Broadcasting Telecasting (Apr-Jun 1958)

scribed deintermixture as no more than •'nibbling" at the allocations problem and said it had little value even in the short range. Whether the Craven suggestions have the endorsement, actual or implied, of the Office of Defense Mobilization, which functions directly under the White House, is not known. It was stated, however, that on March 24 the ODM suggested that it and the FCC could jointly pursue long-range planning on future use of the spectrum by this country, and jointly provide guidance and substance both at the technical and policy levels. Comr. Craven is the FCC's liaison with ODM and is chairman of the all-important engineering policy committee planning for the International Telecommu nication Conference in Geneva next year. ODM proposed that it and the FCC appoint an executive from each group to give policy guidance to the technical allocations groups of the FCC and the Interdepartment Radio Advisory Committee, which sits for the government. These steps would place the allocations planning at the highest level. Presumably it also would augur against adoption by Congress of the identical resolutions introduced last year by Sen. Charles Potter (R-Mich.) and Rep. William Bray (R-Ind.) for the appointment of a three-man commission to investigate the utilization of frequencies allocated to the federal government [Broadcasting, June 24, 1957]. Sen. Potter and Rep. Bray were disturbed over possible demands by the military for a larger slice of the radio spectrum, particularly the lower vhf band— the very channels 2-6 that would be involved if the Craven memorandum were implemented. Comr. Craven, himself a former naval communications officer, does not believe that the military is now using more spectrum space than it requires for peacetime operations. He also recognizes that broadcasters will be disposed to regard his longrange plan as impractical. But he has advised his FCC colleagues he feels that, if properly coordinated and planned, the plan is possible of achievement as a logical solution of many of the allocation problems which have cramped tv development and are urgently in need of FCC action. approval. Talent: announcers, actors, singers, musicians, sound men, music arranger's fees, etc.; sound effects charges, studio rental, music rights, etc. "Wiring and engineering charges for broadcasting, or other sepcial services or facilities. [In] television, (a) all elements required to televise and broadcast television programs including commercials (except the writing of commercials), either live or by film, including announcers, performers, directors, technicians, scripts, rights, music, studio arrangements and equipment rental, scenery, properties, filming from kinescope for further distribution, etc., [and] (b) cable and radio relay charges when not included in television broadcast charges." Turning from agency to advertiser arrangements, the ANA report quotes a "suggested guide" prepared by General Electric Co. for its some 50 decentralized operating departments. This specifies that the agency, on authorization by the client, will — among other things — "make all necessary arrangements for the preparation, rehearsal, production and broadcasting of radio and television programs in accordance with authorized plans and station schedules; the agency service to include procurement of and contracting in its name for radio and television time and facilities and talent at the most advantageous rates, supervision of all elements of program planning and production and of publicity and program merchandising, check and verify performance in accordance with contracts, and make payments to media in time to earn any available cash discounts." The GE guide calls for payment of the 15% media commission, or its equivalent, to the agency. For certain additional materials and services to be secured by the agency from other suppliers, the form provides for paying the agency its net cost (before cash discount) plus 15%. These include special writing talent; radio, talent, scripts, announcers, musical arrangements and productions and electrical transcriptions; television materials and services purchased or rented (such as studio rentals), use of facilities including kinescope, talent, announcers, set-up and take-down work, rental of properties, artwork and painting, costume rental, makeup, sets, carpentry and construction and all other television production items . . ." This guide also says that, on co-op material prepared by the agency, the advertiser will pay to the agency 15% of the share of local space or time charges assumed by the advertiser. A sample contract supplied by Reynolds Metals Co. incorporates the 15% media Broadcasting commission to the agency. The agency also would get cost plus 15% — unless a different amount is agreed upon in writing — on certain services and materials purchased elsewhere, including: "radio and television talent and programs or package shows, radio, television and other scripts or continuities, musical arrangements, electrical transcriptions, television film commercials and program and commercial production." Another contract, submitted by an unidentified advertiser, specified that travel expenses of the agency must be absorbed by the agency — except that "traveling expenses of any of your personnel engaged with the production of radio or television programs are to be billed to us at the net cost only." Another advertiser's contract, also unidentified, made no such exception. ANA cited one contract to show the detail in which a method of payment for radio-tv time and programming was spelled out. Also from an unidentified advertiser, it said in part: "All ideas, suggestions and plans for advertising and/or merchandising, for radio and/or television programs, or characterizations for present or proposed products, packages or improvements in existing products or packages, as well as the embodiment of any of these m sketches, layouts, copy, scripts, programs and designs which may be submitted to us by you, shall except when otherwise specifically designated at the time of such submission, be understood to be available to us for our free use without payment of any royalty, license fee or other payment and without condition. "Upon the adoption, approval or use by us of any of the above, all right, title and interest therein shall be our exclusive property, and thereafter we shall have the full and free right to use same in any way deemed by us to be desirable, indirectly through agents or otherwise and without regard to the continuance of this contract. and without payment of any compensation to you except as herein specifically provided. "In your performance hereunder you will from time to time be engaged in work in connection with radio and television programs, characters, personalities and trade names of ours It is understood that neither you nor any of your employes or any third parties may by virtue of any such work with any of our properties acquire any right, title or interest therein. "You agree to assure the protection desired by us in the last two paragraphs by securing from each of your employes engaged m any work on our behalf a written agreement by the terms of which the employe surrenders any and all right, title or interest in any of the items referred to in either of these paragraphs. "We shall pay you as full payment for all services and expenditures hereunder, (a) for radio and television station time, printed word space and all other media, the cost to agency for authorized commitments made in our behalf less any and all space, quantity and frequency discounts earned by us and any cash discount CONTINUED NEW LOOK AT GARDNER It was Media Day for some 400 sales representatives at Gardner Adv. in St. Louis May 22. The occasion: Open house to unveil the agency's modernized and expanded quarters in the city's downtown area. The extensive remodeling program provides about 40% more floor space and added facilities for new client services, notably in the broadcast media department. Major revisions incorporated there reflect the fact that 60% of the agency's $22 million billings in 1958 will be in radio-tv. Under the renovation program, several departments previously spread over half a dozen floors at 915 Olive St. have been integrated, largely on two floors. Three different viewing areas have been set up for viewing commercials and filmed shows. A workshop and two-way projection room serves two of them. Pictured: The reception room of Gardner's new quarters and three of the agency's top officials (1 to r): President Charles E. Claggett, Board Chairman Elmer G. Marshutz and Secretary-Treasurer Herbert S. Gardner Jr. The receptionist is Shirley Stafford. June 2, 1958 Page 29