Broadcasting (Jan - Dec 1935)

'rotest Against Rate Changes u Code To Be Heard By NRA Hearing Is Set for Jan. 11 on Objection by Kansas City Star; Six Others Also Protest a h ELEVENTH -HOUR protest % ora the Kansas City Star, operjj ^ing WDAF, jigainst proposals |r drastic revision of the broadsting industry code approved by e Code Authority, has caused illiam P. Farnsworth, NRA depiy administrator, to schedule an Iformal hearing in Washington »n. 11 at which the issue will be ired. The protest was primarily gainst the plan for combination swspaper and radio rates, but |so included a similar protest $ ijjainst "run-of -schedule" rates. jiTn addition to the WDAF pro;pst — the only one which demanded 3I hearing, NRA has received a half pzen other protests involving one r the other of the proposed amendments. WFAA, Dallas, operated jr the Dallas News, registered its ojection to the combination rate jfr o p o s a 1, while KGIR, Butte ; <ROW, Oakland; WFAS, White 'lains, N. Y.; WJAG, Norfolk, ffeb., and WJJD, Chicago, opposed be banning of "run-of-schedule" iates. The hearing, however, will e confined to the WDAF protest. Advance Meeting T WAS CONSIDERED likely hat the Code Authority will schedjle another meeting in Washington n advance of the hearing — probibly about Jan. 10. James W. 3aldwin, executive officer of the 3ode Authority, indicated the probibility of such a meeting, to conider not only the protests against he proposed amendments, but ither important matters relating o rate practices, which have developed since the last meeting in November, at which the proposed amendments were approved. The WDAF protest was filed by Earl McCollum, vice president of the Kansas City Star Co. "The proposed amendments," his letter stated, "purport to grant to the WBNX .//marks ¥ THE / SPOT BROADCASTING CENTER An agency testing results for a shoe company on seven New York stations reported as follows: Average cost per $9.00 sale on WBNX— 55c Average cost on each of other six stations — 75c Proving therefore that WBNX, with less wattage, provides greater results per dollar spent. Results — Not Wattage — Make Sales Send for Full Details Today WBNX • New York Code Authority the right and power to prohibit, fix, prescribe and regulate discounts which a radio station may give when the National Industrial Recovery Act does not confer such authority upon the President or the Administrator selected by him the right, power or authority to prescribe, fix, regulate or prohibit such discounts." The contention is made that the proposed amendments would be in the nature of price-fixing, and therefore contrary to the law. Moreover, it is held that the purpose of the combination rate discount, which is used by a number of the newspaper stations and ranges up to 25 per cent, is to induce newspaper advertisers to use radio in addition to their printed space. Mr. McCollum also held that the effort is to stimulate business and employment and therefore work along the lines of the basic objectives of the administration. Other Industries AS TO RUN-OF-SCHEDULE, Mr. McCollum asserted these discounts are in accordance with sound established business practices. "Practically all newspapers and magazines have a 'run-ofpaper' rate that is lower than the rate for advertisements ordered to appear on certain specified pages or in certain positions with relation to reading matter. Telegraph companies charge more per word for a fast wire than for a 'night letter,' 'day letter' or other message on which they are allowed latitude as to time of sending. * * * The practice of charging a customer less when he is willing to waive elements of time, position and service is well nigh universal. To deny radio stations that privilege would be to run counter to sound economics, business usage and custom. It would diminish revenue, employment and pay roll and at the same time result in higher operating costs. "Radio as a medium of entertainment cannot prosper under a program of petty restrictions. Radio must have free opportunity to add new artists, new orchestras and new soloists to the talent that is already on the air. On the business side radio must have the advantage of new advertisers and new revenue if it is to maintain and increase pay rolls and if its full value as a sales force is to be utilized in stimulating general business recovery and general reemployment. The effect of the amendments if adopted and if enforced would be curtailment of trade to the extent that merchandise could not be distributed at the most economical cost to the consuming public and therefore not in the greatest volume possible. It would restrain advertising and merchan WHO Chicago Eye Opener THE EARLIEST Chicago commercial is "The Eye Opener," combining music, time and temperature reports with such eye-opening questions as "What nationality was St. Patrick?" It is broadcast each week day from 6 to 7 a. m. over WAAF and is sponsored by Household Finance Corp., Chicago, which incidentally distributed a quarter million folders announcing the program. which the Code Authority acted at its November meeting, proposing elimination of "special rates" for time, including those allowed for broadcasts of more than an hour, is still in the hands of the Code Authority and has not yet been submitted to NRA. A referendum vote of the industry was conducted by Mr. Baldwin, with the vote about three to one for the change. Disposition of this matter would be left to the Code Authority at the meeting planned within the next fortnight. dising in this area and thereby reduce employment and pay rolls and retard recovery." Some question has arisen on the Code Authority as to whether WDAF is eligible to protest the contemplated amendments, since the station is operating under the provisions of the newspaper code as a subsidiary of the newspaper, rather than under the radio code. This question may be raised at the NRA hearing. The third broad rate question on THE ORIGINAL microphone used by the late Alfred W. McCann, Sr., in his appearances on the McCann Pure Food Hour over WOR, Newark, was presented Dec. 24 to his son, Alfred W. McCann, Jr., by A. J. McCosker, president of WOR. FEATURES On Transcriptions Available to Stations and Agencies Samples on Request STANDARD RADIO ADVERTISING CO. HOLLYWOOD, CALIF. Results In Southeast Texas And In Southwest Louisiana 5000 SACi ZOOO SACKS ALFAL FEEDS IN LIGHTNING BORDER BAGS' j^JJ^mj^njm^jTJJjJJl^Hjri^jJ September 18, 1934. llr. J. 11. Gilliam, President, Sabine Broadcasting Co., Ins., Beaumont, Texas. Deaf llr. Gilliam: We signed our first advertising oontract with you lovember 28, 1932, at $60.00 per montju Later we increased It to about $225.00 per month and on June 20th, of this year, we increased our budget, for radio advertising, to approximately $400.00 per month. Regardless of the fact that only about Z0% of your potential listener audience are potential buyers of our product, the results have far exceeded our expectations. We take this opportunity of expressing our appreclatioi to the personnel of your sales promotion department for the wholehearted assistance and co-operation given in the promotion of Increasing our distribution through the wholesalers and retailers. We are oonvinoed that the personal oontact, through your sales promotion department, with the wholesaler and retailer. Is largely responsible for the results obtained. The retailers in this territory seem to appreciate these personal contacts, which makes them more consoious of the product advertised over your station. Yours truly, J0SEY-MILLER 'COilTAUY, XSC . Treas. 4 Gen. Mgr. WHC:D -.Del Moines CLEARED-CHANNEL — 50/000 WATTS —FULL-TIME The pulling power of a radio station is contingent upon aggressive management and vision, the same as in any other business. K F D M BEAUMONT, TEXAS Representatives : RADIO PUBLICITY, Inc., Chicago, 111. WALTER BIDDICK CO., Los Angeles January 1, 1935 • BROADCASTING Page 33