Broadcasting (Oct - Dec 1950)

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1941 HIGH spot for radio, as for every other industry in 1941, was the Japanese attack on Pearl Harbor and the immediate United States declaration of war. The months of planning that proceeded the Dec. 7 attack proved their value. There was excitement, but no panic, as radio carried first news of the attack. Within an hour the Defense Communications Board, with FCC Chairman James L. Fly as its head, took over control of all radio. Stations and networks quickly went on a roundthe-clock basis relaying news and instructions to civilians but within the week had worked out their news coverage program to give news first priority and yet continue the balance of their program schedules. The President turned to radio to reassure the people. His address asking for a declaration of war commanded the largest audience that had ever listened to one broadcast. Price Named To Head Censorship of News Byron Price, executive news editor of the Associated Press, was named director of the Office of Censorship for radio and press which was entrusted with setting up censorship of news on a voluntary basis. Mr. Price named J. Harold Eyan, vice president and general manager of the Fort Industry Co., to head the Radio Department as assistant director. A war-time code to guide broadcasters was being drafted and as the year ended radio was functioning smoothly with new stature as the most important news medium. It censored its own news and occupied a key place in the civil defense set-up as the first source of instructions in the case of attack or any similar emergency. Fears that broadcasting would be seriously curtailed in case of war were quickly allayed after the first few days. While some stations in critical areas bi'oadcast on a restricted basis for a time, most of these restrictions were soon lifted. Only branch of radio seriously affected was the 50,000 amateur operators who were ruled off" the air for the duration. The final crisis in December found radio with its house in order. Principal item on the news budget for many months had been war developments in Europe. Bombing of Broadcasting House in London during January when seven BBC staffers were killed was an example. On Jan. 13 the Defense Communications Board, set up in 1940, held a meeting — at which Neville Miller, NAB president, was elected chairman of the Domestic Broadcasting Committee and A. D. Ring, assistant chief engineer of the FCC, was made secretary. At the same time Walter Evans, vice president of Wes tingh ous e Radio Stations, was made chairman of the International Broadcasting Committee with P. F. Siling, assistant chief of the FCC International Di Mr. Evans vision, as secretary. By April the radio branch of the Army was nearing completion under the direction of Edward M. Kirby, director of public relations at NAB, on loan to the government. Mr. Kirby was reporting direct to Major General Robert C. Richardson Jr. On June 2 the Piesident declared a state of national emergency but pointed out that this would have little immediate efi^ect on radio. On June 21 the networks made the first report of the German invasion of Russia. In the final week of December the Radio Coordinating Committee, representing five industry trade groups, was in session with Mr. Price and Mr. Fly. Representatives of the various groups included: Neville Miller, NAB president; George B. Storer, interim president of National Independent Broadcasters ; John Yankee Network, FM Broadcasters Inc.; Victor Sholis, director of the Mr. Sholis Shephard 3d, president of Clear Channel Broadcasting Service, and Eugene Pulliam, WIRE Indianapolis, president of Network Affiliates Inc. Although the declaration of war and the attending upheaval in all peacetime plans was by far the outstanding event of 1941 there were many other developments of unusual importance to broadcasters. Armed with Broadcast Music Inc. and its 250,000 musical numbers, broadcasters started the year by allowing its contracts with ASCAP to expire. While there were many complaints from the music monopoly that some of its tunes were being heard over the air without permission, radio as a whole stood firm. Audience ratings showed little change in musical program standings even though ASCAP numbers were avoided. Broadcasters took this as an indication that the public was supporting their fight. BMI and ASCAP Sign Consent Decrees Under threat of a government anti-trust suit BMI on Jan. 27 signed a consent decree to go into effect when ASCAP signed a similar document. The decree was put on file with the Federal District Court in Milwaukee. On Feb. 5 the Dept. of Justice filed the promised suit against ASCAP for violation of the Sherman Anti-Trust law naming Gene Buck, president, 25 members of the board and 19 publishing house members. Trial was set for March 5. ASCAP council immediately met with government attorneys in an effort to work out a consent decree similar to that already signed by BMI. On Feb. 26 it was signed PRESIDENT ROOSEVELT as he addressed the nation on Dec. 9, 1941, one day following the United States declaration of war. and both BMI and ASCAP decrees became effective within 90 days from that date. Agreement with the government left the only matters to be adjusted with networks and stations the price of service and ASCAP then began soliciting new agreements with the stations and with networks. For violation of criminal statutes under the Sherman Law, ASCAP was fined $35,250. On April 1 BMI began its second year of operation with 97% of stations which had belonged the first year already signed for the new period. Montana Broadcasters, ASCAP Reach Agreement ASCAP's first agreement came April 9 when it signed with the Montana broadcasters, headed by Ed Craney of the Z-Bar Network. Under the agreement ASCAP dropped infringement suits totalling $250,000 against Montana stations. On May 12 Mutual accepted the ASCAP formula and guaranteed to pay 3% of gross for four years then 3V2% of gross until 1950. ASCAP music returned to the network on May 13. Meantime NBC and CBS were holding daily meetings with ASCAP. Terms and counter-terms were exchanged and on Aug. 1 an agreement was reached whereby the networks would pay 2%% of net time sales for use of their music. Immediately the networks began a campaign to get affiliates to agree. MBS was given advantage of the lower rate negotiated by the other networks. On Sept. 9 the NAB committee approved the proposed ASCAP contract and labeled it "eminently fair." Leader of the opposition was John J. Gillin Jr., WOW Omaha. On Oct. 30 final agreement was signed between the networks and ASCAP and the music war was over with tunes controlled by the group returning to all networks for the first time in nearly a year. Meanwhile James C. Petrillo, head of AFM, was making moves toward tightening up his contracts. At the beginning of the year stations were notified that AFM contracts, heretofore for 12 months, were being renewed for six. When questioned by Broadcasting as to reasons, the music czar declared it was just an "experiment." The year marked a milestone in the history of the magazine. With the Jan. 13 issue Broadcasting became a weekly after 10 years of operation as a semi-monthly. Size of the issues remained practically (Continued on page 126) Mr. Gillin Page 124 • October 16, 1950 BROADCASTING • Telecasting