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INDUSTRY REGISTERS STRONG PROTEST AGAINST BROADCAST TAX
Led by Jaraes L. Fly, Chairinan of the Federal Coinmuni cat ions Commission, the broadcasting industry solidly voiced its disapproval of the proposed tax on broadcasting time at the hearing on the Defense Revenue bill before the Senate Finance Committee last llonday morning. In the absence of Senator Walter George (D) of Georgia, Chairman, Senator Josiah Bailey (D) of North Carolina presided.
Among the other senators present were Champ Clark (D) of liissourl, Peter Gerry (D) of Rhode Island, Edwin C. Johnson (D) of Kansas, Arthur H, Vandenberg (R) of I.Iichigan, James J, Davis (R) of Pennsylvania, John A, Donaher (R) of Connecticut, and Robert A* Taft (R) of Ohio,
There were indications that some of the Senate committee members v;ere themselves far from being satisfied with the proposed tax on broadcasting time. At one stage of the proceedings the acting cliairnian. Senator Bailey, said, "I don’t like this tax but we have to do sore thing to raise the money,''’ Senator Vandenberg, a former IJichigan newspaper publisher, declared the tax was unfair, discrimina¬ tory and indefensible," There were those among the observers at the hearing who thought the proposed tax on time sales might be dropped in favor of sane sort of a franchise tax to raise enough revenue say 1)2,000,000 annually to pay for the operating expenses of the Federal Communications Commission, Hr, Fly had said it nav took about two million a year to run the Cormnission,
Chairman Fly seemed to favor a franchise tax but believed it should also be borne by the other branches of the communications industry telephone, telegra]±L and cable. He explained that only a portion of the Commission’s time was taken up by radio, Elr, Fly said it might be difficult to Imov/ how much to charge for a radio station franchise but that this might better be on a basis of coverage rather than povi'er. Senator Bailey remarked that the broadcasting industry "enjoying the franchise given to it to operate in the public domain" should be willing to pay well for it. Hr, Fly said he thought that night be true,
Ellsworth C. Alvord, tax expert, speaking in behalf of the National Association of Broadcasters, said he assumed the radio indus¬ try wouldn’t object to a noii-discri: linatory franchise tax. Hr, Alvord however suggested if the government is to embark on a policy of making industries pay for their own regulation that radio should not be the first industry picked out for the experiment, Hentloning railroads and some others, he said radio should really be the last.
Remarking that a franchise to broadcast in the public domain oust be a very valuable thing. Senator Bailey asked wliat the NBC franchise v/as probably worth.
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