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" The Columbia Broadcasting System owes its present position, its present affluence, to the stations broad¬ casting Columbia programs.
" The Columbia Broadcasting System sells the time of individual stations to advertisers for rates up to $300 an hour, or more. In most cases, Columbia pays only $50 per hour to stations for the time sold. Moreover, the stations are required to give to Columbia from two to five hours per week of the time sold to advertisers.
"Obviously, such an arrangement is of finan¬ cial advantage only to the Columbia Broadcasting System. How¬ ever, most stations have submitted to such an arrangement in order to render what they considered the best possible service to their listeners.
"Nott, the Columbia Broadcasting System would cast them off in favor of a plan under which Columbia would own and control all the stations using its programs.
"Many of the stations now using Columbia programs would be forced to close down were they deprived of the Columbia programs.
" In Washington there are four stations com¬ peting for local advertising.
"To WRC, local advertising is incidental, because a large part of its time is taken up with National Broad casting Company chain programs.
11 To WMAL, local advertising is incidental, because a large part df the time of the station is taken up with Columbia chain programs,
" To WOL, local advertising is paramount.
This is also true of WJSV, of Mt. Vernon Hills, Va. , which be¬ cause of Washington coverage, also undertakes to broadcast local advertising.
" If WMAL is forced to depend almost entire¬ ly on local advertising for support, it will work an extreme hardship on WMAL , WOL and WJSV. "
" If WMAL is forced to compete with WOL and WJSV for local talent for all of its programs, it will work an extreme hardship on all three stations.
"The sa.me condition would be true of other sections of the country. Many stations now broadcasting Col¬ umbia programs are located in sections where it would be ex¬ tremely difficult for them to produce a full time local service. If they were forced to depend entirely on local advertising and local talent, many of them would go out of existence.
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