Broadcasting (Oct - Dec 1950)

1933 (Continued from page 82) of revenue. KMOX St. Louis got the fii'st repeal account, a local liquor distributor who used time in November to solicit orders then for delivery when it became legal, and Macy's used time on WOR Newark to describe the proper use of wines. The immediate volume of liquor advertising on the air was small and all local. CBS and some stations announced that they would accept advertising of wines but not of hard liquor; others decided that as long as liquor advertising was legal they would accept it; some stations flatly rejected any advertising of alcoholic beverages at all; the majority were still pondering the question as 1933 ended. P. I. Business Becomes Increasing Problem Stations were deluged, in the depression era, with "free" program offers, made even by such firms as Texas Co., which offered records of its Fire Chief network program, including commercials, for use on a no-charge no-pay basis, and McFadden Publications, Avhich had discontinued its Tnie Story Hour but, in response to public demand for its return, would supply lo-minute or half-hour transcriptions gratis to stations. Per inquiry business also was rampant in 1933, with stations urged to promote dubious merchandise on a straight commission basis, leading Broadcasting to comment: "If ever there was one subject on which the whole industry should present a united front it is this matter of contingent contracts." Noting that such offers persist largely because "some of the best agencies and some of the leading time brokers and representatives have found some of the best stations willing to give per inquiry accounts an occasional 'shot,' " the editorial declared that "here is a condition that the farsighted element in the NAB ought to be able to persuade the shortsighted element is wholly inimical to its ultimate interests." Because those words were not heeded in 1933, they are worth reprinting in 1950. The National Recovery Administration, inaugurated July 24 by President Roosevelt in a combined CBS-NBC hookup, looked to radio Mr. Dolph for continued support in reporting and promoting its progress. The industry responded wholeheartedly. William B. Dolph, formerly director of the Oklahoma territory for RCA Photophone, who had been placed in charge of radio publicity for NRA, reported early in August that virtually all stations and radio advertisers were devoting time to the recovery program, for which the networks had set aside regular weekly periods, and that more than 500 stations had signed pledges of cooperation with NRA. Broadcasting, like all American industry of national scope, was itself included in the NRA plan. Surveying the industry, NAB found that it employed 9,200 persons full time, with an annual payroll of nearly $17 million, excluding the networks. The code committee appointed by NAB President McCosker to work out terms of fair competition for broadcasting, estimated that another $1 million would be added to radio's payroll when their proposed code became effective. Major Issues Of Code Hearing Five major issues arose at the code hearing: Unions representing technical employes demanded a 40hour week at $1 an hour ($25 at stations with ten or fewer employes). Actors' Equity Assn. asked that minimum wages be set for actors, omitted from the NAB proposal as professionals chiefly employed by artists bureaus, advertisers and agencies. Proposals were made that the code's administrative set-up should be broadened beyond NAB to make it more representative of the entire industry. Small stations objected to the prohibition on per inquiry, commis sion or barter accounts. Recording companies asked that stations be prohibited from using phonograph records on the air without permission. The final draft of the broadcasting code, which went into effect Dec. 11, omitted radio performers pending a full study of their status. It retained the 48-hour week for technical employes during a 90day test period, with their salaries scaled from $20 to $40 depending on the size of the station. Other non-executive employes were put on a 40-hour week. The code prohibited rate-cutting, the acceptance of per inquiry business unless rates for it were included on the station's published rate card, songplugging, lotteries amd misleading announcements about the sponsorship of orchestras. To prevent conflict between NRA and the Radio Commission, the code specified that it should not violate the Commission's licensing authority. Shepard Named Head Of Code Group John Shepard 3d, Yankee Network president, was elected chairman of the code authority committee, with John Elmer, owner of WCBM Baltimore, as vice chairman. James W. Baldwin, former secretary of the Radio Commission who had served as industry advisor to NRA on drafting the code, was appointed director of the broadcasting code authority, a salaried post. Whenever they had a chance to drop their concern over business conditions or code provisions the broadcasters could always worry about ASCAP whose "elevator" contract had been forced on the industry the previous fall. Refusing to have any more dealings with Oswald F. Schuette, NAB copyright director, ASCAP's general manager, E. C. Mills, met April 4 with an NAB committee and told them that ASCAP would not consider any revision in contract terms unless the change would produce more revenue for ASCAP. Mr. Baker 1933 was a year that saw radio assume an even more integral role in the national political scene. For the first time microphones were installsd in the rostrum of the House to carry actual proceedings. LEFT PHOTO — The words of Speaker Rainey are picked up as he presides. CENTER PHOTO — Sen. King is interviewed by Harry Butcher, CBS (third from I) in the Senate anteroom. Robert Trout, CBS presidential announcer, stands next to Sen. King, while seated at left is Earl Merryman, WJSV Washington operator. RIGHT PHOTO— P resident-Elect Roosevelt before a carbon mike prepares to address the nation in November 1933. The following day, NAB began organizing Radio Program Foundation as an industry-owned source of music with Mr. Schuette as operating head. In June the Foundation obtained the American rights to the catalog of G. Ricordi & Co., Italian publisher, making more than 123,000 compositions available to American broadcasters who were to repay NAB for its investment in this catalog by paying from $2.50 to $25 a month for its use. NAB also retained Newton D. Baker, prominent attorney who had served as Secretary of War under President Wilson, as special copyright c o u n sel. After conferring with the Attorney General, who had been studying ASCAP's operation to see if it violated the federal anti-monopoly laws, Mr. Baker on Sept. 1 filed suit against ASCAP in the Federal District Court in the name of WIP Philadelphia. Action asked for cancellation of WIP's contract with ASCAP as part of a scheme forced on the station "to restrain interstate commerce" and further demanded ASCAP's dissolution as an illegal combination in violation of the anti-trust laws. ASCAP Increases Fees to 4% Sept. 1 also put into effect an increase in ASCAP fees from 3% to 4%, the Society reporting some 550 stations as having accepted the licenses by that time. NAB asked stations to send monthly sums amounting to 10% of their ASCAP payments to NAB to help defray the litigation costs. Mr. Schuette in November resigned as copyright director of NAB, but continued as head of Radio Program Foundation. President Hoover in February reappointed Judge E. 0. Sykes to the Radio Commission for a sixyear term. The new administration named James E. Hanley, Omaha attorney, to serve for the balance of the Saltzman term, expiring in Feb. 1936, and appointed Herbert L. Pettey, campaign radio director of the Democratic National Committee, as Commission secretary, succeeding Mr. Baldwin, who had resigned March 1. The Commission