as advocated early this year by Treasury Secretary John Snyder. The committee held hearings on the Administration's proposal to impose a 10% levy on TV sets, but rejected it following militant opposition from Radio & Television Mfrs. Assn. and a number of individual firms. The committee voted, however, to exempt radio receivers and parts used in manufacture of receivers which are sold to the U. S. government for military purposes. Law currently calls for a 10% levy. Other actions taken by the committee as reported to the House floor call for reduction on musical instruments from 10% to 5%; on domestic telegraph, cable or radio dispatches, 25% to 10%, and no change on the latter's international use from the present 10%. Religious organizations would be exempt from the proposed tax to be imposed on "unrelated active business income" of educational, charitable, labor, agricultural, re search and other institutions. Stations which conceivably may be exempt from the tax include such religious-operated outlets as WWL New Orleans, WEW St. Louis, KGA Spokane and KWBU Corpus Christi. Lay-owned stations which presumably would fall in the taxable category include WGST Atlanta and WHCU Ithaca. The committee also voted a 10% tax on the dividends of cooperative organizations who, in some instances control radio stations. Additionally, the group voted to rescind on capital gains an agreement calling for tax reduction from 25% to 15%. SHIFTING OWNERS FCC Okays 3 Don Lee Changes WHAT appeared to be a record of some sort was set by FCC last week when it approved, at one sitting, three different transfers of the same radio property. The property was the Don Lee Broadcasting System's owned stations, and the transfers were all "involuntary." The first application, filed June 18, 1948, was for transfer to Thomas S. Lee, heir to the estate of his father, Donald M. Lee; the second, filed Dec. 13, 1948, was for transfer from Thomas S. Lee to Lewis Allen Weiss and Willet H. Brown as co-guardians for him; the third, filed last Feb. 27, was for transfer from the coguardians to Ben H. Brown, special administrator of the estate of Thomas S. Lee, deceased. The actions clear the way for applications for sale of the radio properties by the estate, when current negotiations to that end have been completed [Broadcasting, June 19]. Also see story this issue. Racing Data (Continued from page 2J+) involving request by Arthur B. McBride for transfer of WMIE Miami, Fla., from Lincoln Operating Co. to Sun Coast Broadcasting Co., of which he is co-ownei [Broadcasting, June 12]. Chairman Coy told him the case is "in hearing" and that the record still is open for depositions from Cleveland, Ohio. Mr. McBride formerly held interest in Continental Press, which he helped organize and which now is owned by his son, Edward J. McBride. Before the hearing got underway, Chairman Kefauver explained that originally his committee had asked Attorney General J. Howardl McGrath and FBI Director J. Ed-B gar Hoover to open the public hearings last week but that both felt they could contribute more to the committee at a later date. They are slated to appear this week, prob ably Tuesday or Wednesday. The Attorney General was asked to furnish data on "crime syndi cates," on which his office has been assimilating replies. Mr. McGrath replied he had drawn no conclusions as yet. Mr. Coy asked that his statement before the Senate Commerce Committee, which held extensive hearings on the Justice bill (S 3358) to ban transmission of interstate gambling information [Broadcasting, April 24, 17, 10], be inserted in the record for the Crime Committee. Compromise Bill The Senate Commerce bill, repoi'ted to the Senate where it now awaits consideration, is a compromise of the Justice bill and FCC' plan. It would ban transmission of gambling data (bets, odds, wagers, scratches, etc.) before races but permit radio-TV coverage during and after the event. Also sitting in during the hearing were Rudolph Halley, chief investigator, and member of the law firm of Fulton, Walter and Halley, and George S. Robinson, newlyappointed general counsel, for the committee. Hearings also were held Friday and continued to this week. Mr. Robinson formerly was special assistant to the Attorney General and was chief counsel in the Federal Grand Jury probe of the Annenberg wire and race services in Chicago. DEADLINE for scripts in One World radio prize contest extended from June 15 to July 15. Winners to receive all-expense-paid trips to One World meeting in August at San Eemo, Italy. Why buy 2 or more... do 1 big sales job on "RADIO BALTIMORE" Bko IVBAL Page 54 • June 26, 1950 BROADCASTING • Telecasting